Aurelia Metals Limited · ASX:AMI
Aurelia Metals — Non-Deal Roadshow (March 2017)
20 slides from Aurelia Metals's roadshow presentation, Mar 17, 2017
Slide 1: Corporate Presentation – Investor Road Show March 2017
For personal use only CORPORATE PRESENTATION Investor Road Show - March 2017
Slide 2: Forward Looking Statement
Forward Looking Statement For personal use only This presentation has been prepared by Aurelia Metals Limited (“AMI” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation
Slide 3: Corporate Information
Corporate Information For personal use only ASX Code AMI Market Cap $99M (at 23c/share) Issued Capital 431M Shares 10M options at 1.25c with Pacific Road 6.5M Perf. Rghts Net debt $94M 31 Dec 16 ($107M 30 June 16) Cash $21M (Dec 16) Debt $115M (Dec 16) Key shareholders PacRoad 33.6% Glencore 6.7%, Y
Slide 4: Key Assets – Gold, lead, zinc, silver & copper
Key Assets – Gold, lead, zinc, silver & copper For personal use only Hera Mine (100%) Gold, lead, zinc, silver production Central NSW Commercial Production Started April 15 (2 years into mine life) Gold 47,000 oz production in FY16 Lead 7,600 t production in FY16 Zinc 7,200 t production in FY16 Nyma
Slide 5: Key Assets – Located in the productive Cobar Region
Key Assets – Located in the productive Cobar Region For personal use only Bourke Endeavour Zn/Pb/Ag (Toho) Australia CSA Cu (Glencore) NSW Cobar Nyngan Peak Au/Cu (New Gold) Cobar Nymagee Cu Project Basin Hera Au/Pb/Zn Mine Mallee bull Cu/Pb/Zn project (Peel/CBH) Newcastle ORANGE Parkes Wonawinta Ag
Slide 6: First half FY17 – Highlights
First half FY17 – Highlights For personal use only • Strong H1 FY17 Result • Profit, cash flow & debt reduction • Improved operations • Ore processed up 22% on pcp • Gold recovery to 86.6% • Gold production up 22% on pcp • Strong cash build • Cash build to $21M after voluntary $10M debt repayment •
Slide 7: Strong operating performance
Key Focus – Deliver strong operating performance For personal use only Gravity gold recovery increased from 42% to 62% over the same period 7
Slide 8: Lower operating costs
Key Focus – Deliver lower operating costs For personal use only 8
Slide 9: Low all-in cost
Key Focus – Deliver low all-in cost For personal use only • Competitive Cost profile Dec 16 Qtr: Gold production of 13,427 oz at an AISC of A$821/oz (US$592/oz) A$/oz AMI’s AISC vs ASX Peers – Dec Q’16 Actuals Source: Curran & Co 9
Slide 10: Strong cash margin
Key Focus – Deliver strong cash margin For personal use only • Strong cash flow generation from high-margin operation 10
Slide 11: Consistent production
Key Focus – Deliver consistent production For personal use only 2016 Calendar year gold production of 50,899 oz 11
Slide 12: Reduced net debt
Key Focus – Deliver reduced net debt For personal use only • Debt reduction to provide optionality leading up to 31 Mar 18 • Option to convert up to $75.5M of $115M debt just prior to 31 March 18 • Options to repay/refinance or allow existing debt (covenant light) to run its course Gearing at 31 Dec
Slide 13: Growth in mine life
Key Focus – Deliver growth in mine life For personal use only S N N As built mine development North Pod Stoped areas (purple) Planned Stopes 500 m below surface Planned mine development Target Zone 13
Slide 14: Growth in mine life (North Pod)
Key Focus – Deliver growth in mine life (North Pod) For personal use only New Drilling Results High Grade Nov/Dec16 results Open Up-dip Existing Drill Hole Mineralised Trend NORTH POD High Grade Pb/Zn/Ag LONG SECTION High Grade Gold 400L HRUD407 25m at 11.2g/t Au 2.5% Pb+Zn, 14g/t Ag 450 450L L HRUD
Slide 15: Growth in mine life
Key Focus – Deliver growth in mine life For personal use only Structural Repetition Target Zone • Potential for northern extensions of Hera lode system N North Pod 200m • Utilise downhole geochem and geophysics as tools to Far West Hays North vector to mineralisation Main North Hera Mine Plan Showin
Slide 16: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) For personal use only Nymagee Nymagee Cu/Pb/Zn Copper Project • Historic mine and current resource, located 5km north of Hera Mine • Ability to leverage off Hera N mine infrastructure 5 km Hera Mine Lease boundary 16
Slide 17: Growth in mine life (Nymagee)
Key Focus – Deliver growth in mine life (Nymagee) For personal use only Nymagee Long Section Nymagee Cu/Pb/Zn • Current large (8Mt) relative low grade resource down to Current Resource Shell 500 m below surface • Cu grade 1.2% 300 m below surface • Pb+Zn grade 1% • Scoping Study underway to understa
Slide 18: Growth in mine life (Mine Trend)
Key Focus – Deliver growth in mine life (Mine Trend) For personal use only Mine Corridor • Hera-Nymagee corridor remains highly prospective • The Hera & Nymagee deposits are both marked by prominent gravity highs • Several gravity targets have been defined along 20km of strike • Potential for Hera-N
Slide 19: Shareholder Returns
Key Focus – Deliver Shareholder Returns For personal use only 19
Slide 20: Conclusion
Conclusion For personal use only Strategy to Deliver Generate cash Continuously improve operational performance - Continuous improvement in recovery and throughput - Minimise unit costs - Optimise mine plan (north pod high grade) Reduce net debt Reduce gearing, reduce financial risk - build optional