Genesis Minerals Limited · ASX:GMD
Genesis Minerals — Merger or Acquisition (August 2022)
28 slides from Genesis Minerals's merger presentation, Aug 1, 2022
Slide 1: The First Step: Merger with Dacian Gold
For personal use only THE FIRST STEP Merger with Dacian Gold ASX GOLD COMPANY 1st AUGUST 2022 Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer
Disclaimer Important: You must read the following before continuing. The following notice and disclaimer apply to this presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Pre
Slide 3: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements Some statements in this report regarding estimates or future events are forward looking statements. They include indications of, and guidance on, future matters. Forward looking statements include, but are not limited to, statements preceded by words such as “pl
Slide 4: Corporate overview
Corporate overview* Key metrics (ASX:GMD) Board Sub header example Non-Executive Chairman Tommy McKeith Shares on issue 335m For personal use only Share price A$1.38 Managing Director Raleigh Finlayson Non-Executive Director Michael Bowen Market cap A$462m Non-Executive Director Gerry Kaczmarek Cash
Slide 5: Purpose, vision and core values
Purpose, vision and core values Purpose For personal use only The Australian gold company most respected for its people, partnerships and performance Vision The premium Australian gold miner - Sustainable, high quality, +300koz pa Core values Our Core Values drive our culture and leadership 5
Slide 6: Five-year strategy - Plan on a page
Five-year strategy - Plan on a page PEOPLE AND ORGANIC VISION DISCOVERY M&A For personal use only CULTURE GROWTH “The premium Australian Our Core Values drive our Skilled, committed and stable Management KPI’s drive Discipline first - Track record gold miner - Sustainable, culture and leadership geo
Slide 7: Five-year strategy - M&A
Five-year strategy - M&A Regional backdrop - Leonora District: Mill capacity more than doubled For personal use only • Long and rich history, multiple players, many mills 25 • Long milling: 20 District capacity expanded from ~10 to 25Mtpa in 8 years Further expansions slated towards 30Mtpa KOTH
Slide 8: Overview - Merger and equity raisings
Overview - Merger and equity raisings Recommended off-market takeover bid to acquire Dacian (DCN) for 100% scrip consideration (Offer) For personal use only Under the Offer, Dacian shareholders to receive 0.0843 Genesis (GMD) shares for each DCN share they hold, representing a premium to Dacian
Slide 9: A sensible first step
A sensible first step Exclusive focus on the +65Moz Leonora District: For personal use only • Creates the central Leonora player with 4.2 Moz1 Resources and growing • Natural pairing of Genesis’ organic growth and high-grade Ulysses project with Dacian’s large-scale mill and exploration upside • Mt
Slide 10: The natural Leonora consolidation
The natural Leonora consolidation Exclusive focus on the world-class Leonora District: For personal use only • Genesis continues to evaluate numerous regional opportunities, and discussions with St Barbara (SBM) have recommenced and are ongoing • Consolidation offers the potential to create an entit
Slide 11: On strategy
On strategy Transaction is consistent with Genesis’ vision and five-year strategy: For personal use only PROJECT MINING AND GEOLOGY AND COSTS / COMMODITY JURISDICTION SCALE VISION M&A STAGE METALLURGY MINE LIFE FINANCIAL Gold Prioritise Advanced >100koz pa Open pit Eastern Target “first “The premium
Slide 12: A genuine win-win
A genuine win-win Benefits to both sets of shareholders: For personal use only • Accelerated development of GMD’s shovel-ready Ulysses project • Consolidation into one corporate office in Perth1 • Upside potential from further consolidation of the Leonora District2 Benefits to Genesis shareholders:
Slide 13: ~A$150-160m capital saving with no additional operating cost
~A$150-160m capital saving… …with no additional operating cost1: For personal use only GMD ore Distance Mill options Milling cost3 G&A3 Haulage2 Total operating cost Capital cost ~100km Mt Morgans mill ~A$22/t ~A$3/t ~A$13/t ~A$38/t Nil Existing 2.9Mtpa Leonora Gold Project Resource 39.3Mt (Genesis)
Slide 14: Leadership and Governance
Leadership and Governance Combined Board and management, aligned with shareholders1: New team reflects the depth, experience and leadership of both Genesis and Dacian For personal use only New Board of Directors Intended Board 3:1:1 split between Genesis Genesis:Dacian:Independents2 Tony Kiernan
Slide 15: People and culture
People and culture PEOPLE AND • Small Company DNA - Everyone is important, everyone impacts value CULTURE For personal use only Our Core Values drive our • …but THINK BIG; building the capacity for further growth: culture and leadership Proven Leadership Career development opportunities; Multiple
Slide 16: Core values
Core values Alignment: For personal use only • Strong alignment across core values and commitments: DACIAN GENESIS Our Core Values drive our culture and leadership • Authentic approach to progressive ESG • Cultivate strong community ties centered around Leonora / Laverton 16
Slide 17: Significant re-rate potential
Significant re-rate potential EV / Resource (A$/oz) EV / Reserve (A$/oz) EV / Production (A$/oz) 0 100 200 300 0 200 400 600 800 1,000 0 2,000 4,000 6,000 8,000 10,000 For personal use only Capricorn Capricorn Capricorn Perseus "Aussie Leaders" Pantoro Gold Road Ramelius Gold Road "Aussie Leaders" W
Slide 18: Sensible regional consolidation
Sensible regional consolidation Dominant position in the prolific Leonora District1: For personal use only Leonora gold operations, Western Australia Leonora Resources 78Mt @ 1.7 g/t for 4.2Moz1 Reserves 2.4Mt @ 1.3 g/t for 101koz1,2 Projects Leonora (GMD), Mt Morgans (DCN) Mining method Underground
Slide 19: The plan
The plan Long life, +150koz pa base case1,2: For personal use only • Strategic review of Mt Morgans in December half 2022; potential outcomes include: Process stockpiles, followed by care and maintenance Regional consolidation / operation synergies = Keep milling Re-start mining post a more ac
Slide 20: Natural pairing of Dacian's large-scale mill
Natural pairing of Dacian’s large-scale mill… Strategic asset in Leonora ~2.9Mtpa processing plant: • Commissioned March 2018; strategic review in FY23 For personal use only • A$172m of capital infrastructure (2016 - 2018)1 • Primary jaw crusher (design 400t per hour) • Coarse ore stockpile • Grindi
Slide 21: ...with Genesis' organic growth
…with Genesis’ organic growth ORGANIC • Current Resource 39Mt @ 1.6g/t for 2.0Moz (57% Measured and Indicated) GROWTH For personal use only • Sector leading Resource growth rate - 39% 3-year CAGR (v peers 17%)1 Management KPI’s drive sustainable growth: Total Mineral Resources - Genesis (Moz) Resour
Slide 22: Enter Ulysses
Enter Ulysses Strategic asset in Leonora - New high-grade shovel-ready mine: For personal use only • Shallow ore (from ~50m below surface) Ulysses - Long section • Long-hole open stoping, free milling • Mining Proposal / Works Approval granted • Open along strike and at depth • Next = “Future-proof”
Slide 23: Jupiter bulk mining opportunity
Jupiter bulk mining opportunity Time to grow, and apply owner-mining open pit model (adjacent to Mt Morgans mill)1: For personal use only • Brand Saracen - Unique approach to open pit mining: Technical Owner-operator Capital allocation 8-year track record of beating PRIORITY PRIORITY==“SADDL
Slide 24: Outstanding exploration upside
Outstanding exploration upside Multiple high-priority targets, including: For personal use only • Genesis’ Ulysses to Orient Well Corridor (>40km of highly prospective strike) • Dacian’s Southern Tenement Targets (12km strike), Cedar Island syenite stock1 • Plus Dacian’s +100m thick Callisto structu
Slide 25: Leonora - Robust due diligence
Leonora - Robust due diligence Industry-leading technical experts with significant Leonora-specific operational experience: For personal use only GMD management (ex-Saracen) Robust, independent MANAGEMENT Previously operated ~1/2 the mines in the Leonora District due diligence process Raleigh Finlay
Slide 26: Merger and equity raising - Timetable
Merger and equity raising - Timetable Indicative timetable: For personal use only Event Indicative Timing Settlement of Tranche 1 of the Capital Raising Complete Completion of the Dacian Placement Complete Lodgement of Genesis Bidder's Statement with ASIC and ASX 29 July 2022 Despatch of Genesis Bid
Slide 27: A sensible and rewarding first step
A sensible and rewarding first step • Compelling opportunity to create a leading mid-tier ASX gold producer For personal use only • Dominant position in the prolific Leonora District1 • High investor appetite for sensible regional consolidation • Natural pairing of Genesis’ organic growth and high-g
Slide 28: Contact Details
For personal use only Contact Details: Troy Irvin Corporate Development Officer phone: +61 8 9322 6178 email: investorrelations@genesisminerals.com.au www.genesisminerals.com.au
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