True North Copper Limited · ASX:TNC
True North Copper — Investor Presentation (May 2024)
39 slides from True North Copper's investor presentation, May 23, 2024
Slide 1: Investor Presentation
Investor Presentation ASX: TNC MAY 2024 Not for release to US wire services or distribution in the United States 1
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER FORWARD LOOKING STATEMENTS The Presentation includes “forward looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “pro
Slide 3: Investment Highlights
TRUE NORTH COPPER INVESTMENT HIGHLIGHTS § Underwritten $24.27 million equity raising to fund TNC through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), exploration growth strategy and strengthen financial position §
Slide 4: Where We Operate
Where We Operate Mt Oxide Project CLONCURRY COPPER PROJECT (100% TNC) Capricorn Copper § Fully permitted for mining restart (Concentrator) § Existing infrastructure at the Great Australia Mine (GAM) includes oxide heap leach and solvent Flamingo extraction plant, mining/support facilities and existi
Slide 5: Corporate Snapshot
ASX: TNC CORPORATE SNAPSHOT Corporate Structure Board of Directors Shares on issue 596.4M Ian McAleese Executive Chairman Options on issue (average exercise price $0.334) 21.6M Marty Costello Executive Director Tim Dudley Non-Executive Director Warrants on issue (exercise price $0.1177) 46.3M Paul F
Slide 6: Equity Raising
EQUITY RAISING INVESTOR PRESENTATION | MAY 2024 6
Slide 7: Equity Raising Overview
Equity Raising Overview • Placement to professional and sophisticated investors (“Placement”) in conjunction with a 1-for-2 accelerated pro rata non-renounceable entitlement offer (“Entitlement Offer”) to raise gross proceeds of approximately$24.27 million (“Equity Raising”). • Fully Underwritten $2
Slide 8: Sources & Uses
Sources & Uses Sources Of Funds (A$m) Cash (as at 31 March 24, unaudited) 3.1 • Equity Raising proceeds to strengthen the Company's financial Gross proceeds from Underwritten Component of the Equity Raising 24.27 position and maintain existing facilities and liquidity, while TNC Total Sources follow
Slide 9: Supportive lender
Supportive lender 1 § TNC’s lender Nebari Natural Resources Credit Fund II, LP (Nebari) remains fully supportive. § Nebari have provided important waivers to ensure full financial flexibility during the ramp-up of the Cloncurry Project, including: o Waiver of minimum cash covenant and ageing account
Slide 10: Pro Forma Financial Position
Pro Forma Financial Position TNC – Current Equity Raising Adjustments TNC- Pro Forma1 § Unrestricted cash of $27.4m post Share Price (at the Issue Price) 0.075 0.056 0.056 equity raising and total liquidity of $42.6m (including the undrawn Shares issued (m) 596.4 433.4 1,029.9 Nebari debt). Market C
Slide 11: Indicative Equity Raising Timetable
Indicative Equity Raising Timetable Event Date Trading Halt and announcement of the Offer and Prospectus lodged with ASIC and ASX Thursday, 23 May 2024 Placement and Institutional Entitlement Offer opens Thursday, 23 May 2024 Placement and Institutional Entitlement Offer closes Friday, 24 May 2024 A
Slide 12: Cloncurry Copper Project
CLONCURRY COPPER PROJECT INVESTOR PRESENTATION | MAY 2024 12
Slide 13: Cloncurry Copper Project Overview
Cloncurry Copper Project Overview 1 § Mining 4.8Mt over initial 4.6 year life • Producing 28.7kt Cu and 20.9koz Au • 90% copper concentrate revenue over LoM • Sulphide material processed under tolling agreement at Ernest Henry • 10% of LoM revenue is Copper Sulphate produced by TNC via owned and ope
Slide 14: Cloncurry Copper Project Economics
Cloncurry Copper Project Economics 1 MRS Project Assumption unit Spot Prices Upside Case § Strong economics with rising spot prices: Study Case ü Project NPV10 of A$163m Copper Price US$/t 8,500 9,750* 11,000 ü Project Cash Flow of A$200m Gold Price US$/oz 1,850 2,300* 2,500 ü 716% IRR Exchange Rate
Slide 15: Cloncurry Copper Project Financing
Cloncurry Copper Project Financing 1 Cloncurry Copper Project Ramp Up (Period to Nov 2024, A$m) 60 § Additional US$10m Nebari facility available on commencement of commercial production of sulphide ore 50 22 and delivery of first ore to Ernest Henry ROM pad. -1.5 -0.3 -4 § Based on Mining Restart St
Slide 16: Cloncurry Copper Project Mine Plan
Cloncurry Copper Project Mine Plan Wallace North GAM & Taipan Mining Start Expand Scale § Open pit mining operation with primarily toll milling § Transitional / Fresh ore hauled to EH for processing § Oxides processed via heap leach & SX plant at GAM site • Q4 FY24 - Commence mining ore at Wallace N
Slide 17: Cloncurry Copper Project - Ready for Mining
Cloncurry Copper Project - Ready for Mining § All contractors are engaged and ready to go § Key operators & workforce recruitment is well advanced § All regulatory requirements are in place § Local landowners are primed to grant land access § Local authorities have approved road access and use § Act
Slide 18: Cloncurry Copper Project - Copper Sulphate
Cloncurry Copper Project - Copper Sulphate Awaiting mining restart for new oxide ore to increase copper in circuit § Copper Sulphate Crystal Plant & Heap Leach located at Cloncurry Operating Hub § Crystal SX Plant refurbished & shipments ongoing § Commissioning & defect correction complete § Process
Slide 19: Building Relationships
BUILDING RELATIONSHIPS CLONCURRY COPPER PROJECT Copper Ore Tolling & Copper Concentrates Offtake 8 • Toll-milling services, up to 1 Mtpa for the LoM. $28M USD Finance Facility • Binding offtake agreement with Glencore for 100% of copper concentrate from TNC’s CCP. • Concentrate processed at the near
Slide 20: Growth Strategy
GROWTH STRATEGY INVESTOR PRESENTATION | MAY 2024 20
Slide 21: Exploration Upside
EXPLORATION LT F AU T UPSIDE LAH FAUL LT Vero AU PROJECT A NF AREA RM DO COOLUL Capricorn Copper WORLD-CLASS N 850km2 in the world-class Mt Isa Inlier RDO REGION GO T UL U NT FA T MO LE UL AB FA MOUNT ISA RK BY MA AM RE DISTRICT SCALE QU Multiple quality Cu-Au-Co-Ag targets in mineralised MT FAULT B
Slide 22: Mt Oxide Project +10km Prospective Trend
Mt Oxide Project +10km Prospective Trend Discovery potential for additional copper-cobalt-silver shoots along underexplored 29 Metals Mining Lease +10km Mt Oxide and 8km Big Oxide trends. Mt Gordon § Hosts the Vero Resource of 15.98 Mt @ 1.43% Cu and 6.91 g/t Ag total combined Measured, Indicated an
Slide 23: Mt Oxide Project – Vero Resource vs Capricorn Copper
Mt Oxide Project – Vero Resource vs Capricorn Copper* § Vero has similar mineralisation style & geochemical anomalism to 29 Metals’ (ASX:29M) Capricorn Copper Project.* 3 § 29 Metals’ (ASX:29M) Capricorn Copper hosts Resources of 62.2 Mt at 1.8% copper, 9.0 g/t silver4 § Capricorn Copper mine demons
Slide 24: Mt Oxide Project – Exploration Progress and Plan
2023 Progress Mt Oxide Project – Exploration Progress and Plan TNC acquires Mt May Oxide Project Goals For 2024 Programme: including the Vero Indicate and Inferred 1. Confirmation drilling completed, resource re-estimation nearing completion this quarter Resource 15.98 Mt at Initial 10 hole, 1.43% C
Slide 25: Regional Exploration
Cloncurry Copper Project Ernest Henry Exploration Focus on surface mapping, survey & geophysics, historic resource gap analysis (for resource / LoM feed), targeting and drilling GREATER Eight high priority drill ready targets at Cloncurry Greater Australian Resource Targets AUSTRALIAN Cloncurry Copp
Slide 26: Next Steps
TRUE NORTH COPPER NEXT STEPS 1. Restart mining at Cloncurry Copper Project to establish profitable operating platform 2. Continue to increase the resource base at Cloncurry and Mt Oxide 3. Evaluate regional opportunities to build scale and improve operating margins TNC is primed to become Australia'
Slide 27: Appendices
APPENDICIES INVESTOR PRESENTATION | MAY 2024 27
Slide 28: References
REFERENCES 1. True North Copper Limited. ASX (TNC): 15 February 2024, Mining Restart Study: Positive Cloncurry Project Economics 2. True North Copper Limited. ASX (TNC): Release 19 January 2024: TNC Increases Wallace North Resource. 3. True North Copper Limited, ASX (TNC): 18 March 2024: Camp Gossan
Slide 29: Appendix 1: Cloncurry Copper Project JORC Resources and Reserves
APPENDIX 1: Cloncurry Copper Project- October 2023 JORC Resources and Reserves Table 1. TNC Cloncurry Copper Project Mineral Resource Estimates Summary Table 2. TNC Cloncurry Copper Project Ore Reserves Resource Cut-off Tonnes Cu Au Co Ag Cu Au Co Ag Resource Category Tonnes (Mt) Cu (%) Au (g/t) Cu
Slide 30: Appendix 1: Mt Oxide Project Vero JORC Resources
APPENDIX 1: Mt Oxide Project- Vero JORC Resources Table 1. TNC Mt Oxide Mineral Resource Estimates Summary – Copper & Silver Resource Cut-off Tonnes Cu Au Co Ag Cu Au Co Ag Category (% Cu) (Mt) (%) (g/t) (%) (g/t) (kt) (koz) (kt) (Moz) Mt Oxide – Vero Copper-Silver Measured 0.50 0.05 1.35 - - 8.83 0
Slide 31: Mining Restart Key Mine Metrics
Appendix 2: CLONCURRY COPPER PROJECT MINING RESTART KEY MINE METRICS 1 Assumption Unit Assumption Value Copper Price 1 US$/t 8,500 Gold Price 2 US$/oz 1,850 AUD:USD 3 A$1:US$ 0.70 Discount Rate % 10% Model Start Date Date 01-Jan-24 Corporate Tax Rate % 30% Accumulated Tax Losses A$M 110 § Sulphide O
Slide 32: Mining Restart Key Mine Metrics
CLONCURRY COPPER PROJECT MINING RESTART KEY MINE METRICS 1 Item Total LOM Unit Cost Unit Cost Unit Cost A$ Million (A$/t Ore Processed) (A$/lb Cu Payable) (US$/lb Cu Payable) Mining 98.8 20.5 0.32 0.23 Processing (including Surface Haulage) 131.0 27.1 0.43 0.30 General & Administration 7.0 1.4 0.02
Slide 33: Appendix 3 - Key Risks
APPENDIX 3 - KEY RISKS Funding risk The Company’s ability to effectively implement its business and operations plans in the future, to take advantage of opportunities for acquisitions, joint ventures or other business opportunities and to meet any unanticipated liabilities or expenses which the Comp
Slide 34: Appendix 3 - Key Risks (Continued)
APPENDIX 3 - KEY RISKS (CONTINUED) Production The Company cannot give any assurance that it will achieve its production estimates. The failure of the Company to achieve its production estimates could have a material and adverse effect on any or all of its future cash flows, results of operations and
Slide 35: Appendix 3 - Key Risks (Continued)
APPENDIX 3 - KEY RISKS (CONTINUED) Commodity Price Volatility and Exchange Rate The Company’s operating results, economic and financial prospects and other factors will affect the trading price of the Shares. In addition, the price of Shares is subject to varied and Risks often unpredictable influen
Slide 36: Appendix 4 - International Offer Restrictions
APPENDIX 4 - 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 In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional
Slide 37: Appendix 4 - International Offer Restrictions (Continued)
APPENDIX 4 - INTERNATIONAL OFFER RESTRICTIONS (CONTINUED) United States Board. Unless stated otherwise, all dollar amounts contained in this document are in Australian dollars. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States.
Slide 38: Appendix 5 - Summary of Underwriting Agreement
APPENDIX 5 - SUMMARY OF UNDERWRTING AGREEMENT The Entitlement Offer and Placement are fully underwritten by Canaccord Genuity (Australia) Limited (ACN 075 071 466) (AFSL 234666) (Canaccord ) and Morgans Corporate Limited (ACN 010 539 607) (AFSL 235407) (Morgans ) (together, the Underwriters ). The U
Slide 39: Thank you
Thank you Ian McAleese +61 0427 227 530 Ian.mcaleese@truenorthcopper.com.au TNC is primed to become Australia's next copper producer 39