Capricorn Metals Ltd · ASX:CMM
Capricorn Metals — Diggers & Dealers 2020
24 slides from Capricorn Metals's conference presentation, Oct 13, 2020
Slide 1: Investor Presentation Diggers and Dealers 2020
INVESTOR PRESENTATION DIGGERS AND DEALERS 2020
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement GENERAL FORWARD LOOKING STATEMENTS The purpose of this presentation is to provide general information about Capricorn Metals Limited (“Capricorn” or the This announcement may contain certain “forward-looking statements” and comments about future events. Forwa
Slide 3: Capricorn Metals - Six Point Investment Thesis
Capricorn Metals - Six Point Investment Thesis 1. Management team – proven mine developers & wealth creators • Samantha Gold, Equigold & Regis Resources • Numerous open pit/CIL projects developed and operated • Enviable equity returns delivered – dividends & tight capital management 2. Karlawinda Go
Slide 4: Corporate Summary
Corporate Summary Capital Structure* ASX Code CMM Shares on issue 343.9 million Unlisted options/rights 22.6 million Share price $1.82 Market Cap $626 million 12 month range $0.85 – $2.37 Cash (as at 30 Sept 2020) $49.3 million Major Shareholders Hawkes Point Holdings 9.99% Directors and Management
Slide 5: Karlawinda, First Class WA Location
Karlawinda, First Class WA Location WA - Premier mining jurisdiction • 60km south east of Newman in Western Australia • Newman is a key iron ore mining town • Mining engineering, suppliers, services • Road access via the major Great Northern Hwy • Multiple flights per day Perth to Newman • Site acti
Slide 6: Karlawinda Gold Project
Karlawinda Gold Project Standout WA greenfields gold development project • 2.1 Moz Total Mineral Resources1,2 • 1.2 Moz Open Pit Ore Reserve1,3 • Annual production target 105,000 - 120,000 ounces • AISC target A$1,140 – 1,190 per ounce Development of the Karlawinda Gold Project progressing well • Si
Slide 7: July 2020 Placement
July 2020 Placement $32.3 million raised from institutional placement to: • Upscale capacity KGP processing plant Increased crushing capacity identified in the final design process of the processing plant by up scaling and modifying equipment selection and associated structures Review indicates
Slide 8: Development Update
Development Update Construction activities progressing • 306-room accommodation village operational • Completion of 44km site access road • Orders placed for all processing equipment with some major equipment already delivered to site • Key project contracts executed including gas transportation, po
Slide 9: Development Update
Development Update Process plant construction Fine ore stockpile preparation Arrival of jaw crusher CIL tank erection Clearing for TSF capmetals.com.au 9
Slide 10: Bibra Mineral Resource and Ore Reserve Growth
Bibra Mineral Resource and Ore Reserve Growth Ore reserves 1.2 million ounces Reserve and Resource Update April 2020 Ore Reserves increase by 35% to 1.2Moz • Mine life increased to over 10 years • Strip ratio reduces from 4.8 to 3.6 Resource increased by 41% to 2.1Moz Gold price used: • Reserve A$1,
Slide 11: Inherent Scope for Mine Life and Reserve Extension
Inherent Scope for Mine Life and Reserve Extension Orebody Geometry & Continuity – Resource to Reserve Conversion Geometry & Continuity Optionality Outlook • Shallow vertical depths (vd): • 937,000oz of MRE not yet in Reserve • Decision revolves around gold price and • Reserve 250m • primarily locat
Slide 12: Metallurgy & Processing
Metallurgy & Processing • Robust processing plant design completed Three stage crushing circuit and single ball mill design Final process plant design identified increasing crushing capacity Decision made to upscale ancillary equipment to achieve higher throughput: 4.5 – 5.0Mtpa in oxide/fre
Slide 13: Metallurgy & Processing
Metallurgy & Processing Conventional processing, high recoveries Excellent metallurgical testwork and results • 92.1% LOM recovery, 45% gravity recoveries in primary ore • Coarse grind size (P80 150μm oxide and 120μm primary) • Low reagent consumptions capmetals.com.au 13
Slide 14: Karlawinda (KGP) Exploration Opportunity
Karlawinda (KGP) Exploration Opportunity Gold in the Pilbara - Iron Ore Country?? Background to the Opportunity • Gold occurrences in WA most commonly associated with Archean (3.8-2.8Ga) age rocks • KGP occurs in the small (>100km wide) Sylvania Dome which is part of the much larger Pilbara Craton (
Slide 15: Unlocking the potential of a new gold camp at KGP
Unlocking the potential of a new gold camp at KGP Time to look up from working on the first mine (Bibra) What do we know about KGP? • CMM owns 2,042km2 of exploration & mining tenure at KGP (>100km E-W) • Tenure hosts significant greenstone belt endowed with economic gold mineralisation (Bibra > 2.1
Slide 16: Once a mill is turning the district potential becomes real
Once a mill is turning the district potential becomes real Exploration Strategy 1. Drill out resources • Extend and convert resources to mine plan • 2019 drill campaign underpinned April 2020 reserve upgrade • Hiatus for now, next drilling on resource will be once ops running 2. Near mine (<15km) dr
Slide 17: Near mine exploration potential
Near mine exploration potential 8 Targets within 15km of Processing Plant Site Near mine is where we have most data • Historical data review in Dec19Q • 8 high-quality targets identified from existing geological, geophysical and geochemical datasets • We know strong geochem & geophysics signature at
Slide 18: Regional Opportunity – we haven’t scratched the surface
Regional Opportunity – we haven’t scratched the surface • Extensive regional tenement package with limited geological information • Large regional tenure holdings (>2,000km2) • Early exploration - geochemical soil sampling, aeromagnetics, geophysics & regolith mapping • Geochem soil sampling startin
Slide 19: Building a long life, high margin, WA focused gold company
Building a long life, high margin, WA focused gold company Karlawinda the platform to grow a substantial gold company Gold Companies/Assets2,3,4 (Bubble Size = Indicative Production p.a.)1 1,700 1,600 Gruyere (100%) Evolution Mining AISC Margin (based on A$2,600/oz) 1,500 Ramelius Duketon Saracen (e
Slide 20: Valuation gap to Australian Mid-tier Producers
Valuation gap to Australian Mid-tier Producers Close the valuation gap through project delivery Gold Companies (Bubble Size = Enterprise Value) 1,800 Ramelius 1,600 1,400 EV/Reserve (A$/oz) Silver Lake 1,200 Evolution 1,000 Northern Star 800 Gold Road Regis Saracen 600 Perseus 400 Capricorn Westgold
Slide 21: A compelling opportunity in the Australian gold sector
Capricorn Metals Ltd (ASX: CMM) A compelling opportunity in the Australian gold sector • Management team – proven mine developers & wealth creators • Karlawinda Gold Project is a long life, high margin, low technical risk project • Development is fully funded and underway • Western Australia – argua
Slide 22: Mineral Resource – Karlawinda Gold Project
Mineral Resource – Karlawinda Gold Project April 2020 Indicated Inferred Total Mineral Resources Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz) Bibra Open Pit 0.3 < 51.5 0.8 1,374 10.8 0.7
Slide 23: Ore Reserve – Bibra Deposit
Ore Reserve – Bibra Deposit April 2020 Proved Probable Total Ore Reserve Gold Gold Gold Gold Gold Gold Tonnes Tonnes Tonnes Deposit Type Cut-Off Grade Metal Grade Metal Grade Metal (Mt) (Mt) (Mt) (g/t) (koz) (g/t) (koz) (g/t) (koz) Bibra Open Pit 0.3 < - - - 39.0 0.9 1,090 39.0 0.9 1,090 Southern Co
Slide 24: Capricorn Metals Ltd (ASX: CMM)
Capricorn Metals Ltd (ASX: CMM) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105