Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (April 2018)
26 slides from Aurelia Metals's investor presentation, Apr 23, 2018
Slide 1: Building a Leading Cobar Gold and Base Metals Producer
For personal use only ASX Code: AMI Building a Leading Cobar Gold and Base Metals Producer • Can we get access to some images of Peak to use on the cover here? Investor Presentation – April 2018 Jim Simpson, Managing Director & CEO
Slide 2: Forward Looking Statement
Forward Looking Statement For personal use only This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation
Slide 3: Company Overview
Company Overview For personal use only • Aurelia Metals Limited (AMI.ASX) is an emerging gold and based metals company based in Orange NSW • The Company’s flagship asset is the high-grade Hera-Nymagee gold-lead-zinc- silver mine in central NSW • Peak Gold Mines was acquired on 10 April 2018 which co
Slide 4: Key Assets – Located in the productive Cobar Region
Key Assets – Located in the productive Cobar Region For personal use only 4
Slide 5: Peak Acquisition: Perfect Growth Opportunity
Peak Acquisition: Perfect Growth Opportunity Acquisition positions Aurelia with a dominant Neighbouring Located 75km (90km by road) north of Aurelia’s Hera landholding in a highly endowed mineral province For personal use only Operations operations, offering significant operational synergies Diversi
Slide 6: What Does FY19 Look Like for Aurelia?
What Does FY19 Look Like for Aurelia? Two High Grade Mining Operations: Peak & Hera For personal use only Aurelia Production outlook for FY19 (Hera and Peak 12 months): • 100,000 – 125,000 ounces gold • 185,000 – 210,000 Au Eq.(ii) • AISC(i) of A$900-A$1,100/oz Peak Plant Hera Plant (i) AISC/oz only
Slide 7: Value Proposition
Value Proposition For personal use only Low cost producer–AISC Expanding mine life Attractive exploration ground Very low PE Ratio 7
Slide 8: Low Cost Producer - AISC
Low Cost Producer - ASIC Lowest cost highest margin gold producer For personal use only – Mar18 AISC of A$316/oz which is an improvement on Dec17 Quarter – Graphs below show AISC and AIC (FCF) margins for leading gold producers for Dec 17 Quarter AISC Margin (A$/oz) FCF/oz (A$/oz) 1400 1200 1200 100
Slide 9: Expanding Mine Life
Expanding Mine Life For personal use only Mine Inventory increased to 9 years with Hera (5 years) and Nymagee (4 years) Hera Mine (100%) Gold lead zinc silver production Resources (1) 2.9 Mt at 2.8 g/t Au, 2.6% Pb, 3.8%Zn (NSR $244/t) $120/t cut-off Reserves (1) 1.4 Mt at 3.5 g/t Au, 2.7% Pb, 4.1% Z
Slide 10: Aurelia Consolidated Resources & Reserves
Aurelia Consolidated Resources & Reserves Aurelia - Total Resources Gold Lead Zinc Silver Copper • 117% growth in Mineral Resource For personal use only Tonnes (kt) (g/t) (%) (%) (g/t) (%) Measured 605 3.0 2.8 4.0 24 N/A tonnes Indicated 1,729 3.0 2.3 3.4 16 N/A Inferred 599 1.9 3.2 4.6 46 N/A • 187
Slide 11: Hera – Delivering strong operating performance
Hera – Delivering strong operating performance For personal use only 11
Slide 12: Deliver lower total cost
Key Focus – Deliver lower total cost For personal use only 12
Slide 13: Deliver stronger processing performance
Key Focus - Deliver stronger processing performance For personal use only • New screen installed in Oct improving capacity from 52tph to +65tph • Average gold grade targeted to remain the same • Limitations with concentrate filtration now improved to 150tpd • Increasing Pb/Zn grades to provide two c
Slide 14: Base Metal Concentrate Production
Base Metal Concentrate Production For personal use only • Increasing Pb/Zn grades and higher throughput will utilise plant conc. capacity • Averaging two shipments/qtr in FY18 Improving base metal grades and concentrate production 14
Slide 15: Deliver strong cash margin
Key Focus – Deliver strong cash margin For personal use only 2018 FY • Higher throughput • Improved Au recoveries • Lower unit costs and treatment terms • Increasing base metal production • Regular shipments 15
Slide 16: Deliver reduced net debt
Key Focus – Deliver reduced net debt • Current Glencore debt of $30.4M (31 March 2018) For personal use only • Net cash position $51.2M (31 March 2018) prior to purchase of PGM • $45M Investec debt draw in early April 2018 to acquire PGM. 16
Slide 17: Key Assets – Cobar Region long section
Key Assets – Cobar Region long section For personal use only Australia NSW 17
Slide 18: Peak Mines - A 10km Corridor of High Grade Mines
Peak Mines - A 10km Corridor of High Grade Mines • A tier-1 mining operation in a premier gold and base metals district For personal use only • A continuous and highly profitable mining history of more than 25 years • Over 2.8Moz gold and 215Mlbs copper produced • Mining from two underground mines c
Slide 19: Deliver growth in mine life
Key Focus – Deliver growth in mine life For personal use only N 19
Slide 20: Deliver growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) For personal use only Nymagee Nymagee Cu/Pb/Zn Copper Project • Historic mine and current resource, located 5km north of Hera Mine • Ability to leverage from N Hera mine infrastructure 5 km Hera Mine Lease boundary 20
Slide 21: Scoping Study Key Findings
Key Focus – Deliver growth in mine life (Nymagee) Scoping Study Key Findings For personal use only Mine Life 3.5 to 4 Years This provides a total project life of 8-9 years including Hera Production Target 1.38 Mt at 2.2% Cu, 1.6% Pb, 3.2% Zn NSR Value (NSR A$190/t-A$210/t) Scoping Study metal prices
Slide 22: Nymagee Long Section
Key Focus – Deliver growth in mine life (Nymagee) Nymagee Long Section For personal use only Nymagee Cu/Pb/Zn • Pre-Feasibility work underway with Current Resource Shell environmental and metallurgical studies. 300 m below surface • Exploration potential at depth 500 m below surface Detail on the Ny
Slide 23: Nymagee X-Section
Key Focus – Deliver growth in mine life (Nymagee) Nymagee X-Section For personal use only Nymagee Cu/Pb/Zn • Multiple exploration targets exist 23
Slide 24: Mine Corridor
Key Focus – Deliver growth in mine life (Mine Trend) For personal use only Mine Corridor • Hera-Nymagee corridor remains highly prospective • The Hera & Nymagee deposits are both marked HEBE by prominent gravity highs • Several gravity targets have been defined along 20km of strike • Exploration of
Slide 25: Conclusion
Conclusion Strategy to Deliver For personal use only Generate cash Continuously improve operational performance - Focus on improvement in recovery to 94% - Minimise unit costs - Fast track mine plan to access North Pod high grade Restructure Pay back Glencore Balance Sheet Deliver growth North Pod E
Slide 26: Competent Persons Statement
Competent Persons Statement Competent Persons Statement – Exploration Results Competent Persons Statement – Nymagee Resource Estimate For personal use only The Resource Estimation for Nymagee was completed in 2011 by Mr Dean Fredericksen, then the Chief Operating Officer of Aurelia Metals Ltd who wa