29metals Limited · ASX:29M
29metals — FY2022 Earnings Presentation
31 slides from 29metals's earnings presentation, Feb 24, 2023
Slide 1: Correction to 23 February 2023 Investor Presentation
ASX ANNOUNCEMENT Friday, 24 February 2023 For personal use only Correction to 23 February 2023 Investor Presentation 29Metals Limited (‘29Metals’ or, the ‘Company’) advises that it has identified errors on three slides in the 2022 Full-Year Financial Results and 2022 Mineral Resources and Ore Reserv
Slide 2: 2022 Full-Year Results and Mineral Resources & Ore Reserves Estimates
For personal use only 2022 Full-Year Results 2022 Mineral Resources & Ore Reserves Estimates Peter Albert Managing Director & Chief Executive Officer Peter Herbert Chief Financial Officer Mark van Heerden Group Manager, Geology 23 February 2023
Slide 3: 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‘). This presentation is not a recommendation to invest in 29Metals securities, and the information pres
Slide 4: Important Information
Important Information FORWARD LOOKING STATEMENTS This presentation contains forward looking statements and comments about future events, including in relation to 29Metals’ businesses, plans and strategies. Forward-looking statements can generally be identified by the use of words such as, “expect”,
Slide 5: 2022 Financial and Operating Highlights
2022 Financial and Operating Highlights For personal use only Solid operational performance and continued Mineral Resources growth in a challenging environment Improved safety and production $183m operating cash flow, pre- Group TRIFR improved to 9.8/mwhrs (2021: 12.0/mwhrs) Cash Flow hedges Product
Slide 6: 2022 Metal Production and Sales Mix
2022 Metal Production and Sales Mix For personal use only Improved production outcomes, copper dominant revenue mix Sales Mix (2022) 1 Copper & Zinc Production (kt) 29 30 79 47 Golden Grove Capricorn Copper Guidance Cu Zn Au Ag Copper Production 41 36 – 43 2, 3 41 5% 25 24 48% Golden 4% Grove 30% 37
Slide 7: 2022 Sustainability & ESG
2022 Sustainability & ESG For personal use only Progressing our Sustainability & ESG priorities 2022 Milestones 29Metal’s released its first Sustainability & ESG report Launch of 29Metals’ Our Approach to Sustainability & ESG and TCFD Roadmap Progress against all 29Metals’ 2022 Sustainability
Slide 8: Financial Results Summary
Financial Results Summary For personal use only Solid production $721m Revenue 1 ― higher zinc sales and higher A$ metal prices, partly offset by lower precious metal sales ― revenue net of treatment and refining charges (‘TCRCs’), including TCs linked to the zinc price $152m EBITDA 2 ― higher S
Slide 9: Costs
Costs For personal use only Costs impacted by industry-wide challenges including absenteeism and inflation Site Operating Costs 1 14% higher than 2021 PF 2 a result of: ― increased activity and higher unit costs for processing consumables ― higher mining input costs impacting contract mining rates
Slide 10: Capital Expenditure
Capital Expenditure For personal use only Flat capital and higher D&A on faster utilisation of TSF and accelerated D&A Capital Expenditure Pro Forma 1 D&A Bridge Flat capital spend period on period with: higher sustaining capital from incremental tailings expansion and ventilation lower capitali
Slide 11: NPAT Bridge
NPAT Bridge For personal use only Activity, inflation and accounting charges key drivers of 2022 statutory loss Improved production outcomes 11 Faster utilisation of incremental expansions and Reflects tax benefit from 34 accelerated current period losses (59) depreciation – (47) Materially lower lo
Slide 12: Cash Flow Bridge
Cash Flow Bridge For personal use only Strong operating cashflow results and full leverage to copper prices Higher production and A$ metal prices, net of TCRCs (114) Leases ($32m) Interest ($14m) Other $2m $m 183 AUD depreciation Cu Hedges ($27.54m) impact on US$ PPE ($50m) (44) Au Hedges ($0.05m) d
Slide 13: Net Drawn Debt
Net Drawn Debt 1 For personal use only Strong balance and liquidity Drawn Debt 1 decreased to $198m (2021: $201m) following principal repayments of $15m (US$12m), offset by depreciation of AUD Balance sheet strength with Net Drawn Debt 1 of $26m, including cash and cash equivalents of $172m 2 –
Slide 14: Financial Metrics Guidance
Financial Metrics Guidance 1 For personal use only UNITS 2022 2023 Guidance 1 Commentary Reflects planned capital and production metrics for 2023, and incremental capacity expansions, at both sites, prior to D&A 2 $m 189 155 – 190 transitioning to LOM facilities Mine development amortisation on
Slide 15: 2023 Priorities
2023 Priorities For personal use only Key drivers underpinning 2023 performance 29Metals outlined key drivers of 2023 performance in the Dec-Qtr report. These key drivers are expected to impact production volumes and cash flows in the first half, particularly the Mar-Qtr Key Driver Management Fo
Slide 16: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves 1 For personal use only Continued replacement and growth, building on 29Metals history of exploration success Golden Grove Ore Reserves estimates Ore Reserves (Mt) Contained Cu (kt) Contained Zn (kt) +19% +10% +14% Group Ore Reserves estimates tonnes up 23%, with i
Slide 17: High Metal Grades at Operating Assets
High Metal Grades at Operating Assets For personal use only High Mineral Resources and Ore Reserves (‘MR&OR’) 1 grade relative to 2022 production and declining head grades globally Declining Global Cu Head Grades 2 Capricorn Copper 2022 Cu Head Grade vs MR&OR Grade ’22 31-Dec-22 4.0% Prod. OR estima
Slide 18: Cervantes
Cervantes Increase in Mineral Resources estimates for For personal use only Long-section View Cervantes relative to PFS 1 31-Dec-22 Mineral Resources estimates tonnes increased by 13% to 5.2Mt Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for Cervantes 2 Resources e
Slide 19: Gossan Valley
Gossan Valley For personal use only Outline of 31-Dec-22 Mineral Resources estimates for Gossan Valley - Long-section View 3 Gossan Valley 31-Dec-22 Mineral Resources estimates of 6.3Mt @ 1.1% Cu, 6.1% Zn, 0.5g/t Au, 18g/t Ag Golden Grove 31-Dec-22 Ore Reserves estimates include Gossan Valley Or
Slide 20: Esperanza South
Esperanza South For personal use only Cross-section View 31-Dec-22 Mineral Resources estimates for Esperanza South 1: Outline of 31-Dec-21 Mineral Outline of 31-Dec-22 Mineral Resources estimates for ESS 2 Resources estimates for ESS 2 Increase in width and higher grade at depth Increase in Mine
Slide 21: Cobalt at CC: Evaluating cobalt opportunity
Cobalt at CC: Cobalt 1 For personal use only Evaluating cobalt opportunity Substantial cobalt estimated to be contained within our copper Mineral Resources estimates Studies are progressing to identify future opportunities to economically recover cobalt in Mineral Resources – UQ PhD study - Geom
Slide 22: FY22 Financial Results Summary
FY22 Financial Results Summary For personal use only 29 Cu Improved production Strong operating cash Retirement of copper Balance sheet strength Continued Mineral delivered increased flows despite industry hedges provides full Resources and Ore revenues wide challenges leverage to copper Reserves gr
Slide 23: Appendix
For personal use only APPENDIX A
Slide 24: Pro Forma EBITDA Bridge
Pro Forma EBITDA Bridge 1, 2 For personal use only Solid pro forma EBITDA 2 supported by increased production, offset by higher site operating costs 11 (59) Overall improvement in production outcomes net (17) of TCRCs (14) (15) Increased activity, costs to secure labour and (8) inflation $m 254 High
Slide 25: 2023 Group Guidance
2023 Group Guidance 1 For personal use only UNITS 2022A 2023 Guidance Production 2 Copper kt 41 36 – 43 Zinc kt 58 54 – 61 Gold koz 27 20 – 23 Silver koz 1,555 1,130 – 1,310 Costs 3 Mining 4 A$m 308 305 – 355 Processing A$m 135 138 – 154 G&A A$m 67 60 – 70 Concentrate transport 5 A$m 49 35 – 41 TCRC
Slide 26: Asset Guidance
Asset Guidance 1 For personal use only Golden Grove Capricorn Copper Guidance UNITS 2022A 2023 Guidance Guidance UNITS 2022A 2023 Guidance Production 2 Production 2 Ore mined kt 1,522 1,450 – 1,600 Ore mined kt 1,714 1,500 – 1,800 Ore milled kt 1,547 1,450 – 1,600 Ore milled kt 1,731 1,450 – 1,650 C
Slide 27: Definitions of Non-IFRS Financial Information Metrics
Definitions of Non-IFRS Financial Information Metrics METRIC DEFINITION is all-in sustaining costs, and is calculated as C1 Costs plus royalties cost, corporate costs, sustaining capital and capitalised development costs, but excludes growth capital and exploration. AISC AISC is cited per pound of p
Slide 28: Reconciliation of EBITDA to NPAT
Reconciliation of EBITDA to NPAT For personal use only UNITS 2022 2021 1 VAR NPAT $’000 (47,222) 121,013 (168,235) Less: Income tax (expense)/benefit $’000 (18,594) (103,236) 84,642 Add: Net finance costs $’000 19,172 30,262 (11,090) Add: Depreciation and amortisation $’000 189,399 100,124 89,275 Ad
Slide 29: Group Mineral Resources and Ore Reserves Estimates: Mineral Resources
Group Mineral Resources and Ore Reserves Estimates 1 For personal use only Mineral Resources Mineral Resources estimates at the Group level are the aggregation of Mineral Resources estimates for Golden Grove, Capricorn Copper and Redhill. Mineral Resources have been depleted for production to 31 Dec
Slide 30: Group Mineral Resources and Ore Reserves Estimates: Ore Reserves
Group Mineral Resources and Ore Reserves Estimates 1 For personal use only Ore Reserves Ore Reserves estimates at the Group level are the aggregation of Ore Reserves estimates for Golden Grove and Capricorn Copper. Ore Reserves have been depleted for production to 31 December 2022 and are reported a
Slide 31: Unlocking value to empower the future
For personal use only Unlocking value to empower the future