Slide 1: AMEC Conference Presentation June 2017
AMEC CONFERENCE PRESENTATION JUNE 2017
Slide 2: General Disclaimer
PROUDLY POSITIONED AS AN AUSTRALIAN MINER General Disclaimer This presentation has been prepared by Metals X Limited (“Metals X” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation
Slide 3: Metals X Limited: An Australian Diversified Base Metals Company
METALS X LIMITED An Australian Diversified Base Metals Company • An ASX300 listed company, Market Cap $465M and EV $340M. • Global top 10 primary tin producer (AISC margins of +A$9,000/t). • Significant copper producer (~25,000tpa Cu). • Development-ready world class nickel-cobalt project (Australia
Slide 4: Corporate Overview
CORPORATE OVERVIEW CORPORATE STRUCTURE (ASX: MLX) BOARD & MANAGEMENT Shares 606M Non-Executive Chairman Peter Newton Share price A$0.75 Managing Director Warren Hallam Market Cap A$465M Major indices MSCI Small cap, ASX 300 Executive Director Stephen Robinson Net Cash & Working Capital A$113M Non-Ex
Slide 5: Nifty Copper Operation
COPPER Nifty Copper Operation 5
Slide 6: Nifty Copper Operation
COPPER Nifty Copper Operation • Acquired September quarter 2016 by off-market takeover. • A going concern copper producer (~25,000tpa). • Significant infrastructure - 2.5Mtpa concentrator, large u/g mine +3.5Mt U/G conveyor and crusher, camp, sealed airstrip, buildings. • Nifty Mine 770Kt Cu metal i
Slide 7: Nifty Resource and Reserve Estimates
COPPER Nifty Resource and Reserve Estimates Nifty Sulphide Total Mineral Resource Estimates – JORC 2012 Nifty Total Tonnes (Mt) Grade( %) Copper (Kt) Measured 20.30 1.81 367 Indicated 15.35 1.37 210 Inferred 11.55 1.18 136 TOTAL 47.20 1.51 713 Nifty Total Ore Reserves – JORC 2012 Nifty TotaL Tonnes
Slide 8: Opening up the Mine – Drilling to Date
COPPER Opening up the Mine – Drilling to Date Plan View North East Limb West Extension 300m Drill hole Location 23L 8
Slide 9: Opening up the Mine – North East Limb
COPPER Opening up the Mine – North East Limb Plan View North East Limb West Extension 300m Drill hole Location 23L 9
Slide 10: North East Limb 300m Stoping Horizon
COPPER North East Limb 300m Stoping Horizon + 700Kt ore defined over existing 2 levels, mineralisation on additional 5 levels below Stoping underway 10
Slide 11: Opening up the Mine – Western Extension
COPPER Opening up the Mine – Western Extension Plan View North East Limb West Extension 300m Drill hole Location 23L 11
Slide 12: Defined Extensions 200m to West
COPPER Defined Extensions 200m to West • Additional near tern stopes. • Strong extensional results. • Expected Resource / Reserve upgrade. NUG0059: 7.6m@4.39% Cu (MCU) NUG0081: 4m@5.66% Cu (MCU) 12
Slide 13: Significant Mineralisation Horizon Down-dip
COPPER Significant Mineralisation Horizon Down-dip Current Mining Front last 10 yrs 600m Defined mineralisation 1.2kms +2kms down dip Target Cu% 13
Slide 14: Seismic Complete – Interpretation Underway
COPPER Seismic Complete – Interpretation Underway • 4 lines x +10km completed, Lithology Response interpretation to be complete by early July. Dyke Alteration Response • Expected to be able to map alteration patterns with seismic Southern Fault Structures indicated by the high Acoustic Impedance (AI
Slide 15: Next 12 Months Targeted U/G Production
COPPER Next 12 Months Targeted U/G Production 5,000tpd 6,500tpd 36,000CuTpa 40,000CuTpa 4,500tpd 24,000CuTpa 15
Slide 16: 12 Month Stope Plan
COPPER 12 Month Stope Plan UVW 203-213 Nth Limb TU200 - 203 RU233 - 238 OJ193 The ‘Checkerboard’ Outline 16
Slide 17: Maroochydore Deposit
COPPER Maroochydore Deposit • Resource 486Kt copper and 19Kt cobalt. • Sulphide resource recent discovery and undefined. • Significant cobalt resource. • Drilling to commence end of June 2017. 12MAD088: 10m @ 2.95% Cu, 5.5gpt Ag from 353m and 1m @ 9.40% Cu,18.5gpt Ag from 357m 17
Slide 18: Copper: Large land holding with significant potential
COPPER Large land holding with significant potential. Previous explorers have completed most of the background work and the opportunity lies with us. 18
Slide 19: Regional Exploration
COPPER Regional Exploration • 3D IP interpretation for Nifty and Maroochydore completed. • Airborne geophysics completed. • Seismic surveys completed – interpretation underway. • Gravity surveys over strategic targets completed. • Drilling to commence at Finch in mid June, second rig to start at Mar
Slide 20: Australia's Only Significant Tin Producer
TIN Australia’s Only Significant Tin Producer Rentails Project (planned) Renison Mine & Infrastructure Metals X is one of the very few, if not the only listed tin producer in the western-world. 20
Slide 21: Tasmanian Tin Operations (50%)
TIN Tasmanian Tin Operations (50%) MLX RENISON TIN MINE • Sn Reserves 5.7Mt @ 1.28% Sn (72Kt) ~ 8 yrs. • Resources 11.5Mt @ 1.44% Sn (165Kt) ~16yrs. • Operations Production: 7 – 7,500tpa Sn @ A$18,500/t AISC. • Current Tin price: A$27,500/t (~$9,000 margin per tonne). • MLX EBITDA ~ $40Mpa; Cashflow
Slide 22: Next Step: 15-20% Expansion With Minimal Capital
TIN Next Step: 15-20% Expansion With Minimal Capital • Earthworks commenced. • Estimate completion March 2018. • Expand production by ~ 200,000tpa. • 1,000 to 1,500t tin pa. • Capex $14M, Payback <12 months. • Reduce AISC to $17,500/t Tin. ORE SORTING – X-RAY TRANSMISSION (XRT) 22
Slide 23: Renison Expansion Project
TIN Renison Expansion Project Proposed New Fumer Plant • Reserve: 22.5Mt @ 0.45% Sn (100Kt Tin) - 11 Years. • Project Capital Cost Estimate (Metals X 50% share) ~A$100 million including: – New Tin Concentrator 2Mtpa ~A$40 million – Tin Fumer Plant 60ktpa ~A$40 million – New Tailings Dam Renison~A$10
Slide 24: Central Musgrave Project
NICKEL Central Musgrave Project 24
Slide 25: Wingellina - Current Status
NICKEL Wingellina - Current Status • Over 40 years reserve at p.a. production rate of 40,000t Ni and 3,000t Co. • Feasibility study ( 25%) was completed in 2008. • 2010 Metals X signed a ground breaking Mining Agreement with the native title holders, the first ever negotiated in the region. • Water
Slide 26: Feasibility Outcomes
NICKEL Feasibility Outcomes Ore Reserves 167.5M tonnes @ 1% Ni, 0.08% Co Annual Metal Production 40,000 tonnes Ni, 3,000 tonnes Co Mine Life 40+ Years Metal Price Assumptions Ni US$20,000/t, Co US$45,000/t Exchange Rate Assumption AUD 0.85 Production Cost US$3.34/lb (after Co credits) Est. Average A
Slide 27: Wingellina – Significant Cobalt Resource
NICKEL Wingellina – Significant Cobalt Resource 100m High grade cobalt domains within the current nickel resource WPRC 0009 30m @ 0.31%Co + 1.49% Ni • 29.7Mt @ 0.14%Co, 41,580t Co From 3m (3.04% NiEq) (0.1% Co Cut-off) WPRC 0003 14m @ 0.18%Co + 1.45% Ni • 85.9Mt @ 0.11%Co, 94,490t Co From 11m (2.35%
Slide 28: Summary
SUMMARY • Three world class ore bodies – Nifty, Renison and Wingellina. • Strong cashflow from tin and copper. • Target of 60% increase in copper production over next 12-18 months with minimal capital – target 40,000tpa Cu @ US$1.75/lb Cu. • Nifty drilling has already defined extensions to the East,