Aeris Resources Limited · ASX:AIS
Aeris Resources — Investor Presentation (June 2021)
48 slides from Aeris Resources's investor presentation, Jun 11, 2021
Slide 1: Aeris Placement June 2021
10 June 2021 Presented by Andre Labuschagne
Slide 2: Important notice and disclaimer
Aeris Placement June 2021 Important notice and disclaimer This presentation may contain certain statements and projections provided by or on behalf of Aeris Resources Limited (Aeris) with respect to the anticipated future undertakings. These forward- looking statements reflect various assumptions by
Slide 3: Important notice (placement terms)
Aeris Placement June 2021 This Investor Presentation has been prepared by Aeris Resources Limited ACN 147 131 977. By attending an investor presentation or briefing, or accepting or viewing this Presentation, you acknowledge and agree to the terms set out below. This Presentation has been prepared i
Slide 4: Investment risk
Aeris Placement June 2021 Investment risk An investment in the Company shares is subject to known and unknown risks, some of which are beyond the control of the Company and its Directors. The Company does not guarantee any particular rate of return or the performance of the Company nor does it guara
Slide 5: Forward-looking statements
Aeris Placement June 2021 This presentation contains forward-looking statements, forecasts, estimates and projections regarding the Company and its operations (“Forward-looking Statements”). Forward-looking statements can be identified by the use of forward-looking language such as “plans”, “expects
Slide 6: Hong Kong
Aeris Placement June 2021 Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pursua
Slide 7: Canada (British Columbia, Ontario and Quebec provinces)
Aeris Placement June 2021 Canada (British Columbia, Ontario and Quebec provinces) This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and Quebec (the "Provinces"), only to persons to whom New Shares may be lawfully distributed in the Provinces, and
Slide 8: Equity Raising Overview
Aeris Placement June 2021 Equity Raising Overview Offer Placement to Sophisticated and Professional Investors to raise approximately A$50.3 million through the issue of approximately 287.8 million ordinary shares (Placement Shares) at an issue price of A$0.175 per Placement Share (Offer Price). Offe
Slide 9: Timetable
Aeris Placement June 2021 Timetable Key Event Indicative dates Trading halt and announcement of the Equity Raising Thursday, 10 June 2021 Placement Bookbuild Opens Thursday, 10 June 2021 Placement Bookbuild Closes Thursday, 10 June 2021 Trading halt lifted Friday, 11 June 2021 Settlement of Placemen
Slide 10: Our Business
Aeris Placement June 2021 Our Business Cracow Gold Operations Ownership 100% Mine type U/G Processing 600 ktpa CIP FY21F Production 70koz – 75 koz Au FY21F AISC A$1,525/oz-A$1,575/oz Au Reserves(1) 550kt @ 5.1 g/t (89koz) Torrens JV Au Resources(1) 2,300kt @ 4.0 g/t (300koz) Ownership 70% Location 7
Slide 11: Market information
Aeris Placement June 2021 Market information ASX Code` AIS Market capitalisation1 A$393.5m Enterprise Value 1 Constellation results A$389.9m Available Cash2 A$29.4m H1 results Outstanding Debt2, 3 A$25.8m Constellation discovery Commodity focus Copper and Gold Cracow Acquisition Shareholding structu
Slide 12: Transformation in last 12 months
Aeris Placement June 2021 Transformation in last 12 months Comparison H1 Dec 19 vs H1 Dec 20 Cash from Operating Share price Market cap $m Revenue $m activities $m Net profit $m Net debt $m 3.4c Dec 19 1 Jun 20 19 108 6 -29 37 214 72 46 11 9 June 21 20.5c 393 Dec 20 +99% +1,053% +260% -70% 12
Slide 13: Aeris Resources
13 as Aeris Resources Av ae f Wet >= a/ We are Aeris Copper Operat
Slide 14: Tritton Copper Operations: A consistent producer with upside
Aeris Placement June 2021 Tritton Copper Operations A consistent producer with upside ● Established underground copper mines and 1.8 Mtpa processing plant in Western NSW, Australia • Operating since 2005 with >320 kt Cu produced ● Highly endowed region and 2,160km2 tenement package • Nearby mines in
Slide 15: Tritton Copper Operations: An unrivalled project pipeline
Aeris Placement June 2021 Tritton Copper Operations An unrivalled project pipeline Project Producing Development Ready Exploring Constellation Avoca Tank Tritton Murrawombie Murrawombie Budgerygar Budgerygar Kurrajong Tritton Avoca Tank Processing Facility South Wing Murrawombie Open Pit Budgery Con
Slide 16: Tritton Copper Operations – there's more copper to be found
Aeris Placement June 2021 Tritton Copper Operations – there’s more copper to be found ● Exploration upside: Highly endowed tenement package (2,160km2) – more than 750kt of copper discovered to date(1) Proven exploration strategy – Constellation discovery demonstrates it’s working 3 most recent
Slide 17: Greenfields Exploration Activities in FY22
Aeris Placement June 2021 Greenfields Exploration Activities in FY22 Constellation • Continue drilling at Constellation across FY22 targeting Maiden Mineral Resource estimates for open pit and underground • Bedrock conductor identified initially from airborne EM survey and confirmed by ground based
Slide 18: Tritton Copper Operations – Constellation Deposit
Aeris Placement June 2021 Tritton Copper Operations – Constellation Deposit • Spectacular results • 45km North-East from Tritton – within trucking distance of Tritton mill • 24 diamond holes drilled to date – majority intersecting copper sulphide mineralisation • High grade results reported near sur
Slide 19: Constellation Deposit – RC drilling
Aeris Placement June 2021 Constellation Deposit – RC drilling • Assays received from 22 Reverse Circulation (RC) holes (assays pending on a further 30 RC holes) • Significant high grade copper intersections including:(1) o TAKRC024 - 38m @ 3.72% Cu, 0.36g/t Au, 3.1g/t Ag (from 8m) o TAKRC025 - 47m @
Slide 20: Resources
Aeris Resources 20
Slide 21: Aeris' other copper exposure
Aeris Placement June 2021 Aeris’ other copper exposure Torrens Canbelego Maroochydore Joint Deposit Deposit Venture • JV (Aeris 30% / Helix (ASX:HLX) 70% - • 100% owned by Cyprium Metals Ltd • Aeris 70% holder and JV Manager 45kms from Tritton processing plant (ASX:CYM) • Early-stage exploration for
Slide 22: Cracow
Craco \ ol fa o —_ © ios oF) 2. © ns We are Aeris
Slide 23: Cracow Gold Operations: A highly cash flow generative mine
Aeris Placement June 2021 Cracow Gold Operations A highly cash flow generative mine that has transformed the company ● A high grade, low cost gold mine in Queensland, Australia with a proven operating history ● Acquired from Evolution Mining in July 2020:(1)(2) • A$60m cash paid at completion • A de
Slide 24: Cracow – a prolific goldfield
Aeris Placement June 2021 Cracow – a prolific goldfield Aeris is re-invigorating exploration Cracow has produced more than 1.4 Moz of gold over its life since first production in 2004 Strong history of replenishing reserves and resources - remains a key focus for Aeris Depletion consistently r
Slide 25: Accelerating Exploration
Aeris Placement June 2021 Accelerating Exploration Near Mine New Space Resource updates ✓ Push mill to 650kt ✓ Prioritising targets ✓ Roses Pride +260%(1) ✓ Focus on increasing UG mine life ✓ Drilling approved for Ballymore ✓ Klondyke Royal +324%(2) ✓ Review old areas and cutoff grades ✓ Gravity sur
Slide 26: Cracow Gold Operations: Exploration of brownfield target areas
Aeris Placement June 2021 Cracow Gold Operations Exploration of brownfield target areas SOVEREIGN Drill target – tested / testing Drill target – not tested. First pass testing BALLYMORE TIP scheduled FY22 CROWN DEEPS • Two rigs increasing to three rigs • Increased FY22 target spend to A$9M • Multipl
Slide 27: Exploring in new spaces – looking for the next big discovery
Aeris Placement June 2021 Exploring in new spaces – looking for the next big discovery Prospectivity review completed. Revision of priority targets. Aggressive exploration planned ● Cracow South-West ✓ Identified as a potential analogue of the Western field mineralised system (~2Moz)(1) • Structures
Slide 28: M&A
Aeris Resources M&A 28
Slide 29: M&A remains a focus
Aeris Placement June 2021 M&A remains a focus Aeris Resources M&A strategy Commodities ✓ Gold and Copper ● Pursue strategic M&A Location ✓ Australia opportunities that add value, ✓ Offshore – Risk reward complement existing portfolio and transform Aeris into a mid- Project stage ✓ Producing operatio
Slide 30: Summary
Aeris Resources Summary 30
Slide 31: Highlights of the past 12 months
Aeris Placement June 2021 Highlights of the past 12 months Cracow Tritton Corporate ✓ Acquisition and integration completed ✓ FY21 guidance 22,500-23,500t Cu @ AISC ✓ Repaid $48m in debt since 1 July 2020 ✓ FY21 guidance 70,000-75,000oz @ AISC of of A$3.60-A$3.75/lb ✓ Sold Yandan gold project (non-c
Slide 32: What makes Aeris different?
Aeris Placement June 2021 What makes Proven team with a Aeris different? consistent track record Further value to unlock Diversified, strong free cash generation We Are Aeris A platform for growth Favourable gold / copper price exposure Financially robust, rapidly deleveraging 32
Slide 33: Appendix A: Risks
Aeris Resources Appendix A: Risks 33
Slide 34: Key Risks
Aeris Placement June 2021 Key Risks Introduction There are risks involved with participating in the Offer and holding Shares in Aeris Resources Limited (the “Company”, “Aeris”, "we" or "us"). Certain risks are specific to an investment in the Company and others are specific to investing in and hol
Slide 35: Risks related to an investment in Aeris
Aeris Placement June 2021 Risks related to an investment in Aeris COVID-19 The global economic outlook is facing uncertainty due to the current COVID-19 (novel Coronavirus) pandemic, which has been having, and is likely to continue to have, a significant impact on global capital markets, commodity p
Slide 36: Risks related to an investment in Aeris (cont.)
Aeris Placement June 2021 Risks related to an investment in Aeris (cont.) Operational and cost risk The Company is a producer of copper and gold which is sold under commercial contracts. The Company’s immediate plans and objectives are dependent upon a continuation of such production generating oper
Slide 37: Risks related to an investment in Aeris (cont.)
Aeris Placement June 2021 Risks related to an investment in Aeris (cont.) Regulatory risk and government policy The availability and rights to explore and produce base metal and/or precious metal, as well as operational profitability generally, can be affected by changes in government policy that ar
Slide 38: Risks related to an investment in Aeris (cont.)
Aeris Placement June 2021 Risks related to an investment in Aeris (cont.) Contractual and joint venture risks Aeris’s ability to efficiently conduct its operations in a number of respects depends upon third party product and service providers and contracts. Accordingly, in some circumstances, contra
Slide 39: Risks related to an investment in Aeris (cont.)
Aeris Placement June 2021 Risks related to an investment in Aeris (cont.) Additional requirements for capital The Company’s capital requirements depend on numerous factors. Depending on such factors as: the continuation of receipt of operating revenue from its operations; the outcome of the Comp
Slide 40: Native Title and heritage risk
Aeris Placement June 2021 Risks related to an investment in Aeris (cont.) Native Title and heritage risk The Native Title Act 1993 (Cth) recognises certain rights of indigenous Australians over land where those rights have not been extinguished. These rights, where they exist, may impact on the abil
Slide 41: General risks
Aeris Placement June 2021 General risks Share market risk The market price of listed securities can be expected to rise and fall in accordance with general market conditions and factors specifically affecting the Australian resources sector and exploration companies in particular. The New Shares car
Slide 42: Appendix B: Mineral Resource and Ore Reserve statements
Aeris Resources Appendix B: Mineral Resource and Ore Reserve statements 42
Slide 43: Tritton – Mineral Resource
Aeris Placement June 2021 Tritton – Mineral Resource (1) Discrepancies in summation may occur due to rounding. (2) Mineral Resource cut-off grades: 0.6% Cu Tritton, 0.6% Cu Murrawombie, 0.6% Cu Avoca Tank, 0.8% Cu Budgerygar, 0.5% Budgery. Mineral Resource is reported on page 27 of the Aeris Resourc
Slide 44: Tritton – Ore Reserve
Aeris Placement June 2021 Tritton – Ore Reserve (1) Discrepancies in summation may occur due to rounding. (2) Cut-off grades vary between deposits and are selected based on economic analysis. They are not a break-even cut-off. (3) Mineral Resources are quoted as INCLUSIVE of the Ore Reserves Estimat
Slide 45: Cracow – Mineral Resource and Ore Reserve
Aeris Placement June 2021 Cracow – Mineral Resource and Ore Reserve (1) Full details of the Cracow Mineral Resource and Ore Reserve are provided in the report entitled Annual Mineral Resources and Ore Reserves (2) The reported Mineral Resource does not include the updated December 2020 Roses Pride M
Slide 46: Cracow – Roses Pride Mineral Resource
Aeris Placement June 2021 Cracow – Roses Pride Mineral Resource 1 Full details of the December 2020 Roses Pride Mineral Resource are provided in the ASX Announcement “Roses Pride Mineral Resource Update” dated 6th January 2021. 46
Slide 47: Cracow – Klondyke Royal Mineral Resource
Aeris Placement June 2021 Cracow – Klondyke Royal Mineral Resource March 2021 Klondyke - Royal Mineral Resource (1)(2) Resource Category Tonnage Au (g/t) Ag (g/t) Au metal Ag metal (kt) (koz) (koz) Measured - - - - - Indicated 183.4 4.0 3.6 23.5 21.2 Inferred 158.0 3.1 2.1 15.9 10.4 TOTAL 341.3 3.6
Slide 48: Competent Persons statement
Aeris Placement June 2021 Competent Persons statement Competent Persons statement Mr Cox confirms that he is the Competent Person for all the Mineral Resource estimates summarised in this Report and he has read and understood the requirements of the 2012 Edition of the Australasian Code for Reportin