Group 6 Metals Limited · ASX:G6M
Group 6 Metals — Investor Presentation (October 2021)
31 slides from Group 6 Metals's investor presentation, Oct 4, 2021
Slide 1: The Dolphin Tungsten Project
The Dolphin Tungsten Project Equity Raising Presentation October 2021
Slide 2: The Dolphin Tungsten Project
THE DOLPHIN TUNGSTEN PROJECT 100% KIS OWNED Fully permitted, high grade – low-cost project, with a clear pathway to near-term production ALL APPROVALS GRANTED LONG MINE LIFE WITH SUBSTANTIAL UPSIDE Mining license, environmental approval (EPA) and further exploration Current project life of 14 years
Slide 3: Equity Raising
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Slide 4: Equity Raising Overview
EQUITY RAISING OVERVIEW $31 MILLION EQUITY RAISING TO FULLY FUND REDEVELOPMENT OF THE DOLPHIN TUNGSTEN PROJECT Offer Structure and • King Island Scheelite Limited (“King Island”) is undertaking a A$31.0 million equity raising comprising a placement to sophisticated, professional and institutional in
Slide 5: Sources & Uses and Pro Forma Capital Structure
SOURCES & USES AND PRO FORMA CAPITAL STRUCTURE THE EQUITY RAISING WILL ENABLE KING ISLAND TO ACHIEVE FINANCIAL CLOSE FOR THE DOLPHIN TUNGSTEN PROJECT AND COMMENCE REDEVELOPMENT Sources and Uses of Funds Pro Forma Capital Structure Sources A$m Pro Forma Shares on Issue Securities (m) Interest (%) Exi
Slide 6: Equity Raising Timetable
EQUITY RAISING TIMETABLE Event Time (AEST) / Date1 Trading halt Friday, 1 October 2021 Placement bookbuild Friday, 1 October 2021 SPP Record Date 7:00pm Friday, 1 October 2021 Announcement of Placement and SPP, trading halt lifted, and shares recommence trading on ASX Monday, 4 October 2021 SPP open
Slide 7: $44 Million Funding Package
$44 MILLION FUNDING PACKAGE LONG TERM SUPPORT FROM COMMITTED PARTIES • A syndicate comprising 4 major KIS shareholders and an external party have committed to provide $33 million in debt funding (“Debt Facilities”) – Facilities provided at a weighted average interest rate of ~7.25% – Subject to shar
Slide 8: Redevelopment of the Dolphin Tungsten Project
Redevelopment of the Dolphin Tungsten Project
Slide 9: Project Redevelopment Timeline
PROJECT REDEVELOPMENT TIMELINE Secures Tasmanian Commits to Government Long Lead Item Project First Loan Purchases Commencement Construction Concentrate February Mar to August September October to end Oct 2021 to Jan to Mar 2021 Aug 2021 March 2023 2021 2021 2021 Oct 2021 Dec 2022 2023 Project Debt
Slide 10: Location & Existing Infrastructure
LOCATION & EXISTING INFRASTRUCTURE STRATEGIC LOCATION WITH DIRECT PORT ACCESS King Island KIS owns an The Dolphin adjacent property The Port of Grassy Project is located (Portside Links), accommodates Dolphin Project near the town of providing the mine 5,000 tonne vessels Grassy, on the direct acces
Slide 11: Dolphin Project Reserves & Resources
DOLPHIN PROJECT RESERVES & RESOURCES RESOURCE HISTORICAL RECORDS • Historical mine records reconcile extremely Dolphin – 9.6M tonnes @ 0.90% W03 well with recent drilling (0.20% cut-off) • Additional drilling allowed compliance with Bold Head – 1.6M tonnes @ 0.91% W03 JORC 2012 (0.50% cut-off) • Min
Slide 12: A World-Class Quality Deposit
A WORLD-CLASS QUALITY DEPOSIT Chart depicts those companies that have reserve category deposits; bubble size denotes reserve tonnage KING ISLAND 12 Source: Company reports and announcements SCHEELITE
Slide 13: Robust Project Economics
ROBUST PROJECT ECONOMICS REVISED FEASABILITY STUDY WAS RELEASED IN DECEMBER 2020 A$241m A$73m AUD $130/mtu WO3 NPV @ 8% Capex Opex Pre Tax 43% 400,000 Tonnes Ore AUD$428/mtu IRR Annual Mine APT Price – 5 year ave *WO3 concentrate trades at an approx. Pre Tax Production 23% discount to APT 2.25 Years
Slide 14: Shovel Ready Project
SHOVEL READY PROJECT FIRST CONCENTRATE ON TRACK Q1 CY23 • Open-cut mine fully approved Mining lease valid to 2029 and extendable producing 400,000 tonnes of ore per annum, yielding around 237,000 mtu of Environmental approval granted WO3 for 8 years (1 mtu = 10 kg) • Underground producing 300,000 to
Slide 15: Redevelopment Plan Significantly De-Risked
REDEVELOPMENT PLAN SIGNIFICANTLY DE-RISKED FULLY PERMITTED WITH EXISTING INFRASTRUCTURE • EPA and Mining Approvals granted – Management Plans for construction and operations currently being prepared – Water and Rehabilitation Plans approved – Experienced General Manager - Development & Operations to
Slide 16: Offtake Agreement – Wolfram Bergbau
OFFTAKE AGREEMENT WOLFRAM BERGBAU • Agreement signed in April 2019 with Wolfram Bergbau und Hütten AG – a $33M world leading supplier of tungsten powders and a subsidiary of the Sandvik Group At current tungsten pricing, the • Sandvik is a high-tech engineering group specialising in tools and toolin
Slide 17: Offtake Agreement – Traxys Europe
OFFTAKE AGREEMENT Traxys Europe $102M • Agreement signed in September 2021with leading international physical commodity trader Traxys At current tungsten pricing, • Headquartered in Luxembourg, Traxys is engaged in the sourcing, the agreement represents approx. trading, marketing and distribution of
Slide 18: Tungsten Industry
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Slide 19: Tungsten: A Critical Industrial Metal
TUNGSTEN: A CRITICAL INDUSTRIAL METAL AN ELEMENT OF GREAT ECONOMIC IMPORTANCE • Tungsten is ranked by the British Geological Surveys, US Department of Defence, the European Commission, Japan, Russia and Australia as a 'critical' mineral: – Due to its economic importance – Supply risk – dominance of
Slide 20: Demand for Tungsten
DEMAND FOR TUNGSTEN GROWING LIST OF END -USE APPLICATIONS CURRENT CURRENT • Cemented carbides used in drilling tools and wear-resistant parts • Alloy steels and alloys used primarily in tools • Mill products • Smart technologies (semiconductors) • Powders now used in 3D printing and MRI machines Sou
Slide 21: Tungsten Price History
TUNGSTEN PRICE HISTORY • 2017 saw prices rise significantly with EU APT PRICE (PER MTU) expectations of stronger global growth and reduced supply from China - Fanya 400.00 • 2018/19 saw prices remain stable in the H1 of the 350.00 year while prices pulled back in H2 due to 300.00 seasonal recess and
Slide 22: Company Overview
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Slide 23: Corporate Snapshot
CORPORATE SNAPSHOT A$0.17 408.9M A$4.6M TOP 10 SHAREHOLDERS Share Price Cash Shares on Issue (as at 30/09/21) (as at 09/09/21) 55.85% 1. Richard & Gwenda Chadwick 18.45% 44.15% 2. Chris Ellis – Executive Director 16.84% A$0.8M A$69.5M Deposits Paid for Long Market Cap Nil Top 10 Other 3. D.A.CH.S. C
Slide 24: Board of Directors
BOARD OF DIRECTORS JOHANN JACOBS CHRIS ELLIS GREG HANCOCK Executive Chairman Executive Director Non-Executive Director Johann has held a number of executive roles Chris has over 40 years’ experience in the Greg is Managing Director of Hancock over 40 years, in resource companies, where exploration a
Slide 25: Appendices
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Slide 26: Appendix 1 – Summary of Warrants
Appendix 1 – Summary of Warrants Under the terms of the Debt Facilities, the Facility Lenders will receive warrants which entitle the Facility Lenders to convert the majority (65% to 75%) of the outstanding Debt Facilities into equity shares of King Island to be issued at $0.14 per share and ranking
Slide 27: Appendix 2 – Summary of Debt Facilities
Appendix 2 – Summary of Debt Facilities 1 Key terms 1.1 Facility amounts: The total $33m of debt funding being raised by King Island Scheelite Limited for the Dolphin Tungsten Project comprises of the following: Lender Debt only (A$) Convertible debt (A$) Total (A$) Pure Asset Management Pty Ltd Nil
Slide 28: Appendix 2 – Summary of Debt Facilities
Appendix 2 – Summary of Debt Facilities 1.2 Borrower: the borrower under each facility is Australian Tungsten Pty Ltd, being a wholly owned subsidiary of KIS and the owner of the operational assets of the Project. 1.3 Guarantors: KIS and its wholly owned subsidiary, Scheelite Management Pty Ltd, are
Slide 29: Appendix 2 – Summary of Debt Facilities
Appendix 2 – Summary of Debt Facilities 2 Documentation and Security 2.1 The facility from each lender is documented on a separate facility agreement, with each on similar terms. 2.2 The security is shared across all lenders, and consists of a general security agreement (GSA), given by KIS, the Borr
Slide 30: Disclaimer
DISCLAIMER This presentation has been prepared by King Island Scheelite Limited (“KIS”) as a summary of its Dolphin Project. It is for general information purposes only. This presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any securities in KIS
Slide 31: Johann Jacobs
JOHANN JACOBS EXECUTIVE CHAIRMAN +61 (0) 416 125 449 johann.jacobs@kisltd.com.au @KIScheelite
Group 6 Metals — Investor Presentation (October 2021) on 6ix