Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (May 2023)
31 slides from Orion Minerals's investor presentation, May 2023
Slide 1: Orion Minerals Presentation May 2023
Errol Smart / Managing Director and CEO PAGE Presentation / May 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 Post Capital Share Issue % Capital Structure Summary Current Significant Shareholders Raise (post capital raise) Shares on issue 1 5,466M 5,466M Tembo Capital (EU/Netherlands) 19.2 Options on issue 2 300M 3.8B Delphi Group (EU/Germany) 13.4 Cash on hand 2 AUD12.2M Clover Alloys (SA)
Slide 5: Prieska Copper Zinc Mine (PCZM)
PRIESKA COPPER ZINC MINE (PCZM) PAGE 5
Slide 6: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS 2.4km NW Hutchings Shaft SE 1250m Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Refer ASX/JSE release 15 January 2019 It’s still open on each end! PAGE 6
Slide 7: Prieska (PCZM) Copper Zinc Project (70% Owned)
PRIESKA (PCZM) COPPER ZINC PROJECT (70% OWNED) 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 and 70ktpa Zn • Life-
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 • 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-up to full scale project (su
Slide 10: Secured Funding – Ready to Develop
SECURED FUNDING – READY TO DEVELOP IDC Convertible Loan A$ 21M March 2023 Equity Raise A$ 13M Nov 2023 Options Exercise (Currently well in the money) A$ 60M Triple Flag Royalty + Stream A$ 128M Offtake related – Pre payments? TBD? Total A$ >222M PAGE 10
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 underway to fast-track development • Stream Finance and early funding advance, provide opportunity fast-track development N
Slide 12: PCZM +105 Resource – Section View Looking North-East
PCZM +105 RESOURCE – SECTION VIEW LOOKING NORTH-EAST SUB-LEVEL CAVING STOPING METHOD TO BE TRIALED REPLACING OPEN PIT https://youtu.be/mozTwnQ1cWU PAGE 12
Slide 13: OCP Projects
OCP Projects PAGE 13
Slide 14: 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 14
Slide 15: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES PAGE 15
Slide 16: Okiep Copper Project (OCP) (56%-100%)
OKIEP COPPER PROJECT (OCP) (56%-100%) • 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, containing 15
Slide 17: 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 18: JMP Project
JMP Project PAGE 18
Slide 19: 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 20: Jacomynspan (50% ORN : 37% African Nickel)
JACOMYNSPAN (50% ORN : 37% AFRICAN NICKEL) POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER Granted 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 changer Refer
Slide 21: Appendices
Appendices PAGE 21
Slide 22: ESG – Core Focus of Our Business
ESG – CORE FOCUS OF OUR BUSINESS • BEE (30%) Black Empowerment for mining projects of which: • 20% Entrepreneurs • 5% Community Trust • 5% Employee Trust • Community focused • Environmentally conscious Mining Indaba Award 2022 (Junior Enhanced Labour Standards) AAMEG Award 2020 (Junior Mining Leader
Slide 23: Green Power – Green Footprint
GREEN POWER – GREEN FOOTPRINT • Water conservation and recycling – tailings water available for re-use and excess delivered to local community for irrigation • Tailings – predominantly in ground placement / void filling / carbon sequestration Renewable Energy Advantage • 170MW Solar Power and 200MW
Slide 24: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES Fourth Industrial Revolution (4IR) enabled • Orion will be an industry leader within South Africa, adopting next generation technology and work practices • Fresh start - no workplace or IR legacy issues • High tech and mechanised - minimising employee exposure to high-
Slide 25: PCZM – A Green Metal Producer
PCZM – A GREEN METAL PRODUCER Scope 1+2 - Carbon Neutral target Mine sales – potentially attract “green” premium Investigating Battery Precursor Production Desirable for offtake customers ESG – investment eligibility Cost savings – carbon credits / low emissions PAGE 25
Slide 26: Portfolio of Future Facing Metals Projects
PORTFOLIO OF FUTURE FACING METALS PROJECTS DEVELOPMENT ADVANCED EXPLORATION READY STAGE UPSIDE South Africa Australia Prieska (PCZM) Okiep Copper Project (OCP) Jacomynspan (JMP) Boksputs Fraser Range 70% ownership 56-70% ownership 50 ownership Earning 10-30% free carried 70% ownership to feasibility
Slide 27: PCZM Project BFS 2020: Executive Dashboard
PCZM PROJECT BFS 2020: EXECUTIVE DASHBOARD Key assumptions and Project Performance Parameters Price and FX Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 6,680 NPV (pre-tax) @8% discount rate ZAR (M) 8,566 AUD (M) 779 NPV % Change -15% -10% -5% 0% +5% +10%
Slide 28: NOM – Flat Mines Pilot Project Scoping Study
NOM – FLAT MINES PILOT PROJECT SCOPING STUDY Executive Dashboard Price and Forex Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 7,593 NPV (pre-tax) approximated @10% discount rate ZAR (M) 1,896 AUD (M) 170 Metal price – Au USD/oz 1,889 NPV (post-tax) approx
Slide 29: Senior Management
SENIOR MANAGEMENT Errol Smart Peet van Coller Martin Bouwmeester Nelson Mosiapoa Marcus Birch Managing Director & Chief Financial Officer Company Secretary Group Corporate Social Executive: Sustainability Chief Executive Officer Responsibility Advisor and Business Support Geologist, with professiona
Slide 30: Board of Directors
BOARD OF DIRECTORS Denis Waddell Errol Smart Philip Kotze 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 Geologist, with Philip has a
Slide 31: For Further Information, Contact
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 31