Black Cat Syndicate Ltd. · ASX:BC8
Black Cat Syndicate — Investor Presentation (June 2024)
39 slides from Black Cat Syndicate's investor presentation, June 2024
Slide 1: Positioned for Production
Positioned for Production June 2024
Slide 2: Disclaimer, distribution and disclosure
Disclaimer, distribution and disclosure Disclaimer and not for US distribution Competent Person’s Statements This presentation includes forward-looking statements including, but not limited to, comments regarding the timing The information in this announcement that relates to geology, exploration re
Slide 3: Corporate overview
Corporate overview Corporate Information (Post June 2024 Placement) Sequential development strategy to >150,000oz pa production Shares on issue 442M Options & Performance Rights 34M Market capitalisation @ $0.27 (post con note conversion) ~$130M Production from two operations expected to commence th
Slide 4: Successful Placement, Sources and Uses of Funds
Successful Placement, Sources and Uses of Funds Placement Terms Sources $M Placement (before costs) 36.0 $36M two-tranche placement of 133.3M new fully paid ordinary shares at $0.27 per Expected Secured Debt1 (drawn post July 2024) 15.0 share (12% discount to 30-day VWAP), comprising: Expected Secur
Slide 5: Low capital, internal funding to build substantial value
Low capital, internal funding to build substantial value Operation Paulsens Kal East Coyote Strategy Land Size ~1,910 km2 ~1,070 km2 ~940 km2 >3,900 km2 - prime discovery potential Resources 0.55Moz @ 4.0g/t Au 1.3Moz @ 2.1g/t Au 0.65Moz @ 5.5g/t Au 2.5Moz @ 2.9g/t Au (growing) Initial Production Ta
Slide 6: Gold price sensitivity matrix
Gold price sensitivity matrix • Announced studies at reported gold sensitivities • Paulsens internal operating plan and high-grade stockpile strategy has potential to further increase cashflow Gold Price $ 2,900 $ 3,000 $ 3,100 $ 3,200 $ 3,300 $ 3,400 $ 3,500 $ 3,600 $ 3,700 $ 3,800 $ 3,900 $ 4,00
Slide 7: Proven track record of Resource growth
Proven track record of Resource growth Acquired & discovered >2.5Moz; averaging >400kozpa growth 4000000 Paulsens Kal East Coyote Discovered Acquired 3500000 Acquired IPO Jan Acquired May 2024 Growth May 2024 Growth May 2024 Growth Jun 2022 2018 Jun 2022 Resource 231k oz 548k oz 137% - 1,294k oz 210
Slide 8: Production re-rating potential
Production re-rating potential • Average enterprise value (“EV”) per production ounce for Australian gold producers is ~$6,100/oz • Notional EV’s based on peer average: • 50koz @ $6,100 = $305M • 100koz @ $6,100 = $610M • 150koz @ $6,100 = $915M $16,000 $14,000 $12,000 Enterprise Value / Annual Prod
Slide 9: High confidence secured debt
High confidence secured debt • Leeuwin Capital Partners sourcing secured debt of $30M1 Expected • Paulsens and Kal East to offer as primary security Facility Amount $30M • High confidence of secured debt being available Term 12-36 months Interest rate (not all-in) Commensurate with market • Approved
Slide 10: Paulsens Gold Operation
1 PAULSENS GOLD OPERATION Restart to Drive Growth
Slide 11: Paulsens - cornerstone operation to drive cashflow & growth
Paulsens - cornerstone operation to drive cashflow & growth ~1,910km2 of highly prospective ground Well maintained 450ktpa processing facility Dewatered and ventilated underground mine One of Australia’s highest-grade deposits - 406koz @ 9.5g/t1 Only gold processing facility within 400km Robust rest
Slide 12: Paulsens - key study outcomes
Paulsens - key study outcomes • Substantial mineralisation excluded from May 2024 Restart Study 1 May 2024 Restart Study - Highlights • High-grade growing Resource with significant mineralisation not yet included 548koz @ 4.0g/t Au Resource • Mine plan - top 10 highest head grades in Australia2 • Lo
Slide 13: Paulsens - more than just one Ore source
Paulsens - more than just one Ore source • Main Zone - thick quartz & sulphide shear zone • > 2.7km plunge (open) • 1Moz @ ~1,000oz/vm (historical production) Mechanised mining ~85% • 120vm extension identified Selective mining ~15% • Extensive unmined opportunities adjacent to decline • 51% of base
Slide 14: Paulsens - Main Zone - significant upside
Paulsens - Main Zone - significant upside • Limited drilling in 2023 extended the Main Zone Resource ~170m down plunge • Decline development of 120m vertical costed into May 2024 Restart Study1 • JORC Exploration Target for the Main Zone Extension, based on drilling, of 150-260kt @ 9-12g/t Au for 50
Slide 15: Paulsens - Gabbro Veins - untapped potential
Paulsens - Gabbro Veins - untapped potential • Drilling in 2023 began to unlock the significant gold endowment of the Gabbro Veins • Extensive high-grade vein arrays • Easily accessible immediately adjacent to the existing decline 1 2 Refer to BC8 ASX Announcement 23/03/23 & 08/05/24 ASX: BC8 | Jun
Slide 16: Paulsens - “there’s gold everywhere”
Paulsens - “there’s gold everywhere” • Selective mining of numerous developed, high-grade veins; examples include: • 5.00m @ 10.20g/t Au • 1.50m @ 53.60g/t Au • 4.50m @ 23.35g/t Au • 2.70m @ 23.00g/t Au • 1.70m @ 26.40g/t Au • 1.40m @ 34.31g/t Au • 1.00m @ 25.89g/t Au • 0.50m @ 139.30g/t Au • 1.00m
Slide 17: Paulsens - high-grade stockpile strategy
Paulsens - high-grade stockpile strategy Strategy to build high-grade stockpile for immediate processing post-commissioning, targeting: • areas that contain high-grade drilling; and • areas that have been developed, sampled, but never mined. Refer to BC8 ASX Announcement 19/04/22, 13/11/23 & 29/05/2
Slide 18: Paulsens - the next year
Paulsens - the next year Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Mining - Selective Mining - Selective and Mechanised >>> Processing - Refurbishment Processing - Commissioning Processing - Production >>> • High-grade stockpile strategy: mining of developed, high-grade v
Slide 19: Paulsens - refurbishment underway
Paulsens - refurbishment underway Low restart risk: • Established infrastructure • Key management in place • Current activities: • Full assessment to minimise cost, time and risk; • Repair of items that are readily fixable; • Ordering long lead time items; • Consolidate/catalogue stores; and • Prepa
Slide 20: Paulsens - +1Moz deposits are not formed in isolation
Paulsens - +1Moz deposits are not formed in isolation • Paulsens gold endowment ~1.4Moz @ 7.5g/t Au • Limited regional drilling; priority targets include: • Belvedere (mine extension) • Mt Clement (Sb-Cu-Pb-Au-Ag) • Big Sarah (undrilled) • Electric Dingo (open Resource) • A JORC Exploration Target1
Slide 21: Kal East Gold Project
2 KAL EAST GOLD PROJECT 1.3Moz Resource in Australia’s premier gold mining region 21
Slide 22: Kal East - development ready with upside
Kal East - development ready with upside 3rd largest holding (+1,000km2) in premier gold mining region 1.3Moz @ 2.1g/t Au Resource, within 50km of Kalgoorlie May 2024 Study Update - $401M cashflow @ $3,500/oz Turn-key funding, development and processing of Myhree from June 2024 800ktpa processing fa
Slide 23: Kal East - key study outcomes
Kal East - key study outcomes • Base case production target of 381koz over 7 years May 2024 PFS Study Update - Highlights • 533koz @ 1.8g/t Au Resources not yet considered • All Resources open 1,294koz @ 2.1g/t Au Total Resource • Ore Reserves - 64% of production 5.5Mt Ore Mined • AISC in bottom thi
Slide 24: Kal East - Myhree - turn-key funding, development & processing
Kal East - Myhree - turn-key funding, development & processing • Turn-key funding and development: • 52koz @ 2.2g/t Au (Ore Reserve) • Managed by Mineral Mining Services (MMS) • MMS to provide all funding, people and equipment • Processing commences Sep 2024 quarter: • Ore purchase agreement with Pa
Slide 25: Kal East – significant regional discovery potential
Kal East – significant regional discovery potential All Resources remain open Underground mining will follow open pits Myhree Mining Centre - 259koz @ 2.8 g/t Au • Mining commencing June/July 2024 • Resources remain open • High-grades at depth: • 4.6m @ 11.00 g/t from 185m Majestic Mining Centre - 5
Slide 26: Coyote Gold Operation
3 COYOTE GOLD OPERATION High-grade gold with scale and exploration potential 26
Slide 27: Coyote - high-grade Resource - untested multi-metal potential
Coyote - high-grade Resource - untested multi-metal potential 940km2 of highly prospective ground One of Australia’s highest-grade underground deposits - 356koz @ 14.6g/t Au Scoping Study - $295M cashflow @ $3,500/oz Installed processing facility and camp to be expanded with owned mill Only gold pro
Slide 28: Coyote - key study outcomes
Coyote - key study outcomes • Updated robust +5-year base case May 2024 Scoping Study Highlights • One of the highest underground mined grades in Australia (@ 5.4g/t Au) 645koz @ 5.5g/t • 307koz @ 4.7g/t Au Resources not yet considered Total Resource Au • Growing mine life 1.7Mt Ore Mined • AISC in
Slide 29: Coyote Central - one of Australia’s highest-grade deposits
Coyote Central - one of Australia’s highest-grade deposits Open Pit 49koz @ 2.8g/t Au 102koz @ 11.4g/t Au excluded from study Underground 125koz @ 5.4g/t Au Refer to BC8 ASX Announcement 16/01/23, 15/05/24 and Resource tables in the Appendices 29 ASX: BC8 | Jun 2024
Slide 30: Investment summary and upcoming catalysts
Investment summary and upcoming catalysts • Targeting first gold at Paulsens in December 2024 • High-grade stockpile strategy at Paulsens to derisk startup and accelerate cashflow • Potential for ~100,000oz by end of 2025 (Paulsens + Myhree)1 • Sequential development strategy to >150,000oz pa • One
Slide 31: Thank you
Thank you Level 3, 52 Kings Park Road, West Perth WA 6005 PO Box 184, West Perth WA 6872 +61 (0)458 007 713 admin@bc8.com.au www.bc8.com.au ABN 63 620 896 282 31
Slide 32: Proforma capital structure
Proforma capital structure Pro-Forma Capital Structure* Fully Paid Shares Options / Performance Rights Total Securities Fully Paid Ordinary Shares 441,886,778 - 441,886,778 Listed Options @ $0.3375 expiring 14 Nov 2025 - 18,444,455 18,444,455 Unlisted Options @ $1.20 expiring 21 Jul 2024 - 129,000 1
Slide 33: Sundy Funding Package
Sundy Funding Package Sundy Funding Package1 Price Shares Amount Comments FIRB approval required to convert BC8 can repay prior to conversion If converted, shares escrowed until Sep 2027 Convertible Note Facility (@ 10%) – Received $0.225 40,000,000 $ 9,000,000 No voting rights unless converted Can
Slide 34: Gold Resource Summary
Gold Resource Summary Measured Resource Indicated Resource Inferred Resource Total Resource Mining Centre Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) Kal Ea
Slide 35: Polymetallic Resources Summary
Polymetallic Resources Summary Resource Tonnes Zone Au (g/t) Cu (%) Sb (%) Ag (g/t) Pb (%) Au (koz) Cu (kt) Sb (kt) Ag (koz) Pb (kt) Category (‘000) Inferred 415 - 0.4 0.2 76.9 - * 1.6 0.7 1,026 - Western Total 415 - 0.4 0.2 76.9 - * 1.6 0.7 1,026 - Inferred 532 - - - - - * - - - - Central Total 532
Slide 36: Ore Reserves
Ore Reserves Proven Reserves Probable Reserves Total Reserves Operation Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) Kal East Open Pit - - - 3,288 1.8 193 3,288 1.8 193 Underground - - - 437 3.6 50 437 3.
Slide 37: Paulsens Exploration Target
Paulsens Exploration Target Total Reserves Paulsens Area Exploration Target Catergory Tonnes Grade Metal (‘000s) (g/t Au) (‘000s oz) Upper Footwall Gabbro Zone Exploration Target 450 - 620 7.0 - 10.0 100 - 200 Developed, high-grade veins Exploration Target 400 - 520 9.0 - 12.0 100 - 200 Near Mine Ma
Slide 38: Long Term Incentive – Employee Performance Rights
Long Term Incentive – Employee Performance Rights The performance rights are designed as Long-Term Incentives (“LTI’s”) to align the Senior Leadership Team with the creation of shareholder value over the long term and form part of the Company’s remuneration and retention strategy. Key pillars are in
Slide 39: Supporting Information
Supporting Information Market Resources Price Cash Debt EV Development Stage Reference (ASX Announcement) Company Code Cap Project Location Commodity Au Only AuEq (A$) (A$M) (A$M) (A$M) Completed (A$M) Moz g/t Moz g/t Financials Resource Antipa Minerals Limited AZY 0.013 $54 $6 $0 $48 Minyari Dome (
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