Aurelia Metals Limited · ASX:AMI
Aurelia Metals — FY2019 Earnings Presentation
17 slides from Aurelia Metals's earnings presentation, Aug 23, 2019
Slide 1: FY19 Full Year Results Presentation
FY19 Full Year Results Presentation 23 August 2019 ASX Code: AMI
Slide 2: Forward looking statements
Forward looking statements 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 with respect to those
Slide 3: Corporate snapshot
Corporate snapshot ASX code: AMI Share price (22 August 2019) $0.515 Shares on issue 867.9m Major shareholders Market capitalisation A$447m Colonial First State 8.0% Australian Super 7.5% Board and management Van Eck 5.7% Exec Chairman and Acting Cobb Johnstone CEO Executive Director and Michael Men
Slide 4: Investment highlights
Investment highlights Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling success A$104m cash and no d
Slide 5: Key assets
Key assets Located in the highly endowed and productive Cobar Region Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Nyngan Cobar Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Federation Zn-Pb-Au-Cu-Ag Wonawinta Ag Mallee Bull Cu/Pb/Zn Project (Peel/C
Slide 6: Core strategy
Core strategy A mining-for-value approach 1▪ Optimise existing operations ▪ Increased development rates and Pb/Zn circuit upgrade ▪ Mine life extension and ongoing efficiencies at Hera 2▪ Focus on returns ▪ Margin over volume or commodity preference ▪ Accelerating access to higher margin material fo
Slide 7: FY19 financial results summary
FY19 financial results summary Investing in operational capacity and growth Performance Indicators Units FY19 FY18 Change ▪ Gold production up 21% to 117,521 oz at higher AISC of $1,045/oz Sales Revenue A$k 295,002 248,599 19% Profit Before Tax A$k 51,018 92,306 (45%) ▪ Net Profit After Tax of $36.0
Slide 8: Maiden dividend declared
FY19 financial results Maiden dividend declared ▪ Maiden 2.0 cents per share fully franked dividend declared ▪ 3.9% fully franked yield on a share price of 51.1c/share ▪ Payment reflects approximately 50% of net profit and net cash generation in FY19 ▪ $17.4M dividend to be paid on 2 October 2019 ▪
Slide 9: Increased production at good margin
FY19 financial results Increased production at good margin ▪ Hera: Gold production maintained. ▪ Plant throughput increased 15% to 468kt (FY18: 407kt) ▪ Gold and base metal grades reduced 17% and 30% respectively ▪ Lower base metal production and realised prices resulted in AISC increasing to $809/o
Slide 10: Key profit contributions
FY19 financial results Key profit contributions ▪ Increased revenue from higher Gold, Copper and Lead production (Gold at 3% higher prices, base metals at 9-13% lower prices). ▪ Inclusion of a full year of Peak operating costs (at lower but still strong EBITDA margin of 42%, relative to the prior pe
Slide 11: Revenue contribution
FY19 financial results Revenue contribution ▪ Gold revenue remains dominant (67% of total revenue). ▪ Relatively even by-product contribution from copper, lead and zinc. ▪ Proportion of base metal revenue expected to increase in FY20 production outlook. 11
Slide 12: Cash flow
FY19 financial results Cash flow ▪ Strong Hera cash flow of $55.1M, with lower sustaining capital but reduced base metal grades and realised prices. ▪ Peak cash flow strong $37.9M, despite large increase in sustaining mine development of $34M this year. ▪ Investment in growth of $22.9M (Peak Pb/Zn e
Slide 13: A look at the year ahead: FY20 by mine
A look at the year ahead: FY20 by mine Higher base metals output, lower gold production Peak Hera ▪ Gold production expected to be 52 – 59koz. ▪ Gold production expected to be 33 – 36koz ▪ AISC expected to be higher than FY19; lower Au grade and ▪ AISC expected to be lower than FY19; lower Au grade
Slide 14: A look at the year ahead: FY20 group level
A look at the year ahead: FY20 group level Investing in the business FY19 actual FY20 outlook Estimated FY20 Group AISC of A$1,050 to A$1,250/oz is based on reference Gold (koz) 118 85 – 95 base and silver metal prices equivalent to those used for the Company’s June 2019 Ore Reserves estimation: lea
Slide 15: A look at the year ahead: FY20 group level
A look at the year ahead: FY20 group level D&A and impact of AASB16 - Leases ▪ D&A (Depreciation & Amortisation) in FY19 was $51.9M ▪ Based on asset values and planned mining and production levels, D&A for fixed assets in FY20 is expected to be 10-20% higher (excluding AASB 16 Leases impact) ▪ AASB1
Slide 16: A look further ahead
A look further ahead FY21 and beyond ▪ Annual throughput at Peak in FY21 expected to be approaching nameplate 800ktpa capacity. ▪ Accelerated UG development expected to deliver access to the base of Kairos towards end of FY20; strong potential for prioritisation and mining of high margin tonnes from
Slide 17: Corporate information
CORPORATE INFORMATION: Aurelia Metals Limited ABN 37 108 476 384 Email: office@ ASX Code: AMI Website: www.aureliametals.com.au FY19 financial results Registered Office: Level 2, 60-62 McNamara St Orange NSW aureliametals.com.au Tel: +61 (0)2 6363 5200 For further information please Share Registry: