Orion Minerals Limited · ASX:ORN
Orion Minerals — Africa Down Under Conference 2019
26 slides from Orion Minerals's conference presentation, Sep 4, 2019
Slide 1: Delivering the Prieska Project
For personal use only ASX/JSE: ORN ASX/JSE: ORN DELIVERING THE PRIESKA PROJECT A strong foundation for near-term development and long-term growth PAGE Investor Presentation ADU : September 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion in such forward-looking statements; and not materially changed. Minerals Ltd and its subsidiaries (Orion or Company) and their • may include, among other things, statements regarding Orion confirms that the f
Slide 3: Orion Minerals – Compelling Investment Case
ORION MINERALS – COMPELLING INVESTMENT CASE For personal use only THE OREBODY • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% Zn • Mineral Reserve: 13.62Mt @ 1.06% Cu, 3.18% Zn FOUNDATION PHASE BFS OUTCOMES • Initial 10-year, 2.4Mtpa operation targeting 22ktpa Cu & 70ktpa Zn • Strong op
Slide 4: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT For personal use only • World-class orebody – recorded as a Top 30 global VMS deposit NW Hutchings Shaft SE • Located in Northern Cape Province, 270km south-west of regional capital, Kimberley Current Flooded Water • Established mining region, yet least populo
Slide 5: Prieska: Developing a New Mine in the Footprint of an Old One
PRIESKA: DEVELOPING A NEW MINE IN THE FOOTPRINT OF AN OLD ONE For personal use only Extensive infrastructure already in place: • Primary shafts and underground decline roadways • Sealed access roads to project site • 48km via bitumen road to existing rail siding • Four high-voltage regional lines li
Slide 6: Key Social Impacts of the Proposed Mine
KEY SOCIAL IMPACTS OF THE PROPOSED MINE For personal use only EMPLOYMENT CREATION • Estimated that 846 people (operational Phase) will be employed • Empirical multiplier effect potentially creates 2,500 associated jobs INCREASE IN GROSS DOMESTIC PRODUCT • District GDP increase expected to increase b
Slide 7: Prieska: Mine of the Future
PRIESKA: MINE OF THE FUTURE For personal use only Implementing a modern operating philosophy (4IR enabled) can contribute to achieving quantum changes in key output parameters that are traditionally slow to improve or have regressed in the local mining industry, including: • Safety and health improv
Slide 8: Strong Cashflow
STRONG CASHFLOW For personal use only 900 900 700 700 Cumulative Cash Flow (AUD'm) Net Real Cash Flow (AUD'm) 500 500 300 300 100 100 -100 -100 -300 -300 -500 -500 Net Cash Flow After Tax Cumulative Cash Flow PAGE 8 Refer ASX release 26 June 2019
Slide 9: Prieska BFS Highlights
PRIESKA BFS HIGHLIGHTS For personal use only FOUNDATION PHASE LOM EXTENSION PHASE • Demonstrates compelling investment case to establish • LOM extensions leveraging off Foundation Phase financially robust mine with initial 10-year life development and requiring limited or no o Pre-tax free cash flow
Slide 10: Prieska: Next Steps
PRIESKA: NEXT STEPS For personal use only FOUNDATION PHASE • Orion progressing key commercial work streams: • Permitting • Concentrate marketing • Project financing • Final investment decision targeted in H2 2019 • Commencement of construction targeted for late 2019/early 2020 • Ongoing optimisation
Slide 11: Appendices
For personal use only APPENDICES PAGE 11
Slide 12: Bankable Feasibility Study Dashboard
BANKABLE FEASIBILITY STUDY DASHBOARD For personal use only Price and FX Assumptions Unit Value Financial Performance Unit Value Metal price – Cu USD/t 6,834 NPV pre-tax (post-tax) @ 8.0% discount rate AUD M 574 (408) Metal price – Zn USD/t 2,756 IRR pre-tax (post-tax) % 38% (33%) Exchange rate ZAR:U
Slide 13: Construction Milestones
CONSTRUCTION MILESTONES For personal use only Milestone Description Month 1 10 20 30 33 EVAPORATION DAM & TSF EIA Amendment Process Construct, Line & Commission Evaporation Dams Construct and Commission TSF SHAFT DEWATERING & CONSTRUCTION Surface & Shaft Preparation, Pump Installation 294 Level De-w
Slide 14: Mining Production Profile
MINING PRODUCTION PROFILE For personal use only • Underground mining for majority of the Foundation Phase MILLED ORE SOURCES • Small open pit mined on retreat • Underground mining to commence on completion of: o mine dewatering o shaft refurbishment • Underground establishment program of 23 months b
Slide 15: Mineral Resource
MINERAL RESOURCE For personal use only The Mineral Resources are inclusive of the Mineral Reserves Refer ASX release 26 June 2019 PAGE 15
Slide 16: Mineral Reserve
MINERAL RESERVE For personal use only Refer ASX release 26 June 2019 PAGE 16
Slide 17: Mine Face to Market
MINE FACE TO MARKET For personal use only NaCN & ZnSO4 or SMBS Stockpile Classifying Cyclone Double Deck Secondary Screen Sizing Screen ROM Lime Underground Primary Crusher Prim ary Mill Secondary Mill Existing Mill Feed Bunkers Reagents Reagents Cu Float Collector Collector Conditioning Promoter Pr
Slide 18: A Dominant Land-Holding in an Under-Explored Mineral Belt
A DOMINANT LAND-HOLDING IN AN UNDER-EXPLORED MINERAL BELT For personal use only • Highly prospective yet under-explored mineral province • 22 identified VMS occurrences historically confirmed by major mining houses • Reputed to have the highest concentration of zinc on the African continent*: • Larg
Slide 19: Fraser Range: Searching for a Supernova
FRASER RANGE: SEARCHING FOR A SUPERNOVA For personal use only “We have a conviction the (Nova) system is much larger than we believed, and the increased probability of additional discoveries means we are motivated to significantly increase our spending in 2020.” – IGO Managing Director Peter Bradfor
Slide 20: Corporate Structure
CORPORATE STRUCTURE Capital structure summary Current Post Capital Raising For personal use only Shares on issue1 2,145M 2,145M Primary listing on the ASX. Options on issue2 302M 312M Secondary listing on Main Board of the Johannesburg Stock Exchange. Cash on hand3 $1.4M Current Post capital Signifi
Slide 21: Pivotal $8M Capital Raising and BEE Transaction
PIVOTAL $8M CAPITAL RAISING AND BEE TRANSACTION For personal use only BEE New BEE Entrepreneurs Orion Entrepreneurs 10.7% 100% Safika Black Star Kolobe Nala Resources Minerals Investment Prieska Prieska Northern projects Community Prieska Employees Trust Resources Orion Exploration 1 (PR application
Slide 22: Problem Looming: Copper Supply Chain
PROBLEM LOOMING: COPPER SUPPLY CHAIN For personal use only Cecilia Jamasmie: Mining (Dot) Com 10 April 2018 PAGE 22
Slide 23: Large Copper Mines Have a Very Long Lead Time
LARGE COPPER MINES HAVE A VERY LONG LEAD TIME For personal use only Mining(dot)Com: Visual Capitalist: 23 June 2015 PAGE 23
Slide 24: Add a Major New Demand Driver
ADD A MAJOR NEW DEMAND DRIVER For personal use only Mining(dot)Com: Visual Capitalist: 23 June 2015 PAGE 24
Slide 25: Also Copper Hungry Renewable Energy
ALSO COPPER HUNGRY RENEWABLE ENERGY For personal use only Mining(dot)Com: Visual Capitalist: 23 June 2015 PAGE 25
Slide 26: For Further Information, Contact
For personal use only For further information, contact: Orion Minerals Limited Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au ASX/JSE: ORN Website: www.orionminerals.com.au PAGE