Orion Minerals Limited · ASX:ORN
Orion Minerals — Resources Rising Stars Summer Series 2019
31 slides from Orion Minerals's conference presentation, Dec 3, 2019
Slide 1: Resources Rising Stars Summer Series Presentation
ASX/JSE RELEASE: 3 December 2019 Resources Rising Stars Summer Series Presentation For personal use only Orion Minerals Ltd (ASX/JSE: ORN) (Orion or the Company) advises that Managing Director and CEO, Mr Errol Smart, will be presenting at Resources Rising Stars Summer Series on Tuesday, 3 December
Slide 2: Delivering the Prieska Project
For personal use only ASX/JSE: ORN ASX/JSE: ORN DELIVERING THE PRIESKA PROJECT A strong foundation for near-term development and long-term growth PAGE Presentation: December 2019
Slide 3: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion targets, estimates and assumptions in respect of metal To the maximum extent permitted by law, Orion and any of its Minerals Ltd and its subsidiaries (Orion or Company) and their production and prices, operat
Slide 4: Corporate Structure
CORPORATE STRUCTURE For personal use only • Primary listing on the ASX. • Secondary listing on Main Board of the Johannesburg Stock Exchange. Capital structure summary Significant shareholders % Shares on issue 1 2,830M Tembo Capital 24.6 Options on issue 211M Wyllie Group 5.7 Market capitalisation
Slide 5: Orion Minerals – Compelling Investment Case
ORION MINERALS – COMPELLING INVESTMENT CASE For personal use only THE OREBODY • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% Zn • Mineral Reserve: 13.62Mt @ 1.06% Cu, 3.18% Zn FOUNDATION PHASE (10 YR) BFS OUTCOMES • Initial 10-year, 2.4Mtpa operation targeting 22ktpa Cu & 70ktpa Zn • S
Slide 6: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT For personal use only • World-class orebody – NW Hutchings Shaft SE recorded as a Top 30 global VMS deposit • Located in Northern Cape Province, 270km south-west of regional capital, Kimberley Current Flooded Water Level • Established mining region, yet least
Slide 7: Prieska: Developing a New Mine in the Footprint of an Old One
PRIESKA: DEVELOPING A NEW MINE IN THE FOOTPRINT OF AN OLD ONE For personal use only Extensive infrastructure already in place: • Primary shafts and underground decline roadways • Sealed access roads to project site • 48km via bitumen road to existing rail siding • Four high-voltage regional lines li
Slide 8: Prieska: Mine of the Future
PRIESKA: MINE OF THE FUTURE For personal use only Implementing a modern operating philosophy (4IR enabled) can contribute to achieving quantum changes in key output parameters that are traditionally slow to improve or have regressed in the local mining industry, including: • Safety and health improv
Slide 9: Prieska June 2019 BFS Highlights
PRIESKA JUNE 2019 BFS HIGHLIGHTS For personal use only FOUNDATION PHASE LOM EXTENSION PHASE • Demonstrates compelling investment case to establish • LOM extensions leveraging off Foundation Phase financially robust mine with initial 10-year life development and requiring limited or no o Pre-tax free
Slide 10: Further Optimisations Poised to Enhance Value
FURTHER OPTIMISATIONS POISED TO ENHANCED VALUE For personal use only Engineering and detailed costing at BFS (15%) accuracy scheduled for completion Q1 2020 • Metallurgical plant design o Include SAG milling o Removes secondary crushing, screening, & rock conveyors. o Capital (A$15m) & Opex savings
Slide 11: Project Financing Considerations
PROJECT FINANCING CONSIDERATIONS For personal use only Majority Senior Secured Project Debt Finance * Proposals received from seven institutions * includes two specialist development finance institutions * Discussions progressing * To be finalised post optimisation – revised project cashflow Subordi
Slide 12: Project Significant to South Africa
PROJECT SIGNIFICANT TO SOUTH AFRICA STRONG GOVERNMENT SUPPORT For personal use only South African State President Cyril Ramaphosa congratulates Orion Minerals Ltd CEO Errol Smart on progress at Prieska State President’s Investment Conference - 6 November 2019 PAGE 11
Slide 13: Key Social Impacts of the Proposed Prieska Mine
KEY SOCIAL IMPACTS OF THE PROPOSED PRIESKA MINE For personal use only EMPLOYMENT CREATION • Estimated that 846 people (operational Phase) will be employed • Empirical multiplier effect potentially creates 2,500 associated jobs INCREASE IN GROSS DOMESTIC PRODUCT • District GDP increase expected of 20
Slide 14: BEE: Pivotal Transaction Completed
BEE: PIVOTAL TRANSACTION COMPLETED For personal use only BEE New BEE Entrepreneurs Orion Entrepreneurs 10.7% 100% Safika Black Star Kolobe Nala Resources Minerals Investment Prieska Prieska Community Prieska Northern projects Employees Resources Trust Trust Orion Exploration 1 (PR application pendin
Slide 15: A Dominant Land-Holding in Mineral Belt Identical to Fraser-Albany
A DOMINANT LAND-HOLDING IN MINERAL BELT IDENTICAL TO FRASER-ALBANY (AUSTRALIA) For personal use only • We have the worlds largest, single lens VMS Cu-Zn deposit o BFS completed June 2019 o Optimisation studies well advanced • Located in an underexplored mineral belt • 22 additional known VMS Cu-Zn o
Slide 16: Fraser Range Australia: IGO JV – ORN Free Carried
FRASER RANGE AUSTRALIA: IGO JV – ORN FREE CARRIED* For personal use only “We have a conviction the (Nova) system is much larger than we believed, and the increased probability of additional discoveries means we are motivated to significantly increase our spending in 2020.” – IGO Managing Director Pe
Slide 17: Appendices
For personal use only APPENDICES PAGE 16
Slide 18: Bankable Feasibility Study Dashboard
BANKABLE FEASIBILITY STUDY DASHBOARD For personal use only Price and FX Assumptions Unit Value Financial Performance Unit Value Metal price – Cu USD/t 6,834 NPV pre-tax (post-tax) @ 8.0% discount rate AUD M 574 (408) Metal price – Zn USD/t 2,756 IRR pre-tax (post-tax) % 38% (33%) Exchange rate ZAR:U
Slide 19: Construction Milestones
CONSTRUCTION MILESTONES For personal use only Milestone Description Month 1 10 20 30 33 EVAPORATION DAM & TSF EIA Amendment Process Construct, Line & Commission Evaporation Dams Construct and Commission TSF SHAFT DEWATERING & CONSTRUCTION Surface & Shaft Preparation, Pump Installation 294 Level De-w
Slide 20: Mining Production Profile
MINING PRODUCTION PROFILE For personal use only • Underground mining for majority of the Foundation Phase MILLED ORE SOURCES • Small open pit mined on retreat • Underground mining to commence on completion of: o mine dewatering o shaft refurbishment • Underground establishment program of 23 months b
Slide 21: Mineral Resource
MINERAL RESOURCE For personal use only The Mineral Resources are inclusive of the Mineral Reserves Refer ASX release 26 June 2019 PAGE 20
Slide 22: Mineral Reserve
MINERAL RESERVE For personal use only Refer ASX release 26 June 2019 PAGE 21
Slide 23: Mine Face to Market
MINE FACE TO MARKET For personal use only NaCN & ZnSO4 or SMBS Stockpile Classifying Cyclone Double Deck Secondary Screen Sizing Screen Lime ROM Underground Primary Crusher Primary Mill Secondary Mill Existing Mill Feed Bunkers Reagents Reagents Cu Float Collector Collector Conditioning Promoter Pro
Slide 24: Problem Looming: Copper Supply Chain
PROBLEM LOOMING: COPPER SUPPLY CHAIN For personal use only Cecilia Jamasmie: Mining (Dot) Com April 10 2018 PAGE 23
Slide 25: Large Copper Mines Have a Very Long Lead Time
LARGE COPPER MINES HAVE A VERY LONG LEAD TIME For personal use only Not enough low cost production mines already in development Existing LOMs may be extended with substantially higher metal prices Mining(dot)Com: Visual Capitalist; 23 June 2015 PAGE 24
Slide 26: Add a Major New Copper Demand Driver
ADD A MAJOR NEW COPPER DEMAND DRIVER For personal use only Mining(dot)Com: Visual Capitalist; 23 June 2015 PAGE 25
Slide 27: And Copper Hungry Renewable Energy
AND COPPER HUNGRY RENEWABLE ENERGY For personal use only Mining(dot)Com: Visual Capitalist; 23 June 2015 PAGE 26
Slide 28: Zinc Demand – Consistent Consumption Growth
ZINC DEMAND – CONSISTENT CONSUMPTION GROWTH For personal use only • 230,000tpa new zinc production required to supply projected demand growth • Current supply attrition not being replaced in time PAGE 27
Slide 29: Zinc Concentrate Supply – New Mines Take Time
ZINC CONCENTRATE SUPPLY – NEW MINES TAKE TIME For personal use only Current development projects dominated by poor quality concentrate producers - unsustainable PAGE 28
Slide 30: Zinc Metal Supply – No Stocks to Absorb Shocks
ZINC METAL SUPPLY – NO STOCKS TO ABSORB SHOCKS For personal use only Zinc metal stocks at record lows – strong fundamentals with price subdued by sentiment PAGE 29
Slide 31: For Further Information, Contact
For personal use only For further information, contact: Orion Minerals Limited Suite 617, 530 Little Collins Street Melbourne Vic 3000 Australia ASX/JSE: ORN Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au PAGE
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