Slide 1: 29Metals Entitlement Offer - Investor Presentation (ASX Announcement)
ASX ANNOUNCEMENT Wednesday, 30 August 2023 29Metals Entitlement Offer - Investor Presentation Accompanying this release is an Investor Presentation in connection with the Entitlement Offer announced by 29Metals Limited (‘29Metals’ or, the ‘Company’) earlier today. - ENDS - Authorised for release by
Slide 2: 29Metals Entitlement Offer
29Metals Entitlement Offer INVESTOR PRESENTATION 30 August 2023 NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 3: Important information
Important information This investor presentation (‘Presentation’) is dated 30 August 2023 and has been prepared by 29Metals Limited (ABN 95 650 096 094) (the ‘Company’) in relation to an offer of shares in the Company (‘New Shares’) under an accelerated pro rata non-renounceable entitlement offer (c
Slide 4: Important information
Important information FINANCIAL INFORMATION All financial information in this Presentation is in Australian dollars ($ or AUD) unless otherwise stated. This Presentation includes certain pro forma financial information. Any such pro forma historical financial information provided in this Presentatio
Slide 5: Important information
Important information EXPLORATION RESULTS, AND MINERAL RESOURCES AND ORE RESERVES ESTIMATES As an Australian public company with securities listed on the ASX, 29Metals is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX Listi
Slide 6: Contents
Contents 1. Company Overview 2. Capricorn Copper Recovery 3. Golden Grove Outlook 4. Equity Raising Overview Appendix A – Asset Overviews Appendix B – Key Risks Appendix C – International Offer Restrictions Appendix D – Underwriting Agreement Summary NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 7: Company Overview
1 Company Overview NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 8: Investment Highlights
Large Metal Contained metal in Mineral Resources estimates of: Investment • 2.24Mt copper, 2.47Mt zinc, 1.32Moz gold, 78Moz silver, 153kt lead and 22kt cobalt1 Endowment Orebodies remain open – highly responsive to step out drilling Highlights Copper Focused 29 Production focus 30 Zn Current by-prod
Slide 9: Company Update
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Company Update Phased restart of Capricorn Copper commenced, with restart of production on 1 August at Mammoth and Greenstone H1 2023 results were impacted by the extreme weather event at Capricorn Copper in March 2023 29Metals Half-Year Copper a
Slide 10: Comprehensive Funding Plan
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Comprehensive Funding Plan Expected to fully fund the Capricorn restart, comprising $151m entitlement offer and amended corporate debt facilities 29Metals has launched a $151m underwritten 1 for 2.20 pro-rata accelerated non-renounceable entitlemen
Slide 11: 29Metals Key Milestones
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES 29Metals Key Milestones1 29Metals has made significant progress on the Capricorn Copper Recovery Plan, and after positive engagement with senior lenders and insurers, is expected to deliver on key upcoming milestones post the Entitlement Offer Pre-la
Slide 12: Capricorn Copper Recovery
2 Capricorn Copper Recovery NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Evaporators at Capricorn Copper
Slide 13: Extreme Weather Event and Initial Response: Recap
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Extreme Weather Event and Initial Response: Recap Operations temporarily suspended post extreme rainfall event in early March 2023 – Phased restart commenced on 1 August 20231 Capricorn Copper Aerial View2 Operations suspended during extreme rainfa
Slide 14: Phased Restart of Operations Commenced
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Phased Restart of Operations Commenced Progressive dewatering and rehabilitation of Esperanza South expected to enable targeted full recovery of operations in mid H1-2024 Capricorn Copper Orebodies1 Restart Sequencing 1 Restart of operations with o
Slide 15: Restart of Operations – Financial Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Restart of Operations – Financial Summary1,2 The Phased Restart released to the market in the May Strategic Update is progressing Outlook Mar-Qtr-2023 Actual Jun-Qtr-2023 Actual H2-2023 Estimate3 2023 Guidance To mid H1-20242 Production Ore mined kt
Slide 16: Tailings Capacity
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Tailings Capacity 29Metals is pursuing multiple levers to maintain tailings capacity to a planned life of mine Tailings Storage Facility (“TSF 3”)1 Tailings Strategy2 Tailings Timeline and Overview2,3,4 29Metals currently has ~6 months of remaining
Slide 17: Potential for Ongoing Mine Life Extensions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Potential for Ongoing Mine Life Extensions Recent drilling highlights potential to build equity value through exploration success Esperanza South Resource Extension Drilling (Long Section) New Area of Interest - East of Mammoth Portal Fault Mammoth G
Slide 18: Golden Grove Outlook
3 Golden Grove Outlook NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 19: Golden Grove Mine Sequencing
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Golden Grove Mine Sequencing1 Ramp-up of Golden Grove’s highest-grade orebody Xantho Extended is expected to increase near-term production, with Gossan Valley expected to provide an independent production front from 2026 Golden Grove Orebodies2 Mine
Slide 20: Xantho Extended Growth
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Xantho Extended Growth1 Xantho Extended is the highest-grade ore source at Golden Grove with operational de-risking initiatives to support higher near-term metal production Xantho Extended Ore Mined2,3 (kt) Installed Booster Fans Outlook 1,100 1,100
Slide 21: Gossan Valley
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Gossan Valley1,2 Gossan Valley expected to grow and de-risk production by providing an additional independent, and relatively shallow production front at Golden Grove Overview2,3 Gossan Valley Feasibility Study Highlights3 2021 Mineral Resources es
Slide 22: Equity Raising Overview
4 Equity Raising Overview NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 23: Details of the Equity Raising
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Details of the Equity Raising 29Metals is undertaking an underwritten $151m 1 for 2.20 pro-rata accelerated non-renounceable entitlement offer (the “Entitlement Offer”) Approximately 219.1 million new fully paid ordinary shares to be issued under
Slide 24: Sources and Uses of Funds
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Sources and Uses of Funds Execution of Entitlement Offer expected to strengthen 29Metals’ financial position, fully fund the Capricorn Copper Recovery Plan whilst substantially de-risking the balance sheet Overview Sources and Uses Equity Raising p
Slide 25: Financial Position Post Raising
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Financial Position Post Raising Execution of the funding plan expected to reset 29Metals’ balance sheet and has the support of the Company’s senior lenders Term Loan Amortisation Profile (US$m) Considerations 65 Prior New 60 Constructive engagement
Slide 26: Pro Forma Financial Position
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Pro Forma Financial Position Execution of funding plan is aimed at resetting 29Metals’ balance sheet, providing capital for Capricorn Copper recovery without refinancing of existing debt facilities Key Pro Forma Metrics Unit Current Entitlement Offer
Slide 27: Equity Raising Timetable
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Equity Raising Timetable Event Date Trading halt and announcement of the Entitlement Offer Wednesday, 30 August 2023 Institutional Entitlement Offer closes Wednesday, 30 August 2023 Announce results of Institutional Entitlement Offer Thursday, 31 Aug
Slide 28: Key takeaways
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Key takeaways $151m Entitlement Offer expected to fully fund the Capricorn Copper Recovery Plan and de-risk the balance sheet for key growth initiatives Entitlement Offer supported by 29Metals’ largest shareholder, EMR Capital Investors1, who hav
Slide 29: Appendices
DRAFT 5 Appendices NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES
Slide 30: Appendix A – Capricorn Copper Asset Overview
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix A – Capricorn Copper Asset Overview Long-life and high-grade copper mine located in the prolific Mount Isa Inlier Capricorn Copper Asset Summary Capricorn Copper Location Location QLD, Western fold belt of Mt Isa Inlier, 120km North of Mt Is
Slide 31: Appendix A – Golden Grove Asset Overview
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix A – Golden Grove Asset Overview Long life, high-grade copper, zinc and precious metals mining operation in tier 1 location Golden Grove Asset Summary Golden Grove Location Western Australia. Approx. 250 km east on sealed roads of Location co
Slide 32: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks 29Metals is subject to a variety of risk factors. This section discusses some of the key risks associated with an investment in New Shares in 29Metals. Some of these are specific to its business activities, while others are of
Slide 33: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks c) Underground mining risks 29Metals undertakes mining operations by applying underground mining techniques. Underground mining operations are subject to various risks, including geotechnical risks and seismicity, factors affec
Slide 34: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks delays to development projects and/or deferral of investment decisions by 29Metals; changes to the economic assumptions underpinning 29Metals Ore Reserves and Mineral Resources estimates which, in turn, may result in an adv
Slide 35: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks j) Reliance on contractual counterparties 29Metals is reliant upon contractual counterparties, both in the delivery of 29Metals’ operating and business plans, and the sale of 29Metals’ mineral concentrate products. Contractors
Slide 36: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks As described earlier in this Presentation, 29Metals has been granted certain covenant waivers. If, for any reason, 29Metals requires further covenant waivers in the future there is no guarantee that any covenant waivers which m
Slide 37: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks q) Mineral exploration and project development 29Metals aims to grow its production and extend mine-life through its pipeline of organic growth opportunities. The time between discovery of economically viable deposits to commer
Slide 38: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks u) Geopolitical conditions 29Metals’ business may be impacted directly or indirectly by geopolitical factors outside of 29Metals’ control. For example, under 29Metals’ mineral concentrate sales arrangements, 29Metals’ may be re
Slide 39: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks General Investment Risks (a) Share market conditions The value of quoted securities is subject to fluctuations in response to market forces, which cannot be controlled or accurately predicted, and prevailing market sentiment an
Slide 40: Appendix B - Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix B - Key Risks f) Litigation and dispute risks 29Metals is exposed to possible litigation risks including civil liability claims, criminal claims, environmental and native title matters, health and safety matters, workers’ compensation claims
Slide 41: Appendix C - International Offer Restrictions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - 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 an
Slide 42: Appendix C - International Offer Restrictions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - International Offer 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 a
Slide 43: Appendix C - International Offer Restrictions
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix C - International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither
Slide 44: Appendix D - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix D - Underwriting Agreement Summary Macquarie Capital (Australia) Limited (ABN 79 123 199 548) (Macquarie) and Jarden Australia Pty Ltd (ABN 33 608 611 687) (Jarden) (Joint Lead Managers) are acting as Joint Lead Managers and underwriters to
Slide 45: Appendix D - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix D - Underwriting Agreement Summary p) 29Metals, or a member of the 29Metals group, becomes insolvent; q) there is an event or occurrence, including any statute, order, rule, regulation, directive or request of any government agency which mak
Slide 46: Appendix D - Underwriting Agreement Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendix D - Underwriting Agreement Summary In some of the cases above, a Joint Lead Manager may only terminate its obligations under the Underwriting Agreement if it has reasonable grounds to believe, and does believe, that any of the following even
Slide 47: Unlocking value to empower the future
Unlocking value to empower the future