Kaiser Reef Ltd · ASX:KAU
Kaiser Reef — Merger or Acquisition (March 2025)
49 slides from Kaiser Reef's merger presentation, Mar 24, 2025
Slide 1: Transformational Acquisition of the Henty Gold Mine
For personal use only Transformational Acquisition of the Henty Gold Mine Acquisition & Equity Raise Presentation ASX: KAU NOT FOR RELEASE TO U.S. WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Disclaimer
Disclaimer This presentation is confidential and may not be reproduced, redistributed or passed on, directly or indirectly. This presentation has been prepared by Kaiser Reef Limited “Kaiser” (ASX: KAU). This document contains background information about Kaiser current For personal use only as at t
Slide 3: Transaction snapshot
Transaction snapshot (1) Creation of a multi-asset +30kozpa gold producer with clear path to organically double production For personal use only (2) Inheriting Henty in its strongest position for over a decade (3) Attractive upfront purchase price - EV/Production of <$1,200/oz; <12 month payback fro
Slide 4: Our team – the right skillsets
Our team – the right skillsets Brad Valiukas to become Executive Director – Operations with a dedicated focus on the continued strong performance of Henty together with the delivery of identified operational upside For personal use only Brad Valiukas to become Director, Operations Key Management of
Slide 5: Pro forma Kaiser
Pro forma Kaiser The acquisition of Henty creates a multi-asset, high-grade gold producer in Victoria & Tasmania For personal use only Pro Forma Snapshot Pro forma Production (FY24)(6) 33koz Victoria Bendigo Pro forma Market Capitalisation: $83.1m Maldon Plant Maldon Mine 200ktpa CIL Pro forma Cash
Slide 6: I. Henty Acquisition
For personal use only I. Henty Acquisition 6
Slide 7: Henty – at a glance
Henty – at a glance High-grade, existing infrastructure, profitable, mine life, exploration upside – all ingredients for success For personal use only At a glance … ✓ FY24 production of 25koz Au at an AISC of $2,876/oz (1) ✓ $9.5M of implied operating cash flow in Dec’24(3) ✓ Mineral Resources of 44
Slide 8: Henty – attractive acquisition terms
Henty – attractive acquisition terms $32M upfront purchase price, rapid payback and long-term partnership established with Catalyst For personal use only Acquisition Terms *Upfront cash consideration to be funded • $31.6M upfront consideration, comprising $15.0M upfront cash* via $30M in firm commit
Slide 9: Henty – strongest position in over a decade
Henty – strongest position in over a decade Henty is a proven mine and prolific geological system that has been re-invigorated under Catalyst’s ownership For personal use only Very profitable Limited Re-investment & 1 operation, owned by 2 Exploration & 3 Catalyst 4 Future with Kaiser Majors Investm
Slide 10: Henty – set up for success
Henty – set up for success Kaiser to capitalise on Catalyst’s investments & initiatives that have set Henty up for long-term success Significant Resource & Reserve growth (since 2020)(1) … Stabilised production & cost base … expanding margins For personal use only Gold Sold (LHS) Realised Gold Price
Slide 11: Henty – production optimisation
Henty – production optimisation Initial due diligence has identified a clear strategy to optimise mining and increase productivity 1 Increase development rates Underground Development Target (m) For personal use only ▪ Streamline jumbo fleet ▪ Target 600m / month from two development jumbos, up from
Slide 12: Henty – cost optimisation
Henty – cost optimisation Increase processing throughput, leveraging mining productivity 1 Increase processing capacity For personal use only ▪ SAG mill automation planned – productivity increase +10-15% ▪ Additional processing throughput increases targeting >400ktpa 2 Transition the underground to
Slide 13: Henty – exploration upside
Henty – exploration upside Prolific geological system – historical production of 1.4Moz @ 8.9g/t – remains open For personal use only ✓ Zone 96 and Cradle Zone provide the opportunity to extend mine life within The Darwin Zone has produced over 655koz of the current footprint gold at 8.4g/t, over on
Slide 14: Henty – regional exploration
Henty – regional exploration • Historical drilling didn’t target area of interest Henty Fault • Underground development completed by Catalyst to allow new drill platform to target area • 1000m surface hole underway Mineral Resource For personal use only • Area of interest lies along mineralised corr
Slide 15: II. Victorian Gold Assets
For personal use only II. Victorian Gold Assets 15
Slide 16: Maldon Victoria – prolific high-grade tenure
Maldon Victoria – prolific high-grade tenure Fully permitted and situated on granted mining leases. Ready for mining recommencement Over 4km of highly prospective strike located just ~4km from Kaiser’s operating ~200ktpa CIP plant For personal use only Existing 2.4km long 5.5m x 5.5m decline –
Slide 17: Maldon (Union Hill) – clear path to grow ounces
Maldon (Union Hill) – clear path to grow ounces Little-to-no exploration drilling for over a decade (previous owners were balance sheet constrained) Systematic underground drill program planned to grow resource and define mining inventory (initial focus on Union Hill) For personal use only Min
Slide 18: Maldon Victoria – existing processing plant
Maldon Victoria – existing processing plant A strategic operating ~200ktpa CIP processing plant and ancillary infrastructure in Victoria For personal use only A key piece of infrastructure for future Victorian goldfields consolidation ~200ktpa CIP gold processing plant located ~4km from Maldon a
Slide 19: A1 Mine – positioned for growth
A1 Mine Long Section A1 Mine – positioned for growth Looking West Following a period of heavy capital investment, the A1 Mine is in its strongest position for the last 40 years For personal use only A1 has historically been restricted to remnant mining which has constrained productivity and produc
Slide 20: III. Transaction Overview
For personal use only III. Transaction Overview 20
Slide 21: Henty acquisition overview
Henty acquisition overview Kaiser to acquire the Henty Gold Mine Acquisition of 100% of the tenements comprising the Henty Gold Mine (Henty or the Project) currently owned by Catalyst Metals Limited (Catalyst) (Acquisition) For personal use only Henty Gold Mine Asset Upfront consideration of $31
Slide 22: Equity capital raising overview
Equity capital raising overview Firm commitments received for $30.0M via a two-tranche Placement For personal use only Kaiser has received firm commitments to raise approximately $30.0 million via a two-tranche placement through the issue of approximately 214.3 million fully paid ordinary shares (
Slide 23: Sources and Uses
Sources and Uses $23M in surplus working capital to support identified growth initiatives For personal use only Sources of Funds $m Existing Cash(1) 2.2 Proceeds from Placement 30.0 Proceeds from Auramet Funding(2) 10.0 Total Sources 42.2 Use of Funds $m Acquisition Upfront Consideration 15.0 Costs
Slide 24: Pro forma capital structure
Pro forma capital structure For personal use only Pro Forma Kaiser Capital Structure Units Current Kaiser Henty Acquisition Auramet Funding Placement (@ Offer Price)(1) Share price / Offer price $/share $0.17 $0.14 $0.14 No. of ordinary shares m 260.6 118.6 214.3 593.5 Market capitalisation / Offer
Slide 25: Indicative timetable
Indicative timetable For personal use only Event Date Announcement of Placement and Acquisition Monday, 24 March 2025 Trading halt lifted and recommencement of trading Monday, 24 March 2025 Settlement of New Shares issued under Tranche 1 of the Placement Friday, 28 March 2025 Allotment, quotation an
Slide 26: Appendix A. Supporting Information
For personal use only Appendix A. Supporting Information 26
Slide 27: Henty – asset overview
Henty – asset overview Henty is a well-established underground gold mine located within a mineral rich province in West Coast Tasmania Location ~23kms from Queenstown, West Coast Tasmania, Australia For personal use only Ownership 100% 3 MLs and 2 ELs(3) covering 81km2 Tenement Package All r
Slide 28: Henty – excellent infrastructure
Henty – excellent infrastructure Significant infrastructure (+A100M replacement value) and excellent local workforce ✓ 300ktpa SAG Mill feeding a For personal use only conventional CIL circuit ✓ Skilled local workforce of +150 employees (~23kms from Queenstown) ✓ 22kV grid power supply (TasNetworks)
Slide 29: Appendix B. Summary of Transaction Documents
For personal use only Appendix B. Summary of Transaction Documents 29
Slide 30: Auramet Facility Summary
Auramet Facility Summary $8.0M Gold Loan and $2.0M Prepayment (Working Capital) Facility Facility Amount $2,000,000 For personal use only Kaiser has agreed to sell to Auramet 100% of the gold or other precious metal produced by the Project beginning on the date the Acquisition has completed and
Slide 31: Share Sale Agreement Summary
Share Sale Agreement Summary Acquisition Structure Kaiser agrees to acquire all shares in Unity Mining Pty Limited (Unity Mining), which holds all of the issued shares in Henty Gold Pty Ltd, from Catalyst Unity Mining is to be acquired for: For personal use only $15.0 million in upfront cash consi
Slide 32: Option Deed Summary
Option Deed Summary Parties Catalyst and Kaiser Operation Pty Ltd, a wholly owned subsidiary of Kaiser, (Kaiser Operations) (the Parties) Kaiser Operations has agreed to grant Catalyst an exclusive option to acquire 50% of the issued share capital of a special purpose vehicle (VictoriaCo) for a
Slide 33: Victoria Joint Venture Summary
Victoria Joint Venture Summary On and from the Exercise Date of the Option Deed, the Parties to the Option Deed will: (a) agree the form of an Asset Sale Agreement for Kaiser Operations to sell the Processing Assets to VictoriaCo for a nominal consideration of $1.00 (subject to requisite consents
Slide 34: Appendix C. JORC Resources & Reserves
For personal use only Appendix C. JORC Resources & Reserves 34
Slide 35: Kaiser Resource & Reserve Statement
Kaiser Resource & Reserve Statement JORC (2012) Mineral Resource Estimate Indicated Inferred Total Mineral Resource For personal use only Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (Mt) (g/t Au) (koz) (Mt) (g/t Au) (koz) (Mt) (g/t Au) (koz) Union Hill(1) - - - 1.3 4.4 187 1.3 4.4 18
Slide 36: Competent Person's Statements
Competent Person’s Statements JORC Code It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (“JORC Code”). Investors out
Slide 37: Appendix D. Key Risks
For personal use only Appendix D. Key Risks 37
Slide 38: Key risks
Key risks There are various risks associated with investing in Kaiser, as with any stock market investment. This section sets out: ▪ risks specific to the Acquisition and the Placement; ▪ existing business and operational risks for Kaiser – these risks are generally common to gold exploration and op
Slide 39: Key risks (cont.)
Key risks (cont.) ▪ Kaiser has performed certain technical, financial, tax and legal due diligence on Henty. There is a risk that due diligence conducted has not identified issues that would have been material to the decision to enter into the Acquisition. A material adverse issue which was not iden
Slide 40: Key risks (cont.)
Key risks (cont.) ▪ Operation and exploration may from time to time be hampered on occasions by unforeseen operating risks, as would any other industry. For example, force majeure XX events, power outages, critical equipment or pipe failures, and environmental hazards such as noise, odours, hazardou
Slide 41: Key risks (cont.)
Key risks (cont.) ▪ The availability and rights to explore and produce precious metals, as well as operational profitability generally, can be affected by changes in government policy that XX are beyond the control of Kaiser. ▪ The governments of the relevant States and Territories in which Kaiser h
Slide 42: Key risks (cont.)
Key risks (cont.) XX ▪ Kaiser’s ability to efficiently conduct its operations in a number of respects depends upon third party product and service providers and contracts. Accordingly, in some circumstances, contractual arrangements have been entered into by Kaiser and its subsidiaries. As in any co
Slide 43: Key risks (cont.)
Key risks (cont.) XX ▪ The Company’s projects are subject to laws and regulations in relation to environmental matters. As a result, there is the risk that the Company may incur liability Environmental risks under these laws and regulations. The Company intends to comply with applicable laws and reg
Slide 44: Appendix E. International Offer Restrictions
For personal use only Appendix E. International Offer Restrictions 44
Slide 45: 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 46: International Offer Restrictions (Cont.)
International Offer Restrictions (Cont.) European Union (excluding Austria) This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in
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: International Offer Restrictions (Cont.)
International Offer Restrictions (Cont.) United Arab Emirates This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares have been
Slide 49: Thank you
For personal use only Thank you For further information: Jonathan Downes Managing Director admin@kaiserreef.com.au • Make sure to follow Kaiser Reef on our socials: ASX:KAU | 49 49