Aeon Metals — Investor Presentation (July 2021)
35 slides from Aeon Metals's investor presentation, Jul 5, 2021
Slide 1: Aeon Metals Ltd: A Fresh Approach
AEON METALS LTD A Fresh Approach - Expanding the Walford Creek Mineral Resources - Moving Walford Creek Cu-Co Project Towards Development - Advancing Regional Exploration with a Copper Focus July 2021
Slide 2: Cautionary Statement
2 Cautionary Statement This document dated 5 July 2021 has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors in relation to a placement and a share purchase plan. This document is not a prospec
Slide 3: Investment Highlights
Investment Highlights Applying a fresh approach to a globally significant copper and cobalt project1 Aeon Metals has significant exposure to future energy metals through its flagship Walford Creek project Significant Exposure to Copper, cobalt, zinc and nickel are key metals of a low carbon future F
Slide 4: Corporate Snapshot
4 Corporate Snapshot Price Performance (AML, Copper and Cobalt) Shareholders 250 Copper Cobalt AML 5% 200 20% 150 44% 100 50 31% 0 Jul 20 Oct 20 Jan 21 Apr 21 AML Share Price vs. Co Price vs. Cu Price (01 Sep 2017 1 July 2021) (A$ basis, Rebased to 100) OCP Asia Retail Institutions Management (Past
Slide 5: Aeon Metals Limited Board
5 AEON METALS LIMITED BOARD CHAIRMAN, PAUL HARRIS (since December, 2014 - Sydney) s on strategy, mergers and acquisitions, and capital markets, including as Managing Director Head of Metals and Mining at Citi and previously Merrill Lynch. Mr. Harris has a Master of Engineering (Mining) and a Bachelo
Slide 6: Extensive Queensland Tenement Package
6 Extensive Queensland Tenement Package Flagship Walford Creek Project and 4,445km2 of base metal exploration tenements Projects Walford Creek Project (100%) World class copper province >80,000m drilling over past 5 years ~44Mt polymetallic Mineral Resource underpins development Significant near res
Slide 7: Walford Creek Project Milestones
7 Walford Creek Project Milestones 100% owned, extensive resource drilling, robust scoping study results, PFS underway History 1985 1996: WMC ~100 RC, RC/DD and DD holes (~15,000m) 2004 2006: Copper Strike model Cultural heritage issues 2009 2013: Aston Metals JV partial earn-in followed by 100% buy
Slide 8: 2021 Mineral Resource Estimates over 80% M&I
2021 Mineral Resource Estimates 1 over 80% M&I 8 Vardy/Marley Copper Mineral Resource Category Mt Cu % Pb % Zn % Ag ppm Co % Ni % Pyrite % Measured 6.4 1.17 1.02 0.88 27.9 0.15 0.07 42.8 Indicated 12.2 1.03 1.03 0.66 31.8 0.15 0.07 39.0 Inferred 1.0 1.05 1.13 0.73 36.2 0.14 0.06 41.9 Total 19. 6 1.0
Slide 9: Revised Scoping Study Results
Revised Scoping Study Results
Slide 10: Revised Scoping Study Highlights
10 Revised Scoping Study Highlights Scale, long life, competitive operating costs, strong revenues, portfolio metal exposure Conventional open pit and underground mining of existing Vardy, Marley and Amy deposits delivering an initial operating life of approximately 14 years 3Mtpa comminution and fl
Slide 11: Revised Scoping Study Assumptions
11 Revised Scoping Study Assumptions A conservative approach underpinned by extensive previous study and testwork results 2021 Mineral Resource Estimates for Vardy, Marley, Amy Production Mine schedule based on optimisation using owner operator mining costs and long Schedule term commodity prices Te
Slide 12: Revised Scoping Study Key Physicals
12 Revised Scoping Study Key Physicals Attractive project scale and longevity complement commodity diversification for investors Metal Head Grade Recovery LOM Metal Annual Metal Cu 0.7% 95% 243kt 20kt Zn 0.83% 92% 278kt 23kt Ag 28g/t 82% 26Moz 2.5Moz Co 0.12% 79% 33kt 2.75kt Ni 0.05% 76% 15kt 1.25kt
Slide 13: LOM Metal Production
13 LOM Metal Production Walford Creek is expected to deliver 590kt of CuEq production at an average annual nameplate of ~50kt CuEq Copper metal production (kt) Zinc metal production (kt) 25.0 30.0 LOM Cu: 243kt LOM Zn: 278kt 25.0 20.0 Production tonnes (kt) Production tonnes (kt) 20.0 15.0 15.0 10.0
Slide 14: Key Financial Outcomes
14 Key Financial Outcomes Preliminary economics drive decision to proceed to a Pre-Feasibility Study Consensus Case Current Case Metal Prices copper price US$/lb 3.52 4.54 cobalt price US$/lb 16.79 20.42 zinc price US$/lb 1.22 1.36 silver price US$/oz 20.0 27.0 nickel price US$/lb 6.80 8.16 A$/US$ A
Slide 15: Attractive Revenues Underpinned by High Value End Product Mix
15 Attractive Revenues Underpinned by High Value End Product Mix Copper and cobalt make up ~70% of the revenue mix over LOM Revenue Split by Metal1 (%) Cu Zn Ag Co Ni 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year 1. Based on spot commodity and foreign exchange
Slide 16: Competitive Unit Operating Costs
16 Competitive Unit Operating Costs Walford Creek has an attractive average AISC of US$2.0 2.2/lb CuEq Unit Costs Consensus Case Current Case 1 Mining costs include clearing, 1 Mining A$/t processed 46.4 46.4 topsoil removal, drill and blast, Processing (incl. tailings) A$/t processed 42.4 42.4 load
Slide 17: Operating Cost Breakdown
17 Operating Cost Breakdown Unit operating costs (A$/t) Operating cost split (%) 175 1.0% 3.0% 9.0% 150 147 Royalty 5.0% 125 115 5.0% 109 110 Mining U/G 36.0% Operating cost (A$/t) 102 100 94 93 94 93 93 94 94 93 91 75 14.0% Maintenance 67 50 Reagents 9.0% Oxygen 25 Power 6.0% 12.0% - 1 2 3 4 5 6 7
Slide 18: Strong Free Cash Flow Generation
18 Strong Free Cash Flow Generation Substantial LOM cashflow of ~A$1.9bn is forecast at current metal prices Annual and Cumulative Cashflow1 (A$m) 2,000 800 LOM Cumulative Cashflow: ~A$1.9bn 1,500 600 1,000 400 Cumulative Cashflow (A$m) Annual Cashflow (A$m) 269 254 249 244 229 230 226 223 214 206 1
Slide 19: Proposed Project Timeline
19 Proposed Project Timeline Moving forward - targeting a development decision by end of 2022 to deliver potential for first production in 2025 Apr 21 Jul 21 Oct 21 Jan 22 May 22 Aug 22 Nov 22 Environmental Impact Statement Land Access Agreements Prefeasibility Study Exploration Drilling Bulk Sulphi
Slide 20: Open Pit Mining & Site Layout
20 Open Pit Mining & Site Layout Upper Py1 load in Vardy & Marley mined from open cut, lower Py3 load in Vardy, Marley and Amy mined from underground Open Pit Mining Site Layout Vardy + Marley open pits:11.2Mt ore with strip ratio 2.8:1 Gently sloping and open terrain Current exploration program is
Slide 21: Vardy / Marley Pit and Stope Designs
21 Vardy / Marley Pit and Stope Designs Open pit production matched to underground production for first 10 years >0.5% Cu Eq resource outlines Current exploration program is expected to extend open pits and expand underground stoping Vardy / Marley underground mine Design in longitudinal projection
Slide 22: Underground Ore Extraction
22 Underground Ore Extraction Underground extraction will be by traverse retreat longhole open stoping
Slide 23: A Winning Approach
23 A Winning Approach 1. Bulk sulphide flotation 2. Pressure oxidative leaching 3. Sequential metal recovery Bulk Sulphide Concentrate / POX Flowsheet Cu Pb Zn Ag Co Ni Primary Grind P80 150µm Primary Liberation metal sulphides from non-sulphide gangue Initial Separation Bulk sulphide concentrate Me
Slide 24: Excellent Cobalt Extraction From Pyrite Concentrate
24 Excellent Cobalt Extraction From Pyrite Concentrate Low temperature POX is highly effective at extracting cobalt and other metals Process Co extraction PLS tenor Residence time Capex Opex Heap bioleach low very low very high low low Atmospheric leach low low high low low Atmospheric oxidative med
Slide 25: Bulk Sulphide Concentrate Flowsheet
25 Bulk Sulphide Concentrate Flowsheet
Slide 26: Pressure Oxidative Leach Flowsheet
26 Pressure Oxidative Leach Flowsheet
Slide 27: Embracing Solar
27 Embracing Solar Lower cost solar PV generation is expected to contribute at least 30% of the total 54MW power requirement for the project Annual mean solar irradiation ~6kWhr/m2 Annual mean sunshine ~10hr/day Electricity Pricing (Capex + Opex ): Solar <10c/kWhr vs Diesel >25c/kWhr Potential for >
Slide 28: Logistics Route
28 Logistics Route Export of the metal end products is planned via road (and possibly rail) to Townsville port
Slide 29: Exploration Upside
Exploration Upside
Slide 30: 2021 Exploration Program Resource Infill
30 2021 Exploration Program Resource Infill Geophysical survey work completed, significant drilling program commenced Existing open pit shells and underground stoping gaps within Marley and Vardy (red) with highlighted (yellow) to be targeted Phase 1 Phase 2 Metallurgical and in-fill drilling largel
Slide 31: 2021 Exploration Program Resource Expansion
31 2021 Exploration Program Resource Expansion Building towards an updated Mineral Resource estimate in early 2022 2021 Exploration Program scope Phase 3 Drilling activities reflecting outcomes of Phase 2 Focus on delineation to incorporate into an updated Mineral Resource Estimate (early 2022) prio
Slide 32: The Wider Basin Hosting Walford Creek Has More To Offer
32 The Wider Basin Hosting Walford Creek Has More To Offer Emerging base metals mineral province that is attracting broader interest Basin Edge Project Strategic tenement holding in what is a World Class Mineral Province Under cover and under explored Walford mineralisation strike extent suggests po
Slide 33: Promising IOCG Targets on Isa West Tenements
33 Promising IOCG Targets on Isa West Tenements Beauchamps drilling in 2020 demonstrated presence of IOCG system Isa West IOCG Project Substantial ground holding of 1,241km² 3 holes drilled in 2020 to test coincident regional magnetic and gravity anomalism with a moderate AEM response Shallow cover
Slide 34: Porphyry Co/Mo Targets in South East Qld
34 Porphyry Co/Mo Targets in South East Qld Large mineral province hosting variety of mineralisation styles Monto Project Highly prospective Minerals Province known for not only gold systems (Mt Morgan, Mt Rawdon, Cracow and Gympie) but also Cu-Mo porphyry systems (Coalstoun, Anduramba and Chinaman
Slide 35: Conclusion
CONCLUSION Aeon Metals is focused on: 1. Completing PFS on Walford Creek Cu/Co Project 2. Completing Resource Drilling Program 3. Advancing Regional Copper Exploration 4. Delivering Results