Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (August 2021)
33 slides from Orion Minerals's investor presentation, Aug 11, 2021
Slide 1: A Low-Cost Base Metals Giant in the Making
ASX: ORN | JSE: ORN ww.orionminerals.com.au GROWING SHAREHOLDER VALUE A LOW-COST BASE METALS GIANT IN THE MAKING DEVELOPMENT ADVANCED EXPLORATION READY STAGE UPSIDE Errol Smart Managing Director and CEO + + Investor Presentation August 2021 PAGE
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion from estimated or anticipated events or results reflected underpinning the estimates in the relevant Orion ASX releases Minerals Ltd and its subsidiaries (Orion or Company) and their in such forward-looking statements; and (as ref
Slide 3: Green Metals Portfolio
GREEN METALS PORTFOLIO DEVELOPMENT ADVANCED EXPLORATION South Africa READY STAGE UPSIDE • Prieska (PCZM) • 70% • Copper/Zinc • BFS & fully permitted • Okiep Copper Project (OCP) • 56-100% • Copper • Advanced stage / brownfields • Boksputs • Earning 74% Australia • Copper-gold exploration • Fraser Ra
Slide 4: Company Snapshot
COMPANY SNAPSHOT Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 4,321M Tembo Capital 23.8 Options on issue 234M Delphi Group 13.2 Cash on hand 1 $20.6M IGO Limited 3.6 AASMF Loan (Oct‘21 term) 2 $1.9M Tarney Holdings (Denis Waddell) 2.7 Market capitalisation
Slide 5: 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 releases 2 February 2021, 10 February 2021, 29 March 2021 and 2 August 2021 PAGE 5
Slide 6: State President Recognises the Role of Mining in Pandemic Recovery
STATE PRESIDENT RECOGNISES THE ROLE OF MINING IN PANDEMIC RECOVERY OF SOUTH AFRICA PAGE 6
Slide 7: ESG Focus Core of Our Business
ESG FOCUS CORE OF OUR BUSINESS • BEE (30%) Black Empowerment for mining projects of which: • 20%, Entrepreneurs • 5%, Community Trust • 5%, Employee Trust • Community focused • Environmentally conscious • AAMEG Award 2020 (Junior Mining Leader on ESG) • MD & CEO Errol Smart • Chairman of the Mineral
Slide 8: 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 Renewable Energy Advantage • 170MW Solar Power and 200MW Wind Power on site at P
Slide 9: PCZM: A Green Metal Producer
PCZM: A GREEN METAL PRODUCER Scope 1+2 - Carbon Neutral target Concentrate – potentially attracts “green” premium Desirable for offtake customers ESG – investment eligibility Cost savings – carbon credits / low emissions PAGE 9
Slide 10: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES Fourth Industrial Revolution (4IR) enabled • ORN 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 exposure of employees to hig
Slide 11: Prieska (PCZM) Copper Zinc Project (70%)
PRIESKA (PCZM) COPPER ZINC PROJECT (70%) 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-of-min
Slide 12: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS NW Hutchings Shaft SE Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Refer ASX release 15 January 2019 PAGE 12
Slide 13: PCZM – Timetable to 2024 Production
PCZM – TIMETABLE TO 2024 PRODUCTION EARLY WORKS CONSTRUCTION PHASE PRODUCTION 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 BULK POWER AND WATER SUPPLY Temporary Power Infrastructure - 15MVA 1 1 1 1 1 1 1 1 1 1 Bulk Power Infrastruct
Slide 14: 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): • Historical production of +2Mt of copper • Mineral Resource of 11.5Mt at 1.4% Cu, containing 156,300 tonnes Cu • Tremendous exploration upside • Prom
Slide 15: Okiep – Historical Production Profile
OKIEP – HISTORICAL PRODUCTION PROFILE Newmont Goldfields Metorex • Produced 2.1Mt Cu from 121Mt RoM @ 1.9% Cu • Peaked at 2.4Mtpa ROM, mainly from underground mining • Ore sourced from 42 separate mines within the district • Consistently achieved >90% plant recoveries to >30%Cu in concentrate Refer
Slide 16: OCP Historic Discoveries and Mines
OCP HISTORIC DISCOVERIES AND MINES • Mineralised intrusive bodies intrude structures aligned in east west trending structural corridors • 25% of mineralised corridors hidden under thin surface cover • Modern geophysics expected to assist in detecting mineralisation underneath the thin cover PAGE 16
Slide 17: OCP – Flat Mines
OCP – FLAT MINES SCOPING STUDY INDICATES ROBUST ECONOMICS • Industrial Development Corporation (IDC) intend to be our partners • Foundation phase is modelled for 12 years • concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust pilot-phase mine: • production f
Slide 18: Advanced Brownfields Exploration Opportunities
ADVANCED BROWNFIELDS EXPLORATION OPPORTUNITIES Hundreds of historic drill holes with significant mineralisation remaining unmined provide walk-up drill targets Refer ASX release 21 May 2021 PAGE 18
Slide 19: SkyTEM Survey Underway
SKYTEMTM SURVEY UNDERWAY First airborne MAG / EM survey in the district PAGE 19
Slide 20: Exploration Upside: Areachap Under-Explored Belt
EXPLORATION UPSIDE: AREACHAP UNDER-EXPLORED BELT Multiple Cu-Zn VMS and Ni-Cu intrusive targets within Orion’s mineral rights • Prieska Cu-Zn near mine open pit and underground targets with high grade intersections • Jacomynspan – Mining Right with potential for sulphide Ni-Cu-PGE-Au open pit • Seve
Slide 21: Jacomynspan
JACOMYNSPAN Ni-Cu-Co-PGE+Au Exploration Refer Orion March 2021 Quarterly Activities Report PAGE 21
Slide 22: Greenfield Exploration: Areachap Belt
GREENFIELD EXPLORATION: AREACHAP BELT Boksputs Copper Prospect – Drilling underway Refer ASX release 28 June 2021 PAGE 22
Slide 23: Exploration: Fraser Range (10-30%) – JV with IGO
EXPLORATION: FRASER RANGE (10-30%) – JV WITH IGO Location of Pike Project (IGO: ORN JV) relative to Legend Mining’s Mawson Ni-Cu discovery Pike Project • ORN 30% free-carried by IGO through to first Pre-Feasibility study • 2019 diamond drilling intersected Ni-Cu sulphides in ultramafic intrusive and
Slide 24: Anticipated Events 2021
ANTICIPATED EVENTS 2021 In Progress Completed Workstream H2 Prieska Financing ✅ June 2021 OCP SkyTEMTM Survey ✅ July 2021 OCP decision to purchase ✅ H2 2021 ongoing exploration OCP ✅ Dec 2021 OCP Feasibility ✅ July-August 2021 Boksputs B1 Drilling ✅ Sep 2021 JMP Open Pit Resource ✅ Dec 2021 JMP Open
Slide 25: Appendices
Appendices For further information, contact: PAGE
Slide 26: BEE: PCZM Proactively Mining Charter Compliant
BEE: PCZM PROACTIVELY MINING CHARTER COMPLIANT BEE New BEE Entrepreneurs Orion Entrepreneurs 100% Safika Black Star Kolobe Nala Resources Minerals Investment Prieska Prieska Northern projects Community Prieska Employees Trust Resources Orion Exploration 1 (PR application pending) Trust 70% Masiqhame
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 NPV % Change -15% -10% -5% 0% +5% +10% +15% 0% Metal price - Cu USD/t 6,680 NPV (pre-tax) @8% discount rate ZAR (M) 8,566 AUD
Slide 28: OCP: Flat Mines Pilot Project Scoping Study
OCP: 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) approxi
Slide 29: Award Winning
AWARD WINNING ESG Emerging Leader Award (November 2020) from the South African State President congratulates Orion MD (Nov 2019) Australian African Mining & Exploration Group (AAMEG). Prieksa achieves “Project of National Importance” Status PAGE 29
Slide 30: Orion in the Community
ORION IN THE COMMUNITY Stakeholder Engagement Forum (SEF) Bicycles for Humanity Sponsoring education & development courses JV partnership with Australian charity PAGE 30
Slide 31: Board of Directors
BOARD OF DIRECTORS Denis Waddell Errol Smart Alexander Haller 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 Alexande
Slide 32: Senior Management
SENIOR MANAGEMENT Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Chief Operating Officer Executive: Finance & Executive: Exploration Group Corporate Social Chief Executive Officer Company Secretary Adminis
Slide 33: For further information, contact
Orion Minerals Limited Suite 617, 530 Little 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