Aeris Resources Limited · ASX:AIS
Aeris Resources — Investor Presentation (November 2023)
50 slides from Aeris Resources's investor presentation, Nov 27, 2023
Slide 1: Capital Raising Presentation
Capital Raising Presentation Monday, 27 November 2023
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION AND DISCLAIMER This Investor Presentation is dated [insert] and has been prepared, approved and authorised for despatch by Aeris Resources Limited (“Aeris” or the “Company”). By attending an investor presentation or briefing, or accepting, accessing or reviewing this
Slide 3: Disclaimer
Disclaimer Investment risk All investments in securities are subject to known and unknown risks, including an investment in Aeris shares. Some of these risks are beyond the control of Aeris and its directors and officers, and Aeris does not guarantee any particular rate of return or level of perform
Slide 4: Disclaimer
Disclaimer Disclaimer Since this presentation is the Company’s document, to the maximum extent permitted by law, Aeris and the Joint Lead Managers (Bell Potter Securities Limited and Jefferies (Australia) Pty Ltd) (otherwise referred to as the ‘Underwriters’) and each of their respective related bod
Slide 5: Disclaimer: Mineral Resource and Ore Reserve Information
Disclaimer Mineral Resource and Ore Reserve Information This presentation contains Mineral Resource and Ore Reserve information which has been previously issued with the written consent of the Competent Person responsible for that information. This information and the Competent Person’s responsible
Slide 6: Contents
Contents 1. Overview 2. Asset Overview and Business Update Production Assets Development Assets Corporate Strategy 3. Capital Raising Details Appendices Appendix A – Resources and Reserves Appendix B – Risk Factors Appendix C – International Offer Restrictions Appendix D – Underwriting Agreement
Slide 7: Overview
Overview 2023 a transformational but challenging year with the platform set for 2024 and beyond 2023 overview 2024 onwards… ▪ Integration of the Round Oak business and commissioning two new mines at Tritton ✓ $30 million equity raising reduces balance sheet risk ▪ Operational challenges at Tritton a
Slide 8: Overview (cont.)
Overview (cont.) Fully underwritten $30 million capital raising Capital raising ▪ $30 million capital raising: ̶ Fully underwritten Placement and Entitlement Offer, comprising: • ~$13.9m Institutional Placement • 1 for 4.73, ~$16.2m Accelerated Non-Renounceable Entitlement Offer (‘ANREO’) ▪ Offer pr
Slide 9: Investment Highlights
Investment Highlights Copper focused production portfolio with high value development opportunities 1 Tier 1 located mining 2 Diversified production from three 3 Weighted to copper – Critical to portfolio operating assets electrification FY24 Cu eq. production guidance1 FY24 production guidance Nort
Slide 10: Tier 1 Located Mining Portfolio
1 Tier 1 Located Mining Portfolio Production Assets Development Projects Asset Tritton Cracow North Queensland Jaguar Stockman Ownership 100% 100% 100% 100% 100% Primary Copper / Gold Gold Copper / Gold Copper / Zinc Copper / Zinc commodity Mineral 371kt Cu @1.5% Cu 74kt Cu @ 2.2% Cu 97kt Cu @ 1.2%
Slide 11: Diversified Production From Three Operating Assets
2 Diversified Production From Three Operating Assets Tritton Cracow North Queensland Copper production (kt) Gold production (koz) Copper production (kt) 25 24 Aeris Aeris 23 acquisition acquisition 88 Copper production (kt) 19 17 74 19 54 48 48 10 38 7 8 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 12: Weighted to Copper – Critical to Electrification
3 Weighted to Copper – Critical to Electrification Renewable and EV thematic driving demand… …Limited copper exposure available from tier 1 jurisdictions2 Global 2020 copper demand1 (Mt) Global 2040 forecast copper demand1 (Mt) 2022 global copper mine production (Mt) Other countries 17% 1.3 Africa E
Slide 13: Set for Growth
4 Set for Growth FY23 was a year of transformation with FY24 expected to deliver on key milestones post the capital raising Last 12 months Next 12 months Longer term ▪ Round Oak integration ▪ Budgerygar and Avoca Tank ▪ Kurrajong, Budgery and South Wing ̶ North Queensland production increases Tritto
Slide 14: Strengthened Financial Position to Deliver 2024 Plan
5 Strengthened Financial Position to Deliver 2024 Plan Capital raising outcomes Post capital raising pro forma financial position Pre equity raise Post equity raise ✓Reduced balance sheet risk $21.9m1 $50.5m2 Cash Pro forma cash ✓Improve working capital flexibility $10.5m $18.1m3 Pro forma Net debt
Slide 15: Contents
Contents 1. Overview 2. Asset Overview and Business Update Production Assets Development Assets Corporate Strategy 3. Capital Raising Details Appendices Appendix A – Resources and Reserves Appendix B – Risk Factors Appendix C – International Offer Restrictions Appendix D – Underwriting Agreement
Slide 16: Production Assets
Production Assets
Slide 17: Tritton Copper Operation
Tritton Copper Operation Our cornerstone asset ▪ 100% owned, high grade underground copper mines located in central New South Wales – 430kt of copper produced since operations began in 2005 – 2,330km2 tenement package with more than 900kt of copper discovered since modern exploration commenced in th
Slide 18: Tritton Copper Operation (cont.)
Tritton Copper Operation (cont.) Where is Tritton going? Where we’ve come from 2024 Long term Tritton copper production (kt) Avoca Tank Murrawombie Pit ▪ High grade deposit accessed via a recently completed (Fully permitted, provides flexibility 2.5km decline extending from the old North East on tim
Slide 19: Tritton Copper Operation (cont.)
Tritton Copper Operation (cont.) Constellation – Potential future baseload ore feed for Tritton mill ▪ Located 45km northeast of the Tritton plant ▪ Mineral Resource of 6.7Mt at 1.9% Cu and 0.6g/t Au1 ▪ Recently completed drill program extended mineralisation 100m along strike and 200m down plunge,
Slide 20: Tritton Copper Operation (cont.)
Tritton Copper Operation (cont.) Strategically located in the Cobar region ▪ The Cobar region is one of the richest base metal regions in Australia with three major operating long-life mines: Operating mine – Tritton C&M / Exploration / deposit – CSA (Metals Acquisition Corp) Tritton tenement – Peak
Slide 21: Cracow
Cracow Mature, high grade gold mine ▪ Low-sulphidation epithermal underground gold mine located 500km northwest of Brisbane ▪ Conventional crush and grind CIP processing plant commissioned in 2004, having produced +1.5Moz since first production ▪ FY24 production guidance of 38 – 48koz Au ▪ Strong hi
Slide 22: North Queensland Copper
North Queensland Copper Harvesting cash from Mt Colin mine with potential follow-on development project at Barbara ▪ Mt Colin – High grade underground mine with a resource of 0.9Mt @ 2.7% Cu, 0.5g/t Au1 ▪ Contract mining and toll treated through a regional processing plant ▪ Potential new operation
Slide 23: Development Projects
Development Projects
Slide 24: Jaguar
Jaguar Brownfield copper / zinc focused restart opportunity ▪ High grade Mineral Resource 8.1Mt @ 1.2% Cu, 5.8% Zn, 0.4g/t Au and 68g/t Ag1 across 4 deposits: ̶ Bentley ̶ Jaguar ̶ Triumph ̶ Teutonic Bore ▪ Transitioned to care and maintenance in Q1 FY24 ▪ Progressing feasibility study to assess rest
Slide 25: Stockman
Stockman +10 year development project with primary permits in place ▪ High-grade, long life, Cu-Zn-Au-Ag development project ▪ Definitive Feasibility Study progressing – market update due Q2 FY24: ̶ Ore Reserve of 9.6Mt at 1.9% Cu, 4.3% Zn, 1.0g/t Au, 36g/t Ag1 ̶ Alternative proven processing flowsh
Slide 26: Corporate Strategy
Corporate Strategy
Slide 27: Build Resilience and Deliver on Operating Plans
Build Resilience and Deliver on Operating Plans Announced Operational delivery Capital structure review today Delivery of operating plans ▪ ▪ Refinancing of existing debt for Tritton, Cracow and Mt and bonding facilities Leading diversified Colin Explore structuring options for Capital raising ▪ bas
Slide 28: Key Takeaways
Key Takeaways Equity raising reduces balance sheet risk and provides improved financial flexibility Supported by Aeris’ largest shareholder, Washington H. Soul Pattinson FY24 guidance maintained from three operating mines Significant copper inventory, valuable mine extensions, development projects a
Slide 29: Contents
Contents 1. Overview 2. Asset Overview and Business Update Production Assets Development Assets Corporate Strategy 3. Capital Raising Details Appendices Appendix A – Resources and Reserves Appendix B – Risk Factors Appendix C – International Offer Restrictions Appendix D – Underwriting Agreement
Slide 30: Equity Raising Overview
Equity Raising Overview ▪ Fully underwritten $30m equity raising (‘Equity Raising’) via a: ̶ ~$13.9m Institutional Placement (‘Placement’) Equity Raising Size and Structure ̶ ~$16.2m, 1 for 4.73 pro-rata accelerated non-renounceable entitlement offer (‘Entitlement Offer’) to eligible shareholders ▪
Slide 31: Equity Raising Timetable
Equity Raising Timetable Event Date Trading Halt and Announcement of Equity Raising Monday, 27 November 2023 Placement bookbuild and Institutional Entitlement Offer opens Monday, 27 November 2023 Placement and Institutional Entitlement Offer closes Tuesday, 28 November 2023 Trading Halt lifted Wedne
Slide 32: Sources and Uses
Sources and Uses Sources $m Uses $m Gross proceeds of equity raising 30.0 General working capital 28.6 Fees 1.4 Total sources 30.0 Total uses 30.0 ▪ Gross proceeds of ~$30m via: ▪ Gross proceeds used for general working capital purposes and increased financial flexibility – ~$13.9m Institutional Pla
Slide 33: Contents
Contents 1. Overview 2. Strategic Asset Overview and Business Update 3. Capital Raising Details Appendices Appendix A – Group Ore Reserves and Mineral Resources Appendix B – Risk factors Appendix C – International Offer Restrictions Appendix D – Underwriting Agreement
Slide 34: Appendix A
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Slide 35: Group Ore Reserves
Group Ore Reserves PROJECT CATEGORY TONNES (‘000) GRADE CONTAINED METAL % Cu % Zn g/t Au g/t Ag kt Cu kt Zn koz Au koz Ag Tritton Proved 450 1.3 0.1 2.8 6 1 40 Probable 3,560 1.4 0.2 5.2 49 28 598 Total 4,010 1.4 0.2 4.9 55 30 638 Cracow Proved 230 3.7 27 Probable 360 3.5 41 Total 590 3.6 68 Jaguar
Slide 36: Group Mineral Resources
Group Mineral Resources PROJECT CATEGORY TONNES (‘000) GRADE CONTAINED METAL % Cu % Zn g/t Au g/t Ag kt Cu kt Zn koz Au koz Ag Tritton Measured 2,000 1.1 0.1 3.0 23 6 180 Indicated 10,920 1.3 0.3 3.7 147 95 1,301 Inferred 11,900 1.7 0.4 4.1 201 139 1,491 Total 24,820 1.5 0.3 3.8 371 240 2,972 Cracow
Slide 37: Appendix B
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Slide 38: Risk Factors
Risk Factors Introduction ▪ There are risks involved with participating in the Offer and holding Shares in Aeris Resources Limited (the “Company”, “Aeris”, "we" or "us"). Certain of these risks are specific to an investment in the Company and others are specific to investing in and holding securitie
Slide 39: Risk Factors (cont.)
Risk Factors (cont.) Exchange rate risk A number of the Company’s commercial arrangements, including copper sale arrangements and finance arrangements, are based on US dollars. The Company also acquires equipment from overseas using foreign currency. Accordingly, the revenues, earnings, costs, expen
Slide 40: Risk Factors (cont.)
Risk Factors (cont.) Share market risk The market price of listed securities can be expected to rise and fall in accordance with general market conditions and factors specifically affecting the Australian resources sector and exploration companies in particular. The New Shares carry no guarantee in
Slide 41: Risk Factors (cont.)
Risk Factors (cont.) Acquisition risk The Company’s growth plans include growth by acquisition which, among other things, requires the availability of appropriate and suitable acquisition targets and the Company being able to successfully negotiate the acquisition of those targets. There is no guara
Slide 42: Risk Factors (cont.)
Risk Factors (cont.) Business risks There are risks inherent in doing business, such as unexpected changes in regulatory requirements, trade barriers, longer payment cycles, problems in collecting accounts receivable, network and infrastructure issues, natural disasters, and potentially adverse tax
Slide 43: Risk Factors (cont.)
Risk Factors (cont.) Employees The ability of the Company to achieve its objectives depends on being able to retain certain key employees, skilled operators and tradespeople. Whilst the Company has entered into employment contracts with key employees, the retention of their services cannot be guaran
Slide 44: Risk Factors (cont.)
Risk Factors (cont.) Native title and heritage risk The Native Title Act 1993 (Cth) recognises certain rights of indigenous Australians over land where those rights have not been extinguished. These rights, where they exist, may impact on the ability of the Company to carry out exploration and in fu
Slide 45: Appendix C
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Slide 46: International Offer 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 document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 47: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materia
Slide 48: Appendix D
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Slide 49: Underwriting Agreement
Underwriting Agreement Jefferies (Australia) Pty Ltd (ABN 76 623 059 898) and Bell Potter Securities Limited (ABN 25 006 390 772)(Underwriters) are acting as Joint Lead Managers and underwriters to the Offer. Aeris has entered into an Underwriting Agreement in respect of the Offer to which only the
Slide 50: Underwriting Agreement (cont.)
Underwriting Agreement (cont.) 23. the Company breaches the Underwriting Agreement (including any representation or warranty) or a representation or warranty becomes misleading or deceptive or not true or correct; 24. certain information provided by or on behalf of the Company to the Underwriters in
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