Aeris Resources Limited · ASX:AIS
Aeris Resources — Corporate Update (March 2018)
31 slides from Aeris Resources's corporate update, March 2018
Slide 1: Company Update: Producing, Exploring, Growing
Company Update Producing Exploring Growing March 2018 ASX: AIS
Slide 2: Disclaimer
Disclaimer Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements or forward-looking information. The words “intend”, “may”, “would”, “could”, “will”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “target” and similar expressions
Slide 3: Unshackling of a mid-tier copper producer
Unshackling of a mid-tier copper producer • Aeris’ ability to grow has been restricted by high debt levels and complex capital structure • This transaction: Materially reduces debt levels 2013 Simplifies $135M capital structure and halves shares issued on a fully diluted basis Provides financi
Slide 4: Significant value enhancing transaction
Significant value enhancing transaction 3 Value enhancing events in one transaction (~$107 million* excluding price participation) Senior Debt reduced by 53% ― from US$63.3 million to US$30 million (includes US$5 million Arranger Fee) Share Capital reduced by 50% (for $1) ― 467 million (80%) of
Slide 5: Debt reduction over 5 years (US$87 million)
Debt reduction over 5 years Total Debt (US$ millions) 64% (US$87 million) $136 $120 reduction in $77 debt since 2013 $49 FY13 FY15 FY17 Pro-Forma • SPOV (a subsidiary of a fund managed by PAG) bought SCB Senior Debt position in December 2017 • Aeris and SPOV agree to restructure Senior Debt from US$
Slide 6: SCB agree to cancel majority of their Preference Shares
SCB agree to cancel majority of their Preference Shares Fully Diluted Shares (millions) 934 Existing shareholders 560 effectively 467 SCB Preference shares 93 double their 93 93 holdings in the Management options 140 PAG preference shares 140 Ordinary shares 280 Company Pre Post • SPOV has agreed to
Slide 7: Company Snapshot
Company Snapshot
Slide 8: Company Snapshot
Company Snapshot Current Pro-forma Board Shares on issue 140.1 million 280.2 million** Andre Labuschagne Executive Chairman Options and Convertible Michele Muscillo Director 794 million 186.8 million*** Preference shares Share price# 14 cents Market Alastair Morrison Director dependent Market Cap fu
Slide 9: Australian producer landscape
Australian producer landscape • Tritton Operations in a proven copper producing district with various producers and explorers in the region • Torrens Project Perfectly located between two major deposits in a known IOCG region 9 Source: Geoscience Australia
Slide 10: Producing: Tritton Copper Operations
PRODUCING Tritton Copper Operations 10
Slide 11: Tritton Operations overview
Tritton Operations overview Proven producer with extensive exploration portfolio Key Statistics Ownership: Aeris (100%) Location: Nyngan, NSW, Australia Commodity: Copper (Silver and Gold by-product) Product Type: Concentrate Overview Underground Mine Type: Long hole open stoping Ore R
Slide 12: Tritton Underground Mine
Tritton Underground Mine ― Baseload ore source – 1.1mtpa-1.2mtpa ― $10 million Ventilation Shaft - commissioned ― Remnant pillars (high grade) - in production ― Fleet renewal – ongoing ― Mineralisation extends at depth – brownfields exploration potential to extend mine life Mineralisation open at de
Slide 13: Murrawombie Underground Mine
Murrawombie Underground Mine ― Development commenced FY2017 ― Grade control drilling improved understanding of geology and grades ― Higher grades targeted for LOM ― Potential Upside - extensions at depth Mineralisation open at depth 13
Slide 14: 1.8mtpa Processing Plant
1.8mtpa Processing Plant ― Float cell replacement – delivering improved concentrate quality ― Further infrastructure upgrades –including crusher replacement Tritton tonnes milled 000’s 2,000 1,500 1,000 500 0 FY13 FY14 FY15 FY16 FY17 FY18F LOM ave 14 14
Slide 15: LOM plan (5+ years)
LOM plan (5+ years) ― Ore Reserves: 10.5mt @ 1.5% Cu * ― Mineral Resources: 21mt @ 1.5% Cu * Tritton Copper Production 40,000 ― 5 year reserve life 30,000 • 1.6 mtpa processed • Producing average 24ktpa 20,000 10,000 ― Feed from • Tritton underground 0 • Murrawombie underground FY13 FY14 FY15 FY16 F
Slide 16: Exploring & Growing
EXPLORING & GROWING - Brownfields Exploration - Greenfields Exploration - Mergers & Acquisitions 16
Slide 17: Exploration Projects
Exploration Projects Exploration focused within two key areas Tritton Tenement Package Torrens Project • 6 exploration licences covering • Prospective for large IOCG type deposits ~1,800km2 of prospective ground in the mineral rich Gawler Craton which for base metal deposits within the hosts the wor
Slide 18: Tritton Tenement Package Growth Strategy
Tritton Tenement Package Growth Strategy • Exploration targeting Cu rich mineralisation within a highly prospective tenement package • Proven exploration model delivering results – 48Mt Mineral Resource discovered from exploration methods looking within 250m from surface – Contained within <50% of t
Slide 19: Tritton Tenement Package: Brownfields Exploration
Tritton Tenement Package Brownfields Exploration within a highly endowed field Tritton Deposit Large mineralised system traced over 1.6km down plunge. Production commenced in 2005 and the deposit remains open down dip. Mineral Resource 9.9Mt @ 1.6% Cu for 155kt Cu metal1 Murrawombie Deposit Mining u
Slide 20: Tritton Tenement Package: Greenfields Exploration
Tritton Tenement Package Greenfields Exploration 2017 - 2019 • High power EM (MLTEM) surveys over Budgery to Avoca Tank & Kurrajong (detect mineralisation to 500m) – 80% complete. Multiple EM conductors detected – Initial drill program will commence in March Qtr 2018 targeting 2 MLTEM conductors • C
Slide 21: Torrens Project (Aeris 70%)
Torrens Project (Aeris 70%) 21
Slide 22: Torrens Project: Gawler Craton IOCG province
Torrens Project Gawler Craton – World class IOCG province • The Gawler Craton covers ~440,000km2 of central South Australia • Along the eastern margin the Olympic IOCG corridor is prospective for IOCG type deposits Hosts 3 world class IOCG deposits Olympic Dam 10,100Mt @ 0.8% Cu & 0.3 g/t Au Promine
Slide 23: Torrens Geophysical Footprint
Torrens Project Torrens Geophysical Footprint • Torrens Project contains multiple gravity anomalies • Largest gravity anomaly Torrens Project Gravity Olympic Dam Gravity Response 2 footprint 11km x 6.5km Response 1 • Olympic Dam gravity Olympic Dam – projected anomaly covers a smaller orebody outlin
Slide 24: Torrens Project: planned exploration
Torrens Project The way forward – planned exploration • Regional airborne gravity survey (FY2018 Q3) – Acquire a high quality & detailed dataset quickly without requiring ground access – Assist with interpreting underlying geology – Refine drill targets in-conjunction with magnetic & structural inte
Slide 25: Summary
SUMMARY 25
Slide 26: Investment rationale: Poised for growth
Investment rationale: Poised for growth Production - Established copper producer (27kt guidance for FY2018) Strong Foundations - Tritton Copper Operations performing with 5+ years Life of Mine Plan and exploration upside Experienced Board and management team - Proven track record with clear vi
Slide 27: Thank you
Thank you. CLEAR GROWTH OPPORTUNITIES « PROVEN TEAM ¢ SHARED VISION AY feris Aeris Resources Limited EMAIL info@aerisresources.com.au TEL +61 7 3034 6200 Level 2, HQ South Tower, FAX +61 7 30346290 520 Wickham Street, Fortitude Valley 4006 QLD, Australia
Slide 28: Appendices
Appendices A Aeris
Slide 29: Reported Mineral Resource: Tritton Tenement Package
Reported Mineral Resource Tritton Tenement Package (30 June 20171) Measured Indicated Inferred Total Resource Cut‐off Project Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (%Cu) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) Tritton 0.6
Slide 30: Reported Ore Reserve
Reported Ore Reserve Tritton Tenement Package (30 June 20171,2,3) Proven Probable Ore Reserve Cut‐off Project Type Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (%Cu) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) Tritton Underground 1.1 & 1.5 3,000 1.7 51 2,200 1.4 31 5,200
Slide 31: Reported Mineral Resource: Other Projects
Reported Mineral Resource Other Projects (30 June 2017 1,2) Measured Indicated Inferred Cut‐off Project Tonnes Cu grade Au grade Cu metal Au metal Tonnes Cu grade Au grade Cu metal Au metal Tonnes Cu grade Au grade Cu metal Au metal (g/t Au) (kt) (%) (g/t) (kt) (koz) (kt) (%) (g/t) (kt) (koz) (kt) (