Aeon Metals — Investor Presentation (May 2017)
29 slides from Aeon Metals's investor presentation, May 2017
Slide 1: Walford Creek Project Development
WALFORD CREEK PROJECT DEVELOPMENT May 2017
Slide 2: Important Information
2 IMPORTANT INFORMATION This document has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors. This document is not a prospectus and should not be considered an offer or an invitation to acquire
Slide 3: Queensland Asset Base
3 QUEENSLAND ASSET BASE FLAGSHIP WALFORD CREEK PROJECT 100% Large Global JORC Resource1 296,000t of copper 60kt of cobalt 623,000t of zinc Walford Creek 626,000t of lead 55moz of silver Mt Isa PEA completed on high grade subset “Vardy Zone” in Feb 2017. Large scale Cobalt Roasting
Slide 4: Northwest Queensland Resources
4 NORTHWEST QUEENSLAND RESOURCES Source: Core Resources AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 5: Walford Creek
5 WALFORD CREEK
Slide 6: Advanced, Large Base Metals Resource
6 ADVANCED, LARGE BASE METALS RESOURCE LARGE SEDIMENT HOSTED MINERAL SYSTEM Walford Creek Global Resources (March 2015) Mineralisation is both structurally and Walford Creek 2014-5 Resource Estimates lithologically controlled – Fish River Category Mt Cu % Pb % Zn % Ag g/t Co % Fault. Potential f
Slide 7: +25km Mineralised Fault Corridor
7 +25KM MINERALISED FAULT CORRIDOR Current Resource ~4km Vardy Pit Outline 2015 Global Resource Estimates Mineralised Zones AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 8: High Grade Vardy Resource
8 HIGH GRADE VARDY RESOURCE Near surface/close to fault. Vardy Resource Statement (December 20161) On 25 October, 2016 a new high- grade “subset” Resource Walford Creek Vardy Resource Statement 3 Category Volume m Mt Cu % Pb % Zn % Ag g/t Co % Pyrite % announced. This was upgraded Measured 284,6
Slide 9: Vardy Zone PEA Summary
9 VARDY ZONE PEA SUMMARY PEA Announced 15 Feb 20171,2 600ktpa throughput plant resulting in life-of mine (“LOM”) production of 38kt copper, 29kt zinc, and 3kt cobalt metals in concentrate. Projected life of mine revenue from copper, zinc, silver and cobalt of estimated at $579M. Operating cost
Slide 10: 2017 Drill Campaign
10 2017 DRILL CAMPAIGN Extension drilling to the east. Vardy Infill (~4,360m) Along strike drilling to the west: Key zones where geological conditions match Vardy Zone Highly prospective upside for Resource/LOM AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au extension.
Slide 11: Drill Dollars = Bolt On Value
11 DRILL DOLLARS = BOLT ON VALUE 2014: 19 2016: 28 holes holes Vardy Zone (6,017m) (4,030m) 48mt->73mt 2015: 3 holes 2017: 64 (871m) holes (7,490m) Along strike: Vardy Infill = 27 holes (3,130m) 37 holes (4,360m) AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 12: Cobalt = Power Storage
12 COBALT = POWER STORAGE Demand Cobalt is consumed by major industries with rechargeable lithium-ion batteries becoming a major Co use. “The problem with existing lead- acid batteries is that they suck” – Elon Musk 2016 global demand = ~93kt Batteries were ~11% of Co consumption in 2002, and
Slide 13: Largest Cobalt Sulphide Resource in Australia
13 LARGEST COBALT SULPHIDE RESOURCE IN AUSTRALIA X2 0.18 Vardy, QLD 0.16 Millenium, Qld 0.14 Savannah, WA 0.12 Mutooroo, SA Walford Creek, QLD 0.10 Cobalt Grade (% Co) Thackaringa, NSW Nova-Bollinger, WA 0.08 0.06 Basil, NT Maroochydore, WA 0.04 0.02 Mount Gunson, SA Rocklands, Qld 0.00 0 10 20 30 4
Slide 14: Australian Laterites vs Sulphides
14 AUSTRALIAN LATERITES VS SULPHIDES 0.18 Vardy, QLD Laterites = High pressure acid leach Sulphides = Atmospheric leach or roast 0.16 2017 drilling to increase Resource tonnage Atmospheric leach Millenium, Qld 0.14 Mt Thirsty, WA KNP Co zones, WA Savannah, WA 0.12 Syerston, NSW Mutooroo, SA Murrin M
Slide 15: 60kt Cobalt Resource
15 60KT COBALT RESOURCE Cobalt consistent throughout current Walford Global Resource. Cobalt occurs within pyrite lenses. Cobalt value accounts for ~$4.4b or 37% of the in-situ metal value of the Global Resource Scoping Study completed in April 2017 to assess economic extraction utilising ro
Slide 16: Cobalt Roasting Scoping Study Summary
16 COBALT ROASTING SCOPING STUDY SUMMARY Optimised open pit for 2.5Mtpa 2.5mtpa Global Resource Pit Shell vs Vardy PEA Pit Shell ROM ore over 15 years; Conventional float mill to produce copper, zinc, lead and pyrite concentrates. The pyrite concentrate processed through an onsite roaster to p
Slide 17: Cobalt Roasting Scoping Study Summary
17 COBALT ROASTING SCOPING STUDY SUMMARY Operating cost of $74/t of ROM production. Estimated total capital cost is ~A$668M, including A$33M mining pre-strip costs and A$55M contingency. Payback period is ~3 years. Robust financial metrics which include an after tax NPV8% of ~A$458M and an I
Slide 18: Possible Acid Solution
18 POSSIBLE ACID SOLUTION The addition of sulphuric acid to phosphate rock to produce the high value (~A$820/t) phosphoric acid product enables the reduction of volume, materially enhances the margin and by default significantly boosts the value of the acid. An example of this is as follows: 1
Slide 19: Next Steps
19 NEXT STEPS Vardy Development: QUALITY RESOURCE BASE Cu-Co METAL LEVERAGE Drilling results to start flowing early June. Corporate: Cobalt roasting and acid assessment in parallel to Vardy COUNTER development. CYCLICAL AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 20: Board of Directors & Management
20 BOARD OF DIRECTORS & MANAGEMENT PAUL HARRIS HAMISH COLLINS STEPHEN LONERGAN IVAN WONG DAN JOHNSON CHAIRMAN MANAGING DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR EXPLORATION MANAGER 25 years’ experience in 24 years’ combined More than 30 years More than 20 years More than 30 years financial market
Slide 21: Capital Structure & Shareholder Register
21 CAPITAL STRUCTURE & SHAREHOLDER REGISTER / / / / $0.16 347.83M $55.5M $3.0M $33.5M SHARE PRICE SHARES MARKET CAP CASH LIMITED (A$) 1 OUTSTANDING (A$) 1 (A$) 3 RECOURSE 136.25m 2 VENDOR DEBT4 (A$) VENDOR WARRANTS TOP 10 SHAREHOLDERS1 TOP 5 SHAREHOLDERS1 HSBC Custody Nominees (OCP Holdings) 22.73%
Slide 22: Appendices
22 APPENDICES
Slide 23: Appendix 1: Competent Person Statement
23 APPENDIX 1: COMPETENT PERSON STATEMENT The data in this report that relates to Mineral Resource Estimates for the Walford Creek Deposit and Vardy Zone Deposit is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and wh
Slide 24: Appendix 2: Assumptions
24 APPENDIX 2: ASSUMPTIONS Economic and Commodity Price Assumptions Item Value Exchange Rate (US$:A$) 0.725 Commodity Prices Copper (US$/lb) 3.30 Zinc (US$/lb) 1.25 Lead (US$/lb) 0.86 Silver (US$/oz) 20.00 Cobalt (US$/lb) 20.41 AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 25: Appendix 3: Vardy – Metric Estimates
25 APPENDIX 3: VARDY – METRIC ESTIMATES Key Project Production Metrics – LOM Contained Metal Commodity 2019 2020 2021 2022 2023 2024 Grade Commodity 2019 2020 2021 2022 2023 2024 Total Copper (%) 1.73 1.11 1.14 0.94 0.92 1.04 Copper (t) 10,102 6,340 6,514 5,356 5,248 4,598 38,158 Zinc (%) 0.59 1.11
Slide 26: Appendix 4: Vardy Processing Flowsheet
26 APPENDIX 4: VARDY PROCESSING FLOWSHEET AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 27: Appendix 3: Cobalt Roasting – Metric Estimates
27 APPENDIX 3: COBALT ROASTING – METRIC ESTIMATES Recoveries by Production Year Contained Metal Recovery (%) Copper Zinc Lead Cobalt Silver Copper Lead Zinc Cobalt Silver Pyrite kt kt kt kt kozs Cu Conc Pb Conc Zn Conc Zn Co Cu Pb Conc Zn Conc Pyrite Conc Precip Cathode Conc YR1 2.77 5.10 9.19 0.422
Slide 28: Appendix 5: Cobalt Roasting Processing Flowsheet
28 APPENDIX 5: COBALT ROASTING PROCESSING FLOWSHEET AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 29: Appendix 6: Cobalt Roasting/Phosphate Flowsheet
29 APPENDIX 6: COBALT ROASTING/PHOSPHATE FLOWSHEET AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au