AIC Mines Limited · ASX:A1M
AIC Mines — Investor Presentation (July 2024)
43 slides from AIC Mines's investor presentation, Jul 31, 2024
Slide 1: Institutional Investor Roundtable
For personal use only Institutional Investor Roundtable Sydney – 31 July 2024 Melbourne – 1 August 2024
Slide 2: Important Information
Important Information This presentation has been prepared by AIC Mines Limited (ABN 11060156452) (“the Company” or “AIC Mines”) to provide summary information about AIC Mines and its activities at the date of this presentation. The information contained in this presentation does not purport to be co
Slide 3: Agenda
For personal use only Agenda Introduction Aaron Colleran (Managing Director and Chief Executive Officer) Operations Overview Tim Benfield (Chief Operating Officer) Exploration Strategy Mike Taylor (Executive General Manager Exploration) Funding Our Growth Michael Frame (Chief Financial Officer) Grow
Slide 4: Operations Overview
For personal use only Operations Overview Tim Benfield Chief Operating Officer 4
Slide 5: Eloise Copper Mine History
Eloise Copper Mine History Reliable production from a high-grade orebody Production totalling 14.5Mt of ore grading 2.7% copper (Cu) for ~376,000t of copper1 – 26 years of production For personal use only Historic grades up to 4.6% copper Recent discoveries demonstrate significant near-mine an
Slide 6: Eloise Production and Cost
Eloise Eloise Production and Cost FY22 Avg / Total Units FY23 FY24 Metrics (8 months) 32 Months TRIFR 12m mov avg 7.6 16.8 3.2 NA Underground development - capital m 1,324 2,043 1,814 5,180 FY24 achievements Underground development - operating Total development Ore mined m m kt 970 2,294 396 1,239 3
Slide 7: Eloise FY25 guidance
Eloise FY25 guidance FY25 production and cost guidance1 for Eloise is approximately 12,500t Cu and For personal use only 5,000oz Au in concentrate at an AISC of A$5.25/lb Cu and AIC of A$5.50/lb Cu Guidance is similar to what was achieved in FY24 Multiple ore sources de-risk production High-
Slide 8: Jericho Development: Pathway to 20,000tpa copper
Jericho Development Pathway to 20,000tpa copper Jericho transforms Eloise into a cornerstone asset For personal use only − Increases production to over 20,000tpa Cu in concentrate − Expected economies of scale to reduce processing costs − Lower mining costs at Jericho due to shallower ore − Additi
Slide 9: Jericho Development: Link drive underway
Jericho Development Link drive underway Link drive commenced. To be completed over For personal use only ~24 months, reaching first development ore in June 2026 Link drive capital estimated at $50M over FY25 and FY26 Mining at Jericho to ramp-up over ~36 months to deliver a sustainable ore pro
Slide 10: Jericho Resources and Reserves
Jericho Resources and Reserves Open along strike and at depth Jericho Mineral Resources total: 14.1Mt grading 2.0% Cu and 0.4g/t Au containing 286t Cu and 177koz Au (at 31 December 2023) For personal use only Jericho Ore Reserve estimate: 3.2Mt grading 1.9% Cu and 0.4g/t Au containing 61kt Cu an
Slide 11: Eloise Plant Expansion: Detailed design work underway
Eloise Plant Expansion Detailed design work underway Simple processing plant expansion to 1.1Mtpa from For personal use only current 725,000tpa capacity to accommodate new Jericho ore Capital cost estimate for plant expansion is estimated at $60M over 36 months $5.0M to complete plant detailed
Slide 12: Eloise Plant Expansion: FY25 key activities
Eloise Plant Expansion FY25 key activities New kitchen due for Power Station upgrade #1 to be completed – power to commissioning in September For personal use only Jericho mine and the Eloise bulk air coolers Brownfields low voltage electrical scope defined, costed, scheduled Plant upgrade cos
Slide 13: Permitting: FY25 activities
Permitting FY25 activities Jericho was recently granted a Mining Lease (ML) and For personal use only Standard Environmental Authority (EA) Further permits will be required during construction of the link drive and for full-scale mining: Water extraction license required for the Jericho link drive
Slide 14: Operations Summary
Operations Summary Eloise Copper Mine – reliable copper production from a high- grade, long-life asset For personal use only FY24 guidance achieved Resource extension and near-mine discoveries being achieved and incorporated into mine plan Significant increases in Mineral Resources and Ore R
Slide 15: Exploration Strategy
For personal use only Exploration Strategy Mike Taylor Executive General Manager Exploration 15
Slide 16: Building on Exploration Success
Building on Exploration Success FY24 achievements support a robust long-term outlook Eloise resources increased by 136% and reserves increased by For personal use only 92% since AIC Mines acquisition (Nov 2021) Eloise Mineral Resources increased by 13% in FY24 Eloise Ore Reserves increased by
Slide 17: Focus on Transformational Discovery
Focus on Transformational Discovery Portfolio to deliver Realigning our exploration portfolio to focus on copper, Queensland and late-stage projects For personal use only Searching for higher-grade deposits (>2% Cu) to displace current lower-grade resources and increase copper production Searc
Slide 18: FY25 Exploration Focus
FY25 Exploration Focus Exploration to significantly increase at Eloise, Jericho and regionally in FY25 For personal use only Targeting multiple prospective corridors – control more than one shear zone. Priorities: Near-mine for extensional resource growth Re-evaluating advanced targets for r
Slide 19: Eloise Near-Mine Exploration
Eloise Near-Mine Exploration Improving discovery rate and cost For personal use only In-Mine Loop is proving to be an effective tool to discover additional lenses A single exploration hole can now screen a considerable area Proven effectiveness at Lens 6 extension Replicate tactic to explore
Slide 20: Eloise Near-Mine Exploration: Brownfield targets
Eloise Near-Mine Exploration Brownfield targets Scrubby – Eloise structural analogue Mid West Area – West of Eloise mine corridor Eloise South – Growth potential in Upper For personal use only Highest priority brownfields target Residual ground electromagnetic target Eastern Corridor above deeps
Slide 21: Jericho Near-Mine Exploration
Jericho Near-Mine Exploration Extensive copper corridor Potential to expand resources and reserves remains excellent For personal use only Currently 3.8km in strike – potential to define 5km ~1km untested between J2 and Swagman Mineralisation defined and open at depth at Swagman Jericho So
Slide 22: Eloise Regional
Eloise Regional Highly prospective package under our control For personal use only 2,000km2 tenement holding providing a strong pipeline of targets Consolidation facilitating hub and spoke strategy Two advanced prospective trends – Middle Creek Anticline and Levuka Shear Zone Knowledge drive
Slide 23: Eloise Regional: Middle Creek Anticline
Eloise Regional Middle Creek Anticline – most advanced targets Sandy Creek Trend For personal use only Sandy Creek Prospect1 – the starting spoke Drill testing for extensions returned higher grades at depth Open along strike to the south, down-dip below - 100mRL and down-plunge to the southeas
Slide 24: Eloise Regional: Levuka Shear Zone
Eloise Regional Big Foot Trend Levuka Shear Zone – engine room for next Levuka discovery North Trend For personal use only An enviable number of targets Joplin- Navajo Tactic to complete initial drill testing of numerous priority Trend targets to feed into transformational strategy Levuka Sout
Slide 25: Eloise Regional: Multi-year pipeline
Eloise Regional Multi-year pipeline Southern For personal use only Target generation stage progression via conventional geophysics Eastern Kevin Downs Kevin Downs Trend – Kevin Downs Cu target Trend and generation geophysics in FY25/FY26 Breena Plains Trend – Magnetotelluric Breena Plains
Slide 26: Cloncurry North
Cloncurry North Exploring a worldclass base metal province Expanding our footprint in the worldclass Mt Isa – For personal use only Cloncurry region Capturing positions in fertile domains Cloncurry North package in the Mary Kathleen and Canobie domains Coincident gravity and magnetic anomali
Slide 27: Exploration Portfolio: Other projects
Exploration Portfolio Other projects Cloncurry North Project Cannington (Cu): For personal use only Lamil Windsor Historical focus on Zn-Pb prospectivity, Project Eloise Copper Mine Project but have generated copper only targets Cloncurry Pyramid Project Black Rock at the follow-up drill stage
Slide 28: Exploration Summary
Exploration Summary Eloise resource-base provides a long-term outlook Exploration now focused on a transformational discovery: For personal use only Higher grade discoveries (>2% Cu) to displace lower grade resources and increase copper production Deposits of >10Mt that would warrant further
Slide 29: Funding our growth
For personal use only Funding our growth Michael Frame Chief Financial Officer 29
Slide 30: FY25 Investment Overview
FY25 Investment Overview FY25 Expenditure Eloise Production and Cost Guidance1 12,500t Cu and 5,000oz Au in concentrate at an AISC of $5.25/lb Cu and AIC of $5.50/lb Cu For personal use only Eloise Capital Expenditure A$M Sustaining Capital (captured in AISC) Eloise Sustaining Capital: Plant a
Slide 31: Funding
Funding (12) FY25 Net Mine Cash flow A$M Sensitivities Cu Price (-/+ 12 Improved optionality A$1000/t) Opex Costs (+/- (11) 5%) 11 We are well-funded to deliver FY25 capital initiatives For personal use only (9) Cu Grade (-/+5%) 9 Strong cash position $74.3M (at 30 June 2024) Eloise generating
Slide 32: Funding Summary
Funding Summary For personal use only We enter FY24 in a strong position Strong cash position Eloise generating positive cashflow Discretionary funding will be gated according to success and prevailing copper price Eloise plant expansion can be staged to provide capital expenditure flexibi
Slide 33: Growth strategy
For personal use only Growth strategy Aaron Colleran Managing Director and Chief Executive Officer 33
Slide 34: Growth Strategy
Growth Strategy A disciplined acquisition strategy Annual Production Building a portfolio of mines through Mine Life C1 For personal use only exploration, development and acquisition Targeting late-stage Australian gold and copper projects where we can add value through Exploration Ownership explo
Slide 35: Licence to Operate
Licence to Operate Commitment to sustainability For personal use only 1 ESG is business as usual for AIC 4 We are committed to robust governance, Mines. It drives and informs decision ethical business practices and making around risk, strategy and transparency through public reporting and disclosure
Slide 36: Appendix: Mineral Resources and Ore Reserves
For personal use only Appendix Mineral Resources and Ore Reserves 36
Slide 37: Eloise Project Mineral Resources
Eloise Project Mineral Resources For full details of Eloise, Sandy Creek and Artemis Mineral Resources see AIC Mines ASX announcement “Increased Resources and Reserves at Eloise, Sandy Creek and Artemis” dated 18 April 2024. The Competent Persons are Mr Matthew Thomas (Eloise Mineral For personal us
Slide 38: Eloise Project Ore Reserves
Eloise Project Ore Reserves For full details of Eloise Ore Reserves see AIC Mines ASX announcement “Increased Resources and Reserves at Eloise, Sandy Creek and Artemis” dated 18 April 2024. The Competent Person for the Eloise Ore Reserves is Mr Randy Lition. For personal use only For full details of
Slide 39: JORC Code Table
JORC Code Table 1 Eloise historical drilling, GEM and DHEM: Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Criteria Commentary Sampling techniques • The historical assay data used in this announcement was obtained through diamond drilling methods •
Slide 40: JORC Code Table
JORC Code Table 1 Eloise historical drilling, GEM and DHEM: Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Criteria Commentary Sub-sampling • Approximately 1kg of retained sample is then placed into a LM5 pulveriser, where approximately 85% of the
Slide 41: JORC Code Table
JORC Code Table 1 Eloise historical drilling, GEM and DHEM: Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Criteria Commentary Location of data • All maps and drillhole collar locations are in MGA Zone54 GDA grid points • Location of historical hol
Slide 42: JORC Code Table
JORC Code Table 1 Eloise historical drilling, GEM and DHEM: Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section) Criteria Commentary Mineral tenement and • The prospects shown in this presentation are located on 100% owned AIC tenure ( expl
Slide 43: JORC Code Table
JORC Code Table 1 Eloise historical drilling, GEM and DHEM: Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section) Criteria Commentary Data aggregation • No minimum or maximum cut-off has been applied to any of the drillhole assay data mentio