Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Shareholder Meeting (November 2015)
23 slides from Aurelia Metals's shareholder meeting presentation, Nov 30, 2015
Slide 1: Annual General Meeting 30 November 2015
For personal use only ANNUAL GENERAL MEETING 30 NOVEMBER 2015 1
Slide 2: 2015: An Extremely Challenging Year
2015 AN EXTREMELY CHALLENGING YEAR For personal use only OPERATIONAL CHALLENGES LEADING TO UNDERPERFORMANCE OF THE HERA PROJECT • High Process and Maintenance Costs • Low metal recoveries, particularly gold • Hera Resource revision DISPUTE WITH GLENCORE • AMI seeking a restructure of its liabilities
Slide 3: 2016: A Pathway Forward
2016 A PATHWAY FORWARD SOLID TURNAROUND IN HERA PROJECT PERFORMANCE For personal use only • Hera cash positive: $5.0m EBITDA in September quarter • Lead and zinc recoveries at design • Continuing improvement in gold recoveries • Substantial positive gold reconciliation SETTLEMENT AND FUNDING AGREEME
Slide 4: Glencore Settlement: Agreement Reached
GLENCORE SETTLEMENT SETTLEMENT AND FUNDING AGREEMENT REACHED WITH GLENCORE For personal use only The Agreement highlights are: • All legal disputes with Glencore are settled • All existing debt repayments are deferred for at least two years • All interest is suspended on the current and new senior f
Slide 5: Glencore Settlement: Agreement Reached
GLENCORE SETTLEMENT SETTLEMENT AND FUNDING AGREEMENT REACHED WITH GLENCORE For personal use only 5
Slide 6: Glencore Settlement: Conditions Precedent
GLENCORE SETTLEMENT For personal use only SETTLEMENT AND FUNDING AGREEMENT REACHED WITH GLENCORE The Agreement is subject to a number of condition precedents, including: • Completion of final documentation • Aurelia shareholder approval (March 2016) • A commitment not to draw down on the Pacific Roa
Slide 7: Financial Performance
FINANCIAL PERFORMANCE • For personal use only June 15 Quarter EBITDA: -$5.7m • Sept 15 Quarter EBITDA: +$5.0m • Hera Project Cashflow Positive • FY15 – Full year Loss of $118m driven by impairment of mining and exploration assets 7
Slide 8: Hera Project
For personal use only HERA PROJECT 8
Slide 9: Hera Project: Highlights and Challenges
HERA PROJECT HIGHLIGHTS AND CHALLENGES HIGHLIGHTS For personal use only • Hera Construction completed on time and budget – Sept 2014 • Strong exploration results north and south of Hera • Much improved process plant stability – Plant availability in October >90% • Lead and Zinc Recoveries both >90%
Slide 10: Hera Turnaround Has Started: Gold Recovery
HERA PROJECT TURNAROUND HAS STARTED GOLD RECOVERY For personal use only • Improvement trend established Hera Project Au Recovery (%) 90 80 70 Au Recovery (%) 60 50 40 30 20 10 - Av FY15 Jul'15 Aug'15 Sep'15 Oct'15 10
Slide 11: Hera Turnaround Has Started: Gold Production
HERA PROJECT TURNAROUND HAS STARTED GOLD PRODUCTION For personal use only • Improvement trend established Hera Project Au production (Oz) 3,750 3,500 3,250 3,000 2,750 Au production (Oz) 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 - Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 11
Slide 12: Hera Turnaround Has Started: Lead and Zinc Recovery
HERA PROJECT TURNAROUND HAS STARTED LEAD AND ZINC RECOVERY For personal use only • Continuing strong lead recovery • Zinc recovery now back to design Hera Project Zn Recovery (%) 100 90 80 70 Zn Recovery (%) 60 50 40 30 20 10 - Av FY15 Jul'15 Aug'15 Sep'15 Oct'15 12
Slide 13: Reconciliation to the Revised Resource
HERA PROJECT RECONCILIATION TO THE REVISED RESOURCE For personal use only • The revised July 2015 Resource under calling gold grades and over calling zinc grades • Updated Resource model now being developed July August September October Predicted gold grade (g/t) 2.82 3.36 3.24 3.51 Reconciled gold
Slide 14: Hera Project: Expansion Study
HERA PROJECT EXPANSION STUDY For personal use only • Hera Expansion Study completed to increase production rate from 350ktpa to 450ktpa • A five year mine life using the July 2015 Resource assuming no additional exploration success • Average annual gold production of 40,000 oz • An All-in Sustaining
Slide 15: Hera Gold-Lead-Zinc Deposit: Exploration Potential
HERA GOLD-LEAD-ZINC DEPOSIT EXPLORATION POTENTIAL PEAK GOLD MINES COBAR HERA DEPOSIT For personal use only SCHEMATIC LONG SECTION SCHEMATIC LONG SECTION Hera: 2.44Mt @ 4.1g/t Au, 6.6% Pb+Zn Western Lead Zinc 0.9Mt @ 6.8g/t Au, 2% Pb+Zn 500m Peak (pre-mining) 5.2Mt @ 9.1g/t Au, 0.8% Cu POTENTIAL? 100
Slide 16: Nymagee Copper Deposit: Open to North and at Depth
NYMAGEE COPPER DEPOSIT OPEN TO NORTH AND AT DEPTH – NYMAGEE LONG SECTION • Deep drilling at For personal use only Nymagee confirms continuity of copper mineralisation >700m • Nymagee North mineralisation increasing intensity with depth • Multiple untested DHEM conductor 2 targets at depth 1 3 16
Slide 17: Summary
SUMMARY For personal use only SUMMARY 2015 a difficult year, however a clear path has been established for 2016: • Turnaround trends at Hera established • Hera project cash flow positive • Legal and financial uncertainty resolved • Funding secured for Hera rectification • Exploration upside remains
Slide 18: A Clear Path Ahead for 2016
For personal use only A CLEAR PATH AHEAD FOR 2016 ASX:AMI 2 Corporation Place ORANGE NSW 2800 T: +61 2 6363 5200 E: office@aureliametals.com www.aureliametals.com 18
Slide 19: Appendix 1: Resources and Reserves
APPENDIX 1: RESOURCES AND RESERVES For personal use only MINERAL RESOURCES ESTIMATE - HERA JULY 2015 Category Tonnes NSR ($/t) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) Measured 658,000 277.9 5.14 15.59 0.24 2.96 3.40 Indicated 958,000 220.0 3.37 17.97 0.15 3.02 4.51 Inferred 890,000 224.9 2.37 73.91 0
Slide 20: Appendix 2: Board of Directors
APPENDIX 2: BOARD OF DIRECTORS For personal use only Partner of PricewaterhouseCoopers Australia (Coopers & Lybrand) for 19 years specialising in the Anthony Wehby provision of corporate finance advice. Anthony is based in Sydney and maintains a consulting practice Non-Executive Chairman providing a
Slide 21: Appendix 3: Competent Persons Statements
APPENDIX 3: COMPETENT PERSONS STATEMENTS Competent Persons Statement – Exploration Results For personal use only The information in this report that relates to Exploration Results is based on information compiled by Rimas Kairaitis, who is a Member of the Australasian Institute of Mining and Metallu
Slide 22: Appendix 4: Competent Persons Statements
APPENDIX 4: COMPETENT PERSONS STATEMENTS For personal use only Cautionary Statement – Scoping Study and production targets The scoping study (Hera Expansion Study) referred to in this presentation is based on low level technical and economic assessments, and is insufficient to support an estimation
Slide 23: Appendix 5: Glencore Settlement and Funding Agreement
APPENDIX 5: GLENCORE SETTLEMENT AND FUNDING AGREEMENT • Amortisation payments and interest on Facilities A, B, C and E are suspended for 24 months, subject to an upside For personal use only payment mechanism • Glencore to provide an additional A$20m Secured Converting Loan (ASCL) on the same terms