29metals Limited · ASX:29M
29metals — FY2022 Earnings Presentation
30 slides from 29metals's earnings presentation, Feb 23, 2023
Slide 1: 2022 Full-Year Results and 2022 Mineral Resources & Ore Reserves Estimates
This is an updated version of the presentation originally released on 23 February 2023. Refer to 29Metals’ market release dated 24 February 2023. 2022 Full-Year Results 2022 Mineral Resources & Ore Reserves Estimates Peter Albert Managing Director & Chief Executive Officer Peter Herbert Chief Financ
Slide 2: Important Information
Important Information The information in this presentation is provided for general information regarding 29Metals Limited (the ‘Company’) and its subsidiaries (together with the Company, ‘29Metals‘). This presentation is not a recommendation to invest in 29Metals securities, and the information pres
Slide 3: Important Information
Important Information FORWARD LOOKING STATEMENTS This presentation contains forward looking statements and comments about future events, including in relation to 29Metals’ businesses, plans and strategies. Forward-looking statements can generally be identified by the use of words such as, “expect”,
Slide 4: 2022 Financial and Operating Highlights
2022 Financial and Operating Highlights Solid operational performance and continued Mineral Resources growth in a challenging environment Improved safety and production $183m operating cash flow, pre- Group TRIFR improved to 9.8/mwhrs (2021: 12.0/mwhrs) Cash Flow hedges Production 73kt Cu-eq 1,
Slide 5: 2022 Metal Production and Sales Mix
2022 Metal Production and Sales Mix Improved production outcomes, copper dominant revenue mix Sales Mix (2022) 1 Copper & Zinc Production (kt) 29 30 79 47 Golden Grove Capricorn Copper Guidance Cu Zn Au Ag Copper Production 41 36 – 43 2, 3 41 5% 25 24 48% Golden 4% Grove 30% 37% 16 17 Group 11% 2021
Slide 6: 2022 Sustainability & ESG
2022 Sustainability & ESG Progressing our Sustainability & ESG priorities 2022 Milestones 29Metal’s released its first Sustainability & ESG report Launch of 29Metals’ Our Approach to Sustainability & ESG and TCFD Roadmap Progress against all 29Metals’ 2022 Sustainability ESG priorities, with a
Slide 7: Financial Results Summary
Financial Results Summary Solid production $721m Revenue 1 ― higher zinc sales and higher A$ metal prices, partly offset by lower precious metal sales ― revenue net of treatment and refining charges (‘TCRCs’), including TCs linked to the zinc price $152m EBITDA 2 ― higher Site Operating Costs 2
Slide 8: Costs
Costs Costs impacted by industry-wide challenges including absenteeism and inflation Site Operating Costs 1 14% higher than 2021 PF 2 a result of: ― increased activity and higher unit costs for processing consumables ― higher mining input costs impacting contract mining rates (particularly in the
Slide 9: Capital Expenditure
Capital Expenditure Flat capital and higher D&A on faster utilisation of TSF and accelerated D&A Capital Expenditure Pro Forma 1 D&A Bridge Flat capital spend period on period with: higher sustaining capital from incremental tailings expansion and ventilation lower capitalised development due to
Slide 10: NPAT Bridge
NPAT Bridge Activity, inflation and accounting charges key drivers of 2022 statutory loss Improved production outcomes 11 Faster utilisation of incremental expansions and Reflects tax benefit from 34 accelerated current period losses (59) depreciation – (47) Materially lower losses compared to the p
Slide 11: Cash Flow Bridge
Cash Flow Bridge Strong operating cashflow results and full leverage to copper prices Higher production and A$ metal prices, net of TCRCs (114) Leases ($32m) Interest ($14m) Other $2m $m 183 AUD depreciation Cu Hedges ($27.54m) impact on US$ PPE ($50m) (44) Au Hedges ($0.05m) denominated cash and de
Slide 12: Net Drawn Debt
Net Drawn Debt 1 Strong balance and liquidity Drawn Debt 1 decreased to $198m (2021: $201m) following principal repayments of $15m (US$12m), offset by depreciation of AUD Balance sheet strength with Net Drawn Debt 1 of $26m, including cash and cash equivalents of $172m 2 – AUD depreciation impac
Slide 13: Financial Metrics Guidance
Financial Metrics Guidance 1 UNITS 2022 2023 Guidance 1 Commentary Reflects planned capital and production metrics for 2023, and incremental capacity expansions, at both sites, prior to D&A 2 $m 189 155 – 190 transitioning to LOM facilities Mine development amortisation on a units of production
Slide 14: 2023 Priorities
2023 Priorities Key drivers underpinning 2023 performance 29Metals outlined key drivers of 2023 performance in the Dec-Qtr report. These key drivers are expected to impact production volumes and cash flows in the first half, particularly the Mar-Qtr Key Driver Management Focus Improvement in d
Slide 15: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves 1 Continued replacement and growth, building on 29Metals history of exploration success Golden Grove Ore Reserves estimates Ore Reserves (Mt) Contained Cu (kt) Contained Zn (kt) +19% +10% +14% Group Ore Reserves estimates tonnes up 23%, with increases for tonnes an
Slide 16: High Metal Grades at Operating Assets
High Metal Grades at Operating Assets High Mineral Resources and Ore Reserves (‘MR&OR’) 1 grade relative to 2022 production and declining head grades globally Declining Global Cu Head Grades 2 Capricorn Copper 2022 Cu Head Grade vs MR&OR Grade ’22 31-Dec-22 4.0% Prod. OR estimates 31-Dec-22 MR estim
Slide 17: Cervantes
Cervantes Increase in Mineral Resources estimates for Long-section View Cervantes relative to PFS 1 31-Dec-22 Mineral Resources estimates tonnes increased by 13% to 5.2Mt Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for Cervantes 2 Resources estimates for Cervantes
Slide 18: Gossan Valley
Gossan Valley Outline of 31-Dec-22 Mineral Resources estimates for Gossan Valley - Long-section View 3 Gossan Valley 31-Dec-22 Mineral Resources estimates of 6.3Mt @ 1.1% Cu, 6.1% Zn, 0.5g/t Au, 18g/t Ag Golden Grove 31-Dec-22 Ore Reserves estimates include Gossan Valley Ore Reserves; – Probable
Slide 19: Esperanza South
Esperanza South Cross-section View 31-Dec-22 Mineral Resources estimates for Esperanza South 1: Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for ESS 2 Resources estimates for ESS 2 Increase in width and higher grade at depth Increase in Mineral Resources estimate
Slide 20: Cobalt
Cobalt at CC: Cobalt 1 Evaluating cobalt opportunity Substantial cobalt estimated to be contained within our copper Mineral Resources estimates Studies are progressing to identify future opportunities to economically recover cobalt in Mineral Resources – UQ PhD study - Geometallurgical character
Slide 21: FY22 Financial Results Summary
FY22 Financial Results Summary 29 Cu Improved production Strong operating cash Retirement of copper Balance sheet strength Continued Mineral delivered increased flows despite industry hedges provides full Resources and Ore revenues wide challenges leverage to copper Reserves growth prices
Slide 22: Appendix
APPENDIX A
Slide 23: Pro Forma EBITDA Bridge
Pro Forma EBITDA Bridge 1, 2 Solid pro forma EBITDA 2 supported by increased production, offset by higher site operating costs 11 (59) Overall improvement in production outcomes net (17) of TCRCs (14) (15) Increased activity, costs to secure labour and (8) inflation $m 254 Higher shipped volumes and
Slide 24: 2023 Group Guidance
2023 Group Guidance 1 UNITS 2022A 2023 Guidance Production 2 Copper kt 41 36 – 43 Zinc kt 58 54 – 61 Gold koz 27 20 – 23 Silver koz 1,555 1,130 – 1,310 Costs 3 Mining 4 A$m 308 305 – 355 Processing A$m 135 138 – 154 G&A A$m 67 60 – 70 Concentrate transport 5 A$m 49 35 – 41 TCRC A$m 78 80 – 92 Corpor
Slide 25: Asset Guidance
Asset Guidance 1 Golden Grove Capricorn Copper Guidance UNITS 2022A 2023 Guidance Guidance UNITS 2022A 2023 Guidance Production 2 Production 2 Ore mined kt 1,522 1,450 – 1,600 Ore mined kt 1,714 1,500 – 1,800 Ore milled kt 1,547 1,450 – 1,600 Ore milled kt 1,731 1,450 – 1,650 Copper kt 17 17 – 20 Co
Slide 26: Definitions of Non-IFRS Financial Information Metrics
Definitions of Non-IFRS Financial Information Metrics METRIC DEFINITION is all-in sustaining costs, and is calculated as C1 Costs plus royalties cost, corporate costs, sustaining capital and capitalised development costs, but excludes growth capital and exploration. AISC AISC is cited per pound of p
Slide 27: Reconciliation of EBITDA to NPAT
Reconciliation of EBITDA to NPAT UNITS 2022 2021 1 VAR NPAT $’000 (47,222) 121,013 (168,235) Less: Income tax (expense)/benefit $’000 (18,594) (103,236) 84,642 Add: Net finance costs $’000 19,172 30,262 (11,090) Add: Depreciation and amortisation $’000 189,399 100,124 89,275 Add: Unrealised foreign
Slide 28: Group Mineral Resources and Ore Reserves Estimates: Mineral Resources
Group Mineral Resources and Ore Reserves Estimates 1 Mineral Resources Mineral Resources estimates at the Group level are the aggregation of Mineral Resources estimates for Golden Grove, Capricorn Copper and Redhill. Mineral Resources have been depleted for production to 31 December 2022 and are rep
Slide 29: Group Mineral Resources and Ore Reserves Estimates: Ore Reserves
Group Mineral Resources and Ore Reserves Estimates 1 Ore Reserves Ore Reserves estimates at the Group level are the aggregation of Ore Reserves estimates for Golden Grove and Capricorn Copper. Ore Reserves have been depleted for production to 31 December 2022 and are reported as at that date 2022 20
Slide 30: Unlocking value to empower the future
Unlocking value to empower the future