Theta Gold Mines Ltd. · ASX:TGM
Theta Gold Mines — Investor Presentation (July 2022)
39 slides from Theta Gold Mines's investor presentation, Jul 28, 2022
Slide 1: Investor Presentation: Feasibility Study for TGME Underground Gold Mine Project
28 July 2022 For personal use only ASX ANNOUNCEMENT (ASX:TGM) Investor Presentation Feasibility Study for TGME Underground Gold Mine Project Theta Gold Mines Limited Theta Gold or the Company ASX TGM OTC TGMGF refers to the Compan s Feasibilit St d FS for the TGME Undergro nd Gold Mine Project annou
Slide 2: First Gold Definitive Feasibility Study
For personal use only FIRST GOLD DEFINITIVE FEASIBILITY STUDY DFS TO RECOVER 1.08Moz Au OVER 12.9 YEARS LOM INITIALLY Definitive Feasibility Study Presentation - July 2022 AT TGME UNDERGROUND MINE 6.1Moz GOLD RESOURCE & GROWING
Slide 3: Disclaimer
Disclaimer For personal use only FORWARD LOOKING AND CAUTIONARY STATEMENTS DISCLAIMER AND COMPETENT PERSONS STATEMENT This presentation may refer to the intention of Theta Gold Mines regarding estimates or future events which could DISCLAIMER be considered forward looking statements. Forward looking
Slide 4: Content
Content Reviving South Africa’s first gold rush For personal use only Slide No. & Description: • 4 Theta Gold Highlights • 6-11 Feasibility Study Highlights & Key Metrics /Economics • 12-13 Capital and Operating Costs • 14 Project Sensitivities • 15-22 Technical Information • 23-24 Project Timelines
Slide 5: Theta Gold Highlights
Theta Gold Highlights Ø HIGH GROWTH GOLD INVESTMENT OPPORTUNITY For personal use only Ø Existing Historic Goldfield - Multiple pre-developed, shallow, high grade historic gold mines – ready to be brought back into production Ø Large, Growing Resource - 6.1Moz gold resource @4.17g/t and continuously
Slide 6: South Africa's Golden Triangle
South Africa’s “Golden Triangle” For personal use only SA host the 3rd largest gold reserves in the world (~6,000T Au) The Transvaal Gold System sits geological on the eastern side of Bushveld Complex the largest layered igneous intrusion on earth. We have already generated and delivered one of the
Slide 7: Key FS Takeaways
Key FS Takeaways1 For personal use only Underground ore mined Peak Funding Metallurgical Project Life 6.46Mt @ 5.95g/t Requirements Recovery 12.9 years Au for 1.24Moz of Theta Gold Mines Limited controls the US$ 77M2 87% contained gold Eastern Transvaal Gold Fields, where South Africa’s gold mining
Slide 8: FS – Key Metrics Base/Ore Reserve Cases
FS – Key Metrics Base/Ore Reserve Cases Description Units Base Case Ore Reserve Case For personal use only Project Targeted Start Date Quarter-yyyy Q1 2023 Q1 2023 Commercial Production Start Date Quarter-yyyy Q2 2024 Q2 2024 Production build up period Months 14 14 Life of mine years 12.9 7.3 Underg
Slide 9: Project Economics at Various Gold Prices – Base Case (USD)
Project Economics at Various Gold Prices – Base Case (USD) Base Forecast For personal use only Project Economics at gold price Unit (USD1,642/oz USD1,500/oz USD1,600/oz USD1,800/oz USD2,000/oz USD2,200/oz LoM Avg) NPV @ 10% (Pre-tax) USDm 324 255 304 402 501 601 NPV @ 10% (Post-tax) USDm 219 174 206
Slide 10: Project Economics at Various Gold Prices – Base Case (AUD)
Project Economics at Various Gold Prices – Base Case (AUD) Forecast For personal use only Project Economics at gold price Unit (USD1,642/ oz USD1,500/oz USD1,600/oz USD1,800/oz USD2,000/oz USD2,200/oz Avg) NPV @ 10% (real) Pre-tax AUDm 432 339 405 536 669 802 NPV @ 10% (real) Post-tax AUDm 292 232 2
Slide 11: FS – Annual Gold Production
FS – Annual Gold Production For personal use only 10
Slide 12: FS – Annual Cashflow Post-tax at US$1,642/oz
FS – Annual Cashflow Post-tax at US$1,642/oz (Base Forecast) Au For personal use only 11
Slide 13: FS - Capital Costs (Project over LOM)
FS - Capital Costs (Project over LOM) For personal use only Description CAPEX Cost Mining Capital ZAR m USD m Sub-Total Initial Mining Capital 358 23.1 Sub-Total Sustaining Mining Capital 573 37.0 Mining Capital Contingency 43 2.8 Total Mining Capital 974 62.9 Plant Capital Sub-Total Initial Plant C
Slide 14: FS - Operating Costs (Project over LoM)
FS - Operating Costs (Project over LoM) For personal use only • Adjusted Operating Costs against the milled tonnes per year ZAR/Milled USD/Milled Operational Cost • The increase in feed tonnes in years 9 to 12 is due to Frankfort mine being mined, and the tonnes tonne tonne reflected are prior to th
Slide 15: FS - Project Sensitivities
FS - Project Sensitivities (Based on real cash flow in USD) For personal use only • Based on the real cash flow calculated in the financial model, a single-parameter sensitivity analyses are used to ascertain the impact on the NPV. • The bars represent various inputs into the model, each being incre
Slide 16: FS - Phase Plant Rendering
FS - Phase 1 Plant Rendering For personal use only 15
Slide 17: FS - Free Milling Ore Process Plant
FS - Free Milling Ore Process Plant WATER RECOVERY For personal use only POND AREA 100 STOCKPILE AREA 100 Designed by OXIDE ROM 2 STAGE 2mm SCREEN 2 STAGE CRUSHING AREA 100 CRUSHING AREA 100 AREA 100 TERTIARY MILL #2 & #3 CRUSHING AREA 200 AREA 100 FLASH FLOAT AREA 300 TAILS THICKENER/ CIL THICKENER
Slide 18: FS - Process Selection and Metallurgical Test Work
FS - Process Selection and Metallurgical Test Work For personal use only Individual Mine % of 1.24M Oz into Mine Test Work Recovery DFS Recovery Used Comments Metallurgical Test Work Schedule Beta 60.4% 87-95% 88% • Beta showed to be amenable to conventional CIL processing with 86-95% recoveries Rie
Slide 19: FS - Mining Units Defined
FS - Mining Units Defined DEVELOPMENT DRILL RIG For personal use only ONE PRODUCTION UNIT: SEVEN PRODUCTION UNITS: • CAN PRODUCE 15-20K t/m (20- • CAN PRODUCE 100-140K t/m 30Koz/a) • Only 80K t/m Plant feed required to MINING FLEET LONG HOLE DRILL RIG produce >160K oz/a) • 2 Dev Drill Rig ($1.6m) •
Slide 20: Strategy to build up to >160,000oz/a Au production profile within 5 years
Strategy to build up to >160,000oz/a Au production profile within 5 years (only 6 of >40 pre-developed mines) For personal use only CURRENT DFS - 90,000 oz/a PHASE >160,000 oz/a PHASE 1 2 • 4 mining production units • Expand to 7 mining production • 45 kt/m Metallurgical plant units • Recommission e
Slide 21: FS - Mining Infrastructure Battery Limits
FS - Mining Infrastructure Battery Limits For personal use only Beta North Frankfort Mine TSF DMS Plant Gold Plant DMS Plant Mine location in relation to Processing Plant Beta South • Beta North – 570m • Beta South – 990m • CDM Mines – 2.7km • Frankfort Mine – 24km • Rietfontein Mine – 39km Dukes Mi
Slide 22: UG Mines targeted first out of potential >40
6 UG Mines targeted first out of potential > 40 For personal use only 5 Solid Growth Potential 2 Modern mining and treatment 3 Develop multiple mines, methodologies enable reaching >160koz/a within low-cost operations (AISC five years, from the resource <US$900/oz) and 1 base of +6Moz reserve expans
Slide 23: Environmental Approvals Progress
ENVIRONMENTAL, SCOPING REPORT SUBMITTED， Environmental Approvals COMMUNITY SUPPORTS Progress MR83 CONTINUES Task Duration Status¹ For personal use only Submit application for EA Q3 2021 ü Submit draft scoping report Q1 2022 ü Specialists EIA Studies Completed Q1 2022 ü DMRE acceptance of final Scopi
Slide 24: Timeline To Production
Timeline To Production Task Description Q2, 2022 Q3, 2022 Q4, 2022 Q1, 2023 Q2 2023 Q3, 2023 Q4, 2023 Q1, 2024 Q2, 2024 For personal use only Definitive Feasibility Study Environmental and Water Approvals ü ü ü ü Gold Plant Construction / Commissioning ü ü ü ü ü Tailings Dam Upgrading ü ü Electrical
Slide 25: Progress towards production
Progress towards production For personal use only Q2 2024 Q2 2023 FIRST GOLD EXECUTION Q1 2023 COMMENCEMENT FINALISE PERMITTING Q4 2022 COMPLETE FUNDING Q3 2022 DFS Note: First gold produced timing will be subject to securing funding and obtaining all necessary regulatory permitting approvals. 24
Slide 26: Corporate Overview
For personal use only OVERVIEW CORPORATE 25
Slide 27: ASX Listing
ASX Listing For personal use only Ordinary Shares ASX: TGM 550m Out-of-the-money unlisted options and 66m management performance rights Market Capitalisation1 ~A$33M (~US$22M) (undiluted) 62% Top 10 shareholding 9% Directors & Management Note: 1 As of 27 July 2022 26
Slide 28: Corporate Directory
Corporate Directory For personal use only BOARD OF DIRECTORS REGISTERED AND PRINCIPLE OFFICE Bill Guy Executive Chairman Level 35, International Tower One Finn Behnken Non-Executive Director Richie Yang Non-Executive Director 100 Barangaroo Avenue Bryon Dumpleton Non-Executive Director Barangaroo, S
Slide 29: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) For personal use only ESG IS INTEGRAL TO THE DEVELOPMENT STRATEGY AND IS BASED ON: • Conservation of biodiversity • Holistic risk management • Responsible production practices • Zero harm approach to health and safety • Positive impact on host communities • E
Slide 30: Compelling Investment Rationale
Compelling Investment Rationale INVESTMENT CASE For personal use only SIZE INVESTOR POTENTIAL GROWTH LOW-COST EXPERIENCED FLEXIBILITY POSITIVE VALUE PRODUCER TEAM SOCIO-ECONOMIC IMPACT +6.1Moz of Gold Undervalued Low-cost expansion +160koz pa (within Production costs Mine build and Multiple entry po
Slide 31: Closing Remarks
Closing Remarks Ø HIGH GROWTH GOLD INVESTMENT OPPORTUNITY – Currently valued as For personal use only exploration company, with first phase gold output reaching 90koz/a within two years Ø Low Capital Requirement – Restart pre-developed, shallow mines and utilise existing tailings facility and plant
Slide 32: Question Time
For personal use only QUESTION TIME WWW.THETAGOLDMINES.COM BILL GUY CHAIRMAN Email: billg@thetagoldmines.com TICKER: TGM (TRADE IN AU$) TICKER: TGMGF (TRADE IN US$) 31
Slide 33: Appendices
For personal use only APPENDICES 32
Slide 34: Combined Minerals Resource Statement (~6.1Moz)
Combined Minerals Resource Statement (~6.1Moz) Combined Mineral Resource For personal use only Resource Classification Type of Operation Tonnage Gold Grade Gold Content Mt g/t Kg koz Underground 0.091 5.37 489 15.7 Measured Open pit Tailings Total Measured 0.091 5.37 489 15.7 Underground 4.774 6.21
Slide 35: Total Mineral Resources of the Mines included in the DFS
Total Mineral Resources of the 4 Mines included in the DFS - Combined as of 1 February 2021 For personal use only Reef Stope Reef Stope Reef Stope Mineral Resource Content Au Content Mine Reef Grade Grade Width width Tonnes Tonnes Classification g/t g/t cm cm cm.g/t Mt Mt kg koz Measured Frankfort B
Slide 36: Mineral Resource Statement – Underground Only (~4.5Moz)
Mineral Resource Statement – Underground Only (~4.5Moz) Mineral Resource Reef Grade Stope Grade Reef Width Stope width Content Reef Tonnes Stope Tonnes Au Content Mine Reef For personal use only Classification g/t g/t cm cm cm.g/t Mt Mt kg koz Measured Frankfort Bevetts 7.13 5.37 73 103 520 0.069 0.
Slide 37: Mineral Resource Statement – Open Pit Only (~1.4Moz)
Mineral Resource Statement – Open Pit Only (~1.4Moz) Reef Grade Reef Width Content Reef Tonnes Au Content Mineral Resource Classification Open Pit Mine Reef For personal use only g/t cm cm.g/t Mt kg koz Hermansburg Eluvial 1.79 0 0 0.505 905 29.1 DG1 Eluvial 2.24 0 0 0.640 1 432 46.0 DG2 Eluvial 0.6
Slide 38: Old plant demolished in preparation for new plant
For personal use only OLD PLANT DEMOLISHED IN PREPARATION FOR NEW PLANT 37 37
Slide 39: Frankfort Mine (Trial Mining - December 2021)
For personal use only FRANKFORT MINE (TRIAL MINING - DECEMBER 2021) 38 38