Skylark Minerals Limited · ASX:SKM
Skylark Minerals — Shareholder Meeting (November 2020)
23 slides from Skylark Minerals's shareholder meeting presentation, Nov 27, 2020
Slide 1: Annual General Meeting
Annual General Meeting 27 November 2020
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS The following information is not intended to guide any investment decisions in Ironbark Zinc Limited. This material contains certain forecasts and forward-looking information, including possible or assumed future performance, costs, production levels or rates, r
Slide 3: Investment highlights
Investment highlights New Board and 100% owner of the Exposure to Australian gold Global majors Glencore & Management Team bedded Citronen Zn-Pb project in and base metals via Fiery Trafigura ~15% combined down Greenland Creek and Captains Flat shareholders (and (NSW) Offtakers) Bankable Feasibility
Slide 4: Corporate overview
Corporate overview Capital Structure Last 12 months 0.03 125 Shares on Issue 920,409,145 Volume Price 100 0.02 Share price (26 Nov 20) $0.023 75 50 0.01 A$ Mkt Cap $21.1m 25 0 0 Cash (30 Sep 2020) $1.9m 26/11/2019 26/03/2020 26/07/2020 26/11/2020 Board of Directors Dr. Fred Hess Michael Jardine Maci
Slide 5: Shareholder analysis
Shareholder analysis Fatigued holders almost gone – over 75% of the Major Shareholders market capitalisation turned over Top 3 shareholders represent 1/3 of registry and 16% have held long term (or added to their holdings) Danny Segman 11% Trafigura Shares up ~6x since COVID lows (0.004 – 0.023) Gle
Slide 6: 2020: Turnaround year
2020: Turnaround year News of the year 3/3/20 18/5/20 10/9/20 14/10/20 2/11/20 2021 2021 IBG presents @ IBG Repatriates Citronen Fiery Creek IBG Receives Close out pre Progress EXIM Greenland Day, $1.5m from Metallurgy Copper Gold LOI from EXIM FID permitting facility to PDAC Greenland Review Update
Slide 7: Indicative strategic timeline
Indicative strategic timeline Value creation: short term exploration coupled with longer term Citronen development 2021 2022 Q1 Q2 Q3 Q4 H1 H2 Citronen Complete update to Bankable Feasibility Study Progress EXIM application to formal stage Explore possible financial pathways to support EXIM debt Fin
Slide 8: Greenland: Citronen Project
Greenland Citronen Project Greenland 8 AGM Presentation November 2020
Slide 9: Citronen: Time to awaken from hibernation
Citronen: Time to awaken from hibernation Significant investment in 2020 in updating, upgrading and de-risking the development plan Geology, Mining, ESG up Metallurgical Definitive logistics plan End goal delivery of to date for 2020 performance and – port, shipping, 2021 Bankable process flowsheet
Slide 10: Mine plan significantly improved in 2020
Mine plan significantly improved in 2020 Major increase in Zn metal recovery in early years Mine plan made more robust – lowered Zn price assumption to USD1.20/lb, mine development now includes twin production declines 3.3Mtpa run rate confirmed as viable; 14 year mine life* Maiden Ore Reserve decla
Slide 11: Citronen: Towards bridging the funding gap
Citronen: Towards bridging the funding gap Moving to a Financial Investment Decision in H2 2021 2021 Bankable Feasibility Study US EXIM bank vanguard support secured • Serious counter party – first Aus deal since Roy Hill in 2014 • Multi bn invested, strong mining team, pro Greenland, very motivated
Slide 12: Who are EXIM Bank?
Who are EXIM Bank? EXIM Bank is the official Export Credit Agency (ECA) of the United States Government Tier 1 counter party – IBG is EXIM’s first Aus EXIM LOI facility Provide very low cost, 2021 goal = convert Multi tens of billions deal since Roy Hill of USD216m long tenor project to binding faci
Slide 13: Citronen: Why Citronen will be developed
Citronen: Why Citronen will be developed Favourable capital and operating cost structure and comparative risk profile Stable political jurisdiction underpinned by On the starting grid – no impediments to 2021FID strong “rule of law” governance framework World class sized orebody that remains largely
Slide 14: Citronen: The pros far outweigh the cons
Citronen: The pros far outweigh the cons Risks are known and understood, many common development risks are absent Ample precedent Final product well EIA/SIA approvals Project meets operations in high Arctic understood (Mt Isa style granted – no major flora, requirements for low – Red Dog, Polaris, Z
Slide 15: Australia
Australia Copper mineralisation, Fiery Creek Lake George Historic Mine, Captains Flat New South Wales Captains Flat Fiery Creek 15 AGM Presentation November 2020 4
Slide 16: Fiery Creek: under explored, high grade Cu-Au
Fiery Creek: under explored, high grade Cu-Au Significant re-rate opportunity in 2021; effectively zero cost acquisition • Scale, Grade Au opportunity (7km strike; over 650 historic workings) • FCR039: 3.0m @ 6.7g/t Au from 6.0m, including 1.0m @ 16.25g.t Au from 6.0m • FCR095: 4.0m @ 4.0g/t Au from
Slide 17: Captains Flat: Cu, Au, Zn, Pb, Ag
Captains Flat: Cu, Au, Zn, Pb, Ag Right metals, right location Jerangle Drill target zone identified by EM Survey 2020 Jerangle EM survey highlighted drill targets 2021 plan subject to JV partner (Glencore) discussions See ASX release 20 May 2020 *As announced on 20 May 2020. The Company confirms th
Slide 18: Zn market
Zn market • Zn price recently made 12 month highs • Substantial price upside remains vs. Cu (typically recovers earlier in cycle, up ~20% vs. 12 months prior) • Citronen optimised in 2020 at US1.20/lb vs spot today USD1.25/lb 18 AGM Presentation November 2020 4
Slide 19: Strong recovery in Zn price H2 2020
Strong recovery in Zn price H2 2020 Combination of supply and demand side factors 1 year Zinc Spot 1.300 1.200 • Combination of supply disruptions and 1.100 demand uplift in recent months USD / lb 1.000 • Rapid fall in TCs over 2020 (USD315/t in Feb, down to 110/t in Oct^) suggestive 0.900 of underl
Slide 20: Long-term zinc supply-demand balance
Long-term zinc supply-demand balance New mines will be required to meet demand post 2025 Long-term global zinc consumption is estimated to have a CAGR of ~ 1.3% Growth driven by continued urbanisation and industrialisation of the developing world, especially in Asia Demand for zinc in fertiliser pro
Slide 21: Favourable commissioning window
Favourable commissioning window Citronen’s long mine life will be an advantage post commissioning Sources Of Future Mine Production kt Zn Potential commissioning 18000 @ Citronen 16000 14000 12000 10000 8000 6000 4000 2000 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Base Case Production
Slide 22: Closing comments Q&A
Closing comments 1 Work to do but Board 2 Genuinely new (and highly 3 Aus projects are a wild card, confident shareholders’ credible) financing pathway significant upside given patience will soon be being established to move current ASX valuations Q&A rewarded Citronen from developer to producer 22
Slide 23: Contact Ironbark Zinc Limited
Authorised by the Board Contact Ironbark Zinc Limited Michael Jardine Level 3, 22 Railway Terrace, Managing Director SUBIACO 6008 admin@ironbark.gl https://ironbark.gl/
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