Lodestar Minerals Limited · ASX:LSR
Lodestar Minerals — Mincor Resources NL — Diggers & Dealers 2021
25 slides from Lodestar Minerals's conference presentation, August 2021
Slide 1: High Grade Nickel, World Class Address
High Grade Nickel World Class Address Australia’s newest nickel sulphide mines, perfectly timed for the new nickel dynamic Kambalda Perth David Southam Managing Director August 2021
Slide 2: Important Notice Disclaimer
Important Notice Disclaimer This presentation (Presentation) has been prepared by Mincor Resources NL (MCR) and is authorised by the Board of Directors of MCR. By retaining this Presentation, you (the Recipient) acknowledge and represent to MCR that you have read, understood and accept the terms of
Slide 3: A highly investable, modern nickel Company
A highly investable, modern nickel Company High‐quality shareholders, ~$545 million supportive register Market capitalisation1 ~$58.9 million Institutional* (~17%) Cash2 Wyloo (~15%) IGO (~8%) $55 million Project debt facilities currently undrawn (1) Market Capitalisation 27 July 2021. (2) Cash at b
Slide 4: Our delivery scorecard
Our delivery scorecard Key achievements since Diggers & Dealers last year $55m syndicated finance facility executed with Tier‐1 banks Recruitment of Mincor operational team Mobilisation of mining contractor Official opening of Cassini Nickel Mine – named the “Woodall Decline” in recognition
Slide 5: Kambalda – Australia's World-Class Ni Address
Kambalda – Australia’s World‐Class Ni Address Mincor’s portfolio of assets located across the world‐class Kambalda and Widgiemooltha “Domes” Region has produced well in excess of 1.6Mt of nickel* Characterised by multiple, long‐life, high‐grade nickel sulphide deposits Exciting new discoveries
Slide 6: Sustainability and Community; Our evolving ESG profile
Sustainability and Community; Our evolving ESG profile Next‐generation mining company, aligned with modern ESG principles Current focus on direct‐benefit initiatives within the local and regional communities that host our operations Strong commitment to providing opportunities for our indigenous
Slide 7: Safe operations, a Min"Core" value
Safe operations, a Min“Core”value 20 30 12 Month Injury Frequency Rate 6 years LTI free Frequency Rate No of Injuries 10 15 0 0 Jul‐20 Aug‐20 Sep‐20 Oct‐20 Nov‐20 Dec‐20 Jan‐21 Feb‐21 Mar‐21 Apr‐21 May‐21 Jun‐21 LTI MTI LTIFR MTIFR TRIFR Kambalda Nickel Operations – Lead Indicators reflect increasin
Slide 8: Simple, streamlined business, on track to deliver
Simple, streamlined business, on track to deliver DISCOVER DEVELOP DELIVER Unlocking new discoveries Integrated nickel restart plan, First concentrate targeted for in a world‐class nickel province underpinned by the Q1 CY2022, ramping up to cornerstone Cassini operation ~16ktpa nickel production* DI
Slide 9: The Mincor advantage
The Mincor advantage High quality assets, simple business, geared to succeed Premier Nickel Address, “Clean” High Grade Orebodies Nickel Sulphide assets in the enviable Kambalda and Widgiemooltha Domes, WA Streamlined Business, Simple Strategy, Abundant Infrastructure Simple mine to mill operations,
Slide 10: Mincor to Musk? BHP signs supply agreement with Tesla
Mincor to Musk? BHP signs supply agreement with Tesla Tesla's search for sustainable, low carbon emission nickel lands in Western Australia “Demand for nickel in batteries is estimated to grow by over 500% over the next decade, in large part to support the world’s rising demand for electric vehicl
Slide 11: Mincor's strategic advantage
Mincor’s strategic advantage Tier‐1 off‐take partner, committed to nickel Nickel Sulphide Ore Nickel Sulphide Ore BHP BHP BHP Kambalda Mt Keith Leinster Nickel Nickel Nickel Conc Conc Conc Concentrate Concentrate Dryer IGO WSA BHP Matte BHP Nova Forrestania Kalgoorlie Kwinana Export Nickel Smelter N
Slide 12: Processing and sales via executed OTCPA with BHP Nickel West
Processing and sales via executed OTCPA with BHP Nickel West Using BHP’s maintained Kambalda Nickel Concentrator built for Kambalda ore style Tier‐1 counterparty (BHP) Modern off‐take terms (payability) BHP well advanced on concentrator recommencement Substantial improvement in returns vs.
Slide 13: Northern Operations – the 'Golden Mile of Nickel'
Northern Operations – the ‘Golden Mile of Nickel’ Consolidation of the prolific Kambalda Dome: Dominant holding of an established mining centre and one of the most highly endowed Historical production of 23.0Mt @ 3.6% Ni for 818kt of nickel (from Otter Juan and Long mines) Significant potential
Slide 14: Northern Operations - "hive" of activity
Northern Operations ‐ “hive” of activity Underground Jumbo Development At Durkin Development advancing at both Successful completion of the 13‐7 raisebore at Long, contractor demobilised Long (Durkin Incline) and Durkin North (Durkin Decline) MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE
Slide 15: Cassini – greenfields discovery to flagship new operation
Cassini – greenfields discovery to flagship new operation First major high‐grade Kambalda discovery in decades Discovery proof‐of‐concept – Kambalda remains incredibly fertile Rapidly expanding high–grade orebody, very low discovery cost (~US$0.05/lb Ni) Low‐cost production centre, underpins M
Slide 16: Cassini – emergence of a new nickel camp
Cassini – emergence of a new nickel camp Cassini Main Mineral Resource continues to improve with depth 80 73 74 4.5 55 56 4.0 4.0 4 3.8 40 36 3.7 3.4 3.5 0 3 Cassini North Intersection New channel ~700m north of planned infrastructure at Cassini Main Grade Ni % tonnes per vertical metre Recent I
Slide 17: Kambalda – history of long-life assets
Kambalda – history of long‐life assets Strong track record of significantly exceeding initial LOM projections Kambalda District Ni Deposits – Starting Inventory vs. Historical Production (Ni Grade vs Contained Ni) Lunnon 5.0 Cassini Cassini 4.0 Miitel (Nov 19) (Jun 20) Long (prior to MCR) Long Otter
Slide 18: Cassini - development advancing on schedule
Cassini ‐ development advancing on schedule Face positions @ 20th July 2021 RAR 1 Vent Decline Woodall Decline Cassini surface raisebore Surface workshop – commissioning near complete RAR1 Raiseboring has commenced Twin decline development ‐ both Installation and commissioning of (Cassini Prim
Slide 19: Mincor funded for Kambalda restart
Mincor funded for Kambalda restart Funding approved, with a prudent contingency buffer and exploration funding Key Terms Financial Close achieved in March 2021, Facility Amount $55 million (50% BNP Paribas & 50% Société Générale) with first drawdown anticipated late September 2021 quarter Tenor 3.
Slide 20: Nickel Market – demand for "clean Ni" set to rise with EV market
Nickel Market – demand for “clean Ni” set to rise with EV market Annual passenger EV sales forecast to soar to 26 million by 2030 and 54 million by 2040 High nickel content batteries are the key to longer range, more efficient and cheaper EV’s Key question is – where will the Class‐1 nickel be
Slide 21: Carbon intensity of nickel – the concept of "sustainable nickel"
Carbon intensity of nickel – the concept of “sustainable nickel” Nickel sulphide the clear winner in Average LOM land disturbance vs emissions intensity of primary Ni Producing operations and projects for terms of carbon footprint and land the Ni sulphate sector, 2021 ‐ 2030 disturbance Will inc
Slide 22: The Mincor advantage, timed to meet demand
The Mincor advantage, timed to meet demand High quality assets, simple business, geared to succeed Premier Nickel Address, “clean” high grade orebodies Nickel Sulphide growth assets right here in Western Australia Streamlined Business, simple strategy, abundant infrastructure Simple mine to mill ope
Slide 23: Investor Inquires
Investor Inquires. David Southam Managing Director d.southam@mincor.com.au +61 8 9476 7200 Media Inquires. Nicholas Read Read Corporate +61 8 9388 1474
Slide 24: Nickel Mineral Resources
Nickel Mineral Resources Nickel Mineral Resources, 30 June 2020 MEASURED INDICATED INFERRED TOTAL RESOURCE Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni tonnes Cassini 1,282,000 4.0 194,000 4.1 1,476,000 4.0 58,700 Long 487,000 4.1 303,000 4.0 791,000 4.1 32,000 Redross 39,000 4.9 138,0
Slide 25: Nickel Mineral Reserves
Nickel Mineral Reserves Nickel Ore Reserves, 30 June 2020 PROVED PROBABLE TOTAL ORE RESERVE Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni tonnes Cassini 1,212,000 3.3 1,212,000 3.3 40,100 Long 162,000 2.7 162,000 2.7 4,300 Burnett ‐ ‐ 271,000 2.6 271,000 2.6 6,900 Miitel 19,000 2.9 126,000 2.1 145,00