Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Shareholder Meeting (November 2019)
28 slides from Aurelia Metals's shareholder meeting presentation, Nov 29, 2019
Slide 1: Building the Next Mid-Tier Gold and Base Metals Producer
For personal use only Building the Next Mid-Tier Gold and Base Metals Producer AURELIA METALS LIMITED (ASX:AMI) Annual General Meeting, 29 November 2019
Slide 2: Forward looking statements
Forward looking statements 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 snapshot
Corporate snapshot ASX code: AMI Share price (25 November $0.44 For personal use only 2019) Shares on issue 867.9m Major shareholders Market capitalisation A$378m Mitsubishi UFJ 6.73% Australian Super 6.06% Board and management Van Eck 5.7% Managing Director and CEO Dan Clifford Non-Executive Chairm
Slide 4: Investment highlights
Investment highlights For personal use only Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling succes
Slide 5: Key assets
Key assets Located in the highly endowed and productive Cobar Region For personal use only Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Nyngan Cobar Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Federation Zn-Pb-Au-Cu-Ag Wonawinta Ag Mallee Bull Cu
Slide 6: Core strategy
Core strategy A mining-for-value approach For personal use only 1 Optimise existing operations Increased development rates and Pb/Zn circuit upgrade at Peak Mine life extension and ongoing efficiencies at Hera 2 Focus on returns Margin over volume or commodity preference Accelerating acces
Slide 7: Community
Community Seeking to deliver mutual benefit For personal use only Peak Majority local employment Quarterly town hall meetings and information sessions Community Consultative Committee Funding contributions for local community projects Event volunteer support Hera Positive and supportive
Slide 8: FY19 financial results summary
FY19 financial results summary Investing in operational capacity and growth For personal use only Performance Indicators Units FY19 FY18 Change Gold production up 21% to 117,521 oz at higher AISC of Sales Revenue A$k 295,002 248,599 19% $1,045/oz Profit Before Tax A$k 51,018 92,306 (45%) Net Pro
Slide 9: September 2019 quarter dynamic
September 2019 quarter dynamic Strong gold and base metal production For personal use only Aurelia Metals Production Summary Units Mar 19 Qtr Jun 19 Qtr Sep 19 Qtr Sep-19 YTD Hera gold produced oz 14,191 13,864 10,535 10,535 Hera gol d s ol d oz 15,161 11,071 12,789 12,789 Hera l ea d produced t 1,3
Slide 10: September 2019 quarter
September 2019 quarter Improved Peak performance For personal use only Peak 11% increase in underground development rates Increased mill throughput and higher grade ore High level of concentrate stocks at quarter end Further success at Kairos and decline commenced Peak Pb/Zn plant upgrade
Slide 11: Managing risk
Managing risk Actively mitigating water allocation risks For personal use only Peak requires approx. 65ML/mth of water Traditionally sourced 50ML/mth from high security water allocation from Burrendong Dam via Cobar Council with the remainder recycled. Possibility of future high security allocat
Slide 12: Guidance FY20
Guidance FY20 Investing in the business For personal use only FY19 actual FY20 outlook Estimated FY20 Group AISC of A$1,050 to A$1,250/oz is based on reference Gold (koz) 118 85 – 95 base and silver metal prices equivalent to those used for the Company’s June 2019 Ore Reserves estimation: lead A$3,0
Slide 13: A look further ahead
A look further ahead FY21 and beyond For personal use only Annual throughput at Peak in FY21 expected to be approaching nameplate 800ktpa capacity Accelerated UG development expected to deliver access to base of Kairos towards end of FY20; strong potential for prioritisation and mining of high m
Slide 14: Peak: The key areas of focus
Peak: The key areas of focus Delivering on the operating and revenue transition For personal use only 1 Increased development rates and focus Access to more stoping blocks = higher throughput = lower overall unit costs from late FY20 2 Prioritising access to high margin ore Progressive Chronos
Slide 15: Hera: The focus ahead
Hera: The focus ahead Driving life and margin For personal use only 1 Re-capture production and cost performance 2 Testing immediate perimeters of Hera orebody 3 Acceleration of Federation and Athena exploration 15
Slide 16: Exploration
For personal use only 16 Exploration
Slide 17: The exploration value driver
The exploration value driver Significant recent drilling success For personal use only Enhanced financial ability and growing geological understanding of controls on mineralisation Early stage but significant results at Federation; large-scale, polymetallic and strong grade tenor Shallow gold
Slide 18: Cobar Line-of-Lode
Cobar Line-of-Lode Targeting high margin mineralisation For personal use only World-class mining area with long history of Focus on discovery of new high margin discovery Peak/Perseverance-style orebodies Prospective trend extends over 10 km Renewed focus on potential for additional Multip
Slide 19: Kairos: high-margin drilling success
Kairos: high-margin drilling success The next Chronos? For personal use only Discovered early 2019; directly beneath Peak decline development Mineralisation style and geological setting similar to Chronos Open in multiple directions Very high grade intercepts, including: 16m at 71.6g/t Au
Slide 20: Kairos: high-grade Cu at depth
Kairos: high-grade Cu at depth Rhyolite hosted, analogous to Peak and Perseverance For personal use only New zone of strong copper mineralisation 150m below current Kairos Resource 25m at 3.0% Cu & 9g/t Ag, includes 12m @ 4.1% Cu & 11g/t Ag Surface drilling program commenced to further test de
Slide 21: Hera Regional Exploration
Hera Regional Exploration Extending Hera’s mine life For personal use only Multiple priority exploration targets South of Hera Geophysical and geochemical anomalism identified Large scale regional IP survey currently underway Mineralised intercepts from drilling at Athena, Federation and Dom
Slide 22: Federation discovery
Federation discovery Accelerating evaluation work For personal use only Very recently discovered (April 2019) 10km south-southwest of Hera Multiple high grade intercepts include: 18m at 24.7% Pb+Zn, 0.3g/t Au, incl. 7m at 45.0% Pb+Zn & 0.5g/t Au 26m at 16.4% Pb+Zn, 0.1g/t Au, incl. 11.5m a
Slide 23: Building value
Building value For personal use only 01 02 03 04 Robust operational Upgrade and Near-mine inventory Regional exploration base efficiency projects additions success Peak: 4 year Reserve life Peak: Pb/Zn plant Chronos Extensions, Federation upgrade Pb/Zn Hera: 4 year Reserve life Dominion
Slide 24: Regional foothold
Regional foothold Highly strategic asset base in the polymetallic Cobar Basin with two major processing plants possessing a combined capacity of 1.3Mtpa For personal use only Building Value in High margin output Established, high-value gold and base metals production profile the Cobar Basin Leveragi
Slide 25: Appendix
For personal use only 25 Appendix
Slide 26: Mineral Resources estimates (June 2019)
Mineral Resources estimates (June 2019) For personal use only Peak 2019 Mineral Resources Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Measured 1,919 204 1.7 1.3 0.6 0.7 11 Indicated 7,402 219 1.6 1.3 1.1 1.3 10 Inferred 4,889 207 1.3 1.6 0.5 0.8 7 Total 14,210 213 1.5 1.4 0.9
Slide 27: Ore Reserves estimates (June 2019)
Ore Reserves estimates (June 2019) For personal use only Peak 2019 Ore Reserves Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Proved 376 181 1.2 1.7 0.3 0.6 11 Probable 2,458 232 2.1 1.0 2.0 2.1 16 Total 2,834 225 2.0 1.1 1.8 1.9 15 Utilises NSR cut-offs of A$150/t (Peak and Pe
Slide 28: Competent Person(s) Statements
Competent Person(s) Statements Hera Mineral Resource Estimate For personal use only Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia