Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (August 2017)
24 slides from Aurelia Metals's investor presentation, Jul 31, 2017
Slide 1: Corporate Presentation August 2017
For personal use only CORPORATE PRESENTATION August 2017
Slide 2: Forward Looking Statement
Forward Looking Statement For personal use only This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation
Slide 3: Company Overview
Company Overview • Aurelia Metals Limited (AMI.ASX) is a junior mining For personal use only $/share Aurelia Metals Limited Cash $M Share Price Trend v Cash in Bank company based in Orange NSW 0.30 40 • The Company’s flagship asset is the high-grade Hera- 0.25 AMI Share Price (LHS) 35 Nymagee gold-l
Slide 4: Value Proposition
Value Proposition For personal use only Low cost producer–AISC Expanding mine life Scalable production opportunities Attractive exploration ground Very low PE Ratio 4
Slide 5: Value Proposition
Value Proposition • Extremely low cost high margin gold producer For personal use only – FY17 C1 of A$634/oz and AISC of A$968/oz – Ongoing recovery improvements and reduced operating costs – Increasing base metal by-product credits • Expanding mine life – Mine Inventory increased to 9 years includi
Slide 6: Ore reserves provide a year mine life at Hera
Ore reserves provide a 4 year mine life at Hera Hera Mine (100%) Gold, lead, zinc, silver production For personal use only Central NSW Resources (1) 2.9 Mt at 2.8 g/t Au, 2.6% Pb, 3.8%Zn (NSR A$244/t) Reserves (1) 1.4 Mt at 3.5 g/t Au, 2.7% Pb, 4.1% Zn (NSR $269/t) Inventory (1) 1.9 Mt at 3.2 g/t Au
Slide 7: Strong operating performance
Key Focus – Deliver strong operating performance For personal use only Annualised throughput (t) Hera Mine - Qtly Process Throughput 410,000 Gold Recovery Hera Mine - Qtly Gold Recovery Gold recovery Gravity Gold Recovery 100% 390,000 90% 92.0% 88.6% 87.7% 370,000 83.9% 84.3% 80% 81.2% 350,000 DFS R
Slide 8: Lower total cost
Key Focus – Deliver lower total cost For personal use only A$/t processed Hera Mine - On-Site Unit Costs ($/t processed) Site Operating Cost (mine+proc+admin) Sustaining Capital 250 250 232 200 188 191 190 200 177 182 166 164 164 150 150 100 100 173 175 161 171 158 154 138 134 141 50 50 0 0 Jun-15 S
Slide 9: Deliver stronger processing performance
Key Focus - Deliver stronger processing performance For personal use only Annualised throughput (t) Hera Mine - Qtly Process Throughput • Throughput exceeding 430,000 Filtration capacity, nameplate by 15% 410,000 420,000 • New screen ordered and to Comminution 390,000 capacity, be installed by Nov w
Slide 10: Base Metal Concentrate Production
Base Metal Concentrate Production For personal use only dmt Aurelia Metals Limited Hera Qtly Concentrate Production 14,000 • Combined Pb/Zn 12,000 Current capacity grade improved by 35% with 10,000 9367 increasing base 8081 8018 8,000 7171 7746 metal grades 6,000 5874 • Should average 2 shipments/qt
Slide 11: Strong cash margin
Key Focus – Deliver strong cash margin For personal use only A$/oz Aurelia Metals Limited AISC (All in Sustaining Cost) v Achieved Gold Price 2,000 2018 FY 1,900 1757 • Higher throughput 1,800 1,700 1687 1671 • Improved Au 1635 1631 1613 1,600 1577 1558 1538 recoveries 1,500 • Lower unit costs 1,400
Slide 12: Reduced net debt
Key Focus – Deliver reduced net debt Agreement reached with Glencore to make early repayments (debt For personal use only repayments discounted to compensate for loss of interest earned) • Current debt interest free period to 31 March 18 • Option to convert up to $72M of $110M debt just prior to 31
Slide 13: Key Assets – Located in the productive Cobar Region
Key Assets – Located in the productive Cobar Region For personal use only Bourke Endeavour Zn/Pb/Ag (Toho) Australia CSA Cu (Glencore) NSW Cobar Nyngan Peak Au/Cu (New Gold) Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Mallee bull Cu/Pb/Zn project (Peel/CBH) Newcastle ORANGE Parkes Wonawinta Ag
Slide 14: Key Assets – Cobar Region long section
Key Assets – Cobar Region long section For personal use only Australia NSW 14
Slide 15: Growth in mine life
Key Focus – Deliver growth in mine life N For personal use only S N As built mine development North Pod Stoped areas (purple) Exploration drive Planned Stopes 500 m below surface Planned mine development Priority Targets 15
Slide 16: Deliver growth in mine life
Deliver growth in mine life For personal use only Structural Repetition Target Zone • Potential for northern extensions of Hera lode system N 200m North Pod • Utilise downhole geochem and geophysics as tools to Far West Hays North vector to mineralisation Main North Hera Mine Plan Showing Drill Trac
Slide 17: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) For personal use only Nymagee Nymagee Cu/Pb/Zn Copper Project • Historic mine and current resource, located 5km north of Hera Mine • Ability to leverage from N Hera mine infrastructure 5 km Hera Mine Lease boundary 17
Slide 18: Nymagee Scoping Study adds a further years mine life
Nymagee Scoping Study adds a further 4 years mine life For personal use only Nymagee Project (95%) Copper lead zinc opportunity Central NSW – 5 km north of Hera Inferred & Indicated Large and low grade Resource (as disclosed in 8.1Mt at 1.2% Cu,1% Pb+Zn, 9 g/t Ag 2016 Annual Report) Production Targe
Slide 19: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) Nymagee Long Section For personal use only Nymagee Cu/Pb/Zn • Pre-Feasibility work underway with Current Resource Shell environmental and metallurgical studies. 300 m below surface • Exploration potential at depth 500 m below surface Detail on the Ny
Slide 20: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) Nymagee X-Section For personal use only Nymagee Cu/Pb/Zn • Multiple exploration targets exist 20
Slide 21: Scoping Study Key Findings
Key Focus – Deliver growth in mine life (Nymagee) Scoping Study Key Findings For personal use only Mine Life 3.5 to 4 Years This provides a total project life of 8-9 years including Hera Production Target 1.38 Mt at 2.2% Cu, 1.6% Pb, 3.2% Zn NSR Value (NSR A$190/t-US$210/t) Scoping Study metal price
Slide 22: Growth in mine life (Mine Trend)
Key Focus – Deliver growth in mine life (Mine Trend) For personal use only Mine Corridor • Hera-Nymagee corridor remains highly prospective • The Hera & Nymagee deposits are both marked by prominent gravity highs • Several gravity targets have been defined along 20km of strike • Potential for Hera-N
Slide 23: Conclusion
Conclusion Strategy to Deliver For personal use only Generate cash Continuously improve operational performance - Continuous improvement in recovery and throughput - Minimise unit costs - Fast track mine plan to access North Pod high grade Reduce net debt Reduce gearing, reduce financial risk - buil
Slide 24: Competent Persons Statement
Competent Persons Statement Competent Persons Statement – Exploration Results Competent Persons Statement – Nymagee Resource Estimate For personal use only The Resource Estimation for Nymagee was completed in 2011 by Mr Dean Fredericksen, then the Chief Operating Officer of Aurelia Metals Ltd who wa