Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Investor Presentation (April 2022)
37 slides from Lunnon Metals's investor presentation, Apr 14, 2022
Slide 1: Building for success
RIGHT TEAM >100yrs combined experience in district and commodities RIGHT ADDRESS 2022 Globally significant nickel & gold camp Building for 28 Ni RIGHT ASSETS success….. 79 Under-explored, missed last Ni boom, no modern exploration for >25 yrs Au 14 April 2022 RIGHT TIMING Supportive environment for
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer IMPORTANT: You must read the following before continuing. Not for release to US wire services or distribution in the United States. The following notice and disclaimer apply to this presentation ("Presentation") and you are therefore advised to read this carefully befor
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer This document does not constitute or contain an offer, invitation, solicitation or recommendation to subscribe for, acquire o r sell any securities in Lunnon (including New Shares), or any other financial products or securities, in any place or jurisdiction. This docume
Slide 4: Important Notice & Disclaimer
Important Notice & Disclaimer 6. Past performance Past performance metrics and figures (including past share price performance of Lunnon, as well as pro forma financial information, included in this Presentation are given for illustrative purposes only and should not be relied upon as (and is not) a
Slide 5: Important Notice & Disclaimer
Important Notice & Disclaimer 8. JORC Code It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"). Investors
Slide 6: Important Notice & Disclaimer
Important Notice & Disclaimer 10. Exploration results reporting This presentation contains references to Lunnon's exploration results. The information in this presentation that relates to previous exploration results has been extracted fro m the following Lunnon ASX announcements, where full details
Slide 7: Important Notice & Disclaimer
Important Notice & Disclaimer 11. Competent Person Statement The information in this Presentation that relates to geology, nickel and gold mineralisation, Mineral Resources and Exploration Results is based on, and fairly re presents information compiled and reviewed by Mr Aaron Wehrle, a Competent P
Slide 8: Important Notice & Disclaimer
Important Notice & Disclaimer 13. Disclaimer Neither Euroz Hartleys Limited or Argonaut Securities Pty Limited (the "Joint Lead Managers") nor any of their or the Company’s respective advisers or any of their respective affiliates, rel ated bodies corporate, directors, officers, partners, employees
Slide 9: Transformative Deal
Transformative Deal Acquire Silver Lake/Fisher nickel rights • Acquire nickel rights^ from St Ives Gold Mining Co. Pty Ltd ("SIGMC") for the final 2 historical WMC nickel mines (the “Acquisition”) • $20M payable in shares to SIGMC • After the Acquisition and raising, SIGMC’s voting power moves from
Slide 10: Equity Raising Overview
Equity Raising Overview • Single tranche placement to professional and institutional investors under the Company’s available capacity pursuant to Offer ASX Listing Rules 7.1 and 7.1A to raise $30 million (Placement). Structure • Approximately 32.3 million new shares to be issued under the Institutio
Slide 11: 2022 – Building for Success
2022 – Building for Success Putting LM8 on a pathway to growth & re-rating • Long history of Unparalleled Mining Address • 4 historical nickel • Globally significant facing commodity province World-class Ni Growth in forward mines, 7 known mining nickel camp nickel channels • Excellent local • Kamba
Slide 12: Register / corporate changes
Register / corporate changes At close Post Post Capital structure 11 Apr 22 Cap Raise Acquisition Board & Management Shares on issue (#M) 141.2 173.5 195.0 St Ives (GFI) (#M) 44.7 44.7 66.2 (31.65%) (25.77%) (33.96%) Share price (pre/placement) ($) 1.04 0.93 0.93 Market capitalization ($M) ~148 ~161
Slide 13: Highlights – doubling the LM8 footprint
Highlights – doubling the LM8 footprint News Flow – multiple World renowned programs across nickel district expanded KNP Significant opportunity Aggressive discovery 4 historical mines, Resource growth got sold with the ✓ Baker discovery gold in 2001 ✓ Warren target to mirror Foster programme Missed
Slide 14: Past production from Kambalda Ni mines
Past production from Kambalda Ni mines Production^: Pre-WMC sale vs Total Life of Mine Past Nickel Production^ to date 4.3% Mine Shut by Mt % Ni Ni kt 4.1% 3.9% 342 Silver 203 Lake 1986 4.5 2.7 123 3.7% 3.5% Ni % 3.3% Fisher 1988 1.7 2.3 38 467 101 674 3.1% 2.9% 196 Foster 1994 2.4 2.6 61 2.7% 253 2
Slide 15: Use of Funds - current portfolio
Use of Funds - current portfolio Positions LM8 to aggressively pursue exploration, permitting and mine access goals in a rising Ni price environment • Cash at hand, net of transaction costs* $5.9M • Capital raise net of brokerage $28.5M • Baker area $5.0M • Expedite infill, step out down plunge, met
Slide 16: Use of Funds – Acquisition
Use of Funds – Acquisition Acquiring last 2 historical WMC mines never previously transacted; produced >161kt nickel metal^ & also missed the last Ni price cycle • Silver Lake / Fisher $10.0M • Silver Lake - multiple 2D seismic lines along strike from McLeay, Moran, deep DDH fence lines on reflector
Slide 17: Mineral Rights Agreement
Mineral Rights Agreement Rights^ to explore and mine nickel within elevation constrained area • Contains Silver Lake & Fisher nickel mines • Nickel rights within constrained boundaries • Successfully applied at Beta/Hunt (TSX : Karora Resources) • Area directly abuts: ~540m • Beta/Hunt nickel mine •
Slide 18: New ground in the “Land of the Giants”
New ground in the “Land of the Giants” No meaningful nickel exploration in the last 30+ years Silver Lake past production of 123,000t Ni metal* 2km x 1km Immediate opportunities include: EOH > 1,000m no Ni EOH > 500m EOH > 250m drilling 1. Along strike of McLeay-Moran EOH > 100m (71.9kt Ni metal @ +
Slide 19: Silver Lake, McLeay/Moran extensions
Silver Lake, McLeay/Moran extensions B 850m 700m McLEAY ? A A B SILVER SILVER LAKE LAKE Note: Long section above NOT on Company’s tenement/rights Images: source ASX:IGO. Plan amended with Lunnon Rights Area boundary (yellow) on IGO’s 2011 Diggers Presentation. Long section IGO’s 2016 AGM presentatio
Slide 20: 21,000m drilled since IPO
21,000m drilled since IPO Warren Baker Discovered • Ni sulphides outside • Drill out complete to 40m x 40m Mineral Resource • Multiple significant nickel • Aim to demonstrate intercepts over 300m channel is as long & plunge, 80-100m strike prospective as Foster • Significant advances East Trough mad
Slide 21: Progress Foster, Warren & Baker together
Progress Foster, Warren & Baker together Foster • Re-enter, re-establish vent & 39kt Ni* power, grow resource from underground drilling (JORC 2012) • Metallurgy & geotechnical Consider together study + Warren • Warren, 85H, Foster South • Determine additions and plus additions from historical right
Slide 22: Foster: Dewater / Re-entry / Drill / Discover
Foster: Dewater / Re-entry / Drill / Discover 725m deep Foster shaft refer Slide 5 for full breakdown of Mineral Resource 22
Slide 23: Dewatering Foster mine
Dewatering Foster mine • Mine closed in 1994 • Previously permitted by Joint Venture that Dewatering of preceded LM8’s IPO Conqueror UG by Gold Fields St Ives • Steps on immediately • Revise permit / tender / award adjacent tenements • Establish discharge infrastructure to adjacent (2006) Lake Lefro
Slide 24: Baker & Warren – key lessons
Baker & Warren – key lessons • Fertile channels are hard to find • Lunnon now has at least 7 • Don’t shy away from gaps in WMC drilling ✓ Gaps = Opportunity = Ni Potential • Rewards are worth perseverance, as Baker shows ➢ Now apply across the enlarged Kambalda Nickel Project 2.7m @ 10.72% Ni (167.8
Slide 25: Baker Delights! A new discovery
Baker Delights! A new discovery • Exciting high grade, near surface nickel • Potential portal access close by (350m) in existing open pit • Ability to fast track definition, resource, permitting • Can consider before or in parallel to any Foster re-start DHTEM plates (reported 12th Nov 2021) Refer S
Slide 26: Warren – filling in large “gaps”
Warren – filling in large “gaps” 1 2 1 2 See Slide 6 for Warren ASX Announcements 26
Slide 27: Historical Core Programme ~ 350km core
Historical Core Programme ~ 350km core Growth without drilling • First Mineral Resource almost complete (N75C) • Target mineralisation adjacent to existing workings and current JORC Mineral Resource • Regular additions to inventory • All will impact on future re-start plans See Slide 6 for N75C ASX
Slide 28: Demonstrating deep potential at KNP
Demonstrating deep potential at KNP • Heavily endowed nickel and gold belt • Jan Shaft & Deeps • Mine closed at depth of ~560m in 1986 • Deep parent and wedge programme 560m planned • Testing potential below the mine • Both hanging wall and basalt contact positions O P • WA EIS Grant programme at E
Slide 29: WA Gov: EIS Grant - Kenilworth
WA Gov: EIS Grant - Kenilworth 3km long structural corridor • Adjacent and parallel to Boulder Lefroy Fault • Significant nickel endowment • Multi-million ounce gold camps to immediate north and south (Gold Fields) • Victory/Leviathan gold complex • Argo-Hamlet-Athena • 1,450m planned depth • First
Slide 30: Nickel, in the heart of Kambalda
Nickel, in the heart Kambalda • 4 historical nickel mines • +1 discovery 25km • At least 7 nickel channels 125km • 25km from Nickel West Concentrator • 125km from Black Swan Now funded to discover, grow and develop 30
Slide 31: Making our own history, in the heart of Kambalda
Contact Us Making our own history, in the heart of Kambalda Suite 5/11 Ventnor Avenue West Perth, WA 6005 PO Box 470 West Perth WA 6872 Tel: (08) 6424 8848 www.lunnonmetals.com.au Driller, Jack Lunnon (far right) overlooking Lake Lefroy from north side of Red Hill: with local and WMC dignitaries at
Slide 32: Real Assets, in the heart of Kambalda
Real Assets, in the heart of Kambalda Ni Kambalda Nickel Project Au 32
Slide 33: Risk factors
Risk factors There are various risks associated with an investment in New Shares or Lunnon generally. This section summarises the key risks specific to the existing business and operations of Lunnon and to the Offer. Potential investors should consider whether the Offer is a suitable investment havi
Slide 34: Risk factors
Risk factors Commodity Price and Exchange Rate Changes in the market price of a range of commodities, in particular nickel and gold, which in the past have both been subjec t to material fluctuations, will affect the profitability of the Company’s operations and its financial condition in the future
Slide 35: Risk factors
Risk factors COVID-19 The current COVID-19 pandemic has been having, and is likely to continue to have, a significant impact on global capital markets , commodity prices and foreign exchange rates. While to date COVID-19 has not had a material impact on the Company, it could have an adverse impact o
Slide 36: International offer restrictions
International offer restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 37: International offer restrictions
International offer restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a pr ospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in c