Australian Mines Limited · ASX:AUZ
Australian Mines — Investor Presentation (November 2022)
27 slides from Australian Mines's investor presentation, Nov 22, 2022
Slide 1: Capital Raising Presentation
Capital Raising Presentation November 2022 The pathway to developing the Sconi Project into a producer of nickel and cobalt sulphate australianmines.com.au ASX I AUZ
Slide 2: Disclaimer
Disclaimer Forward Looking Statement: This document may contain forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’,
Slide 3: Sconi Project - Overview
Sconi Project - Overview Bell Creek ▪ Tier-1 nickel-cobalt-scandium asset in Queensland, Australia ▪ Clear pathway to production of Nickel and Cobalt Sulphate with potential of Scandium Oxide1 Minnamoolka ▪ Offtake Agreement in Place with LG Energy Solution and in discussions regarding amendment and
Slide 4: Experienced Leadership Team - Driving growth and development
Experienced Leadership Team - Driving growth and development Michael Holmes Chief Executive Officer ✓ Experienced board enhanced by the appointment of new CEO BEng, FAusIMM Michael Holmes who commenced in September Over 30 years’ experience in mining project ✓ Extensive experience in leadership of s
Slide 5: Sconi Project - Transition to Sulphate Production
Sconi Project - Transition to Sulphate Production Sconi Nickel-Cobalt-Scandium Project ✓ Lowest cost quartile with a 30+ year mine life ✓ Potential to expand the current Mineral Resource with additional targets identified4 ✓ Potential to add value through commercialisation of Scandium by-product ove
Slide 6: Sconi Project – Economics
Sconi Project – Economics5 30 Year Project Life Pre-Tax IRR: 20% Pre-Tax NPV: $1.47 Billion 5.8 Year Payback Period Post-Tax IRR: 15% Post-Tax NPV: $817 million (post tax) (@ 8% discount rate) Strong Forecasted Life-of-Mine Average Operating Costs: Capital Cost Estimate: Financials Production US$1.4
Slide 7: Sconi Project – Strategic Pathway to Final Investment Decision
Sconi Project – Strategic Pathway to Final Investment Decision Secure strategic Update BFS collaborative partner ✓ Discussions underway with LGES about sulphate product and strategic collaborative partnership targeting 31 March 2023 ✓ Update to BFS and integrate findings from ongoing test work and t
Slide 8: Sconi Project – Supportive demand and market dynamics
Sconi Project – Supportive demand and market dynamics Nickel Product Economics10 (Indicative Nickel product payability vs metal spot price) ✓ Economics of nickel & cobalt sulphate production superior to MHP ✓ At least 384 new graphite, lithium, nickel and cobalt mines are AUZ transitioning Sconi to
Slide 9: Sconi Project - Scandium potential and market
Sconi Project - Scandium potential and market SCANDIUM MARKET ▪ Designated a ‘Critical Mineral’ by the US Geological Survey SCANDIUM AT SCONI ▪ Solid oxide fuel cells and aluminium-scandium alloys the main demand drivers ▪ Sconi estimated to produce 1,441t of scandium or 2,217t of ▪ Current world ma
Slide 10: Sconi Project – Funding Strategy
Sconi Project – Funding Strategy ✓ Focusing on the attainment of a Strategic Collaborative Partner capable of providing equity support for the project, including: ✓ Ability to fund the company through to financial investment decision (FID) ✓ Completion guarantee or cost overrun facility as may be re
Slide 11: Near Term Catalysts and Milestones
Near Term Catalysts and Milestones FY23 Targeted Collaborative Partnership agreement and Sponsorship to fund the company through to FID Monetization of non-core assets through partnerships and/or divestments Feasibility Study Update Announcement Preparation and Submission of Environmental Impact Sta
Slide 12: Sconi Project - Summary
Sconi Project - Summary ✓ Right project – nickel and cobalt sulphate with resource expansion and scandium oxide upside ✓ Right time – strategic pathway to production to meet surging demand from electric vehicle and battery storage sectors • Over 300 new mines needed within 10 years12 ✓ Right market
Slide 13: Capital Raising Details
Capital Raising Details Pre-Paid Share Subscription Agreements Underwritten Entitlement Offer
Slide 14: Subscription Agreement Overview
AUSTRALIAN MINES Subscription Agreement Overview Overview The Investors will pre-pay a total of $4,550,000 in return for the Options and a credit amount worth $5,000,000 Commitment Fee Fees totalling $150,000 are payable to the Investors On payment, AUZ will issue the Investors a total of 25,000,000
Slide 15: Capital Raising Overview
AUSTRALIAN MINES Capital Raising Overview • AUZ is undertaking a pro rata non-renounceable entitlement offer of 1 new share for every 9.8 shares on issue to existing shareholders to raise approximately A$2.8m (“Entitlement Offer”) Capital Raising • A$1.3m of the Entitlement Offer is underwritten, wi
Slide 16: Uses of Funds
AUSTRALIAN MINES Uses of Funds Sources of funds A$m Underwritten Entitlement Offer $2.80m Pre-Paid Equity Facility $4.55m - Use of funds • Expansion of senior leadership team to manage the Total $7.35m environmental monitoring and works, technical studies and test work and onsite activities • Explor
Slide 17: Indicative Timetable
AUSTRALIAN MINES Indicative Timetable Event Indicative Date14 Announcement of Subscription Agreements and Entitlement Offer 23 November 2022 Entitlement Offer Record Date 28 November 2022 Entitlement Offer prospectus dispatched and Entitlement Offer opens 1 December 2022 Entitlement Offer closes 5.0
Slide 18: Appendix
IN Appendix
Slide 19: Competent Persons’ Statements
APPENDIX Competent Persons’ Statements Sconi Project, Queensland (Australia) The Mineral Resource for the Sconi Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource for the Greenvale, Lucknow and Kokomo deposits within the Sconi Project were first repo
Slide 20: Key Risks
AUSTRALIAN MINES Key Risks The Company has identified the following non-exhaustive list of some of the key risks which investors need to be aware of in evaluating the Company’s business and investing in its Securities. There is no guarantee that other factors will not affect the Company in the futur
Slide 21: Key Risks
AUSTRALIAN MINES Key Risks The Company’s future revenue will be mainly derived from the sale of nickel and cobalt. Consequently, the Company’s ability to attract funding for further exploration of its projects and/or potential future earnings could be closely related to the price of nickel and cobal
Slide 22: International Offering Jurisdictions
AUSTRALIAN MINES International Offering Jurisdictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be of
Slide 23: International Offering Jurisdictions Continued
AUSTRALIAN MINES International Offering Jurisdictions Continued This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may
Slide 24: Sconi Project Mineral Resources
APPENDIX Sconi Project Mineral Resources Table 1: Greenvale Mineral Resource Mineral Resources as per Australian Mines’ announcement released via the ASX platform on 14 February 2019. Prepared by CSA Global in accordance with the current 2012 JORC Code. There has been no Material Change or Lower cut
Slide 25: Sconi Project Mineral Resources
APPENDIX Sconi Project Mineral Resources Table 4: Bell Creek Mineral Resource Mineral Resources as per Australian Mines’ announcement released via the ASX platform on 29 April 2019. Prepared by Mr Mick Elias in accordance with the current 2012 JORC Code. There has been no Material Change or Lower cu
Slide 26: Sconi Project Ore Reserve
APPENDIX Sconi Project Ore Reserve Ore Reserve as per Australian Mines’ announcement released via the ASX platform on 13 June 2019. Prepared by specialist mine planning consultants, Orelogy, in accordance with the current 2012 JORC Code. There has been no Material Change or Re-estimation of the Ore
Slide 27: Powering the Future of Clean Energy
POWERING THE FUTURE OF CLEAN ENERGY ASX I AUZ australianmines.com.au sconi.com.au
Australian Mines — Investor Presentation (November 2022) on 6ix