Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Australian Nickel Conference 2023
32 slides from Ardea Resources's conference presentation, Oct 4, 2023
Slide 1: Kalgoorlie Nickel Project Goongarrie Hub
For personal use only Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Australian Nickel Conference Presentation 4 October 2023
Slide 2: Disclaimer
Disclaimer For personal use only 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 p
Slide 3: Ardea Corporate Overview
Ardea Corporate Overview For personal use only Board Executive Management Team Mathew Longworth Non-Executive Chair Sam Middlemas Company Secretary Andrew Penkethman Managing Director & CEO Rebecca Moylan Chief Financial Officer Ian Buchhorn Executive Director Matt Read Project Director Maree Arnaso
Slide 4: Nickel and Cobalt Market – Unprecedented Demand
Nickel and Cobalt Market – Unprecedented Demand For personal use only • Current producers of nickel will not meet demand forecasts with all known resources needing to be developed to help meet demand • Global nickel and cobalt demand is set to double by 2030, driven by battery applications • The US
Slide 5: Kalgoorlie Nickel Project – Strong Fundamentals
Kalgoorlie Nickel Project – Strong Fundamentals For personal use only Granted Mining 6.1Mt Nickel & PFS shows KNP Low-cost Ni & Co, Positive Lease tenure in 386kt Cobalt Goongarrie Hub strong earnings engagement with premier location MRE1 positions will be a multi- for over 40 years the Japanese for
Slide 6: Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource For personal use only • The Kalgoorlie Nickel Project (KNP) global Mineral Resource Estimate1 (MRE) is 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt contained nickel and 386kt contained cobalt • The KNP Goongarrie Hub MRE1 now sta
Slide 7: Kalgoorlie Nickel Project Resource in Top Globally
Kalgoorlie Nickel Project Resource in Top 10 Globally For personal use only Top 10 Note: • Contained Ni Metal is reported Total Mineral Resource (M+I+Inf) Page 7 • See References for Global Nickel Resource chart in Appendices
Slide 8: KNP globally significant resource in best operating jurisdiction
KNP globally strategic significant resource, For personal use only in the best operating jurisdiction in the world Page 8
Slide 9: KNP Goongarrie Hub
Highway KNP Goongarrie Hub Cross Section 669 7260mN Ore Reserve1 For personal use only • 1.36Mt of nickel metal Goongarrie Hill • 99kt of cobalt metal • Resource defined by >5,000 drill holes for Cross Section Goongarrie South 666 9600mN >250km of drilling Big Four / Scotia Dam Siberia North Page 9
Slide 10: KNP Goongarrie Hub – Cross Section through Goongarrie South
KNP Goongarrie Hub – Cross Section through Goongarrie South For personal use only 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% N
Slide 11: KNP Goongarrie Hub – Cross Section through Highway
KNP Goongarrie Hub – Cross Section through Highway For personal use only Open Pit Mineralised Neutraliser Highway Section 669 7260mN (PFS 5 July 2023) 38m @ 1.03% Ni, 0.147% Co from 13m 200m AGSD0001 inc 11m @ 1.22% Ni, 0.063% Co & 38g/t Sc from 16m and 10m@@1.00% 100.80m 1.40%Ni,Ni,0.08% 0.363% CoC
Slide 12: Simple Mining Characteristics
Simple Mining Characteristics For personal use only Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Deposits To Siberia North To Kalgoorlie • 25km strike - Uniform Ni-Co laterite mineralisation dominated by Goethite • Goethite is ‘Best in Class’ plant feed
Slide 13: Goongarrie Hub Mining
Nickel and Cobalt For personal use only 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 mining with low-cost mining methods • 2023 PFS pit schedule estimate very low strip ratio of
Slide 14: Kalgoorlie Nickel Project – Goongarrie Hub Mining Study
Kalgoorlie Nickel Project – Goongarrie Hub Mining Study For personal use only • Goongarrie Hub Ore Reserve1 of 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 • The enhan
Slide 15: Goongarrie Hub Processing Plant
For personal use only Goongarrie South Goongarrie Hub Processing Plant Page 15
Slide 16: Processing flowsheet
Acid Plant MHP For personal use only Power Plant CCD HPAL SN PN Goethite Grind AL Mineralised Neutraliser Silica-Goethite Bene Desirable Flowsheet Proven Technology 3.5Mtpa - 2 x 1.5Mtpa HPAL autoclaves plus 0.5Mtpa AL circuit Page 16
Slide 17: Goongarrie Hub – Low-Cost Mining and Production
Goongarrie Hub – Low-Cost Mining and Production For personal use only Goongarrie Hub C1 cost including Co credit compares very well on the global cost curve Page 17 Note: based on data from Company filings.
Slide 18: KNP Goongarrie Hub Financials
KNP Goongarrie Hub Financials Nickel Revenue A$ M 44,429 Updated Ore Reserve 7,880 For personal use only Cobalt Revenue A$ M & PFS defines Revenue - combined A$ M 52,309 EBITDA LOM A$ M 34,217 +40-year operation with EBITDA Annual (average) A$ M 800 strong financial EBITDA margin % 65% 31,100 metric
Slide 19: Outstanding Growth Potential Identified During PFS
Outstanding Growth Potential Identified During PFS For personal use only • Several opportunities exist with substantial benefits to the financial metrics expected and include: Addition of a scandium recovery circuit Optimisation of existing processing circuit Optimisation of the rate of throug
Slide 20: Ardea sign KNP Goongarrie Hub MOU
Ardea sign KNP Goongarrie Hub MOU For personal use only • Ardea are working to scope DFS under non-binding MOU, with a well-regarded and experienced Japanese Consortium comprised of Sumitomo Metal Mining Co., Ltd, Mitsubishi Corporation, and Mitsui & Co., Ltd1 • Ardea and the Consortium are defining
Slide 21: Why KNP Goongarrie Hub is a Compelling Investment Opportunity
Why KNP Goongarrie Hub is a Compelling Investment Opportunity For personal use only Ardea will be a Note: large, long-term • Producers in blue, other colours are Developers (who have proposed annual nickel-cobalt nickel production and EBITDA based on latest feasibility study) • See Appendices for Re
Slide 22: ESG credentials strengthened during PFS
ESG credentials strengthened during PFS For personal use only 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 ex
Slide 23: Key Investment Considerations
Key Investment Considerations – For a must have nickel-cobalt stock For personal use only KNP is a strategic asset owned 100% by Ardea - it is the largest Ni - Co resource in Australia and in top 10 globally Located in the premier resources operating jurisdiction in the World Goongarrie Hub re
Slide 24: For further information
For personal use only For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 ardea@ardearesources.com.au Visit the Ardea Team at booth #6 to watch the KNP Fly-through or keep up to date with news www.ardearesources.com.au
Slide 25: Appendices: Full tables and supporting references
For personal use only Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Appendices: Full tables and supporting references
Slide 26: Competent Persons
Competent Persons For personal use only 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 Announcement 5 July 2023. Information in this presentation that relates to Ore Reserves at the Ka
Slide 27: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Contained Contained For personal use only KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (kt) Goongarrie Hub Measured 18,200,000 0.94 0.085 171 15 Indicated 276,500,000 0.70 0.046 1,923 1
Slide 28: KNP Goongarrie Hub Mineral Resources
KNP Goongarrie Hub 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 MRE Category (Mt) (%) (%) Ni (kt) Co (kt) Method Source Year For personal use only Measured 18 0.94 0.085 171 15 LUC Ardea 2021 G
Slide 29: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub KNP Goongarrie Hub Ore Reserve Summary consisting of ore above 0.5% Ni as the feed stock for the processing facility, and ore as Mineralised Neutraliser above 0.5% Nieq and LOI above 25% Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore For personal use on
Slide 30: References for Global Nickel Resource Chart
References for Global Nickel Resource Chart Reference Date Title ref. pp Link For personal use only 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
Slide 31: References for peer comparison data
All Share Prices/Shares on Issue from S&P Capital IQ – 2 August 2023 References for ASX:IGO Cash/Debt 31 Jul 2023 June 2023 Quarter Presentation 5 https://announcements.asx.com.au/asxpdf/20230731/pdf/05s3yjb49kcv2z.pdf EBITDA 31 Jul 2023 June 2023 Quarter Presentation (Nickel EBITDA only) 15-16 http
Slide 32: References for peer comparison data
All Share Prices/Shares on Issue from S&P Capital IQ – 2 August 2023 References for ASX:ARL Cash/Debt 27 Jul 2023 Quarterly Operations Report 33 https://announcements.asx.com.au/asxpdf/20230727/pdf/05s04dt912fych.pdf KNP Goongarrie Hub Ore Reserve & Feasibility Study Defines +40 Year operation with