29metals Limited · ASX:29M

29metals — Ord Minnett East Coast Mining Conference 2023

29 slides from 29metals's conference presentation, Mar 22, 2023

  1. Slide 1: Ord Minnett East Coast Mining Conference 2023 Investor Presentation

    ASX ANNOUNCEMENT Wednesday, 22 March 2023 Ord Minnett East Coast Mining Conference 2023 Investor Presentation 29Metals Limited (‘29Metals’ or, the ‘Company’) Managing Director & CEO, Peter Albert, will be presenting and meeting with investors at the Ord Minnett East Coast Mining Conference 2023, bei

  2. Slide 2: Ord Minnett East Coast Mining Conference

    Ord Minnett East Coast Mining Conference Peter Albert Managing Director & Chief Executive Officer 22 March 2023

  3. Slide 3: Important Information

    Important Information The information in this presentation is provided for general information regarding 29Metals Limited (the ‘Company’) and its subsidiaries (together with the Company, ‘29Metals‘). Material information in this presentation has been derived from information publicly released by the

  4. Slide 4: Important Information

    Important Information FORWARD LOOKING STATEMENTS This presentation contains forward looking statements and comments about future events, including in relation to 29Metals’ businesses, plans and strategies. Forward-looking statements can generally be identified by the use of words such as, “expect”,

  5. Slide 5: 2022 Operating Highlights

    2022 Operating Highlights Solid operational performance and continued Mineral Resources growth in a challenging environment Improved safety and production Production  Group TRIFR improved to 9.8/mwhrs (2021: 12.0/mwhrs)  73kt Cu-eq 1, up 8% on prior period Pro forma (‘PF’) 2 result, driven by a 21

  6. Slide 6: 2022 Financial Highlights

    2022 Financial Highlights Strong balance sheet maintained $183m operating cash flow, pre-hedges Cash Flow $156m after $28m cash settlement of hedges Generation   Solid EBITDA result of $152m Balance sheet strength Net Drawn Net Drawn Debt of $26m 1 Debt 1  Cash of $172m 2, Total Liquidity of $231

  7. Slide 7: 2022 Metal Production and Sales Mix

    2022 Metal Production and Sales Mix Improved production outcomes compared to the prior period, copper dominant revenue mix Sales Mix (2022) 1 Copper & Zinc Production (kt) 29 30 79 47 Golden Grove Capricorn Copper Cu Zn Au Ag Copper Production 41 41 5% 25 24 48% Golden 4% Grove 30% 37% 16 17 2 Group

  8. Slide 8: 2022 Sustainability & ESG

    2022 Sustainability & ESG Progressing our Sustainability & ESG priorities 2022 Milestones  29Metal’s released its first Sustainability & ESG report  Launch of 29Metals’ Our Approach to Sustainability & ESG and Taskforce for Climate-related Financial Disclosures (‘TCFD’) Roadmap  Progress against

  9. Slide 9: 2023 Priorities

    2023 Priorities Key drivers underpinning 2023 performance  1H production volumes and cash flows materially impacted by operational constraints and Capricorn Copper’s activity hiatus Key Driver Management Focus  Reduction of site captured stormwater Capricorn Copper  Remediation of flood impacted

  10. Slide 10: Operations Update: Capricorn Copper

    Operations Update Capricorn Copper Queensland (Australia) Weekly Rainfall for the week ending 10 March 2023 1 Extreme Weather Event  Extreme rain event resulted in a substantial increase in water held on sites ASX: 29M Capricorn Copper  ~500mm of rain five days (6 – 10 March 2023), the highest wee

  11. Slide 11: Operations Update: Capricorn Copper Rainfall

    Operations Update Capricorn Copper Rainfall from 1st November Previous Year - 31st October Stated Year 1 Total of 5 months of 1600 Prior record since 1900 rainfall 1400 1364 1315 1200 614 1000 Rainfall (mm) 862 861 800 704 726 652 597 600 525 502 456 481 485 416 346 377 400 750 227 200 0 2007 2008 2

  12. Slide 12: Operations Update: Regulatory approvals & ventilation

    Operations Update Regulatory approvals & ventilation Tailings Golden Grove  TSF3 tailing lift approval still pending with DMIRS. Engagement ongoing  Civil construction tender process completed with award imminent Capricorn Copper  Esperanza Tailings Storage Facility (‘ETSF’) performed to design t

  13. Slide 13: Mineral Resources & Ore Reserves

    Mineral Resources & Ore Reserves 1 Continued replacement and growth, building on 29Metals history of exploration success Golden Grove Ore Reserves estimates Ore Reserves (Mt) Contained Cu (kt) Contained Zn (kt) +19% +10% +14%  Group Ore Reserves estimates tonnes up 23%, with increases for tonnes an

  14. Slide 14: High Metal Grades at Operating Assets

    High Metal Grades at Operating Assets High Mineral Resources and Ore Reserves (‘MR&OR’) 1 grade relative to 2022 production and declining head grades globally Declining Global Cu Head Grades 2 Capricorn Copper 2022 Cu Head Grade vs MR&OR Grade ’22 31-Dec-22 4.0% Prod. OR estimates 31-Dec-22 MR estim

  15. Slide 15: Golden Grove – Discovery Timeline

    Golden Grove – Discovery Timeline History of discovery and Mineral Resources replacement and growth Golden Grove Mineral Resources estimates at Dec-32 2022: 61.4Mt @ Mineral Resources Discoveries 1.7% Cu, 4.0% Zn, 0.7g/t Au, 28g/t Ag 2 Production Scuddles starts Growth Opportunities Amity and Xantho

  16. Slide 16: Gossan Valley

    Gossan Valley Outline of 31-Dec-22 Mineral Resources estimates for Gossan Valley - Long-section View 3  Gossan Valley 31-Dec-22 Mineral Resources estimates of 6.3Mt @ 1.1% Cu, 6.1% Zn, 0.5g/t Au, 18g/t Ag  Golden Grove 31-Dec-22 Ore Reserves estimates include Gossan Valley Ore Reserves; – Probable

  17. Slide 17: Cervantes

    Cervantes Increase in Mineral Resources estimates for Long-section View Cervantes relative to PFS 1  31-Dec-22 Mineral Resources estimates tonnes increased by 13% to 5.2Mt Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for Cervantes 2 Resources estimates for Cervantes

  18. Slide 18: Future Exploration Opportunities

    Future Exploration Opportunities Golden Grove VHMS system controls well understood after decades of drilling Good spatial definition of feeder zones and favourable stratigraphic units allows high probability targeting Priority target areas for repeat mineralisation:  North Cervantes – Gossan Hill L

  19. Slide 19: Esperanza South

    Esperanza South Cross-section View 31-Dec-22 Mineral Resources estimates for Esperanza South 1: Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for ESS 2 Resources estimates for ESS 2  Increase in width and higher grade at depth  Increase in Mineral Resources estimate

  20. Slide 20: Cobalt

    Cobalt at CC: Cobalt 1 Evaluating cobalt opportunity  Substantial cobalt estimated to be contained within our copper Mineral Resources estimates  Studies are progressing to identify future opportunities to economically recover cobalt in Mineral Resources – UQ PhD study - Geometallurgical character

  21. Slide 21: APPENDIX

    APPENDIX A

  22. Slide 22: Financial Results Summary

    Financial Results Summary Solid production  $721m Revenue 1  $152m EBITDA 2  $47m NPAT loss ― Higher depreciation & amortisation (‘D&A’) expense reflects the higher utilisation of tailings dam capacity and accelerated depreciation  $156m Operating cashflow, after $28m in payments for settlement

  23. Slide 23: Costs

    Costs Costs impacted by industry-wide challenges including absenteeism and inflation  Higher Site Operating Costs 1 as result of: ― increased activity ― higher input costs  D&A materially higher with increased investment in incremental TSF expansions, higher utilisation rates and accelerated depre

  24. Slide 24: Net Drawn Debt

    Net Drawn Debt 1 Strong balance and liquidity to support a guided soft Mar-Qtr  Drawn Debt 1 of $198m (2021: $201m) following principal repayments of $15m (US$12m), offset by depreciation of AUD  Balance sheet strength with Net Drawn Debt 1 of $26m, including cash and cash equivalents of $172m 2 

  25. Slide 25: Definitions of Non-IFRS Financial Information Metrics

    Definitions of Non-IFRS Financial Information Metrics METRIC DEFINITION is all-in sustaining costs, and is calculated as C1 Costs plus royalties cost, corporate costs, sustaining capital and capitalised development costs, but excludes growth capital and exploration. AISC AISC is cited per pound of p

  26. Slide 26: Reconciliation of EBITDA to NPAT

    Reconciliation of EBITDA to NPAT UNITS 2022 2021 1 VAR NPAT $’000 (47,222) 121,013 (168,235) Less: Income tax (expense)/benefit $’000 (18,594) (103,236) 84,642 Add: Net finance costs $’000 19,172 30,262 (11,090) Add: Depreciation and amortisation $’000 189,399 100,124 89,275 Add: Unrealised foreign

  27. Slide 27: Group Mineral Resources and Ore Reserves Estimates

    Group Mineral Resources and Ore Reserves Estimates 1 Mineral Resources Mineral Resources estimates at the Group level are the aggregation of Mineral Resources estimates for Golden Grove, Capricorn Copper and Redhill. Mineral Resources have been depleted for production to 31 December 2022 and are rep

  28. Slide 28: Group Mineral Resources and Ore Reserves Estimates

    Group Mineral Resources and Ore Reserves Estimates 1 Ore Reserves Ore Reserves estimates at the Group level are the aggregation of Ore Reserves estimates for Golden Grove and Capricorn Copper. Ore Reserves have been depleted for production to 31 December 2022 and are reported as at that date 2022 20

  29. Slide 29: Unlocking value to empower the future

    Unlocking value to empower the future

29Metals — Ord Minnett East Coast Mining Conference 2023 on 6ix