Firefinch — Diggers and Dealers 2021
41 slides from Firefinch's conference presentation, August 2021
Slide 1: Investor Presentation
Investor Presentation ASX: FFX Diggers and Dealers August 2021
Slide 2: Disclaimer
DISCLAIMER IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Firefinch Limited (ASX:FFX) (“Firefinch” or “Company”). For the purposes of ASX Listing Rule 15.5, Firefinch confirms that this presentation has been authorised for release to the ASX by the board of directors of Firef
Slide 3: Contents
CONTENTS 1 Introduction 3 2 Morila Overview 9 3 Goulamina Overview 18 4 Financing Strategy 23 5 Firefinch’s Social License to Operate 26 A Leadership Team 30 Reserves & Resources and Project B 33 Metrics C New Institutional Investors 40
Slide 4: Snapshot of Firefinch
Snapshot of Firefinch Shares on Issue1 Mineral Resource2 910.19m 2.43Moz Au 1.57Mt Li2O Share Price1 Market Cap1 A$0.395 A$365.7m Top 20 Shareholders Board Ownership 40% 2.5% Net Cash and Bullion3 Debt4 Top 10 Investors6 A$61.8m No Debt 1 Kinetic Investment Partners Limited 3.8% 34.5M Research Cover
Slide 5: Unique Investment Offering
Unique Investment Offering Two high quality assets and two transformational M&A transactions within the last year 79 Au Morila Gold Mine • World-class ex-AngloGold/Barrick Gold Mine with a 20 year / 7.5Moz operating history • Transitioning from a 40koz pa tailings retreatment operation to 150 – 200k
Slide 6: Strategic Vision
Strategic Vision 79 3 Au Gold Business Li Lithium Business The revival of one of West Africa’s great Goulamina expected to be one of the next gold mines, Morila spodumene projects to enter production Achieve targeted gold production increases at Morila Goulamina to be demerged from Firefinch ● Mine
Slide 7: Morila Overview
FIREFINCH Morila Overview
Slide 8: Morila has been a successful, transformational transaction
Morila has been a successful, transformational transaction • Morila Gold Mine bought for just US$29.7m in November 2020 from AngloGold/Barrick1 • Acquisition cost per Resource ounce of less than US$15 • Plant operating >4.0Mtpa • 685km2 of highly prospective tenure • Inherited a capable and experien
Slide 9: Morila Overview
Morila Overview Rapidly growing production to 150k - 200koz pa1 Will place Morila as a top 20 ASX gold project Key Life of Mine Plan Metrics: LoM Production 1.45Moz @ 1.5g/t 10 Years2 1 July 2021 – 31 December 2030 Average Production 160koz/yr AISC US$1,124/oz Global Mineral Resources1 2.43Moz Globa
Slide 10: Rapid Production Ramp Up and Blue Sky
Rapid Production Ramp Up and Blue Sky Firefinch’s three-stage plan for Morila to deliver a 150 – 200koz pa gold operation Completed: Stage 1 • Tailings re–treatment only Now: Stage 2 • Production from multiple satellite ore sources • Crushing and milling has restarted • Dewatering and pre–strip of M
Slide 11: Stage 2: Mining Satellite Deposits
Stage 2: Mining Satellite Deposits • Current satellite Resources of 218,000oz gold1 • Pits are up to 25 km from plant along haul road • Open pit mining began at Morila Pit 5 in early May • Processing commenced mid-May following successful refurbishment of comminution circuit. • Pre-mining activities
Slide 12: Stage 3: Mine the Morila Superpit
Stage 3: Mine the Morila Superpit Untested potential beneath historical pit • Numerous high-grade intersections in drilling outside the pit design • Drilling commenced June 2021 12
Slide 13: Looking for Repeats of Ultra High Grades
Looking for Repeats of Ultra High Grades • Morila pit was ultra high grade when in production • Massive system over 1.6km across and open - limits to mineralisation not defined 13 13
Slide 14: Regional Exploration Upside
Regional Exploration Upside 685km2 of tenure with obvious high-grade targets • Tenure overlies favourable Birimian lithologies in a highly prospective shear zone setting • No exploration has occurred since 2009 when the geological team moved offsite • Obvious high-grade targets • Modern exploration
Slide 15: Recent News Flow
Recent News Flow ● New Mining contractor appointed – refer to ASX release of 15 June 2021 ● Open pit mining commenced with commissioning of the comminution circuit with Pit 5 Ore in late May 2021 ● June quarter gold production of 12,555 ounces at upper end of guidance ● First blast at Morila (since
Slide 16: Goulamina Overview
FIREFINCH Goulamina Overview
Slide 17: Goulamina JV Transaction Highlights
Goulamina JV Transaction Highlights Firefinch and Ganfeng to jointly develop the Goulamina Lithium Project with Ganfeng to provide up to US$194m of funding1 Joint venture with a world-leading Transaction expected to substantially lithium producer, Ganfeng, who has a fund Goulamina into production vi
Slide 18: Goulamina JV Transaction Overview
Goulamina JV Transaction Overview Ganfeng to become a 50% JV partner and receive life of mine offtake in exchange for a funding commitment of up to US$194m (outlined below) which will be used for funding Goulamina’s development Transaction Overview ● Ganfeng to invest US$130m in Mali Lithium BV (MLB
Slide 19: Quality partner to underpin project development
Quality partner to underpin project development Ganfeng’s global lithium operations About Ganfeng Non-SOE Chinese cathode producer with a market capitalisation of ~US$26bn World number one lithium producer by production capacity Supplier to major lithium battery producers and OEMs, including BMW, LG
Slide 20: Goulamina Highlights
Goulamina Highlights World-class, high grade, development-ready hard rock lithium deposit with significant upside Tier 1 World-class, high grade hard rock lithium deposit with a Mineral Resource of 109Mt at 1.45% Li2O orebody (3.9Mt LCE) and Ore Reserve of 52Mt at 1.51% Li2O (1.9Mt LCE) which underp
Slide 21: Tier 1 asset globally across key metrics
Manono 401 Greenbushes 1.93% Pilgangoora 268 Manono 1.65% Wodgina 259 Mt Holland 1.50% Greenbushes 197 Goulamina 1.45% Mt Holland 189 Whabouchi 1.45% Kathleen Valley 156 James Bay 1.40% Goulamina 109 Mt Marion 1.37% Resource Grade (%) Arcadia 73 Kathleen Valley 1.35% Mt Marion 71 Finniss 1.32% Whabo
Slide 22: Transaction paves the way for the proposed demerger
Transaction paves the way for the proposed demerger Demerger Overview ● Ganfeng joint venture at Goulamina provides Logical separation of Board and management of substantial funding and technical support for gold and lithium each entity to focus on Goulamina’s development1 businesses, allowing disti
Slide 23: Financing Strategy
“riReFINcH Financing Strategy
Slide 24: Recent equity raise continues momentum
Recent equity raise continues momentum Proceeds from the recently completed placement (late June 2021) will be primarily used to fund Morila capital expenditure alongside general working capital requirements across both the gold and lithium businesses Sources and Uses of Funds Funds will be used for
Slide 25: Debt Funding Plan
Debt Funding Plan Debt funding process well advanced targeting a ~US$50m facility. Aiming to agree binding terms with preferred financier in the coming months. Funding will be primarily used to accelerate the development of Morila. Debt Funding Process Use of Debt Proceeds ● Firefinch launched a com
Slide 26: Firefinch's Social License to Operate
5 Firefinch’s Social License to Operate
Slide 27: Social Licence to Operate
Social Licence to Operate Firefinch has strong social intellectual property in Mali, having been in the country for 9 years and currently operating a 1,100+ strong workforce at its Morila Gold Mine Firefinch Social License & Operating in Mali Investment Attractiveness Score1 Operating experience in
Slide 28: We are Responsible Miners
We are Responsible Miners Significant expected contribution in taxes, royalties, wages and local procurement over next 10 years at Morila The fish farm produces over 60,000 tilapia fry each quarter Morila’s agribusiness project includes five operations: poultry, fish, fruit, beekeeping and Strong st
Slide 29: Key Takeaways
Key Takeaways Firefinch is underpinned by two high quality assets, with a team that has delivered two transformational M&A transactions within a 12-month period World-class ex-AngloGold/Barrick Gold Mine with a 20 year / 7.5Moz operating history MORILA Transitioning from a 40koz pa tailings retreatm
Slide 30: Appendix A: Leadership Team
A APPENDIX Leadership Team
Slide 31: Leadership Team
Leadership Team Board of Directors Alistair Cowden Chairman Brett Fraser Non-Executive Director Experienced mining company founder and 30+ years experience in corporate finance and builder with 41 years as a mining executive and executive roles with ASX-listed resource geologist in the gold, nickel
Slide 32: Leadership Team: Management
Leadership Team Management Drissa Arama GM Morila Mine Eric Hughes CFO & Company Secretary 30+ years experience metallurgy in the mining 20+ years experience in senior finance executive industry roles with ASX listed resource companies Andrew Taplin Chief Operating Officer Bill Oliver GM Geology and
Slide 33: Appendix B: Resources & Reserves and Project Metrics
B APPENDIX Resources & Reserves and Project Metrics
Slide 34: Mineral Resources at Morila
Mineral Resources at Morila Deposit Measured & Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (m) (g/t) (‘000) (m) (g/t) (‘000) (m) (g/t) (‘000) Morila Pit1 21.2 1.60 1,090 17.5 1.37 770 38.6 1.50 1,860 Morila NE2 0.21 3.07 21 0.21 3.07 21 Samacline2 3.74 2.56 3
Slide 35: Probable Ore Reserves at Morila
Probable Ore Reserves at Morila Deposit Total Tonnes Grade Ounces (m) (g/t) (‘000) Morila Pit1 19.8 1.47 932 N’Tiola1 2.13 1.08 74 Viper1 1.30 1.46 43 Koting1 0.63 0.98 20 Total2 23.8 1.40 1,070 Drilling at Pit 5 35 1. Details contained in the ASX Announcement on 5 May 2021; 2. Numbers in the above
Slide 36: Morila LOMP Key Project Metrics
Morila LOMP Key Project Metrics 80% Firefinch, Ownership 20% Government of Mali Type Open-pit Resources 50.5Mt at 1.50g/t for 2.43Moz Reserves 23.8Mt at 1.4g/t for 1.07Moz Current LoM Plan 10 years LoM Strip Ratio 6.2 Processing Conventional CIL + gravity Recovery LoM 91% Plant Commissioned October
Slide 37: Goulamina Resource and Reserve
Goulamina Resource and Reserve Goulamina Mineral Resource Estimate - June 2020 Classification Tonnes (m) Grade Li2O (%) Contained Tonnes Li2O Measured 8.4 1.57 133,000 Indicated 56.2 1.48 832,000 Inferred 43.9 1.38 606,000 Total 108.5 1.45 1,570,000 Goulamina Open Pit Ore Reserve Estimate – October
Slide 38: Goulamina Lithium Project Key Project Metrics
Goulamina Lithium Project Key Project Metrics Mineral Resource 108.5Mt at 1.45% Li2O Mine Life 23 years minimum Ore Reserves (Proven & Probable) 52Mt at 1.51% Li2O Average Spodumene Concentrate 436,000 tonnes per annum Production Concentrate Specifications 6% Li2O, <0.6% Fe2O3, low mica Annual Mine
Slide 39: Mineral Resource & Production – Company References
Mineral Resource & Production – Company References Mineral Resource References Company Company code Project name Announcement title Announcement date Global MRE Li2O% Alliance Minerals Private Bald Hill 121 Mining Conference Presentation 20 March 2019 27 0.96% AVZ Minerals AVZ Manono Updated Mineral
Slide 40: Appendix C: New Institutional Investors
c APPENDIX New Institutional Investors Post July 2021 Capital Raise
Slide 41: New Institutional Investors Post July Capital Raise
New Institutional Investors Post July Capital Raise FRANKLIN TEMPLETON INVESTMENTS (US) AUSBIL INVESTMENT MANAGEMENT LIMITED CQS MANAGEMENT LIMITED VALLIANCE ASSET MANAGEMENT LIMITED MACKENZIE FINANCIAL CORPORATION ROCKHAMPTON MANAGEMENT LIMITED MILLENIUM CAPITAL MANAGEMENT APAC RESOURCES CAPITAL LI