Metals Exploration Plc · LSE:MTL
Metals Exploration — Corporate Update (January 2019)
31 slides from Metals Exploration's corporate update, Jan 16, 2019
Slide 1: Metals Exploration
Metals Exploration Building an independent APAC focussed gold producer January 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Metals Exploration Plc for the benefit of the investing community including, brokers, fund managers, investors and analysts and not for the benefit of any particular person. It should be read in conjunction with information provid
Slide 3: Executive Summary
Executive Summary Metals Exploration (AIM:MTL) is a natural resources exploration and development company focussed on becoming an independent gold producer in the Asia Pacific region The company wholly owns and operates the low cost Runruno Gold Mine located in the mineral rich province of Nueva
Slide 4: Metals Exploration's value creation strategy & turnaround
Metals Exploration’s value creation strategy & turnaround 1 Large defined Reserves and 8 Resources 2 8+ years life of mine remaining Operating mine with a long run with significant identified stable production resource / exploration upside potential 7 3 World class environmental, social $270m capex
Slide 5: Corporate Snapshot
Corporate Snapshot metals®.. exploration
Slide 6: Company overview
Company overview Company overview Asset location Metals Exploration (AIM: MTL) is a natural Philippines resources exploration and development company focussed on becoming an Runruno independent gold producer in the Asia Pacific region The company listed on AIM in 2004 and currently has a market
Slide 7: Experienced board of directors & management
Experienced board of directors & management Board of Directors & Management overview Darren Bowden – Chief Executive Officer (Appointed January 2019) Mining Executive with 25 years’ experience building and developing mining projects across Australia, North and South America.Darren has worked acros
Slide 8: Runruno timeline – operational since July 2017
Runruno timeline – operational since July 2017 Env. Compliance Certificate issued Jul ‘12: Pre-commitment site Jul ‘17: Commercial works commenced production Positive Concept Study identifies commercial FTAA May ‘14: US$83m debt viability issued facility secured Project acquired 2004 2008 2009-2011
Slide 9: Runruno Gold Mining Operations
Runruno Gold Mining Operations 9
Slide 10: Runruno gold mine
Runruno gold mine Overview Unique surface cut and fill mining operation Delivers ore at an average rate of 165-175kt per month Operations are 24 hours, 365 days a year Scheduled mine life is estimated at 8+ years Environmental Compliance Certificate allows for maximum production of ore of
Slide 11: Mining operations
Mining operations Surface cut and fill ― Initial pit is created which is then back filled as mining progresses ― Continuous rehabilitation integrated Traditional excavator and truck approach, with drill and blast Ore mined at 2.1Mtpa to 1.6Mtpa over remaining LOM Total mine movement of 11.3M
Slide 12: Exploration upside
Exploration upside Significant known exploration upside Exploration targets and geology map Step-out broad based exploration conducted throughout 2011/12 which supported the Malilibeg South resource estimate Identification of Runruno style mineralisation south of the pit & potential extension no
Slide 13: Processing
Processing BIOX – Generation III The Runruno BIOX® circuit is designed with upside capacity The target sulphide sulphur grade is 17% S2- Conventional comminution, gravity and flotation circuits used to produce a gold bearing sulphide concentrate Refractory ore processed by a Generation III B
Slide 14: Infrastructure
Infrastructure Power Grid power from Bayambong (national grid switch yard) c. 36km by transmission line to Runruno (69Kv) Road Runruno is serviced via a national secondary road and is 26 km from the regional town of Solano Solano serviced by sealed and concrete surfaced national roads with acc
Slide 15: Mine site layout & sequencing
Mine site layout & sequencing Overview Mine site layout LOM strategy is to mine 2 stages contiguously 2019 will focus on mining Stage 1 and Stage 2 – Stage 3 preparation on an opportune basis 2019 waste dumping will be external – some minor backfilling of Stage 1 commenced in late 2018 as a de
Slide 16: Pit design & geology
Pit design & geology Pit design Open pit area – 600m x 1,500m Staged pit which mines longitudinally along the ore body to provide smooth the strip ratio and ore delivery to the plant Rate of vertical versus horizontal advance is the key criteria in developing the schedule and pit design Prog
Slide 17: World class environmental standards
World class environmental standards Production Operations Environmental Controls ROM SIZING WATER MINE DEWATERING MALILIBEG CATCHMENT Feed Material Primary Size Reduction returned from RSI 4 RESIDUE STORAGE GRAVITY GRINDING IMPOUNDMENT Recovery of Liberated Secondary Size DUST CONTROL Gold Reduction
Slide 18: World class environmental standards (cont'd.)
World class environmental standards (cont’d.) Production Operations Environmental Controls ROM SIZING WATER MINE DEWATERING MALILIBEG CATCHMENT Feed Material Primary Size Reduction returned from RSI 4 RESIDUE STORAGE GRAVITY GRINDING IMPOUNDMENT Recovery of Liberated Secondary Size DUST CONTROL Gold
Slide 19: Residual storage impoundment
Residual storage impoundment Overview Safety & environment Waste which has been extracted from the Stage 1 of the Is designed and constructed to ANCOLD international mine has been and continues to be used to construct the standards for the safe and environmentally acceptable Residual Storage Imp
Slide 20: Recent challenges and solutions
Recent challenges and solutions Issues Actions and solutions Timing Dilution rates will be offset by targeting incremental ore Mine dilution rates higher than in Feasibility Study Ongoing tonnes and increasing milling and flotation throughput Historical flotation test work of master composites
Slide 21: Tackling the operational challenges
Tackling the operational challenges To ensure we can tackle the challenges ahead we have commenced the restructure of the Process Plant Management Team, targeting world class area specialist under a new Plant Manager Overall Plant Manager By incorporating world class Accountability technical speci
Slide 22: Community relations – local impact has been significant
Community relations – local impact has been significant Multi awarded nationally and internationally Employment – 99% Filipinos Health & Education Implemented Community Relations Office exceeding Equator Improved health outcomes based on provision of Principles and World Bank guidelines professi
Slide 23: Environment, health & safety
Environment, health & safety Environment Progressive mine rehabilitation – leave the area in better condition, mitigate impact and stabilise the environment ― Sulong River cleaner than prior to the project ― Forests re-established with approx. 2m trees planted to date (LOM c. 5m) ― Soil erosion co
Slide 24: Capital Structure Overview
Capital Structure Overview 24
Slide 25: Capital structure
Capital structure Overview 160 Capital structure1 Shares on Issue (m) 2,071 Share price (GBp) 0.8 21.3 Mkt. Cap. (US$m) 21.3 120 Cash in Bank (US$m)1 2.5 8.5 2.5 21.0 Total Debt incl. capitalisation (US$m) 110.9 (US$m) Enterprise Value (US$m) 130.9 28.2 80 108.4 129.7 35.6 110.9 40 5.0 4.0 8.6 - Sta
Slide 26: Debt overview
Debt overview Debt overview Metals Exploration is currently in negotiations with its lenders for waivers to its current covenants and repayment schedule Target are revised agreements with lenders (primarily HSBC and BNP Paribas) ― Metals Exploration is also exploring debt restructuring with new
Slide 27: Conclusion
Conclusion The Runruno Gold Project is a large scale fully constructed and permitted, 8+ year estimated LOM project with significant upside exploration potential Low cost operation with strong upside Issues in the process of being resolved and set to perform Designed and constructed to inter
Slide 28: Appendix
Appendix
Slide 29: Processing
Processing How the process works 29
Slide 30: Resources & Reserves March 2011 & April 2013
Resources & Reserves March 2011 & April 2013 Gold Molybdenum Ore (Mt) g/t Moz Au ppm Mlb Reserves Proven 10.2 1.90 0.62 616 13.9 Probable 4.8 1.77 0.27 414 4.4 Total 2P Reserves 15.0 1.85 0.90 603 18.3 Additional Inferred Resource in-pit 2.9 1.73 0.16 258 1.7 Resources Measured 11.2 1.88 0.68 604 14
Slide 31: Liam Ruddy, Company Secretary
Liam Ruddy Metals Exploration plc Company Secretary 200 Strand, WC2R 1DJ London, UK Tel: +44 (0) 208 133 3433 Tel: +44 (0) 207 539 7272 liam.ruddy@metalsexploration.com