Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Investor Presentation (May 2023)
49 slides from Aurelia Metals's investor presentation, May 31, 2023
Slide 1: Federation Financing and Equity Raising Presentation
1 FEDERATION FINANCING AND EQUITY RAISING PRESENTATION NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX Code: AMI This presentation has been authorised for release to the ASX by the Board of Aurelia Metals
Slide 2: Important Notices and Disclaimer
2 IMPORTANT NOTICES AND DISCLAIMER AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION This investor presentation (Presentation) has been dated 31 May 2023 and has been prepared and authorised by Aurelia Metals Limited (ACN 108 476 384) (Aurelia). This Presentation has been prepared in relatio
Slide 3: Important Notices and Disclaimer
3 IMPORTANT NOTICES AND DISCLAIMER AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION NON-IFRS FINANCIAL INFORMATION Investors should be aware that certain financial measures included in this Presentation are “non-IFRS financial information” under ASIC Regulatory Guide 230: “Disclosing non-IF
Slide 4: Important Notices and Disclaimer
4 IMPORTANT NOTICES AND DISCLAIMER AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION PAST PERFORMANCE Past performance and pro forma historical financial information in this Presentation is given for illustrative purposes only, should not be relied on and is not an indication of future perfo
Slide 5: Important Notices and Disclaimer
5 IMPORTANT NOTICES AND DISCLAIMER AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION The Underwriters, in conjunction with their respective affiliates, are acting in the capacity as such in relation to the Offer and will receive fees and expenses for acting in this capacity. Affiliates of th
Slide 6: Investment Highlights
6 INVESTMENT HIGHLIGHTS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 1 2 3 Fully funded to deliver the Great Cobar to follow Utilisation of existing Cobar Federation Project providing additional high-grade Basin infrastructure one of Australia's highest grade base copper production with
Slide 7: Table of Contents
7 TABLE OF CONTENTS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION SECTION 1: AURELIA SNAPSHOT SECTION 2: TRANSACTION OVERVIEW SECTION 3: FACILITIES TO DELIVER THE FEDERATION PROJECT SECTION 4: DELIVERING FEDERATION AND COBAR BASIN GROWTH SECTION 5: OPERATIONAL DELIVERY AND Q3 PERFORMANCE
Slide 8: Section 1: Aurelia Snapshot
8 SECTION 1: AURELIA SNAPSHOT
Slide 9: Aurelia Snapshot
9 AURELIA SNAPSHOT AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Established production | Capital efficient growth projects | Strategic Cobar Basin infrastructure • 2 x operating, base and precious metals mines with a further plant on care and maintenance in New South Wales • 2 consented
Slide 10: Aurelia Portfolio
10 AURELIA PORTFOLIO AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Two producing mines with strategic infrastructure set to support development of two compelling, base metals projects Established Production Base Near-Term Development Peak Hera Dargues Federation Great Cobar Ownership 100
Slide 11: Aurelia Metals – Today and the Future
11 AURELIA METALS – TODAY AND THE FUTURE AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Aurelia positioned to reweight business towards base metals production with substantial precious metals credits Actual FY22A Revenue Mix by Commodity1 Illustrative Future Revenue Mix by Commodity2 ~45%
Slide 12: Section 2: Transaction Overview
12 SECTION 2: TRANSACTION OVERVIEW
Slide 13: Transaction Overview
13 TRANSACTION OVERVIEW Transaction to fund Aurelia to deliver Federation development AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION • Remobilisation for Federation Project development planned during June Quarter 2023 with development expected to restart early FY24 Federation Development
Slide 14: Sources and Uses of Funds
14 SOURCES AND USES OF FUNDS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Federation development fully funded • Funding solution for the Federation Project is comprised of: Sources of Funds A$M Institutional Placement 10 – US$24M (~A$36M) Loan Note Advance1 Entitlement Offer 30 – A$65M
Slide 15: Pro Forma Capitalisation and Net Cash Position
15 PRO FORMA CAPITALISATION AND NET CASH POSITION AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Prudent capital structure with extended maturity for the next stage of growth Commentary Pro forma capitalisation and net cash position • Strong balance sheet position to New Replacement fund
Slide 16: Section 3: Financing Facilities to Deliver the Federation Project
16 SECTION 3: FINANCING FACILITIES TO DELIVER THE FEDERATION PROJECT
Slide 17: Trafigura Facilities Highlights
17 TRAFIGURA FACILITIES HIGHLIGHTS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION ✓ Highly competitive funding with no establishment fees ✓ Four-year term extends maturity beyond planned Federation steady-state production ✓ No requirement to draw the Loan Note Advance at financial close m
Slide 18: New Facilities Key Terms
18 NEW FACILITIES KEY TERMS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Key terms of the Trafigura Senior Secured financing package Key terms Loan Note Advance US$24M (equivalent to ~A$36M)1 Performance Bond Facility A$65M Term 4 years2 • Loan Note Advance: Term SOFR + 6.00% Interest a
Slide 19: Section 4: Delivering Federation and Cobar Basin Growth
19 SECTION 4: DELIVERING FEDERATION AND COBAR BASIN GROWTH
Slide 20: Federation Project: A Compelling Investment
20 FEDERATION PROJECT: A COMPELLING INVESTMENT AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Funding solution the final key step to construction of a new high-value mine ✓ One of the highest grade, undeveloped, base metals Resources in Financials4 Australia at ~16.7% ZnEq 1 High grade ✓
Slide 21: Federation: Project Update
21 FEDERATION: PROJECT UPDATE1 AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Refinements since the Feasibility Study Federation NPV Waterfall – Spot Pricing and FX Optimised Mine Plan and Design • Mine plan reworked to schedule earlier stope ore • Optimised mine design for improved opera
Slide 22: Federation Project Timeline
22 FEDERATION PROJECT TIMELINE1 AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Less than 12 months to first stope ore production • Use of existing mills expected to H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1 FY26 H2 FY26 H1 FY27 deliver low capital, low risk PROJECT DEVELOPMENT development and op
Slide 23: Great Cobar Copper Project
23 GREAT COBAR COPPER PROJECT1 AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION A capital efficient, brownfield Cu mine development • Copper Mineral Resource grown 45% since 30 June 2021 to 7.7Mt @ 2.3% Cu, 0.7g/t Au (2.8% CuEq)2 • New satellite underground mine 7km to the Peak plant, acces
Slide 24: Section 5: Operational Delivery and Q3 Performance
24 SECTION 5: OPERATIONAL DELIVERY AND Q3 PERFORMANCE
Slide 25: March Quarter Operating and Financial Results
25 MARCH QUARTER OPERATING AND FINANCIAL RESULTS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION On-track to achieve guidance with improved H2 performance March Group Gold Production (koz) Group Copper Production (kt) FY23 Group Output H1 Actual Quarter Guidance1 100 3.0 Actual 80 2.5 Gold
Slide 26: Organisational Renewal Program
26 ORGANISATIONAL RENEWAL PROGRAM AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION HERA AND FEDERATION PEAK DARGUES Complete Complete Complete NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ✓ New Hera mine plan implemented with ✓ Transition to owner-mining complete ✓ Modification to i
Slide 27: Safe and Sustainable Progression
27 SAFE AND SUSTAINABLE PROGRESSION AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION No recordable injuries in CY23 with strong safety focus during organisational renewal Group Total Recordable Injury Frequency Rate Group Total Recordable Environmental Incident Frequency Rate (12-month movi
Slide 28: Exploration
28 EXPLORATION AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Recent results highlight the value of the tenement package Chesney East Gold Lens 1 Burrabungie (Chesney South) 1 Queen Bee 1 • 10m from existing underground 100m from existing underground • 10km from Peak Mine development deve
Slide 29: Highly Experienced Board and Refreshed Management Team
29 HIGHLY EXPERIENCED BOARD AND REFRESHED MANAGEMENT TEAM AMI: FEDERATION FINANCING AND Focused on releasing the significant value inherent in the Aurelia portfolio EQUITY RAISING PRESENTATION New Executive Management Board of Directors • Mr Quinn has a Bachelor of Engineering (Mining Hons) and • Ap
Slide 30: Section 6: Equity Raising Terms
30 SECTION 6: EQUITY RAISING TERMS
Slide 31: Equity Raising Overview
31 EQUITY RAISING OVERVIEW AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION • A$40M fully underwritten1 equity raising comprising: Offer Structure and Size – ~A$10M institutional placement – ~A$30M 1 for 3.722 accelerated pro rata non-renounceable entitlement offer • ~445M new fully paid or
Slide 32: Equity Raising Timetable
32 EQUITY RAISING TIMETABLE AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Event Date Announcement of the Equity Raising, Placement and Institutional Entitlement Offer opens Wednesday, 31 May 2023 Placement and Institutional Entitlement Offer closes 2:00pm (AEST) Wednesday, 31 May 2023 Tr
Slide 33: Appendix A: Key Risks
33 APPENDIX A: KEY RISKS
Slide 34: Key Risks
34 KEY RISKS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION The Aurelia Group consists of Aurelia and the entities it controls ("Aurelia" or "Group"). This section describes the key business risks of investing in Aurelia together with the risks relating to participation in the Offer which
Slide 35: Key Risks (cont.)
35 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Aurelia routinely prepares internal estimates of future production, operating costs and capital costs for its operating asset s and development projects. Aurelia has developed business plans which forecast metal recoverie
Slide 36: Key Risks (cont.)
36 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION The mining industry in general may be subject to a shortage of suitably experienced and qualified personnel in key technical roles. Attracting and retaining key persons with specific knowledge Management and skills are cr
Slide 37: Key Risks (cont.)
37 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION a. Environment, health and safety regulations, permits Aurelia’s mining and processing operations and exploration activities are subject to extensive laws and regulations governing the protection of the environment, inclu
Slide 38: Key Risks (cont.)
38 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION The members of the Group are party to various contractual arrangements, some of which are material to the operations and reve nue of the Group. There is a risk that these contractual Contractual risk arrangements could be
Slide 39: Key Risks (cont.)
39 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION a. Cash-Generating Unit (CGU) The Group assesses each CGU at each reporting period to determine whether there is any indication of impairment or reversal. Where an indicator of impairment or reversal exists, a formal esti
Slide 40: Key Risks (cont.)
40 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 2.Risks associated with Federation project Aurelia's ability to successfully develop and commercialise the Federation project may be affected by factors including proje ct construction and development delays, long lead ti
Slide 41: Key Risks (cont.)
41 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 3. Offer and generalrisks Any investment in equity capital carries general risks. The trading price of Aurelia's shares on the ASX may fluctuate in lin e with equity capital market movements in Australia and international
Slide 42: Key Risks (cont.)
42 KEY RISKS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Eligible shareholders who do not participate in the Offer, or do not take up their entitlements under the Offer in full, will have their percentage shareholding in Aurelia diluted. Such shareholders will not be exposed to
Slide 43: Appendix B: Foreign Offer Restrictions
43 APPENDIX B: FOREIGN OFFER RESTRICTIONS
Slide 44: Foreign Offer Restrictions
44 FOREIGN OFFERRESTRICTIONS AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 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
Slide 45: Foreign Offer Restrictions (cont.)
45 FOREIGN OFFERRESTRICTIONS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 4. NEW ZEALAND This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not bei
Slide 46: Foreign Offer Restrictions (cont.)
46 FOREIGN OFFERRESTRICTIONS (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION 8. UNITED STATES This document may not be distributed or released in the United States. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the Uni
Slide 47: Appendix C: Summary of Underwriting Agreement
7 47 APPENDIX C: SUMMARY OF UNDERWRITING AGREEMENT
Slide 48: Summary of Underwriting Agreement
48 SUMMARY OF UNDERWRITING AGREEMENT AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION Aurelia entered into an underwriting agreement with the Underwriters in respect of the Offer on 31 May 2023 (Underwriting Agreement). The Underwriters' obligations under the Underwriting Agreement, includi
Slide 49: Summary of Underwriting Agreement (cont.)
49 SUMMARY OF UNDERWRITING AGREEMENT (CONT.) AMI: FEDERATION FINANCING AND EQUITY RAISING PRESENTATION In addition, an Underwriter may terminate the Underwriting Agreement if any of the following events occurs, provided that Und erwriter has reasonable grounds to believe that the event: (a) has or c