29metals Limited · ASX:29M
29metals — Investor Presentation (November 2022)
36 slides from 29metals's investor presentation, Nov 21, 2022
Slide 1: Investor Presentation
Investor Presentation November 2022
Slide 2: Important information
Important information The information in this presentation is provided for general information regarding 29Metals Limited (the ‘Company ‘) and its subsidiaries (together with the Company, ‘29Metals‘). Material information in this presentation has been derived from information publicly released by th
Slide 3: Important information
Important information NON-IFRS FINANCIAL INFORMATION METRICS USED IN THIS RELEASE This presentation contains certain metrics, such as C1 Costs, AISC, Site Operating Costs, Royalties and Other Selling Costs, EBITDA, Adjusted NPAT, Adjusted EPS, Drawn Debt, Net Cash, Net Drawn Debt and Cu-eq, that is
Slide 4: Snapshot
Snapshot 100% Australian production History of Mineral Resources Tier 1 jurisdictions replacement 1 47 82 Positioned to leverage 2 x 10+ year mine life global energy transition operating assets Our vision is to be a leading ASX-listed copper producer, developer and explorer, offering Outstanding inv
Slide 5: People & Culture
People & Culture Highly experienced Board and management team with a track record of value creation, safety and sustainability 40 years experience 35 years experience 40 years experience 30 years experience 40 years experience 20 years experience 18 years experience 20 years experience Owen Hegarty
Slide 6: Our Approach to Sustainability & ESG
Our Approach to Sustainability & ESG At 29Metals, we believe that Sustainability and ESG must be part of everything we do, not something we do Safe and Responsible Partnering inclusive environmental with 29Metals’ first Sustainability & ESG report published with 2021 Annual Report workplace stewar
Slide 7: Tier 1 Mining Jurisdictions
Tier 1 Mining Jurisdictions Mature regulatory and permitting regime Commodities in Mineral Resources 29 30 Cu Copper Zn Zinc 79 47 Au Gold Ag Silver Mt Isa 82 27 1 Pb Lead Co Cobalt Legend Geraldton Operating Exploration Golden Grove Capricorn Copper Redhill Port Domestic and international exports 1
Slide 8: Metals Critical to the Energy Transition
Metals Critical to the Energy Transition 29Metals’ long life, green metals portfolio can supply all decarbonisation applications Solar Concentrated Wind Hydro Geothermal Energy storage Nuclear Coal Gas CCS photovoltaic solar power Copper Zinc Cobalt Silver Lead Nickel Chromium Molybdenum Manganese A
Slide 9: Commodities Key to the Energy Transition: Copper
Commodities Key to the Energy Transition Future technology and infrastructure requirements 29 Cu Copper Demand & Growth Drivers Key to decarbonisation Global Refined Copper Usage 2 Critical for decarbonisation and electrification 60 50 Contributes 0.2% of global GHG emissions – potential Demand to
Slide 10: Copper Supply Deficit
Copper Supply Deficit Expected 3.15Mt copper in concentrate deficit in 2030 Copper in Concentrate Supply Pipeline 1 30 25 Copper in copper concentrate (Mt) 20 15 10 5 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Operating Committed Probab
Slide 11: Commodities Key to the Energy Transition: Zinc
Commodities Key to the Energy Transition Future technology and infrastructure requirements 30 Zn Zinc Demand & Growth Drivers Galvanising green infrastructure Mineral Demand for Wind by Scenario 1 Declining production from primary zinc mines globally 1500 Decarbonisation is galvanised steel intens
Slide 12: Commodities Key to the Energy Transition: Cobalt
Commodities Key to the Energy Transition Future technology and infrastructure requirements 27 Co 1 Cobalt Uses Powering the green economy Committed mine production and primary demand for cobalt, 2020-20302 Storage for renewable energy 400 Key role in renewable power generation Essential part of th
Slide 13: High Metal Grades at Operating Assets
High Metal Grades at Operating Assets High Mineral Resources and Ore Reserves 1 (‘R&R’) grades relative to declining head grades globally Declining Global Cu Head Grades 2 Capricorn Copper Produced Cu Grade vs R&R Grade 1.7Mt ore milled 2021 production 4.0% @ 1.7% Cu Ore Reserves 2.0% Mineral Resour
Slide 14: 2021 Highlights
2021 Highlights Operating and financial performance create the foundation for growth Cu-eq Production Profitability Organic growth 68kt Cu-eq 1 Pro forma EBITDA $254m 1, 2 Extensive pipeline Exceeded Pro forma Forecast Exceeded Pro forma Forecast of Xantho Extended $221m 3 Cervantes & Gossan Valley
Slide 15: HY 2022 Highlights
HY 2022 Highlights Production & Costs Projects Growth 34kt Cu-eq 2 Production de-risking Successful campaigns C1 Costs US$2.38/lb 2 Ventilation upgrades at both operating sites Gossan Valley & Cervantes studies on track Paste plant construction at Golden Grove Excellent Esperanza South & Cer
Slide 16: 2022 Sep-Qtr Update
2022 Sep-Qtr Update Improved production performance whilst managing cost pressures Production Group Production (tonnes) 53,725 Strong results at Capricorn Copper – 20,966 higher milled tonnes at Ore Reserve grades 19,761 Stronger zinc at Golden Grove – improved 15,801 18,163 7,473 32,759 grades
Slide 17: Golden Grove
Golden Grove World-class VHMS system
Slide 18: Discovery Timeline
Discovery Timeline History of discovery and Mineral Resources replacement and growth Golden Grove Mineral Resources Mineral Resources estimates at Dec-31 2021: 58.4Mt @ Discoveries 1.6% Cu, 4.4% Zn, 0.7g/t Au, 30g/t Ag 2 Production Growth Opportunities Scuddles starts production. Scuddles 2019 Miner
Slide 19: Cervantes Drilling Campaign
Cervantes Drilling Campaign Successful Exploration Program is ongoing at Cervantes 2021 drilling 1 saw 100% increase in Mineral Resources estimated tonnes 2 2022 drilling program is ongoing Further resource conversion drilling planned in 2023 to improve geological confidence 1. Drilling result
Slide 20: Future Exploration Opportunities
Future Exploration Opportunities Golden Grove VHMS system controls well understood after decades of drilling Good spatial definition of feeder zones and favourable stratigraphic units allows high probability targeting Priority target areas for repeat mineralisation: Scuddles Long-section 1 Gossan Hi
Slide 21: Gossan Valley Studies
Gossan Valley Studies 1 Positive economics, with substantial upside potential to spot assumptions and project inventory Metric 2 Units GV Studies 3 Sens. 13 Average mining rate 4 ktpa 326 Mine life 5, 6 years 6 Potential third mining front, providing opportunity to increase operating flexibility P
Slide 22: Cervantes PFS
Cervantes PFS 1 Confirmed viability, extending the operating life with established infrastructure at Scuddles Long section of Cervantes 2 Cervantes PFS Decline Design Mineral Resources estimates at Cervantes as at 31 December 2021 have seen a 100% increase to 4.6Mt @ 1.4% Cu, 6.6% Zn, 0.7g/t Au, 4
Slide 23: Capricorn Copper
Capricorn Copper Long-life operation with 1,858km2 of tenements in a highly prospective region
Slide 24: ESS Drilling - Open at Depth with Improving Tenor
ESS Drilling - Open at Depth with Improving Tenor Successful drilling campaign ongoing at ESS sub-level cave ESS Long section ESS Cross Section Impressive drill results (to date) warranting further commitment to expand the surface program Level of Drilling results show improved current production
Slide 25: Redhill
Redhill Strategic tenement package and project
Slide 26: 2022 Field Campaign
2022 Field Campaign 1 Extension and new vein potential 2 Completion of 29Metals’ first field campaign Returned rock samples highlighted 1.0g/t Au possible extension to existing 1.2% Cu, 0.1g/t Au, 21g/t Ag veins as well as additional veins 0.3% Cu, 0.7g/t Au, 13g/t Ag outside of the existing Min
Slide 27: Summary
Summary Substantial copper producer, with all assets in Tier 1 jurisdictions Delivering on Highly experienced 2 high grade Producing metals Continuing exploration Positioned to grow, commitments team underpinned by operations in Tier 1 required for the global success develop and leverage TEAMS juris
Slide 28: Appendix
Appendix
Slide 29: Mineral Resources and Ore Reserves Estimates
Mineral Resources and Ore Reserves Estimates 1 Group Mineral Resources 2, 3 2021 Grade Contained Metal Category Asset Tonnes Cu Au Zn Ag Cu Au Zn Ag Mt % g/t % g/t kt koz kt koz Golden Grove 21.9 1.7 0.8 3.2 31 374 528 704 21,634 Capricorn Copper 5.5 1.8 - - 6 97 - - 1,061 Measured Redhill - - - - -
Slide 30: Mineral Resources and Ore Reserves Estimates: Capricorn Copper
Mineral Resources and Ore Reserves Estimates 1 Capricorn Copper Mineral Resources 2 2021 Mineral Resources Grade Contained Metal Tonnes Cu Ag Co As S Fe Cu Metal Ag Metal Co Metal As Cont S Cont Fe Metal Ore Body Category Mt % ppm ppm ppm % % kt koz kt kt kt kt Measured 0.6 2.3 18 701 1,251 12.4 11.
Slide 31: Mineral Resources and Ore Reserves Estimates: Golden Grove
Mineral Resources and Ore Reserves Estimates 1 Golden Grove Mineral Resources 2 2021 Mineral Resources Grade Contained Metal Tonnes Cu Au Zn Ag Pb Cu Au Zn Ag Pb Ore Type Category Mt % g/t % g/t % kt koz kt koz kt Measured - - - - - - - - - - - Copper Indicated 0.3 3.9 1.0 0.0 25 0.0 10 8 0 207 0 Ox
Slide 32: Mineral Resources and Ore Reserves Estimates: Group Ore Reserves
Mineral Resources and Ore Reserves Estimates 1 Group Ore Reserves 2, 3 2021 2020 Grade Contained Metal Grade Contained Metal Category Asset Tonnes Cu Au Zn Ag Cu Au Zn Ag Tonnes Cu Au Zn Ag Cu Au Zn Ag Mt % g/t % g/t kt koz kt koz Mt % g/t % g/t kt koz kt koz Golden Grove 3.2 1.7 0.9 2.8 34 54 96 88
Slide 33: HY22 Financial Performance Summary
HY22 Financial Performance Summary Stronger production, higher prices and strong cashflow generation Revenue 1 of $356m a 23% increase on 2021 pro forma 2 revenues ― Higher production, favourable prices, weaker Australian dollar EBITDA 3 of $94m a 23% increase on 2021 pro forma 2 EBITDA Operat
Slide 34: Definitions of Non-IFRS Financial Information Metrics
Definitions of Non-IFRS Financial Information Metrics METRIC DEFINITION Adjusted EPS is adjusted earnings per share, and is calculated using Adjusted NPAT divided by the weighted average number of ordinary shares outstanding for the period. is NPAT for the year attributable to members adjusted for n
Slide 35: Reconciliation of Non-IFRS Financial Information Metrics
Reconciliation of Non-IFRS Financial Information Metrics RECONCILIATION OF PRO FORMA 1 EBITDA TO NPAT For the 12 months ended 31 December 2021 UNITS FY2021A FY2021P VAR NPAT $'000 $34 $37 ($2) Less: Income tax (expense)/benefit $'000 $12 $13 ($0) Add: Net finance costs $'000 $17 $12 $5 Add: Deprecia
Slide 36: Unlocking value to empower the future
Unlocking value to empower the future 36