Aeris Resources Limited · ASX:AIS
Aeris Resources — Investor Presentation (November 2020)
35 slides from Aeris Resources's investor presentation, Nov 17, 2020
Slide 1: Maintaining the Momentum
Maintaining the Momentum Investor Presentation Non-Deal Roadshow 17 November 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation may contain certain statements and projections provided by or on behalf of Aeris Resources Limited (Aeris) with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of Aeris. Acc
Slide 3: Compliance statements
Compliance statements Tritton Copper Operations Production Targets Cautionary Statement The presentation includes references to a Production Plan (Production Targets) for the Company’s Tritton Copper Operations. The Production Targets referred to in this presentation are based on: Proved Ore Reser
Slide 4: Company snapshot
Company snapshot ASX Code AIS Market capitalisation Cracow Gold Operations A$163m (fully diluted)1 Ownership 100% Mine type U/G Enterprise Value Processing 570 ktpa CIP (fully diluted)1 A$191m FY21F Production 70 – 75 koz Au FY21F AISC A$1,525/oz-A$1,575/oz Net debt2 A$28m Au Reserves(3) 550kt @ 5.1
Slide 5: Our team and Corporate Culture
Our team and Corporate Culture ‘Can Do’ culture of individual empowerment 30 years mining industry experience Andre Labuschagne Previously Managing Director of Norton Gold Fields and accountability Executive Chairman Limited and has also held various senior roles with Emperor Gold Mines, DRD G
Slide 6: Aeris’ corporate history
Aeris’ corporate history Following years of restructuring, Aeris is now primed to deliver high impact growth Phase 3: Growth execution Phase 2: Position for Growth FY13 Q1 FY21 (2018 – 2020) Acquisition of Cracow Balance sheet strength restored Phase 1: Pivot to active growth program: Restruct
Slide 7: Cracow Gold Operations
Cracow Gold Operations Zap heris
Slide 8: Cracow Gold Operations
Cracow Gold Operations A highly cash flow generative mine which is transforming the company A high grade, low cost gold mine in Queensland, Australia with a proven operating history Acquired from Evolution Mining in July 2020: ─ A$60m cash paid at completion ─ A deferred cash payment of A$15m on
Slide 9: Cracow - first 4 months of ownership - exceeding our expectations
Cracow - first 4 months of ownership - exceeding our expectations Integration Well capitalised asset - no asset integrity issues emerged since taking ownership New management team in place Skilled and stable workforce – low turnover Teams well aligned with Aeris strategy Systems integratio
Slide 10: Immediate priorities for Cracow
Immediate priorities for Cracow FY21 Guidance - 70koz to 75koz Au @ AISC A$1,525 – A$1,575/oz Operational Repay A$30m Acquisition Debt Facility by end FY21 Delivery Maximising cashflows (~A$280m in available tax losses) Improve mine and mill productivity – processing plant already demonstrat
Slide 11: Cracow – a prolific goldfield – Aeris re-invigorating exploration
Cracow – a prolific goldfield – Aeris re-invigorating exploration Strong history of replenishing reserves and resources - remains a key focus for Aeris Cracow has produced more than 1.4 Moz of gold over its life since first production in 2004 Depletion consistently replaced with a 3 to 5 year
Slide 12: Rebuilding the Life Of Mine Plan – targeting a horizon of +5 Years
Rebuilding the Life Of Mine Plan – targeting a horizon of +5 Years Site Team challenged to develop a rolling 4 year plan from UG operations Explore around current and old workings - 1 U/G drill rig operating and another on the way Challenge all current paradigms - break all models and rebuild fr
Slide 13: Cracow near mine exploration – looking in new spaces
Cracow near mine exploration – looking in new spaces Killarney Extensions drill target • High grade mineralisation open along strike and down dip • Structure still present >100m below existing shoot • Previous drill results ― KLU180: 4m @ 7.7 g/t Au Killarney Extensions target ― CBK261: 1m @ 3.6 g/t
Slide 14: Cracow near mine exploration – looking in new spaces
Cracow near mine exploration – looking in new spaces Roses Pride conceptual target Roses Pride Deeps • Focus on conceptual target below previous workings • Drilling underway • Conceptual target is a repeat of the Roses Pride mineralised system 14
Slide 15: Cracow near mine exploration - Roses Pride drilling delivers gold
Cracow near mine exploration - Roses Pride drilling delivers gold First drilling campaign already completed +400m strike length 44 of 48 drill holes intersected gold, including: ─ RPS003 19.0m @ 5.5 g/t Au (true width 10.1 m) ─ RPS025 15.0m @ 4.1 g/t Au (true width 6.1m) ─ RPS050 5.0m @ 5.3 g/t
Slide 16: Cracow near mine exploration – Klondyke / Royal
Cracow near mine exploration – Klondyke / Royal Klondyke and Royal Deposits Klondyke / Royal • Recent shallow drilling indicates potential. Drill results include: ― KDS002 7.0m @ 11.6 g/t Au (true width 3.3m) ― KDS003 3.0m @ 3.1 g/t Au (true width 1.7m) ― KDS017 4.0m @ 2.9 g/t Au (true width 1.4m) ―
Slide 17: Cracow near mine exploration – Golden Plateau
Cracow near mine exploration – Golden Plateau • ~850koz previously mined from Gold Plateau – both open pit and underground • Large mineralised system which remains open down plunge • Currently validating historical workings and drill hole database • Planned drill program testing shallow extensions t
Slide 18: Exploring in new spaces – looking for the next big discovery
Exploring in new spaces – looking for the next big discovery Ballymore ─ Recently identified structure along southern margin of the current mining footprint ─ Limited drilling returned encouraging results: ─ Evidence of epithermal vein textures ─ Anomalous pathfinder elements including gold Nort
Slide 19: Tritton Copper Operations
Tritton Copper Operations Tay heris
Slide 20: Tritton Copper Operations
Tritton Copper Operations A consistent producer with upside Established underground copper mine and 1.8 Mtpa processing plant in Western NSW, Australia ─ Operating since 2005 with >320 kt Cu produced Highly endowed region and tenement package ─ Nearby mines include CSA (Glencore plc), Peak and H
Slide 21: Tritton Life of Mine Plan (LOM)
Tritton Life of Mine Plan (LOM) 4 year LOM with multiple options to extend Aggressive focus on extending mine plan from: Tritton and Murrawombie extensions Developing Budgerygar via access from Tritton Prioritizing higher grade Avoca Tank U/G into production Potential Open Pits: ― Murrawombi
Slide 22: Tritton – brownfields exploration (Tritton and Budgerygar)
Tritton – brownfields exploration (Tritton and Budgerygar) Life of Mine extension opportunities Tritton Deposit: ― Mineralisation open at depth • Commenced drill program testing down plunge potential ― South Wing – adjacent to Tritton orebody – further drilling planned Corridor between Tritton and B
Slide 23: Murrawombie – brownfields exploration
Murrawombie – brownfields exploration Geologically performing better than expected Minerailsation open at depth and to the north Recent drilling continues to intersect high grade mineralisation, including: ─ 14.60m @ 2.43% copper (true thickness approx. 7.8m) MWGC514; and ─ 9.55m @ 2.54% coppe
Slide 24: Greenfields Exploration Activities in FY21
Greenfields Exploration Activities in FY21 Anomaly K • Bedrock conductor identified initially from an airborne EM survey • Anomaly extended beyond tenement boundary – additional tenement granted in June quarter • Ground based EM recently completed and confirmed anomaly (approx. 150m below surface) •
Slide 25: Torrens JV
Torrens JV Aeris holds a 70% interest and is manager of the Torrens Project through a JV with Argonaut Resources NL Torrens located on Eastern Gawler Craton IOCG corridor in South Australia, which hosts several large scale deposits and world class copper-gold operations: ─ Olympic Dam ─ Carrapat
Slide 26: An exciting path forward with multiple value catalysts in FY21
An exciting path forward with multiple value catalysts in FY21 Potential Catalysts FY21 Quarter 2 FY21 Quarter 3 FY21 Quarter 4 NW Corridor Sterling Exploration Drilling at Cracow Roses Pride Deeps Kenneth Ballymore Tritton Deeps Exploration Drilling at Tritton Anomaly K Avoca Tank Murrawombie Deeps
Slide 27: M&A strategy remains a focus
M&A strategy remains a focus Aeris Resources Commodity Gold and Copper M&A strategy East coast Australia Location Rest of Australia Offshore – Risk reward Pursue strategic M&A opportunities to add value, complement existing Producing operation with established infrastructure portfolio an
Slide 28: Summary
Summary FAH Aeris
Slide 29: What makes Aeris different?
What makes Aeris different? Proven team with a consistent Financially robust, rapidly track record deleveraging A unique platform to Diversified, strong free cash consolidate the landscape generation where others cannot 29 79 Favourable gold / copper Primed to unlock value Cu Au price exposure 29
Slide 30: Thank You
Thank You
Slide 31: Appendix
Appendix
Slide 32: Tritton – reported Mineral Resource
Tritton – reported Mineral Resource Tritton tenement package (30 June 2020)(1)(2) Measured Indicated Inferred Total Resource Cut-off Project (%Cu) Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (k
Slide 33: Tritton – reported Ore Reserve
Tritton – reported Ore Reserve Tritton tenement package (30 June 2020)(1)(2)(3)(4) Proven Probable Total Ore Reserves Cut-off Project Type (%Cu) Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) Tritton Underground 1.2 1,200 1.5 17 1
Slide 34: Cracow – Mineral Resource and Ore Reserve
Cracow – Mineral Resource and Ore Reserve Cracow (30 June 2020)(1) Gold grade Tonnes (Mt) Gold metal (koz) (g/t) Ore Reserve Proven 0.28 5.2 46 Probable 0.27 4.9 43 Total 0.55 5.1 89 Mineral Resource Measured 0.20 7.8 53 Indicated 0.69 5.9 130 Inferred 1.40 2.6 120 Total 2.30 4.0 300 (1) Full detail
Slide 35: Competent Persons statement
Competent Persons statement Competent Persons statement Mr Cox confirms that he is the Competent Person for all the Mineral Resource and Exploration Target estimates summarised in this Report and he has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting o
Aeris Resources — Investor Presentation (November 2020) on 6ix