Slide 1: FY2021 Full Year Financial Results Presentation (ASX announcement)
ASX ANNOUNCEMENT Wednesday, 23 February 2022 FY2021 FULL YEAR FINANCIAL RESULTS PRESENTATION Accompanying this release is a presentation summarising the FY2021 Full Year Financial Results of 29Metals Limited (‘29Metals’ or, the ‘Company’) and its controlled entities. The information in the accompany
Slide 2: 29Metals Limited FY2021 Financial Results
29Metals Limited FY2021 Financial Results Year ended 31 December 2021
Slide 3: Important information
Important information FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements and comments about future events, including in relation to 29Metals’ businesses, plans and strategies. Forward looking statements can generally be identified by the use of words such as, “expect”,
Slide 4: Important information: Non-IFRS financial information
Important information NON-IFRS FINANCIAL INFORMATION This presentation contains certain information, such as C1 Costs, AISC, EBITDA, Adjusted NPAT, Adjusted EPS, Drawn Debt, Net Drawn Debt and Cu-eq, that is not recognised under Australian Accounting Standards and is classified as ‘non-IFRS financia
Slide 5: Highlights
Highlights
Slide 6: FY2021 Financial Results Highlights
FY2021 Financial Results Highlights Operating and financial performance create the foundation for growth Health & safety Cu-eq3 production AISC3 Operated safely 68kt Cu-eq3, 4 US$3.41/lb TRIFR1 rate of 12.1 Exceeded Pro forma Forecast Improvement in H2-2021; against cost and LTIFR2 of 0.7 labour pre
Slide 7: FY2021 Statutory Results
FY2021 Statutory Results
Slide 8: FY2021 Basis of Preparation
FY2021 Basis of Preparation Statutory financial results Pro forma1 Golden Grove Group determined as the acquiring entity for accounting Prepared as if the following happened prior to 1 January 2020: purposes, effective 2 July 2021 The restructuring and IPO Transactions undertaken to form the 29Met
Slide 9: FY2021 Statutory Results
FY2021 Statutory Results FY2021 statutory revenue1 and EBITDA2 growth from inclusion of Capricorn Copper FY2021 result reflects inclusion of six months of Capricorn Copper Group results ‒ Driving increases in ore mined, ore milled, and copper production in FY2021 Revenue1 increased ~38% on the p
Slide 10: Net Drawn Debt
Net Drawn Debt1 Low leverage creates foundation for growth Refinance of debt facilities completed in FY2021 – greater flexibility at a lower cost of funding Low leverage with Net Drawn Debt1 to Pro forma EBITDA1, 2 of 0.01x Strong cash position to support growth ambitions and future returns to
Slide 11: Hedging Position
Hedging Position Low hedge volumes provides exposure to commodity price outlook FY2021 copper hedges settled out of IPO proceeds Remaining copper hedges to settle in FY2022 ― 7,200 tonnes @ $8,990/tonne1, fair value2 liability of c.$31.3m ― No copper hedges in place beyond the Sep-Qtr in FY2022
Slide 12: FY2021 Pro forma Results
FY2021 Pro forma Results
Slide 13: FY2021 Pro Forma Results
FY2021 Pro Forma Results FY2021 Pro forma1 revenue2 and EBITDA3 outperformed Pro forma Forecast Increases in ore mined and copper production in FY2021 relative to Pro forma Forecast ~7% increase in revenue2 reflects the impact of higher copper sales, partially offset by lower by-product metals
Slide 14: FY2021 Metal Production and Sales Mix
FY2021 Metal Production and Sales Mix Strong copper production and pricing offsetting lower by-product production Sales mix (FY2021A)1, 2 Metal production (FY2021A vs FY2021P)1 Golden Grove Copper (kt) Zinc (kt) Silver, 7% 55 41 48 37 25 20 Lead, Copper, 55 Group 48 Zinc, 1% 43% 35% 16 17 Silver, 5%
Slide 15: FY2021 Strong Financial Metrics
FY2021 Strong Financial Metrics Strong group results compared to FY2021 Pro forma Forecast Group Results Overview 1 Financials Unit FY2021A FY2021P VAR Revenue2 Golden Grove Revenue2 Golden Grove $m $420 $433 ($13) (3%) Primarily lower zinc, gold and silver production Capricorn Copper $m $290 $232 $
Slide 16: FY2021 Financial Performance
FY2021 Financial Performance Pro forma EBITDA1 outperformance driven by higher revenue partly offset by lower by-product metals Pro forma EBITDA1 ($m) 45 18 7 5 6 1 25 Higher revenue Reallocation of Provision for Realised FX gains as costs from site doubtful debts a result of the services Higher ROM
Slide 17: Guidance
C2025 C2026 C2027 C2028 C2029 Guidance Total Cashflow (Upside Case) A$m Total Cashflow (Base Case) A$m
Slide 18: Guidance: FY2022 Group guidance
Guidance FY2022 Group guidance Group guidance1,2 Unit FY2021A3 FY2022 guidance Production4 Copper kt 41 39 – 46 Zinc kt 48 55 – 65 Gold koz 36 27 – 34 Overall, expecting year-on-year improvement in production output in 2022 Silver koz 1,766 1,370 – 1,640 Lead kt 2 2–3 Costs5 Mining6 $m $279 289 – 33
Slide 19: Growth
C2025 C2026 C2027 C2028 C2029 Growth Total Cashflow (Upside Case) A$m Total Cashflow (Base Case) A$m
Slide 20: Growth Strategy
Growth Strategy Focused on executing operating plan and delivering organic growth FY2021 Delivered FY2022 Focus1 Productivity Deliver operating plan Esperanza South self-propagation / Transition to increased stope intervals in breakthrough at Capricorn Copper Xantho Extended (‘XE’) of 45m Execut
Slide 21: Golden Grove Long-Section
Golden Grove Long-Section1 In-mine and near-mine growth opportunities Regional exploration upside Grassi & Gossan Valley2 Gossan Hill2 Scuddles2 Scuddles Hoist Tryall Scuddles – Gossan Valley GG4 Grassi 1,100m 1,400m Cervantes c.0.6km3 1,515m Xantho Amity Extended Xantho Organic Growth Target Areas
Slide 22: Capricorn Copper & Redhill
Capricorn Copper & Redhill In-mine and near-mine growth opportunities Capricorn Copper Redhill High quality targets on large, underexplored lease and Tenement package comprises an additional 70 concessions tenement package outside the Cutters area covering an area of 195km2 Planning and preparation
Slide 23: Appendix
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Slide 24: FY2021 Key Statutory Statistics
FY2021 Key Statutory Statistics Adjusted NPAT1 reflecting movements in derivatives and FX offsetting increase in gross profit Adjusted NPAT1 Removal of one-off income tax benefits associated with the restructure Combination of losses in relation to Tax assets copper hedges at recognised in relation
Slide 25: Financials Metrics Guidance
Financials Metrics Guidance1 FY2022 Unit FY2021A2 Commentary guidance Depreciation & Amortisation3 $m $100 135 – 155 Reflects inclusion of a full year of Capricorn Copper results in FY2022 and acquisition accounting Mine development amortisation on units of production (‘UOP’) basis over estimate
Slide 26: Production Guidance
Production Guidance1 Improvement in metal production in FY2022 at both operating mines Golden Grove Capricorn Copper Guidance1 Unit FY2021A2 FY2022 guidance Guidance1 Unit FY2021A2 FY2022 guidance 3 3 Production Production Ore mined kt 1,525 1,450 – 1,650 Ore mined kt 1,772 1,600 – 1,850 Ore milled
Slide 27: Definitions of Non-IFRS Financial Information Metrics
Definitions of Non-IFRS Financial Information Metrics METRIC DEFINITION Adjusted EPS is adjusted earnings per share, and is calculated using adjusted NPAT divided by the weighting average number of ordinary shares outstanding for the period. is net profit after tax attributable to members, adjusted
Slide 28: Reconciliation of Non-IFRS Financial Information Metrics
Reconciliation of Non-IFRS Financial Information Metrics Reconciliation of Adjusted NPAT to NPAT Unit FY2021A FY2021P VAR NPAT $m $121 – $121 Add: Transaction costs (post-tax) $m $39 – $39 Less: Income tax benefit associated with the IPO transactions $m ($119) – ($119) Add: Increase in net assets at
Slide 29: Unlocking value
Unlocking value to empower the future. 28