Orion Minerals Limited · ASX:ORN
Orion Minerals — Shareholder Meeting (September 2020)
24 slides from Orion Minerals's shareholder meeting presentation, Sep 29, 2020
Slide 1: Bankable, fully permitted & ready to build: Africa's new world-class copper-zinc mine
For personal use only Bankable, fully permitted & ready to build: Africa’s new world-class copper-zinc mine Errol Smart, Managing Director and CEO | PAGE General Meeting of Shareholders - 29 September 2020 ASX/JSE: ORN
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion from estimated or anticipated events or results reflected materially affects the information for the Mineral Resource and Minerals Ltd and its subsidiaries (Orion or Company) and their in such forward-looking
Slide 3: Orion Minerals Investment Snapshot
ORION MINERALS INVESTMENT SNAPSHOT For personal use only • Flagship Prieska Copper-Zinc Project - a globally significant VMS project in Northern Cape Province, South Africa • Bankable - updated BFS following successful optimisation & value engineering • Foundation Phase Mineral Resource – 30.49Mt at
Slide 4: Orion Minerals Corporate Summary
ORION MINERALS CORPORATE SUMMARY For personal use only Capital structure summary Current Post Capital Raising Shares on issue 1 3,246M 3,246M • Primary listing on the ASX Options on issue 238M 268M • Secondary listing on Main Board of the Johannesburg Stock Exchange Cash on hand 2 $1.2M Placement of
Slide 5: Recovering from Pandemic - Delivering Value
RECOVERING FROM PANDEMIC - DELIVERING VALUE For personal use only PCZM Fully Permitted Vardocube Mining Right Granted Onset of the COVID- Revised BFS 19 Pandemic announced PCZM Water Use Licence Approval PAGE 5 Source: Share Data & ASX/JSE websites
Slide 6: Prieska Near-Term, Low-Cost Base Metals Mine
PRIESKA NEAR-TERM, LOW-COST BASE METALS MINE For personal use only 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 - INCREASED TO 12 YEARS IN UPDATED BFS-20 • Initial 12-year, 2.4Mtpa operation ( 2
Slide 7: Large, Simple Orebody Low-Cost Mining
LARGE, SIMPLE OREBODY LOW-COST MINING For personal use only Footwall drive Longhaul stoping sequence PAGE 7
Slide 8: Low-Cost High-Margin Operation
LOW-COST HIGH-MARGIN OPERATION For personal use only Contributors to Low OPEX: Project Cost Metrics Unit Value Unit Value • Brownfields, infrastructure-rich site Average cash operating unit cost (C1) ZAR/t 807 AUD/t 73 • Favourable rock & environmental conditions All-in-sustaining cost per unit ROM
Slide 9: Project Financing Overview
PROJECT FINANCING OVERVIEW For personal use only Majority Senior Secured Project Debt Finance (60%) • Proposals received from seven institutions • includes two specialist development finance institutions • Discussions progressing • To be finalised, based on revised project cash flow outlined in BFS-
Slide 10: Prieska Mine of the Future
PRIESKA MINE OF THE FUTURE For personal use only Implementing a modern operating philosophy (4IR enabled) can contribute to achieving quantum changes in key output parameters that are traditionally slow to improve or have regressed in the local mining industry, including: • Safety and health improve
Slide 11: Improved Project Economics + Strong ESG
IMPROVED PROJECT ECONOMICS + STRONG ESG For personal use only Environmental, Social and Governance (ESG) responsibility embedded in our mine plan • Investing in district water management/security • Benefiting the community • Supporting a water management business (enterprise development) • Focus on
Slide 12: Pathway Targeting 2024 Production
PATHWAY TARGETING 2024 PRODUCTION For personal use only 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 BF
Slide 13: Key Social Impacts of the Proposed Prieska Mine
KEY SOCIAL IMPACTS OF THE PROPOSED PRIESKA MINE For personal use only EMPLOYMENT CREATION • Estimated 1,300 people employed on site during construction • Estimated that 840 people (operational Phase) will be employed • Empirical multiplier effect potentially creates 2,500 - 3,500 associated jobs INC
Slide 14: BEE: Proactively Mining Charter Compliant
BEE: PROACTIVELY MINING CHARTER COMPLIANT For personal use only 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) Tr
Slide 15: Project Significant to South Africa
PROJECT SIGNIFICANT TO SOUTH AFRICA STRONG GOVERNMENT SUPPORT For personal use only South African State President Cyril Ramaphosa congratulates Orion Minerals Ltd CEO Errol Smart on progress at Prieska State President’s Investment Conference – 6 November 2019 PAGE 15
Slide 16: Strategically Positioned Pivotal Leadership Role
STRATEGICALLY POSITIONED PIVOTAL LEADERSHIP ROLE For personal use only • Interest growing in the Northern Cape region as a base/battery metals production hub • RSA government and development finance agencies considering economic stimulus packages to incentivise the sector and all upstream and down-s
Slide 17: Exploration Upside Long Term Opportunity
EXPLORATION UPSIDE LONG TERM OPPORTUNITY For personal use only • The Northern Cape was a large copper producer with >70,000tpa of copper production during 1970-1980’s • The district has produced >2.5million tonnes of copper over past 150 years • Despite its significant base metal endowment, there ha
Slide 18: Exploration Upside Under-Explored Belt
EXPLORATION UPSIDE UNDER-EXPLORED BELT For personal use only Multiple Cu-Zn VMS and Ni-Cu intrusive targets within Orion’s mineral rights PAGE 18
Slide 19: Fraser Range Australia IGO:ORN JV
FRASER RANGE AUSTRALIA IGO:ORN JV For personal use only IGO: ORN PIKE LEG Mawson . Location of Pike Project (IGO: ORN JV) relative to Legend Mining’s recent Mawson Ni-Cu discovery. Pike Project • ORN 30% free-carried by IGO through to first Pre-Feasibility study • 2019 diamond drilling intersected N
Slide 20: Appendices
For personal use only APPENDICES PAGE 20
Slide 21: Prieska Mineral Resource
PRIESKA MINERAL RESOURCE For personal use only Combined Prieska Project Mineral Resource for Repli + Vardocube Tenements (Effective Date: 11 January 2019) Cu Cu Zn Zn Mineral Resource Classification Tonnes (metal tonnes) (%) (metal tonnes) (%) Deep Sulphide Indicated 18,507,000 217,000 1.17 667,000
Slide 22: Prieska Ore Reserve
PRIESKA ORE RESERVE For personal use only Prieska Project Ore Reserves Estimate (Effective Date: 30 April 2020) Cu Zn Cu Equivalent Ore Reserve Deposit Tonnage (Mt) Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Classification (kt) (%) (kt) (%) (kt) (%) Deep Sulphide Probable 14.0 146 1.0
Slide 23: Prieska Project BFS 2020: Executive Dashboard
PRIESKA PROJECT BFS 2020 : EXECUTIVE DASHBOARD For personal use only 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% discou
Slide 24: For further information, contact
For personal use only For further information, contact: Orion Minerals Limited Suite 617, 530 Little Collins Street Melbourne Vic 3000 Australia ASX/JSE: ORN Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au PAGE
Orion Minerals — Shareholder Meeting (September 2020) on 6ix