Metals Exploration Plc · LSE:MTL
Metals Exploration — Investor Presentation (February 2022)
25 slides from Metals Exploration's investor presentation, February 2022
Slide 1: Philippine Gold Producer - Investor Presentation
PHILIPPINE GOLD PRODUCER - INVESTOR PRESENTATION FEBRUARY 2022
Slide 2: Disclaimer
DISCLAIMER This presentation (“Presentation”) has been prepared by the management of Metals Exploration Plc (“Company”) and delivered for information purposes only to a limited number of persons and companies who are persons who have professional experience in matters relating to investments and who
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS 2021 Mineral Resource Estimate update of 26.5Mt at Considerable exploration Record FY2021 numbers in 1.48 g/t for 1.27Moz Au upside at Runruno, both in pit terms of annual gold recovery, 2022 Ore Reserve Estimate of and out of pit, to extend current sale proceeds and gold poure
Slide 4: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY Record gold sold FY2021 of 72,447 oz and conservative Record gold sales proceeds Record gold recoveries in FY2022 guidance range of FY2021 of $130million FY2021 of 84.5% 67,000 to 71,000 oz 15 million man-hours FY2021 Net Debt reduced without a reportable injury by US$21.5
Slide 5: Strategy & Future Outlook
STRATEGY & FUTURE OUTLOOK Focus on local M&A opportunities to develop Finalise design and start second project in the LOM extension drilling to construction of permanent Philippines using in country commence Q2 2022 in-rock RSI spillway experience and technical assets Exploration programme Focus on
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Revenue & EBITA US$mm 129.8 ▪ Record FY2021 revenue and EBITA of c.US$130mm 122.1 120 94.3 and US$31.9mm, respectively 90 61.4 60 30.3 31.9 30 Neg. 9.0 0 1 2018 2019 2020 2021 EBITA (US$mm) Gold Sales Revenue (US$mm) Capex & Free Cashflow US$mm 50 ▪ Continued focus on improving
Slide 7: Decreasing Leverage Profile
DECREASING LEVERAGE PROFILE Senior Debt Facility & Repayments Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Gross Debt (Receipts) / (0.9) - - - - - 4.0 8.0 12.3 8.3 7.3 11.8 Repayments (US$mm) Senior Debt Balance (US$mm) 65.0 66.0 67.1 68.2 69.4 70.8 68.1 61.3 4
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE Production & AISC koz US$/oz ▪ Record FY2021 gold production of 73,206 ounces 100 1,400 ▪ Forecast gold production range for 2022 of between 80 69.0 67.6 73.2 67-71 1,350 67,000 – 71,000 ounces 1,275-1,325 1,281 ▪ FY2021 AISC of US$1,281 / oz 60 1,281 1,300 48.1 1,259 ▪ All-i
Slide 9: Capital Structure
CAPITAL STRUCTURE Major Shareholders At a Glance Others Shares in issue 2,071,334,586 20% Share price1 GBP 0.014 Hargreaves Lansdown MTL (Luxembourg) 4% Market capitalisation1 GBP 29.0mm Sarl 47% Interactive Investors Market capitalisation1 US$39.5mm 4% Cash & Short Term Investments2 US$4.7mm Baker
Slide 10: Philippines
PHILIPPINES Mining sector in the Philippines Tax & Royalty • The Philippines is a leading producer of nickel, a significant • The Company has an income tax holiday until July 2022. From July producer of gold and copper, exports some iron ore, chromium, 2022 mining license terms entitles Philippine g
Slide 11: Runruno
RUNRUNO A high potential gold mine Metals Exploration: Investor Presentation February 2022 11
Slide 12: Runruno – Overview
RUNRUNO – OVERVIEW Runruno is located in the mineral rich province of Nueva Viscaya. The area has been known to BATCH PLANT & ACCOMMODATION be prospective for gold and other precious metals since the early 1960s and has enjoyed a varied exploration history. MINE OFFICE & WORKSHOP PROCESS PLANT • Met
Slide 13: Operational Enhancements Deliver Record Production
OPERATIONAL ENHANCEMENTS DELIVER RECORD PRODUCTION koz Quarterly Gold Production 25,000 20,000 15,000 10,000 5,000 - Metals Exploration: Investor Presentation February 2022 13
Slide 14: Critical Actions Undertaken by New Management Team
CRITICAL ACTIONS UNDERTAKEN BY NEW MANAGEMENT TEAM Mine A significant body of work was done to review and complete a detailed new mine design including: • New mineral resource model and geotechnical model used for open pit optimisation • Pit shell re-designed for each stage to LOM with ramps and acc
Slide 15: Mining Operations
MINING OPERATIONS Mining schedule optimised Metals Exploration: Investor Presentation February 2022 15
Slide 16: Mine Site Layout & Sequencing
MINE SITE LAYOUT & SEQUENCING Overview • LOM strategy is to mine 2 stages contiguously • 2022 will focus on mining Stage 2 and Stage 3 • Backfill of pit shell commenced Q4 2021 • Removal of illegal miners ~98% complete • Access to stages 3-4 gained Optimisation • Geotechnical review - east wall cut
Slide 17: Exploration Activities
EXPLORATION ACTIVITIES • Significant known exploration upside. To date very little resources have been allocated to any exploration • Brownfields exploration focused on the Bitang/Balcony area to the north of current operations • This area was previously occupied by artisanal miners and was not acce
Slide 18: Exploration – Geophysical Survey
EXPLORATION – GEOPHYSICAL SURVEY • Completed Electrical Resistivity Tomography and Induced Polarization Surveys along 5 lines to the north of current workings • Tunnels, 3 prominent faults and some other highly conductive drill targets identified within the previous artisanal miners area Tunnel Tunn
Slide 19: Exploration – Initial Drilling
EXPLORATION – INITIAL DRILLING • Drilling has commenced in the Balcony area with 5 holes complete for 466m • Another 100 holes, some diamond drill, some RC, are planned for this year • Mineralised intercepts include disseminated sulphides and molybdenite fracture fills in MDX975 from 18.2 – 22.7m. •
Slide 20: Processing
PROCESSING Operations stable – higher gold recoveries Metals Exploration: Investor Presentation February 2022 20
Slide 21: Process Operations – Significant Improvements Achieved
PROCESS OPERATIONS – SIGNIFICANT IMPROVEMENTS ACHIEVED Highlights • Record gold poured in FY2021 of 73,206 ounces (FY2020: 67,552 ounces) • Increased overall gold recoveries from 72.2% to 84.5%; up by16.9% on FY2020 • Maintained mill throughput during FY2021 at average 273t/hr – well above the desig
Slide 22: ESG
ESG Metals Exploration: Investor Presentation February 2022 22
Slide 23: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT • Exceptional safety record – with over 15 million-man hours without a reportable injury as at 21 January 2022 • Recently awarded by the Mines and Geoscience Bureau: • Safest Surface Mining Operation • Overall Safest Mining Operation • Best Mine Supervisor- Engr. Lester
Slide 24: Community & Social Development
COMMUNITY & SOCIAL DEVELOPMENT • Prioritise the development of our local community and have a strong partnership with the national agencies and local governments from Barangay to Provincial level • Continued focus on health, education and capacity building amongst others in our local communities • H
Slide 25: Contact
To request additional information or ask any questions, please email us at info@metalsexploration.com www.metalsexploration.com
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