Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Macquarie Critical Minerals Forum 2023
22 slides from Lunnon Metals's conference presentation, Jun 28, 2023
Slide 1: ASX Announcement: Macquarie Critical Minerals Forum Investor Presentation
ASX ANNOUNCEMENT ASX: LM8 Macquarie Critical Minerals Forum Investor Presentation 28 June 2023 Lunnon Metals Limited (ASX:LM8) is pleased to announce that Managing Director, Edmund Ainscough, will present to the Macquarie Critical Minerals Forum today at 2.00pm (Perth time). For personal use only Th
Slide 2: Macquarie Critical Minerals Forum
For personal use only Macquarie Critical Minerals Forum Edmund Ainscough, Managing Director 28 June 2023
Slide 3: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER This Presentation has been prepared by employees of Lunnon Metals Ltd (“Lunnon”, “LM8” or “the Company”) on its behalf and is a summary only, and contains summary information about Lunnon and its activities, which is current as at the date of this Presentation (unless o
Slide 4: Located in the Heart of Kambalda
LOCATED IN THE HEART OF KAMBALDA Kambalda – a renowned nickel district • 60km south of Kalgoorlie, Western Australia. • 1.6Mt nickel metal mined1, unrivalled record of discovery For personal use only Kambalda Nickel Concentrator - 1.6Mtpa concentrator owned by BHP Nickel West, 25km north of Baker Lu
Slide 5: Unrivalled: Kambalda Nickel District
UNRIVALLED : KAMBALDA NICKEL DISTRICT Production - Peers’ Assets^: Past Nickel Production^ Pre-WMC sale vs Total Life of Mine to date Shut Ni % use only 4.3% Mine Mt % Ni Ni kt by 4.1% Silver 3.9% 342 Lake 1986 4.5 2.7 123 203 3.7% For personal 3.5% Fisher 1988 1.7 2.3 38 3.3% 467 101 676 3.1% Foste
Slide 6: Kambalda 'DNA': Decades of Experience
KAMBALDA ‘DNA’ : DECADES OF EXPERIENCE (‘Do Not Assume’) For personal use only GEOLOGY METALLURGY MINE PRODUCTION & MRE METHOD RATE Extensive local Detailed Cut / Drift Quality litho-structural domain-based and over know how test work Paste Fill Quantity 20km of surface drilling, Knowledge of Qualit
Slide 7: Baker Pre-Feasibility – Highlights
BAKER PRE-FEASIBILITY – HIGHLIGHTS 1, 2 Ore Reserve3 LOM Physicals Free Cash Flow2 NPV8 For personal use only 612kt Mining: 17,500 otpm Pre-tax: $196M Pre-tax: $164M2 2.86% Ni Ni in Conc: 15,970t Post tax: $121M2 17.5kt Ni contained LOM: 35 months4 Post tax: $145M Premium Conc. Concentrate Operating
Slide 8: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL Baker Growth Foster: Scale & Synergy • PFS considered • Foster host to 1.2Mt @ Indicated MRE only 3.2% Ni Indicated MRE 1 For personal use only • Indicated extends to • Further 0.7Mt @ 2.5% Ni less than 200 metres Inferred 1 below surface • Located only 3km to • Inferred
Slide 9: Foster: 1.95Mt @ 2.9% Ni (57,000t Ni)
FOSTER : 1.95Mt @ 2.9% Ni (57,000t Ni)* >9km existing decline development Permit Status For personal use only ✓ Dewatering & water discharge ✓ Existing mining lease ✓ Key infrastructure in place Mineral Resource • Available over 500 vertical metres as workings accessed PFS studies • Explore option v
Slide 10: Silver Lake/Fisher: Long South Gap
SILVER LAKE/FISHER : LONG SOUTH GAP • Southern half of the famous For personal use only Kambalda Dome • Adjacent to >0.47Mt of past Ni production^ • 2-3km2 “gap” with no deep drilling • Directly along strike • ASX:MCR’s from ASX:MCR’s AND exciting new East Long Operation Dome Target (292kt metal pro
Slide 11: Portfolio of Assets / Opportunities
PORTFOLIO OF ASSETS / OPPORTUNITIES Near Term (1-2 years) Medium Term (3-5 years) Long Term (5+ years) Baker Ore Reserve For personal use only U/G DD Baker Inferred BAKER U/G DD Baker Down Plunge U/G DD East Trough 85H N75C/S16C FOSTER Warren Warren Down Plunge Foster South HCP In Mine Exploration &
Slide 12: Processing / Off-take
PROCESSING / OFF-TAKE KEY STRATEGIC SOURCE OF NICKEL SULPHIDES For personal use only • Kambalda deposits, as shown by Baker, produce a premium quality concentrate: Baker PFS Unit Value Average nickel grade % Ni 14.6 Average copper grade % Cu 1.3 Average cobalt grade % Co 0.26 Average platinum grade
Slide 13: Future Plans / Next Steps
FUTURE PLANS / NEXT STEPS TO 31 DECEMBER 2023 • Commence PFS at Foster For personal use only o Metallurgy, geotechnical and mine design for Warren, 85H, S16C/N14C, Foster South o Finalise cost to dewater/re-enter Foster decline • Initiate offtake discussions for Baker • Refine Baker PFS, engage with
Slide 14: Corporate Overview
CORPORATE OVERVIEW LUNNON METALS OVERVIEW Liam Twigger Ashley McDonald Corporate structure (ASX: LM8) Non-Executive Chair Non-Executive Director close on 27 June 2023 For personal use only Board 196.5m $0.93 ~$180m Ian Junk Deborah Lord Shares on issue^ Share price Market cap Non-Executive Director
Slide 15: Investment Highlights
INVESTMENT HIGHLIGHTS Growth in forward facing commodity ✓ 4 historical Ni mines, 1 discovery For personal use only ✓ Aggressive drill campaigns, making discoveries ✓ Increasing mineral resources ✓ Expanding asset base Unparalleled Mining Address ✓ Long mining history ✓ Excellent local infrastructur
Slide 16: Important Notice: Competent Persons Statement
IMPORTANT NOTICE The information in this report that relates to nickel geology, nickel Mineral Resources, Exploration Target and Exploration Results, is based on, and fairly represents, information and supporting documentation prepared by Mr. Aaron Wehrle, who is a Member of the Australasian Institu
Slide 17: Mineral Resources and Ore Reserves Reporting
MINERAL RESOURCES AND ORE RESERVES REPORTING This presentation contains references to Lunnon’s Ore Reserves and Mineral Resources, which are shown in a detailed breakdown below. Mineral Resources* as at 31 March 2023 Cut- Indicated Ni Inferred Ni Total Ni For personal use only off Tonnes % Ni Tonnes
Slide 18: Important Notice and Disclaimer
IMPORTANT NOTICE IMPORTANT NOTICE AND AND DISCLAIMER DISCLAIMER ASX Announcements Exploration Results Reporting This presentation contains references to Lunnon's exploration results and previous announcements. The information in this presentation that relates to previous exploration results has been
Slide 19: Appendices
For personal use only Appendices
Slide 20: Kambalda: An Unrivalled Discovery Record
KAMBALDA AN UNRIVALLED DISCOVERY RECORD Channel length vs nickel metal Direct correlation For personal use only • Known channel length is a function of time/exploration effort… • …which also drives metal discovered or mined • 5 of the 6 “shortest” length channels sit within LM8’s portfolio • Why? Du
Slide 21: Key Financial Assumptions
KEY FINANCIAL ASSUMPTIONS Assumption Spot Price or Current Assumption Unit Value Rate (as at 18 May 23) For personal use only Nickel Price1 US$/t 24,000 21,334 Copper Price1 US$/t 7,500 8,302 Cobalt Price1 US$/t 40,000 34,930 Platinum Price1 US$/oz 850 988 Palladium Price1 US$/oz 1,250 1,356 AUD:USD
Slide 22: PFS Financial Outcomes
PFS FINANCIAL OUTCOMES # 140,000 160,000 Measure Unit Outcome 120,000 140,000 Nickel Contained in Concentrate Ni t 15,970 120,000 Average Ni Sold Per Annum t Ni pa 4,100 For personal use only 100,000 Post tax Free Cash Flow (A$M) Cumulative Con Production (t) 100,000 Gross Revenue1 A$M 437 80,000 80
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