Aeris Resources Limited · ASX:AIS
Aeris Resources — RIU Sydney Resources Round-up 2021
34 slides from Aeris Resources's conference presentation, May 6, 2021
Slide 1: Maintaining the Momentum
Maintaining the Momentum RIU Sydney Resources Round-up 6 May 2021 Presented by: Andre Labuschagne
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation may contain certain statements and projections provided by or on behalf of Aeris Resources Limited (Aeris) with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of Aeris. Acc
Slide 3: Compliance statements
Compliance statements Tritton Copper Operations Production Targets Cautionary Statement The presentation includes references to a Production Plan (Production Targets) for the Company’s Tritton Copper Operations. The Production Targets referred to in this presentation are based on: Proved Ore Reser
Slide 4: Company snapshot
Company snapshot ASX Code AIS Market capitalisation Cracow Gold Operations A$200m (fully diluted)1 Ownership 100% Mine type U/G Enterprise Value Processing 600 ktpa CIP (fully diluted)1 A$200m FY21F Production 70koz – 75 koz Au FY21F AISC A$1,525/oz-A$1,575/oz Net debt positive2 A$0.2m Au Reserves(3
Slide 5: Aeris' corporate history
Aeris’ corporate history Following years of restructuring, Aeris is now primed to deliver high impact growth Phase 3: Growth execution Phase 2: Position for Growth FY13 Q1 FY21 (2018 – 2020) Acquisition of Cracow Balance sheet strength restored Phase 1: Pivot to active growth program: Restruct
Slide 6: The transformation in the last months
The transformation in the last 10 months H1 results Comparison H1 Dec 19 vs 20 Cash from Share price Market cap $m Revenue $m Operating Net profit $m Net debt $m activities $m Constellation Discovery Dec 19 29 April 21 1 Jun 20 3.4c $40M equity raise 19 Acquisition of Cracow 108 6 -29 37 10.2c 200 2
Slide 7: Cracow Gold Operations
Cracow Gold Operations Zap heris
Slide 8: Cracow Gold Operations
Cracow Gold Operations A highly cash flow generative mine which is transforming the company ● A high grade, low cost gold mine in Queensland, Australia with a proven operating history ● Acquired from Evolution Mining in July 2020: ─ A$60m cash paid at completion ─ A deferred cash payment of A$15m on
Slide 9: Immediate priorities for Cracow
Immediate priorities for Cracow ● FY21 Guidance - 70koz to 75koz Au @ AISC A$1,525 – A$1,575/oz Operational Delivery ● Repay A$30m Acquisition Debt Facility by end FY21 ● Maximising cashflows (~A$280m in available tax losses) ● Improve mine and mill productivity – processing plant already Immediate
Slide 10: Cracow – a prolific goldfield – Aeris re-invigorating exploration
Cracow – a prolific goldfield – Aeris re-invigorating exploration Strong history of replenishing reserves and resources - remains a key focus for Aeris Cracow has produced more than 1.4 Moz of gold over its life since first production in 2004 Depletion consistently replaced with a 3 to 5 year
Slide 11: Cracow Gold Operations - Exploration of brownfield target areas
Cracow Gold Operations - Exploration of brownfield target areas Drill target – tested / testing Drill target – not tested Cracow Resource updates: • Roses Pride Mineral Resource estimate increased gold ounces by 260%1 • Klondyke-Royal Mineral resource update increased gold ounces by 324%2 • Undergro
Slide 12: Cracow Gold Operations – Royal deposit
Cracow Gold Operations – Royal deposit • Drilling intersected gold mineralisation over a 130m strike window • All outside current Mineral Resource footprint • Significant intersections: RSU526 - 4.6m @ 9.4g/t Au (2.8m true thickness) RSU530A - 4.6m @ 3.5g/t Au (2.9m true thickness) RSU528 - 6.
Slide 13: Cracow Gold Operations – Sovereign deposit
Cracow Gold Operations – Sovereign deposit • Drilling focused on the northern extensions • All ten holes completed intersected main mineralised structure • Significant intersections: SVU128 - 2.7m @ 7.5g/t Au (2.2m true thickness) SVU125 - 2.2m @ 4.3g/t Au (1.8m true thickness) SVU130 - 7.9m @
Slide 14: Exploring in new spaces – looking for the next big discovery
Exploring in new spaces – looking for the next big discovery ● Ballymore ─ Recently identified structure along southern margin of the current mining footprint ─ Limited historical drilling returned encouraging results: ─ Evidence of epithermal vein textures ─ Anomalous pathfinder elements including
Slide 15: Exploring in new space - Western Field
Exploring in new space - Western Field Exploration – new space • Planned drilling of Ballymore north target changed from surface to underground – Cost neutral – Reduces drill risk (+1,000m surface holes vs 300m U/G holes) – Drilling planned to commence late Q4 FY21 15
Slide 16: Tritton Copper Operations
Tritton Copper Operations Tay heris
Slide 17: Tritton Copper Operations
Tritton Copper Operations A consistent producer with upside ● Established underground copper mines and 1.8 Mtpa processing plant in Western NSW, Australia ─ Operating since 2005 with >320 kt Cu produced ● Highly endowed region and tenement package ─ Nearby mines include CSA (Glencore plc), Peak and
Slide 18: Tritton Life of Mine Plan (LOM)
Tritton Life of Mine Plan (LOM) 4 year LOM with multiple options to extend Aggressive focus on extending mine plan from: ● Tritton and Murrawombie ● Developing Budgerygar via access from Tritton ● Prioritizing higher grade Avoca Tank U/G into production ● Open Pits: – Murrawombie - after underground
Slide 19: Life of Mine extensions - Tritton and Budgerygar
Life of Mine extensions - Tritton and Budgerygar Life of Mine extension opportunities Tritton Deposit: ― Mineralisation open at depth • Commenced drill program testing down plunge potential ― South Wing – adjacent to Tritton orebody – further drilling planned Corridor between Tritton and Budgerygar:
Slide 20: Murrawombie – brownfields exploration
Murrawombie – brownfields exploration ● Geologically performing better than expected ● Minerailsation open at depth and to the north ● Recent drilling continues to intersect high grade mineralisation, including: ― MWGC546 – 8.65m @ 3.38% Cu (5.10m true thickness) ― MWGC549 – 6.10m @ 2.71% Cu (6.00m
Slide 21: Greenfields Exploration Activities in FY21
Greenfields Exploration Activities in FY21 Constellation • Bedrock conductor identified initially from an airborne EM survey and confirmed by Ground based EM • Drilling commenced in mid-November 2020 ― first drill hole intersected 19.95m @ 2.41% Cu, 0.64g/t Au, 4.6g/t Ag Avoca Tank • Two drill holes
Slide 22: Tritton Copper Operations – Constellation Deposit
Tritton Copper Operations – Constellation Deposit Spectacular results • 45km North-East from Tritton • 14 diamond holes drilled with majority intersecting copper sulphide mineralisation • Traced 500m down plunge • Mineralisation remains open down plunge and along strike (south) 22
Slide 23: Tritton Copper Operations – Constellation drilling accelerated
Tritton Copper Operations – Constellation drilling accelerated • 3 drill rigs now operating • RC program targeting shallow high grade mineralisation • 2 diamond drill rigs testing the larger system and focused down plunge and along strike to the south 23
Slide 24: An exciting path forward with multiple value catalysts in FY21
An exciting path forward with multiple value catalysts in FY21 Potential Catalysts FY21 Quarter 2 FY21 Quarter 3 FY21 Quarter 4 Roses Pride / Sterling Klondyke Deeps Exploration Drilling at Cracow Roses Pride Deeps Ballymore Kenneth Golden Plateau Tritton Deeps Exploration Drilling at Tritton
Slide 25: M&A strategy remains a focus
M&A strategy remains a focus Aeris Resources Commodity Gold and Copper M&A strategy East coast Australia Location Rest of Australia Offshore – Risk reward ● Pursue strategic M&A opportunities that adds value, complement existing Producing operation with established infrastructure portfolio
Slide 26: Summary
Summary FAH Aeris
Slide 27: What makes Aeris different?
What makes Aeris different? Proven team with a consistent Financially robust, rapidly track record deleveraging A unique platform to Diversified, strong free cash consolidate the landscape generation where others cannot 29 79 Favourable gold / copper Primed to unlock value Cu Au price exposure 27
Slide 28: Thank You
Thank You
Slide 29: Appendix
Appendix
Slide 30: Tritton – reported Mineral Resource
Tritton – reported Mineral Resource Tritton tenement package (30 June 2020)(1)(2) Measured Indicated Inferred Total Resource Cut-off Project (%Cu) Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (k
Slide 31: Tritton – reported Ore Reserve
Tritton – reported Ore Reserve Tritton tenement package (30 June 2020)(1)(2)(3)(4) Proven Probable Total Ore Reserves Cut-off Project Type (%Cu) Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) Tritton Underground 1.2 1,200 1.5 17 1
Slide 32: Cracow – Mineral Resource and Ore Reserve
Cracow – Mineral Resource and Ore Reserve Cracow (30 June 2020)(1) Gold grade Tonnes (Mt) Gold metal (koz) (g/t) Ore Reserve Proven 0.28 5.2 46 Probable 0.27 4.9 43 Total 0.55 5.1 89 Mineral Resource(2) Measured 0.20 7.8 53 Indicated 0.69 5.9 130 Inferred 1.40 2.6 120 Total 2.30 4.0 300 (1) Full det
Slide 33: Cracow – Roses Pride Mineral Resource Update
Cracow – Roses Pride Mineral Resource Update December 2020 Roses Pride Mineral Resource1 Resource Category Tonnage Au (g/t) Ag (g/t) Au metal (koz) Ag metal (kt) (koz) Measured - - - - - Indicated 104.1 4.7 2.1 15.6 7.0 Inferred 73.0 4.5 2.2 10.5 5.1 TOTAL 177.1 4.6 2.2 26.1 12.1 June 2020 Roses Pri
Slide 34: Competent Persons statement
Competent Persons statement Competent Persons statement Mr Cox confirms that he is the Competent Person for all the Mineral Resource and Exploration Target estimates summarised in this Report and he has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting o