Austral Resources Australia Limited · ASX:AR1
Austral Resources Australia — Investor Presentation (November 2021)
28 slides from Austral Resources Australia's investor presentation, Nov 3, 2021
Slide 1: Austral Resources Australia Ltd copper cathode producer
For personal use only Austral Resources Australia Ltd (ASX:AR1) is a copper cathode producer with significant exploration and development upside 3 November 2021
Slide 2: Disclaimer & Competent Persons Statement
DISCLAIMER & COMPETENT PERSONS STATEMENT For personal use only Important Notice and Disclaimer You must read this notice before reading or making any use of this Presentation (defined below) or any information contained in this Presentation. By continuing to read, use or otherwise act on this Presen
Slide 3: Disclaimer & Competent Persons Statement (cont.)
DISCLAIMER & COMPETENT PERSONS STATEMENT (CONT.) For personal use only Financial Information and Modelling All amounts in Australian dollars unless stated otherwise. The financial information (and associated modelling and financial analysis) contained in or referred to in this Presentation is curren
Slide 4: Summary: Austral (AR1) copper cathode producer with exploration upside
Summary: Austral (AR1) is a copper cathode producer with significant exploration and development upside For personal use only • Austral owns and operates the Mt Kelly heap leach SXEW facility, 115km NW of Mt Isa, north Queensland Simple Value • Austral’s Anthill Mine has a 5Mt JORC Reserve, containi
Slide 5: Directors & Management
DIRECTORS & MANAGEMENT For personal use only Phillip • Significant experience in the roles of CEO and Steve • A geologist with extensive management and operational Thomas Chairman of several ASX and TSX mining companies, Tambanis experience gained across large and small mining Non Executive geologis
Slide 6: Project, Infrastructure, History & Offtake
PROJECT, INFRASTRUCTURE, HISTORY & OFFTAKE For personal use only • Anthill Mine development underway with ore deliveries planned to begin in Q1 2022. Anthill Project • Planned production of ~10,000t p.a. of Copper cathode for 4 years. • The Project possesses an NPV of A$134m and IRR of 276%, however
Slide 7: Immediate Copper Production
For personal use only IMMEDIATE COPPER PRODUCTION
Slide 8: Projected Timeline – Already in Production
PROJECTED TIMELINE – ALREADY IN PRODUCTION ✓ Rapid ramp-up of cathode production Austral intends to commence Anthill mining in For personal use only and sales revenue. Steady-state full January 2022, with Ore deliveries expected in production achieved within 5 months of commencing heap stacking. Mar
Slide 9: CSA Global - Independent Technical Assessment Report (ITAR)
CSA GLOBAL - INDEPENDENT TECHNICAL ASSESSMENT REPORT (ITAR) • CSA modelled the Anthill Project for Ore For personal use only Reserve Estimate validation • The assessment assumes a conservative average Cu price of US$8,180/t at A$0.71 NPV7.5% A$134 IRR 276% Free Cash Flow A$159 • The project delivers
Slide 10: Production Upside & Exploration Potential
For personal use only PRODUCTION UPSIDE & EXPLORATION POTENTIAL
Slide 11: Tenure, Reserves, Resources and Exploration Potential
TENURE, RESERVES, RESOURCES AND EXPLORATION POTENTIAL For personal use only • Granted Exploration Leases 1,940km2 Tenure • Access Authority and 53km2 of Mining Leases covering all operations, including haul and access roads. Reserves & • JORC Ore Reserve Estimate: Anthill 5.06Mt @ 0.94% Cu (47.5kt o
Slide 12: Additional Resource Potential at Anthill
ADDITIONAL RESOURCE POTENTIAL AT ANTHILL For personal use only • Anthill has potential to quickly define additional oxide resources: 1. Immediately outside of the current optimised Additional drilling proposed US$8,200 pit shell by dropping cut-off grade. 2. Extensional mineralisation further along
Slide 13: Significant Regional Prospectivity
SIGNIFICANT REGIONAL PROSPECTIVITY For personal use only Austral currently has 49 exploration targets within its 1,940km2 of granted tenure The Mt Isa inlier hosts many world class copper and base metal mines. Austral’s tenure contains a JORC Mineral Resource Estimate with over 400,000 tonnes of con
Slide 14: Exploration Strategy – Funded by Anthill Cashflow
EXPLORATION STRATEGY – FUNDED BY ANTHILL CASHFLOW For personal use only Exploration is being revamped to review historic datasets, update and acquire new geophysics, significantly increase geochemical sampling and update structural interpretation. 1. Oxide ore within 50km of Mt Kelly to extend produ
Slide 15: Financial Information
For personal use only FINANCIAL INFORMATION 15
Slide 16: Capital Structure
CAPITAL STRUCTURE Use of Proceeds AUD Exploration $5.0 million Operating expenses $4.0 million For personal use only With an EV of $100m, Austral listed at $89m market Capital Expenditure - Anthill $1.5 million capitalisation, $17m cash and $28m debt. Capital Expenditure - Mt Kelly $1.4 million Work
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS Austral Resources is strategically positioned as a producing, pure play Copper Company For personal use only in a tier 1 jurisdiction. • Shovel-ready Anthill Project to produce 40,000t of LME Grade A copper cathode over four years In Production • Immediate start • Mount Kelly h
Slide 18: Contacts
For personal use only CONTACTS Dan Jauncey Executive Director dan@australres.com Steve Tambanis Chief Executive Officer steve@australres.com +61 407 689 231 www.australres.com Level 9, 60 Edwards Street Brisbane 4000 07 3520 2500
Slide 19: Appendix Slides
APPENDIX SLIDES For personal use only Raffinate collection ponds at Mt Kelly
Slide 20: Mineral Resource & Ore Reserves
MINERAL RESOURCE & ORE RESERVES* For personal use only Austral holds 15 Mining Leases and 14 Exploration Permits (Lady Annie Project only). Mineral Resources, Ore Reserves and all mining and processing infrastructure are located on the Mining Leases. • Global JORC compliant Mineral Resource Estimate
Slide 21: JORC Mineral Resource Estimated by Deposit
JORC MINERAL RESOURCE ESTIMATED BY DEPOSIT Measured Indicated Inferred Total Deposit Material Type Mt Cu% Ca%* Mg%* Mt Cu% Ca%* Mg%* Mt Cu% Ca%* Mg%* Mt Cu% Ca%* Mg%* Oxide 2.70 0.77 0.3 0.2 6.10 0.71 0.3 0.3 0.10 0.37 0.3 0.3 8.90 0.73 0.3 0.3 For personal use only Transition 0.30 0.90 5.8 3.3 1.80
Slide 22: Anthill Block Model Sections
ANTHILL BLOCK MODEL SECTIONS - 7759110N For personal use only WEST PIT SECTION EAST PIT SECTION 22
Slide 23: Anthill Block Model
ANTHILL BLOCK MODEL • First ore from east pit is planned 3 months after commencing pre-strip. For personal use only • Anthill is fully permitted to commence mining North East 3D schematic of the Anthill pit shells and block model. Looking northeast. East pit is 600m wide. 23
Slide 24: Project Readiness
PROJECT READINESS For personal use only Detailed work underway to enable commencement of operations: permits, licenses, contracts, Native Title and landowner access agreements. Refurbishment and detailed maintenance to ensure equipment is fit for purpose, safe, reliable and with appropriate critical
Slide 25: Copper Market
COPPER MARKET Long Term fundamentals for copper appear strong. EV’s as a Mix of Annual Global Vehicle Sales4 For personal use only • A strong outlook underpinned by global economic growth – given wide use for copper (construction, power, industrials, automotive and consumer goods) – More recent grow
Slide 26: Mt Kelly Infrastructure
MT KELLY INFRASTRUCTURE For personal use only Austral will utilise existing operating infrastructure to process the Anthill ore. The company will continue processing ore that was mined during the Company’s recent remnant mining campaign to ensure early cash flow. • SX-EW facility (~30kpa capacity) •
Slide 27: Process Flowsheet
PROCESS FLOWSHEET For personal use only • Austral utilises a simple process for Copper cathode production • The processing facility has been operating since 2007 • Estimated processing unit cost of A$2,400/t Cu cathode • Annual sustaining capital estimated at A$500,000 27
Slide 28: Peer Valuation - Comparative
PEER VALUATION - COMPARATIVE Plant Producing Code Company Mkt Cap A$M* Mt Cu Resource** Mkt Cap A$/t Cu Resource For personal use only No HAV Havilah $ 60 1.30 $ 46 No AML Aeon $ 42 0.59 $ 71 No CVV Caravel $ 180 1.84 $ 98 Yes No CYM Cyprium $ 129 1.10 $ 117 Yes Oxide AR1 Austral Resources $ 89 0.42
Austral Resources Australia — Investor Presentation (November 2021) on 6ix