Slide 1: Kalgoorlie Nickel Project - Goongarrie Hub
Kalgoorlie Nickel Project - Goongarrie Hub A multi decade nickel-cobalt operation Andrew Penkethman Managing Director & CEO Noosa Mining Conference 17 – 19 July 2024
Slide 2: Disclaimer
Disclaimer Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 N
Slide 3: Experienced Board, Supportive Shareholders & Tight Capital Structure
Experienced Board, Supportive Shareholders & Tight Capital Structure Mat Longworth Non-Executive Chair Listed on ASX (ARL) Experienced across exploration, project evaluation / Shares on Issue 199,682,915 Cash (31 Mar 2024) A$17M development including KNP and corporate management Performance Rights 3
Slide 4: Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource • KNP – Goongarrie Hub, 70km northwest of the KNP City of Kalgoorlie-Boulder is in the best operating jurisdiction in the world with collaboration agreement with best possible Partners, SMM and MC1 • Major Project Status, with
Slide 5: All Nickel Supply Chains are NOT Equal
All Nickel Supply Chains are NOT Equal Sanctions affect Nornickel Kalgoorlie 6 Nickel Project Goongarrie Hub Low Risk/Low Concern 4 jurisdiction1 Large resource, multi-decade operation, robust financial metrics, low Opex - strategic asset attractive to OEMs2 4 New Complies with IRA, FEOC, EU
Slide 6: Current Nickel output cuts to pressure near term surpluses lower
Current Nickel output cuts to pressure near term surpluses lower • 2023 large nickel surplus led to significant drop in LME nickel cash price • Higher cost producers have responded Expected by cutting / ceasing production which in Goongarrie Hub production turn has put pressure on supply • Critical
Slide 7: Significant Critical Minerals Collaboration
Significant Critical Minerals Collaboration The Goongarrie Hub DFS is the first Critical Minerals collaboration between Australia and Japan, with the project expected to be a multi decade nickel-cobalt operation that provides supply chain diversity, security and meets the high ESG standards expected
Slide 8: What the Partners are Bringing to the Joint Venture…
What the Partners are Bringing to the Joint Venture… Globally Significant Asset SMM and MC will fully fund the KNP Goongarrie Hub DFS Goongarrie Hub – MRE 4Mt contained Ni & 250Kt contained Co The Consortium will provide technical input into the DFS and assist KNPL in Ore Reserve of 1.36Mt of contai
Slide 9: Kalgoorlie Nickel Project Resource in Top 10 Globally
Kalgoorlie Nickel Project Resource in Top 10 Globally Top 10 Note: • Contained Ni Metal is reported Total Mineral Resource (M+I+Inf) Page 9 • See References for Global Nickel Resource chart in Appendices (Reviewed 24 June 2024)
Slide 10: Premium Goethite Nickel and Cobalt Ore
Premium Goethite Nickel and Cobalt Ore Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Mining • Open-pit, soft, mainly free-digging To Siberia North To Kalgoorlie - Boulder • 2023 PFS pit schedule very low strip ratio of 1.8:1 (waste:ore) LOM • Conventional
Slide 11: KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel
KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel Goongarrie South - Pamela Jean Deeps Section 666 9600mN AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m AGSR0418* 42m @ 0.67% Ni, 0.04% Co from 30m 56m @ 1.29% Ni, 0.14%Co from 10
Slide 12: KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore
KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore Highway Section 669 9364mN AHID0012* AHID0012* 20m @ 1.14% Ni, 0.037% Co & 4g/t Sc from 4m AGSR0418 inc 4m @ 2.31% Ni, 0.132% Co & 8g/t Sc from 4m – HPAL feed & inc 8m @ 1.30% Ni, 0.015% Co & 3g/t Sc from 16m – Brown Typical white magne
Slide 13: Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers
Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers • Goongarrie Hub Ore Reserve2 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years • Strong financial metrics wi
Slide 14: ESG Credentials Strengthened During PFS
ESG Credentials Strengthened During PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 15: KNP Goongarrie Hub DFS has commenced
KNP Goongarrie Hub DFS has commenced • KNPL is a 100% subsidiary of Ardea with the Consortium Andrew Penkethman and Matt Read with Sumitomo Metal Mining and Mitsubishi Corporation representatives - progressively earning a 50% interest. KNPL holds the Goongarrie Niihama Nickel Refinery, Japan June 20
Slide 16: Ardea Exploration Pipeline Upside
Ardea Exploration Pipeline Upside Ardea controls ~3,500km2 of tenure in the Eastern Goldfields of WA with unrivalled Battery and Critical Mineral exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m)
Slide 17: Key Investment Considerations – For a Must Have Nickel-Cobalt Stock
Key Investment Considerations – For a Must Have Nickel-Cobalt Stock Ardea, Sumitomo Metal Mining and Mitsubishi Corporation to form a Joint Venture to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub; DFS, managed by KNPL, has commenced KNP is a strategic asset which includes the Goongar
Slide 18: Andrew Penkethman
Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 Our team welcome your questions ardea@ardearesources.com.au
Slide 19: Kalgoorlie Nickel Project Goongarrie Hub – Appendices
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Appendices: Full tables and supporting references
Slide 20: Leveraging Material Types
Leveraging KNP Goongarrie Hub Material Types The KNP Goongarrie Hub nickel-cobalt laterite deposits have developed from intense tropical weathering of the Walter Williams Formation Premium Goethite grind (WWF), an olivine cumulate ultramafic volcanic rock, and preferential and beneficiation ore as w
Slide 21: Competent Persons
Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 June 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX MOU Announcements 5 July 2023, 29 September 2023, 21 December 2023 and 31 January 2024. Information in this presentation th
Slide 22: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade The Competent Persons (CP) for the Mineral Resources, are Contained Contained Mr Ian Buchhorn and Mr Andrew Penkethman, both are full-time KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (
Slide 23: KNP Goongarrie Hub MRE
KNP Goongarrie Hub MRE KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut -off grade Resource Size Ni Co Contained Metal Estimation Details Prospect Category (Mt) (%) (%) Ni (kt) Co (kt) Method Source Year Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Goongarrie The Compete
Slide 24: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore Ni Co Ni Co Ni Co Ni Co Ni Co Ni Co KNP Goongarrie Hub Ore Reserve Summary consisting of Deposit Mt % % kt kt Mt % % kt kt Mt % % kt kt ore above 0.5% Ni as the feed stock for the processing Proven facility
Slide 25: References for Global Nickel Resource Chart
References for Global Nickel Resource Chart Page(s) PDF Resources Reference Date Title reference Link SLN - Doniambo 17 Apr 2024 Eramet Universal Registration Document 2023 95 https://www.eramet.com/wp-content/uploads/2024/04/2024-04-17-Eramet-DEU-2023-EN.pdf.pdf Data book: Mineral Resources and Ore
Slide 26: KNP Goongarrie Hub Ore Reserve
Cross Section KNP Goongarrie Hub 669 9364mN Highway Ore Reserve1 • 1.36Mt of nickel metal • 99kt of cobalt metal Goongarrie Hill Cross Section Goongarrie South 666 9600mN Big Four / Scotia Dam Siberia North Page 26 1. See full tables in Appendix and 5 July 2023 ARL PFS ASX Announcement. 70km to Kalg
Slide 27: PFS Key Financial Metrics
PFS Key Financial Metrics PFS defines > 40-year Financials A$ M 44,429 Nickel Revenue operation with strong Cobalt Revenue A$ M 7,880 financial metrics1: Revenue - combined EBITDA LOM A$ M A$ M 52,309 34,217 • Pre-tax NPV7 of A$7,625M (IRR 30%) EBITDA Annual (average) A$ M 800 EBITDA margin % 65% •
Slide 28: PFS 2023 – Capital Cost Estimate
PFS 2023 – Capital Cost Estimate KNP – Goongarrie Hub Preproduction Cost Category Costs (A$) • Contingency considered appropriate to the level of the capital cost estimate has been included Mining – overheads, mobilisation, 98M • Base date March 2023 pre-strip and other • Refer to 5 July 2023 ARL PF
Slide 29: DFS Key Budget Items
DFS Key Budget Items The Consortium (SMM and MC) will DFS Cost Centre Costs (A$) 13.4M fund 100% of the KNP Goongarrie Drilling Hub DFS costs, up to the agreed Metallurgical Test Work 2.3M Mine Design 15.0M budget of A$98.5 million (incl dewatering & geotechnical) Process Plant Design 28.3M Building
Slide 30: KNP – Goongarrie Hub Superior HPAL Intensity
KNP – Goongarrie Hub Superior HPAL Intensity Good ore grade + good slurry density = Lower Capex & Opex $ Atmospheric leach = stable operation, utilizes saprolite resource MHP & MSP Product = known technology & good market acceptance Operating data from Australian HPAL Producers Performance Dr
Slide 31: EV Sales Grow – High Nickel Batteries hold increasing share of market
EV Sales Grow – High Nickel Batteries hold increasing share of market • Nickel batteries, which have nearly twice the energy • Nickel batteries hold a large share of the EV density of other materials, are leading EV applications landscape. High Ni cathodes favoured, with in Domestic, Commercial and
Slide 32: Ardea Receives Improved ESG Certification Score 2024
Ardea Receives Improved ESG Certification Score 2024 2024 ESG Scores for Ardea Ardea’s work practices are aimed at meeting or exceeding the high ESG standards expected by modern society with continuous improvement shown in the two Digbee ESGTM surveys completed Page 32
Slide 33: Unlocking Value of Kalgoorlie Nickel Project
Unlocking Value of Kalgoorlie Nickel Project 1. See 30 June 2023 ARL MRE announcement and 5 July 2023 ARL PFS ASX Announcement and full Financial Metrics. See Appendices in this presentation Page 33 2. See 29 April 2024 ARL, SMM and MC to form a JV to develop KNP Goongarrie Hub ASX Announcement