Aeris Resources Limited · ASX:AIS
Aeris Resources — Investor Presentation (September 2018)
31 slides from Aeris Resources's investor presentation, Sep 21, 2018
Slide 1: Emerging Mid-Tier Copper Producer
Emerging Mid-Tier Copper Producer Equity Raising Presentation 21 September 2018 Not for release to US wire services or distribution in the United States ASX: AIS
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) is dated 21 September 2018 and has been prepared by Aeris Resources Limited (Aeris) in connection with the issue of a prospectus (Prospectus) for an accelerated non-renounceable entitlement offer to its existing shareholders (En
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements or forward-looking information. The words “intend”, “may”, “would”, “could”, “will”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “target” and
Slide 4: Equity Raising
Equity Raising 4
Slide 5: Equity Raising Overview
Equity Raising Overview • $35.1 million equity raising, comprising: An institutional placement to raise approximately $8.4 million (“Placement”); and A 1 for 2.1 pro-rata accelerated non-renounceable entitlement offer to raise approximately $26.7 million (“Entitlement Offer”) to existing eligibl
Slide 6: Equity Raising Overview
Equity Raising Overview • New Shares will rank equally in all respects with Aeris’s existing shares Ranking • New Shares issued under the Placement will not be eligible to participate in the Entitlement Offer • Three of the Company’s large existing shareholders - Special Portfolio Opportunity V Limi
Slide 7: Indicative Timetable
Indicative Timetable Key Event Date(1) Announcement of Equity Raising 21 September 2018 Placement and Institutional Entitlement Offer opens 21 September 2018 Placement and Institutional Entitlement Offer closes 21 September 2018 Trading halt lifted and trading resumes on an ex-entitlement basis 25 S
Slide 8: Uses of Proceeds
Uses of Proceeds It is proposed that the net proceeds raised from the Placement and the Entitlement Offer will be applied for the purposes of the repayment of debt and the acceleration of exploration activities. FY19 exploration program: Torrens Project (AIS 70%) Drill program to commence in 1H FY
Slide 9: Aeris Overview
Aeris Overview Tay Reris
Slide 10: Company snapshot
Aeris Resources Company snapshot • Flagship Tritton Copper Operations located in regional hotspot in Western NSW – Historical 5 year, average annual copper production of 27kt, a 19% increase on previous 5 year average – Mine plan expected to deliver average annual copper production of 24ktpa over th
Slide 11: Corporate overview
Aeris Resources Corporate overview Capital Structure Current Pro Forma Share Price Performance Ordinary shares on issue 280.2 million 455.7 million 0.30 1.8mm Convertible preference 93.4 million 93.4 million 0.25 1.5mm shares (CPS) 0.20 1.2mm Management options(1) 93.4 million 93.4 million 0.15 0.9m
Slide 12: Successful operational turnaround implemented
Aeris Resources Successful operational turnaround implemented Reserve Grade Copper (kt) Metal Inventory Replenishment and Grade (%) (%) 200 2.00% • 5 year, average annual copper 180 1.80% production of 27.4kt, a 19% increase on 160 1.60% prior 5 year average 140 1.40% 120 1.20% • Tritton Deeps and M
Slide 13: Financial restructure completed
Aeris Resources Financial restructure completed Average LME Operating Cash Operating Cashflows Cash Copper Flows (A$m) Price (A$/lb) • Inherited highly over-levered balance sheet 75 4.00 New Management 60 3.50 • Completed two major financial restructures 45 3.00 in December 2015 and February 2018 30
Slide 14: Strong FY18 results
Aeris Resources Strong FY18 results Tonnes Copper FY18 Copper Production • FY18 total copper production of 26,686 tonnes 8,000 at average C1 cash cost of A$2.60/lb: 14% increase compared to the previous financial 6,000 year (FY17: 23,404 tonnes; C1 cash cost A$2.60/lb) • Cash and cash equivalents
Slide 15: Established copper mine in highly prospective region
Tritton Copper Operations Established copper mine in highly prospective region Tritton Copper Operations Regional Map – Western NSW • Tritton deposit is a >20Mt copper dominant system • UG long hole open stoping from Tritton and Murrawombie mines • First production in 2005 with >320kt Cu produced to
Slide 16: 5 year mine plan producing 24ktpa, underpinned by reserves
Tritton Copper Operations 5 year mine plan producing 24ktpa, underpinned by reserves • 5 year mine plan averaging Cu production of 24ktpa: – 1.65Mtpa average annual processing rate – Capex and exploration funded through operating cashflows – Gold production 5koz+ pa • Underpinned by existing reserve
Slide 17: Near-mine exploration potential to extend mine life
Tritton Copper Operations Near-mine exploration potential to extend mine life • Exploration has been limited due to capital constraints Tritton Budgerygar over last 5+ years • Strong down-dip continuity is a feature common across all known deposits within tenement package: Tritton traced down-dip
Slide 18: Regional exploration opportunities across highly prospective corridors
Tritton Copper Operations Regional exploration opportunities across highly prospective corridors • Greenfield exploration strategy is focused on discovering Tritton-scale orebodies (i.e. +10Mt) • Airborne EM and ground based EM surveying technology now able to see deeper and identify new anomalies (
Slide 19: Highly encouraging drill results at Kurrajong prospect
Tritton Copper Operations Highly encouraging drill results at Kurrajong prospect • Kurrajong prospect located 20km east of Tritton processing infrastructure • Exploration program to date: – 2012-13 drill campaign confirmed mineralisation – 2017 MLTEM survey – 2018 initial 6 drill hole campaign • Hig
Slide 20: Potential major new copper-gold project in the Eastern Gawler Craton
Torrens Project (AIS 70%) Potential major new copper-gold project in the Eastern Gawler Craton • Aeris holds a 70% interest and is the manager of the Torrens Project through a JV with Argonaut Resources (30%) • Torrens located on Eastern Gawler Craton IOCG corridor in South Australia, which hosts se
Slide 21: Multiple anomalies across large-scale IOCG system
Torrens Project (AIS 70%) Multiple anomalies across large-scale IOCG system • Limited historical drilling has intersected mineralisation typical of an IOCG system: - 6 drill holes drilled between 1977 and 2008 - Holes assayed and core maintained • Defined a large magnetite dominant with lesser hemat
Slide 22: Multiple anomalies across large-scale IOCG system
Torrens Project (AIS 70%) Multiple anomalies across large-scale IOCG system • Regional airborne gravity survey completed March 2018: Brad Updating – 28 gravity anomalies identified(1) – Refine drill targets in conjunction with geophysical and structural interpretations – Drill targets to be selected
Slide 23: FY19 objectives and growth strategy
Aeris Resources FY19 objectives and growth strategy FY19 objectives Strategic growth initiatives 1. Achieve Tritton FY19 production guidance 1. Realise value from attractive portfolio of of 24.5kt of copper at C1 Cash Cost of organic growth opportunities A$2.75-2.90/lb 2. Continue exploration on the
Slide 24: Appendices
Appendices 24
Slide 25: Board and Management
Appendix Board and Management Name & Management Description Experienced mining executive with a career spanning more than 25 years, primarily in the gold industry Held various executive roles in South Africa, PNG, Fiji and Australia for a number of leading gold companies, including Emperor Gold
Slide 26: Reported Mineral Resource
Appendix Reported Mineral Resource Tritton Tenement Package (30 June 2017)(1) Measured Indicated Inferred Total Resource Cut‐off Project Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (%Cu) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) T
Slide 27: Reported Ore Reserve
Appendix Reported Ore Reserve Tritton Tenement Package (30 June 20171,2,3) Tritton Tenement Package (30 June 2017)(1)(2)(3) Proven Probable Ore Reserve Cut‐off Project Type Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal Tonnes Cu grade Cu metal (%Cu) (kt) (%) (kt) (kt) (%) (kt) (kt) (%) (kt) Trit
Slide 28: Key Risks
Appendix Key Risks Investing in the Company involves risk. There are factors, both specific to the Company and of a general nature, which may affect the future operating and financial performance of the Company. Some of these factors can be mitigated by appropriate commercial action. However, many a
Slide 29: Key Risks
Appendix Key Risks Contractual and Joint Venture Risk The Company’s ability to efficiently conduct its operations in a number of respects depends upon third party product and service providers and contracts. Accordingly, in some circumstances, contractual arrangements have been entered into by the C
Slide 30: International Offer Restrictions
Appendix International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sol
Slide 31: International Offer Restrictions
Appendix International Offer Restrictions New Zealand The New Securities are not being offered to the public within New Zealand other than to existing shareholders of the Company with registered addresses in New Zealand to whom the offer of these securities is being made in reliance on the Financial
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