Aura Energy Ltd · ASX:AEE
Aura Energy — Technical Presentation (March 2023)
31 slides from Aura Energy's technical presentation, March 2023
Slide 1: Energy Metals for Tomorrow, and Today
Energy Metals for Tomorrow, and Today Enhanced Definitive Feasibility Study March 2023 ASX: AEE AIM: AURA
Slide 2: Disclaimer
Disclaimer This document, any attachments and the oral presentation on the slides (together the "Presentation") have been prepared and are being supplied to you by Aura Energy Limited (the "Company") solely for information purposes. The information and opinions in this Presentation or any other mate
Slide 3: Highlights
Highlights Mineral Resource Estimate of 113.0 Mt @ 236ppm containing 58.9 Mlbs U3O8 Exploitation and Environmental permits in place, targeting the commencement of commercial Significant near-term uranium producer production Q1 2025 Exceptional economics delivering post-tax NPV of US$ 226 milli
Slide 4: Corporate Snapshot
Corporate Snapshot KEY METRICS ASX Code AEE HÄGGÅN AIM Code (LSE) AURA PROJECT (100% owned) Shares on Issue 1 558 million ASX:AEE – AUD $0.295 Share Price 1 AIM:AURA – 15 pence Cash A$6.3 million (31 Dec ‘22) Market Capitalisation 1 A$165 million Listed Options 1 91 million (exercise $0.052 / Exp 30
Slide 5: Board and Management
Board and Management Phil Mitchell As the former CFO of Rio Tinto Iron Ore and member of the Executive Committee at Anglo American, Mr Mitchell has significant Non-Executive experience in mining M&A, strategic planning and management of all aspects of commodity portfolios. This includes building Cha
Slide 6: Aura's Strategy
Aura’s Strategy “To be a responsible global producer of commodities supporting a clean, decarbonised energy future, while being aligned with the communities in which we operate and creating value for all stakeholders” Beyond 2030 2027 - 2030 Long-Term Shareholder Value • Expanded production in-line
Slide 7: The Growing Global Uranium Market
The Growing Global Uranium Market
Slide 8: Nuclear - Fundamental to the Energy Transition
Nuclear - Fundamental to the Energy Transition 10% Carbon free, baseload power and can grow as x3 Of the world’s electricity requirement for energy Demand for uranium comes from nuclear increases possible based on currently 1 decarbonisation goals URANIUM STRUCTURAL SUPPLY DEFICIT (IN TU) Global R
Slide 9: Tiris Project Mauritania
Tiris Project Mauritania Enhanced Definitive Feasibility Study
Slide 10: Tiris Project – significant shareholder value and upside
Tiris Project – significant shareholder value and upside Enhanced Definitive Key Financial Outcomes1 Unit Feasibility Study Feasibility Study % Variation Mar-23 Aug-21 LOM Average U3O8 Price US$/lb U3O8 64 60 7% US$:A$ 0.70 0.70 0% NPV8 (post-tax, real basis, ungeared) US$ million 226 80 183% IRR (p
Slide 11: Compelling Tiris Project Economics
Compelling Tiris Project Economics Strong returns driven by low capital and operating costs1 Enhanced Feasibility Study delivers strong financials Units Base Case2 Upside Case3 Post-tax NPV8 US$M 226 347 Post-tax IRR % 28% 35% Significant leverage to the uranium price • Initial capital cost of US$ 8
Slide 12: Project Location - Mauritania
Project Location - Mauritania Well positioned to deliver global supply • An established mining jurisdiction with a Mining Code and Nuclear Law: • BP, Kosmos Energy and state oil and gas companies PETROSEN (Senegal) and Société Mauritanienne des Hydrocarbures (Mauritania) to produce 2.3 MM metric ton
Slide 13: Developing Tiris - Next Steps
Developing Tiris - Next Steps The dates below are indicative and subject to change. Aura Energy | ASX:AEE AIM:AURA 13
Slide 14: Projected Project Revenue
Projected Project Revenue1 US$m 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Offtake Revenue Spot Revenue 1. Based on spot price of US$65/lb U3O8 with inclusion of Aura’s commitments under the offtake agreement with Curzon Resources, ASX/AIM: 29th
Slide 15: Mining
Mining Operational advantages • Shallow open pit mining, average 4m depth • No drilling or blasting • ~85% of the waste is returned to mined areas Operating cost benefits • No drill or blast required (shallow free digging) • Waste returned to the mined-out area, progressive rehabilitation • LOM Stri
Slide 16: Processing advantage
Processing advantage Beneficiation upgrade allows an ongoing advantage Simple operation • Uranium easily separated using a simple rotary scrubber • Simple beneficiation delivers a leach feed grade >2,000 ppm U3O8 • Recovery of over 90% of the uranium into between 10% and 15% of the total mass progre
Slide 17: Operating Costs
Operating Costs Low cost ongoing operation • No drill and blasting cost Average expenditure • No crushing and grinding costs Category US$M pa US$/lbs U3O8 • Only 15% of the material progresses to the Mining 13.7 7.56 leach circuit, allowing for a smaller circuit Labour 3.5 1.94 Power 8.4 4.65 • Low
Slide 18: Capital Expenditure
Capital Expenditure Capital Efficient Expansion • No crushing and grinding circuit to be installed • High leach grade allows a smaller leach circuit START-UP RAMP-UP • Modular expansion facilitates efficient capital allocation Beneficiation Beneficiation Beneficiation Start-up 1.25Mtpa 1.25Mtpa 1.25
Slide 19: Growth – Exploration Upside
Growth – Exploration Upside The recent 10,000m infill drilling program increased Measured and Indicated (M&I) Resources by 52%.1 • Total MRE now stands at 58.9 Mlbs U3O8, 113Mt at 236 ppm U3O8 at a 100ppm grade cut-off • M&I Resources of 29.6 Mlbs U3O8, 62.1Mt at 216 ppm U3O8 at a 100ppm grade cut-o
Slide 20: Aura's Offtake Strategy
Aura’s Offtake Strategy Curzon contract for 1.5 Mlbs over five years with 52% at fixed (Ave $42 per lb.) and 48% at Initial offtake signed market pricing. An additional option for 1.0 Mlbs with claw-back rights exists for 70% of the volume Discussions underway with global sector-leading counterparti
Slide 21: Aura's Funding Strategy
Aura’s Funding Strategy Discussions progressing to gain the optimal funding mix prior to Debt the Final Investment Decision Initial Capex Confidence from equity markets strongly supports the raising of Equity additional equity to fund initial Capex US $ 87.9 million Other financial options con
Slide 22: Key Tiris Project Takeaways
Key Tiris Project Takeaways Mineral Resource Estimate of 113.0 Mt @ 236ppm containing 58.9 Mlbs U3O8 Significant near-term uranium producer Fully permitted, targeting the commencement of commercial production Q1 2025 Exceptional economics delivering post-tax NPV of US$ 226 million and post-tax
Slide 23: Häggån Project Sweden
Häggån Project Sweden
Slide 24: Häggån Polymetallic Project
Häggån Polymetallic Project Long-life project supplying a growing de-carbonized energy market Project Highlights 100% owned, Polymetallic Resource contains 2,548Mt material at 0.1% V2O5 cut-off1: • V2O5 - 14,900 Mlbs at 0.27% V2O5 • Ni –780,000 t at 312ppm Ni • Zn – 1,170,000 t at 433ppm Zn • Mo –
Slide 25: ASX:AEE AIM:AURA
David Woodall Managing Director and CEO dwoodall@auraee.com Paul Ryan Investor & Media Relations pryan@citadelmagnus.com ASX:AEE +61 409 296 511 AIM:AURA
Slide 26: Appendix 1 Tiris Mineral Resources
Appendix 1 Tiris Mineral Resources Aura Energy | ASX:AEE AIM:AURA 26
Slide 27: Tiris Mineral Resource
Tonnes U3O8 U3O8 U3O8 Area1, 2 Class (Mt) (ppm) (Mkg) (Mlb) Tiris Mineral Measured Indicated 8.0 5.8 236 217 1.9 1.3 4.2 2.8 Resource Hippolyte North Inferred 4.7 212 1.0 2.2 Sub-Total 18.5 224 4.1 9.1 Hippolyte Marie & West Inferred 8.2 310.0 2.5 5.6 Indicated 4.6 192 0.9 2.0 Hippolyte South Inferr
Slide 28: Appendix 2 Tiris Project Ore Reserves
Appendix 2 Tiris Project Ore Reserves Aura Energy | ASX:AEE AIM:AURA 28
Slide 29: Tiris Project Ore Reserve
Tiris Project Ore Reserve 2019 Maiden Reserve 2023 Reserve Update Variation 175 ppm U3O8 cut off 110 ppm U3O8 cut off U3O8 U3O8 U3O8 U3O8 U3O8 U3O8 Mt Mt Mt (ppm) (Mlbs) (ppm) (Mlbs) (ppm) (Mlbs) % % % Lazare North Proved 0.7 354 0.6 0.9 298 0.6 29% -16% 0% Probable 4.4 332 3.2 7.9 251 4.4 80% -24%
Slide 30: Mining Conventions
Mining Conventions Aura Energy | ASX:AEE AIM:AURA 30
Slide 31: Tiris Project – Mining Conventions
Tiris Project – Mining Conventions Key Aspects of the Mining Convention The Mining Convention between the Mauritanian Government and Aura provides stability and defines the legal and economic conditions that allow mining activities to occur over a period of 30 years. The key aspects of the mining co