Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (August 2023)
26 slides from Orion Minerals's investor presentation, August 2023
Slide 1: Investor Presentation August 2023
Errol Smart / Managing Director and CEO PAGE Presentation / August 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion Minerals expenditures, mineral reserves and mineral resources and • do not make any representation or warranty, express or Ltd and its subsidiaries (Orion or Company) and their activities and is anticipated grades and recovery rat
Slide 3: Focus on Two Highly Prospective South African Base Metal Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN BASE METAL DISTRICTS BROWNFIELDS SUCCESS BEING FOLLOWED BY GREENFIELDS EXPLORATION 450km Orion Okiep Copper Projects Orion Areachap Projects Refer ASX/JSE releases 2 February 2021 and 2 August 2021 PAGE 3
Slide 4: Company Snapshot
COMPANY SNAPSHOT Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 5,647M Tembo Capital (EU/Netherlands) 19.2 Options on issue 3.8B Delphi Group (EU/Germany) 13.4 Cash on hand 2 AUD7.6M Clover Alloys (SA) (South Africa) 7.9 IDC Shareholder Loan 3 AUD2.8M Othe
Slide 5: Prieska Copper Zinc Mine (PCZM)
PRIESKA COPPER ZINC MINE (PCZM) PAGE 5
Slide 6: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS 1,250m 31Mt @ 1.2% Cu, 3.6% Zn 2.6km PAGE 6 Refer ASX/JSE releases 15 January 2019 and 25 July 2023
Slide 7: Prieska (PCZM) Copper Zinc Project (70% Owned)
PRIESKA (PCZM) COPPER ZINC PROJECT (70% OWNED) The orebody • Globally significant VMS Resource: 31Mt @ 1.2% Cu, 3.6% Zn • Increased Mineral Reserve: 14.5Mt @ 1.1% Cu and 3.2% Zn Foundation phase as per BFS-20 outcomes • Initial 12-year, 2.4Mtpa operation, targeting 22ktpa Cu and 70ktpa Zn • Life-of-
Slide 8: Key Challenges for Orion with PCZM BFS-20
KEY CHALLENGES FOR ORION WITH PCZM BFS-20 • High capital, long lead-time project o Can we bring forward production and reduce funding? • Skills / Development Team? o Orion is proven as an explorer and study team – but where are the mining team and experience? • Dewatering o What are alternatives to
Slide 9: Revised Project Development Strategy: Project '23
REVISED PROJECT DEVELOPMENT STRATEGY PROJECT ’23 – STARTING SMALL TO GROW BIG • STRATEGY o Address perceived high-risk elements of plan to reduce cost of funding o Prove up and implement a low peak funding business plan o Investigate opportunity for early production o Retain ability to rapidly scale
Slide 10: Total Funding Secured to Advance Prieska
TOTAL FUNDING SECURED TO ADVANCE PRIESKA • IDC Convertible Instrument (ZAR 250m) AUD 20 million • Triple Flag (Early Funding) AUD 10 million • Triple Flag Au-Ag Stream (USD 80m) AUD 117 million Total PCZM Ringfenced Finance* AUD 147 million Orion Equity Raise Completed AUD 13 million “In the Money”
Slide 11: Shallow Mineral Resources – Early Mining Targets
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS • Shallow Mining Plan aims to target mining from the open pit, remnant pillars, while dewatering underway • Feasibility studies due for completion late 2023 • Stream Finance and early funding initial drawdown completed (~A$13.8M), providing funding to
Slide 12: +105m Block – Early Mining Target
+105m BLOCK - EARLY MINING TARGET PAGE 12 Refer ASX/JSE release 25 July 2023
Slide 13: +105m Underground Mining Layout
+105m UNDERGROUND MINING LAYOUT Conceptual Layout of +105 Resource Drift & Fill Mining PAGE 13 Refer ASX/JSE release 25 July 2023
Slide 14: +105m Trial Mining
+105m TRIAL MINING PAGE 14 Refer ASX/JSE release 25 July 2023
Slide 15: OCP Projects
OCP Projects PAGE 15
Slide 16: Okiep Copper Project (OCP) (56%-100% Ownership)
OKIEP COPPER PROJECT (OCP) (56%-100% OWNERSHIP) • Exercised option to acquire and applying for additional prospecting rights in the Okiep Copper Complex (OCC): o Historical production of +2Mt of copper o Non-JORC resource ex-Goldfields of 52Mt @ 1.3% o JORC Mineral Resource of 11.5Mt at 1.4% Cu, con
Slide 17: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES • Mineralised intrusive bodies intrude structures aligned in east- west trending structural corridors • 25% of mineralised corridors hidden under thin surface cover • Modern geophysics expected to assist in detecting mineralisation underneath the thin cover • Ori
Slide 18: Historical Ownership Changes Coincided with Cu Price Lows
OCC HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS Copper Price $/ton (real) Mining ceases / mine infrastructure stripped Newmont Goldfields Metorex Source: Peter Major Mergence Capital PAGE 18
Slide 19: NOM – Flat Mines 2021 Scoping Study Indicated Robust Economics
NOM – FLAT MINES 2021 SCOPING STUDY INDICATED ROBUST ECONOMICS FOR INITIAL “PILOT” MINING • Industrial Development Corporation (IDC) to be our project partners • Foundation phase is modelled for 12 years o Concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust
Slide 20: JMP Project
JMP Project PAGE 20
Slide 21: Enormous Exploration Upside
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT Multiple Cu-Zn VMS and Ni-Cu-Co intrusive targets within Orion’s mineral rights • Jacomynspan – Mining Right with potential for sulphide Ni-Cu- PGE-Au open pit & shallow underground mining Jacomynspan • Several h
Slide 22: Raw Materials Critical to Electric Vehicle Production
RAW MATERIALS CRITICAL TO ELECTRIC VEHICLE PRODUCTION The Jacomynspan (JMP) Mining Right Area has mineral deposits that can potentially supply 13 metals and materials of the 24 that are critical to battery electric vehicle production, cleaner combustion & energy transition. Extracted from: Mercedes-
Slide 23: Jacomynspan (Ownership 50% ORN : 37% African Nickel)
JACOMYNSPAN (OWNERSHIP 50% ORN : 37% AFRICAN NICKEL) POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER Executed Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex Investigating innovative proprietary technology to recover Battery Metals and high-value Battery Precursor Products – a value game ch
Slide 24: Combining Proven Chloro and Carbonyl Metal Vapour Process Technologies
COMBINING PROVEN CHLORO AND CARBONYL METAL VAPOUR PROCESS TECHNOLOGIES “MVT” TO PRODUCE CRITICAL METAL PRODUCTS Tronox – A super scale user of Chloro - MVT United Kingdom Netherlands Australia Saudi Arabia Germany Copper Cliff, Canada Clydach, Wales Source: Stratega Metals Vale is the worldwide lead
Slide 25: Stratega – TCM MVT Solution
STRATEGA – TCM MVT SOLUTION* • Treating higher metallurgical recovery – lower grade concentrates (Maximises value extraction of ore deposit) • Enables >90% metal recovery to concentrate • Recovery of >95% of all metals from sulphide concentrates with premium sales value as precursor product • Produc
Slide 26: For further information, contact: Orion Minerals Limited
Orion Minerals Limited Level 21, 55 Collins Street Melbourne Vic 3000 Australia For further information, contact: Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au ASX/JSE: ORN PAGE 26