Lunnon Metals Limited · ASX:LM8
Lunnon Metals — AMEC WA Investor Briefing (February 2024)
26 slides from Lunnon Metals's conference presentation, Feb 6, 2024
Slide 1: AMEC WA Investor Briefing - Investor Presentation
6 February 2024 AMEC WA INVESTOR BRIEFING - INVESTOR PRESENTATION Lunnon Metals Limited (ASX:LM8) is pleased to announce that Managing Director, Edmund Ainscough, will present to the AMEC WA Investor Briefing today at 3.30pm (Perth time). For personal use only A copy of the presentation to be delive
Slide 2: Lunnon Metals (LM8) - AMEC Investor Briefing
This slide is 100% editable. Lunnon Metals (LM8) For personal use only Adapt it to your needs and capture your audience’s “Form is temporary, attention. Class is permanent…” This slide is 100% editable. Adapt it to your needs and capture your audience’s Edmund Ainscough 6 February 2024 attention
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer 2 This Presentation has been prepared by employees of Lunnon Metals Ltd (“Lunnon”, “LM8” or “the Company”) on its behalf and is a summary only, and contains summary information about Lunnon and its activities, which is current as at the date of this Presentation (unless
Slide 4: Kambalda: premium location, strong balance sheet, Baker deposit
Kambalda $27M Cash 1 For personal use only Premium location Strong balance sheet Unrivalled discovery record Maintain discovery Significant High-grade Baker deposit Mineral Resource nickel sulphides short lead time 109,100 t of nickel metal 2 Resilient project economics Low pre-production capital Pr
Slide 5: Filling the Void: the next go to Australian nickel play
Filling the Void: the next “go to” Australian nickel play 4 Market Capitalisation of ASX Nickel Companies – 05/02/24* Premium location in Kambalda 3,021 3,000 High grade nickel sulphides For personal use only 2023 - Nickel Consolidation OZ Minerals (West Musgrave), 109,100 t of nickel metal in Miner
Slide 6: Nickel price (sentiment)
Nickel price (sentiment) 5 Ni price in US$/t or A$/t not significantly For personal use only different to June 2021 (IPO) Sentiment most definitely is! Enterprise Value 16/06/2021 (IPO) $28M 05/02/2024 now $33M EV/t Ni metal1 IPO Day 1 close $1,154/t2 Source/data: Ni price http://www.worldbank.org/e
Slide 7: Strategic Ownership of Critical Energy Transition Metal
Strategic Ownership of Critical Energy Transition Metal 6 2022/2023 : WSA, OZL and MCR all acquired For personal use only Spotlight on Ni & Kambalda Lunnon Metals Mineral Resource 109,100t* Ni metal, potential for further discoveries Potential regional process options^: • Kambalda Conc (Nickel West)
Slide 8: Strategic Position – Prolific Kambalda Nickel Belt
Strategic Position – Prolific Kambalda Nickel Belt 7 N Kambalda renowned for: • High-grade, high-quality concentrate For personal use only 10km 18,500t Ni metal • Low deleterious elements eg. arsenic @ 1.7%* • High Fe:MgO ratios desired by smelters • 1.6Mt nickel mined to date^ Kambalda LM8 only ASX
Slide 9: Unrivalled: Kambalda Nickel District
Unrivalled: Kambalda Nickel District 8 Past Nickel Production^: >440,000t nickel metal mined^ Pre-WMC sale vs Total Life of Mine to date after exit by WMC use only 4.3% 4.1% IGO – Long Shaft 3.9% 342 203 25% of all metal mined 3.7% MCR – Widgie/Nth Kamb For personal 3.5% Ni % 3.3% 101 PAN – Lanfranc
Slide 10: Baker-Foster: 3.0Mt @ 3.0%Ni
Baker-Foster: 3.0Mt @ 3.0%Ni (90,600t Ni)* 9 Significant existing infrastructure = low capital cost For personal use only Discovery success >77km drilling to date Baker deposit: discovery to Ore Reserve in ~ 2 years 70,100t* Ni metal added @ $0.24/lb Ni^ De-risking Existing Mining Leases, mi
Slide 11: De-risking Baker
De-risking Baker ~25km of drilling For personal use only 10 Refer to ASX announcement dated 22/01/2024
Slide 12: Baker's High Grade
For personal use only Baker’s High Grade 11 Refer to ASX announcement dated 22/01/2024
Slide 13: Baker PFS: Grade underpins robust project
Baker PFS: Grade underpins robust project = “Sprint Capacity” 12 Pre-Production Capex: $18.6M Payback: 0.7 Years* At May 2023 prices Sensitivity +/-10% For personal use only NPV8 Ni price or grade: +/-$35M Pre-tax: $164M Operating Cost: +/-$16M Post tax: $121M Pre-prod capex: +/-$2M Operating Costs
Slide 14: Silver Lake: Long South Gap – 2D and 3D seismic surveys
Silver Lake : Long South Gap – 2D and 3D seismic surveys 13 Thick succession of ultramafic For personal use only Significant shear/fault recorded Located potential channel Now use 3D to refine target Goal to locate Ni sulphide accumulation Refer to ASX announcements dated 20/11/2023 & 22/01/20
Slide 15: Gold in the Foster belt
1^ Gold in the Foster belt Lefroy Gold Plant 14 Gold Fields’ Victory- Defiance-Leviathan ~3.7Moz** • LM8 owns majority of gold rights at FBA • St Ives/Kambalda is a world-class gold For personal use only Lunnon Metals FBA boundary camp in its own right • Over 15Moz of past gold production Surface in
Slide 16: Kambalda's Amazing Potential
Kambalda’s Amazing Potential 15 Kambalda, still a World-Class Ni province Globally significant nickel camp For personal use only Unrivalled record of discovery Excellent local infrastructure & services Nickel supply chain certainty in Tier One jurisdiction Right assets, right location 4 hi
Slide 17: Appendices
This slide is 100% editable. For personal use only Adapt it to your needs and capture your audience’s attention. This slide is 100% editable. Appendices Adapt it to your needs and capture your audience’s attention.
Slide 18: Lunnon Metals Overview
Lunnon Metals Overview 17 Liam Twigger Non-Executive Chair Edmund Ainscough Managing Director Corporate structure (ASX: LM8) 5 Feb 2024 only Deborah Lord 217.8m $0.275 ~$60m Ian Junk For personal useBoard Shares on issue Share price Market cap Non-Executive Director Non-Executive Director Ashley McD
Slide 19: Uses of Nickel
Uses of Nickel 18 Nickel: Central to Decarbonisation • Nickel possesses physical and chemical properties which make it a valuable alloying material, particularly with chromium and other For personal use only metals, to produce stainless steel and heat-resisting steel. • Nickel is used in solar (1.3k
Slide 20: Important Notice – Competent Persons Statement
Important Notice 19 The information in this report that relates to nickel and gold geology, nickel Mineral Resources, Exploration Target and Competent Persons Exploration Results, is based on, and fairly represents, information and supporting documentation prepared by Mr. Aaro n Wehrle, who is a Mem
Slide 21: Mineral Resources and Ore Reserves Reporting
Mineral Resources and Ore Reserves Reporting 20 This presentation contains references to Lunnon’s Ore Reserves and Mineral Resources, which are shown in a detailed breakdown below. Mineral Resources* as at 15 January 2024 For personal use only * Mineral Resources are inclusive of Ore Reserves; total
Slide 22: Baker PFS Key Financial Assumptions
Baker PFS Key Financial Assumptions 21 Price or Rate Assumption Unit Assumption Value (as at 18 May 23) Nickel Price1 US$/t 24,000 21,334 For personal use only Copper Price1 US$/t 7,500 8,302 Cobalt Price1 US$/t 40,000 34,930 Platinum Price1 US$/oz 850 988 Palladium Price1 US$/oz 1,250 1,356 AUD:USD
Slide 23: Major Operating Costs
Major Operating MAJOR Costs OPERATING COSTS 22 FIRST PRINCIPLES, BENCHMARK & RFQ* APPROACH Unit Cost Total LOM Unit Cost Item For personal use only (A$/lb Ni contained A$ Million (A$/t Ore Mined) in concentrate)1 Mining 131.2 214 3.73 Processing (including Surface Haulage)2 46.1 75 1.31 General & Ad
Slide 24: PFS Financial Outcomes
PFS FINANCIAL PFS Financial Outcomes # OUTCOMES# 23 140,000 160,000 Measure Unit Outcome 120,000 140,000 Nickel Contained in Concentrate Ni t 15,970 120,000 Average Ni Sold Per Annum t Ni pa 4,100 For personal use only 100,000 Post tax Free Cash Flow (A$M) Cumulative Con Production (t) 100,000 Gross
Slide 25: Prior ASX Announcements
Prior ASX Announcements 24 This presentation contains references to Lunnon’s Exploration Results and previous announcements. The information in this presentation that relates to previous Exploration Results has been extracted from the following Lunnon ASX announcements, where full details including
Slide 26: Detailed Peer Data
Detailed Peer Data 25 Closing Market Shares on Price on Jurisdiction of Capitalisation Company ASX Code Nickel Type Development Stage Issue ASX Source of shares on issue# Assets ($M) For personal use only (A) 05/02/24 (A x B) (B) Nickel Industries Limited NIC Indonesia Nickel Laterite Operational 3,
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