TNG Limited

Company Overview

TNG is an Australian resources company progressing development of its 100% owned Mount Peake Project in the Northern Territory, Australia. Mount Peake is an advanced world scale Vanadium, Titanium, Iron project with existing infrastructure in place and Mining Licence, Native Title and Environmental approvals already granted for the mine site.

Discovered by TNG in early 2008, the Mount Peake deposit is close to surface and flat lying with a JORC Compliant Resource of 160 million tonnes, making it one of the largest undeveloped vanadium-titanium-iron projects globally.

TNG has also developed a processing operation to produce three high-value, high-purity products from this resource – vanadium pentoxide, titanium dioxide pigment and iron oxide – through the application of its 100% owned TIVAN® Process.

In September 2019, the Company released an optimised delivery strategy and revised mine schedule, which is now based on an initial production rate of 2 million tonnes per annum ore throughput, corresponding to 100,000 tonnes per annum of titanium dioxide pigment.

On the basis of the refined delivery strategy, the forecast pre-production Capital Expenditure (CAPEX) for Mount Peake is now A$824 million. The revised financial model shows a Project’s pre-tax internal rate of return (IRR) of approximately 33% and a Net Present Value (NPV), at an 8% discount rate, of approximately A$2.8 billion, with a payback period of 2.8 years.

The project is strategically located close to existing infrastructure, including the Alice Springs-Darwin Railway, Stuart Highway and the new LPG pipeline, 20km to its east.

Vanadium is a “miracle metal” which is used to impart strength, hardness and water resistance to steel, in the manufacture of titanium alloys used in jet engines, airframes and other high-end specialty materials, and in the chemical industry, notably in batteries, plastic, glass and pigments.

Steel accounts for over 85% of vanadium demand, with consumption predicted to increase at similar rates to the growth of the global steel industry – driven by the rapid expansion of the Chinese economy and growing per capita use and intensity of use of steel in the BRIC economies (Brazil, Russia, India and China).

TNG’s other assets include a 20% free-carried interest in the Cawse Extended Project, convertible to a 2% net smelter return, which is located adjacent to the Cawse Nickel-Cobalt Operation in Western Australia.

TNG is listed on the Australian Securities Exchange (Ticker: TNG) and also on several European Bourses including Frankfurt.

TNG’s Board of Directors and management team have extensive experience in the mining and exploration industries – both in Australia and internationally. They are committed to increasing shareholder value by carrying out exploration and maximising the Company’s leverage to discoveries.

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