Group 6 Metals Limited · ASX:G6M
Group 6 Metals — Investor Presentation (May 2023)
36 slides from Group 6 Metals's investor presentation, May 9, 2023
Slide 1: Equity Raising to Progress the World Class Dolphin Tungsten Project
EQUITY RAISING TO PROGRESS THE WORLD CLASS DOLPHIN TUNGSTEN PROJECT For personal use only The Dolphin Tungsten Mine | Investor Presentation (ASX:G6M)
Slide 2: Investor Presentation Equity Raising May 2023
For personal use only INVESTOR PRESENTATION Equity Raising MAY 2023 The Dolphin Tungsten Mine | Investor Presentation
Slide 3: Key Highlights – Placement Financing and Share Purchase Plan
Key Highlights – Placement Financing and Share Purchase Plan to Raise up to c.A$32 Million 1 Imminent tungsten production – mining has commenced with new processing plant to produce high-quality product. First concentrate on target for Q2 CY20231 For personal use only 2 13 year mine life – with sign
Slide 4: Restart of Australia's Largest and Highest-grade Tungsten Mine
Restart of Australia’s Largest and Highest-grade Tungsten Mine Developing the highest-grade tungsten mine outside of China with a 13 year mine life at Dolphin Tungsten Mine Dolphin Located near the town of Grassy, on the south east coast of King Island, it was first operated in For personal use
Slide 5: Milestones and Near Term Outlook
Milestones and Near Term Outlook For personal use only Timeline 2021 2022 2023 2024 2H2021 May 2022 March 2023 May 2023 2H2023 2H2023 2H2024 Secured funding to progress the Processing plant Commencement of First concentrate Advance downstream Complete Feasibility Mining of high-grade construction of
Slide 6: Location and Existing Infrastructure
Location and Existing Infrastructure Strategic location with access to key tungsten markets For personal use only King Island The Dolphin G6M owns an The Port of Grassy Purchase of Ballarat Acquired land over Tungsten Mine is adjacent property accommodates Clarendon College Bold Head for mine locate
Slide 7: Sales and Production Profiles LOM
Sales and Production Profiles LOM Significant increase in production anticipated years 2 – 3, resulting from higher-grade open-cut ore (averaging 1.2% for 12 months) Annual Sales MTU For personal use only 400 350 300 250 200 150 100 50 - 0. June 23 1. June 24 2. June 25 3. June 26 4. June 27 5. June
Slide 8: Corporate Overview
Corporate Overview 6-Month Share Price and Volume For personal use only 5.0 $0.25 4.5 A$0.17 779.5M 4.0 $0.20 Share Price Shares on Issue @ 28th April 2023 3.5 3.0 $0.15 2.5 A$5.4M A$3.2M 2.0 $0.10 Undrawn Debt Facilities Cash 1.5 @ 31st March 2023 @ 31st March 2023 1.0 $0.05 0.5 - $0.00 A$132.5M A$
Slide 9: Board of Directors and Key Management
Board of Directors and Key Management For personal use only Johann Jacobs Chris Ellis Greg Hancock Keith McKnight Michael Zannes Chairman Executive Director Non-Executive Director Managing Director & CEO CFO Johann has held a number of executive Chris has over 40 years of experience in Greg is Manag
Slide 10: Equity Raising Summary
Equity Raising Summary • Placement for cash consideration of A$21 million (and up to c.A$24 million) to sophisticated, professional and institutional investors and conversion of A$3 million of unsecured debt provided by key shareholders since 31 March 2023 to raise up to c.A$27 million (“Placement F
Slide 11: Construction Impact and Solutions
Construction Impact and Solutions Compelling project economics with a pre-tax NPV of c.A$252m, despite a high-inflationary environment leading to increased construction costs Project Construction Impact and Mitigants Financing Impact and Solutions For personal use only Component Construction Impact
Slide 12: Sources and Uses of Funds
Sources and Uses of Funds Enhanced balance sheet to support Dolphin ahead of first concentrate shipment in May 20231 For personal use only Sources A$m Uses A$m Process plant and Placement proceeds 24.0 – 27.0m 4.9m project management Cost overruns associated with labour and critical construction m
Slide 13: Strong Commitment from Existing Shareholders to Support Placement Financing
Strong Commitment from Existing Shareholders to Support Placement Financing Strong leadership from shareholders Chris Ellis, Richard Chadwick and Dale Elphinstone (“Cornerstones”), having provided since 31 March 2023 For personal use only A$1 million each (A$3 million in aggregate) of unsecured de
Slide 14: Indicative Equity Raising Timeline
Indicative Equity Raising Timeline Event Date For personal use only Announcement of the Placement Financing and the Share Purchase Plan Monday, 8 May 2023 Settlement of New Shares issued under Placement Friday, 12 May 2023 SPP Offer opens Monday, 15 May 2023 Allotment of New Shares issued under Plac
Slide 15: Top Shareholders and Debt
Top 15 Shareholders and Debt Group 6 has benefitted from strong levels of support provided by its largest shareholders, including the provision of flexible debt capital with minimal amortisation requirements ensuring strong alignment across capital classes For personal use only 1. Chris Ellis – Exec
Slide 16: Dolphin Mine Reserves and Resources
Dolphin Mine Reserves and Resources Long mine life with significant exploration upside to potentially extend project life Open-cut Dolphin is the first ore For personal use only Indicated Resource1 body, with significant potential to extend mine life on underexplored land located on the current mini
Slide 17: Low Risk Mining Restart
Low Risk Mining Restart First concentrate on track for Q2 CY20231 • Developed open-cut pit with access to first ore on For personal use only commencement of mining Mining lease valid to 2029 and extendable • Owner operated truck and shovel mining fleet, with mining of material already underway – min
Slide 18: Proven and Optimised Processing Flowsheet
Proven and Optimised Processing Flowsheet Higher recovery, lower cost and low risk Historically proven and simple gravity separation for For personal use only coarse ore separation 60t/hr ore feed rate to produce with additional spare capacity of 15-20% available Optimised fine ore separation
Slide 19: Processing Plant – Dolphin Tungsten Mine
Processing Plant – Dolphin Tungsten Mine For personal use only Fine ore stacker, fine ore bin and tertiary crushing and screening circuit Concentrate dressing, drying and bagging area The Dolphin Tungsten Mine | Investor Presentation 17
Slide 20: Offtake Agreements
Offtake Agreements Higher recovery, lower cost and low risk For personal use only Wolfram Bergbau und Hütten AG – a world leading supplier of tungsten powders and a subsidiary of the US$23 bn market cap A$181M Sandvik Group (STO: SAND) – 35,000 mtu of WO3 per annum for 4 years Traxys, a leading
Slide 21: Tungsten: A Critical Industrial Metal
Tungsten: A Critical Industrial Metal An element of great economic importance Tungsten is ranked by the British Geological Surveys, For personal use only various US Departments, the European Commission, Japan, Russia and Australia as a 'critical' mineral: - Due to its economic importance - Supply
Slide 22: Supply and Demand For Tungsten
Supply and Demand For Tungsten Growing demand and list of new industrial applications Mining and Construction – Primarily used in drill bits, hammers and tunnel-boring Tungsten End-Use (2021) and Key Market Trends 1 For personal use only machines, mining and construction was the most tungsten consum
Slide 23: Tungsten Price History
Tungsten Price history Ammonium paratungstate (or APT) is a white For personal use only crystalline material and is described as the most APT PRICE PER MTU (EU LOW) important raw material for all other tungsten FEB 2018 – FEB 2023 products 550.00 500.00 Tungsten concentrate pricing is referenced
Slide 24: ESG Commitment
ESG Commitment Group 6 Metals is committed to redeveloping the Dolphin Tungsten Mine in a For personal use only responsible and sustainable manner, preserving the environment while also generating jobs, growth and economic returns through the commencement of mining from this asset Project Governance
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Group 6 Metals Limited (“G6M”) as a summary of its Dolphin The Company confirms that it is not aware of any new information that materially affects the Project. By accepting, accessing or reviewing this Presentation, you acknowledge and agree to the
Slide 26: Key Risks
Key Risks Set out below are the principal risks and uncertainties associated with G6M and its subsidiaries, which are likely to have an effect on G6M’s future financial prospects. It is not possible to determine the likelihood of these risks occurring with any certainty. If one or more of these risk
Slide 27: Key Risks
Key Risks (5) Reliance on Key Personnel The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on G6M's Board and executive team. There can be no assurance given that there will be no detrimental impact on G6M if one or more For p
Slide 28: Key Risks
Key Risks (8) Political Risk, Commodity Price Volatility and Exchange Rates Risks Both from its operations and, in the event that G6M achieves exploration success, the revenue that may be derived through the sale of commodities exposes potential income to commodity price and exchange rate risks and
Slide 29: Key Risks
Key Risks (13) COVID-19 Impact The outbreak of COVID-19 pandemic has a material impact on global economic markets. Australia experienced an economic downturn and has been recovering in 2021 and 2022. Uncertainty continues as to the ongoing and future response of government For personal use only auth
Slide 30: Key Risks
Key Risks (16) Geological and Geotechnical There is a risk that unforeseen geological and geotechnical difficulties may be encountered when developing and mining ore reserves, such as unusual or unexpected geological conditions, pit wall failures, rock bursts, seismicity and cave ins. Unforeseen For
Slide 31: Key Risks
Key Risks (21) Reliance on Information Systems G6M relies on computer, information and communications technology and related systems for the purpose of the proper operation of the administrative and compliance aspects of its business. From time to time G6M experiences occasional system interruptions
Slide 32: Key Risks
Key Risks (25) Insurance Arrangements G6M maintains insurance arrangements to protect against certain risks with such scope of coverage and amounts as determined by G6M's board and management, although its insurance policies may not be sufficient to cover all of the potential risks in respect of For
Slide 33: Key Risks
Key Risks General Risks Associated with an Investment in Shares There are general risks associated with investments in equity securities. No assurances can be given that the New Shares will trade at or above the price at which they are issued. None of G6M, its directors or any other person guarantee
Slide 34: Key Risks
Key Risks (3) Allocation of New Shares and Dilution Risk It is intended that certain eligible institutional shareholders may be able to participate in the Placement. For this purpose, an eligible institutional existing holding will be estimated by reference to G6M’s beneficial register as at the dat
Slide 35: For personal use only
JOHANN JACOBS KEITH MCKNIGHT CHAIRMAN MANAGING DIRECTOR & CEO For personal use only +61 (0) 416 125 449 +61 (0) 410 635 251 johannj@g6m.com.au keithm@g6m.com.au @Group6Metals www.g6m.com.au The Dolphin Tungsten Mine | Investor Presentation
Slide 36: Group 6 Metals Limited
GROUP6 METALS LIMITED