29metals Limited · ASX:29M
29metals — Investor Presentation (December 2024)
62 slides from 29metals's investor presentation, Dec 3, 2024
Slide 1: Debt Refinancing & $180M Equity Raising
Debt Refinancing & $180M Equity Raising INVESTOR PRESENTATION 3 December 2024 NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 2: Important information
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important information This investor presentation (‘Presentation’) is dated 3 December 2024 and has been prepared by 29Metals Limited (ABN 95 650 096 094) (the ‘Company’) in relation to an offer of shares in the Company (‘New Shares’) by way of a full
Slide 3: Important information
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important information FINANCIAL INFORMATION All financial information in this Presentation is in Australian dollars ($ or AUD) unless otherwise stated. This Presentation includes certain pro forma financial information. Any such pro forma historical
Slide 4: Important information
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important information EXPLORATION RESULTS, AND MINERAL RESOURCES AND ORE RESERVES ESTIMATES As an Australian public company with securities listed on the ASX, 29Metals is subject to Australian disclosure requirements and standards, including the requ
Slide 5: Equity Raising Overview
Equity Raising Overview NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 6: Offering to facilitate balance sheet reset and fully fund Gossan Valley to first ore
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Offering to facilitate balance sheet reset and fully fund1 Gossan Valley to first ore $180 million Offer enables refinancing of senior debt and optimisation of Golden Grove’s life-of-mine plan via funding of Gossan Valley ✓ Senior debt refinancing –
Slide 7: 29Metals investment thesis
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES 29Metals investment thesis Copper – a critical future facing metal to enable the global transition towards electrification Capricorn Copper (Production Suspended1) Large copper endowments Group Mineral Resources estimates2: 128Mt, 2.3Mt Contained Cop
Slide 8: Comprehensive funding plan
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Comprehensive funding plan Proceeds to enable balance sheet reset via refinancing of senior debt, and to fully fund1 Gossan Valley to first ore ▪ 29Metals has launched a $180m underwritten institutional placement and underwritten 1 for 1.43 pro-rata
Slide 9: Company update
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Company update Xantho Extended enabling investment now largely complete, Gossan Valley the next logical development option to optimise Golden Grove for the longer term. Water level reductions remain the immediate term focus at Capricorn Copper ▪ Near
Slide 10: Sources and Uses of Funds
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Sources and Uses of Funds Proceeds to enable balance sheet reset via refinancing of senior debt, and to fully fund1 Gossan Valley to first ore Sources of Funds $ million Cash and undrawn debt facilities2 104 Equity Raising 180 Total sources of funds
Slide 11: Golden Grove Outlook
Golden Grove Outlook NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 12: Golden Grove
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Golden Grove Long life, high-grade copper, zinc and precious metals mining operation in tier 1 location ✓ World-class, long-life VMS System ✓ Production growth levers ✓ Exploration upside ▪ 30+ year history, first commercial production 1990 1▪ Xantho
Slide 13: Mining sequence and production outlook
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Mining sequence and production outlook Outlook informed by current life-of-mine plan, incorporating the current Resource model and productivities informed by recent performance Key updates versus the last comparable outlook, provided in May 20231, in
Slide 14: Gossan Valley
Gossan Valley NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 15: Gossan Valley 2024 Feasibility Study highlights
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley 2024 Feasibility Study highlights Optimisation of Golden Grove life-of-mine plan; potential to extend Gossan Valley Mineral Resources, which remain open at depth Golden Grove Mine Life Optimisation Economics Production / Capital Macro A
Slide 16: Gossan Valley the next logical development option at Golden Grove
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley the next logical development option at Golden Grove Xantho Extended enabling investment now largely complete, Gossan Valley the next logical development option to optimise the asset for the longer term Golden Grove Ore Reserves1: 5.0% X
Slide 17: Gossan Valley to displace Scuddles with higher grade ore
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley to displace Scuddles with higher grade ore Gossan Valley is planned to enhance milled head-grades and optimise Golden Grove’s life-of-mine plan Indicative Golden Grove mine sequencing1 Ore Reserves2 grades (Cu-eq3) + 1% Cu-eq3 Xantho Ex
Slide 18: Gossan Valley an independent mining front
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley an independent mining front Production flexibility provided by an independent, relatively shallow, mining front Gossan Valley Gossan Hill Scuddles ✓ Additional production front Grassi ✓ Conteville Relatively shallow ore source Gossan Va
Slide 19: Potential to extend Gossan Valley Mineral Resources, which remain open at depth
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Potential to extend Gossan Valley Mineral Resources, which remain open at depth Current Gossan Valley Mineral Resources sufficient to support investment decision – Mineral Resource expansion to be targeted with underground drilling upon development G
Slide 20: Gossan Valley 2024 Feasibility Study outcomes
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley 2024 Feasibility Study outcomes 2024 Feasibility Study Update is a continuation of feasibility work completed over past 3 years 2024 Feasibility Study Mine Design Metric Units 2024 Feasibility Study Operating and financial Average minin
Slide 21: Operating and financial profile
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Operating and financial profile Optimised production profile from 2024 Feasibility Update Ore Mined1: Mineral Resources Classification Copper metal mined1 (kt) Zinc metal mined1 (kt) 2024 Study 2024 Study 6 2022 Study 2022 Study 2024 Study: Indicated
Slide 22: Schedule and project milestones
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Schedule and project milestones Long-lead commitments in Q4-2024 ahead of expected Mining Proposal approval in Q1-2025 ▪ Approvals process is well advanced to support the development of the Gossan Valley Mine. ▪ A Mining Proposal and Mine Closure Pla
Slide 23: Capricorn Copper
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Capricorn Copper NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 24: Potential value to be unlocked at Capricorn Copper
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Potential value to be unlocked at Capricorn Copper Large Mineral Resources1 (64.8Mt at 1.8% Cu), established infrastructure and ~1,900km2 land position in prolific Mt. Isa inlier province ✓ Substantial Mineral Resources1 with potential for in-mine an
Slide 25: Capricorn Copper production restart imperatives
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Capricorn Copper production restart imperatives Immediate focus on short term water reduction Imperative Objective Comments Immediate priority • Controlled release of treated water is required to rebase site water levels in the nearer term and to eff
Slide 26: Capricorn Copper site water inventory summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Capricorn Copper1 Site water inventory summary Mill Creek Workshop Area 0.3GL water reductions from mechanical and natural evaporation in Dam (MCD) 4 months to end of October 2024 Gunpowder Creek Ponds Site water Inventory 31 October 2024: 3&4 0.3GL
Slide 27: Step change in 2024/2025 wet season preparedness versus prior wet season
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Step change in 2024/2025 wet season preparedness versus prior wet season Wet season preparedness enhanced by investment in water treatment capability through 2024 and receipt of an EEO1, which removes limits (that exist under the current EA2) on the
Slide 28: Significant environmental compliance and water management investment in 2024
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Significant environmental compliance and water management investment in 2024 Reduction of cash outflows at Capricorn Copper are expected into 2025 as environmental compliance and water management capital projects are completed, and operating costs ar
Slide 29: Significant reduction in cash outflows planned in 2025
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Significant reduction in cash outflows planned in 2025 Reduction of cash outflows expected into 2025 as environmental compliance and water management capital projects are completed, and operating costs are reduced to reflect lower steady state activi
Slide 30: Unlocking the value of Capricorn Copper
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Unlocking the value of Capricorn Copper Capricorn Copper offers a unique combination of meaningful scale and a high-grade copper Mineral Resources in the well-established Mt Isa inlier Benchmarking Capricorn Copper against the Australian Copper Devel
Slide 31: Debt refinancing and Equity Raising timetable
Debt refinancing and Equity Raising timetable NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 32: Senior debt refinancing
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Senior debt refinancing Refinancing reduces debt levels, extends maturities and supports Gossan Valley investment to optimise Golden Grove’s life-of-mine plan Existing Refinanced Debt amortisation (US$ million)1 Debt amortisation (US$ million)1 ✓ US$
Slide 33: Pro Forma Financial Position
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Pro Forma Financial Position Refinanced senior secured debt deleverages the balance sheet, improves near-term liquidity and supports investment in Gossan Valley Metric Unit Current Equity Raising6 Pro Forma No. of Ordinary Shares1 M 702 667 1,369 Mar
Slide 34: Equity Raising Timetable
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Equity Raising Timetable Refinanced senior secured debt deleverages the balance sheet, improves near-term liquidity and supports investment in Gossan Valley Event Date Trading halt and announcement of the Offer Tuesday, 3 December 2024 Placement and
Slide 35: Appendices
Appendices NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 36: Appendix A: Gossan Valley 2022 Feasibility Study vs 2024 Feasibility Study update
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix A: Gossan Valley 2022 Feasibility Study1 vs 2024 Feasibility Study update 2024 Feasibility Study Update is a continuation of feasibility work completed over past 3 years Operating and financial Metric Units 2022 Feasibility Study 2024 Feasib
Slide 37: Appendix B: 2023 Group Mineral Resources and Ore Reserves Estimates
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B 2023 Group Mineral Resources and Ore Reserves Estimates 1 Mineral Resources Mineral Resources estimates at the Group level are the aggregation of 31 December 2023 Mineral Resources estimates for Golden Grove, Capricorn Copper and Redhill 2
Slide 38: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Group Mineral Resources and Ore Reserves Estimates 1 Ore Reserves Ore Reserves estimates at the Group level are the aggregation of the 31 December 2023 Ore Reserves estimates for Golden Grove and Capricorn Copper 2. Ore Re
Slide 39: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Golden Grove Mineral Resource 1 The 31 December 2023 Mineral Resources estimates for Golden Grove are set out in the table below and incorporate the results of resource conversion, resource extension and grade control dril
Slide 40: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Golden Grove Mineral Resource 1 The 31 December 2023 Mineral Resources estimates for Golden Grove are set out in the table below and incorporate the results of resource conversion, resource extension and grade control dril
Slide 41: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Golden Grove Ore Reserves 1 The 31 December 2023 Ore Reserves estimates for Golden Grove are set out below and incorporate changes to the Golden Grove Mineral Resources estimates, the inclusion of Cervantes below the exist
Slide 42: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Capricorn Copper Mineral Resources 1 The 31 December 2023 Mineral Resources estimates for Capricorn Copper are set out in the table below and incorporate the results of additional resource conversion, resource extension an
Slide 43: Appendix B (continued)
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B (continued) 2023 Capricorn Copper Ore Reserves 1 The 31 December 2023 Ore Reserves estimates for Capricorn Copper are set out below and incorporate changes to the Capricorn Copper Mineral Resources estimates, depletion for mining and proce
Slide 44: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks 29Metals is subject to a variety of risk factors. This section discusses some of the key risks associated with an investment in New Shares in 29Metals. Some of these are specific to its business activities, while others are of
Slide 45: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks C. Underground mining risks 29Metals undertakes mining operations by applying underground mining techniques. Underground mining operations are subject to various risks, including geotechnical risks and seismicity, factors affec
Slide 46: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks F. Regulatory compliance 29Metals’ business activities are subject to a complex regulatory compliance framework, including regulation covering environmental matters, native title, mining permitting and licensing, employment, wo
Slide 47: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks J. Reliance on contractual counterparties 29Metals is reliant upon contractual counterparties, both in the delivery of 29Metals’ operating and business plans, and the sale of 29Metals’ mineral concentrate products. Contractors
Slide 48: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks As described in the Company’s 2023 Annual Financial Report and 2024 Half Year Financial Report, 29Metals has been granted certain covenant waivers. If, for any reason, 29Metals requires further covenant waivers in the future th
Slide 49: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks Q. Mineral exploration and project development 29Metals aims to grow its production and extend mine-life through its pipeline of organic growth opportunities. The time between discovery of economically viable deposits to commer
Slide 50: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks U. Future rehabilitation liabilities 29Metals is required to include provisions in its financial statements for future rehabilitation and remediation costs. Estimating the likely quantum of such costs involves making assumption
Slide 51: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks General Investment Risks A. Share market conditions The value of quoted securities is subject to fluctuations in response to market forces, which cannot be controlled or accurately predicted, and prevailing market sentiment and
Slide 52: Appendix C - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - Key Risks E. Litigation and dispute risks 29Metals is exposed to possible litigation risks including civil liability claims, criminal claims, environmental and native title matters, health and safety matters, workers’ compensation claims
Slide 53: Appendix D - International Offer Restrictions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix D - International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to an
Slide 54: Appendix D - International Offer Restrictions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix D - International Offer Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accor
Slide 55: Appendix E - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix E - Underwriting Agreement Summary Macquarie Capital (Australia) Limited (ABN 79 123 199 548) (Macquarie) and Jarden Australia Pty Ltd (ABN 33 608 611 687) (Jarden) (Joint Lead Managers) are acting as Joint Lead Managers and underwriters to
Slide 56: Appendix E - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix E - Underwriting Agreement Summary p) 29Metals, or a member of the 29Metals group, becomes insolvent; q) there is an event or occurrence, including any statute, order, rule, regulation, directive or request of any government agency which mak
Slide 57: Appendix E - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix E - Underwriting Agreement Summary In some of the cases above, a Joint Lead Manager may only terminate its obligations under the Underwriting Agreement if it has reasonable grounds to believe, and does believe, that any of the following even
Slide 58: Appendix F - Benchmarking of Peer Mineral Resources Estimates
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix F Benchmarking of Peer Mineral Resources Estimates Resources Ref.1 Peer Project Company Study stage Category Ore (Mt) Cu (%) Au (g/t) Ag (g/t) Zn (%) Co (%) Mo (ppm) Pb (%) Date Source Documents Measured 1.3 2.1% 0.9 47.7 5.2% - - 1.6% Opera
Slide 59: Appendix F - Benchmarking of Peer Mineral Resources Estimates cont.
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix F Benchmarking of Peer Mineral Resources Estimates cont. Resources Ref.1 Peer Project Company Study Stage Category Ore (Mt) Cu (%) Au (g/t) Ag (g/t) Zn (%) Co (%) Mo (ppm) Pb (%) Date Source Documents Measured 72 0.5% 0.2 - - - - - Hillside
Slide 60: Appendix F - Benchmarking of Peer Ore Reserves Estimates
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix F Benchmarking of Peer Ore Reserves Estimates Reserve Ref.1 Peer Project Company Category Ore (Mt) Cu (%) Au (g/t) Ag (g/t) Zn (%) Co (%) Mo (ppm) Pb (%) Date Source Documents Operating mine Proved 1.2 1.7% 0.7 37.1 4.5% - - 1.4% 1. Woodlawn
Slide 61: Appendix F - Benchmarking of Peer Ore Reserves Estimates cont.
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix F Benchmarking of Peer Ore Reserves Estimates cont. Reserve Ref.1 Peer Project Company Category Ore (Mt) Cu (%) Au (g/t) Ag (g/t) Zn (%) Co (%) Mo (ppm) Pb (%) Date Source Documents Proved 61 0.5% 0.2 - - - - - Hillside Mineral Resource and
Slide 62: Unlocking value to empower the future
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Unlocking value to empower the future