Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (November 2022)
47 slides from Orion Minerals's investor presentation, Nov 23, 2022
Slide 1: Investor Presentation November 2022
For personal use only Errol Smart / Managing Director and CEO Investor Presentation / November 2022 PAGE
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion Minerals expenditures, mineral reserves and mineral resources and • do not make any representation or warranty, express or Ltd and its subsidiaries (Orion or Company) and their activities and is anticipated g
Slide 3: Focus on Two Highly Prospective South African Base Metal Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN BASE METAL DISTRICTS For personal use only BROWNFIELDS SUCCESS BEING FOLLOWED BY GREENFIELDS EXPLORATION 450km Orion Okiep Copper Projects Orion Areachap Projects Refer ASX/JSE releases 2 February 2021 and 2 August 2021 PAGE 3
Slide 4: Our Mission
OUR MISSION FULLY INTEGRATED FROM EXPLORATION TO MARKET For personal use only PRODUCING FUTURE FACING METAL PRODUCTS – ESG CERTIFIED METALS, TRACKED VIA BLOCKCHAIN FROM EXPLORATION TO SALE PAGE 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT For personal use only Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 4,750M Tembo Capital (EU/Netherlands) 21.7 Options on issue 348M Delphi Group (EU/Germany) 13.3 Cash on hand 2 AUD3.5M IGO Limited (Australia) 3.2 AASMF Loan 3 AUD1.9M Or
Slide 6: Areachap Projects
For personal use only Areachap Projects For further information, contact: PAGE 6
Slide 7: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS For personal use only NW Hutchings Shaft SE Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Refer ASX/JSE release 15 January 2019 PAGE 7
Slide 8: Prieska (PCZM) Copper Zinc Project (70%)
PRIESKA (PCZM) COPPER ZINC PROJECT (70%) For personal use only The orebody • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% Zn • Increased Mineral Reserve: 14.5Mt @ 1.1% Cu and 3.2% Zn Foundation phase as per BFS-20 outcomes • Initial 12-year, 2.4Mtpa operation, targeting 22ktpa Cu and 7
Slide 9: Key Challenges for Orion with PCZM
KEY CHALLENGES FOR ORION WITH PCZM For personal use only • High capital, long lead-time project o Can we bring forward production and reduce funding? • Skills / Development Team? o Orion is proven as an explorer and study team – but where are the mining team and experience? • Dewatering o What are a
Slide 10: Revised Project Development Strategy
REVISED PROJECT DEVELOPMENT STRATEGY For personal use only STRATEGY ❑ Address perceived high-risk elements of plan to reduce cost of funding ❑ Prove up and implement a low peak funding business plan ❑ Investigate opportunity for early production ❑ Retain ability to scale-up to full scale project (su
Slide 11: Funding Requirements for Pre-Development Works Activities
FUNDING REQUIREMENTS FOR PRE-DEVELOPMENT WORKS ACTIVITIES Funding terms agreed: For personal use only ACTIVITIES SPEND (ZAR ‘m) IDC: R250m Triple Flag: A$10m = R115m Feasibility Studies 19 Early dewatering 216 Definitive agreements anticipated to be finalised before end of 2022 long lead items depos
Slide 12: Dewatering, Trial Mining & Revised BFS Study
DEWATERING, TRIAL MINING & REVISED BFS STUDY FULLY FUNDED (IDC + TRIPLE FLAG) For personal use only Key Project Milestones and Timelines Year 2022 Year 2023 ID Activity Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 1 FULL-SCALE BFS PLAN IMPLEMENTATION ROADMAP 1.1 Full-Scale B
Slide 13: A$120M Non-Binding Term Sheet Signed for Funding Arrangement & Stream Funding Package
A$120M* NON-BINDING TERM SHEET SIGNED FOR FUNDING ARRANGEMENT & STREAM FUNDING PACKAGE FOR PCZM For personal use only • Term Sheet signed with Triple Flag for funding package, including stream finance. Early Funding Arrangement: o Triple Flag is a highly respected precious metal royalty and • A$10m
Slide 14: R250M (A$22M) Pre-Development Funding from IDC
R250M (A$22M) PRE-DEVELOPMENT FUNDING FROM IDC For personal use only • Non-Binding Term Sheet signed for R250m pre-development funding • Drafting of Definitive Agreements at advanced stage - expect execution late 2022 • IDC funding at South African holding company level (HoldCo) o Convertible loan •
Slide 15: PCZM Funding Structure Agreed with IDC and Triple Flag
PCZM FUNDING STRUCTURE AGREED WITH IDC AND TRIPLE FLAG For personal use only Orion 100% Areachap 1 100% IDC R250m Convertible loan will convert to approx R284m @ 12% owed to Orion 23% of PCZM Holdco – 16% beneficial of PCZM Agama R706m s/h loan IDC 100% Community Trust Employee Trust Prieska R250m c
Slide 16: Development/Operations Team Now in Place
DEVELOPMENT/OPERATIONS TEAM NOW IN PLACE Respected professionals selected to lead project development For personal use only Johan Stoltz Stoffies Odendaal Ben Otukile 27 years mining experience 35 years mining experience 15 years mining experience Executive Operations o Ultra Deep Massive Mechanised
Slide 17: Dewatering – Project Metsi ka Pela
DEWATERING – PROJECT “Metsi ka Pela” (Stand-alone Dewatering Project – 3 Years) For personal use only COSTS TO DEWATER THE MINE Metsi-ka- Full-scale Dewatering Plan Pela BFS ZAR 'm 550 1,600 @ a steady state pumping rate of 500m3 hour per hour Currently at Level 288 (below surface) End October 2023
Slide 18: Dewatering – Project Metsi ka Pela
DEWATERING – PROJECT METSI KA PELA Dewatering from Current Water Level for the next 3 years For personal use only ⚫ Water has continued to rise from the natural inflow and is now measured at 288m (310m for BFS-20) below collar level. ⚫ Total water volume of approximately 9.1 million m3 (8.6 million
Slide 19: Shallow Mineral Resources – Early Mining Targets
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS For personal use only • Shallow Mining Plan aims to target mining from the open pit, remnant pillars, while dewatering underway • Feasibility studies underway to fast-track development • Stream Finance and early funding advance, provide opportunity fa
Slide 20: PCZM Resource – Section View Looking North-East
PCZM 105 RESOURCE – SECTION VIEW LOOKING NORTH-EAST For personal use only ⚫ SUB-LEVEL STOPING METHOD TO BE TRIALED REPLACING OPEN PIT https://youtu.be/mozTwnQ1cWU PAGE 20
Slide 21: OCP Projects
For personal use only OCP Projects For further information, contact: PAGE 21
Slide 22: Okiep Copper Project (OCP) (56%-100%)
OKIEP COPPER PROJECT (OCP) (56%-100%) For personal use only • Exercised option to acquire and applying for additional prospecting rights in the Okiep Copper Complex (OCC): • Historical production of +2Mt of copper • Non-JORC resource ex-Goldfields of 52Mt @ 1.3% • JORC Mineral Resource of 11.5Mt at
Slide 23: Okiep – Historical Production Profile
OKIEP – HISTORICAL PRODUCTION PROFILE For personal use only Newmont Goldfields Metorex • Produced 2.1Mt Cu from 121Mt ROM @ 1.9% Cu • Peaked at 2.4Mtpa ROM, mainly from underground mining • Ore sourced from 42 separate mines within the district (20km radius) • Consistently achieved >90% plant recove
Slide 24: Historical Ownership Changes Coincided with Cu Price Lows
OCC HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS For personal use only Copper Price $/ton (real) Mining ceases / mine infrastructure stripped Newmont Goldfields Metorex Source: Peter Major Mergence Capital PAGE 24
Slide 25: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES For personal use only • Mineralised intrusive bodies intrude structures aligned in east-west trending structural corridors • 25% of mineralised corridors hidden under thin surface cover • Modern geophysics expected to assist in detecting mineralisation underneath
Slide 26: NOM – Flat Mines Scoping Study Indicates Robust Economics
NOM – FLAT MINES SCOPING STUDY INDICATES ROBUST ECONOMICS FOR INITIAL TRIAL MINING For personal use only • Industrial Development Corporation (IDC) intend to be our partners • Foundation phase is modelled for 12 years - Concurrent exploration targeting mine expansion • Scoping Study indicates potent
Slide 27: NOMC Timeline: Pre Development
NOMC TIMELINE: PRE DEVELOPMENT Period Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 For personal use only Activities Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mineral Resources Estimation Mine Design and Scheduling Environment and Water Use Licencing Health and Safety Management Systems Mineral Processi
Slide 28: IDC Is Now 43.75% Funding Partner in NOM
IDC IS NOW 43.75% FUNDING PARTNER IN NOM For personal use only IDC Injecting R36million to achieve the following Structure for NOM BEECo Employee Trust Community Trust IDC AMH6 (Lulamile Xate) 100% of 100% 22.22% of 21.53% of 56.25% of 5% of Ords Ords Class E Class C Ords 5% 5% 20% 19.38% 50.62% % e
Slide 29: JMP Project
For personal use only JMP Project For further information, contact: PAGE 29
Slide 30: Enormous Exploration Upside
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT For personal use only Multiple Cu-Zn VMS and Ni-Cu-Co intrusive targets within Orion’s mineral rights • Jacomynspan – Mining Right with potential for sulphide Ni-Cu- PGE-Au open pit & shallow underground mining J
Slide 31: Jacomynspan (50% ORN: 37% African Nickel)
JACOMYNSPAN (50% ORN : 37% AFRICAN NICKEL) POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER For personal use only Granted Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex Investigating innovative proprietary technology to recover Battery Metals and high-value Battery Precursor Products – a va
Slide 32: High Value Future Metal Products
HIGH VALUE FUTURE METAL PRODUCTS For personal use only Carbonyl Nickel Refining at Jinchuan China Micro granular Fe (left) and Ni (right) metal carbonyl powders Currently available on market PAGE 32
Slide 33: Australia JV with IGO
For personal use only Australia JV with IGO For further information, contact: PAGE 33
Slide 34: Exploration: Australia Fraser Range
EXPLORATION: AUSTRALIA FRASER RANGE (10-30% ORN FREE CARRIED) – JV WITH IGO For personal use only Location of Pike Project (IGO: ORN JV) relative to Legend Mining’s Mawson Ni-Cu discovery Pike Project • ORN 30% free-carried by IGO through to first Pre-Feasibility study • 2019 diamond drilling inters
Slide 35: Appendices
For personal use only Appendices For further information, contact: PAGE 35
Slide 36: ESG – Core Focus of Our Business
ESG – CORE FOCUS OF OUR BUSINESS For personal use only • BEE (30%) Black Empowerment for mining projects of which: • 20% Entrepreneurs • 5% Community Trust • 5% Employee Trust • Community focused • Environmentally conscious Mining Indaba Award 2022 (Junior Enhanced Labour Standards) AAMEG Award 2020
Slide 37: Green Power – Green Footprint
GREEN POWER – GREEN FOOTPRINT For personal use only • Water conservation and recycling – tailings water available for re-use and excess delivered to local community for irrigation • Tailings – predominantly in ground placement / void filling / carbon sequestration Renewable Energy Advantage • 170MW
Slide 38: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES For personal use only Fourth Industrial Revolution (4IR) enabled • Orion will be an industry leader within South Africa, adopting next generation technology and work practices • Fresh start - no workplace or IR legacy issues • High tech and mechanised - minimising empl
Slide 39: PCZM – A Green Metal Producer
PCZM – A GREEN METAL PRODUCER For personal use only Scope 1+2 - Carbon Neutral target Mine sales – potentially attract “green” premium Investigating Battery Precursor Production Desirable for offtake customers ESG – investment eligibility Cost savings – carbon credits / low emissions PAGE 39
Slide 40: Beneficiation Investigations
BENEFICIATION INVESTIGATIONS For personal use only Potential to unlock value locally, using beneficiation to produce Orion commissioning testwork and scoping feasibility assessments on: “Future Metal Products” • Modified carbonyl and chlorine • Abundant solar and wind renewable energy installed or b
Slide 41: A New Future Metals Giant in the Making
A NEW FUTURE METALS GIANT IN THE MAKING FAST-TRACKING TOWARDS DEVELOPMENT AND PRODUCTION For personal use only • Two brownfields development assets in South Africa’s Northern Cape • Extensive upside exploration potential, high-quality Mineral Resources • Mineral Rights include known deposits of Copp
Slide 42: Future Facing Metals
FUTURE FACING METALS For personal use only DEVELOPMENT ADVANCED EXPLORATION READY STAGE UPSIDE South Africa Australia Prieska (PCZM) Okiep Copper Project (OCP) Jacomynspan (JMP) Boksputs Fraser Range 70% ownership 56-70% ownership 50-70% ownership Earning 10-30% free carried 70% ownership to feasibi
Slide 43: PCZM Project BFS 2020: Executive Dashboard
PCZM PROJECT BFS 2020: EXECUTIVE DASHBOARD Key assumptions and Project Performance Parameters For personal use only Price and FX Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 6,680 NPV (pre-tax) @8% discount rate ZAR (M) 8,566 AUD (M) 779 NPV % Change -15%
Slide 44: NOM – Flat Mines Pilot Project Scoping Study
NOM – FLAT MINES PILOT PROJECT SCOPING STUDY For personal use only Executive Dashboard Price and Forex Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 7,593 NPV (pre-tax) approximated @10% discount rate ZAR (M) 1,896 AUD (M) 170 Metal price – Au USD/oz 1,889
Slide 45: Senior Management
SENIOR MANAGEMENT For personal use only Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Projects Corordinator Executive: Finance & Consulting Group Corporate Social Chief Executive Officer Company Secretary
Slide 46: Board of Directors
BOARD OF DIRECTORS For personal use only Denis Waddell Errol Smart Alexander Haller Mark Palmer Godfrey Gomwe Tom Borman Chairman Managing Director & Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Denis is a Chartered Errol is a Ge
Slide 47: Orion Minerals Limited
For personal use only Orion Minerals Limited Level 21, 55 Collins Street Melbourne Vic 3000 Australia For further information, contact: Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au ASX/JSE: ORN PAGE 47
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