Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Investor Presentation (October 2024)
56 slides from Capricorn Metals's investor presentation, Oct 30, 2024
Slide 1: High Margin, Long Mine Life Gold Business with Compelling Growth
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES HIGH MARGIN, LONG MINE LIFE GOLD BUSINESS WITH COMPELLING GROWTH 30 October 2024 Capital Raising Presentation capmetals.com.au
Slide 2: Important Information and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Information and Disclaimer IMPORTANT – You must read the following before continuing This is a presentation (Presentation) by Capricorn Metals Ltd ACN 121 700 105 (CMM) dated 31st October 2024, It has been prepared in relation to a propo
Slide 3: Important Information and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Information and Disclaimer Investment Risk An investment in any listed company, including CMM, is subject to investment and other known and unknown risks, some of which are beyond the control of CMM, including possible loss of income and
Slide 4: Important Information and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Information and Disclaimer Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding informati
Slide 5: Important Information and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Information and Disclaimer ASX Listing Rule 5.23 The information in this Presentation relating to CMM’s mineral resource and ore reserve estimates is extracted from the announcements entitled: • ‘KGP Ore Reserve Increases to 1.43Moz’s’ r
Slide 6: Important Information and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Information and Disclaimer To the maximum extent permitted by law, the Joint Lead Managers (i) expressly disclaim all liability and responsibility (including, without limitation, any liability arising from fault, negligence or negligent
Slide 7: Investment Highlights
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Investment Highlights Capricorn is a high margin, long mine life gold business with compelling growth Karlawinda Gold Project (KGP) has established Capricorn as one of Australia’s lowest cost gold producers • Consistent operational performance and
Slide 8: Who is Capricorn Metals?
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Who is Capricorn Metals? High Margin Production + Compelling Growth Karlawinda – 1.4Moz1 reserve Built on time & budget, in <18 months & $185m First gold June 21, first production qtr. 24koz 3yrs production: 351koz @ AISC A$1,250/oz for $396M cash
Slide 9: Our People – Proven mine builders, operators & wealth creators
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Our People – Proven mine builders, operators & wealth creators Mr Mark Clark Mr Mark Okeby Mr Myles Ertzen Mr Bernard De Araugo Ms Jill Irvin Long & successful record of Executive Chairman Non- Executive Director Non- Executive Director Non- Execu
Slide 10: Capricorn Metals Corporate Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Capricorn Metals Corporate Summary Capital Structure Shareholders Board & Management 10% Shares on issue (ASX:CMM) 377.5 million Van Eck 9% Paradice Investment 7% Performance rights 1.7 million T.Rowe Price 5% Institutional 56% Share price (29 Oct
Slide 11: Transaction Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Transaction Overview
Slide 12: Capital Raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Capital Raising Funding to drive exceptional growth across both Capricorn’s projects Board approves Karlawinda Expansion Project (KEP) Expansion of processing plant to 6.5mtpa capacity underpinning targeted production of 150,000 ounces per annum a
Slide 13: Offer Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Offer Overview • Capricorn is conducting an institutional placement of approximately 33.3 million fully paid ordinary shares to raise approximately Offer Structure and A$200.0 million (“Placement” or “Offer”) Size • The Placement represents approx
Slide 14: Placement – use of funds
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Placement – use of funds Placement proceeds of $200m, existing cash and free cashflow expected to fully fund development of Karlawinda Expansion & Mt Gibson1 – No further debt or mandatory gold hedging expected to be required Project Development F
Slide 15: Indicative Timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Indicative Timetable Event Indicative Date Trading Halt Pre-market Wednesday, 30 October 2024 Lodgment of Investor Presentation, Launch of Offer, bookbuild opens Pre-market Wednesday, 30 October 2024 Bookbuild closes APAC Investors 4:00pm (Sydney
Slide 16: Karlawinda Gold Project
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Karlawinda Gold Project Capricorn’s cornerstone asset & template for development of Mt Gibson
Slide 17: Karlawinda Performance – years of cash generation
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Karlawinda Performance – 3 years of cash generation Karlawinda Gold Project - Oz Produced(1) and Cash build(2) 500koz $396m $500m Validation of CMM approach Gold Production 400koz 110-120koz $400m It does what we said it would do… Cash Build $257m
Slide 18: KGP – Capricorn's cornerstone asset and strong cash generator
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KGP – Capricorn’s cornerstone asset and strong cash generator Mine Plan delivers linear ounce profile build for FY2025 FY25(1) FY24 Q1(1) Q1 Gold production 110- 113koz 26koz Primary ore source (ozs) 120koz 1370- AISC (A$/oz) 1,421 1647 High grade
Slide 19: KGP Reserve – Maintaining +13 years and still growing
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KGP Reserve – Maintaining +13 years and still growing Tonnes Grade Ounces (M) (g/t) Probable Reserves (ORE)1 57.7 0.8 1,428,000 M & I Resources 85.0 0.7 1,965,000 Inferred Resources 13.6 0.7 287,000 Total Resources(1) 98.6 0.7 2,252,000 Reserves 1
Slide 20: KGP Reserve Upgrade – Consistent growth & reserve performance
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KGP Reserve Upgrade – Consistent growth & reserve performance Karlawinda Gold Project Compelling internal growth Oz Produced(1) & ORE Updates(2) • KGP operation established & cost structures 2000 validated on initial GP A$1,600/oz ORE 1800 • Since
Slide 21: Karlawinda Expansion Project (KEP) increases production to 150,000 ozpa
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Karlawinda Expansion Project (KEP) increases production to 150,000 ozpa KEP is a compelling growth project Expansion capital A$120 million Highlights: • Steady state annual production 150,000 oz pa Project Payback (A$3,300/oz gold price) 20 Months
Slide 22: KEP - a simple, executable & high value internal growth opportunity
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES KEP - a simple, executable & high value internal growth opportunity Simple and Proven Process Flowsheet 4mtpa (Existing) Plant Expansion: • 2.5mtpa increase in plant throughput • Parallel three-stage crushing & ball mill circuit replicates current
Slide 23: Unlocking the Endowment of the KGP Region
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Unlocking the Endowment of the KGP Region Regional focus Carnoustie Mission Rd • Targeting camp scale deposits on Pilbara / Badlands Yilgarn craton margin • Accelerate turnover of early-stage prospects 10km • Focus on Bibra analogues – gravity, ma
Slide 24: Mt Gibson Gold Project
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Mt Gibson Gold Project Robust & executable project of genuine scale Compelling growth for Capricorn
Slide 25: Mt Gibson Gold Project (MGGP) – the story so far
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Mt Gibson Gold Project (MGGP) – the story so far Unique opportunity – not a retread • Prime location in Murchison, WA • 280km northeast of Perth & <10km off Great Northern Hwy • Historical (1986-99) gold production >868koz, 14 pits avg depth 60m •
Slide 26: Updated Ore Reserve Estimate 1.83Moz
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Updated Ore Reserve Estimate 1.83Moz1 Probable & Total Cut-off Tonnes Grade Ounces (g/t) (Mt) (g/t) (koz) Laterite 0.4 0.9 0.5 16 Oxide 0.4 6.7 0.9 185 Transitional 0.4 7.5 0.9 209 Fresh 0.4 42.9 1.0 1,373 Heap Leach Pad 0.3 3.6 0.4 51 61.6 0.9 1,
Slide 27: PFS Highlights – A quality HIGH MARGIN mine in the making
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES PFS Highlights(1) – A quality HIGH MARGIN mine in the making Strong Long Low Cost Low Strong Low Production Mine Life High Margin Capital Cost Financials Technical Profile (post capex/pretax) Risk @ GP A$2750/oz >11 years 5mpta plant Open pit 155k
Slide 28: Mt Gibson – Karlawinda…Enhanced
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Mt Gibson – Karlawinda…Enhanced Karlawinda Mt Gibson The sequel is just as good as the original, Mine type Open pit Open pit yb … Jurisdiction Western Australia Western Australia Larger Mineral Resources, Ore Reserves & Mineral Resource 2.25Moz(1)
Slide 29: Strong Resource Conversion to ORE & Potential for More
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Strong Resource Conversion to ORE & Potential for More MGGP RESOURCE(1) Indicated Inferred Total (koz) (koz) (koz) 2,712 592 3,304 Mineral Resource Growth (MRE (1)) FY22 FY23 FY24 2,083 koz 2,755 koz 3,304 koz FY24 Resource Conversion Drilling • 1
Slide 30: Strong Resource Conversion to ORE & Potential for More
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Strong Resource Conversion to ORE & Potential for More Mount Gibson Gold Project Compelling Resource & Reserve Growth Resource / Reserve Updates(1) • Targeting data gaps between resource shells, 3,500koz 350km 3500 339 km parallel trends, at depth
Slide 31: Underground Potential Emerging
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Underground Potential Emerging Results drive our enthusiasm for UG opportunity - grade, width & continuing at depth Strategy • Follow up drilling to extend significant high-grade mineralisation zones beyond current resource shells • Drilling metho
Slide 32: Mt Gibson – Delivering a giant, that's still growing
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Mt Gibson – Delivering a giant, that’s still growing What's the prize for developing MGGP?(1) What is the prize for developing MGGP? 3000 1.83Moz ORE & forecast to be a >155kozpa lowest 2.00 1.95Moz quartile AISC producer 1.83Moz 1.83Moz 2500 The
Slide 33: Investment Highlights
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Investment Highlights Capricorn is a high margin, long mine life gold business with compelling growth Why Capricorn? • Proven team that delivers for shareholders 3.3Moz ORE(1) • Two regionally significant projects +10 Years Life • Long life/low co
Slide 34: Investment Highlights – AISC First Quartile
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Investment Highlights Capricorn is a high margin, long mine life gold business with compelling growth Why Capricorn? • Proven team that delivers for shareholders Bubble size Two regionally significant projects AISC First Quartile represents ORE1 •
Slide 35: Mineral Resources
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Mineral Resources TABLE 1: GROUP OPEN PIT MINERAL RESOURCE Indicated Inferred Total Mineral Resources Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz
Slide 36: Ore Reserves
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Ore Reserves TABLE 2: GROUP OPEN PIT ORE RESERVE STATEMENT Probable Total Ore Reserve Gold Gold Gold Gold Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal (Mt) (Mt) (g/t) (koz) (g/t) (koz) KGP Open Pit 0.3 < 57.7 0.8 1,428 57.7 0.8 1,428
Slide 37: Appendix A – Peer Data
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix A Peer Data
Slide 38: Appendix A – Peer Comparison Data (1/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix A – Peer Comparison Data6 (1/3) Date of Closing Market Cap / Reserve Ore Reserve Ordinary Fully Paid ASX Code Name AISC AISC Data1 AISC Source Document1 Market Cap 2 3 Appendix Price Multiple5 Estimate4 Securities on Issue 2A3 30/7/2024 "
Slide 39: Appendix A – Peer Comparison Data (2/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix A – Peer Comparison Data1 (2/3) Proved Probable Total ASX Code Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Ore Reserve Estimate Source Document (000's) (g/tAu) (000's) (000's) (g/tAu) (000's) (000's) (g/tAu) (000's) "Tomin
Slide 40: Appendix A – Peer Comparison Data (3/3)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix A – Peer Comparison Data1 (3/3) Proved Probable Total ASX Code Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Ore Reserve Estimate1 Source Document (000's) (g/tAu) (000's) (000's) (g/tAu) (000's) (000's) (g/tAu) (000'
Slide 41: Appendix B – Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix B Key Risks
Slide 42: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Gold price volatility and exchange rate risk The success of CMM's operations is primarily dependent on the price of gold bullion as substantially all of CMM's current revenue and potential revenues are derived from the sale of gold. Gold
Slide 43: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Resource and Reserve estimates Resource and Reserve estimates are expressions of judgement based on knowledge, experience and industry practice, including compliance with the 2012 JORC Code. By their very nature, these estimates are impr
Slide 44: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Operational and development risks The success of CMM’s existing KGP operations will be subject to uncertainty with respect to (among other things): ore tonnes, mine grade, ground conditions, geology, metallurgical recovery or unanticipat
Slide 45: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Operational and development risks (continued) In the event that the crisis management plans are not implemented adequately, the impact of a crisis can be significant and it can attract adverse media reports or reputational damage. The Co
Slide 46: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Returns risks The New Shares to be issued pursuant to this Offer carry no guarantee with respect to the payment of dividends, returns of capital or the market value of those New Shares, which are a speculative investment. The last tradin
Slide 47: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Land access risks Utilisation of land for exploration and development purposes can be adversely affected by land ownership, including private (freehold) land, pastoral lease and native title land or claims under the Native Title Act 1993
Slide 48: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Health, safety and security risk Mining activities have inherent hazards and risks. The Company is committed to providing a safe and healthy workplace and environment for its personnel, contractors and visitors. The Company provides appr
Slide 49: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Environmental and climate risks (continued) Mining operations have inherent risks and liabilities associated with safety and damage to the environment and the disposal of waste products occurring as a result of mineral exploration and pr
Slide 50: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks Cyber risk Breaches of cyber security is a growing global risk as the volume and sophistication of threats have increased. Risks include unauthorised access to data and information leading to reputational damage and/or risk of litigation
Slide 51: Appendix C – International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix C International Offer Restrictions
Slide 52: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person,
Slide 53: International Offer Restrictions (Cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions (Cont.) Canada (British Columbia and Ontario provinces) continued Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all doc
Slide 54: International Offer Restrictions (Cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions (Cont.) Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not
Slide 55: International Offer Restrictions (Cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions (Cont.) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meani
Slide 56: Capricorn Metals Ltd (ASX: CMM)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Capricorn Metals Ltd (ASX: CMM) Level 3, 40 Kings Park Road West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105
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