Ormonde Mining Plc · AQUIS:ORM
Ormonde Mining — Shareholder Meeting (September 2019)
26 slides from Ormonde Mining's shareholder meeting presentation, Sep 23, 2019
Slide 1: Update on the Barruecopardo Tungsten Mine, Spain
Annual General Meeting 23 September 2019 Update on the Barruecopardo Tungsten Mine, Spain 1
Slide 2: Disclaimer
ORMONDE MINING Disclaimer The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (as amended). Reliance on this document for the purpose of engaging in any investment activity may expose an individual to a signific
Slide 3: Summary
Summary ▪ Ormonde’s primary activity is through its 30% interest in the Barruecopardo Tungsten Mine, Spain o Currently in ramp-up phase of open pit mine production, wholly operated by Saloro SLU, the mine subsidiary o At full production, will be a leading European supplier, and important global supp
Slide 4: Ownership structure
Ownership structure OAKTREE CAPITAL ORMONDE MINING plc MANAGEMENT 100% OCM LUXEMBOURG ORMONDE MINING BV TUNGSTEN HOLDINGS Sarl 70% 30% BARRUECOPARDO JOINT VENTURE BV 100% TUNGSTEN MINING SLU Project debt 100% SALORO SLU Operator of Barruecopardo Tungsten Mine 4
Slide 5: Barruecopardo Tungsten Mine, Spain
Barruecopardo Tungsten Mine, Spain 5
Slide 6: Barruecopardo Tungsten Mine, Spain
Barruecopardo Tungsten Mine, Spain 6
Slide 7: Progress summary – first half 2019
Progress summary – first half 2019 • Ore mining commenced • Completion of construction, commissioning of processing circuits – handover to Saloro • Transition to ramp-up phase of production • Process plant operated at throughput rates up to 195 tph on fresh ore, sufficient to meet steady-state rate
Slide 8: Metso video
Metso video https://www.youtube.com/watch?v=ATvZKqBZyZY 8
Slide 9: Open pits overview (Jan '19)
Open pits overview (Jan ‘19) Southern starter pit East wall West wall Historic open pit (Jan’19) View facing south from northern starter pit 9
Slide 10: Schematic long section of open pits
Schematic long section of open pits NORTH Northern starter pit Southern starter pit Approx top of east wall 710 bench Historic pit / land surface East wall cutback “MAIN OREBODY” Final pit Area of mineral resource ▪ Main orebody – focus of historic mining; also focus of Ormonde’s 15 km of resource d
Slide 11: Progress summary – Q3 2019
Progress summary – Q3 2019 • Improving mined ore grades from southern starter pit • Significant progress on east wall cutback • Saloro preparing initial shipments of tungsten concentrates 11
Slide 12: Q3 update: Improving grades
Q3 update: Improving grades ▪ Improving mined ore grades as southern starter pit transitions downwards and northwards ▪ Quality of ore improves, easier to process ▪ Tungsten mineralisation stronger towards main orebody – higher grade, broader and more continuous 12
Slide 13: Q3 update: Better dilution control
Q3 update: Better dilution control ▪ Improved blasting and mining procedures, better dilution control 13
Slide 14: Q3 update: Improving ore quality
Q3 update: Improving ore quality Fresh ore from southern starter pit on ROM pad 14
Slide 15: Q3 update: Improving ore quality
Q3 update: Improving ore quality • Mined ore grades now corresponding increasingly well with modelled grades • Batches of good grade, fresher ore being delivered to process plant Close-up of fresh scheelite ore in granite-hosted quartz veins 15
Slide 16: Q3 update – substantial progress on east wall cutback
Q3 update – substantial progress on east wall cutback ▪ Initial access to main orebody at its southern end expected early Q4, as starter pit also transitions northwards View facing south from northern starter pit – Jan’19 Northern starter pit Southern starter pit East wall cutback 16
Slide 17: Processing
Processing ▪ Achieved design throughput rates, overall performance linked to grade and quality of ore feed ▪ To be optimised during ramp-up as representative ore grade material more regularly delivered by mine 17
Slide 18: Concentrates
Concentrates ▪ Saleable concentrate inventory building during initial months of operation ▪ Saloro preparing initial shipments for sale within next weeks Concentrate bagging unit in operation Part of the Saloro inventory of 1 tonne bags of concentrate 18
Slide 19: Financing
Financing ▪ Additional mining cost as a result of revised mining schedule; east wall cutback effectively brings forward opex from Year 2 to Year 1 ▪ Deferral of early revenue due to lower grades in first months ▪ Additional liquidity support being finalised between Saloro and Oaktree, as Saloro esta
Slide 20: Tungsten market developments
Header – Tungsten Market Developments Tungsten market developments 20
Slide 21: Tungsten price - past 12 months
Tungsten price - past 12 months Q4 ‘18 -Q2 ‘19: Drifting market – poor demand in China, esp. automotive sector, compounded by US-China trade dispute Q3 ‘19: Falling price due to concerns APT stocks from failed Fanya Metal Exchange, China would be released onto spot market. Buyers adopt “wait and see
Slide 22: Tungsten outlook
Tungsten outlook ▪ Ongoing caution surrounding global growth and impact of trade dispute esp on Chinese manufacturing and automotive industries ▪ “The conclusion of the [Fanya] auction could feed a more positive outlook for APT supply, removing uncertainty that Fanya-held stocks could flood the spot
Slide 23: Thank you
Annual General Meeting 23 September 2019 Thank you 23
Slide 24: Appendix: About Barruecopardo
Appendix: About Barruecopardo ▪ Located in Salamanca Province in the autonomous community of Castilla y León, western Spain ▪ The new mine is based on an initial open pit mining operation with a 9 year mine life ▪ Steady-state production based on DFS: Throughput rate: 1.1 Mtpa Reserve grade: 0.3% WO
Slide 25: Appendix: Fanya Metal Exchange
Appendix: Fanya Metal Exchange ▪ Launched in 2011 in Yunnan, China ▪ To provide small investors access to complex speciality metals markets (e.g., indium, selenium, bismuth, antimony, tungsten) ▪ Boon to China’s domestic market, but by 2014 investors concerned as metal stock piles up, new production
Slide 26: Appendix: Salamanca & Zamora Gold Projects
Appendix: Salamanca & Zamora Gold Projects ▪ Over 100km2 Investigation Permits held in JV with Shearwater Group plc ▪ Salamanca (48% Ormonde) results from early stage exploration drilling include: PERDD001: 10m @ 3.4g/t Au from 46.9m depth, incl. 1.1m @ 22.7g/t Au, and 15m @ 2.3g/t Au from 109.1m de
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