Aeon Metals — Shareholder Meeting (November 2019)
25 slides from Aeon Metals's shareholder meeting presentation, Nov 25, 2019
Slide 1: Aeon Metals Ltd Annual General Meeting
AEON METALS LTD Annual General Meeting 25 November 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT The Scoping Study referred to in this presentation was released on 21 October 2019 and was undertaken for the purpose of initial evaluation of a potential development of the Walford Creek polymetallic deposits. The Company confirms that all the material assumptions underpinning
Slide 3: Leverage to Copper-Cobalt Prices
3 LEVERAGE TO COPPER-COBALT PRICES 100% Aeon owned Walford Creek Project Leading Australian copper development The highest-grade significant cobalt deposit in Australia Large Measured & Indicated Resource underpins development Indicative value quantification - Interim Scoping Study1. Reset
Slide 4: Basin Edge Project – Proven Geological Model
4 BASIN EDGE PROJECT – PROVEN GEOLOGICAL MODEL Five new EPM applications and earn-in right to acquire 100% of tenement adds 130km of potential strike extent to existing tenement holdings Attractive basin-scale exploration opportunity A geological understanding. Increased level of interest in t
Slide 5: Walford Creek Resources – Vardy/Marley
5 WALFORD CREEK RESOURCES – VARDY/MARLEY Category Mt Cu % Pb % Zn % Ag g/t Co % Category Mt Cu % Pb % Zn % Ag g/t Co % Measured 2.9 1.19 0.93 0.94 25.9 0.15 Measured 2.4 0.14 0.81 1.34 19.6 0.11 Indicated 10.6 1.12 0.89 0.76 27.5 0.13 Indicated 11.0 0.17 0.80 1.00 20.9 0.10 Inferred 4.1 1.16 0.78 0.
Slide 6: Near Term Project Upside - Amy
6 NEAR TERM PROJECT UPSIDE - AMY 2017 AMY MARLEY VARDY ~6km ~3.6km 2018 AMY MARLEY VARDY ~6km ~3.6km 2019 AMY MARLEY VARDY ~6km ~3.6km Category Mt Cu % Pb % Zn % Ag g/t Co % Inferred 1.8 1.5 0.75 0.51 32.5 0.15 Amy Resources1 not included in Scoping Study 1. See 25 February 2019 ASX announcement f
Slide 7: Amy Exploration Target
6a AMY EXPLORATION TARGET Category Mt Cu % Pb % Zn % Ag g/t Co % Exploration Target 6 - 13 1.0 - 2.0 0.7 - 0.9 0.35 - 0.55 25 - 35 0.11 0.20 The potential quality and grade referred to above is conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource and it i
Slide 8: Project Summary
8 PROJECT SUMMARY Indicative project sizing defined by Feb 2019 Resource and mining optimisation work. Optimisation work indicates total life of mine tonnes of 35.5mt: Process Plant: Vardy & Marley = ~20mt Open Pit = ~10.6mt Underground = ~9.4mt Heap Leach: Vardy & Marley = ~15.5mt (open
Slide 9: Open Pit Mining
9 OPEN PIT MINING TOTAL LIFE OF MINE STRIP RATIO ~1.8:1 ORE ~1.4km 26.1MT 20m ~1.0km WASTE 47MT ORE FROM 20m MAXIMUM PIT DEPTH (VARDY) ~100m STARTED PITS AT BOTH VARDY AND MARLEY SUBSEQUENT PUSHBACKS OVER LIFE OF MINE Note: See Aeon website for 3D interactive video animation of the Walford Creek Pro
Slide 10: Underground Mining
10 UNDERGROUND MINING Vardy and Marley (PY3) Outputs: 9.4mt through the process plant Mining method - uphole retreat with paste fill: 100% extraction 120-300m Stope height 25m, width ~3.6km 15m Mining of elevated grades for both copper and cobalt is focussed across Years 2 to 5 Depth ran
Slide 11: Process Plant Selected
11 PROCESS PLANT SELECTED The Walford Creek Project metallurgical treatment consists of the following processes: Bio-leach assisted heap leach of low-grade ore; Flotation circuit producing: Copper concentrate; Lead concentrate; Variable amounts of silver will be recovered to the different concen
Slide 12: Indicative Site Layout
12 INDICATIVE SITE LAYOUT Standalone project - no offsite acid transportation Power mix of diesel, and self generation power (base case) On site water Access All government gazzeted roads
Slide 13: Forecast Metal Production
13 FORECAST METAL PRODUCTION Production Unit Total / LOM Annual average Contained copper production kt 145.8 13.6 Contained cobalt production kt 22.5 2.1 Contained zinc production kt 109.6 10.6 Contained lead production kt 95.7 9.3 Contained silver production Moz 10.2 1.0 Contained nickel production
Slide 14: Revenue
14 REVENUE Price inputs Copper and cobalt price assumptions - consensus LOM average copper price US$/lb 3.09 ( ) 14 9 research teams (June/July 2019) respectively LOM average cobalt price US$/lb 23.31 LOM average zinc price US$/lb 1.23 Zinc, lead, silver, and nickel price assumption are a LOM av
Slide 15: Operating & Capital Costs
15 OPERATING & CAPITAL COSTS Operating costs: Capital Costs: A$/t ore A$/t CuEq1 US$/lb CuEq1 Proportion of Operating cost component processed produced produced total (%) The total capital expenditure estimate (including Mining 18.1 1,422 0.47 31% sustaining capital) for the Project is A$397M Proc
Slide 16: Capex, Capital Intensity and Mine Life
16 CAPEX, CAPITAL INTENSITY AND MINE LIFE 30 $14,000 Capital Intensity (US$/tpa Cu Eq. production) Capital Intensity and Mine Life $2,825 25 $12,000 $725 $10,000 20 Walford Creek, AML $308 Mine Life (years) $336 $8,000 $350 $641 $484 15 $6,000 $158 $182 $226 $536 $141 $232 10 $269 $4,000 5 $2,000 $1
Slide 17: Base Case Economics
17 BASE CASE ECONOMICS Key financial outcomes Unit Total Project economics are robust with solid and Valuation, returns and key ratios consistent net cashflow over the 11 year mine NPV8% (post-tax, real basis, ungeared) A$M 431 IRR (post-tax, real basis, ungeared) % 33.8% life Payback period (post
Slide 18: Indicative Project Advancement Timeline
18 INDICATIVE PROJECT ADVANCEMENT TIMELINE 9 Clear pathway to development. Major milestones Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Scoping study PFS Board approval to proceed to DFS DFS Board review/approval to proceed Select EPCM contractor Detaile
Slide 19: Investment Summary
19 INVESTMENT SUMMARY Leading Australian copper development. The highest-grade significant cobalt deposit in Australia. Interim Scoping Study to set basis for final Feasibility Study: 11yr mine life 2mtpa process plant + ~1.5mtpa heap leach (of lower grade ore) Copper equivalent1 output
Slide 20: Copper & Cobalt Leverage
20 COPPER & COBALT LEVERAGE LME Copper Price (US$/t) LME Cobalt Price (US$/t) Source: LME Source: LME Base metals commodity cycle at bottom. EV growth forecast not gone away - +10%1 of global car sales by 2025. Walford Project indicative development timeline aligned with copper & cobalt le
Slide 21: Corporate Overview
21 CORPORATE OVERVIEW BOARD AND MANAGEMENT CAPITAL STRUCTURE 27 Paul Harris Cash A$3.1M2 investment banking. Previously MD, Head of Metals and Chairman Mining at Citi. Share price A$0.1151 Shares outstanding 674M Hamish Collins 27 Managing Director banking, including M&A and project financing. Marke
Slide 22: Appendices
APPENDICES EON METALS:
Slide 23: Appendix 1: Important Information / Competent Persons Statement
23 APPENDIX 1: IMPORTANT INFORMATION This document has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors. This document is not a prospectus and should not be considered an offer or an invitatio
Slide 24: Appendix 2: Geological Code
24 APPENDIX 2: GEOLOGICAL CODE Mineralisation is both structurally and lithologically controlled Fish River Fault (FRF) and Pyrite Units (PY1 and PY3). PYI from ~20m. PY3 from ~120m Sedimentary exhalative (SEDEX) deposit - Massive sulphides Pyrite lenses containing Pb-Zn-Ag. Secondary even
Slide 25: Appendix 2: Geological Code (cont.)
25 APPENDIX 2: GEOLOGICAL CODE (cont.) A. Shallow holes from 50m to 80m intercept both possible supergene mineralisation together with strong copper and cobalt mineralisation associated with the PY1 in close proximity to the FRF. B. Drilled behind the shallow holes. These holes from 70m to 110m can