Aurelia Metals Limited · ASX:AMI

Aurelia Metals — Corporate Update (November 2019)

53 slides from Aurelia Metals's corporate update, Nov 6, 2019

1. Slide 1: Building the Next Mid-Tier Gold and Base Metals Producer

   Building the Next Mid-Tier Gold and Base Metals Producer Investor Site Visit Presentation, November 2019 ASX Code: AMI

2. Slide 2: Forward looking statements

   Forward looking statements This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those

3. Slide 3: Corporate snapshot

   Corporate snapshot ASX code: AMI Share price (04 Nov 2019) $0.51 Shares on issue 873.4m Major shareholders Market capitalisation A$445m Mitsubshi UFJ 8.0% Australian Super 6.1% Board and management Van Eck 5.7% Chairman and Acting CEO Cobb Johnstone Lawrie Conway Susie Corlett Share register composi

4. Slide 4: Senior leadership appointments

   Senior leadership appointments Managing Director & CEO and COO  Dan Clifford appointed Managing Director & CEO  Mining engineer with more than 25 years’ experience in the mining industry  Most recently was Managing Director of ASX-listed Stanmore Coal Limited  Prior experience with Solid Energy,

5. Slide 5: Investment highlights

   Investment highlights Two major processing plants Dominant position in the highly High-margin gold and base with a combined capacity of prospective Cobar Basin metals production profile approx. 1.3Mtpa Strong balance sheet: Upgrade and efficiency projects Recent drilling success A$93m cash and no de

6. Slide 6: Key assets

   Key assets Located in the highly mineralised and productive Cobar Region Bourke Endeavour Zn/Pb/Ag (CBH- Toho) Australia CSA Cu (Glencore) NSW Nyngan Cobar Peak Au/Cu/Pb/Zn Mines Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Federation Zn-Pb-Au-Cu-Ag Wonawinta Ag Mallee Bull Cu/Pb/Zn Project (Pe

7. Slide 7: Core strategy

   Core strategy A mining-for-value approach 1 Optimise existing operations  Increased development rates and Pb/Zn circuit upgrade  Mine life extension and ongoing efficiencies at Hera 2 Focus on returns  Margin over volume or commodity preference  Accelerating access to higher margin material fo

8. Slide 8: Building for extension and growth

   Building for extension and growth Heavy investment phase through current half  September 2019 quarter benefited from grade and throughput increases at Peak  2H CY19 sees major investment in the business: Peak plant upgrade, accelerating underground development and access to Kairos, exploration spe

9. Slide 9: September 2019 quarter dynamics

   September 2019 quarter dynamics Strong gold and base metal production Aurelia Metals Production Summary Units Mar 19 Qtr Jun 19 Qtr Sep 19 Qtr Sep-19 YTD Hera gold produced oz 14,191 13,864 10,535 10,535 Hera gol d s ol d oz 15,161 11,071 12,789 12,789 Hera l ea d produced t 1,330 1,313 2,276 2,276

10. Slide 10: September 2019 quarter dynamics

    September 2019 quarter dynamics Improved Peak performance Peak  11% increase in underground development rates and ore access; targeting further lift from Q3  Increased mill throughput and benefit of high grade ore stocks  High level of concentrate stocks at quarter end; expected to unwind this qu

11. Slide 11: Managing risk

    Managing risk Actively mitigating water allocation risks  Peak requires approx. 780ML/y of water  Traditionally sourced 100% from high security water allocation via Cobar Council  Site has implemented pumping of ground water from New Cobar and water recycling to reduce reliance on high security w

12. Slide 12: A look at FY20: by mine

    A look at FY20: by mine Higher base metals output, lower gold production Peak Hera  Gold production expected to be 52 – 59koz.  Gold production expected to be 33 – 36koz  AISC expected to be higher than FY19; lower Au grade and  AISC expected to be lower than FY19; lower Au grade increased devel

13. Slide 13: A look at FY20: group level

    A look at FY20: group level Investing in the business – guidance on track FY19 actual FY20 outlook Estimated FY20 Group AISC of A$1,050 to A$1,250/oz is based on reference Gold (koz) 118 85 – 95 base and silver metal prices equivalent to those used for the Company’s June 2019 Ore Reserves estimation

14. Slide 14: A look ahead

    A look ahead FY21 and beyond  Annual throughput at Peak in FY21 expected to be approaching nameplate 800ktpa capacity  Accelerated UG development expected to deliver access to base of Kairos towards end of FY20; strong potential for prioritisation and mining of high margin tonnes from Kairos in FY

15. Slide 15: Building value

    Building value 01 02 03 04 Robust operational Upgrade and Near-mine inventory Regional exploration base efficiency projects additions success  Peak: 4 year Reserve life  Peak: Pb/Zn plant  Chronos Extensions,  Federation upgrade Pb/Zn  Hera: 4 year Reserve life  Dominion  Peak: increasing min

16. Slide 16: Building Value in the Cobar Basin

    Regional foothold Highly strategic asset base in the polymetallic Cobar Basin with two major processing plants possessing a combined capacity of 1.3Mtpa Building Value in High margin output Established, high-value gold and base metals production profile the Cobar Basin Leveraging a strategic asset N

17. Slide 17: Peak Mines

    Peak Mines 17

18. Slide 18: Safety at work

    Safety at work Driving the focus  While low severity events, recent TRIFR trend is a key focus  Construction work inside the current operating plant has been well managed (co-operation from all sides)  Key management personnel driving improvement targets over coming year  Renewed focus on doing

19. Slide 19: Social licence to operate

    Social licence to operate Targeting a positive, sustainable local operating presence  Seeking strong community relationships  Quarterly town hall meetings and information sessions  Community Consultative Committee  Funding contributions for local community projects  Event volunteer support  Ef

20. Slide 20: A stellar acquisition

    A stellar acquisition Solid base with high margin highlights  Payback on net A$59M purchase price within 4 months  Reserves provide 4+ year life plus large Resource base delivers significant life extension potential  Strong history of replenishment (we expect to replace reserve depletion in past

21. Slide 21: Operating improvement continuing

    Operating improvement continuing  Contract mining transition in March 2019 quarter  Underground development rates steadily increasing  Progressive throughput ramp-up with significant unlock expected from late FY20  Reducing external water requirements, securing supply options 21

22. Slide 22: Upgrade and efficiency projects

    Upgrade and efficiency projects A year of transition – investing in the business  Ongoing focus on increasing productivity and Peak 2019 Ore Reserves reducing unit operating costs Class Tonnes NSR Au Cu Pb Zn Ag (kt) (A$/t) (g/t) (%) (%) (%) (g/t)  Targeting delivery of a sustainable, long-life Pr

23. Slide 23: Pb/Zn circuit installation

    Pb/Zn circuit installation Unlocking the high-grade base metals prize  Enables treatment of high margin Pb/Zn ore at 800ktpa throughput rate  Separate concentrate streams = higher payabilities  Capital cost estimate remains unchanged A$53M  All major equipment delivered to site and now installed

24. Slide 24: Pb/Zn circuit process flow

    Pb/Zn circuit process flow Unlocking the high-grade base metals prize 24

25. Slide 25: High-margin drilling success

    High-margin drilling success Delineating further high value plant feed  Upper Chronos extension (further 100m), high value Pb/Zn material  High grade Chronos Au now depleted  High margin Kairos material improved with recent drilling  Potential Chronos replacement  Similar geological setting  O

26. Slide 26: Peak: The focus ahead

    Peak: The focus ahead Delivering on the operating and revenue transition 1 Increased development rates  Access to more stoping blocks = higher throughput = lower overall unit costs from late FY20 2 Prioritising access to high margin ore  Residual Chronos Au, now mined  Progressive Chronos trans

27. Slide 27: Southern mine corridor

    Southern mine corridor Perseverance / Chronos Development Peak Development 27

28. Slide 28: Hera Mine

    Hera Mine 28

29. Slide 29: Safety is at the core of our business

    Safety is at the core of our business Continual improvement focus  Although slip in Total Recordable Injury Frequency Rate (TRIFR), safety culture remains strong  3 Recordable injuries in August all occurred within 36 hours, all low severity, all underground, but not systematic  Improved systems

30. Slide 30: Social licence to operate

    Social licence to operate Seeking to deliver mutual benefit  Community a critical stakeholder  Positive and supportive relationship with the Nymagee community (e.g. water provision to mine from surrounding properties)  Funding contributions to key local projects  Hermidale Primary School ‘Yarnin

31. Slide 31: Consistent performance

    Consistent performance Reliable high margin output  Need to regain consistent high performance Hera 2019 Ore Reserves Tonnes NSR Au Pb Zn Ag  Operating at approx. 480ktpa Class (Kt) (A$/t) (g/t) (%) (%) (g/t) Proved 0 0 0 0 0 0  North Pod and Far West Deeps now in Probable Total 1,577 1,577 218 2

32. Slide 32: Challenging months

    Challenging 6 months  Despite slow start, due to high base metal feed grades, still targeting 480ktpa mill throughput  Learning how to maintain plant throughput with high Pb/Zn grade  Change in maintenance strategy being moderated to assess risk (e.g. 9 days equivalent lost)  September 2019 quar

33. Slide 33: Pb/Zn efficiency gains

    Pb/Zn efficiency gains  Increased Pb/Zn concentrate production offsets lower Au production from lower throughput  North Pod mining set to improve base metals production relative to FY19 with North Pod decline broken through providing access to third mining front (i.e.. 2nd in North Pod)  Bulk con

34. Slide 34: Driving productivity

    Driving productivity  Contract mining (Pybar)  Bottom up long hole mining using waste as backfill, and Avoca style  Average development requirement reduced to approx. 150m/month  UG throughput capacity 480ktpa  Target 3 active stoping areas open  Increased rehabilitation costs & requirements i

35. Slide 35: Rehabilitation

    Rehabilitation aurelia METALS Led.

36. Slide 36: North Pod mining commenced

    North Pod mining commenced 36

37. Slide 37: Three active mining fronts

    Three active mining fronts 37

38. Slide 38: Processing layout

    Falcon Jig and Processing layout Concentrate Cyanidation Concentrator Spinners to and Intensive Intensive Leach Filtration and Storage Leach Reactor Reactor Up to 70tph Froth Flotation (480ktpa) Merrill Crowe 400kW Primary & 280kW (Outotec) Roughers Circuit Secondary Tower Mill VSI/Closed Circuit an

39. Slide 39: Ready life extension

    Ready life extension Forecast operating life expected to increase to 2023  Strong drilling results during FY19 outside of Ore Reserve and Mining Inventory boundaries (eg Upper North Pod)  Reduced cost structure and lower development requirements  Development required to set up 3rd mining front in

40. Slide 40: Hera: The focus ahead

    Hera: The focus ahead Driving life and margin 1 Re-capture production and cost performance 2 Testing immediate perimeters of Hera orebody 3 Acceleration of Federation and Athena exploration 40

41. Slide 41: Exploration

    Exploration 41

42. Slide 42: The exploration value driver

    The exploration value driver Significant recent drilling success  Enhanced financial ability and growing geological understanding of controls on mineralisation  High-grade Kairos deposit  High-grade Cu below Kairos  Upper Chronos extensions  Ongoing results at Federation; large-scale, polymetal

43. Slide 43: Cobar Line-of-Lode

    Cobar Line-of-Lode Targeting high margin mineralisation  World-class mining area with long history of discovery  Prospective trend extends over 10 km  Multiple high tonnage and/or high grade deposits along the full strike  Focus on discovery of new high margin Peak/Perseverance-style orebodies 

44. Slide 44: Chronos

    Chronos Significant up-dip potential  High margin Zn-Pb-Au ores [Upper Chronos / Peak Deeps long section]  Recent drilling extends lode more than 100 metres above current resources/reserves  Very strong base metals, including:  19m at 34.1% Pb+Zn & 0.9g/t Au  15m at 35.1% Pb+Zn, 2.3g/t Au  24m

45. Slide 45: Kairos: high-margin drilling success

    Kairos: high-margin drilling success The next Chronos?  Discovered early 2019; directly beneath Peak decline development  Mineralisation style and geological setting similar to Chronos  Open in multiple directions  Very high grade intercepts, including:  16m at 71.6g/t Au & 8.5% Pb+Zn  6m at 1

46. Slide 46: Kairos: high-grade Cu at depth

    Kairos: high-grade Cu at depth Rhyolite hosted, analogous to Peak and Perseverance  New zone of strong copper mineralisation 150m below current Kairos Resource  25m at 3.0% Cu & 9g/t Ag, includes 12m @ 4.1% Cu & 11g/t Ag  Surface drilling program commenced to further test depth potential  High g

47. Slide 47: Hera Regional Exploration

    Hera Regional Exploration Extending Hera’s mine life  Multiple priority exploration targets South of Hera  Geophysical and geochemical anomalism identified  Large scale regional IP survey currently underway  Mineralised intercepts from drilling at Athena, Federation and Dominion 47

48. Slide 48: Hera North Pod

    Hera North Pod Extending Hera’s mine life  High grade Pb-Zn-Au-Ag mineralisation  Highest tonnage ore source at Hera  2018/19 drilling extends lode up-dip, including:  7m at 45.1% Pb+Zn, 229g/t Ag & 0.3g/t Au  6.4m at 43.6% Pb+Zn, 263g/t Ag & 0.3g/t Au  14m at 18.3% Pb+Zn, 188g/t Ag & 0.8g/t A

49. Slide 49: Federation discovery

    Federation discovery Accelerating evaluation work  Very recently discovered (April 2019)  10km south-southwest of Hera  Multiple high grade intercepts include:  18m at 24.7% Pb+Zn, 0.3g/t Au, incl. 7m at 45.0% Pb+Zn & 0.5g/t Au  26m at 16.4% Pb+Zn, 0.1g/t Au, incl. 11.5m at 31.1% Pb+Zn & 0.1g/t

50. Slide 50: Appendix

    ” er Appendix - -«

51. Slide 51: Mineral Resources estimates (June 2019)

    Mineral Resources estimates (June 2019) Peak 2019 Mineral Resources Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Measured 1,919 204 1.7 1.3 0.6 0.7 11 Indicated 7,402 219 1.6 1.3 1.1 1.3 10 Inferred 4,889 207 1.3 1.6 0.5 0.8 7 Total 14,210 213 1.5 1.4 0.9 1.1 9 Utilises A$120/

52. Slide 52: Ore Reserves estimates (June 2019)

    Ore Reserves estimates (June 2019) Peak 2019 Ore Reserves Tonnes NSR Au Cu Pb Zn Ag Class (kt) (A$/t) (g/t) (%) (%) (%) (g/t) Proved 376 181 1.2 1.7 0.3 0.6 11 Probable 2,458 232 2.1 1.0 2.0 2.1 16 Total 2,834 225 2.0 1.1 1.8 1.9 15 Utilises NSR cut-offs of A$150/t (Peak and Perseverance) and A$130/

53. Slide 53: Competent Person(s) Statements

    Competent Person(s) Statements Hera Mineral Resource Estimate Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mi

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