Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2021)
27 slides from Orion Minerals's investor presentation, Feb 15, 2021
Slide 1: Prieska & beyond: unlocking a world-class base metals province
For personal use only Bankable – Fully-Permitted – Ready to Build Prieska & beyond: unlocking a world-class base metals province Errol Smart, Managing Director and CEO | Investor Presentation February 2021 ASX/JSE: ORN PAGE
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion in such forward-looking statements; and materially affects the information for the Mineral Resource and Minerals Ltd and its subsidiaries (Orion or Company) and their • may include, among other things, statem
Slide 3: Orion Minerals Corporate Summary
For personal use only ORION MINERALS CORPORATE SUMMARY • Primary listing on the ASX • Secondary listing on Main Board of the Johannesburg Stock Capital structure summary Current Post Share Issue Exchange Shares on issue 1 3,414M 3,414M Current Post Share Significant shareholders Options on issue 234
Slide 4: Prieska and Okiep Copper Complex
For personal use only Prieska Okiep Copper Copper-Zinc Complex Project Two significant historic mines and tremendous exploration upside PAGE ASX/JSE: ORN
Slide 5: Prieska near-term, low-cost base metals mine
PRIESKA NEAR-TERM, LOW-COST BASE METALS MINE For personal use only THE OREBODY • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% 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 a
Slide 6: Cost profile: copper producers' cost curve
COST PROFILE: COPPER PRODUCERS’ COST CURVE For personal use only ALL-IN-SUSTAINING COST (AISC) PER POUND OF COPPER Prieska Project BFS (May 2020) long term forecast copper price assumed to be US¢303 per lb (real) Prieska Cu eq AiSC (¢/lb) Zn credit Prieska Annual Global Copper Production (‘000) • Lo
Slide 7: Prieska: reawakening a global VMS giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT For personal use only NW Hutchings Shaft SE Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Cross Section Long Section Refer ASX release 15 January 2019 PAGE 7 PAGE
Slide 8: Deep Sulphide – Exploration Potential
Deep Sulphide – Exploration Potential IN ADDITION: GEOPHYSICS SUPPORTS TARGETS FOR EXTENSIONS For personal use only Currently 5 targets identified by: • Historic intersections outside the current resource – Targets 1 and 4 • Thick intersections open along strike – Target 2 • Along strike of wide sto
Slide 9: Mine of the Future
MINE OF THE FUTURE For personal use only Implementing a modern operating philosophy (4IR enabled) can contribute to achieving quantum changes in key output parameters that are traditionally slow to improve or have regressed in the local mining industry, including: • Safety and health improvements •
Slide 10: Pathway targeting 2024 production
PATHWAY TARGETING 2024 PRODUCTION For personal use only EARLY WORKS CONSTRUCTION PHASE PRODUCTION 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 BULK POWER AND WATER SUPPLY Temporary Power Infrastructure - 15MVA 1 1 1 1 1 1 1 1 1 1 BF
Slide 11: Overview: targeted project financing
OVERVIEW: TARGETED PROJECT FINANCING For personal use only 15-25% Senior Debt Mezanine Debt 5-15% 50-60% Leases + Vendor Finance + Offtake Related 5--15% Equity (80% ORN: 20% BEE) PAGE 11 Refer ASX release 2 December 2019
Slide 12: Areachap exploration upside: under-explored belt
AREACHAP EXPLORATION UPSIDE: UNDER-EXPLORED BELT For personal use only Multiple Cu-Zn VMS and Ni-Cu intrusive targets within Orion’s mineral rights • Prieska Cu-Zn near mine open pit and underground targets with high grade intersections • Jacomynspan – Mining Right with potential for sulphide Ni-Cu-
Slide 13: Strong project economics + strong ESG
STRONG PROJECT ECONOMICS + STRONG ESG For personal use only Environmental, Social and Governance (ESG) responsibility embedded in our growth plans • Investing in district water and infrastructure development • Benefiting the communities • Focus on low carbon footprint business • Solar + Wind (plus h
Slide 14: A project significant to South Africa
A PROJECT SIGNIFICANT TO SOUTH AFRICA For personal use only STRONG GOVERNMENT SUPPORT AND RECOGNIZED BY OUR PEERS Orion Chairman Denis Waddell accepting the inaugural ESG Emerging Leader Award at the annual AAMEG Awards from Dr Muza Gondwe, AAMEG Judge – 5 November 2020. The award recognised Orion’s
Slide 15: Strategically positioned pivotal leadership role
STRATEGICALLY POSITIONED PIVOTAL LEADERSHIP ROLE For personal use only • Interest growing in the Region as a base/battery metals production hub • RSA government and development finance agencies considering economic stimulus packages to incentivise the sector and all upstream and down-stream business
Slide 16: OCC: a standout growth opportunity
OCC: A STANDOUT GROWTH OPPORTUNITY For personal use only • Exclusive option to acquire extensive mineral interests in the Okiep Copper Complex (OCC): • Historical production of +2Mt of copper • Maiden Resource 8.9Mt at 1.37% Cu, containing 122,000 tonnes Cu • Tremendous exploration upside Target • P
Slide 17: OCC: Project Areas
OCC: Project Areas For personal use only PAGE 17
Slide 18: Flat Mines early production opportunity
FLAT MINES EARLY PRODUCTION OPPORTUNITY For personal use only • Maiden Mineral Resource 8.9Mt at 1.37% Cu containing 122,000 tonnes copper1 • Decline in place with prepared stopes at -150m at Flat Mine North • Nearby services at operating Nama Copper Mill • Eight additional mineralised bodies drille
Slide 19: OCC: near term production potential
OCC: NEAR TERM PRODUCTION POTENTIAL For personal use only • SAFTA has applied for a Mining Right on Flat Mine • This was Metorex’s last producing section (Wheel Flat) when the central processing plant was closed • Mine records show ROM of 1.2 – 1.4% Cu until closure* PAGE 19 • Production stopes at 1
Slide 20: Fraser Range Australia IGO:ORN JV
FRASER RANGE AUSTRALIA IGO:ORN JV For personal use only n tio ir ec D nd Tre IGO: ORN PIKE LEG Mawson . Location of Pike Project (IGO: ORN JV) relative to Legend Mining’s recent Mawson Ni-Cu discovery. Pike Project • ORN 30% free-carried by IGO through to first Pre-Feasibility study • 2019 diamond d
Slide 21: Appendices
For personal use only Appendices ASX/JSE: ORN PAGE
Slide 22: Prieska Project BFS 2020: Executive Dashboard
PRIESKA PROJECT BFS 2020 : EXECUTIVE DASHBOARD For personal use only Key assumptions and Project Performance Parameters Price and FX Assumptions Unit Value Financial Performance Unit Value Unit Value NPV % Change -15% -10% -5% 0% +5% +10% +15% 0% Metal price - Cu USD/t 6,680 NPV (pre-tax) @8% discou
Slide 23: Okiep District: Industrial Era Production
Okiep District: Industrial Era Production For personal use only Newmont Goldfields Metorex • Produced 2.1Mt Cu from 121Mt RoM @ 1.9% Cu • Peaked at 2.4Mtpa ROM, mainly from underground mining • Ore sourced from 42 separate mines within the district Refer ASX release 2 February 2021 PAGE 23 • Consist
Slide 24: OCC: ownership changes coincided with Cu lows
OCC: OWNERSHIP CHANGES COINCIDED WITH CU LOWS For personal use only Copper Price $/ton (real) Mining ceases / stripped Newmont Goldfields Metorex Source: Mergence Capital PAGE 24
Slide 25: Board of Directors
BOARD OF DIRECTORS For personal use only Denis Waddell Errol Smart Alexander Haller Mark Palmer Godfrey Gomwe Tom Borman Chairman Managing Director & Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Denis is a Chartered Errol is a Ge
Slide 26: Senior Management
SENIOR MANAGEMENT For personal use only Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Chief Operating Officer Executive: Finance & Executive: Exploration Group Corporate Social Chief Executive Officer Com
Slide 27: For further information, contact
For personal use only For further information, contact: Orion Minerals Limited Suite 617, 530 Little Collins Street Melbourne Vic 3000 Australia ASX/JSE: ORN Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au PAGE
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