Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (October 2019)
30 slides from Aurelia Metals's investor presentation, Oct 28, 2019
Slide 1: Building the Next Mid-Tier Gold and Base Metals Producer
Building the Next Mid-Tier Gold and Base Metals Producer Investor Presentation, October 2019 ASX Code: AMI
Slide 2: Forward looking statements
Forward looking statements This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those
Slide 3: Corporate snapshot
Corporate snapshot ASX code: AMI Share price (25 Oct 2019) $0.45 Shares on issue 873.4m Major shareholders Market capitalisation A$389m Mitsubshi UFJ 8.0% Australian Super 6.1% Board and management Van Eck 5.7% Chairman and Acting CEO Cobb Johnstone Lawrie Conway Susie Corlett Share register composi
Slide 4: Senior leadership appointments
Senior leadership appointments Managing Director & CEO and COO Dan Clifford appointed Managing Director & CEO Mining engineer with more than 25 years’ experience in the mining industry Most recently was Managing Director of ASX-listed Stanmore Coal Limited Prior experience with Solid Energy,
Slide 5: Investment highlights
Investment highlights Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling success A$93m cash and no de
Slide 6: Key assets
Key assets Located in the highly mineralised and productive Cobar Region Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Nyngan Cobar Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Federation Zn-Pb-Au-Cu-Ag Wonawinta Ag Mallee Bull Cu/Pb/Zn Project (Pe
Slide 7: Core strategy
Core strategy A mining-for-value approach 1 Optimise existing operations Increased development rates and Pb/Zn circuit upgrade Mine life extension and ongoing efficiencies at Hera 2 Focus on returns Margin over volume or commodity preference Accelerating access to higher margin material fo
Slide 8: Building for extension and growth
Building for extension and growth Heavy investment phase through current half September 2019 quarter benefited from grade and throughput increases at Peak 2H CY19 sees major investment in the business: Peak plant upgrade, accelerating UG development and access to Kairos (Peak Deeps), exploration
Slide 9: September 2019 quarter dynamics
September 2019 quarter dynamics Strong gold and base metal production Aurelia Metals Production Summary Units Mar 19 Qtr Jun 19 Qtr Sep 19 Qtr FY20 Hera gold produced oz 14,191 13,864 10,535 10,535 Hera gold sold oz 15,161 11,071 12,789 12,789 Group: 29.3koz gold at A$988/oz AISC Hera lead produce
Slide 10: September 2019 quarter dynamics
September 2019 quarter dynamics Improved Peak performance Peak 11% increase in underground development rates and ore access; targeting further lift Increased mill throughput and benefit of high grade ore stocks High level of concentrate stocks at quarter end; expected to unwind this quarter
Slide 11: Managing risk
Managing risk Actively mitigating water allocation risks at both operations Peak requires approx. 780ML/y of water Traditionally sourced 100% from high security water allocation via Cobar Council Site has implemented pumping of ground water from New Cobar and water recycling to reduce reliance
Slide 12: A look at FY20: by mine
A look at FY20: by mine Higher base metals output, lower gold production Peak Hera Gold production expected to be 52 – 59koz. Gold production expected to be 33 – 36koz AISC expected to be higher than FY19; lower Au grade and AISC expected to be lower than FY19; lower Au grade increased devel
Slide 13: A look at FY20: group level
A look at FY20: group level Investing in the business – guidance on track FY19 actual FY20 outlook Estimated FY20 Group AISC of A$1,050 to A$1,250/oz is based on reference Gold (koz) 118 85 – 95 base and silver metal prices equivalent to those used for the Company’s June 2019 Ore Reserves estimation
Slide 14: A look ahead
A look ahead FY21 and beyond Annual throughput at Peak in FY21 expected to be approaching nameplate 800ktpa capacity Accelerated UG development expected to deliver access to base of Kairos towards end of FY20; strong potential for prioritisation and mining of high margin tonnes from Kairos in FY
Slide 15: Building value
Building value 01 02 03 04 Robust operational Upgrade and Near-mine inventory Regional exploration base efficiency projects additions success Peak: 4 year Reserve life Peak: Pb/Zn plant Chronos Extensions, Federation upgrade Pb/Zn Hera: 4 year Reserve life Dominion Peak: increasing min
Slide 16: Exploration
Exploration 16
Slide 17: The exploration value driver
The exploration value driver Significant recent drilling success Enhanced financial ability and growing geological understanding of controls on mineralisation High-grade Kairos deposit High-grade Cu below Kairos Upper Chronos extensions Ongoing results at Federation; large-scale, polymetal
Slide 18: Cobar Line-of-Lode
Cobar Line-of-Lode Targeting high margin mineralisation World-class mining area with long history of discovery Prospective trend extends over 10 km Multiple high tonnage and/or high grade deposits along the full strike Focus on discovery of new high margin Peak/Perseverance-style orebodies
Slide 19: Chronos
Chronos Significant up-dip potential High margin Zn-Pb-Au ores [Upper Chronos / Peak Deeps long section] Recent drilling extends lode more than 100 metres above current resources/reserves Very strong base metals, including: 19m at 34.1% Pb+Zn & 0.9g/t Au 15m at 35.1% Pb+Zn, 2.3g/t Au 24m
Slide 20: Kairos: high-margin drilling success
Kairos: high-margin drilling success The next Chronos? Discovered early 2019; directly beneath Peak decline development Mineralisation style and geological setting similar to Chronos Open up- and down-dip Very high grade intercepts, including: 16m at 71.6g/t Au & 8.5% Pb+Zn 14m at 42.9g/
Slide 21: Kairos: high-grade Cu at depth
Kairos: high-grade Cu at depth Rhyolite hosted, analogous to Peak and Perseverance New zone of strong copper mineralisation 150m below current Kairos Resource 25m at 3.0% Cu & 9g/t Ag, includes 12m @ 4.1% Cu & 11g/t Ag Surface drilling program commenced to further test depth potential Additi
Slide 22: Federation discovery
Federation discovery Accelerating evaluation work Very recently discovered (April 2019) 10km south-southwest of Hera Multiple high grade intercepts include: 26m at 16.4% Pb+Zn, 0.1g/t Au, incl. 11.5m at 31.1% Pb+Zn & 0.1g/t Au 20m at 11.9% Pb+Zn, 0.1g/t Au, incl. 6m at 28.2% Pb+Zn & 0.1g/t
Slide 23: Hera North Pod
Hera North Pod Extending Hera’s mine life High grade Pb-Zn-Au-Ag mineralisation Highest tonnage ore source at Hera 2018/19 drilling extends lode up-dip, including: 7m at 45.1% Pb+Zn, 229g/t Ag & 0.3g/t Au 6.4m at 43.6% Pb+Zn, 263g/t Ag & 0.3g/t Au 14m at 18.3% Pb+Zn, 188g/t Ag & 0.8g/t A
Slide 24: Building Value in the Cobar Basin
Regional foothold Highly strategic asset base in the polymetallic Cobar Basin with two major processing plants possessing a combined capacity of 1.3Mtpa Building Value in High margin output Established, high-value gold and base metals production profile the Cobar Basin Leveraging a strategic asset N
Slide 25: Appendix
Appendix 25
Slide 26: Peak Mine Corridor
Peak Mine Corridor +——— Southern Mine Corridor | Northern Mine Corridor New New Perseverance Peak North Prospects Occidental Proteus Prospects Chesney Cobar Jubilee Great Cobar > Peak Northeast TREE ri & 2 r > Lady Greaves £ s— bf Y » Deep Whip } “\ e . > SAMSON targets ee = bs i me | Jubilee Chesne
Slide 27: Mineral Resources estimates (June 2019)
Mineral Resources estimates (June 2019) Peak 2019 Mineral Resources Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Measured 1,919 204 1.7 1.3 0.6 0.7 11 Indicated 7,402 219 1.6 1.3 1.1 1.3 10 Inferred 4,889 207 1.3 1.6 0.5 0.8 7 Total 14,210 213 1.5 1.4 0.9 1.1 9 Utilises A$120/
Slide 28: Ore Reserves estimates (June 2019)
Ore Reserves estimates (June 2019) Peak 2019 Ore Reserves Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Proved 376 181 1.2 1.7 0.3 0.6 11 Probable 2,458 232 2.1 1.0 2.0 2.1 16 Total 2,834 225 2.0 1.1 1.8 1.9 15 Utilises NSR cut-offs of A$150/t (Peak and Perseverance) and A$130/
Slide 29: FY19 financial results summary
FY19 financial results summary Investing in operational capacity and growth Gold production up 21% to 117,521 oz at AISC of $1,045/oz Performance Indicators Units FY19 FY18 Change Net Profit After Tax of $36.0M Sales Revenue A$k 295,002 248,599 19% Revenue increased 19% to $295M driven by high
Slide 30: Competent Person(s) Statements
Competent Person(s) Statements Hera Mineral Resource Estimate Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mi
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