Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Shareholder Meeting (November 2016)
25 slides from Aurelia Metals's shareholder meeting presentation, Nov 28, 2016
Slide 1: Annual General Meeting 28 November 2016
For personal use only ANNUAL GENERAL MEETING 28 NOVEMBER 2016
Slide 2: Corporate Information
Corporate Information • ASX listed (AMI) For personal use only • Market Cap. $50.4M (at 13c/share) • 388M Shares • 50M options at 1.25c • 108M options at 4c (only exercisable if AMI converts any of Facility A) • 4.8M perf rights (with 4.5M subject to approval at today’s AGM) • Net debt $97M (18 Nov
Slide 3: Key Assets – exposure to gold, lead, zinc & copper
Key Assets – exposure to gold, lead, zinc & copper For personal use only • 100% High grade Hera gold lead zinc mine (100km SE Cobar NSW) • 47,000 oz of gold production in FY16 • 7,600 t of contained lead production in FY16 • 7,200 t of contained zinc production in FY16 • 95% of Nymagee Copper Projec
Slide 4: Agenda
Agenda For personal use only • Commodity Price Environment • 2016 - a year of turnaround • Looking to the future 4
Slide 5: Commodity Price Trends
Commodity Price Trends For personal use only Gold Price A$/oz Aurelia Metals Limited Base Metal Price US$/t Commodity Price Trends 1,800 2,400 Gold Price A$/oz 2,300 1,750 Zinc price US$/t 2,200 1,700 Lead price US$/t 2,100 1,650 2,000 1,600 1,900 1,800 1,550 1,700 1,500 1,600 1,450 1,500 1,400 1,40
Slide 6: The Turnaround Year
2016 - The Turnaround Year OPERATIONAL IMPROVEMENTS LEADING TO IMPROVED PERFORMANCE OF THE HERA PROJECT For personal use only • Improved geological understanding of the Hera orebodies • Hera Resource revision with improved metal grades and improved reconciliation results. • Throughput exceeding 370k
Slide 7: Processing throughput
2016 - Processing throughput For personal use only Quarterly Processing Throughput tonnes 110,000 October month converted to quartlerly 100,000 90,000 80,000 70,000 60,000 50,000 Jun 15 Qtr Sep 15 Qtr Dec 15 Qtr Mar 16 Qtr Jun 16 Qtr Sep 16 Qtr October 7
Slide 8: Gold Recovery
2016 – Gold Recovery For personal use only Quarterly Gold recovery 90% 87.00% 83.9% 84.3% 85% 81.2% 80% October month 74.6% 75% 72.7% only 70% 65% 62.1% 60% 55% Jun 15 Qtr Sep 15 Qtr Dec 15 Qtr Mar 16 Qtr Jun 16 Qtr Sep 16 Qtr October 8
Slide 9: Gold Production
2016 – Gold Production For personal use only Quarterly Gold Production & Grade oz g/t Au production (oz) Gold grade (g/t) 16,000 October month 8.0 converted to quartlerly 14,000 7.0 12,000 6.0 10,000 5.0 8,000 4.0 6,000 3.0 4,000 2.0 2,000 1.0 0 0.0 Jun 15 Qtr Sep 15 Qtr Dec 15 Qtr Mar 16 Qtr Jun 16
Slide 10: Unit Costs
2016 – Unit Costs For personal use only Quarterly Unit Operating Costs $/t processed Processing Unit Costs Mining Unit Costs 85 80 75 October month only 70 65 No mine development or grade control drilling 60 55 Jun 15 Qtr Sep 15 Qtr Dec 15 Qtr Mar 16 Qtr Jun 16 Qtr Sep 16 Qtr October 10
Slide 11: Corporate
2016 - Corporate For personal use only • Maiden profit in FY16 of $10.9M • Sales revenue of $91.9M • Net increase in cash $16.7M • Improvement in share price to 13c • Strong cash accumulation to $28M at 18 Nov 16 • New management team • Interest free holiday on debt until March 2018 11
Slide 12: Improving cash balance
2016 – Improving cash balance For personal use only Aurelia Metals Limited $M Available Cash 25.0 20.0 15.0 10.0 5.0 0.0 12
Slide 13: Share Price Trend
2016 - Share Price Trend For personal use only Aurelia Metals Limited ASX All Ords $/share Gold Index Share Price Trends 0.20 7,000 0.18 AMI Share Price 6,000 0.16 All Ord Gold 0.14 5,000 0.12 0.10 4,000 0.08 3,000 0.06 0.04 2,000 0.02 0.00 1,000 13
Slide 14: Looking ahead – Strategy for 2017
2016 – Looking ahead For personal use only STRATEGY FOR 2017 • Focus on cash generation and reducing net debt • Debottlenecking and further improvements in the mill • Expansion Study of the base metals capacity of the mill • Increased mine life with exploration at North Pod and Beyond • Repayment of
Slide 15: Looking ahead – Opportunities
2016 – Looking ahead OPPORTUNITIES For personal use only • Operational • Increasing gold recovery- reaching 87% in October vs 94% design • Gravity gold recovery – reaching 57% in October vs 60% design • Reducing processing costs • Corporate, Discovery & Development • Delivering on exploration potent
Slide 16: Hera Project – Exploration opportunity
HERA PROJECT – Exploration opportunity For personal use only S Surface N ML1686<< >>EL6162 North Pod 485m Target Below Surface Hera Mine Underground Workings Beyond Target
Slide 17: Hera Project – Exploration opportunity
HERA PROJECT – Exploration opportunity “Beyond” Target? For personal use only N North Pod 200m Far West Hays North Main North Hera Mine Drilling Showing Total Sulphide Volume (SV) Main South SV (%) = 100*(∑Volsulph/(∑Volsulph+VolHays South gangue)) 1530 17
Slide 18: Hera Project – Exploration opportunity
HERA PROJECT – Exploration opportunity PEAK GOLD MINES COBAR HERA DEPOSIT For personal use only SCHEMATIC LONG SECTION SCHEMATIC LONG SECTION Hera: 2.44Mt @ 4.1g/t Au, 6.6% Pb+Zn Western Lead Zinc 0.9Mt @ 6.8g/t Au, 2% Pb+Zn 500m Peak (pre-mining) 5.2Mt @ 9.1g/t Au, 0.8% Cu 1000m POTENTIAL? 1500m Pe
Slide 19: Nymagee Copper Deposit
NYMAGEE COPPER DEPOSIT OPEN TO NORTH AND AT DEPTH – NYMAGEE LONG SECTION • Deep drilling at For personal use only Nymagee confirms continuity of copper mineralisation >700m • Nymagee North mineralisation increasing intensity with depth • Multiple untested DHEM conductor 2 targets at depth 1 3 19
Slide 20: Conclusion
Conclusion For personal use only • Exposure to strong gold prices and rising base metal prices • Lead and zinc approximately 30% of revenue and rising • Nymagee copper potential • Significant turnaround delivered in 2016 • Increased production and cash flow • Opportunities to improve • Reduction in
Slide 21: Appendix 1: Resources and Reserves
APPENDIX 1: RESOURCES AND RESERVES Hera Mineral Resource Estimate – June 2016: For personal use only Category Tonnes NSR ($/t) Au (g/t) Pb (%) Zn (%) Ag (g/t) Measured 821,000 377 5.65 2.73 3.19 14.7 Indicated 764,000 322 3.94 3.06 5.12 19.6 Inferred 1,113,000 334 3.10 4.77 5.91 58.2 Total 2,698,000
Slide 22: Appendix 1: Resources and Reserves
APPENDIX 1: RESOURCES AND RESERVES For personal use only Nymagee Deposit Mineral Resource Estimate (AMI– 95%) – December 2011 Description Cut Off Tonnes Pb % Zn % Ag g/t Cu % INDICATED Shallow Cu Resource (above 0.3% Cu 5,147,000 0.10 0.20 5 1.00 90mRL) Deeper Cu Resource (below 0.75% 1,984,000 0.30
Slide 23: Appendix 2: Board of Directors
APPENDIX 2: BOARD OF DIRECTORS For personal use only Partner of PricewaterhouseCoopers Australia (Coopers & Lybrand) for 19 years specialising in the provision of Anthony Wehby corporate finance advice. Anthony is based in Sydney and maintains a consulting practice providing advice on mergers Non-Ex
Slide 24: Appendix 3: Competent Persons Statements
APPENDIX 3: COMPETENT PERSONS STATEMENTS Competent Persons Statement – Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Rimas Kairaitis, who is a Member of the Australasian Institute of Mining and Metallurgy. Rimas Kairaitis i
Slide 25: Appendix 4: Competent Persons Statements
APPENDIX 4: COMPETENT PERSONS STATEMENTS For personal use only Cautionary Statement – Scoping Study and production targets The scoping study (Hera Expansion Study) referred to in this presentation is based on low level technical and economic assessments, and is insufficient to support an estimation