29metals Limited · ASX:29M
29metals — Investor Presentation (July 2021)
26 slides from 29metals's investor presentation, Jul 13, 2021
Slide 1: ASX Announcement: Company Presentation
ASX ANNOUNCEMENT Tuesday, 13 July 2021 For personal use only COMPANY PRESENTATION Accompanying this release is a 29Metals Limited (‘29Metals’ or, the ‘Company’) presentation. The presentation will be used by the Company to provide an introduction to 29Metals to market participants. The information i
Slide 2: Introducing 29Metals
For personal use only 29Metals Introducing 29Metals July 2021
Slide 3: Important information
Important information For personal use only The information in this presentation is taken from the 29Metals Prospectus dated 21 June 2021 (the “Prospectus”). Readers should refer to the Prospectus for further information, a copy of which is available on the 29Metals website at www.29Metals.com. Fina
Slide 4: Our vision, strategy and approach to sustainability
Our vision, strategy and approach to sustainability For personal use only Golden Grove July 2021 3
Slide 5: Our vision and strategy
Our vision and strategy For personal use only To be a leading copper-focused mining company delivering sustainable growth in shareholder value Execute Our Plan Deliver operating plan Continuous improvement – Safety and environmental performance – Further productivity gains and unit cost reductio
Slide 6: ESG matters
Our vision and strategy ESG matters For personal use only 29Metals is committed to robust governance, safety and sustainability COPPER OUR LEADERSHIP Sits at the heart of electrification, Board and leadership team with extensive decarbonisation and the global executive experience developing and tran
Slide 7: Our approach to sustainability
Our approach to sustainability Sustainability For personal use only Key environmental management priorities include management of tailings, responsible use of natural resources and climate change Cumulative Global Warming Potential from Extraction and Detailed management systems and processes for
Slide 8: Overview
Overview For personal use only Golden Grove Mill July 2021 7
Slide 9: Introducing 29Metals
Overview Introducing 29Metals For personal use only 1 2 3 4 Highly experienced Board Substantial copper Transition to a green High-grade, long mine and management team producer, with all assets economy underpins life copper portfolio, with a track record of in Tier 1 jurisdictions attractive demand-
Slide 10: Board and Management
Board and Management Highly experienced Board and management team with a track record of safe and efficient operations For personal use only Owen Hegarty OAM Peter Albert Fiona Robertson Jacqueline McGill AO Martin Alciaturi Chair, Managing Director Independent Independent Independent Non-Executive
Slide 11: Substantial copper producer, with all assets in Tier 1 jurisdictions
Substantial copper producer, with all assets in Tier 1 jurisdictions High-grade, long mine life copper portfolio, complemented by diversified by-product revenue For personal use only Golden Grove Capricorn Copper Redhill Australia Australia Chile 2021 Prod1: 46kt Cu-eq 2021 Prod1: 21kt Cu-eq Strateg
Slide 12: Copper market
Copper market Transition to a green economy underpins attractive demand-supply outlook for copper For personal use only Strong demand growth outlook and supply challenges expected to create a structural demand-supply deficit for copper Copper demand is expected to remain strong1… … driven by its wid
Slide 13: Organic growth opportunities
Organic growth opportunities Substantial pipeline of organic growth opportunities across the portfolio For personal use only Golden Grove Golden Grove Golden Grove Capricorn Copper Capricorn Copper Capacity improvements Development of high-grade Development of Gossan Valley Complete transition to so
Slide 14: Organic growth opportunities
Organic growth opportunities 0.9Mt 3.4Mt Regional exploration Substantial pipeline of organic growth opportunities across the portfolio Reserve, Resource, For personal use only Cu-eq1 upside Cu-eq1 Not Included in current Mineral Resources2 Included in current Mineral Resource2s Included in current
Slide 15: Investment highlights
Investment highlights Growth in 2021 EBITDA and attractive FCF generation For personal use only Growth in 2021 pro forma EBITDA underpinned by expected favourable price environment and robust operating performance Production would increase to ~76Kt Cu-eq1 on like- Production (kt, Cu-eq)1 for-like pr
Slide 16: Production overview
Production overview For personal use only Capricorn Copper drilling July 2021 15
Slide 17: Production by segment: Golden Grove
Production by segment Golden Grove For personal use only Ore mined and ore milled (kt) Production (kt, Cu-eq)1 Increased ore mined: 44% at Golden Grove (to 1.4Mtpa) from 2017-2020 Average Cu milled grade reduced from ~1.9% in 2019, to ~1.6% in 2020, and expected to reduce to ~1.3% in 2021 1,522
Slide 18: Production by segment: Capricorn Copper
Production by segment Capricorn Copper For personal use only Ore mined and ore milled (kt) Production (kt, Cu-eq)1 Increased ore mined: 36% at Capricorn Copper (to 1.8Mtpa) from 2018-2020 Production flat year on year, benefiting from higher grade ore 2021 lower from temporary suspension of 1Q2
Slide 19: Summary Financial information
Summary Financial information For personal use only Capricorn Copper drilling July 2021 18
Slide 20: Group pro forma EBITDA bridge
Group pro forma EBITDA bridge For personal use only 2020 to 2021 pro forma EBITDA bridge (A$m)1 2021 forecast EBITDA of Pro forma EBITDA in 2021 is forecast to $221m based on forward curve increase by $44.9 million from 2020, driven pricing of US$4.28/lb Cu by: Forecast impact of increasing 9 comm
Slide 21: Cost assumptions
Cost assumptions1 For personal use only Golden Grove Golden Grove C1 Costs (US$/lb)2 Golden Grove AISC (US$/lb) 2 Forecast increase in $ million C1 Costs in 2021 primarily due to higher mining Forecast increase in $ million AISC in 2021, reflecting the change in absolute costs, lower gold volume
Slide 22: Capital expenditure
Capital expenditure For personal use only More than $400 million1,2 invested into the 29Metals portfolio since acquisition by EMR Capital investors Pro forma capex by asset (A$m)1 Pro forma capex by type (A$m)1 115 115 108 105 108 105 15 11 19 12 12 83 83 84 68 21 30 25 75 26 44 3 17 17 57 60 47 38
Slide 23: Appendix: Copper equivalent metrics calculations
For personal use only Appendix Copper equivalent metrics calculations Golden Grove core yard July 2021 22
Slide 24: Copper equivalent metrics calculations
Copper equivalent metrics calculations For personal use only Cu-eq is a measure of contained metals, where the total value of all metals within mineralized materials is calculated on the basis of assumed prices for such metal, and then converted to a ‘copper equivalent’ by dividing this total value
Slide 25: Copper equivalent metrics calculations
Copper equivalent metrics calculations For personal use only Ore Reserves and Mineral Resources expressed in Cu-eq terms Section 4.3 of the Prospectus outlines the methodology applied by 29Metals to express Ore Reserves and Mineral Resources in Cu-eq terms, with key inputs being: contained metals
Slide 26: Unlocking value to empower the future
For personal use only Unlocking value to empower the future. March 2021 25