Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Non-Deal Roadshow (April 2017)
21 slides from Aurelia Metals's roadshow presentation, Apr 27, 2017
Slide 1: Corporate Presentation – Investor Road Show April 2017
For personal use only CORPORATE PRESENTATION Investor Road Show – April 2017
Slide 2: Forward Looking Statement
Forward Looking Statement For personal use only This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation
Slide 3: Corporate Information
Corporate Information ASX Code AMI For personal use only Market Cap $82M (at 19c/share) Issued Capital 431M Shares 10M options at 1.25c with Pacific Road 6.5M Perf. Rights Net debt $80M 31 Mar 17 ($94M 31 Dec 16) Cash $32M (Mar 16) Debt $112M (Mar 16) Key shareholders PacRoad 33.6% Glencore 6.7%, Yu
Slide 4: Key Assets – Gold, lead, zinc, silver & copper
Key Assets – Gold, lead, zinc, silver & copper Hera Mine (100%) Gold, lead, zinc, silver production For personal use only Central NSW FY16 Production 47 koz Gold, 7.9 kt Pb and 7.2 kt Zn Resources (Jun 16)(1) 2.70 Mt at 4.1 g/t Au, 3.7% Pb, 4.9%Zn (NSR A$344/t) Reserves (Jun 16) (1) 0.98 Mt at 5.1 g
Slide 5: Key Assets – Located in the productive Cobar Region
Key Assets – Located in the productive Cobar Region For personal use only Bourke Endeavour Zn/Pb/Ag (Toho) Australia CSA Cu (Glencore) NSW Cobar Nyngan Peak Au/Cu (New Gold) Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Mallee bull Cu/Pb/Zn project (Peel/CBH) Newcastle ORANGE Parkes Wonawinta Ag
Slide 6: Key Assets – Cobar Region long section
Key Assets – Cobar Region long section For personal use only Australia NSW 6
Slide 7: Strong operating performance
Key Focus – Deliver strong operating performance For personal use only Annualised throughput Gold Recovery Aurelia Metals Limited kt 90% Hera Qtly Gold Recovery & Process Throughput 410 89% 88% 88% Annulised throughput 390 86% Gold recovery 84% 370 84% 84% 350 82% 80% 81% 330 78% 310 76% 290 74% 270
Slide 8: Gold Production
Key Focus – Gold Production For personal use only oz Aurelia Metals Limited Hera Qtly Gold Production 16,000 14,184 14,035 14,000 13,425 12,492 12,000 10,000 9,340 8,000 6,000 4,000 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 8
Slide 9: Base Metal Concentrate Production
Key Focus – Base Metal Concentrate Production For personal use only dmt Aurelia Metals Limited Hera Qtly Concentrate Production 14,000 Current capacity 12,000 10,000 9,367 8,081 8,018 8,000 7,171 5,874 6,000 4,000 2,000 0 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Concentrate is a Bulk Pb/Zn Concentrate gra
Slide 10: Rising Base Metal Prices
Key Focus – Rising Base Metal Prices For personal use only Base Metal Price Aurelia Metals Limited US$/t Commodity Price Trends 3,000 2,800 Zinc price US$/t 2,600 Lead price US$/t 2,400 2,200 2,000 1,800 1,600 10
Slide 11: Lower total cost
Key Focus – Deliver lower total cost For personal use only A$/t Aurelia Metals Limited processed Hera Unit Costs ($/t processed) Site Operating Cost (mine+proc+admin) Sustaining Capital 250 250 232 200 191 200 182 164 164 150 150 100 100 161 171 154 138 134 50 50 0 0 Mar-16 Jun-16 Sep-16 Dec-16 Mar-
Slide 12: Strong cash margin
Key Focus – Deliver strong cash margin For personal use only Aurelia Metals Limited A$/oz AISC (All in Sustaining Cost) v Achieved Gold Price 1,900 1,800 1757 1687 1,7001635 1631 1613 1,600 1,500 1,400 1,300 1,200 1238 1,1001153 1,000 1043 900 Achieved Gold Price 800 AISC A$/oz 821 700 600 666 Mar-1
Slide 13: Reduced net debt
Key Focus – Deliver reduced net debt • Debt reduction to provide optionality leading up to 31 Mar 18 For personal use only • Option to convert up to $73M of $112M debt just prior to 31 March 18 • Options to repay/refinance or allow existing debt (covenant light) to run its course A$M Aurelia Metals
Slide 14: Growth in mine life
Key Focus – Deliver growth in mine life For personal use only S N N As built mine development North Pod Stoped areas (purple) Planned 500 m below surface Stopes Planned mine development Priority Targets 14
Slide 15: Growth in mine life
Key Focus – Deliver growth in mine life For personal use only Structural Repetition Target Zone • Potential for northern extensions of Hera lode system N North Pod 200m • Utilise downhole geochem and geophysics as tools to Far West Hays North vector to mineralisation Main North Hera Mine Plan Showin
Slide 16: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) For personal use only Nymagee Nymagee Cu/Pb/Zn Copper Project • Historic mine and current resource, located 5km north of Hera Mine • Ability to leverage off Hera N mine infrastructure 5 km Hera Mine Lease boundary 16
Slide 17: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) Nymagee Long Section For personal use only Nymagee Cu/Pb/Zn • Current large (8Mt) relative low grade resource down to Current Resource Shell 500 m below surface • Cu grade 1.2% 300 m below surface • Pb+Zn grade 1% • Scoping Study underway to understa
Slide 18: Growth in mine life (Mine Trend)
Key Focus – Deliver growth in mine life (Mine Trend) For personal use only Mine Corridor • Hera-Nymagee corridor remains highly prospective • The Hera & Nymagee deposits are both marked by prominent gravity highs • Several gravity targets have been defined along 20km of strike • Potential for Hera-N
Slide 19: Shareholder Returns
Key Focus – Deliver Shareholder Returns For personal use only $/share Aurelia Metals Limited Cash in bank $M Share Price Trend v Cash in Bank 0.30 35 AMI Share Price 30 0.25 Cash in bank 25 0.20 20 0.15 15 0.10 10 0.05 5 0.00 0 19
Slide 20: Conclusion – Strategy to Deliver
Conclusion Strategy to Deliver For personal use only Generate cash Continuously improve operational performance - Continuous improvement in recovery and throughput - Minimise unit costs - Fast track mine plan to access North Pod high grade Reduce net debt Reduce gearing, reduce financial risk - buil
Slide 21: Competent Persons Statement
Competent Persons Statement Competent Persons Statement – Exploration Results Competent Persons Statement – Nymagee Resource Estimate For personal use only The Resource Estimation for Nymagee was completed in 2011 by Mr Dean Fredericksen, then the Chief Operating Officer of Aurelia Metals Ltd who wa