Entree Resources Ltd · TSX:ETG
Entree Resources — Investor Presentation (May 2024)
22 slides from Entree Resources's investor presentation, May 2024
Slide 1: Partner in the World Class Oyu Tolgoi Underground Copper-Gold Mine
MAY 2024 MAY 2024 YOUR SUBTITLE Lorem ipsum dolor amet, consect adipiscing eliroin cursus YOUR SUBTITLE Lorem ipsum dolor amet, Partner in the World Class consect adipiscing elitroin cursus Oyu Tolgoi Underground Copper-Gold Mine CORPORATE PRESENTATION YOUR SUBTITLE Lorem ipsum dolor amet, TSX: ETG
Slide 2: Cautionary Statement
2 MAY 2024 Cautionary Statement This presentation contains forward-looking information within the meaning of applicable financial performance. While the Company has based this forward-looking information on its Canadian securities laws. expectations about future events as at the date that such infor
Slide 3: Cautionary Statement cont'd
3 MAY 2024 Cautionary Statement cont’d power source for Oyu Tolgoi (or the availability of financing for OTLLC or the Government of Projects (“NI 43-101”). Mongolia to construct such a source) within the required contractual timeframe; sources of All minerals reserves and mineral resources have been
Slide 4: Why Invest
4 MAY 2024 WHY INVEST Entrée Resources is a partner in the world-class Oyu Tolgoi copper-gold project in Mongolia No cash commitments required for development or exploration WORLD-CLASS ASSET LOW RISK WELL FUNDED GROWTH High grade deposits. Characteristics of a royalty. ~US$5.1 M cash balance end On
Slide 5: About Us: Oyu Tolgoi copper-gold project in Mongolia
5 About Us Oyu Tolgoi copper-gold MAY 2024 project in Mongolia Oyu Tolgoi underground copper-gold mine • 4th largest copper mine once all three Lift 1 Panels are in full production (~2030) • High grade / low cost / long life • Close proximity to market (China) • Owned and operated by Rio Tinto and t
Slide 6: Oyu Tolgoi
6 OYU TOLGOI MAY 2024 ▪ The joint venture partnership with OTLLC is known as the Entrée/Oyu Tolgoi JV (EJV) ▪ Entrée holds licenses integral to Oyu Tolgoi on behalf of the EJV 2 ▪ The joint venture agreement governing the partnership and operations on the 1 EJV property came into effect in 2008 ▪ EJ
Slide 7: EJV Deposits: Hugo North Extension & Heruga
EJV Deposits 7 Hugo North Extension (HNE) & Heruga MAY 2024 1. Based on assumptions in the 2021 Technical Report, which are subject to change. 2. Based on information supplied by OTLLC or reported within the 2020 Oyu Tolgoi Feasibility Study (OTFS20) completed in July 1 2020. Mine life includes 4- y
Slide 8: Hugo North Extension Lift 1 & Lift 2
OTLLC – Hugo North SHAFTS: Hugo North - Completed (1,2,5) - In progress (3,4) 8 Extension Lift 1 MAY 2024 & Lift 2 Northeast Longitudinal view Hugo North Extension Lift 1 development expected to commence in H2 2024 LIFT 1 Development Scenarios* Lift 1 Lift 2 (2021 Reserve Case) (2021 PEA) LIFT 2 • 1
Slide 9: High-grade Low-cost
9 EJV – LIFT 1 MAY 2024 High-grade Copper grades of the largest 2021 copper mines* Copper grade % * Per Mining Intelligence https://www.mining.com/j oint-venture/escondida- holds-top-spot-on-list-of- top-copper-mines/ 0.29 0.32 0.36 0.37 0.59 0.81 0.83 0.91 1.07 1.5 **Based on assumptions in the 202
Slide 10: Entrée/Oyu Tolgoi JV Agreement Structure
10 Agreement 2024 MAY2024 Entrée/Oyu Tolgoi JV Structure MAY • Entrée does NOT contribute upfront cash for development capital, exploration or license fees on the EJV property • RATHER, OTLLC contributes Entrée’s share of these expenditures and recognizes a non- recourse loan that bears interest at
Slide 11: Cash Flows – HNE Lift 1 and Lift 2
11 Cash Flows – HNE Lift 1 and Lift 2 MAY 2024 1,2,3 Significant free cash flow Metal prices used for the financial analysis for both the 2021 Reserve Case and the 2021 PEA: copper $3.25/lb, gold $1,591.00/oz, silver $21.08/oz. US$ thousands Lift 1 US$ thousands Lift 2 2021 Reserve Case 2021 PEA 160
Slide 12: Underground Project Development-HNE
OTLLC – Hugo North SHAFTS: - Completed (1,2,5) 12 Underground Project - In progress (3,4) MAY 2024 Development-HNE* ▪ Technical studies for Lift 1 Panel 1 (including HNE) & Panel 2 mine design and schedule optimization completed H1 2023 ▪ Result is de-risked, resilient mine designs that provide a pa
Slide 13: Heruga
13 EJV Deposits MAY 2024 Heruga ▪ 2024 work program: ~8,785 metres diamond drilling in 5 surface holes to increase ore body knowledge and support Order of Magnitude Study ▪ Long-term optionality: to be developed after Hugo North or potentially with large scale mill expansion ▪ Strategic: 93% on EJV
Slide 14: Near Term Catalysts
14 NEAR TERM CATALYSTS MAY 2024 ▪ Potential for rising copper prices due to increasing demand and tightening supply ▪ Ramp-up of Lift 1 underground mine* ▪ Lift 1 Panel 1 (including HNE) mine design completed ➔ improved stability, constructability, operability ▪ First HNE development work expected H
Slide 15: Experienced Leadership
15 Our Team MAY 2024 Experienced Leadership Experience Achievements Roles STEPHEN SCOTT Former executive roles at Rio Tinto and current director of Atalaya 30+ years Global operational and executive experience. President, CEO & Director Mining. Currently a CFO and/or director of several public compa
Slide 16: For more information, please contact
TSX: ETG ◆ OTCQB: ERLFF 16 MAY 2024 For more information, please contact: DUANE LO PHONE Chief Financial Officer 604 687 4777 (office) dlo@EntreeResourcesLtd.com 1 866 368 7330 (toll free) DAVID JAN EntreeResourcesLtd.com Investor Relations djan@EntreeResourcesLtd.com
Slide 17: Appendix
MAY 2024 YOUR SUBTITLE Lorem ipsum dolor amet, consect adipiscing eliroin cursus APPENDIX YOUR SUBTITLE Lorem ipsum dolor amet, consect adipiscing elitroin cursus YOUR SUBTITLE Lorem ipsum dolor amet, consect adipiscing eliroin cursus
Slide 18: Entrée Overview
18 Entrée Overview MAY 2024 Cornerstone Shareholders Ownership CASH BALANCE MARKET CAP (as at May 8, 2024) $5.1M ~$311M Horizon Copper Corp. 24% USD CAD As of Rio Tinto 16% May 3, 2024 March 31, 2024 SHARES OUTSTANDING TSX: ETG ~203M OTCQB: ERLFF May 8, 2024
Slide 19: Mineral Resources & Reserves
19 Entrée/Oyu Tolgoi JV Property MAY 2024 Mineral Resources & Reserves High-grade, Large Resources Effective date of mineral resources is March 31, 2021; effective date of mineral reserves is May 15, 2021. MINERAL RESERVES – HUGO NORTH EXTENSION LIFT 1 Entrée has a 20% carried interest in the Hugo N
Slide 20: 2021 Reserve Case and 2021 PEA Highlights
20 Highlights MAY 2024 2021 Reserve Case and 2021 PEA Metal prices used for the financial analysis for both the 2021 Reserve Case and the 2021 PEA: copper $3.25/lb, gold $1,591.00/oz, silver $21.08/oz. 2021 Reserve Case 2021 PEA Entrée/Oyu Tolgoi JV Property Units (HNE Lift 1) (HNE Lift 2) ENTRÉE AT
Slide 21: Capital Costs
Below: Oyu Tolgoi’s operations. Source: http://ot.mn/ 21 2021 Reserve Case and 2021 PEA 2024 MAY2023 Capital Costs APRIL LOW CAPITAL AND DEVELOPMENT RISK FOR ENTRÉE Financial Highlights (in USD, attributable to Entrée) 2021 Reserve Case 2021 PEA (HNE Lift 1) (HNE Lift 2) Direct Development & Sustain
Slide 22: Operating Costs
22 2021 Reserve Case and 2021 PEA MAY 2024 Operating Costs LOW C1 CASH COSTS AND AISC ATTRIBUTABLE TO ENTRÉE Operating Costs (in USD, attributable to Entrée) 2021 Reserve Case 2021 PEA Units (HNE Lift 1) (HNE Lift 2) Average LOM cash costs after credits (C1) $/lb (payable copper) $0.79 $0.30 Average