Metals X Limited · ASX:MLX
Metals X — Investor Presentation (June 2020)
36 slides from Metals X's investor presentation, Jun 23, 2020
Slide 1: Australia's Premier Tin Producer
AUSTRALIA’S PREMIER TIN PRODUCER Focus on increasing resources, reserves and margins CORPORATE PRESENTATION – JUNE 2020 ASX: MLX
Slide 2: Cautionary Statement & Disclaimer
Cautionary Statement & Disclaimer This Presentation has been prepared by Metals X Limited (“Metals X”, “MLX” or the “Company”). GENERAL DISCLAIMER This Presentation contains summary information about the Company’s activities current as at the date of this Presentation. The information in this Presen
Slide 3: A Focused Strategy to Deliver Shareholder Value
A Focused Strategy to Deliver Shareholder Value Refreshed focus on operational and financial discipline Renison 2020 Life of Mine Plan1 completed, confirming 10-year Life-of-Mine $50 - 55 million capex for Area 51 development funded through operating cash flow Tin Production ramp up from ~ 8,5
Slide 4: Renison (50%) - A World Class Tin Operation
Renison (50%) - A World Class Tin Operation High grade Area 5 increases Life-of-Mine, delivers sustained strong margins • Area 51: Life-of-Mine Financials2 • Ore Reserve: 3.3 Mt @ 1.87% Sn for 61,900 t Sn Tin-in-concentrate 98,000 tonnes • Capital cost of $50 - 55 million (ventilation raise, backfil
Slide 5: Nifty Open Pit – Long Life Copper Development
Nifty Open Pit – Long Life Copper Development Low capital, near term development with existing infrastructure • Open Pit Scoping Study key details1: Scoping Study – Combined Open Pit & Heap Leach3 • 10-year mine life, producing 262,000 tonnes of Copper production 306,000 tonnes copper-in-concentrate
Slide 6: Paterson Exploration – Outstanding Opportunities
Paterson Exploration – Outstanding Opportunities Accelerated exploration through $32M Farm-In & JV with IGO Limited • Large & highly prospective ground holding in the Paterson Province, adjacent to ready-to-go Nifty processing infrastructure • Recent RioTinto Winu and Newcrest Havieron Cu-Au discove
Slide 7: Enhancing Value & Building Long-Term
Enhancing Value & Building Long-Term Strong future cashflow from high value and high margin projects • Renison Tin Operation1: • 2020 Life of Mine Plan confirms 10-year Life-of-Mine Nifty underground operations suspended Nifty Open Pit Scoping Study • Area 5 investment funded through operating cash
Slide 8: Corporate Overview
Corporate Overview Capital Structure Current Board & Management Shares on issue 907,266,067 Executive Chairman – Patrick O’Connor • Experienced independent Non-Executive Director and Chief Executive Officer Share price (as at 19 June 2020) A$0.081 • Previously a Chairman of Perilya Ltd , CEO for Oce
Slide 9: Renison Tin – 50% MLX
BLU AP ESTONE amnvival = RENISON TIN - 50% MLX
Slide 10: Tin Price Driven by Technology Demand
Tin Price Driven by Technology Demand • Renewable energy, new technology and the rapidly evolving battery industry to drive future tin demand • Tin in solder (main application as desired lead-free, non- toxic solder) forecast to track electronics growth of 5% pa Renison well positioned on cost curve
Slide 11: Renison High Grade Area 5 Lifts Tin Production
Renison High Grade Area 5 Lifts Tin Production • High grade Area 5 Ore Reserve: 3.3 Mt @ 1.87% Sn for 61,700 t Sn1: • ~ 40% of contained tin in Life-of-Mine • Initial stope mining has commenced and will ramp up over two years • Continuation of Open Stope mining with cemented backfill • Key capital i
Slide 12: Life of Mine Plan Production Areas
Life of Mine Plan Production Areas Mineral Resource: 18.55 Mt @ 1.57% Sn for 291,600t Sn1 Ore Reserve: 8.61 Mt @ 1.40% Sn for 120,300 t Sn1 Renison Long Section showing Life-of-Mine Production Areas2,3 1. ASX announcement: 17 June 2020, 2020 Renison Resource & Reserve Update 2. ASX announcement: 17
Slide 13: Life of Mine Delivers 10,000 tpa Tin in FY25
Life of Mine Delivers 10,000 tpa Tin in FY25 • 2020 Life-of-Mine confirms 10-year mine life1: Annual tin production (‘000 tpa Sn) Annual Feed Grade (% Sn) 15.0 1.75% • High grade Area 5 underpins increase in mined grades 12.5 • Production ramps up from ~ 8,500 - 10,000 tpa tin in 5 years 10.0 1.50%
Slide 14: Exploration Potential to Further Increase Mine Life
Exploration Potential to Further Increase Mine Life • Despite >100 years of mining history the deposit remains open in three directions • Comprehensive resource extension targeting completed, with platform development and drilling built into the LOM • Strong commitment to ongoing discovery with $36
Slide 15: Opportunities for Step Change in Tin Production
Opportunities for Step Change in Tin Production Thermal Upgrade Project • Process change to produce a low-grade tin concentrate that is upgraded via a Tin Fumer to a high-grade tin concentrate with 68 - 70% Sn (currently ~57%) • A step change in Sn recovery of approximately 10 - 15% with an overall
Slide 16: Surface Exploration and Regional Opportunities
Surface Exploration and Regional Opportunities 400000 10km Mt Bischoff Renison Surface Exploration Cleveland • Under-explored 45 km2 Mining Lease • Near-mine targets prioritised for 5400000 planned combination of down-hole electromagnetic (DHEM) geophysics and lithogeochemistry program Mt Lindsay Re
Slide 17: Paterson Copper
POS ge ees ery Bs gh wee ate PATERSON COPPER
Slide 18: Nifty Open Pit – Rapid Brownfields Development
Nifty Open Pit – Rapid Brownfields Development Nifty Copper Operations Open Pit1 Nifty Copper Operations showing historic open pit, base case open pit and site infrastructure1 Nifty Copper Operations Concentrator 1. ASX announcement: 11 June 2020, Nifty Scoping Study Identifies Long Life Open Pit wi
Slide 19: Nifty Open Pit and Sulphide Processing
Nifty Open Pit and Sulphide Processing • Nifty Scoping Study1 confirmed economic benefits of Mined (mtpa) Waste: Ore Ratio expansion of historic open pit: • 10-year mine life, mining 23 Mt @ 1.24% Cu for 262,000 t of copper-in-concentrate • Traditional excavator – truck open pit operation with oppor
Slide 20: Nifty Oxide and Heap Leach Opportunity
Nifty Oxide and Heap Leach Opportunity • Nifty Scoping Study1 confirmed economic benefits of recommissioning heap leach and SX/EW facility: Scoping Study – Heap Leach & SX/EW2 • 2.6 Mt @ 0.9% Cu oxide ore from the open pit AISC per pound Cu US$1.60 – 1.91/lb • Reprocessing 13 - 14 million tonnes fro
Slide 21: Open Pit Resource Definition Opportunities
Open Pit Resource Definition Opportunities • 2019 Mineral Resource used for Open Pit Scoping Study: • 2020 MRE: 39.66 Mt at 1.51% Cu for 598,500 tonnes of Cu1 • 2020 MRE contains ~ 50 kt extra copper compared to 2019 MRE based on over 30 km of underground resource drilling that has driven the Scopin
Slide 22: Maroochydore Copper Oxide Project
Maroochydore Copper Oxide Project • Substantial Oxide and Sulphide Mineral Resource of over 400,000 tonnes of copper1: • Oxide Resource: 43.2 Mt @ 0.91% Cu for 394,000 tonnes of copper2 • Advances in metallurgy offers potential to overcome issues with high acid consumption: • Development of technica
Slide 23: Paterson Province Exploration
Paterson Province Exploration • Large & highly prospective ground holding adjacent to ready-to-go processing infrastructure • Recent RioTinto Winu and Newcrest Havieron Cu-Au discoveries highlight province potential • MLX control ~2,800 km2 of the Paterson Province – tenure is highly prospective for
Slide 24: Wingellina Nickel - Cobalt
WINGELLINA NICKEL - COBALT
Slide 25: Wingellina Nickel – Cobalt Project
Wingellina Nickel – Cobalt Project Australian Lateritic Nickel Projects – Equivalent Nickel Bubble Chart • A tier-one, long life, high-grade project with strong economics and approvals in place Wingellina High Grade Co Domains • Underpinned by 1.9 Mt of contained nickel Wingellina and 154,000 t of c
Slide 26: Appendix
Appendix 2019 Resource Definition Drilling at Wingellina 26
Slide 27: Mineral Resources (Nifty Copper Operation)
Mineral Resources (Nifty Copper Operation) Nifty Copper Operation – Mineral Resource Statement (31 December 20194,5) Mineral Resource Grade Copper Deposit Mt2 Category1 % Cu tonnes2 Measured 25.09 1.70 426,700 Indicated 7.46 1.32 98,400 Nifty Sulphide3 Inferred 7.10 1.03 73,400 Total 39.66 1.51 598,
Slide 28: Mineral Resources (Maroochydore Copper Project)
Mineral Resources (Maroochydore Copper Project) Maroochydore Copper Project – Mineral Resource Statement (31 March 2016) Mineral Resource Grade Copper Grade Cobalt Deposit Mt1 Category % Cu tonnes2 % Co tonnes2 Measured - - - - - Indicated 40.80 0.92 375,000 388 15,800 Oxide3 Inferred 2.40 0.81 19,0
Slide 29: Mineral Resources & Ore Reserves (Renison Tin Operation)
Mineral Resources & Ore Reserves (Renison Tin Operation) Renison Tin Operation - Mineral Resource Statement (31 March 2020) Renison Tin Operation - Ore Reserve Statement (31 March 2020) (MLX Share is 50%) (MLX Share is 50%) Mineral Ore ‘000 Grade Tin Grade Copper Ore Grade Tin Grade Copper Deposit R
Slide 30: Mineral Resources & Ore Reserves (Central Musgrave)
Mineral Resources & Ore Reserves (Central Musgrave) Central Musgrave Project - Mineral Resource Statement (30 June 2016) Central Musgrave Project - Ore Reserve Statement (30 June 2016) 30
Slide 31: Competent Persons' Statements
Competent Persons’ Statements Acceptance By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation you acknowledge and agree to the terms set out in the Cautionary Statement and Disclaimer. JORC Compliance Statement - Competent Persons Statements The i
Slide 32: Competent Persons' Statements
Competent Persons’ Statements Competent Person Statement – Renison Tin Operation - Ore Reserve The information in this announcement relating to the Ore Reserves of the Renison Tin Operations has been extracted from Metals X’s announcement released on 17 June 2020 and is available to view at http://w
Slide 33: Competent Persons' Statements
Competent Persons’ Statements Competent Person Statement – Central Musgrave Project (Wingellina) - Mineral Resources The information in this announcement that relates to Mineral Resources for the Central Musgrave Project has been extracted from Metals X’s Annual Mineral Resources and Ore Reserves St
Slide 34: Nifty Open Pit Scoping Study Cautionary Statement
Nifty Open Pit Scoping Study Cautionary Statement The Nifty Copper Open P it Scoping Study (the Study or the P ro je ct) referred to in this presentation was reported in ASX announcement Nifty Scoping Study Identifies Long Life Open Pit with Positive Economics and accompanying Study on 11 June 2020.
Slide 35: Renison Area 5 Study and LOM Cautionary Statement
Renison Area 5 Study and LOM Cautionary Statement The Area 5 Mining Optimisation Study (the Area 5 Study) for the Renison Tin Operation (Renison) referred to in this presentation was reported in ASX announcement Renison Area 5 Underpins 10 Year Mine Life and Increased Tin Production on 17 June 2020.
Slide 36: Metals X is moving forward with a renewed focus and commitment to shareholder value.
Metals X is moving forward with a renewed focus and commitment to shareholder value. We have formalised this with a new look for the Company and a fresh modern logo. The concept of using a stylised X with the green arrow shows we are moving forward and represents our commitment to clean mining, whil