Orion Minerals Limited · ASX:ORN
Orion Minerals — RRS Summer Series Investor Conferences 2019
28 slides from Orion Minerals's conference presentation, Feb 14, 2019
Slide 1: Preparing for Prieska
ASX/JSE: ORN ASX/JSE: ORN Preparing for Prieska Developing a 21st century African zinc-copper mine PAGE Errol Smart, Managing Director and CEO | RRS Summer Series Investor Conferences 12-14 February 2019
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion Minerals • may include, among other things, statements regarding bodies corporate and affiliates and their officers, employees, agents, Ltd and its subsidiaries (Orion or Company) and their activities and is targets, estimates and
Slide 3: Overview: A New Generation African Base Metal Mine Developer
OVERVIEW: A NEW GENERATION AFRICAN BASE METAL MINE DEVELOPER • Fast-tracking development of the Prieska Zinc-Copper Project, Northern Cape • Robust 10-year, Phase 1 Project outlined by December 2018 Scoping Study • Bankable Feasibility Study on track for Q2 2019; Final Investment Decision 2H 2019 •
Slide 4: Corporate Structure
CORPORATE STRUCTURE Capital structure summary Primary listing on the ASX Shares on issue 1,874M Secondary listing on Main Board of the Johannesburg Stock Exchange Options on issue 209M Market capitalisation (2.3cps (ASX))1 $43M Significant shareholders % Loan facility ($3.6M facility, 2.6cps convert
Slide 5: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT • Located in Northern Cape Province, 270km south-west of regional capital, Kimberley • Established mining region, yet least populous region of South Africa • Historically mined by AngloVaal (1971-1991) Skorpion/ • Recorded historical production of 1Mt of Zn an
Slide 6: Prieska: Developing a New Mine in the Footprint of an Old One
PRIESKA: DEVELOPING A NEW MINE IN THE FOOTPRINT OF AN OLD ONE • Ability to leverage off extensive infrastructure already in place: • Primary shafts and underground decline roadways • Sealed access roads, 48km via bitumen road to existing rail siding • 175MW operational solar power plants with expans
Slide 7: Prieska: Deep Sulphide Resource Strong Foundation for Development
PRIESKA: DEEP SULPHIDE RESOURCE STRONG FOUNDATION FOR DEVELOPMENT • Deep Sulphide Mineral Resource of +105m Level Resource 28.7Mt @ 3.8% Zn and 1.2% Cu containing 1.08Mt Zn & 0.33Mt Cu (based on drilling results to 31 Oct 2018)* • Indicated Mineral Resource of 18.51Mt @ 3.6% Zn and 1.2% Cu provides
Slide 8: Prieska Scoping Study Confirms Robust Phase 1, 10-Year Project
PRIESKA SCOPING STUDY CONFIRMS ROBUST PHASE 1, 10-YEAR PROJECT • 2.4Mtpa operation producing ~70-80ktpa Zn and 22ktpa Cu in concentrates • 43% all-in-sustaining margin, with all-in-unit costs A$1,701/t (US$1,215/t) zinc equivalent metal sold • Estimated A$130m annual free cash flow after-tax at stea
Slide 9: Prieska: Timeline to Development
PRIESKA: TIMELINE TO DEVELOPMENT 1 2 3 Complete Prieska Project BFS Expand and upgrade Execute exploration program on highly Prieska Project resource prospective prospecting rights • Updated Deep Sulphide Resource and Scoping Study completed December 2018 • In parallel to BFS, Orion will progress ke
Slide 10: Community Engagement Doing It Right From the Start
COMMUNITY ENGAGEMENT DOING IT RIGHT FROM THE START Our communities are at the heart of our corporate responsibility activities. Some of the initiatives we have already undertaken include: • MoU with Siyathemba Local Municipality to cooperate on key community development initiatives: • Water infrastr
Slide 11: A Dominant Land-Holding in an Under-Explored Belt
A DOMINANT LAND-HOLDING IN AN UNDER-EXPLORED BELT • Highly prospective yet under-explored mineral province • 22 identified VMS occurrences historically confirmed by major mining houses • Reputed to have the highest concentration of zinc on the African continent1: • Large-scale sediment-hosted deposi
Slide 12: Major Consolidation Play in a Proven Mineral District
MAJOR CONSOLIDATION PLAY IN A PROVEN MINERAL DISTRICT • Large consolidated land package secured by Orion in 2015 – 1,790km2 • Consolidated under single owner for first time • No major exploration activity for past 30 years • Application of modern exploration techniques presents significant opportuni
Slide 13: Potential to Define a Major New VMS Camp
POTENTIAL TO DEFINE A MAJOR NEW VMS CAMP • Emerging VMS discovery at Ayoba, 5.3km SW of Prieska, confirms outstanding near-mine potential • First hole intersected: • 9.5m of massive sulphides grading 0.93% Zn and 0.63% Cu including 1.5m @ 4.98% Zn and 0.89% Cu* • 7.13m @ 1.44% Zn and 0.66% Cu* • Min
Slide 14: South Africa: A Changing Mining Landscape
SOUTH AFRICA: A CHANGING MINING LANDSCAPE • Despite turmoil in 2017, the rule of law prevailed • President Ramaphosa appointed in February 2018 • New Minister of Mineral Resources, Gwede Mantashe, appointed • New Mining Charter significantly improved on various drafts and for juniors and explorers a
Slide 15: South Africa: The Opportunity for a New-Generation Mining Company
SOUTH AFRICA: THE OPPORTUNITY FOR A NEW-GENERATION MINING COMPANY • JSE is the world’s 18th largest stock exchange by market cap • 505 listed companies and +800 securities • Aggregate market cap: US$988 billion • 41% liquidity • More than R767 billion (A$76.3b) raised in the last 5 years • Orion is
Slide 16: What the Changing Landscape Means for Orion
WHAT THE CHANGING LANDSCAPE MEANS FOR ORION Focus on creating meaningful empowerment structures • Exploration free of any BEE or Mining Charter impositions – aims to encourage greenfields exploration • For Mining Rights, 5 years to achieve 30% BEE ownership: • 20% black entrepreneurs • 5% employees
Slide 17: Summary: A Compelling Investment Case
SUMMARY: A COMPELLING INVESTMENT CASE • ‘A new mine in the footprint of an old mineʼ: • Updated JORC Mineral Resource and Scoping Study completed on schedule in December 2018 • Bankable Feasibility Study on track for Q2 2019 • Significant existing infrastructure in place • Large land-holding in Area
Slide 18: Appendices
APPENDICES A \ Orion Minerals
Slide 19: Board of Directors
BOARD OF DIRECTORS Denis Waddell Errol Smart Alexander Haller Mark Palmer Michael Hulmes Chairman Managing Director & Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Denis is a Chartered Errol is a Geologist, with Alexander is a Partner at Mark is an inve
Slide 20: Senior Management
SENIOR MANAGEMENT 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 Company Secretary Adminis
Slide 21: Prieska Mine: Current Ownership Structure
PRIESKA MINE: CURRENT OWNERSHIP STRUCTURE Orion Minerals Limited 100% Agama Exploration and Mining (Pty) Ltd 73.3% 70.0% 73.3% Repli Trading No 27 Vardocube (Pty) Ltd Bartotrax (Pty) Ltd (Pty) Ltd 26.7% 30.0% 26.7% BEE Partners 1 BEE Partners 2 BEE Partners 3 1. Mosiapoa Family Trust (15%) and Power
Slide 22: Prieska: Updated Mineral Resource Inventory
PRIESKA: UPDATED MINERAL RESOURCE INVENTORY Resource Classification Volume Tonnes Density Zn Zn Cu Cu m3 tonnes/m3 tonnes % tonnes % Indicated 5,432,000 18,507,000 3.4 667,000 3.60 217,000 1.17 Deep Sulphide Resource Inferred 2,977,000 10,219,000 3.4 417,000 4.1 117,000 1.1 Indicated 221,000 623,500
Slide 23: Large Contiguous Blocks of Indicated Resource
LARGE CONTIGUOUS BLOCKS OF INDICATED RESOURCE PAGE 23
Slide 24: Prieska: Deep Sulphide Resource with Significant Growth Potential
PRIESKA: DEEP SULPHIDE RESOURCE WITH SIGNIFICANT GROWTH POTENTIAL Longitudinal projection showing the Repli Deep Sulphide Resource, including priority target areas (pink hatch) for resource extension drilling Refer ASX release 5 November 2018 PAGE 24
Slide 25: Scoping Study: Confirms Robust Phase 1, 10-Year Project
SCOPING STUDY: CONFIRMS ROBUST PHASE 1, 10-YEAR PROJECT Price and FX assumptions Unit Estimated value Financial performance Unit Estimated value Metal price – Cu (USD3.00/lb) USD/t 6,614 NPV (pre-tax) @12.5% discount rate AUD m 400 – 440 Metal price – Zn (USD1.30/lb) USD/t 2,8661 IRR (pre-tax) % 38
Slide 26: Prieska: Well-Understood Metallurgy, Good Quality Concentrates
PRIESKA: WELL-UNDERSTOOD METALLURGY, GOOD QUALITY CONCENTRATES Historical Performance Data FS Locked Cycle Tests 100.0 90.0 • Extensive locked-cycle metallurgical test work program 80.0 Copper recovery (%) 70.0 completed 60.0 50.0 • Confirms metallurgical continuity across Deep 40.0 30.0 Sulphide Zo
Slide 27: Prieska Process Flowsheet
PRIESKA PROCESS FLOWSHEET PAGE 27
Slide 28: For further information, contact: Orion Minerals Limited
For further information, contact: Orion Minerals Limited Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au ASX/JSE: ORN Website: www.orionminerals.com.au PAGE
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