Metals X Limited · ASX:MLX
Metals X — Investor Presentation (July 2018)
45 slides from Metals X's investor presentation, Jul 31, 2018
Slide 1: Equity Capital Raising
Not for release or distribution in the United States Equity Capital Raising July 2018
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Important Notices and Disclaimer This Presentation has been prepared by Metals X Limited (Metals X, MLX or the Company). Summary Information This Presentation contains summary information about the Company’s activities current as at the date of this Presentation. The
Slide 3: Important Notices and Disclaimer (Cont.)
IMPORTANT NOTICES AND DISCLAIMER (CONT.) Not financial product advice or offer Information in this Presentation, including any forecast financial information, should not be considered as financial advice or a recommendation to investors or potential investors in relation to holding, purchasing or se
Slide 4: Summary: Institutional placement to raise ~A$50 million at A$0.65 per share
SUMMARY Institutional placement to raise ~A$50 million at A$0.65 per share ► Placement to institutional and other sophisticated investors via MLX’s unconditional placement capacity under ASX Listing Rule 7.1 (“Placement”) ► Placement proceeds will supplement MLX’s existing cash resources and will be
Slide 5: Transaction Overview
TRANSACTION OVERVIEW ► Placement to institutional and other sophisticated investors to raise ~A$50 million Transaction Structure ► ~76.9 million new shares to be issued under the Placement, representing up to ~13% of MLX’s currently issued share capital ► Shares to be issued under MLX’s available un
Slide 6: Sources and Uses of Proceeds
SOURCES AND USES OF PROCEEDS Placement proceeds to provide additional financial flexibility as Nifty ramps up and to fund organic growth initiatives Sources A$M Uses A$M Nifty – contingency and discretionary improvement capital to support on-going Available cash on hand (as at 30 June 2018) 311 15 d
Slide 7: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Diversified base metals producer with multi-commodity production from quality orebodies in a tier 1 jurisdiction Targeting 40ktpa copper production rate at Nifty by end 2018 to transform MLX into an Australian copper producer of significance High margin, long life tin
Slide 8: Investment Risks
INVESTMENT RISKS There are various risks associated with companies engaged in mining and related activities, including MLX. Many of these risks are outside of the control of the Company. Refer to the Appendix for a more comprehensive summary of potential risks Operational Risks General Risks Abili
Slide 9: Profile
PROFILE An ASX 300 listed Australian diversified base metals company ► Significant copper producer | ~20ktpa copper production growing to 40ktpa Nifty – capital sunk (~A$300 million+) and ramping up Extensive regional exploration holding in WA with 3,220 km2 tenure Mine life extended to 6 year
Slide 10: Corporate Overview
CORPORATE OVERVIEW Capital Structure Pre-capital raising Post-capital raising Board & Management Non-Executive Chairman Peter Newton Shares on issue 612M3 689M4 Managing Director Warren Hallam Share price A$0.713 n/a Executive Director Steve Robinson Market capitalisation A$435M3 A$485M5 Non-Exec Di
Slide 11: Nifty Copper Operations
NIFTY COPPER OPERATIONS A well established copper producer with outstanding near-mine and regional upside 11
Slide 12: Nifty – Overview
NIFTY – OVERVIEW Significant copper producer (~ 20ktpa copper production growing to 40ktpa) ► Acquired late 2016 by off-market takeover ► Established infrastructure - 2.5Mtpa concentrator, large underground mine, 3.5Mt underground conveyor and crusher, camp, sealed airstrip, buildings ► Nifty mine:
Slide 13: Nifty – Work Done to Date
NIFTY – WORK DONE TO DATE Transformation well advanced Reserves ► Reserves increased from approximately 1 year (at acquisition) to 6 years (as at October 2017) ► Infill drilling and detailed design work are well advanced and mine development is being accelerated ► Infill drilling has redefined the g
Slide 14: Nifty – Detailed Drilling Provides More Accurate Definition
NIFTY – DETAILED DRILLING PROVIDES MORE ACCURATE DEFINITION Drilling has significantly improved understanding and confidence in the resource, ensuring UG infrastructure and mining is now being applied in the right areas LEVEL 14 – Previous model LEVEL 23 – Previous model MCU – Middle Carbonate Unit
Slide 15: Nifty – Stopes Fully Designed and in Development
NIFTY – STOPES FULLY DESIGNED AND IN DEVELOPMENT 60% of development in 2018 is outside of historical mining zone New Mining Zones Historical Mining area New Mining zones 20Mt @ 2.49% historically mined 15
Slide 16: Nifty – Regional Exploration
NIFTY – REGIONAL EXPLORATION Large land holding with excellent exploration potential ► 3,220 km2 in the highly prospective Paterson Province with defined copper, cobalt, lead/zinc targets & exploration upside ► Significant historical exploration but minimal spend in the past 20 years ► Current focus
Slide 17: Nifty – Near Mine Prospect: Maroochydore
NIFTY – NEAR MINE PROSPECT: MAROOCHYDORE Substantial Mineral Resource containing 486kt copper and 19kt cobalt ► Located 85km SE of Nifty ► Magnetics, 3D IP and Gravity surveys completed, VTEM survey underway ► Large oxide resource already defined (486kt contained copper, 1.00% Cu grade) with signifi
Slide 18: Renison Tin Operations
RENISON TIN OPERATIONS Australia’s only tin producer and one of only a few listed tin producers in the world Rentails Proposed (planned) Infrastructure Renison Mine & Infrastructure 18
Slide 19: Renison Tin Operations – A massive system with more to come
RENISON TIN OPERATIONS +2 kms Rentails Project Proposed (planned) Infrastructure A massive system with more to come… ► Over 230kt of tin already extracted ► Still open in all directions, already 2km wide x 2km across ► One of the world’s largest and highest grade tin mines ► Ore Reserve: 6.8Mt at 1.
Slide 20: Renison Tin Mine (MLX 50%)
RENISON TIN MINE (MLX 50%) Long life mine expanding from 7ktpa to 8ktpa tin in concentrate ► Production: ~ 7ktpa tin in concentrate at AISC of A$18,500/t tin ► Ore sorter being commissioned to increase production to ~ 8ktpa tin ► Expected AISC margin ~A$8,000 – A$9,000/t based on prevailing tin pric
Slide 21: Renison Tailings Retreatment Project – Rentails (MLX 50%)
RENISON TAILINGS RETREATMENT PROJECT - RENTAILS (MLX 50%) Feasibility delivers robust economics – final approvals underway 22.3 Mt at 0.44% Sn, 0.23%Cu ► Expansion of Renison by re-processing and recovery of tin and copper from historical tailings Ore Reserve: 22.3Mt at 0.44% Sn (99kt tin) ~ 11 Ye
Slide 22: Tin Market
TIN MARKET Energy and technology is expected to drive future demand for tin across storage, generation, infrastructure, electronics and electric vehicles LME AUD Tin Price 2017 Application usage Source: International Tin Association (ITA) 22
Slide 23: Wingellina Nickel-Cobalt Project
WINGELLINA NICKEL-COBALT PROJECT Globally significant nickel-cobalt project, and Australia’s largest undeveloped nickel-cobalt deposit, in the Central Musgrave Region of WA providing exposure to strengthening nickel and cobalt markets 23
Slide 24: Wingellina Current Status
WINGELLINA CURRENT STATUS Development-ready with significant leverage to nickel and cobalt prices ► Ore Reserve of 168Mt at 0.93% Ni and 0.07% Co Mineral Resource containing 2.0Mt nickel and 154kt cobalt ► Feasibility study (±25%) defined 40 year mine life at production rate of 40ktpa nickel and
Slide 25: Wingellina – Only 25% of the Contact Zone Has Been Drilled
WINGELLINA – ONLY 25% OF THE CONTACT ZONE HAS BEEN DRILLED Wingellina Beadell NORTHERN Claude Hills TERRITORY Mann Irrunytju Kalka AUSTRALIA Mafic Ultramafic WESTERN Nickel Oxide Deposit Scarface N 15 km SOUTH AUSTRALIA 25
Slide 26: Wingellina – Significant High Grade Cobalt Zones
WINGELLINA – SIGNIFICANT HIGH GRADE COBALT ZONES Evaluation of high grade cobalt domains at Wingellina is ongoing ► High grade cobalt domains within the current nickel and cobalt resource containing 2Mt nickel and 154kt cobalt include: 29.7Mt at 0.14% Co and 1.15% Ni (1.97% Ni eq.) for 42kt cobalt
Slide 27: Wingellina – Metallurgy Optimisation Testwork Underway
WINGELLINA – METALLURGY OPTIMISATION TESTWORK UNDERWAY Testing of alternative flowsheets to develop low capital start up options. Production of nickel and cobalt sulphates Loaded resin Nickel sulphate Eluted resin Cobalt sulphate 27
Slide 28: Synopsis
SYNOPSIS Metals X is a growing mid-tier, multi-commodity base metals producer with ongoing expansion projects and a significant pipeline of additional growth opportunities ► Three high quality ore bodies – Nifty (copper), Renison (tin) and Wingellina (nickel, cobalt) ► Brownfields expansion underway
Slide 29: Appendix
PROUDLY POSITIONED AS AN AUSTRALIAN MINER ASX:MLX Appendix
Slide 30: Risk Factors
RISK FACTORS There are a number of risks, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operational and financial performance of the Company and the value of its securities. These include risks that are widespread and associ
Slide 31: Risk Factors
RISK FACTORS Renison development risk MLX intends to further develop Renison by the re-processing and recovery of tin and copper from historical tailings and a Definitive Feasibility Study (DFS) is complete. Such development plans will only be pursued if prevailing market conditions support the econ
Slide 32: Risk Factors
RISK FACTORS Dependence on key personnel and labour Retaining and recruiting qualified personnel is critical to MLX's success. If MLX cannot retain and attract qualified personnel, and if those personnel do not operate effectively, it could adversely affect MLX’s current exploration, development and
Slide 33: Risk Factors
RISK FACTORS Litigation and disputes As at the date of this document, MLX is not aware of any material litigation or disputes being undertaken. However, MLX may become involved in litigation or disputes, which could adversely affect the financial position or performance of MLX. Potential changes to
Slide 34: Appendix – Mineral Resources & Ore Reserves - Nifty
APPENDIX – MINERAL RESOURCES & ORE RESERVES - NIFTY 34
Slide 35: Appendix – Mineral Resources - Maroochydore
APPENDIX – MINERAL RESOURCES - MAROOCHYDORE Nifty Copper Operations - Maroochydore Copper Prospect Mineral Resource Statement at 31 March 2016 Copper Cobalt Mineral Resource 1 Grade Copper Grade Cobalt Deposit Mt 2 2 Category % Cu tonnes ppm Co tonnes Measured - - - - - 3 Indicated 40.80 0.92% 375,0
Slide 36: Appendix – Mineral Resources & Ore Reserves - Renison
APPENDIX – MINERAL RESOURCES & ORE RESERVES - RENISON 36
Slide 37: Appendix – Mineral Resources & Ore Reserves - Wingellina
APPENDIX – MINERAL RESOURCES & ORE RESERVES - WINGELLINA Wingellina Nickel-Cobalt Project Mineral Resource Statement at 30 June 2016 Nickel Cobalt Fe2O3 Mineral ‘000 Grade Nickel Grade Cobalt Fe2O3 Fe2O3 Project Resource tonnes % Ni ‘000 t % Co ‘000 t % ‘000 t Category Measured 37,567 0.98% 368 0.07
Slide 38: Appendix – Competent Persons Statements
APPENDIX – COMPETENT PERSONS STATEMENTS Acceptance By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation you acknowledge and agree to the terms set out in the Important Notices and Disclaimer. JORC Compliance Statement - Competent Persons Statement
Slide 39: Appendix – Competent Persons Statements
APPENDIX – COMPETENT PERSONS STATEMENTS Competent Person Statement – Nifty Sulphide Ore Reserve The information in this announcement relating to the Nifty Sulphide Ore Reserve has been extracted from Metals X’s announcement released on 31 May 2017 and is available to view at http://www.metalsx.com.a
Slide 40: Appendix – Competent Persons Statements
APPENDIX – COMPETENT PERSONS STATEMENTS Competent Person Statement – Nifty Sulphide Mineral Resource The information in this announcement that relates to Mineral Resources for the Nifty Sulphide Mineral Resource has been extracted from Metals X’s announcement released on 12 October 2017 and is avail
Slide 41: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS 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 not be distributed to any person, and the New Shares
Slide 42: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS Shares during the period of distribution shall be deemed to have relied on the misrepresentation if it was a misrepresentation at the time of purchase and has a right of action for damages or, alternatively, may elect to exercise a right of rescission against the C
Slide 43: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Ko
Slide 44: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in
Slide 45: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act