Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (November 2020)
54 slides from Aurelia Metals's investor presentation, Nov 13, 2020
Slide 1: Strategic Acquisition and Capital Raising
November 2020 Investor Presentation aurelia KS METALS Ltd. Strategic Acquisition and Capital Raising ASX Code: AMI Not for release or distribution in the United States This announcement has been approved for release by the Board of Directors of Aurelia Metals
Slide 2: Important information & disclaimer
Not for release or distribution in the United States Important information & disclaimer This investor presentation (Presentation) is dated 13 November 2020 and has been prepared and authorised by Aurelia Metals Limited (ACN 108 476 384) (Aurelia). This presentation has been prepared in relation to A
Slide 3: Important information & disclaimer
Not for release or distribution in the United States Important information & disclaimer INVESTMENT RISK ‘An investment in New Shares is subject to known and unknown risks, some of which are beyond the control of the Group. Aurelia does not guarantee any particular rate of return or the performance o
Slide 4: Important information & disclaimer
Not for release or distribution in the United States Important information & disclaimer PAST PERFORMANCE Past performance and pro forma historical financial information in this Presentation is given for illustrative purposes only, should not be relied on and is not an indication of future performanc
Slide 5: Important information & disclaimer
Not for release or distribution in the United States Important information & disclaimer NOT AN OFFER This Presentation is not and should not be considered an offer of an invitation to acquire New Shares or any other financialproducts, and does not and will not form any part of any contract for the a
Slide 6: Important information & disclaimer
Not for release or distribution in the United States Important information & disclaimer The underwriters and/or their respective afflates are acting as the joint lead managers and underwriters of the Placement and the Entitlement Offer. The underwriters are acting for and providing services to Aurel
Slide 7: Table of contents
Table of contents Section 1: Section 2: Section 3: Section 4: Appendix A: Appendix B: Appendix C: Appendix D: Appendix E: Transaction summary and strategic rationale Dargues Gold Mine overview Aurelia Metals operations update Equity capital raising & transaction funding Mineral Resource and Ore Rese
Slide 8: Transaction summary and strategic rationale
aurelia METALS Ltd. Section 1 Transaction summary and strategic rationale
Slide 9: Transaction Summary
Not for release or distribution in the United States Transaction Summary = Aurelia Metals Limited (ASX:AMI) (‘Aurelia’) has agreed to acquire 100% of the Dargues Gold Mine and regional exploration tenements ("Dargues") by way of an acquisition of the shares in Dargues Gold Mine Pty Ltd from Diversif
Slide 10: Strategic rationale and benefits to Aurelia shareholders
Not for release or distribution in the United States Strategic rationale and benefits to Aurelia shareholders Acquisition is consistent with Aurelia's strategic goal of becoming a mid-cap gold focused producer with a 4-5 operation portfolio auretia Attractive asset which is "on strategy" for Aurelia
Slide 11: Attractive asset which is on strategy for Aurelia's portfolio
Not for release or distribution in the United States © Attractive asset which is "on strategy" for Aurelia’s portfolio Three cashflow producing assets concentrated in NSW with a focus on gold Production FY20A Production FY21F AISC FY20A AISC FY21F Ore Reserves? Reserve grade Mineral Resources? Resou
Slide 12: Firmly establishes Aurelia as a mid cap gold producer
P / NAV3: # of op. assets: Silverlake Ramelius Gold Road Westgold Pro forma Aurelia Aurelia Dacian Aeris
Slide 13: Leverage off a strategic asset base in the Cobar Basin
Not for release or distribution in the United States © Leverage off a strategic asset base in the Cobar Basin Acquisition in line with strategy to create a gold-focused portfolio within NSW bi =! ae = A ~ ‘) eo r ras “4 J georte Ze ( ‘ aurelia ‘S- METALS Led. Consolidation of 3 operating mines in NS
Slide 14: Improves the portfolio and reweights further towards gold
Not for release or distribution in the United States © Improves the portfolio and reweights further towards gold Significantly improves annual gold production, gold weighting and AISC profile of Aurelia Gold production (koz)145 125-145 Gold revenue as % of total revenue (%)?45 Gold AISC (A$/oz) 145
Slide 15: Significant upside potential under Aurelia's ownership
Not for release or distribution in the United States © Significant upside potential under Aurelia’s ownership Tangible optimisation opportunities at Dargues Current state of Dargues Aurelia's optimisation plan Diversified Minerals'focus was to bring Dargues into production within its 1) Deliver incr
Slide 16: Dargues Gold Mine overview
aurelia METALS Ltd. Section 2 Dargues Gold Mine overview
Slide 17: Overview of Dargues Gold Mine
Not for release or distribution in the United States Overview of Dargues Gold Mine Newly commissioned underground operation producing a clean gold concentrate . Development commenced in May 2018, first shipment of gold concentrate in June 2020 = Asset now fully commissioned, mining in ramp-up and ex
Slide 18: Dargues ramp-up progress
Not for release or distribution in the United States Dargues ramp-up progress Mill throughput volumes and gold recovery tracking well Monthly ore milled and average head grade’ oremied vt grace September 2020 results 35 50 2 40 = Monthly mining targets of c. 400m development and 30kt 25 ore producti
Slide 19: Newly constructed infrastructure
Not for release or distribution in the United States Newly constructed infrastructure Approx. A$90m has been invested in the development of Dargues Processing facility with crushing, grinding and flotation circuits having a capacity of 355ktpa = High voltage line, switching equipment and substations
Slide 20: Geological overview
Geological overview High grade mineralisation across an established goldfield Dargues geology overview . Dargues forms part of the Majors Creek Goldfield, one of the largest historical alluvial goldfields in NSW = Located within the Eastern Province of the Lachlan Tectonic Zone, a north northwest tr
Slide 21: Exploration upside
Not for release or distribution in the United States Exploration upside Strong likelihood of extensions to the Dargues deposit, both along strike and at depth Interpreted geological domains showing potential lode extensions = Existing resources constrained at depth by volume and density of drilling;
Slide 22: Aurelia's targeted drilling program
Aurelia's targeted drilling program Acapitaltite investment planned to expand the current resource Schematic long section’ Schematic cross section’ —W DARGUES GOLD MINE E>] [=s DARGUES GOLD MINE . a U reli a 1. Refer to Competent Person's statement in the disclaimer on page 6 METALS Led. Not for rel
Slide 23: Operating structure and mining contract
Not for release or distribution in the United States Operating structure and mining contract Aurelia has a longstanding and successful relationship with PYBAR Features of new alliance mining services contract for Dargues = Alliance agreement with PYBAR to align the interests of = Diversified Mineral
Slide 24: Aurelia Metals operations update
aurelia METALS Ltd. Section 3 Aurelia Metals operations update
Slide 25: Dec-19 Mar-20 Jun-20
30 6,000 20.5 4,339 18.8 3,035 17.0 20 4,000 10 6.6 1,190 2,000 764 594 4.2 – – Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 40 2,996 30.0 3,200 20 2,000 32.8 1,662 15.7 29.3 1,960 15 9.5 1,500 30 2,400 10.5 11.1 10 7.7 1,000 20 15.3 14.3 1,600 1,149 1,250 1,113 5 907 500 10 800 988 1,104 1,000 – – – –
Slide 26: Federation project update
Not for release or distribution in the United States Federation project update Further exceptional drill results with updated resource expected early in March 2021 quarter Federation schematic long section Federation drill results and progress North East portion of deposit and outline of current min
Slide 27: Equity capital raising & transaction funding
aurelia METALS Ltd. Section 4 Equity capital raising & transaction funding
Slide 28: Transaction funding
Transaction funding Abalanced financing approach Sources and uses of funds Transaction sources of funds A$m Cash proceeds from the Equity Raising 130 Equity Raisin: Shares issued for scrip consideration of 24 Gey o Acquisition Price Cash proceeds from the Term Loan Facility 45 Utilisation of Aurelia
Slide 29: Pro forma capitalisation and net cash position
Not for release or distribution in the United States Pro forma capitalisation and net cash position Prudent balance sheet and financial risk management Commentary Pro forma capitalisation and net cash position . Aurelia will draw down A$45m of a new 3-year secured A$65m Term a Loan Facility from Inv
Slide 30: Equity Raising overview
Not for release or distribution in the United States Equity Raising overview . ~A$130m fully underwritten’ equity raising (Equity Raising or Offer) = ~A$41m institutional placement (Placement)* = ~A$89m 1 for 4.2° accelerated pro rata non renounceable entitlement offer (Entitlement Offer) The Entitl
Slide 31: Equity Raising timetable
Not for release or distribution in the United States Equity Raising timetable Evei Date Announcement of Offer, Institutional Entitlement Offer and Placement opens Friday, 13 November 2020 Institutional Entitlement Offer and Placement closes Friday, 13 November 2020 Trading halt is lifted and trading
Slide 32: Appendix A: Mineral Resource and Ore Reserve Statements
aurelia METALS Ltd. Appendix A Mineral Resource and Ore Reserve Statements
Slide 33: Diversified Minerals - Dargues Ore Reserves and Mineral Resources estimates
Not for release or distribution in the United States Diversified Minerals - Dargues Ore Reserves and Mineral Resources estimates Ore Reserves (as at 30 June 2020) Mineral Resources (as at 15 March 2017) Proved Measured 113 Probable 649 6.2 130 Indicated 740 74 175 Total 1,108 5.7 202 Inferred 290 6.
Slide 34: Aurelia Mineral Resources estimates (30 June 2020)
Not for release or distribution in the United States Aurelia Mineral Resources estimates (30 June 2020) Peak (kt) (AS/t) (g/t) (%) (%) (%) (g/t) Hera nnes NSR ie fe ra te ish Measured 1,749 1.8 14 07 1.0 Measured 869 Indicated 6,538. 218 1.6 1.2 15 17 1 Indicated 464 238 1.8 28 46 49 Inferred 3,065
Slide 35: Aurelia Ore Reserves estimates (30 June 2020)
Not for release or distribution in the United States Aurelia Ore Reserves estimates (30 June 2020) Peak Hera nnes NSR te a a Ag Tonnes NSR te a Ag ish ish Proved 339 169 1.1 18 0.4 07 12 Proved 183 Probable 2,992 251 24 0.8 3.0 3.2 7 Probable 555 187 14 3.0 48 49 Total 3,331 243 2.3 0.9 2.8 2.9 16 T
Slide 36: Appendix B: Key risks
aurelia METALS Ltd. Appendix B Key risks
Slide 37: Key risks
Not for release or distribution in the United States Key risks “The Group consists of Aurelia and its subsidiaries, which will include Dargues Gold Mine Pty Ltd and Big Island Mining Pty Ltd (Dargues Group) upon completion of the Acquisition. This section describes the key business risks of investin
Slide 38: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. Aurelia routinely prepares intemal estimates of future production, cash costs and capital costs of production. Aurelia has developed business plans at its Hera and Peak operations and at the Dargues operation undertook a due dilig
Slide 39: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. There continues to be 2 high level of uncertainty surrounding the spread, duration and impact of COVID-19. This uncertainty is having a widespread and varied impact on global capital markets and commodity prices, to which the Grou
Slide 40: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. 2. Risks associated with the Acqusition Completion of the Acquisition is conditional on various matters as set out in the Share Sale Agreement (Share Sale Agreement) in respect of the Acquisition, including certain regulatory appr
Slide 41: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. The Group has prepared (and made assumptions in the preperation of] the financial information, information on production and costs estimates relating to the Acquisition, information on the Dargues Group and mining operations ofDar
Slide 42: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. 3. Offer and general risks Any investment in equity capital carties general risks. The trading price of Aureli’s shares on the ASX may fluctuate in tine with equity capital market movements in Australia and internationally, or in
Slide 43: Key risks (cont.)
Not for release or distribution in the United States Key risks (cont. ‘Aurelia has entered into an underwriting agreement with the Underwriters in respect of the Ofer dated 13 November 2020 (Underwriting Agreement). The Underwriting Agreement contains representations, warranties, undertakings and in
Slide 44: Appendix C: Foreign offer restrictions
aurelia METALS Ltd. Appendix C Foreign offer restrictions
Slide 45: Foreign offer restrictions
Not for release or distribution in the United States Foreign offer restrictions INTERNATIONAL SELLING RESTRICTIONS Thisdocument doesnot constitutean offer of New Shares ofthe Company in any jurisctionin which would be unlawful. paticulay, his document may nate cstributedto any person, and the New Sh
Slide 46: Foreign offer restrictions (cont.)
Not for release or distribution in the United States Foreign offer restrictions (cont. 2. EUROPEAN UNION (FRANCE, GERMANY) This document has nat been, and will not be, registered with or approved by any secutis regulator n the European Union. Accordingly, this document may not be made avaiable, nor
Slide 47: Foreign offer restrictions (cont.)
Not for release or distribution in the United States Foreign offer restrictions (cont. 7. SWITZERLAND Thisdocument snot intended to constitute an offeror solicitation to purchaser investin the New Shares described herein The New Shares may not be publicly offered, sold or advertised directly or indi
Slide 48: Appendix D: Summary of Share Sale Agreement
aurelia METALS Ltd. Appendix D Summary of Share Sale Agreement
Slide 49: Share Sale Agreement Summary
Not for release or distribution in the United States Share Sale Agreement Summary Acquisition Structure The acquisition by Aurelia of 100% of the issued shares in Dargues Gold Mine Pty Ltd IDGM) from Diversified Minerals, DGM's wholly owned subsidiary, Big Island Mining Pty Ltd (BIM, which will be a
Slide 50: Share Sale Agreement Summary (cont.)
Not for release or distribution in the United States Share Sale Agreement Summary (cont. Pre-completion Conduct Diversified Minerals, DGM and BIM will be subject to typical restrictions on their conduct between execution and completion and.will be required to provide Aurelia’s representatives access
Slide 51: Appendix E: Summary of Underwriting Agreement
aurelia METALS Ltd. Appendix E Summary of Underwriting Agreement
Slide 52: Underwriting Agreement Summary
Not for release or distribution in the United States Underwriting Agreement Summary ‘Aurelia entered into an underwriting agreement with theunderwriters in respect of the Offer on 18 November 2020 (Underwriting Agreement. The underwriters’ obligations under the Underwriting Agreement, including to u
Slide 53: Underwriting Agreement Summary (cont.)
Not for release or distribution in the United States Underwriting Agreement Summary (cont. the Share Sele Agreement or the debt facility agreement to assist in funding the Acquisition; (a) is terminated, rescinded or repudiated; (b) becomes void or voidable, illegal invalid, unenforceable or materia
Slide 54: Contact
Contact Telephone: +61 7 3180 5000 Email: office@aureliametals.com.au Level 17, 144 Edward Street BRISBANE QLD 4000 GPO Box 7 BRISBANE QLD 4001 aureliametals.com.au aurelia METALS Ltd. Ke
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