Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Non-Deal Roadshow (November 2023)
26 slides from Lunnon Metals's roadshow presentation, Nov 21, 2023
Slide 1: Investor Roadshow Presentation announcement
21 November 2023 INVESTOR ROADSHOW PRESENTATION Lunnon Metals Limited (ASX:LM8) is pleased to announce that Managing Director, Edmund Ainscough and Chief Financial Officer, Hayden Bartrop, will be presenting to a range of investors and shareholders over the coming week. For personal use only A copy
Slide 2: Investor Roadshow
✓ This slide is 100% editable. Investor Roadshow For personal use only Adapt it to your needs and capture your audience’s attention. ✓ This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. Melbourne-Sydney Edmund Ainscough Hayden Bartrop November 2023
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer 2 This Presentation has been prepared by employees of Lunnon Metals Ltd (“Lunnon”, “LM8” or “the Company”) on its behalf and is a summary only, and contains summary information about Lunnon and its activities, which is current as at the date of this Presentation (unless
Slide 4: Target Audiences
Target Audiences Nickel Sulphides For personal use only After 57 years & Kambalda ^ 1.6Mt nickel mined … …is the best Discovery still to be Values Client found? Sprint Capacity ^ kt Ni metal mined sourced from historical WMC production records plus sum of production from relevant ASX company announc
Slide 5: Strategic Ownership of Critical Energy Transition Metal
Strategic Ownership of Critical Energy Transition Metal 4 N Mt Keith Ops Emerging recognition of For personal use only Cosmos Leinster Ni Ops strategic value of Ni sulphides 100km Laverton BHP Wyloo Leonora WSA, OZL and now MCR IGO POS LM8 Black Swan all acquired Ni conc. Kal. Ni smelter Kalgoorlie
Slide 6: Filling the Void: Next "go to" Australian nickel play
Filling the Void: Next “go to” Australian nickel play 5 Market Capitalisation of ASX Nickel Companies – 17/11/23 * 3, 364 Premium location in Kambalda For personal use only 2,500 High grade nickel sulphides Nickel Consolidation – Uncontracted nickel supply^ 2,000 OZ Minerals (West Musgrave), Western
Slide 7: Strategic Position – Prolific Kambalda Nickel Belt
Strategic Position – Prolific Kambalda Nickel Belt 6 N Kambalda renowned for: • High-grade, high-quality concentrate For personal use only 10km • Low deleterious elements eg. arsenic • High Fe:MgO ratios desired by smelters • 1.6Mt nickel mined to date^ Kambalda LM8 only ASX listed exposure nickel b
Slide 8: Unrivalled: Kambalda Nickel District
Unrivalled: Kambalda Nickel District 7 Past Nickel Production^: >440,000t nickel metal mined^ after Pre-WMC sale vs Total Life of Mine to date exit by WMC use only 4.3% 4.1% IGO – Long Shaft 3.9% 342 203 25% of all metal mined 3.7% MCR – Widgie/Nth Kamb For personal 3.5% Ni % 3.3% PAN – Lanfranchi 4
Slide 9: Kambalda Dome: "Land of the Giants"
Kambalda Dome: “Land of the Giants” 8 Northern area mined ~continuously for >50 years For personal use only (now part of Wyloo) Significant production gap between north & south Southern – mines closed over 35 years ago, >10 years before WMC’s exit Dormant inside Gold Fields for close to 20 years ^ k
Slide 10: Silver Lake: Long South Gap
Silver Lake : Long South Gap 9 Kambalda nickel channels For personal use only famous for their long plunge extent Long South “Gap” is… • Down plunge of one of Kambalda’s great mines – Long Shaft, and • >340kt Ni metal^ mined from Long & Victor channels • In one of Australia’s most prolific nickel be
Slide 11: Silver Lake: Long South Gap – first drill program wrapped up
Silver Lake : Long South Gap – first drill program wrapped up 10 Thick succession April 2023 of Kambalda For personal use only Komatiite Significant shear/fault recorded Elevated key pathfinder *Important Note Cautionary Statement ratio* The Company highlights that this is a ratio and the pXRF readi
Slide 12: Baker-Foster: 2.9Mt @ 3.1%Ni (87,800t Ni)
Baker-Foster: 2.9Mt @ 3.1%Ni (87,800t Ni)* 11 Significant existing infrastructure = low capital cost For personal use only Discovery success ✓ >70km drilling to date ✓ Baker deposit: discovery to Ore Reserve in under 2 years ✓ 48,800t* Ni metal added De-risking ▪ Existing Mining Leases, minimal rema
Slide 13: Baker Pre-Feasibility Study Highlights
1 Baker Pre-Feasibility Study Highlights 12 • Robust project economics – Pre-tax NPV8 of $164M, Free cash flow of $196M, and 324% IRR2 For personal use only • Initial Probable Ore Reserve of 612kt averaging 2.86% for 17.5kt contained nickel3 • Low pre-production capex of $18.6M, maximum cash draw of
Slide 14: Baker PFS: Unique "Sprint Capacity"
Baker PFS: Unique “Sprint Capacity” 13 Pre-Production Capex: $18.6M Payback: 0.7 Years For personal use only Free Cash Flow NPV8 PFS area Pre-tax: $196M Pre-tax: $164M Post tax: $145M Post tax: $121M Operating Costs Premium Conc. C1: $279/t Ore Mined Grade: 14.6% Ni AISC: $340/t Ore Mined Fe:MgO rat
Slide 15: Surface Infrastructure and pre-development
Surface Infrastructure and pre-development 14 EXTENSIVE EXISTING INFRASTRUCTURE • Waste and RoM pads from West Idough Pit For personal use only • Access and Haul roads • Powerlines (11kv) • Dewatering corridor • Mine offices & workshop • Fuel storage facility • Ablutions etc ADVANCED PROJECT APPROVA
Slide 16: News Flow
News Flow 15 1. 85H MRE update with metallurgical DD holes 2. East Trough first-time MRE For personal use only 3. Silver Lake Hanging Wall first-time MRE 4. Foster #40-#60 surfaces first-time MRE 5. Foster South MRE update with metallurgical DD holes 6. Fisher Historical Core Program first-time MRE
Slide 17: Kambalda's Amazing Potential
Kambalda’s Amazing Potential 16 Kambalda, still a World-Class Ni province ✓ Globally significant nickel camp For personal use only ✓ Unrivalled record of discovery ✓ Excellent local infrastructure & services ✓ Nickel supply chain certainty in Tier One jurisdiction Right assets, right location ✓ 4 hi
Slide 18: Appendices
✓ This slide is 100% editable. For personal use only Adapt it to your needs and capture your audience’s attention. ✓ This slide is 100% editable. Appendices Adapt it to your needs and capture your audience’s attention.
Slide 19: Lunnon Metals Overview
Lunnon Metals Overview 18 Liam Twigger Non-Executive Chair Edmund Ainscough Managing Director Corporate structure (ASX: LM8) close on 17 Nov 2023 only 217.1m $0.70 ~$152m For personal useBoard Ian Junk Deborah Lord Shares on issue Market cap Share price Non-Executive Director Non-Executive Director
Slide 20: Important Notice – Competent Persons Statement
Important Notice 19 T h e i n f o r m a t i o n i n t h i s r e p o r t t h a t r e l a t e s t o n i c k e l a n d g o l d g e o l o g y , n i c k e l M i n e r a l R e s o u r c e s , E xp l o r a t i o n T a r g e t a n d Competent Persons E xp l o r a t i o n R e s u l t s , i s b a s e d o n ,
Slide 21: Mineral Resources and Ore Reserves Reporting
Mineral Resources and Ore Reserves Reporting 20 This presentation contains references to Lunnon’s Ore Reserves and Mineral Resources, which are shown in a detailed breakdown below. Mineral Resources* as at 30 June 2023 Cut-off Indicated Ni Inferred Ni Total Ni For personal use only (Ni %) Tonnes % N
Slide 22: Baker PFS Key Financial Assumptions
Baker PFS Key Financial Assumptions 21 Spot Price or Current Rate Assumption Unit Assumption Value (as at 18 May 23) For personal use only Nickel Price1 US$/t 24,000 21,334 Copper Price1 US$/t 7,500 8,302 Cobalt Price1 US$/t 40,000 34,930 Platinum Price1 US$/oz 850 988 Palladium Price1 US$/oz 1,250
Slide 23: Major Operating Costs
Major Operating MAJOR Costs OPERATING COSTS 22 FIRST PRINCIPLES, BENCHMARK & RFQ* APPROACH Unit Cost Total LOM Unit Cost For personal use only Item (A$/lb Ni contained A$ Million (A$/t Ore Mined) in concentrate)1 Mining 131.2 214 3.73 Processing (including Surface Haulage)2 46.1 75 1.31 General & Ad
Slide 24: PFS Financial Outcomes
PFS FINANCIAL PFS Financial Outcomes # OUTCOMES# 23 140,000 160,000 Measure Unit Outcome 120,000 140,000 Nickel Contained in Concentrate Ni t 15,970 120,000 For personal use only 100,000 Average Ni Sold Per Annum t Ni pa 4,100 Post tax Free Cash Flow (A$M) Cumulative Con Production (t) 100,000 Gross
Slide 25: Prior ASX Announcements
Prior ASX Announcements 24 This presentation contains references to Lunnon’s Exploration Results and previous announcements. The information in this presentation that relates to previous Exploration Results has been extracted from the following Lunnon ASX announcements, where full details including
Slide 26: Detailed Peer Data
Detailed Peer Data 25 Market Closing Shares on Jurisdiction of Capitalisation Price on Company ASX Code Nickel Type Development Stage Issue Source of shares on issue# Assets ($M) 17/11/23 For personal use only (B) (A x B) (A) Nickel Industries Limited NIC Indonesia Nickel Laterite Operational 3,364