Slide 1: Kalgoorlie Nickel Project Goongarrie Hub: A multi decade nickel-cobalt operation
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Andrew Penkethman Managing Director and CEO RIU Explorers Conference 13 February 2024
Slide 2: Disclaimer
Disclaimer Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 N
Slide 3: Experienced Board, Supportive Shareholders & Tight Capital Structure
Experienced Board, Supportive Shareholders & Tight Capital Structure Mat Longworth Andrew Penkethman Ian Buchhorn Maree Arnason Sam Middlemas Non-Executive Chair Managing Director & CEO Executive Director Non-Executive Director Company Secretary Experienced across exploration, Experienced geologist
Slide 4: The Right People – With The Right Expertise
The Right People – With The Right Expertise Rebecca Moylan Matthew Read Mike Miller Alex Mukherji Matthew McCarthy Chief Financial Officer Project Director General Manager – General Manager – General Manager – Technical Services Land Access Geology & Exploration Experienced CFO with expertise Experi
Slide 5: Kalgoorlie Nickel Project (KNP) – Strong Fundamentals
Kalgoorlie Nickel Project (KNP) – Strong Fundamentals Granted Mining Lease tenure in Low-cost Ni & Co production, with premier location for infrastructure, strong average annual EBITDA for skills and resource project operation over 40 years3 6.1Mt Nickel & 386kt Cobalt MRE1 Ardea and Japanese Consor
Slide 6: Nickel and Cobalt Market – Demand for Ethical Supply
Nickel and Cobalt Market – Demand for Ethical Supply • Global nickel and cobalt demand is increasing, driven by stainless steel, electric vehicle (EV) and energy storage applications • US Inflation Reduction Act (IRA) includes Foreign Entity of Concern (FEOC) condition which, from 2025, will mean ve
Slide 7: All Nickel Supply Chains are NOT Equal
All Nickel Supply Chains are NOT Equal Kalgoorlie Nickel Project Goongarrie Hub Low Risk/Low Concern ESG jurisdiction1 Large resource, multi-decade operation, robust financial metrics, low Opex - strategic asset attractive to OEMs2 Meets IRA, FEOC, EU CRMA conditions 100% Offtake available a
Slide 8: Why Nickel in EV Batteries is the Ideal Choice
Why Nickel in EV Batteries is the Ideal Choice • Nickel batteries have nearly twice the energy • Nickel batteries are leading EV applications density of other materials. Nickel-based lithium-ion in Commercial and Public transport including batteries, such as Nickel-Cobalt-Manganese (NCM) bus, truck,
Slide 9: Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource • KNP – Goongarrie Hub, 70km northwest of the KNP City of Kalgoorlie-Boulder is in the best operating jurisdiction in the world • Ready access to skilled personnel, and key infrastructure, including road, rail, power and gas.
Slide 10: Kalgoorlie Nickel Project Resource in Top 10 Globally
Kalgoorlie Nickel Project Resource in Top 10 Globally Top 10 Note: • Contained Ni Metal is reported Total Mineral Resource (M+I+Inf) Page 10 • See References for Global Nickel Resource chart in Appendices
Slide 11: KNP Goongarrie Hub Ore Reserve
KNP Goongarrie Hub Cross Section 669 7260mN Highway Ore Reserve1 • 1.36Mt of nickel metal • 99kt of cobalt metal Goongarrie Hill • Resource defined by >5,000 drill holes for Cross Section Goongarrie South 666 9600mN >250km of drilling Big Four / Scotia Dam Siberia North Page 11 1. See full tables in
Slide 12: KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel
KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel Open Pit (PFS 5 July 2023) AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m Goongarrie South AGSR0418* Pamela Jean Deeps Section 666 9600mN 42m @ 0.67% Ni, 0.04% Co from 30m 56m @
Slide 13: Simple Mining Characteristics – Low-Cost Mining
Simple Mining Characteristics – Low-Cost Mining Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Deposits To Siberia North To Kalgoorlie - Boulder • 25km strike - Uniform Ni-Co laterite mineralisation dominated by Goethite • Goethite is ‘Best in Class’ plant
Slide 14: Premium Goethite Nickel and Cobalt Ore
Premium Goethite Nickel and Cobalt Ore Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Mining To Siberia North To Kalgoorlie • Open-pit, soft, mainly free-digging - Boulder mining with low-cost mining methods • 2023 PFS pit schedule estimate very low strip
Slide 15: KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore
KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore Open Pit Mineralised Neutraliser Highway Section 669 7260mN (PFS 5 July 2023) 200m 38m @ 1.03% Ni, 0.147% Co from 13m AGSD0001 inc 11m @ 1.22% Ni, 0.063% Co & 38g/t Sc from 16m 100.80m and 10m@@1.00% 1.40%Ni,Ni,0.08% CoCo 0.363% from 34
Slide 16: 2023 PFS Based on Desirable Flowsheet using Proven Technology
Acid Plant MHP Power Plant CCD HPAL SN PN Goethite Grind AL Mineralised Neutraliser Silica-Goethite Bene 2023 PFS Based on Desirable Flowsheet using Proven Technology 3.5Mtpa - 2 x 1.5Mtpa HPAL autoclaves plus 0.5Mtpa AL circuit Page 16
Slide 17: KNP Goongarrie Hub – Low Cost Nickel Laterite Production
KNP Goongarrie Hub – Low Cost Nickel Laterite Production KNP Goongarrie Hub Low C1 Opex after Cobalt credit of US$5,763/t Ni in MHP LOM1 compares well with Indonesian Opex and lower than most sulphide producers Page 17 1. See full tables in Appendix and 5 July 2023 ARL ASX Announcement.
Slide 18: Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers
Kalgoorlie Nickel Project – Robust Goongarrie Hub PFS Delivers • Goongarrie Hub Ore Reserve2 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years • Strong financial metrics wi
Slide 19: Collaboration Activities on DFS Scope of Work
Collaboration Activities on DFS Scope of Work • Bids for key DFS work packages, being reviewed for final DFS Program / Budget • Hydrogeology planning to quantify long-term water supply • Expanded seasonal baseline environmental studies concluded • DFS metallurgical test work programs refined • Comme
Slide 20: Ardea and Japanese Consortium Collaboration Advances
Ardea and Japanese Consortium Collaboration Advances • Ardea collaboration with well-regarded and experienced Japanese Consortium (JC) comprised of Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation has resulted in completion of 2023 PFS due diligence, agreement on the DFS Scope of Work, with
Slide 21: ESG Credentials Strengthened During PFS
ESG Credentials Strengthened During PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 22: Ardea Exploration Pipeline Upside
Ardea Exploration Pipeline Upside Ardea controls >4,400km2 of tenure in the Eastern Goldfields of WA with unrivalled Battery and Critical Mineral exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m)
Slide 23: Key Investment Considerations – For a Must Have Nickel-Cobalt Stock
Key Investment Considerations – For a Must Have Nickel-Cobalt Stock KNP is a strategic asset owned 100% by Ardea - it is the largest Ni-Co resource in Australia and in top 10 globally, making it of a scale that is incredibly rare and important in the World’s journey to Net Zero Located in the premie
Slide 24: Andrew Penkethman
Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 Our team welcome your questions ardea@ardearesources.com.au
Slide 25: Appendices: Full tables and supporting references
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Appendices: Full tables and supporting references
Slide 26: OEMs will Increasingly Need to Secure Compliant Raw Material Supply
OEMs will Increasingly Need to Secure Compliant Raw Material Supply Tesla Gigafactory Nevada planned expansion to 140GWh will annually require: 110-125kt Nickel (23.9% 2022 global supply)* 11kt-15kt Cobalt (9% 2022 global supply)* Figures based on Benchmark Mineral Intelligence data as reported 1 Fe
Slide 27: Competent Persons
Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 July 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX MOU Announcements 5 July 2023, 29 September 2023, 21 December 2023 and 31 January 2024. Information in this presentation th
Slide 28: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade The Competent Persons (CP) for the Mineral Resources, are Contained Contained Mr Ian Buchhorn and Mr Andrew Penkethman, both are full-time KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (
Slide 29: KNP Goongarrie Hub MRE
KNP Goongarrie Hub MRE KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Resource Size Ni Co Contained Metal Estimation Details Prospect Category (Mt) (%) (%) Ni (kt) Co (kt) Method Source Year Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Goongarrie The Competen
Slide 30: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore Ni Co Ni Co Ni Co Ni Co Ni Co Ni Co KNP Goongarrie Hub Ore Reserve Summary consisting of Deposit Mt % % kt kt Mt % % kt kt Mt % % kt kt ore above 0.5% Ni as the feed stock for the processing Proven facility
Slide 31: PFS Key Financial Metrics
PFS Key Financial Metrics PFS defines > 40-year Financials A$ M 44,429 Nickel Revenue operation with strong Cobalt Revenue A$ M 7,880 financial metrics1: Revenue - combined EBITDA LOM A$ M A$ M 52,309 34,217 • Pre-tax NPV7 of A$7,625M (IRR 30%) EBITDA Annual (average) A$ M 800 EBITDA margin % 65% •
Slide 32: References for Global Nickel Resource Chart
References for Global Nickel Resource Chart Reference Date Title ref. pp Link SLN - Doniambo 26 Apr 2023 Eramet Universal Registration Document 2022 77 https://www.eramet.com/wp-content/uploads/2023/04/2023-04-26-Eramet-URD-2022-EN.pdf Norilsk Division Annual Report 2022 54-55 https://nornickel.com/