Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Australian Nickel Conference 2024
28 slides from Ardea Resources's conference presentation, Oct 9, 2024
Slide 1: Kalgoorlie Nickel Project - Goongarrie Hub
Kalgoorlie Nickel Project - Goongarrie Hub A multi decade, large scale, low cost nickel-cobalt operation Andrew Penkethman Managing Director & CEO Australian Nickel Conference 9 October 2024 Page 1 ASX:ARL
Slide 2: Disclaimer
Disclaimer Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 N
Slide 3: Experienced Board, Supportive Shareholders, Tight Capital Structure
Mat Longworth Non-Executive Chair Experienced Board, Supportive Experienced across exploration, project evaluation / development including KNP and corporate management Shareholders, Tight Capital Structure Andrew Penkethman MD & CEO Experienced geologist with strong technical and corporate focus inc
Slide 4: Globally significant, large scale nickel-cobalt
Globally significant, KNP Goongarrie Hub - 584Mt at 0.69% Ni and 0.043% large scale Co for 4Mt of contained Ni nickel-cobalt and 250kt of contained Co 1 DFS fully funded by Partners 2 Mineral Resource in one of the best operating jurisdictions Rest of KNP – 100% ARL 270Mt at 0.74% Ni and 0.05% in th
Slide 5: Robust July 2023 PFS indicated on average 30ktpa nickel and 2ktpa cobalt
Robust July 2023 PFS indicated on average 30ktpa nickel and 2ktpa cobalt at low operating costs for >40years,1 attracting quality Strategic KNP Partners2 1. See full tables in Appendices 2 and 3 of this presentation and 5 July 2023 ARL Pre Feasibility Study (PFS) ASX Announcement Page 5 2. See 30 Au
Slide 6: KNP - Goongarrie Hub large scale, long life, low cost
KNP - Goongarrie Hub large scale, long life, low cost • Goongarrie Hub Ore Reserve2 194.1Mt A B at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years • KNP Goongarrie Hub Low C1 Opex a
Slide 7: Milestone agreement with SMM & MC, to develop the KNP
Milestone agreement with SMM & MC, to develop the KNP Goongarrie Hub with Consortium to fully fund the in progress DFS up Kalgoorlie Nickel Pty Ltd (KNPL) to A$98.5M1,2 Managing underway KNP Goongarrie Hub Definitive Feasibility Study (DFS) 1. Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (
Slide 8: Fully funded DFS underway at KNP Goongarrie Hub
Fully funded DFS Metallurgical test work for DFS process design studies in progress Infill Drilling underway to upgrade definition of Mineral underway at KNP Evaluating increase to Resources into Measured category within the first five year 4Mtpa processing capacity pit shells to be available for Go
Slide 9: Security and diversity of nickel supply is imperative with production perfectly timed
Security and diversity of nickel supply is imperative with KNP Goongarrie Hub production perfectly timed • 2023-24 nickel surplus has led to higher Expected cost producers cutting or ceasing Goongarrie Hub production production • Security and continuity of Critical Mineral supply at risk in poor ESG
Slide 10: Battery demand to grow 7-fold by 2040, while high-nickel cathodes push up nickel demand
Battery demand to grow 7-fold by 2040, while high-nickel cathodes to push up nickel demand over the long term Stainless steel will continue to be the main market for Nickel, but Li-ion batteries will drive 60% of the long-term demand growth. NCM cathode chemistries will shift towards a slightly high
Slide 11: 40 year mine life ~30ktpa nickel & 2ktpa cobalt
The KNP Goongarrie Hub will contribute significantly to local, state and national economy and will be an important part of the Australian Nickel sector 40 year 3,000 Jobs Project to Long term supply mine life during Construction support local, of low cost1,2 producing >800 state, national, Nickel-Co
Slide 12: Andrew Penkethman
For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 ardea@ardearesources.com.au Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials ASX:ARL A black background with a black square Youtube - Free social media icons De
Slide 13: Appendices
Appendices ASX:ARL A black background with a black square Youtube - Free social media icons Description automatically generated with medium confidence ASX:ARL
Slide 14: Appendix 1 - Competent Persons
Appendix 1 - Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 June 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX Consortium Announcement 26 April 2024, 14 August 2024 and 30 August 2024. Information in this presentation tha
Slide 15: Appendix 2 - KNP Global MRE
Appendix 2 - KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade The Competent Persons (CP) for the Mineral Resources, are Contained Contained Mr Ian Buchhorn and Mr Andrew Penkethman, both are full-time KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%)
Slide 16: Appendix 2 continued KNP Goongarrie Hub MRE
Appendix 2 continued KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade KNP Goongarrie Hub MRE Prospect Resource Category Size (Mt) Ni (%) Co (%) Contained Metal Ni (kt) Co (kt) Method Estimation Details Source Year Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Go
Slide 17: Appendix 2 continued - KNP Goongarrie Hub Ore Reserve Summary
Appendix 2 continued - KNP Goongarrie Hub Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore KNP Goongarrie Hub Ore Reserve Summary consisting of Ni Co Ni Co Ni Co Ni Co Ni Co Ni Co Deposit Mt Mt Mt ore above 0.5% Ni as the feed stock for the processing % % kt kt % % kt kt %
Slide 18: Appendix 3 - PFS Key Financial Metrics
Appendix 3 - PFS Key Financial Metrics Financials PFS defines > 40-year Nickel Revenue A$ M 44,429 operation with strong Cobalt Revenue A$ M 7,880 Revenue - combined A$ M 52,309 financial metrics1: EBITDA LOM A$ M 34,217 EBITDA Annual (average) A$ M 800 • Pre-tax NPV7 of A$7,625M (IRR 30%) EBITDA ma
Slide 19: Appendix 3 continued - PFS 2023 Capital Cost Estimate
Appendix 3 continued - PFS 2023 Capital Cost Estimate KNP – Goongarrie Hub Preproduction Cost Category Costs (A$) • Contingency considered appropriate to the level of the capital cost estimate has been included Mining – overheads, mobilisation, 98M • Base date March 2023 pre-strip and other • Refer
Slide 20: Appendix 3 continued - DFS Key Budget Items
Appendix 3 continued - DFS Key Budget Items The Consortium (SMM and MC) will DFS Cost Centre Costs (A$) fund 100% of the KNP Goongarrie Drilling 13.4M Hub DFS costs, up to the agreed Metallurgical Test Work 2.3M budget of A$98.5 million Mine Design 15.0M (incl dewatering & geotechnical) Process Plan
Slide 21: Appendix cont - Superior HPAL Intensity
Appendix 3 cont – KNP Goongarrie Hub Superior HPAL Intensity ✓ Good ore grade + good slurry density = Lower Capex & Opex $$ ✓ Atmospheric leach = stable operation, utilizes saprolite resource ✓ MHP & MSP Product = known technology & good market acceptance Operating data from Australian HPAL Producer
Slide 22: Ardea Receives Improved ESG Certification Score 2024
Ardea Receives Improved ESG Certification Score 2024 2024 ESG Scores for Ardea Ardea’s work practices are aimed at meeting or exceeding the high ESG standards expected by modern society with continuous improvement shown in the two Digbee ESGTM surveys completed Page 22 ASX:ARL
Slide 23: Unlocking Value of Kalgoorlie Nickel Project
Unlocking Value of Kalgoorlie Nickel Project ^ See 30 June 2023 ARL MRE announcement. Or see Appendix 2 in this presentation Page 23 * See 30 August 2024 ASX release KNP Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium ASX:ARL
Slide 24: Premium Goethite Nickel-Cobalt Ore - Low Cost Characteristics
Premium Goethite Nickel-Cobalt Ore - Low Cost Characteristics Highway Deposit 17km Goongarrie Hill Typical premium high grade Goethite at Goongarrie South Goongarrie South Big Four / Scotia Dam To Siberia North To Kalgoorlie - Boulder • 25km continuous strike of soft, mainly free-digging premium Goe
Slide 25: KNP Goongarrie Hub - Shallow, Thick, High-Grade Nickel
KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel Goongarrie South - Pamela Jean Deeps Section 666 9600mN AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m AGSR0418* 42m @ 0.67% Ni, 0.04% Co from 30m 56m @ 1.29% Ni, 0.14%Co from 10
Slide 26: KNP Goongarrie Hub - Mineralised Neutraliser in Highway Ore
KNP Goongarrie Hub – Mineralised Neutraliser in Highway Ore Highway Section 669 9364mN AHID0012* AHID0012* 20m @ 1.14% AGSR0418 Ni, 0.037% Co & 4g/t Sc from 4m inc 4m @ 2.31% Ni, 0.132% Co & 8g/t Sc from 4m – HPAL feed & inc 8m @ 1.30% Ni, 0.015% Co & 3g/t Sc from 16m – Brown Typical white magnesite
Slide 27: ESG Credentials Strengthened During PFS
ESG Credentials Strengthened During PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 28: Ardea Exploration Pipeline Upside
Ardea Exploration Pipeline Upside Ardea controls ~3,500km2 of tenure in the Eastern Goldfields of WA with unrivalled Battery and Critical Mineral exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m)