Slide 1: Developing European Metal Producer
Gorno Scoping Study | November 2021 | ASX: AZI ACN: 078 510 988 Developing European Metal Producer ALTA ZINC LIMITED ALTA ZINC LIMITED | Investor Presentation |
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains summary information about Alta Zinc Limited (Alta Zinc or the Company). Summary of information: This presentation contains general and background information about the Company’s activities current as at the date of the presentation, and (i) does not pu
Slide 3: Europe's Next Clean Zinc Producer
EUROPE’S NEXT CLEAN ZINC PRODUCER Rönnskär Smelter Kokkola Smelter Alta is committed to becoming a key supplier of clean concentrate to European zinc smelters Harjavalta ▪ Europe & Italy is focussed on the security and sustainability of its metal supply Høyanger Smelter ▪ Europe is currently experie
Slide 4: Gorno, Uniquely Positioned in Italy
GORNO, UNIQUELY POSITIONED IN ITALY Historical operation, idle since 1982, Gorno will be Italy’s first metal mine in 40 years Located within historic high-grade zinc and lead mining province Close proximity to national rail and port infrastructure for distribution to off-takers Significant organic u
Slide 5: Commitment to Sustainable Operation
COMMITMENT TO SUSTAINABLE OPERATION Alta has placed ESG at the heart of the development of Gorno and is driving the project to be a low impact & sustainable operation, with a positive legacy for the local community, Italy and the EU SOCIAL ENGAGEMENT ENVIRONMENTAL STEWARDSHIP SMART MINING ▪ Alta has
Slide 6: Scoping study highlights
Developing European Metal Producer Scoping study highlights* ALTA ZINC LIMITED | Investor Presentation | November 2021 | 6 * Refer to ASX Announcement 24 November 2021
Slide 7: Scoping Study Team
SCOPING STUDY TEAM Owner’s Team Top Tier Italian and International Contractors and Consultants Geraint Harris Managing Director Robert Annett Exploration Consultant Marcello De Angelis Director, Italian Subsidiaries Simone Zanin Chief Geologist, Italy Erika Belotti Regulatory & HSE Coordinator, Ital
Slide 8: Robust Operational Metrics
ROBUST OPERATIONAL METRICS 9 years 7.1% Zn 1.9% Pb 31g/t Ag Initial life of mine (total LOM Payable Zn: 337kt LOM Payable Pb: 78kt LOM Payable Ag: 3.2Moz production – 6Mt ROM) 800kt p.a. 96% 738,240dmt 17-22Mt Mining Rate Zinc Recovery Total dry concentrate produced Defined Exploration Target ALTA Z
Slide 9: Robust Financial Metrics
ROBUST FINANCIAL METRICS $211M 50% 2.5 years $67M p.a. Post-Tax NPV 8 (US$) Post-Tax IRR Payback from first concentrate Ave. Free Cash Flow (US$) YR’26-’31 $114M $0.60/lb $42M $1.49/lb Initial Capital Expenditure (US$) AISC/lb. ZnEq (US$) LOM Sustaining Capex (US$) LME Zinc spot price (US$) ALTA ZIN
Slide 10: Upside Opportunities
UPSIDE OPPORTUNITIES Development of Gorno Resource Further optimisation of cost and operating model ▪ Defined resources open in all directions at district scale ▪ Mine/processing has optionality to scale-up production at relatively low cost ▪ Outlined exploration target of 17Mt - 22Mt ▪ Test work pr
Slide 11: Clear Roadmap to Production
CLEAR ROADMAP TO PRODUCTION Days Elapsed 0 360 720 1080 Expansion and Infill Drilling 1095 Feasibility Study & FEED 360 Order Plant Equipment, Supply & Delivery 300 Arrange & Complete Mine Finance 211 Grant of Monica Mining License 90 Undergound Rehabilitation 466 Lodge & Grant of Construction Permi
Slide 12: Mining and Processing
Developing European Metal Producer Mining and Processing ALTA ZINC LIMITED | Investor Presentation | November 2021 | 12
Slide 13: Quality Resource Underpins Gorno's Future Potential
QUALITY RESOURCE UNDERPINS GORNO’S FUTURE POTENTIAL Major Mineral Resource Upgrade – July 2021 ▪ MRE increased contained Zinc by 3.3x including a 40% increase in grade from 2017 JORC MRE ▪ 7.79Mt at 6.8% Zinc, 1.8% Lead and 32g/t Silver ▪ Current resource significantly underpins the feasibility of G
Slide 14: Project Layout & Infrastructure
PROJECT LAYOUT & INFRASTRUCTURE Gorno is located within close proximity to national infrastructure, providing efficient access to off-takers Concentrates produced at Gorno with be transported by road from concentrate facility to Bergamo rail hub (28km) Power to the project will be provided by existi
Slide 15: Simplified Mine Design
SIMPLIFIED MINE DESIGN First concentrate to be produced in H2 2024 Average production profile 800kt p.a. containing: ▪ 85,000 dmt Zinc concentrate (63% Zn) ▪ 14,000 dmt Lead concentrate (76% Pb & 739g/t Ag) Leveraging existing underground infrastructure to minimise upfront development cost and risk
Slide 16: Smart Processing Design
SMART PROCESSING DESIGN Underground crushing and the use of a modern former factory to house the processing plant, reduce surface construction and visual impact Pre-crushing and sorting of ore significantly decreases processing plant size and energy usage Concentrate slurry pumped to dewatering plan
Slide 17: Clean and Simple Metallurgy
CLEAN AND SIMPLE METALLURGY Process Flowsheet for Gorno concentrator plant. Gorno aims to produce some of the cleanest and Oct 2021 Holland and Holland Consultants. highest grade concentrates available globally From U/G Coarse Secondary Ore Sorters Ore screen & Rejects to U/G mine via portal conveyo
Slide 18: Production Schedule
PRODUCTION SCHEDULE Mine Production Schedule 1,200,000 16.0% 14.0% 1,000,000 12.0% Process Stock Tonnage ROM Zn Grade (%) 800,000 10.0% 600,000 8.0% 6.0% 400,000 4.0% 200,000 2.0% 0 0.0% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 MP : Ore Tonnes MP : Waste Tonnes Zn Grade (%) ALTA Z
Slide 19: Project Economics
Developing European Metal Producer Project Economics ALTA ZINC LIMITED | Investor Presentation | November 2021 | 19
Slide 20: Study Output at 800kt p.a.
STUDY OUTPUT AT 800KT P.A Metrics Units LOM Total/Average Metrics Units LOM Total/Average POST TAX FINANCIAL RESULTS MINING PRODUCTION TARGET Total Ore Production ktonnes 6,037 NPV @ 8% US$M 211.3 Total Waste Production ktonnes 1,191 NPV @ 8% A$M 287.4 Total Mined ktonnes 7,228 IRR % 50.2% Metal Min
Slide 21: LOM Project Economics
LOM PROJECT ECONOMICS OPEX, CAPEX and Sustaining Capital Units Ramp-up Steady State LOM Sensitivity Analysis - US$m NPV 8% (Post Tax) Operating Costs US$ / tonneROM 82.7 86.3 84.2 UG Mining US$ / tonneROM 30.8 42.2 41.0 400 Concentrator Plant US$ / tonneROM 26.9 16.5 16.2 350 378 300 283 On-mine US$
Slide 22: Global Cash Cost Comparison
GLOBAL CASH COST COMPARISON Initial C1 cash cost estimates place Gorno towards the lower bound of the first quartile 7,000 Av. Total Cash Cost (US$/t ZnEq) Q1 6,000 Cash Cost Reduction Potential Forecast Operating Metrics Av. Total Cash Cost (US$/t ZnEq) Q2 • Metallurgical Test-work • C1 Cash Cost:
Slide 23: Leverage to Commodity Prices
LEVERAGE TO COMMODITY PRICES Free Cash Flow once in production Free Cashflow at US$2,600/t Zn 120 Free Cashflow at US$2,850/t Zn 100 $15.4M $15.3M Free Cashflow US$3,250/t Zn 80 $9.6M $9.6M US$m $12.3M $12.4M $12.1M 60 $11.2M $7.7M $7.7M $7.6M $8.8M $7.M 40 $5.5M $5.8M $3.6M 20 $0.9M $0.6M $38.2M $5
Slide 24: Opportunity
Developing European Metal Producer Opportunity ALTA ZINC LIMITED | Investor Presentation | November 2021 | 24
Slide 25: Gorno – Development Timeline
GORNO – DEVELOPMENT TIMELINE Delivering near-term development catalysts Medium Milestones Next Term Achieved Steps Objectives Underground access and development Mining Licence Renewal Commencement of long-term sustainable established, resulting in a low cost/low risk restart production at Gorno EIA
Slide 26: A Strategic Investment Opportunity
A STRATEGIC INVESTMENT OPPORTUNITY Strategic producer of clean concentrate with scalability Strong demand dynamics within European market NPV8 US$211M Robust post-tax initial economics Long-life operation with significant organic upside De-risked asset with robust economics and clear roadmap to prod
Slide 27: Appendix
Developing European Metal Producer Appendix ALTA ZINC LIMITED | Investor Presentation | November 2021 | 27
Slide 28: Corporate & Team
CORPORATE & TEAM Capital Structure A project and corporate team with deep experience Board 291M $23M Operational Team Erika Belotti, Regulatory Coordinator, Italy Shares on issue Market cap Geraint Harris, Managing Director Ms. Belotti hold degrees in foreign languages and literature and has ASX: AZ
Slide 29: Leveraged to the Long-Term Future of Zinc & Cobalt
LEVERAGED TO THE LONG-TERM FUTURE OF ZINC & COBALT ▪ Zinc is the 4th most globally consumed metal 190 ▪ EU smelters have a 300kt p.a. deficit of clean concentrates ▪ Zinc newly added to the US Critical Minerals List 2021 170 ▪ China selling strategic supplies of zinc to curtail price rises ZINC ▪ Hi
Slide 30: Existing UG Access and Processing Plant
EXISTING UG ACCESS AND PROCESSING PLANT ALTA ZINC LIMITED | Investor Presentation | November 2021 |
Slide 31: Mineral Resource Estimate
MINERAL RESOURCE ESTIMATE Mineral Resource Estimate – 15 November 2021 Competent Person Statement JORC Tonnes Zinc Total Lead Total Silver The information in this Report that relates to the Mineral Resources is Domain based on and fairly represents information which has been compiled by Classificati
Slide 32: Competent Person's Statement
COMPETENT PERSON’S STATEMENT The information in this Report that relates to the Mineral Resources is based on and fairly represents information which has been compiled by Mr Dmitry Pertel who is a member of the Australian Institute of Geoscientists. Mr Pertel has sufficient experience relevant to th
Slide 33: Alta Zinc Limited
Alta Zinc Limited ACN: 078 510 988 Level 3, Suite 3.5 9 Bowman Street South Perth, WA 6151 Australia T: +61 (0) 8 9321 5000 E: info@altazinc.com ALTA ZINC LIMITED | Investor Presentation | November 2021 |