Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2023)
47 slides from Orion Minerals's investor presentation, February 2023
Slide 1: Investor Presentation February 2023
Errol Smart / Managing Director and CEO PAGE Presentation / February 2023
Slide 2: Disclaimer
DISCLAIMER 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 grades and recovery rat
Slide 3: Focus on Two Highly Prospective South African Base Metal Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN BASE METAL DISTRICTS 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 PRODUCING FUTURE FACING METAL PRODUCTS – ESG CERTIFIED METALS, TRACKED VIA BLOCKCHAIN FROM EXPLORATION TO SALE PAGE 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 4,755M Tembo Capital (EU/Netherlands) 21.6 Options on issue 348M Delphi Group (EU/Germany) 13.3 Cash on hand 2 AUD2.7M IGO Limited (Australia) 3.2 AASMF Loan 3 AUD2.0M Orion Directors 8.9 IDC
Slide 6: Areachap Projects
Areachap Projects PAGE 6
Slide 7: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS 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%) 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 70ktpa Zn • Life-of-min
Slide 9: Key Challenges for Orion with PCZM
KEY CHALLENGES FOR ORION WITH PCZM • High capital, long lead-time project • Can we bring forward production and reduce funding? • Skills / Development Team? • Orion is proven as an explorer and study team – but where are the mining team and experience? • Dewatering • What are alternatives to reduce
Slide 10: Revised Project Development Strategy
REVISED PROJECT DEVELOPMENT STRATEGY • 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 (subject to funding ava
Slide 11: Funding Requirements for Pre-Development Works Activities
FUNDING REQUIREMENTS FOR PRE-DEVELOPMENT WORKS ACTIVITIES • Funding terms agreed: Spend Profile per Quarter to Final Investment Decision • IDC: ZAR250M Fund-raising & Establishment Phase – • Definitive agreements progressed Study & Trial Mining Phase – ZAR165M ZAR280M 60 • Draw down of funds expecte
Slide 12: Dewatering, Trial Mining & Revised BFS Study
DEWATERING, TRIAL MINING & REVISED BFS STUDY FULLY FUNDED (IDC + TRIPLE FLAG) Key Project Milestones and Timelines Year 2022 Year 2023 Use trial mining to prove ID Activity Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Early Mining 1 FULL-SCALE BFS PLAN IMPLEMENTATION ROADMAP
Slide 13: AUD128M Definitive Agreements Signed for Funding
AUD128M* DEFINITIVE AGREEMENTS SIGNED FOR FUNDING ARRANGEMENT & STREAM FUNDING PACKAGE FOR PCZM • Definitive agreements signed with Triple Flag for funding Early Funding Arrangement: package, including stream finance. • AUD10M to be advanced against calculated • Triple Flag is a highly respected pre
Slide 14: ZAR250M (AUD22M) Pre-Development Funding from IDC
ZAR250M (AUD22M) PRE-DEVELOPMENT FUNDING FROM IDC • Non-Binding Term Sheet signed for ZAR250M pre-development funding • Drafting of Definitive Agreements at advanced stage ‒ expect execution Q1 CY2023 • IDC funding at South African holding company level (HoldCo) • Convertible loan • Term: 36 months
Slide 15: PCZM Funding Structure Agreed with IDC and Triple Flag
PCZM FUNDING STRUCTURE AGREED WITH IDC AND TRIPLE FLAG Orion 100% Areachap 1 100% IDC R250M Convertible loan will convert to approx ZAR284M @ 12% owed to 23% of PCZM Holdco – 16% beneficial of PCZM Agama Orion 100% ZAR706M s/h loan IDC Community Trust Employee Trust Prieska ZAR250M convertible loan
Slide 16: Development/Operations Team Now in Place
DEVELOPMENT/OPERATIONS TEAM NOW IN PLACE RESPECTED PROFESSIONALS SELECTED TO LEAD PROJECT DEVELOPMENT Johan Stoltz Stoffies Odendaal Ben Otukile 27 years mining experience 35 years mining experience 15 years mining experience • Ultra Deep Massive Mechanised Mining • Ultra Deep Mining • Ultra Deep Mi
Slide 17: Dewatering – Project Metsi Ka Pela
DEWATERING – PROJECT “METSI KA PELA” (STAND-ALONE DEWATERING PROJECT – 3 YEARS) 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 estimated to be at Lev
Slide 18: Dewatering – Project Metsi Ka Pela
DEWATERING – PROJECT METSI KA PELA Dewatering from Current Water Level for the next NW Hutchings Shaft SE 3 years Water level* • Water has continued to rise Currently at Level 288 from the natural inflow and is now measured at 288m (310m for BFS-20) below Oct 2023 at Level 423 collar level. Current
Slide 19: Shallow Mineral Resources – Early Mining Targets
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS • 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 fast-track development N
Slide 20: PCZM Resource – Section View Looking North-East
PCZM 105 RESOURCE – SECTION VIEW LOOKING NORTH-EAST SUB-LEVEL STOPING METHOD TO BE TRIALED REPLACING OPEN PIT https://youtu.be/mozTwnQ1cWU PAGE 20
Slide 21: OCP Projects
OCP Projects PAGE 21
Slide 22: Okiep Copper Project (OCP) (56%-100%)
OKIEP COPPER PROJECT (OCP) (56%-100%) • 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 1.4% Cu, containing 15
Slide 23: Okiep – Historical Production Profile
OKIEP – HISTORICAL PRODUCTION PROFILE 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 recoveries to >30% Cu in con
Slide 24: OCC Historical Ownership Changes Coincided with Cu Price Lows
OCC HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS 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 • 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 the thin cover • Ori
Slide 26: NOM – Flat Mines Scoping Study Indicates Robust Economics
NOM – FLAT MINES SCOPING STUDY INDICATES ROBUST ECONOMICS FOR INITIAL TRIAL MINING • Industrial Development Corporation (IDC) to be our project partners • Foundation phase is modelled for 12 years - Concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust pilot-
Slide 27: NOMC Timeline: Pre Development
NOMC TIMELINE: PRE DEVELOPMENT Period Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 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 Processing Design Infrastructu
Slide 28: IDC Is Now 43.75% Funding Partner in NOM
IDC IS NOW 43.75% FUNDING PARTNER IN NOM IDC Injecting ZAR35M 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% % economic participation NOM
Slide 29: JMP Project
JMP Project PAGE 29
Slide 30: Enormous Exploration Upside
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT 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 Jacomynspan • Several h
Slide 31: Jacomynspan (50% ORN : 37% African Nickel)
JACOMYNSPAN (50% ORN : 37% AFRICAN NICKEL) POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER 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 value game changer Refer
Slide 32: High Value Future Metal Products
HIGH VALUE FUTURE METAL PRODUCTS 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
Australia JV with IGO PAGE 33
Slide 34: Exploration: Australia Fraser Range
EXPLORATION: AUSTRALIA FRASER RANGE (10-30% ORN FREE CARRIED) – JV WITH IGO 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 intersected Ni-Cu sulphides
Slide 35: Appendices
Appendices PAGE 35
Slide 36: ESG – Core Focus of Our Business
ESG – CORE FOCUS OF OUR BUSINESS • 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 (Junior Mining Leader
Slide 37: Green Power – Green Footprint
GREEN POWER – GREEN FOOTPRINT • 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 Solar Power and 200MW
Slide 38: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES 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 employee exposure to high-
Slide 39: PCZM – A Green Metal Producer
PCZM – A GREEN METAL PRODUCER 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 Potential to unlock value locally, using beneficiation to produce Orion commissioning testwork and scoping feasibility assessments on: “Future Metal Products” • Modified carbonyl and chlorine metal vapour technology • Abundant solar and wind renewable energy installed or
Slide 41: A New Future Metals Giant in the Making
A NEW FUTURE METALS GIANT IN THE MAKING FAST-TRACKING TOWARDS DEVELOPMENT AND PRODUCTION • Two brownfields development assets in South Africa’s Northern Cape • Extensive upside exploration potential, high-quality Mineral Resources • Mineral Rights include known deposits of Copper, Zinc, Nickel, Coba
Slide 42: Future Facing Metals
FUTURE FACING METALS 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 feasibility Copper-Zinc Coppe
Slide 43: PCZM Project BFS 2020: Executive Dashboard
PCZM PROJECT BFS 2020: EXECUTIVE DASHBOARD Key assumptions and Project Performance Parameters 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% -10% -5% 0% +5% +10%
Slide 44: NOM – Flat Mines Pilot Project Scoping Study
NOM – FLAT MINES PILOT PROJECT SCOPING STUDY 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 NPV (post-tax) approx
Slide 45: Senior Management
SENIOR MANAGEMENT Martin Louw van Errol Smart Peet van Coller Bouwmeester Mark Meyer Johan Stoltz Schalkwyk Nelson Mosiapoa Marcus Birch Managing Director & Chief Financial Officer Company Secretary Executive: Executive: Consulting Group Corporate Social Executive: Chief Executive Officer Operations
Slide 46: Board of Directors
BOARD OF DIRECTORS 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 Geologist, with Alexande
Slide 47: For further information, contact: Orion Minerals Limited
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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