Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2020)
34 slides from Orion Minerals's investor presentation, Feb 3, 2020
Slide 1: 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: February 2020
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion • may include, among other things, statements regarding Orion confirms that the form and context in which the Competent Minerals Ltd and its subsidiaries (Orion or Company) and their targets, estimates and as
Slide 3: 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 2,900M Tembo Capital 24.0 Options on issue 211M Wyllie Group 5.5 Market capitalisation
Slide 4: 2020: Building on Phenomenal 2019 Success
2020: BUILDING ON PHENOMENAL 2019 SUCCESS For personal use only First global Mineral Resource for the Prieska Project exceeds 30Mt @ 1.2% Cu and 3.7% Zn Jan 2019 Ayoba Satellite VMS discovery, first new VMS discovery in the Areachap Belt in over 36 years Jan 2019 Compelling extensional potential fro
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 • Established mining region, yet least populo
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: Energy Efficient
ENERGY EFFICIENT For personal use only • Mine nested in established renewable energy hub • Majority of mine to be powered by renewable energy • Collaboration agreement with juwi Renewable Energies to investigate renewable energy generation for the Prieska Solar energy projects and wind farms in the
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 accuracy (15%) scheduled for completion Q2 2020 • Metallurgical plant design o Include SAG milling o Removes secondary crushing, screening, & rock conveyors. o Capital (A$16m) & Opex savings
Slide 11: Optimised Surface Layout Completed
OPTIMISED SURFACE LAYOUT COMPLETED For personal use only June 2019 BFS surface layout January 2020 optimised surface layout PAGE 11
Slide 12: 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 13: 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 13
Slide 14: Boosting the Regional Economy
BOOSTING THE REGIONAL ECONOMY For personal use only EMPLOYMENT CREATION • Estimated that 846 people (operational Phase) will be employed • Empirical multiplier effect potentially creates 2,500 associated jobs CONTIBUTIONS TO LOCAL INFRSTRUTURAL DEVELOPMENT • Improved water supply – 20ML a day Water
Slide 15: BEE: Pivotal Transaction Completed
BEE: PIVOTAL TRANSACTION COMPLETED For personal use only BEE New BEE Entrepreneurs Orion Entrepreneurs 7.9% 1.7% 100% Safika Black Star Kolobe Nala Resources Minerals Investment Prieska Prieska Northern projects Community Prieska Employees Trust Resources Orion Exploration 1 (PR application pending)
Slide 16: 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 identified VMS Cu-Zn occurre
Slide 17: 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 Pet
Slide 18: Appendices
For personal use only APPENDICES PAGE 18
Slide 19: 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 20: 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 21: 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 22: 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 23: Mineral Resource
MINERAL RESOURCE For personal use only The Mineral Resources are inclusive of the Mineral Reserves Refer ASX release 26 June 2019 PAGE 23
Slide 24: Mineral Reserve
MINERAL RESERVE For personal use only Refer ASX release 26 June 2019 PAGE 24
Slide 25: Mine Face to Market
MINE FACE TO MARKET For personal use only PAGE 25 Refer ASX release 26 June 2019
Slide 26: Problem Looming: Copper Supply Chain
PROBLEM LOOMING: COPPER SUPPLY CHAIN For personal use only Cecilia Jamasmie: Mining (Dot) Com 10 April 2018 PAGE 26
Slide 27: 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 27
Slide 28: Add a Major New Copper Demand Driver
ADD A MAJOR NEW COPPER DEMAND DRIVER For personal use only Visual Capitalist: 28 May 2019 PAGE 28
Slide 29: And Copper Hungry Renewable Energy
AND COPPER HUNGRY RENEWABLE ENERGY For personal use only Copper in Wind A three-megawatt wind turbine can contain up to 4.7 tons of copper with 53% of that demand coming from the cable and wiring, 24% from the turbine/power generation components, 4% from transformers, and 19% from turbine transforme
Slide 30: Zinc Demand – Consistent Consumption Growth
ZINC DEMAND – CONSISTENT CONSUMPTION GROWTH For personal use only 10 Year Zinc Outlook • ~14 000 000t of zinc metal consumed in 2019 • ~50% of both metal production & consumption occurs in China • Consumption dominated by Chinese living standard growth • Global demand forecast to grow by 1.5% annual
Slide 31: Zinc Concentrate Supply – New Mines Take Time
ZINC CONCENTRATE SUPPLY – NEW MINES TAKE TIME For personal use only • Global, zinc permitting, financing & development timelines are increasing • Delays in new mine production continue: - Gamsburg (20-year development) - Dugald River (18-year development) • Current development projects dominated by
Slide 32: 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 • Strong zinc metal fundamentals - Persistent annual mental deficits have driven metal stock to record lows - LME refined metal stocks at just 7
Slide 33: Finding, Planning and Building the Mines of the Future
For personal use only FINDING, PLANNING AND BUILDING THE MINES OF THE FUTURE Starting with a ‘clean sheet’, Orion is seizing the moment with un-paralleled opportunity to break from legacy to build modern mines PAGE 33
Slide 34: 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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