Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Diggers & Dealers Mining Forum 2024
33 slides from Ardea Resources's conference presentation, Aug 6, 2024
Slide 1: Diggers & Dealers Mining Forum Presentation (ASX cover letter)
ABN: 30 614 289 342 Registered and Business Office Suite 2, 45 Ord Street West Perth WA 6005 Australia Tel: +61 8 6244 5136 Email: ardea@ardearesources.com.au 6 August 2024 Company Announcements Australian Securities Exchange Level 40 Central Park 152 - 158 St Georges Terrace Perth WA 6000 By Electr
Slide 2: Kalgoorlie Nickel Project - Goongarrie Hub
Kalgoorlie Nickel Project - Goongarrie Hub A multi decade, large scale, low cost nickel-cobalt operation Andrew Penkethman Managing Director & CEO Diggers and Dealers Mining Forum 5 – 7 August 2024 ASX:ARL ASX:ARL
Slide 3: Disclaimer
Disclaimer Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 N
Slide 4: Experienced Board, Supportive Shareholders & Tight Capital Structure
Experienced Board, Supportive Shareholders & Tight Capital Structure Mat Longworth Non-Executive Chair ASX:ARL Experienced across exploration, project evaluation / Shares on Issue 199,682,915 Cash (30 Jun 2024) A$14.8M development including KNP and corporate management Performance Rights 3,316,400 B
Slide 5: Kalgoorlie Nickel Project – Globally Significant Nickel-Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel-Cobalt Resource KNP KNP Goongarrie Hub hosts ~4Mt contained nickel 2 KNPL managing JV. SMM & MC earning 50%1 Rest of KNP – 100% ARL ~2Mt contained nickel 2 plus exploration pipeline incl Ni Sulphide discovery at Kalpini 1. See 29 April 2024 ARL
Slide 6: KNP Goongarrie Hub
Cross Section 669 9364mN Highway KNP Goongarrie Hub KNP Goongarrie Hill Cross Section 666 9600mN Goongarrie South Siberia North Big Four / Scotia Dam Page 5 1. See full tables in Appendix and 5 July 2023 ARL PFS ASX Announcement. 70km to Kalgoorlie-Boulder ASX:ARL
Slide 7: All Nickel Supply Chains are NOT Equal
All Nickel Supply Chains are NOT Equal Sanctions affect Nornickel Kalgoorlie 6 ✓ Nickel Project Goongarrie Hub ✓ Low Risk/Low Concern 4 jurisdiction1 ✓ Large resource, multi-decade operation, robust financial metrics, low Opex - strategic asset attractive to OEMs2 4 New ✓ Complies with IRA, FEOC, EU
Slide 8: Significant Critical Minerals Collaboration
Significant Critical Minerals Collaboration The Goongarrie Hub DFS is the first Critical Minerals collaboration between Australia and Japan, with the project expected to be a multi decade nickel-cobalt operation that provides supply chain diversity, security and meets the high ESG standards expected
Slide 9: What the Partners are Bringing to the Joint Venture
What the Partners are Bringing to the Joint Venture Ardea’s Globally Significant Asset SMM and MC will fully fund the KNP Goongarrie Hub DFS Goongarrie Hub – MRE 4Mt contained Ni & 250Kt contained Co. Ore Reserve of 1.36Mt Will provide technical and commercial input and of contained Ni & 99Kt contai
Slide 10: KNP Goongarrie Hub – Multi Decade, Large Scale Operation
KNP Goongarrie Hub – Multi Decade, Large Scale Operation The KNP Goongarrie Hub will contribute significantly to local, state and national economy and will be an important part of the Australian Nickel sector 40 year 3,000 Jobs Project to Long term supply mine life during Construction support local,
Slide 11: KNP Goongarrie Hub – Large scale, long-life, low-cost Ni-Co operation
KNP Goongarrie Hub – Large scale, long-life, low-cost Ni-Co operation • Goongarrie Hub Ore Reserve2 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years A B • Strong financial
Slide 12: Premium Goethite Nickel-Cobalt Ore - Low Cost Characteristics
Premium Goethite Nickel-Cobalt Ore - Low Cost Characteristics Highway Deposit 17km Goongarrie Hill Typical premium high grade Goethite at Goongarrie South Goongarrie South Big Four / Scotia Dam To Siberia North To Kalgoorlie - Boulder • 25km continuous strike of soft, mainly free-digging premium Goe
Slide 13: KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel
KNP Goongarrie Hub – Shallow, Thick, High-Grade Nickel Goongarrie South - Pamela Jean Deeps Section 666 9600mN AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m AGSR0418* 42m @ 0.67% Ni, 0.04% Co from 30m 56m @ 1.29% Ni, 0.14%Co from 10
Slide 14: KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore
KNP Goongarrie Hub – Mineralised Neutraliser within Highway Ore Highway Section 669 9364mN AHID0012* AHID0012* 20m @ 1.14% AGSR0418 Ni, 0.037% Co & 4g/t Sc from 4m inc 4m @ 2.31% Ni, 0.132% Co & 8g/t Sc from 4m – HPAL feed & inc 8m @ 1.30% Ni, 0.015% Co & 3g/t Sc from 16m – Brown Typical white magne
Slide 15: ESG Credentials Strengthened During PFS
ESG Credentials Strengthened During PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 16: KNP Goongarrie Hub DFS has commenced
KNP Goongarrie Hub DFS has commenced Andrew Penkethman and Matt Read with Sumitomo Metal • KNPL is a 100% subsidiary of Ardea with the Consortium Mining and Mitsubishi Corporation representatives - Niihama Nickel Refinery, Japan June 2024 progressively earning a 50% interest. KNPL holds the Goongarr
Slide 17: Current Nickel output cuts to pressure near term surpluses lower
Current Nickel output cuts to pressure near term surpluses lower • 2023 large nickel surplus led to a drop in the LME nickel price • Higher cost producers have responded Expected by cutting / ceasing production which in Goongarrie Hub production turn has put pressure on supply • Security and continu
Slide 18: Ardea Exploration Pipeline Upside
Ardea Exploration Pipeline Upside Ardea controls ~3,500km2 of tenure in the Eastern Goldfields of WA with unrivalled Critical Mineral exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m) within larg
Slide 19: Key Investment Considerations – For the stand-out Nickel-Cobalt Stock
Key Investment Considerations – For the stand-out Nickel-Cobalt Stock Ardea, Sumitomo Metal Mining (SMM) and KNP is a strategic asset which includes the Mitsubishi Corporation (MC) to form a JV to Goongarrie Hub, (part of JV with SMM & MC), and develop the KNP Goongarrie Hub2. The DFS, remaining KNP
Slide 20: Andrew Penkethman
Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 Our team welcome your questions ardea@ardearesources.com.au ASX:ARL Youtube - Free social media icons A black b
Slide 21: A multi decade, large scale, low cost nickel-cobalt operation: Appendices
Kalgoorlie Nickel Project - Goongarrie Hub A multi decade, large scale, low cost nickel-cobalt operation ASX:ARL Appendices: Full tables and supporting references ASX:ARL
Slide 22: Competent Persons
Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 June 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX MOU Announcements 5 July 2023, 29 September 2023, 21 December 2023 and 31 January 2024. Information in this presentation th
Slide 23: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade The Competent Persons (CP) for the Mineral Resources, are Contained Contained Mr Ian Buchhorn and Mr Andrew Penkethman, both are full-time KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (
Slide 24: KNP Goongarrie Hub MRE
KNP Goongarrie Hub MRE KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Resource Size Ni Co Contained Metal Estimation Details Prospect Category (Mt) (%) (%) Ni (kt) Co (kt) Method Source Year Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Goongarrie The Competen
Slide 25: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub Ore Reserve Summary Ore >= 0.5% Ni Ore > 0.5% NiEq and LOI > 25% Total Ore Ni Co Ni Co Ni Co Ni Co Ni Co Ni Co KNP Goongarrie Hub Ore Reserve Summary consisting of Deposit Mt % % kt kt Mt % % kt kt Mt % % kt kt ore above 0.5% Ni as the feed stock for the processing Proven facility
Slide 26: PFS Key Financial Metrics
PFS Key Financial Metrics Financials PFS defines > 40-year Nickel Revenue A$ M 44,429 operation with strong Cobalt Revenue A$ M 7,880 Revenue - combined A$ M 52,309 financial metrics1: EBITDA LOM A$ M 34,217 EBITDA Annual (average) A$ M 800 • Pre-tax NPV7 of A$7,625M (IRR 30%) EBITDA margin % 65% •
Slide 27: PFS 2023 – Capital Cost Estimate
PFS 2023 – Capital Cost Estimate KNP – Goongarrie Hub Preproduction Cost Category Costs (A$) • Contingency considered appropriate to the level of the capital cost estimate has been included Mining – overheads, mobilisation, 98M • Base date March 2023 pre-strip and other • Refer to 5 July 2023 ARL PF
Slide 28: DFS Key Budget Items
DFS Key Budget Items The Consortium (SMM and MC) will DFS Cost Centre Costs (A$) Drilling 13.4M fund 100% of the KNP Goongarrie Hub DFS costs, up to the agreed Metallurgical Test Work 2.3M Mine Design 15.0M budget of A$98.5 million (incl dewatering & geotechnical) Process Plant Design 28.3M Building
Slide 29: KNP – Goongarrie Hub Superior HPAL Intensity
KNP – Goongarrie Hub Superior HPAL Intensity ✓ Good ore grade + good slurry density = Lower Capex & Opex $$ ✓ Atmospheric leach = stable operation, utilizes saprolite resource ✓ MHP & MSP Product = known technology & good market acceptance Operating data from Australian HPAL Producers Performance Dr
Slide 30: EV Sales Grow – High Nickel Batteries hold increasing share of market
EV Sales Grow – High Nickel Batteries hold increasing share of market • Nickel batteries, which have nearly twice the energy • Nickel batteries hold a large share of the EV density of other materials, are leading EV applications landscape. High Ni cathodes favoured, with in Domestic, Commercial and
Slide 31: Leveraging Material Types
Leveraging KNP Goongarrie Hub Material Types The KNP Goongarrie Hub nickel-cobalt laterite deposits have developed from intense tropical weathering of the Walter Williams Formation Premium Goethite grind (WWF), an olivine cumulate ultramafic volcanic rock, and preferential and beneficiation ore as w
Slide 32: Ardea Receives Improved ESG Certification Score 2024
Ardea Receives Improved ESG Certification Score 2024 2024 ESG Scores for Ardea Ardea’s work practices are aimed at meeting or exceeding the high ESG standards expected by modern society with continuous improvement shown in the two Digbee ESGTM surveys completed Page 31 ASX:ARL
Slide 33: Realising Value from the Kalgoorlie Nickel Project
Realising Value from the Kalgoorlie Nickel Project For MRE see 30 June 2023 ARL MRE announcement. See Appendices in this presentation. Page 32 * See 29 April 2024 ARL, SMM and MC to form a JV to develop KNP Goongarrie Hub ASX Announcement. ASX:ARL
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