Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Investor Presentation (April 2023)
29 slides from Capricorn Metals's investor presentation, Apr 19, 2023
Slide 1: Mt Gibson Gold Project Maiden Reserve & PFS
Corporate Presentation April 2023 Mt Gibson Gold Project Maiden Reserve & PFS put Capricorn on deliverable growth trajectory capmetals.com.au 1
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement GENERAL The purpose of this presentation is to provide general information about Capricorn Metals Limited (“Capricorn” or the Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production costs
Slide 3: Capricorn Metals Corporate Summary
Capricorn Metals Corporate Summary Capital Structure Directors and Management Shares on issue (ASX:CMM) 374.8 million Mark Clark – Executive Chairman Kim Massey – CEO Performance rights 3.3 million Mark Okeby – Non Exec Dir Paul Thomas – COO Myles Ertzen – Non Exec Dir Gary Visser – GM Karlawinda Sh
Slide 4: DNA of quiet delivery & exceptional returns
DNA of quiet delivery & exceptional returns History of CMM management group 1995 – 2018 • Two ASX listed gold mining companies • 4 projects built & operated in Australia and Ivory Coast • 7 processing plants, >15 open pits developed & operated • >$3bn equity value & $400m dividends Deep & sustained
Slide 5: Karlawinda Gold Project - snapshot
Karlawinda Gold Project - snapshot Mine type Open pit Plant type 3 stage crushing 7.5MW ball mill CIL processing Throughput 4.0 – 5.0 Mtpa Reserve grade 0.8g/t1 Recovery 93% Strip ratio (w:o) 3.9 Mine life 10-12 years Ore reserves 1.34Moz1 Mineral resources 2.29Moz2 Expected production 110 – 125koz
Slide 6: KGP – Capricorn’s cornerstone asset and strong cash generator
KGP – Capricorn’s cornerstone asset and strong cash generator 1HY23 FY22 Ore mined ‘000 BCM) 1,356 2,790 Waste mined ‘000 BCM) 4,303 8,954 Stripping ratio (w:o) 3.2 3.2 FY22 proves the quality of the project: Ore mined ‘000 t) 3,025 5,940 • Construction completed on time/budget and steady state in <
Slide 7: Mt Gibson Gold Project Maiden Ore Reserve & Prefeasibility Study
Mt Gibson Gold Project Maiden Ore Reserve & Prefeasibility Study
Slide 8: Mt Gibson Gold Project – the story so far
Mt Gibson Gold Project – the story so far Unique opportunity • Prime location in Murchison, WA • 280km northeast of Perth & <10km off Great Northern Hwy • Historical (1986-99) gold production >868koz, 14 pits avg depth 60m • Closed when gold price cA$450/oz & “off the grid” for 30 years Compelling a
Slide 9: Maiden Ore Reserve Estimate (ORE) 1.45Moz
Maiden Ore Reserve Estimate (ORE) 1.45Moz* Probable & Total Cut-off Tonnes Grade Ounces (g/t) (Mt) (g/t) (koz) Oxide 0.4 6.2 0.8 168 Transitional 0.4 7.0 0.9 192 Fresh 0.4 35.5 1.0 1,091 48.7 0.9 1,450 A$1,900/oz gold price used in reserve estimate • Conservative, c $1,100/oz below current spot Robu
Slide 10: Maiden ORE 1.45Moz
Maiden ORE 1.45Moz Orion Open Pit – Cross Sections A robust and achievable ORE is the foundation on which the entire business is built capmetals.com.au 10
Slide 11: Strong Resource Conversion to ORE & Potential for More
Strong Resource Conversion to ORE & Potential for More MGGP RESOURCE* Indicated Inferred Total (koz) (koz) (koz) 2,106 649 2,755 Strong conversion of Indicated MRE to ORE • 69% conversion to 1.45Moz ORE • Excellent data density - 25x25m drill spacing • Avg depth of Indicated MRE 150m / ORE 140m Dril
Slide 12: Resource extension opportunity
Resource extension opportunity Resource extension drilling will continue in parallel with development work • Resource shells largely limited by extremity of drill data • Nov22 resource shell has an average depth of only160m (Indicated MRE 150m) capmetals.com.au 12
Slide 13: PFS Highlights – a mine in the making
PFS Highlights – a mine in the making Strong Long Low Cost Low Strong Low Production Mine Life High Margin Capital Cost Financials Technical Profile (post capex/pretax) @ GP A$2750/oz Risk 152kozpa for 10 years AISC 5mpta plant NPV5 $828m Open pit first 7.5 yrs 1.45Moz ORE A$1,420/oz A$260m FCF $1.2
Slide 14: PFS Highlights - gold production 152,000 ounces pa
PFS Highlights - gold production 152,000 ounces pa Gold production averages 152,000 ounces pa for first 7.5 years of LOM • Peak gold production of 175,000 ounces pa • Average LOM gold production 138,000 ounces pa capmetals.com.au 14
Slide 15: PFS Highlights – conventional mining & milling
PFS Highlights – conventional mining & milling Mining Mining Waste (tonnes millions)* 195 • Conventional load & haul mining Ore (tonnes millions)* 47 • 7 open pits make up ORE Total (tonnes millions)* 242 • 90% mill feed from 3 pits – Orion, E/H & S2 • Average mining approx. 30mtpa (ore+waste) W:O S
Slide 16: PFS Highlights - consistent & achievable mining schedule
PFS Highlights - consistent & achievable mining schedule Mining Schedule • ORE mined from 7 open pits along 8km of strike • 90% of ore mill feed sourced from 3 pits – Orion, Enterprise/Hornet & S2 • Schedule minimises movement between pits to achieve volumes & mill feed • Mining consistent over LOM
Slide 17: PFS Highlights – CMM development expertise to deliver low capex
PFS Highlights – CMM development expertise to deliver low capex Plant Capital Cost Estimate A$m Process plant 140 Water exploration and borefield 15 Site infrastructure 65 Owners costs 40 Total 260 Pre-Production Mining Cost Estimate Capital Costs A$m • Basis prelim quantity estimates, budget price
Slide 18: PFS Highlights – robust mine metrics result in low operating costs
PFS Highlights – robust mine metrics result in low operating costs Operating Cost Estimate A$m $/t Ore $/ounce Mining 1,033 21.6 786 Processing & Lab 782 16.3 595 Administration 83 1.7 63 Total 1,898 39.6 1,444 Operating Costs • Mining costs estimated from current operating experience of a mining co
Slide 19: PFS Highlights – other matters
PFS Highlights – other matters Power & Water • Power via 3rd party power station under PPA • LNG fueled, delivered by road in ISO tanks • Hydro modelling and bore pump testing underway • Make up water from 3Gl in historical pits Environment & Community Strong Financial Metrics1 • No Native Title in
Slide 20: Karlawinda underpins MGGP funding
Karlawinda underpins MGGP funding MGGP Funding Requirement • $260m plant capex • $79m preproduction mining Capricorn Quarterly Cash Build • Contingency 30 MGGP Development Spend Timing 25 • H2 CY24* - H2 CY25* • Spend skewed to back half of A$ millions 20 construction on usual S-curve 15 KGP to Unde
Slide 21: MGGP PFS puts Capricorn on deliverable growth trajectory
MGGP PFS puts Capricorn on deliverable growth trajectory CMM Reserves up to 2.8Moz1 CMM Production to >270kozpa Lowest Quartile AISC 7th largest “Australia only” reserve Combined ops would rank CMM in Combined ops AISC forecast in base amongst ASX gold cos top 10 ASX gold producers lowest quartile i
Slide 22: MGGP the next step in the Capricorn journey
MGGP the next step in the Capricorn journey Rapid achievement of a high-quality maiden ORE • CMM has advanced the MGGP rapidly since acquisition in July21 • Validating acquisition & the genuine mining proposition • Maiden ORE of 1.45Moz – quality, scale and growth potential • Strong resource convers
Slide 23: Mineral Resources
Mineral Resources Indicated Inferred Total Mineral Resources Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz) KGP Open Pit 0.3 < 82.3 0.7 1,945 16.9 0.6 346 99.2 0.7 2,291 MGGP Open Pit 0.4
Slide 24: Ore Reserves
Ore Reserves Probable Total Ore Reserve Gold Gold Gold Gold Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal (Mt) (Mt) (g/t) (koz) (g/t) (koz) KGP Open Pit 0.3 < 53.0 0.8 1,344 53.0 0.8 1,344 MGGP Open Pit 0.3 < 48.7 0.9 1,450 48.7 0.9 1,450 Total Total 101.7 0.9 2,794 101.7 0.9 2,794 Note
Slide 25: Risks
Risks The Company considers that the following list, which is not Funding risks exhaustive, represents some of the key risk factors relevant to the The Company currently intends to partly fund the potential development of the MGGP development of the project proposed by the PFS. with free cash flow f
Slide 26: Risks (continued)
Risks (continued) Operational and development risks Supply and third party risks The ultimate and continued success of the project is dependent on a number of The equipment specified in the open pit mine plan is relatively generic in WA, but the factors, including the construction of efficient devel
Slide 27: APPENDIX: SOURCE DATA FOR PEER COMPARISONS
APPENDIX: SOURCE DATA FOR PEER COMPARISONS Company Source Date Release Date Company Source Date Release Date Aeris Resources Ltd https://www.asx.com.au/asxpdf/20221025/pdf/45 25/10/22 Gascoyne Resources Ltd https://www.asx.com.au/asxpdf/20220929/pdf/45 29/09/22 gpr0rmxhfz47.pdf fmx8f1nm8w76.pdf Alka
Slide 28: APPENDIX: SOURCE DATA FOR PEER COMPARISONS
APPENDIX: SOURCE DATA FOR PEER COMPARISONS Company Source Date Release Date Company Source Date Release Date Perseus Mining Ltd https://www.asx.com.au/asxpdf/20221014/pd 14/10/22 Tulla Resources PLC https://www.asx.com.au/asxpdf/20221003/pd 03/10/22 f/45g8gk0kq4y4tg.pdf f/45fszfzkkrbftr.pdf Predicti
Slide 29: Capricorn Metals Ltd (ASX: CMM)
Capricorn Metals Ltd (ASX: CMM) Level 3, 40 Kings Park Road West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105
Capricorn Metals — Investor Presentation (April 2023) on 6ix