Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (May 2022)
34 slides from Orion Minerals's investor presentation, May 9, 2022
Slide 1: Investor Presentation May 2022
For personal use only Errol Smart / Managing Director and CEO Investor Presentation / May 2022 PAGE
Slide 2: Disclaimer
DISCLAIMER For personal use only 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 g
Slide 3: Our Mission: Fully Integrated from Exploration to Market
OUR MISSION FULLY INTEGRATED FROM EXPLORATION TO MARKET For personal use only EXPLORATION PRODUCING FUTURE FACING METAL PRODUCTS – ESG CERTIFIED METALS, TRACKED VIA BLOCKCHAIN FROM EXPLORATION TO SALE $ PAGE 3
Slide 4: Company Snapshot
COMPANY SNAPSHOT For personal use only Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 4,382M Tembo Capital (EU/Netherlands) 23.5 Options on issue 232M Delphi Group (EU/Germany) 13.1 Cash on hand 2 AUD6M IGO Limited (Australia) 3.5 AASMF Loan 3 AUD2M Tarney
Slide 5: Future Facing Metals
FUTURE FACING METALS For personal use only 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 feasibi
Slide 6: Focus on Two Highly Prospective South African Base Metal Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN BASE METAL DISTRICTS For personal use only BROWNFIELDS SUCCESS BEING FOLLOWED BY GREENFIELDS EXPLORATION 450km Orion Okiep Copper Projects Orion Areachap Projects Refer ASX/JSE releases 2 February 2021, 10 February 2021, 29 March 2021 and 2 August 2021 P
Slide 7: A New Future Metals Giant in the Making
A NEW FUTURE METALS GIANT IN THE MAKING FAST-TRACKING TOWARDS DEVELOPMENT AND PRODUCTION For personal use only • Two brownfields development assets in South Africa’s Northern Cape • Extensive upside exploration potential, high-quality Mineral Resources • Mineral Rights include known deposits of Copp
Slide 8: ESG – Core Focus of Our Business
ESG – CORE FOCUS OF OUR BUSINESS For personal use only • BEE (30%) Black Empowerment for mining projects of which: • 20% Entrepreneurs • 5% Community Trust • 5% Employee Trust • Community focused • Environmentally conscious AAMEG Award 2020 (Junior Mining Leader on ESG) • MD & CEO Errol Smart • Chai
Slide 9: Green Power – Green Footprint
GREEN POWER – GREEN FOOTPRINT For personal use only • 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
Slide 10: PCZM – A Green Metal Producer
PCZM – A GREEN METAL PRODUCER For personal use only 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 10
Slide 11: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES For personal use only 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 empl
Slide 12: Beneficiation Investigations
BENEFICIATION INVESTIGATIONS For personal use only Potential to unlock value locally, using beneficiation to produce Orion commissioning testwork and scoping feasibility assessments on: “Future Metal Products” • Modified carbonyl and chlorine • Abundant solar and wind renewable energy installed or b
Slide 13: Areachap Projects
For personal use only Areachap Projects For further information, contact: PAGE 13
Slide 14: A$120M Non-Binding Term Sheet Signed for Funding Arrangement & Stream Funding Package for PCZM
A$120M* NON-BINDING TERM SHEET SIGNED FOR FUNDING ARRANGEMENT & STREAM FUNDING PACKAGE FOR PCZM For personal use only • Term Sheet signed with Triple Flag for funding package, including stream finance. Early Funding Arrangement: o Triple Flag is a highly respected precious metal royalty and • A$10m
Slide 15: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS For personal use only NW Hutchings Shaft SE Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Refer ASX/JSE release 15 January 2019 PAGE 15
Slide 16: Prieska (PCZM) Copper Zinc Project (70%)
PRIESKA (PCZM) COPPER ZINC PROJECT (70%) For personal use only 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 7
Slide 17: Shallow Mineral Resources – Early Mining Targets
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS For personal use only • 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 fa
Slide 18: Enormous Exploration Upside
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT For personal use only Multiple Cu-Zn VMS and Ni-Cu-Co intrusive targets within Orion’s mineral rights • Prieska Cu-Zn near mine, open pit and underground targets with high grade intersections Jacomynspan • Jacomy
Slide 19: Jacomynspan
JACOMYNSPAN POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER For personal use only Granted Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex Investigating innovative proprietary technology to recover Battery Metals and high-value Battery Refer ASX/JSE release 3 March 2018 Precursor Products –
Slide 20: High Value Future Metal Products
HIGH VALUE FUTURE METAL PRODUCTS For personal use only Carbonyl Nickel Refining at Jinchuan China Micro granular Fe (left) and Ni (right) metal carbonyl powders Currently available on market PAGE 20
Slide 21: OCP Projects
For personal use only OCP Projects For further information, contact: PAGE 21
Slide 22: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES For personal use only • 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
Slide 23: Historical Ownership Changes Coincided with Cu Price Lows
OCC: HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS For personal use only Copper Price $/ton (real) Mining ceases / mine infrastructure stripped Newmont Goldfields Metorex Source: Peter Major Mergence Capital PAGE 23
Slide 24: Okiep Copper Project (OCP)
OKIEP COPPER PROJECT (OCP) (56%-100%) For personal use only • 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
Slide 25: Okiep – Historical Production Profile
OKIEP – HISTORICAL PRODUCTION PROFILE For personal use only 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 recove
Slide 26: Okiep District – Modern Exploration / EM Opportunity
OKIEP DISTRICT – MODERN EXPLORATION/ EM OPPORTUNITY For personal use only >1,700 mafic body outcrops Historical Geophysical >200 Cu showings methods used: IP, Magnetics, Gravity >100 Cu “diggings” - All only suited to find these 42 Cu “mines” 27 modern Most ore “industrial” mines was low-grade disse
Slide 27: OCP – Flat Mines Scoping Study Indicates Robust Economics
OCP – FLAT MINES SCOPING STUDY INDICATES ROBUST ECONOMICS For personal use only • Industrial Development Corporation (IDC) intend to be our partners • Foundation phase is modelled for 12 years • Concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust pilot-phas
Slide 28: Appendices
For personal use only Appendices For further information, contact: PAGE 28
Slide 29: PCZM Project BFS 2020: Executive Dashboard
PCZM PROJECT BFS 2020: EXECUTIVE DASHBOARD Key assumptions and Project Performance Parameters For personal use only 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%
Slide 30: OCP – Flat Mines Pilot Project Scoping Study
OCP – FLAT MINES PILOT PROJECT SCOPING STUDY For personal use only 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
Slide 31: Exploration: Australia Fraser Range
EXPLORATION: AUSTRALIA FRASER RANGE (10-30% ORN FREE CARRIED) – JV WITH IGO For personal use only 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 inters
Slide 32: Senior Management
SENIOR MANAGEMENT For personal use only Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Chief Operating Officer Executive: Finance & Consulting Group Corporate Social Chief Executive Officer Company Secreta
Slide 33: Board of Directors
BOARD OF DIRECTORS For personal use only 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 Ge
Slide 34: Orion Minerals Limited
For personal use only Orion Minerals Limited Suite 617, 530 Little 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 34