Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Merger or Acquisition (November 2017)
49 slides from Aurelia Metals's merger presentation, Nov 21, 2017
Slide 1: Acquisition of Peak Mines
For personal use only ASX Code: AMI Acquisition of Peak Mines Building a Leading Cobar Gold and Base Metals Producer • Can we get access to some images of Peak to use on the cover here? Investor Presentation – 21 November 2017 Jim Simpson, Managing Director & CEO NOT FOR RELEASE OR DISTRIBUTION IN T
Slide 2: Important Information and Disclaimers
Important Information and Disclaimers Disclaimer • This presentation has been prepared by Aurelia Metals Limited (Aurelia or the Company) in relation to the proposed acquisition of Peak Gold Asia Pacific Pty Ltd (owner of the Peak Mines) (Peak or Peak Mines) and an institutional share placement. For
Slide 3: Important Information and Disclaimers
Important Information and Disclaimers Disclaimer • Certain information in this presentation in relation to Peak - including in relation to historical production, resources and reserves, costs, financial information and life of mine plans - has been sourced from New Gold Inc. (New Gold) and its subsi
Slide 4: Dominant Presence in a Highly Endowed Province
Dominant Presence in a Highly Endowed Province • Expands Aurelia’s exploration acreage in the highly prospective Cobar region to 1,385 km2 For personal use only • A number of near-mine and regional targets identified 4
Slide 5: The Perfect Growth Opportunity for Aurelia
The Perfect Growth Opportunity for Aurelia Neighbouring Located 75km (90km by road) north of Aurelia’s Hera Acquisition positions Aurelia with a dominant Operations operations, offering significant operational synergies landholding in a highly endowed mineral province For personal use only Diversifi
Slide 6: Transaction Overview
Transaction Overview • Binding Agreement to acquire 100% of the Peak Mines operations in Cobar, NSW from New Gold Inc. For personal use only • Establishes Aurelia as a significant gold and base metals producer • Aurelia will control a dominant landholding in a highly endowed mineral province with tw
Slide 7: What Does FY18 & FY19 Look Like for Aurelia?
What Does FY18 & FY19 Look Like for Aurelia? Two High Grade Mining Operations: Peak & Hera For personal use only Hera Plant Aurelia Production target for FY18 (Hera 12 months and Peak 6 months): • 75,000 – 90,000 ounces gold • 125,000 – 140,000 Au Eq.(ii) • AISC(i) of A$900-A$1,100/oz Peak Plant Aur
Slide 8: Funding the Acquisition
Funding the Acquisition Source of Funds Use of Funds Investec senior debt $45M Acquisition price $75.5M For personal use only Investec bond guarantee $25M Replacement of environmental bonds $25M Placement to Pacific Road $28M Peak working capital $10M Institutional/Other Placement $42M Transaction c
Slide 9: Debt Facilities
Debt Facilities Facility Amount For personal use only Senior Debt Facility A$45 million Corporate Amortising Loan A$85 million (to refinance the Senior Debt Facility) Guarantee Facility A$25 million • New underwritten debt facilities (credit approved) secured from the Investec Group (“Investec”) to
Slide 10: Pro-Forma Net Debt Position & Shares on Issue
Pro-Forma Net Debt Position & Shares on Issue For personal use only Assuming $70M Placement Existing debt balance $84M Peak Senior Debt $45M Pro-forma Net Debt (24 Oct 2017) $129M Cash at bank 1 $19M Equity raising (pre-costs) $70M Cash funding of Peak Acquisition 2 ($31M) Peak working capital ($10M
Slide 11: Indicative Transaction Timetable
Indicative Transaction Timetable For personal use only Event Date Trading Halt: Announcement of Acquisition of Peak Mines Tuesday, 21 November 2017 Institutional placement bookbuild Tuesday, 21 November 2017 Announce placement details to ASX & Trading Halt lifted Wednesday, 22 November 2017 Settleme
Slide 12: Key Consolidated Metrics
For personal use only Key Consolidated Metrics 12
Slide 13: Aurelia Consolidated Resources & Reserves
Aurelia Consolidated Resources & Reserves Aurelia - Total Resources Gold Lead Zinc Silver Copper • 117% growth in Tonnes (kt) (g/t) (%) (%) (g/t) (%) Mineral Resource For personal use only Measured 605 3.0 2.8 4.0 24 N/A Indicated 1,729 3.0 2.3 3.4 16 N/A tonnes Inferred 599 1.9 3.2 4.6 46 N/A Hera
Slide 14: Delivering Growth for Shareholders
Delivering Growth for Shareholders Indicative post-acquisition metrics relative to Aurelia pre-acquisition 500% For personal use only 418% 400% 300% 250% 265% 200% 169% 100% 0% Enterprise value Gold reserve ounces FY19 Au production outlook Gold resource ounces ~$290M 419koz (gold only) 100-125koz (
Slide 15: Overview of Peak Mines
For personal use only Overview of Peak Mines 15
Slide 16: The Peak Mines Operations
The Peak Mines Operations • Peak is a series of polymetallic high grade ore bodies dominated by gold, copper and zinc For personal use only • Gold-rich ore sources in the Southern Corridor • Copper-rich ore sources in the Northern Corridor • Significant infrastructure already developed – replacement
Slide 17: Peak Mines - A 10km Corridor of High Grade Mines
Peak Mines - A 10km Corridor of High Grade Mines • A tier-1 mining operation in a premier gold and base metals district • A continuous and highly profitable mining history of more than 25 years For personal use only • Over 2.8Moz gold and 215Mlbs copper produced • Mining from two underground mines c
Slide 18: A Large Cobar Footprint
A Large Cobar Footprint • Aurelia will acquire 100% interest in licences covering 1,050km2 in the Cobar Gold Fields For personal use only • Licences extend north-south over a 100km trend of prospective ground along the eastern margin of the Cobar Basin 18
Slide 19: A Strong Production History
A Strong Production History • Peak has averaged over 100kozpa gold and 8.6Mlbs copper production since commissioning in 1992 For personal use only o Over 2.8Moz gold produced o Over 213Mlbs copper produced o History of reserve replacement • 2016 production of 107koz Au and 15Mlbs of copper at AISC o
Slide 20: Peak Mines - Infrastructure
Peak Mines - Infrastructure For personal use only Peak Mines 750,000tpa processing facilities 20
Slide 21: Peak Mines - Infrastructure
Peak Mines - Infrastructure Peak Development Perseverance Development For personal use only Southern Mine Corridor – Mine Development Infrastructure 21
Slide 22: Peak Mines - Infrastructure
Peak Mines - Infrastructure New Cobar and Jubilee Development Chesney Development For personal use only Northern Mine Corridor – Mine Development Infrastructure 22
Slide 23: Opportunities to Unlock Value - Operations
Opportunities to Unlock Value - Operations Improved Productivity • Opportunities identified to reduce operating costs with improved productivity For personal use only Accelerate Chronos • Accelerated processing of high grade Pb-Zn ore from Chronos, accessible through Pb/Zn Zone existing mine develop
Slide 24: Opportunities to Unlock Value – Near Mine Upside
Opportunities to Unlock Value – Near Mine Upside • Potential for further discovery of high grade mineralisation For personal use only • Chronos: A 500m section from the current orebody to the surface is underexplored • Great Cobar: High grade lead-zinc discovered at Anjea lens in the footwall 24
Slide 25: Investment Summary
For personal use only Investment Summary 25
Slide 26: Investment Summary
Investment Summary Consolidation of Cobar Basin Assets: Aurelia will become a major gold and base metals producer in the Cobar Basin For personal use only Complimentary Operations: Offering ability to leverage off Aurelia’s operating experience with a number of opportunities to reduce costs at Peak
Slide 27: Contact Details
CONTACT DETAILS Aurelia Metals Limited For personal use only www.aureliametals.com.au Suite 5 Level 2 60-62 McNamara Street Orange NSW 27
Slide 28: Appendices
For personal use only Appendices 28
Slide 29: Appendix 1: Foreign Selling Restrictions
Appendix 1: Foreign Selling Restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this For personal use only document may not be distributed to an
Slide 30: Appendix 1: Foreign Selling Restrictions
Appendix 1: Foreign Selling Restrictions The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the New Shares purchased pursuant to this document (other than (a) a "Canadian financial institution" o
Slide 31: Appendix 1: Foreign Selling Restrictions
Appendix 1: Foreign Selling Restrictions No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely
Slide 32: Appendix 1: Foreign Selling Restrictions
Appendix 1: Foreign Selling Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading For personal use only facility in Switzerland. This document has been prepared without r
Slide 33: Appendix 2: AMI Capital Structure
Appendix 2: AMI Capital Structure Current 12 Month Share Price History For personal use only $0.30 15,000,000 Shares on Issue 430.9m Volume AMI Share Price 13,000,000 $0.25 Options on Issue A 10.0m 11,000,000 Performance Rights 6.6m $0.20 Share Price ($A) 9,000,000 Volume Market Capitalisation ($A)
Slide 34: Appendix 3: Hera Operating Statistics
Appendix 3: Hera Operating Statistics For personal use only 34
Slide 35: Appendix 4: Peak Mines Operating Results
Appendix 4: Peak Mines Operating Results CY16A CY17A CY17 New Gold (9mths to Sept 17) Guidance For personal use only Tonnes mined 000 tonnes 755 408 Tonnes processed 000 tonnes 736 468 Gold grade g/t 4.82 5.00 Gold recovery % 93.3% 93% Gold production Koz 107.4 68.8 85 – 95 Copper grade % 1.03% 1.00
Slide 36: Appendix 5: Peak Mines Infrastructure
Appendix 5: Peak Mines Infrastructure • Replacement cost of plant & infrastructure A$390M (including c$60M for underground mobile fleet) For personal use only • Mine infrastructure includes: o Underground crusher o Workshops o Pumping stations o Surface declines o 680 load station and conveyance o W
Slide 37: Appendix 6: Peak Mines – Process Flowsheet
Appendix 6: Peak Mines – Process Flowsheet For personal use only 37
Slide 38: Appendix 7: Board of Directors
Appendix 7: Board of Directors Cobb Johnstone – Chairman • Appointed to the Board in November 2016 • Mining engineer with extensive experience building and operating mines in Africa, Australia, Asia and South America. He held the position of Chief Operating Officer for African For personal use only
Slide 39: Appendix 8: Hera Reserves and Resources
Appendix 8: Hera Reserves and Resources For personal use only As disclosed in the 2017 Annual Report. 39
Slide 40: Appendix 9: Nymagee Resources
Appendix 9: Nymagee Resources For personal use only As disclosed in the 2017 Annual Report. 40
Slide 41: Appendix 10: Peak Mines – Reserves
Appendix 10: Peak Mines – Reserves Peak Mines Grade Contained For personal use only Gold Silver Copper Gold Silver Copper Proven and probable reserves Tonnes (g/t) (g/t) (%) (Koz) (Koz) (Mlbs) Perserverance 743 4.66 4.62 0.71% 111 110 12 Chronos 207 11.88 52.68 0.58% 79 351 3 Peak 56 4.35 7.69 0.55%
Slide 42: Appendix 11: Disclaimer Resources and Reserves
Appendix 11: Disclaimer Resources and Reserves The information in this document that relates to Hera's Mineral Resources and Ore Reserves is extracted from Aurelia's Annual Report released to the ASX on 30 October 2017 (the “Report”) and is available to view at www.asx.com.au. Aurelia confirms tha
Slide 43: Appendix 12: Key Risks
Appendix 12: Key Risks • There are various risks associated with investing in Aurelia, as with any stock market investment. This section sets out: • Existing business and operational risks for Aurelia – these risks are generally common to gold and copper operators in Australia including Peak Mines,
Slide 44: Existing business and operational risks for Aurelia
Existing business and operational risks for Aurelia Replacement of depleted Ore • Aurelia must continually replace reserves depleted by production to maintain production levels over the long term. Reserves can be Reserves replaced by expanding known ore bodies, locating new deposits or making acquis
Slide 45: Existing business and operational risks for Aurelia
Existing business and operational risks for Aurelia Regulatory risks • The operations of Aurelia are subject to various Federal, State and local laws and plans including those relating to mining, prospecting, development, permit and licence requirements, industrial relations, environment, land use,
Slide 46: Business and operational risks specific to Peak Mines
Business and operational risks specific to Peak Mines Chronos grade risk • Mineralisation of the Chronos deposit is known to be nuggety, as at Hera, and therefore subject to significant estimation risk. Aurelia is highly experienced at mining and assessing nuggety gold mineralisation such as Chronos
Slide 47: Risks specific to Aurelia’s proposed acquisition of Peak Mines
Risks specific to Aurelia’s proposed acquisition of Peak Mines Completion risk • There is no certainty that the acquisition will complete. Completion of the acquisition is subject to certain conditions, including: • receipt of Ministerial to the change in control and foreign acquisition of substanti
Slide 48: Risks specific to Aurelia’s proposed acquisition of Peak Mines
Risks specific to Aurelia’s proposed acquisition of Peak Mines Equity funding risk • The Placement is not underwritten and components of the Placement are subject to shareholder approval. • If Aurelia is unable to successfully raise the amount it requires under the Placement, including if certain in
Slide 49: Share investment risks
Share investment risks Share market conditions • Share market conditions may affect the value of Aurelia’s quoted shares regardless of Aurelia’s operating performance. Share market conditions are affected by many factors such as: For personal use only • general economic outlook; • introduction of ta
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