Catalyst Metals Limited · ASX:CYL
Catalyst Metals — Merger or Acquisition (June 2023)
45 slides from Catalyst Metals's merger presentation, Jun 12, 2023
Slide 1: Plutonic-Marymia Gold Belt Consolidation
Plutonic-Marymia Gold Belt Consolidation Building a Mid-tier Australian Mining House INVESTOR PRESENTATION • JUNE 2023 ASX:CYL TSX-V:SGI catalystmetals.com.au superior-gold.com
Slide 2: Important Notices
Important Notices IMPORTANT NOTICE AND DISCLAIMER This investor presentation (the Presentation) is dated 12 June 2023. It has been prepared by Catalyst Metals Limited (ASX: CYL) (Catalyst or the Company). SUMMARY INFORMATION This Presentation contains summary information about Catalyst and Superior
Slide 3: Important Notices
Important Notices The release, publication or distribution of this Presentation (including an electronic copy) outside Australia may be restricted by law. If you come into possession of this presentation, you should observe restrictions and should seek your own advice on restrictions. Any non-compli
Slide 4: Disclaimers
Disclaimers FUTURE PERFORMANCE AND FORWARD-LOOKING STATEMENTS This Presentation contains certain “forward-looking statements” and “forward-looking information” under applicable securities laws (referred to herein as, forward-looking statements). Except for statements of historical fact, certain info
Slide 5: Compliance Statements
Compliance Statements MARYMIA EXPLORATION RESULTS AND MINERAL RESOURCE ESTIMATES Full details of the Exploration Results and Mineral Resource estimate for the Marymia Gold Project contained in this Presentation are provided in Catalyst’s ASX announcement dated 20 February 2023 (as updated on 22 Febr
Slide 6: Merger Overview
01 Merger Overview 6
Slide 7: Superior Gold – Transaction Overview
Superior Gold – Transaction Overview Catalyst Metals Limited and Superior Gold Inc. have entered into a Canadian Plan of Arrangement to merge the two companies Superior Gold's Board of Directors unanimously support the transaction Catalyst is offering one (1) fully paid Ordinary Catalyst share for e
Slide 8: Why vote YES and accept the offer from Catalyst
Why vote YES and accept the offer from Catalyst Creating a robust mid-tier producer that will offer Superior Gold shareholders potential for share re- rating and diversified growth 01 Increased production profile with ~ 100kozs per annum 02 Reduced financial risk and increased access to capital Cons
Slide 9: Post-Transaction Corporate Structure
Post-Transaction Corporate Structure Existing Catalyst Superior Capital raising shareholders shareholders shares issued 68% 23% 9% Catalyst Metals Limited Plutonic-Marymia Four Eagles Gold Henty Gold Mine Gold Project Project INVESTOR PRESENTATION 9
Slide 10: Plutonic Gold Belt
TRIDENT K2 High-grade Resource: High-grade Resource: M&I 285kozs @ 9.4g/t M&I 67kozs @ 10.6g/t Inferred 125kozs @ 6.0g/t Inferred 40kozs @ 7.0g/t CINNAMON M&I 86kozs @ 1.8g/t Plutonic Gold Belt Inferred 32kozs @ 1.9g/t Reserves2 ▪ Mineral Reserves: 5.6Mt @ 3.5g/t for 630koz ▪ Measured and Indicated:
Slide 11: Consolidation of Plutonic-Marymia Gold Belt
Consolidation of Plutonic-Marymia Gold Belt Foundations of a mid-tier gold company M&I 2.6Moz +7Moz Inferred 4.3Moz 630koz 40km Historical NI43-101 Highly prospective, Mineral Reserves2 Production1 Mineral Resources2 underexplored strike Hub & Spoke 3Mtpa $285M Three Better leverage Gold belts in Un
Slide 12: Consolidation creates next mid-cap gold miner
Consolidation creates next mid-cap gold miner All the ingredients required to materially increase production and lower costs Peer Group: Trident Mid-Cap M&I 285koz @ 9.4g/t Gold Companies Inf 125kozs @ 6.0g/t Henty Gold Mine 25koz/pa K2 M&I 67koz @ 10.6g/t Inf 40kozs @ 7.0g/t Avg Prodn Cinnamon 204k
Slide 13: Leadership and Governance
Leadership and Governance Stephen Boston James Champion de Crespigny Chairman Managing Director & CEO Mr Boston is the principal of a Perth based Mr Champion de Crespigny is a qualified Chartered private investment group specialising in Accountant with extensive experience in capital the Australian
Slide 14: Historical Challenges
02 Historical Challenges 14
Slide 15: Plutonic-Marymia Gold Belt – History
Plutonic-Marymia Gold Belt – History Historical owners demonstrate good foundations but with lack of attention/capital Resolute Mining / Production (koz) Plutonic Resources 400koz Gold Price Limited exploration (A$/oz) Limited exploration from 2005 to 2017 No new ore sources $3,000/oz 350koz 300koz
Slide 16: Long running operational challenges eroding shareholder returns
Long running operational challenges eroding shareholder returns $1.60 25.0 Since 1 Jan 2022 Capital -87% Cash $1.40 Raise -79% Share Price 24.6m shares @ $1.20 CAD $0.70 Quarterly Cash Balance (USD millions) 20.0 Superior Share Price (CAD) $1.00 15.0 $0.80 10.0 $0.60 $0.40 5.0 $0.20 0.0 $- INVESTOR
Slide 17: Mineral Resource Estimation Challenges
Mineral Resource Estimation Challenges Mined grade considerably lower than reserve grade Mineral Resources Underground M&I Resource Grade Underground Mineral Reserve 4.3Moz Grade Inferred Underground Processed 6Moz Mineral Grade Reserves 4.6g/t Au 3.7g/t Au 2.6Moz M&I 10% 2.2g/t Au Conversion 630koz
Slide 18: Plutonic Operating Costs
Plutonic Operating Costs 15 months of loss-making operations in rising gold price environment 2,500 AISC Costs AISC costs 2,000 consistently well above gold price 1,500 Gold Price US$/ounce All-In Costs 1,000 not publicly reported 500 - Mar 22 Qtr Jun 22 Qtr Sep 22 Qtr Dec 22 Qtr Mar 23 Qtr AISC Gol
Slide 19: Strategy to unlock value
03 Strategy to unlock value 19
Slide 20: Historical Challenges & Strategy to Unlock Value
Historical Challenges & Strategy to Unlock Value Changes need to be made to improve performance Historical Key Challenge Catalyst Learnings & Strategy High grade Transaction brings potential high grade underground No high grade ore sources ore feed ore sources – M&I of 352kozs at 9.4g/t1 Under- Lack
Slide 21: Consolidation brings multiple high grade ore sources together
Consolidation brings multiple high grade ore sources together Pipeline of projects to drive and unlock future production Building inventory at existing mining zones MINE Timor Pacific • Plutonic requires new high grade Advanced exploration ore feed to succeed projects to be a source Trident NEAR MIN
Slide 22: Trident – Re-Rating First Development Project
Significant Trident –Re-Rating Potential First Development Project Catalyst’s operational Indicated Resource of improvements and enhanced capital focus 285koz at 9.4g/t and investor appeal supports significant re-rating upside 22 1. CYL ASX announcement dated 20 February 2023 Marymia Gold Project Mi
Slide 23: Trident Plan View
Trident Plan View Permitting underway; drill program commencing July 2023; Targeting DFS Q4 2023 1. CYL ASX announcement dated 20 February 2023 Marymia Gold Project Mineral Resource INVESTOR PRESENTATION 23
Slide 24: Near Mine Exploration – K2
Near Mine Exploration – K2 High grade undeveloped project • Historically mined open pit • Attractive intersections at depth and along strike from existing pit • Remains open, with significant undrilled potential • Well maintained haul road from K2 to Plutonic provides ready access and quick developm
Slide 25: Near Mine Exploration – Salmon
Near Mine Exploration – Salmon Open Pit Target – obvious opportunity for synergies • Historical open pit on Plutonic / Marymia border • Historical production of 192koz1 during 1990’s • Significant drilling RC drilling from 1990’s undertaken that has never return significant gold intercepts that requ
Slide 26: Regional Exploration – Drill Density at Depth
Regional Exploration – Drill Density at Depth Trident only visible under 100m Plutonic visible under 100m • Deposits on gold belt only appear >100m • Minimal drilling > 100m • Considerable endowment - 7Moz past prodn1, M&I 2.6Moz2, Inf. 4.3Moz2 • Hosts attractive deposits (Timor Zone production +800
Slide 27: The New Catalyst: A Mid-tier Australian Mining House
04 The New Catalyst A Mid-tier Australian Mining House 27
Slide 28: Targeting control of Three High Grade Australian Gold Belts
Targeting control of Three High Grade Australian Gold Belts Building a mid-tier mining house Plutonic-Marymia Gold Belt1 • Mineral Reserves: 5.6Mt @ 3.5g/t for 630koz • M&I Resources: 23.6Mt at 3.4g/t for 2.6Moz • Inferred Resources: 36.2Mt at 3.7g/t for 4.3Moz Henty Gold Mine • Proven high-grade mi
Slide 29: Catalyst Post Consolidation
Catalyst Post Consolidation Three complementary high grade gold projects with belt scale PLUTONIC-MARYMIA HENTY BENDIGO • Plutonic Gold Mine & Hermes (SGI 100%) Project Henty Gold Mine (CYL 100%) Key Projects Four Eagles (Flagship – CYL 50%), Tandarra (CYL • Marymia Project (CYL 100%) Key Projects 5
Slide 30: Standout Resource Base
Standout Resource Base Large and high-grade resource relative to peers Resource Grade (g/t) 1,3 4.50g/t NI 43-101 Resource 2,3 Significant Re-Rating Potential JORC Resource Bubble Size = Contained Resource 4.00g/t NI 43-101 Compliant Resource 3.50g/t 3.00g/t 2.50g/t 2.00g/t 1.50g/t 1.00g/t 0.50g/t -
Slide 31: Significant Re-Rating Potential
Significant Re-Rating Potential Differentiated resource and valuation to peers supports significant re-rating potential Resource (Moz) Grade (g/t) EV/Resource ($/oz) 3 8.5Moz 3.70 g/t $167/oz NI 43-101 Resource 1 JORC2 NI 43-1013 7.3Moz 3.40g/t $146/oz Enlarged Pro-Forma 2 2,4 6.1Moz 3.35g/t $115/oz
Slide 32: Significant Re-Rating Potential
Significant Re-Rating Potential Catalyst’s operational improvements and enhanced capital focus and investor appeal supports significant re-rating upside Enterprise Value4 (A$m) & Grade (g/t)) (Enterprise value = market cap at 7 June 2023, plus interest bearing liabilities, minus cash and cash equiva
Slide 33: Contacts
Contacts James Champion de Crespigny MANAGING DIRECTOR, CATALYST METALS E: jdecrespigny@catalystmetals.com T: +61 8 6107 5878 Canaccord Genuity (Australia) Ltd T: +61 2 9263 1111 Argonaut Securities T: +61 8 9224 6888 Amalie Schreurs / Andrew Rowell Strategic Communications, White Noise Communicatio
Slide 34: Appendix
05 Appendix INVESTOR PRESENTATION
Slide 35: Pro-Forma Capital Structure
Pro-Forma Capital Structure All scrip consolidation with highly attractive acquisition cost per resource ounce of c. $6/oz Catalyst Superior Catalyst Pro-Forma Share Price / Offer Price $0.85 $0.301 $0.85 Securities 174.7m 123.4m 218.9m Market Capitalisation $148.0m $37.4m $185.5m % shareholding in
Slide 36: Bendigo Goldfields – Proven Gold Field at +22Moz
Bendigo Goldfields – Proven Gold Field at +22Moz High grade, highly concentrated mineral endowment • Most advanced exploration project in Bendigo/Fosterville area • Fosterville’s Swan Zone – 2.3Moz @ 50g/t1 • Control entire gold belt Catalyst Landholding and Bendigo projects Note 1: Fosterville-Gold
Slide 37: Four Eagles Gold Project
Four Eagles Gold Project Multiple recurring high-grade zones in close proximity • Scale of discovery can fit Bendigo-sized goldfield • Catalyst’s most advanced exploration project in Victoria • Continuously recurring high-grade gold zones in close proximity to one another • Tunnel development target
Slide 38: Four Eagles – Iris Zone
Four Eagles – Iris Zone Recurring high grade intercepts across the extent of the belt; strike length extended to +500m ASX Announcement 1 June 2023 Four Eagles Iris Zone strike length extends to 500m INVESTOR PRESENTATION 38
Slide 39: Four Eagles Gold Project
Four Eagles Gold Project Iris Zone • Proof of concept’ of structural similarities to 22Moz Bendigo Goldfield • Multiple high-grade zones within close proximity to exploration tunnel; changes project economics ASX Announcement 1 June 2023 Four Eagles Iris Zone strike length extends to 500m INVESTOR P
Slide 40: Boyd’s Dam Prospect (Part of Four Eagles Gold Project)
Boyd’s Dam Prospect (Part of Four Eagles Gold Project) Maiden Mineral Resource pending ASX Announcement 13 September 2022 – “Strong Drilling Results at Four Eagles Gold Project” ASX Announcement 10 February 2023 – “Drilling Results at New Iris Zone - Updated” INVESTOR PRESENTATION 40
Slide 41: Portfolio Snapshot – Henty
Portfolio Snapshot – Henty EL8/2009 mN Lakeside Roseberry Mine Lorrigan’s Luck Operating Gold Mine - Tasmania Sterling Valley ORDOVICIAN Wurawina Group CAMBRIAN Moxon Tyndall Group ML7M/1991 Red Hills Block Henty Fault Wedge Platter Zone Dundas Group Cambrian Felsic Volc • World class mineral provin
Slide 42: Demonstrated Resource Growth under Catalyst
Demonstrated Resource Growth under Catalyst Reinvesting in Resource development Resource Depletion Private Ownership Resource Growth • Resource growth has been ‘near mine’ • Ongoing exploration targeting new (2015-2020) Resource in virgin 36 368 areas 343 (44) 43 357 (25) 334 (20) (3) 296 (38) 24 28
Slide 43: Corporate Overview
Corporate Overview Capital Structure Board of Directors Share Price (7 June 2023) $0.85 Stephen Boston Non-Executive Chairman Shares on Issue 174.7m James Champion de Crespigny Market Capitalisation $148.0m Managing Director & CEO Cash (31-Mar-23) $38.1m Bruce Kay Non-Executive Director Enterprise V
Slide 44: Appendix A: Detailed Peer Data
Appendix A: Detailed Peer Data Measured Indicated Inferred Market Cap Cash Debt Enterprise Value Contained Au Grade Contained Au Grade Contained Au Grade Ticker Company ASX Announcement (A$m) 1 (A$m) 2 (A$m) 2 (A$m) 1 (koz) 3 (g/t) 3 (koz) 3 (g/t) 3 (koz) 3 (g/t) 3 ALK Alkane Resources $433m $117m $
Slide 45: Appendix B: Detailed Peer Data of Mid-Tier Mining Companies
Appendix B: Detailed Peer Data of Mid-Tier Mining Companies Development Market Cap AISC Ticker Company Production (koz) Source Stage (A$m) 1 (A$/oz) SBM St Barbara Producer 465 273 2,553 March Quarterly Report 27 April 2023, Half Year Presentation 22 February 2023 SLR Silver Lake Resources Producer