Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Diggers & Dealers Mining Forum 2024
26 slides from Lunnon Metals's conference presentation, Aug 5, 2024
Slide 1: Diggers & Dealers Mining Forum – Investor Presentation
5 August 2024 Diggers & Dealers Mining Forum – Investor Presentation Lunnon Metals Limited (ASX:LM8) is pleased to announce that Managing Director, Edmund Ainscough, will present to the Diggers & Dealers Mining Forum at Kalgoorlie on Tuesday, 6 August 2024, at 11.25am (Perth time). A copy of the pre
Slide 2: Nickel Country, Gold Country
This slide is 100% editable. Diggers & Dealers 2024 For personal use only Adapt it to your needs and capture your audience’s “Nickel Country, attention. …..Gold Country” This slide is 100% editable. Adapt it to your needs and capture your audience’s Edmund attention. Ainscough 6 August 2024
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer This Presentation has been prepared by employees of Lunnon Metals Ltd (“Lunnon”, “LM8” or “the Company”) on its behalf and is a summary only, and contains summary information about Lunnon and its activities, which is current as at the date of this Presentation (unless o
Slide 4: Listed ASX June 2021: years on
Listed ASX June 2021: 3 years on LOW-RISK OPTION : Au & Ni Granted mining licences, abundant infrastructure Amazing Kambalda endowment For personal use only A$22 million cash balance BAKER PERMITTED Mining Proposal Approved DISCOVERED BAKER All drilling/technical studies done 1Mt @ 3.3% for 33.7kt
Slide 5: Investment Highlights
Investment Highlights GOLD NICKEL For personal use only Exciting high-grade gold results 113,600t# of nickel metal Granted mining leases in Robust margins at current >15Moz* gold camp Ni price levels Surrounded by multiple $22M CASH ^ High-grade, high-quality >1Moz* gold mines sulphide concentrate p
Slide 6: Only ASX listed Kambalda explorer/developer: Status Update
Only ASX listed Kambalda explorer/developer (Ni & Au) STATUS UPDATE For personal use only • Strong Cash balance $22M^ • No current surface nickel drilling • 50% reduction in site-based team • Strategy FY2025 • Gold focus in under-explored belt • De-risk nickel portfolio, finish PFS • Permit Foster (
Slide 7: Golden Opportunity in 15Moz St Ives Belt
Golden Opportunity in 15Moz* St Ives Belt 1^ • Foster-Baker was a “nickel belt” never saw a proper gold focus For personal use only • >7.5Moz of past production** right on our doorstep • From 10koz to >1Moz sized deposits* • Always the chance to get on to something bigger • Targeting: • modest size
Slide 8: Lady Herial – shallow, high-grade
Lady Herial – shallow, high-grade 1920s production LM8 DRILLING • 50kt ore @ 14.0g /t Au for 23.4koz • 3.0m @ 5.99g/t Au • 0.6m @ 10.84g/t Au For personal use only (from 14m) (from 10m) • 5.0m @ 4.01g/t Au • 1.8m @ 19.97g/t Au (from 20m) (from 14.3m) • 3.0m @ 14.80g/t Au • 1.0m @ 15.26g/t Au (from 1
Slide 9: Father's Day Vein & the Lunnon Sediment
Father’s Day Vein & the Lunnon Sediment For personal use only Lady Herial 1.8m @ 19.97g/t 1.0m @ 15.26g/t 5m @ 46.2g/t Image source: Karora Resources announcement 16 September 2018 3 Images ex TSX: RNX announcements dated 9th, 16th and 24th September 2018 5m @ 11.46g/t 1.0m @ 20.0g/t Plentiful Hustl
Slide 10: Under-explored in the 3rd dimension
Under-explored in the 3rd dimension Foster – structures largely gently dipping For personal use only Beta/Hunt – structures largely vertical LEGEND Gold deposit/prospect Nickel deposit/channel Potential gold mineralisation Basalt/mafics Lunnon Sediment Image source: Karora Resources announcement 16
Slide 11: Real Assets, Existing Infrastructure
Real Assets, Existing Infrastructure For personal use only Baker-Foster: 3.1Mt @ 3.0%Ni (95,100t Ni)* * See slide 17 for full breakdown of the Mineral Resource 10 10
Slide 12: Baker-Foster: Low Risk Profile
Baker-Foster: 3.1Mt @ 3.0%Ni (95,100t Ni)* LOW RISK PROFILE For personal use only Baker Mining Proposal approved^ Granted mining licences Geotechnical, metallurgical, surface drilling - ALL done Significant existing infrastructure = low capital cost * See slide 17 for full breakdown of the Min
Slide 13: May 2023: Baker alone, shallow, high-grade
May 2023: Baker alone, shallow, high-grade PFS May 2023 # For personal use only • Indicated Only: 0.64Mt @ 3.8% (24kt Ni Metal)* • Ore Reserve: 0.61Mt @ 2.86% (17.5kt Ni Metal)* • Concentrate: 15,970t Ni • All-in-Cost per ore t: A$371 • Pre-Prod Capex: A$19M • FCF (pre-tax): A$196M # The May 2023 PF
Slide 14: 2024: Robust, Resilient, Bigger, Better
2024: Robust, Resilient, Bigger, Better… FOSTER BAKER For personal use only WARREN BAKER & FOSTER 2024 85H 730m 350m • 44km of drilling in total • Measured & Indicated: 2.0Mt @ 3.4% (67.5kt* Ni metal) • Updating Ore Reserve (@ A$23,880/t)^ • Goal is to be robust and profitable, SOUTH ^Ore Reserve pr
Slide 15: Potential Concentrator site - Old St Ives Plant Site
Potential Concentrator site - Old St Ives Plant Site For personal use only * Sum of historical WMC production records to Dec 2001 and Gold Fields Annual Report filings thereafter NB: See slide 17 for full breakdown of nickel MRE shown in image • On Lunnon Metals leases • TSF1 cell • Processed > 47Mt
Slide 16: Investment Highlights
Investment Highlights GOLD NICKEL For personal use only Exciting high-grade gold results 113,600t# of nickel metal Granted mining leases in Robust margins at current >15Moz* gold camp Ni price levels Surrounded by multiple $22M CASH ^ High-grade, high-quality >1Moz* gold mines sulphide concentrate p
Slide 17: Appendices
This slide is 100% editable. For personal use only Adapt it to your needs and capture your audience’s attention. This slide is 100% editable. Appendices Adapt it to your needs and capture your audience’s attention. 16
Slide 18: Mineral Resources and Ore Reserves Reporting
Mineral Resources and Ore Reserves Reporting This presentation contains references to Lunnon Metals’ Ore Reserves and Mineral Resources, which are shown in a detailed breakdown below. Mineral Resources* at 30 June 2024 For personal use only * Mineral Resources are inclusive of Ore Reserves; totals m
Slide 19: Lunnon Metals Overview
Lunnon Metals Overview Corporate structure (ASX: LM8) Liam Twigger Edmund Ainscough 2 August 2024 Non-Executive Chair Managing Director only personal use Board 220.2m $0.16 ~$35m Shares on issue Share price Market cap Ashley McDonald Deborah Lord Non-Executive Director Non-Executive Director 4.3m ~$
Slide 20: Listed ASX June 2021: years on
Listed ASX June 2021: 3 years on… August Nickel Grade5 Enterprise EV/t Ni Nickel price3 MRE4,5 Value (EV) 1 MRE2 AUD/t Nickel metal For personal use only Nickel metal % Nickel A$M tonnes 2021 39,000 3.2 59.4 1,523 25,496 2022 64,300 2.9 140.6 2,186 30,658 2023 87,800 3.1 176.8 2,013 31,564 2024 113,
Slide 21: Important Notice - Competent Persons Statement
Important Notice - Competent Persons Statement Any information in this announcement that relates to nickel and gold geology, nickel Mineral Resources, Exploration Targets, Exploration Results and the Company’s Historical Core Program, which includes the accessing, re-processing, relogging, cutting a
Slide 22: Key Financial Assumptions: May'23
Key Financial Assumptions: May’23 Assumption Unit May 2023 For personal use only Nickel Price1 US$/t 24,000 Copper Price1 US$/t 7,500 Cobalt Price1 US$/t 40,000 Platinum Price1 US$/oz 850 Palladium Price1 US$/oz 1,250 AUD:USD A$1:US$ 0.68 Inflation# % 0 Discount Rate % 8 Model Start Date# Date 1 Apr
Slide 23: Major Operating Costs
Major Operating Costs FIRST PRINCIPLES, BENCHMARK & RFQ* APPROACH Unit Cost Total LOM Unit Cost Item For personal use only (A$/lb Ni contained A$ Million (A$/t Ore Mined) in concentrate)1 Mining 131.2 214 3.73 Processing (including Surface Haulage)2 46.1 75 1.31 General & Administration3 7.2 12 0.20
Slide 24: May 2023 PFS Financial Outcomes
May 2023 PFS Financial Outcomes # 140,000 160,000 Measure Unit Outcome 120,000 140,000 Nickel Contained in Concentrate Ni t 15,970 120,000 Average Ni Sold Per Annum t Ni pa 4,100 For personal use only 100,000 Post tax Free Cash Flow (A$M) Cumulative Con Production (t) 100,000 Gross Revenue1 A$M 437
Slide 25: Baker PFS: Grade underpins robust project
Baker PFS*: Grade underpins robust project = “Sprint Capacity” Pre-Production Capex: $18.6M Payback: 0.7 Years* At May 2023 prices Pre-tax NPV8 For personal use only Free Cash Flow $164M Sensitivity +/-10% Pre-tax: $196M Ni price or grade: +/-$35M Operating Cost: +/-$16M Post tax: $145M Pre-prod cap
Slide 26: Prior ASX Announcements
Prior ASX Announcements This presentation contains references to Lunnon’s Exploration Results and previous announcements. The information in this presentation that relates to previous Exploration Results has been extracted from the following Lunnon ASX announcements, where full details including col