Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Investor Presentation (May 2024)
36 slides from Ardea Resources's investor presentation, May 9, 2024
Slide 1: A multi decade nickel-cobalt operation
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Andrew Penkethman Managing Director & CEO Update on Transformational Strategic Partnership May 2024
Slide 2: Disclaimer
Disclaimer Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 N
Slide 3: Experienced Board, Supportive Shareholders & Tight Capital Structure
Experienced Board, Supportive Shareholders & Tight Capital Structure Mat Longworth Andrew Penkethman Ian Buchhorn Maree Arnason Sam Middlemas Non-Executive Chair Managing Director & CEO Executive Director Non-Executive Director Company Secretary Experienced across exploration, Experienced geologist
Slide 4: The Right People – With The Right Expertise
The Right People – With The Right Expertise Rebecca Moylan Matthew Read Mike Miller Alex Mukherji Matthew McCarthy Chief Financial Officer Project Director General Manager – General Manager – General Manager – Technical Services Land Access Geology & Exploration Experienced CFO with expertise Experi
Slide 5: Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource • KNP – Goongarrie Hub, 70km northwest of the City KNP of Kalgoorlie-Boulder is in the best operating jurisdiction in the world with collaboration agreement with best possible Strategic Partners, SMM and MC • Major Project Sta
Slide 6: Successful Conclusion of Strategic Partner Process – Major Milestone
Successful Conclusion of Strategic Partner Process – Major Milestone • Strategic Partners selected for the globally significant KNP – Goongarrie Hub located in the tier 1 mining jurisdiction of WA1 • Ardea has executed a binding Cooperation Agreement to form a 50:50 incorporated JV with Sumitomo Met
Slide 7: Significant Critical Minerals Collaboration
Significant Critical Minerals Collaboration “Ardea has aligned the Company with the best possible strategic partners, Sumitomo Metal Mining and Mitsubishi Corporation, to assist in realising the full potential of the Kalgoorlie Nickel Project – Goongarrie Hub” Top: Ardea’s CEO part of Austrade Japan
Slide 8: What does Ardea Bring to the Joint Venture?
What does Ardea Bring to the Joint Venture? Globally Significant Asset • Goongarrie Hub – MRE 584Mt @ 0.69% Ni & 0.043% Co for 4Mt contained Ni & 250Kt contained Co • Ore Reserve of 194Mt @ 0.7% Ni & 0.05% Co for 1.36Mt of contained Ni & 99Kt contained Co1 Wealth of data and knowledge • Comprehensiv
Slide 9: What does the Consortium Bring to the Joint Venture?
What does the Consortium Bring to the Joint Venture? Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC) – the Consortium • Will form an Incorporated Joint Venture (80% SMM, 20% MC) to ultimately acquire 50% interest in KNPL1 SMM and MC will provide 100% Funding for the KNP Goongarrie Hub DF
Slide 10: Kalgoorlie Nickel Project Resource in Top 10 Globally
Kalgoorlie Nickel Project Resource in Top 10 Globally Top 10 Note: • Contained Ni Metal is reported Total Mineral Resource (M+I+Inf) Page 10 • See References for Global Nickel Resource chart in Appendices
Slide 11: Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers
Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers • Goongarrie Hub Ore Reserve2 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years • Strong financial metrics wi
Slide 12: KNP Goongarrie Hub – Low Cost Nickel Laterite Production
KNP Goongarrie Hub – Low Cost Nickel Laterite Production KNP Goongarrie Hub Low C1 Opex after Cobalt credit of US$5,763/t Ni in MHP LOM1 compares well with Indonesian Opex and lower than most sulphide producers Page 12 1. See full tables in Appendix and 5 July 2023 ARL ASX Announcement.
Slide 13: Premium Goethite Nickel and Cobalt Ore
Premium Goethite Nickel and Cobalt Ore Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Mining • Open-pit, soft, mainly free-digging To Siberia North To Kalgoorlie - Boulder • 2023 PFS pit schedule very low strip ratio of 1.8:1 (waste:ore) LOM • Conventional
Slide 14: ESG Credentials Strengthened During PFS
ESG Credentials Strengthened During PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 15: PFS Key Financial Metrics
PFS Key Financial Metrics PFS defines > 40-year Financials A$ M 44,429 Nickel Revenue operation with strong Cobalt Revenue A$ M 7,880 financial metrics1: Revenue - combined EBITDA LOM A$ M A$ M 52,309 34,217 • Pre-tax NPV7 of A$7,625M (IRR 30%) EBITDA Annual (average) A$ M 800 EBITDA margin % 65% •
Slide 16: KNP Goongarrie Hub DFS Early Works
KNP Goongarrie Hub DFS Early Works1 • Finalised the DFS Program and Budget for work packages assessment for awarding of key bids • Hydrogeology aircore drilling program commenced to quantify long-term water supply (aiming for 40 year life-of-mine) • Reports on expanded baseline environmental surveys
Slide 17: DFS Key Budget Items
DFS Key Budget Items The Consortium (SMM and MC) will DFS Cost Centre Costs (A$) 13.4M fund 100% of the KNP Goongarrie Drilling Hub DFS costs, up to the agreed Metallurgical Test Work 2.3M Mine Design 15.0M budget of A$98.5 million (incl dewatering & geotechnical) Process Plant Design 28.3M Building
Slide 18: Upcoming DFS to commence detailed mine plan to support potential increase in processing capacity
Upcoming DFS to commence detailed mine plan to support potential increase in processing capacity to 4Mtpa from 3.5Mtpa 2023 PFS Proposed KNP Goongarrie Hub - Plant Layout PFS 5 July 2023 Page 18
Slide 19: Ardea Exploration Pipeline Upside
Ardea Exploration Pipeline Upside Ardea controls >4,400km2 of tenure in the Eastern Goldfields of WA with unrivalled Battery and Critical Mineral exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m)
Slide 20: Key Investment Considerations – For a Must Have Nickel-Cobalt Stock
Key Investment Considerations – For a Must Have Nickel-Cobalt Stock Ardea, Sumitomo Metal Mining and Mitsubishi Corporation to form a Joint Venture to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub; DFS early works have commenced KNP is a strategic asset which includes the Goongarrie H
Slide 21: Andrew Penkethman
Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 Our team welcome your questions ardea@ardearesources.com.au
Slide 22: Appendices: Full tables and supporting references
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Appendices: Full tables and supporting references
Slide 23: Competent Persons
Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 July 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX MOU Announcements 5 July 2023, 29 September 2023, 21 December 2023 and 31 January 2024. Information in this presentation th
Slide 24: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade The Competent Persons (CP) for the Mineral Resources, are Contained Contained Mr Ian Buchhorn and Mr Andrew Penkethman, both are full-time KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (
Slide 25: KNP Goongarrie Hub MRE
KNP Goongarrie Hub MRE KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Resource Size Ni Co Contained Metal Estimation Details Prospect Category (Mt) (%) (%) Ni (kt) Co (kt) Method Source Year Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Goongarrie The Competen
Slide 26: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore Ni Co Ni Co Ni Co Ni Co Ni Co Ni Co KNP Goongarrie Hub Ore Reserve Summary consisting of Deposit Mt % % kt kt Mt % % kt kt Mt % % kt kt ore above 0.5% Ni as the feed stock for the processing Proven facility
Slide 27: Kalgoorlie Nickel Project (KNP) – Strong Fundamentals
Kalgoorlie Nickel Project (KNP) – Strong Fundamentals Granted Mining Lease tenure in Low-cost Ni & Co production, with premier location for infrastructure, strong average annual EBITDA for skills and resource project operation over 40 years3 6.1Mt Nickel & 386kt Cobalt MRE1 Ardea, Sumitomo Metal Min
Slide 28: Nickel output cuts to pressure near term surpluses lower
Nickel output cuts to pressure near term surpluses lower • 2023 large nickel surplus led to significant drop in LME nickel cash price Expected • Higher cost producers have responded Goongarrie Hub by cutting / ceasing production which in production turn has put pressure on supply • 2024-2027 forecas
Slide 29: EV Sales Grow – High Nickel Batteries hold increasing share of market
EV Sales Grow – High Nickel Batteries hold increasing share of market • Nickel batteries, which have nearly twice the energy • Nickel batteries hold a large share of the EV density of other materials, are leading EV applications landscape. High Ni cathodes favoured, with in Domestic, Commercial and
Slide 30: KNP Goongarrie Hub Ore Reserve
Cross Section KNP Goongarrie Hub 669 9364mN Highway Ore Reserve1 • 1.36Mt of nickel metal • 99kt of cobalt metal Goongarrie Hill Cross Section Goongarrie South 666 9600mN Big Four / Scotia Dam Siberia North Page 30 1. See full tables in Appendix and 5 July 2023 ARL PFS ASX Announcement. 70km to Kalg
Slide 31: KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel
KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel Goongarrie South - Pamela Jean Deeps Section 666 9600mN AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m AGSR0418* 42m @ 0.67% Ni, 0.04% Co from 30m 56m @ 1.29% Ni, 0.14%Co from 10
Slide 32: KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore
KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore Highway Section 669 9364mN AHID0012* AHID0012* 20m @ 1.14% Ni, 0.037% Co & 4g/t Sc from 4m AGSR0418 inc 4m @ 2.31% Ni, 0.132% Co & 8g/t Sc from 4m – HPAL feed & inc 8m @ 1.30% Ni, 0.015% Co & 3g/t Sc from 16m – Brown Typical white magne
Slide 33: PFS 2023 – Capital Cost Estimate
PFS 2023 – Capital Cost Estimate KNP – Goongarrie Hub Preproduction Cost Category Costs (A$) • Contingency considered appropriate to the level of the capital cost estimate has been included Mining – overheads, mobilisation, 98M • Base date March 2023 pre-strip and other • Refer to 5 July 2023 ARL PF
Slide 34: Ardea Receives Improved ESG Certification Score 2024
Ardea Receives Improved ESG Certification Score 2024 2024 ESG Scores for Ardea Ardea’s work practices are aimed at meeting or exceeding the high ESG standards expected by modern society with continuous improvement shown in the two Digbee ESGTM surveys completed Page 34
Slide 35: KNP – Goongarrie Hub Superior HPAL Intensity
KNP – Goongarrie Hub Superior HPAL Intensity Good ore grade + good slurry density = Lower Capex & Opex $$ Atmospheric leach = stable operation, utilizes saprolite resource MHP & MSP Product = known technology & good market acceptance Operating data from Australian HPAL Producers Performance Dr
Slide 36: References for Global Nickel Resource Chart
References for Global Nickel Resource Chart Reference Date Title ref. pp Link SLN - Doniambo 26 Apr 2023 Eramet Universal Registration Document 2022 77 https://www.eramet.com/wp-content/uploads/2023/04/2023-04-26-Eramet-URD-2022-EN.pdf Norilsk Division Annual Report 2022 54-55 https://nornickel.com/