Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (July 2019)
34 slides from Aurelia Metals's investor presentation, Jul 29, 2019
Slide 1: Building the Next Mid-Tier Gold and Base Metals Producer
For personal use only Building the Next Mid-Tier Gold and Base Metals Producer Quarterly Update, July 2019 ASX Code: AMI
Slide 2: Forward looking statements
Forward looking statements For personal use only This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation
Slide 3: Corporate snapshot
Corporate snapshot ASX code: AMI Share price (24 July 2019) $0.48 For personal use only Shares on issue 867.9m Major shareholders Market capitalisation A$417m AustralianSuper 6.3% Colonial First State 6.1% Board and management Van Eck 5.7% Chairman and Acting CEO Cobb Johnstone Executive Director an
Slide 4: Investment highlights
Investment highlights For personal use only Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling succes
Slide 5: Key assets
Key assets Located in the highly endowed and productive Cobar Region For personal use only Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Cobar Nyngan Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Federation Zn-Pb-Au-Cu-Ag Wonawinta Ag Mallee Bull Cu
Slide 6: Core strategy
Core strategy A mining-for-value approach For personal use only 1 Optimise existing operations Increased development rates and Pb/Zn circuit upgrade Mine life extension and ongoing efficiencies at Hera 2 Focus on returns Margin over volume or commodity preference Accelerating access to hig
Slide 7: Building for extension and growth
Building for extension and growth Calendar year 2019 a transition period dedicated to establishing a new platform For personal use only March and June 2019 quarters impacted by reduced contribution from Chronos Au at Peak 2H CY19 sees major investment in the business: Peak plant upgrade, acceler
Slide 8: June 2019 quarter dynamics
June 2019 quarter dynamics Increasing mining productivity and underground development rates at Peak For personal use only Group: 22.9koz gold at A$1,537/oz AISC Peak: 9.0koz at A$1,752/oz AISC Hera: 13.9koz at A$1,122/oz AISC Cash of A$104.3M (31 March 2019: A$108.6M), after A$12.2M of growt
Slide 9: June 2019 quarter dynamics
June 2019 quarter dynamics Throughput at Hera expected to rebound post cyclone upgrade For personal use only Peak Contract mining transition now largely complete Increased underground development rates and ore access Mill throughput restricted in June due to high-grade Pb/Zn ore feed; associat
Slide 10: A look at the year ahead: FY20 by mine
A look at the year ahead: FY20 by mine Higher base metals output, lower gold production For personal use only Peak Hera Increased underground development rates Reduced gold grades countered by higher base metals content Mining up-dip of Chronos – higher Pb/Zn, lower Au Reduced unit costs and
Slide 11: A look at the year ahead: FY20 group level
A look at the year ahead: FY20 group level Investing in the business For personal use only FY19 actual FY20 outlook Estimated FY20 Group AISC of A$1,050 to A$1,250/oz is based on reference Gold (koz) 118 85 – 95 base and silver metal prices equivalent to those used for the Company’s June 2019 Ore Re
Slide 12: A look further ahead: FY21 and beyond
A look further ahead FY21 and beyond For personal use only Annual throughput at Peak in FY21 expected to be approaching nameplate 800ktpa capacity Accelerated UG development expected to deliver access to base of Kairos towards end of FY20; strong potential for prioritisation and mining of high m
Slide 13: Peak: The key areas of focus
Peak: The key areas of focus Delivering on the operating and revenue transition For personal use only 1 Increased development rates and focus Access to more stoping blocks = higher throughput = lower overall unit costs from late FY20 2 Prioritising access to high margin ore Mining of residual
Slide 14: Targeting a sustainable, long-life operation
Targeting a sustainable, long-life operation Upgrade and efficiency projects to progressively unlock value through FY20 For personal use only Peak 2019 Ore Reserves Reserves provide 4 year life plus large Category Mine Area Tonnes (kt) NSR (A$/t) Au (g/t) Cu (%) Pb (%) Zn (%) Ag (g/t) Resource bas
Slide 15: Mining transition and productivity lift
Mining transition and productivity lift Driving underground efficiencies For personal use only Transition to contract UG mining with PYBAR in 2H FY19 targeting: Higher underground development rates Reduced unit operating costs Workforce changeover largely complete Development and mining ra
Slide 16: Pb/Zn circuit upgrade
Pb/Zn circuit upgrade Unlocking the high-grade base metals prize For personal use only Enables treatment of high margin Pb/Zn ore at 800ktpa throughput rate Separate concentrate streams = higher payabilities Capital cost estimate of A$53M Completion expected in March 2020 quarter Mine deve
Slide 17: Accelerating access to high-grade Kairos (Peak Deeps)
Accelerating access to high-grade Kairos (Peak Deeps) Perseverance and Chronos development Peak and Kairos development For personal use only 17
Slide 18: Hera: The key areas of focus
Hera: The key areas of focus Driving life and margin For personal use only 1 Strong production and cost performance 2 Testing immediate perimeters of Hera orebody 3 Acceleration of Federation and Dominion exploration 18
Slide 19: Proven performance
Proven performance Strong high margin output For personal use only Established, proven performer Hera 2019 Ore Reserves Tonnes NSR Au Pb Zn Ag Class Zone Mill capacity of approx. 480ktpa (kt) (A$/t) (g/t) (%) (%) (g/t) Far West 498 212 1.9 2.9 4.8 18 North Pod and Far West the key ore sources
Slide 20: North Pod and Far West: the major ore sources
North Pod and Far West: the major ore sources For personal use only 20
Slide 21: Building value
Building value For personal use only 01 02 03 04 Robust operational Upgrade and Near-mine inventory Regional exploration base efficiency projects additions success Peak: 4 year Reserve life Peak: Pb/Zn plant Chronos Extensions, Federation upgrade Pb/Zn Hera: 4 year Reserve life Dominion
Slide 22: Exploration
For personal use only 22 Exploration
Slide 23: The exploration value driver
The exploration value driver Significant recent drilling success For personal use only Enhanced financial ability and growing geological understanding of controls on mineralisation Early stage but significant results at Federation; large-scale, polymetallic and strong grade tenor Main Southeas
Slide 24: Cobar Line-of-Lode
Cobar Line-of-Lode Targeting high margin mineralisation For personal use only World-class mining area with long history of discovery Prospective trend extends over 10 km Multiple high tonnage and/or high grade deposits along the full strike Focus on discovery of new high margin Peak/Persever
Slide 25: Chronos
Chronos Significant up-dip potential For personal use only High margin Pb-Zn ores [Upper Chronos / Peak Deeps long section] Recent drilling extends lode more than 100 metres above current resources/reserves Very strong base metals, including: 19m at 34.1% Pb+Zn & 0.9g/t Au 15m at 35.1% Pb+
Slide 26: Kairos (Peak Deeps): high-margin drilling success
Kairos (Peak Deeps): high-margin drilling success The next Chronos? For personal use only Discovered early 2019; directly beneath Peak decline development Mineralisation style and geological setting similar to Chronos Open up- and down-dip Very high grade intercepts, including: 16m at 71.6
Slide 27: Federation discovery
Federation discovery Accelerating evaluation work For personal use only Very recently discovered (April 2019) 10km south-southwest of Hera Multiple high grade intercepts include: 26m at 16.4% Pb+Zn, 0.1g/t Au, incl. 11.5m at 31.1% Pb+Zn & 0.1g/t Au 5m at 22.6% Pb+Zn & 3.1g/t Au 6m at 21.
Slide 28: Main Southeast Deeps discovery
Main Southeast Deeps discovery Near mine potential For personal use only Very recent discovery (May 2019) Directly along trend south of Hera Initial drilling returns strong sulphide mineralisation: 23m at 7.3% Pb+Zn, incl. 8m at 14.5% Pb+Zn Open up-dip, down-dip and to the south Close to
Slide 29: Hera North Pod
Hera North Pod Extending Hera’s mine life For personal use only High grade Pb-Zn-Au-Ag mineralisation Highest tonnage ore source at Hera 2018/19 drilling extends lode up-dip, including: 7m at 45.1% Pb+Zn, 229g/t Ag & 0.3g/t Au 6.4m at 43.6% Pb+Zn, 263g/t Ag & 0.3g/t Au 14m at 18.3% Pb+Zn
Slide 30: Regional foothold
Regional foothold Highly strategic asset base in the polymetallic Cobar Basin with two major processing plants possessing a combined capacity of 1.3Mtpa For personal use only Building Value in High margin output the Cobar Basin Established, high-value gold and base metals production profile Leveragi
Slide 31: Appendix
For personal use only 31 Appendix
Slide 32: Mineral Resources estimates (June 2019)
Mineral Resources estimates (June 2019) For personal use only Peak 2019 Mineral Resources Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Measured 1,919 204 1.7 1.3 0.6 0.7 11 Indicated 7,402 219 1.6 1.3 1.1 1.3 10 Inferred 4,889 207 1.3 1.6 0.5 0.8 7 Total 14,210 213 1.5 1.4 0.9
Slide 33: Ore Reserves estimates (June 2019)
Ore Reserves estimates (June 2019) For personal use only Peak 2019 Ore Reserves Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Proved 376 181 1.2 1.7 0.3 0.6 11 Probable 2,458 232 2.1 1.0 2.0 2.1 16 Total 2,834 225 2.0 1.1 1.8 1.9 15 Utilises NSR cut-offs of A$150/t (Peak and Pe
Slide 34: Competent Person(s) Statements
Competent Person(s) Statements Hera Mineral Resource Estimate For personal use only Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia