Nt Minerals Limited · ASX:NTM
Nt Minerals — Merger or Acquisition (November 2020)
43 slides from Nt Minerals's merger presentation, Nov 16, 2020
Slide 1: Strategic Merger of Dacian Gold and NTM Gold
STRATEGIC MERGER OF DACIAN GOLD AND NTM GOLD REGIONAL CONSOLIDATION TO UNLOCK SHAREHOLDER VALUE LEIGH JUNK – MANAGING DIRECTOR, DACIAN GOLD ANDREW MUIR – MANAGING DIRECTOR, NTM GOLD 16 November 2020
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer Important Notices This Presentation has been prepared by Dacian Gold Limited (Dacian) and NTM Gold Limited (NTM) and is authorised by the Board of Directors of Dacian and the Board of Directors of NTM. DISCLAIMER This Presentation has been prepared by Dacian and NTM bas
Slide 3: Transaction Rationale
Transaction Rationale Strategic combination that has the opportunity to extend mine life at Mt Morgans, leveraging Dacian’s operational expertise and processing infrastructure to unlock the potential of the Redcliffe Gold Project through regional consolidation • Aligned with Dacian’s corporate strat
Slide 4: Transaction Details
Transaction Details Unanimous support from NTM Gold’s Board and major shareholders for the merger Transaction Structure • Merger between Dacian Gold and NTM Gold to be implemented via a NTM Gold Scheme of Arrangement, under which Dacian Gold will acquire 100% of the shares in NTM Gold • Following im
Slide 5: Key benefits for NTM Gold shareholders
Key benefits for NTM Gold shareholders Transformative opportunity for NTM Gold shareholders to immediately transition from explorer to gold producer whilst maintaining exposure to the Redcliffe Gold Project • Exchange Ratio of 1 Dacian share per 2.7 NTM shares • Implied Offer Price of $0.141 per sha
Slide 6: Pro Forma Merged Group overview
Pro Forma Merged Group overview Pro Forma Merged Group market capitalisation of $285M and cash balance of $44M as at 30 September 2020 Unit Dacian Gold NTM Gold Pro Forma Merged Group Spot Share Price / Spot Implied Share Price1 $ 0.35 0.13 0.35 No. of Ordinary Shares1 M 556.5 693.1 813.2 Market Cap
Slide 7: Strategic regional consolidation
Strategic regional consolidation • Both companies’ assets are located in the highly prospective Leonora-Laverton District in Western Australia, surrounded by several multi-million ounce deposits • NTM’s Redcliffe Gold Project lies within a 100km radius from Dacian’s Mt Morgans Gold Operations • Mult
Slide 8: Mineral Resource to Ore Reserve conversion strategy
Mineral Resource to Ore Reserve conversion strategy Significant opportunities to extend mine life through integration and optimisation of Redcliffe Gold Project • Merger will increase Dacian’s Mineral Resource ounces by 33% and average grade by 33% (excluding MMGO Underground) • Significant potentia
Slide 9: NTM's Redcliffe Gold Project presents an attractive Mineral Resource base
NTM’s Redcliffe Gold Project presents an attractive Mineral Resource base Shallow, high-grade Hub, GTS and Nambi deposits are key development targets and include oxide material to potentially increase mill throughput rates Mineral Resources1 Description Strategy • High grade oxide close to surface •
Slide 10: Combined exploration and development pipeline
Combined exploration and development pipeline Attractive development pipeline established to support ongoing mine life extension, with numerous advanced targets and ongoing drilling programs Base Load Ore Feed Satellite Open Pits Underground Opportunities Redcliffe Gold Project Mt McKenzie Phoenix T
Slide 11: Reinforces Dacian's position as an emerging gold producer
Reinforces Dacian’s position as an emerging gold producer Significant upside potential in Dacian’s market rating Benchmarking of comparable mid cap gold producers and developers by Market Capitalisation ($M)1 1,780 1,549 1,223 1,067 Market Capitalisation ($M) 610 592 542 441 285 282 282 195 150 SLR
Slide 12: Strategic merger to create shareholder value
Strategic merger to create shareholder value Transaction Rationale • “On Strategy” transaction that delivers high-value Mineral Resources within haulage distance to extend mine life • Operational diversity and flexibility via second mining center with additional optimisation opportunities • Leverage
Slide 13: Merged Group's Mineral Resources and Ore Reserves
Merged Group’s Mineral Resources and Ore Reserves The merger will result in a combined Mineral Resource base of 45.4Mt @ 1.9g/t for 2.7Moz NTM Gold - Redcliffe Gold Project JORC Resource at 0.5g/t cut off1 Dacian Gold – Mt Morgans Mineral Resources (31 December 2019)2 Cut-off Indicated Inferred Tota
Slide 14: Appendix A: Dacian Gold Overview
Appendix A: Dacian Gold Overview
Slide 15: Corporate Overview
Corporate Overview CAPITAL STRUCTURE 30 SEPTEMBER 2020 SHAREHOLDERS SHARE REGISTER Shares on Issue (13 November 2020) 556.5 million Directors Options1 / Performance Rights 0.85 million / 13.7 million 4% Retail 27% Institutions Share price (13 November 2020) $0.350 per share 45% Market Capitalisation
Slide 16: Delivering on Objectives
Delivering on Objectives Resetting of the baseline at Dacian provides the platform to unlock value $98M recapitalisation of Dacian Experienced senior management team completed in April 2020 driving Dacian’s turnaround September quarter production of Scoping study for the reoptimisation of 32,799oz a
Slide 17: Enviable Land Position in Well Endowed WA Gold Belt
Enviable Land Position in Well Endowed WA Gold Belt Sizeable Mineral Resource base across the tenement holding in a significant gold region 17
Slide 18: FY2021 – Investing in the Future
FY2021 – Investing in the Future Sustainable open pit operations at MMGO • FY2021 forecast production of 110,000-120,000oz at an AISC of $1,400-$1,550/oz* • September quarter production of 32,799oz at an AISC of $1,315/oz tracks well against guidance FY2021 FY2022 FY2023 Three Year • Mill feed now s
Slide 19: Open Pit Provides Production Close to the Mill
Open Pit Provides Production Close to the Mill Jupiter open pit underpins production profile • Continued mining operations at Jupiter provides base load ore feed to the processing plant • Jupiter consists of the Heffernans, Doublejay and Saddle sub-pits (Ore Reserve of 9.7Mt @ 1.3 g/t for 390,000oz)
Slide 20: Heffernans Deposit Underpinning FY2021 Production
Heffernans Deposit Underpinning FY2021 Production Heffernans pre-stripping complete; ore production profile increased Heffernans cross-section Heffernans cross-section showing: • Mining currently in the Heffernans Stage 2 and 3 sub-pit • the Jupiter Mineral Resource block model (coloured by block gr
Slide 21: Production Transitioning to Doublejay by end FY2021
Production Transitioning to Doublejay by end FY2021 Doublejay to provide strong cash flow generation over FY22-23 following pre-strip campaign Doublejay cross-section Doublejay cross-section showing: • Stripping of Doublejay Stage 1 now • the Jupiter Mineral Resource commenced; Stage 2 underpins blo
Slide 22: Multi Level Exploration Program to Expand Resource Base
Multi Level Exploration Program to Expand Resource Base Targeting large potential base load ore feed and satellite deposits to bolster annual production Plan view of advanced exploration targets 1 Identify and test potentially large, replacement base load ore feed sources • Cameron Well syenite targ
Slide 23: Base Load Open Pit Opportunities
Base Load Open Pit Opportunities Potential avenues to extend production profile Regional magnetics and exploration targets Cameron Well • Syenite stock equivalent in scale to Jupiter and adjacent to the Mt Marven Shear Zone • Multiple anomalous trends identified through RAB and RC drilling (2017- 20
Slide 24: Satellite Open Pit Opportunities
Satellite Open Pit Opportunities Potential supplement to base load production Plan of the Mt Marven Deposit Mt Marven • Mineral Resource of 0.5Mt @ 1.8 g/t for 29,000oz* • Recent drilling encountered key intercepts of: •3m @ 21.79 g/t Au from 27m in 20MVRC0019 •3m @ 6.42 g/t Au from 1m in 20MVRC0039
Slide 25: Underground Opportunities
Underground Opportunities A component of a reoptimised underground operating strategy Phoenix Ridge Phoenix Ridge long section • Inferred Mineral Resource of 0.5Mt @ 8.1 g/t for 125,000oz • Infill drilling completed to support a Mineral Resource update Westralia • Results of infill drilling to be in
Slide 26: Development of an Underground Strategy
Development of an Underground Strategy Underground Mineral Resources outside of the current mine plan Underground opportunities • Scoping study commissioned to evaluate the potential for supplementary production from underground with results due early 2021 • Westralia, Phoenix Ridge, Transvaal and C
Slide 27: Investment Highlights
Investment Highlights Sustainable operating profile with multiple levers to unlock value Operating plan focused on investment during FY2021 and harvesting through FY2022-2023 • Sustainable open pit production profile averaging 110,000ozpa @ AISC of $1,425/oz (FY2021-2023) • Provides a robust platfor
Slide 28: Appendix B: NTM Gold Overview
Appendix B: NTM Gold Overview
Slide 29: Corporate Snapshot
Corporate Snapshot Capital Structure (ASX:NTM) Major Shareholders Share price (as at 13 November 2020) $/sh 0.088 Board, 5.7% Shares on Issue (M) 683.9m DGO, 13.6% Performance Rights (M) 9.25m Remainder, 51.1% Unlisted Options (March 2022, 10c) (M) 60.0m Empire Resources Market Capitalisation (Incl.
Slide 30: Directors & Management
Directors & Management Board of Directors • Prominent Perth businessman with 40 years’ experience in management. Extensive knowledge of the capital markets and has well-established Edward Van Heemst mining industry networks. Currently the Managing Director of Vanguard Press, a non-executive Director
Slide 31: Project Overview
Project Overview Redcliffe Gold Project (100% NTM): • +720km2 of highly prospective ground • 679koz1 resource with substantial upside & large areas untested • Exploration Target of 1.4Moz to 2.2Moz2 (including existing Resource) • Maiden Hub Resource of 141koz @ 4.9g/t1 • High grade oxide mineralisa
Slide 32: Mertondale Shear
Mertondale Shear • NTM owns 100% of the Redcliffe Gold Project - centred on the highly prospective Mertondale Shear Zone – Mertondale Shear Zone (MSZ) is a major gold-rich fluid pathway – Multiple deposits discovered to date • Almost 40km strike within the Redcliffe Project, containing key prospects
Slide 33: Current Exploration
Current Exploration • Mineralisation along entire strike of Redcliffe tenements • Aircore Completed: – Following up historic hits, structures and conceptual targets • Diamond & RC drilling underway: – Extensions to Hub & GTS deposits – Gully area • All deposits still open N GTS Aliso Hub Deposits Pr
Slide 34: Hub: High Grade Growth Prospect
Hub: High Grade Growth Prospect • Discovered October 2018 via aircore drilling • High grade oxide close to surface • Maiden Mineral Resource Estimate: – 890.3kt @ 4.9 g/t Au for 141koz Au1 • Oxide component is 43koz @ 6.6g/t to 80m depth • Open at depth and along strike N Hub 1: Refer to Slide 13 fo
Slide 35: Hub: Continues to Grow
Hub: Continues to Grow AVNTMGOL 6851500mN, n sesesson [7m @ 9.29 | \ om @ 8.agt Surface 6.3m @ 42.7 a : og i tt lontat 400m. . : . .-Z gm @ 7. ee — Fresh o °° : ~ fimo) — ° ° a : ° + ~ “*___ [tom @ 5:29 ° + oe (8m @ 66g r | {2.4m @ 9.5gt . ? 200m - ———|6m @ 5.1gft | . - ® ~/10.9m @ 6.1g/t => Hub Dep
Slide 36: Hub: Preliminary Met Testwork
Hub: Preliminary Met Testwork • Initial cyanide leach work using LeachWell process averaged 96.2% recovery: Diamond core from 20RDD001: 0.2m @ 468g/t from 61.9m o Oxide – 97.3% o Transitional – 96.5% o Fresh – 94.1% • Can be treated by normal cyanidation methods (i.e. not refractory) • High grades n
Slide 37: GTS Deposit
GTS Deposit N • 138koz Resource1 • Still open • Drilling shortly GTS 1: Refer to Slide 13 for the Mineral Resources. 37
Slide 38: Bindy Deposit
Bindy Deposit N • 99koz Resource1 Bindy • Still open • Requires more drilling 1: Refer to Slide 13 for the Mineral Resources. 38
Slide 39: Summary
Summary Outstanding Region • Gold rich area, highly prospective • Significant infrastructure • Trucking distance to Mt Morgans operations 679koz1 Resource with Substantial Upside • High grade oxide mineralisation close to surface at Hub & GTS • All deposits open Active Exploration • Aggressive ongoi
Slide 40: Appendix C: Additional Information
Appendix C: Additional Information
Slide 41: Dacian Gold Financial Information
Dacian Gold Financial Information Fixed debt repayment and forward hedge schedule Forward Sales Hedged Price Period Ending Fixed repayment ($M) (oz) (A$/oz) 31-Dec-20 $11.3 6,000 $1,739 31-Mar-21 $2.0 10,041 $1,955 30-Jun-21 $4.0 18,123 $2,096 FY2021 $17.3 34,164 $1,992 30-Sep-21 $1.9 13,119 $2,240
Slide 42: Comparable Gold Producers and Developers
Comparable Gold Producers and Developers Mineral Resources References Company ASX Announcement Date and Title Gold Road Resources Limited • 12 February 2020: “Gruyere 2020 Guidance and Resource Upgrade” Ramelius Resources Limited • 28 September 2020: “Resources and Reserves Statement 2020” Silver La
Slide 43: Dacian Gold
A Jb DACIAN GOLD A: LEVEL 2, 1 PRESTON STREET, COMO WA 6152 P: PO BOX 2152, COMO WA 6152 T: +61 08 6323 9000 INFO@DACIANGOLD.COM.AU. DACIANGOLD.COM.AU