Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (May 2022)
34 slides from Orion Minerals's investor presentation, May 9, 2022
Slide 1: Investor Presentation May 2022
Errol Smart / Managing Director and CEO Investor Presentation / May 2022 PAGE
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion Minerals expenditures, mineral reserves and mineral resources and • do not make any representation or warranty, express or Ltd and its subsidiaries (Orion or Company) and their activities and is anticipated grades and recovery rat
Slide 3: Our Mission
OUR MISSION FULLY INTEGRATED FROM EXPLORATION TO MARKET EXPLORATION PRODUCING FUTURE FACING METAL PRODUCTS – ESG CERTIFIED METALS, TRACKED VIA BLOCKCHAIN FROM EXPLORATION TO SALE $ PAGE 3
Slide 4: Company Snapshot
COMPANY SNAPSHOT Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 4,382M Tembo Capital (EU/Netherlands) 23.5 Options on issue 232M Delphi Group (EU/Germany) 13.1 Cash on hand 2 AUD6M IGO Limited (Australia) 3.5 AASMF Loan 3 AUD2M Tarney Holdings (Denis Wadde
Slide 5: Future Facing Metals: Development, Advanced Exploration
FUTURE FACING METALS DEVELOPMENT ADVANCED EXPLORATION READY STAGE UPSIDE South Africa Australia Prieska (PCZM) Okiep Copper Project (OCP) Jacomynspan (JMP) Boksputs Fraser Range 70% ownership 56-70% ownership 50-70% ownership Earning 10-30% free carried 70% ownership to feasibility Copper-Zinc Coppe
Slide 6: Focus on Two Highly Prospective South African Base Metal Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN BASE METAL DISTRICTS BROWNFIELDS SUCCESS BEING FOLLOWED BY GREENFIELDS EXPLORATION 450km Orion Okiep Copper Projects Orion Areachap Projects Refer ASX/JSE releases 2 February 2021, 10 February 2021, 29 March 2021 and 2 August 2021 PAGE 6
Slide 7: A New Future Metals Giant in the Making
A NEW FUTURE METALS GIANT IN THE MAKING FAST-TRACKING TOWARDS DEVELOPMENT AND PRODUCTION • Two brownfields development assets in South Africa’s Northern Cape • Extensive upside exploration potential, high-quality Mineral Resources • Mineral Rights include known deposits of Copper, Zinc, Nickel, Coba
Slide 8: ESG – Core Focus of Our Business
ESG – CORE FOCUS OF OUR BUSINESS • BEE (30%) Black Empowerment for mining projects of which: • 20% Entrepreneurs • 5% Community Trust • 5% Employee Trust • Community focused • Environmentally conscious AAMEG Award 2020 (Junior Mining Leader on ESG) • MD & CEO Errol Smart • Chairman of the Minerals C
Slide 9: Green Power – Green Footprint
GREEN POWER – GREEN FOOTPRINT • Water conservation and recycling – tailings water available for re-use and excess delivered to local community for irrigation • Tailings – predominantly in ground placement / void filling / carbon sequestration Renewable Energy Advantage • 170MW Solar Power and 200MW
Slide 10: PCZM – A Green Metal Producer
PCZM – A GREEN METAL PRODUCER Scope 1+2 - Carbon Neutral target Mine sales – potentially attract “green” premium Investigating Battery Precursor Production Desirable for offtake customers ESG – investment eligibility Cost savings – carbon credits / low emissions PAGE 10
Slide 11: Next Generation Work Practices
NEXT GENERATION WORK PRACTICES Fourth Industrial Revolution (4IR) enabled • Orion will be an industry leader within South Africa, adopting next generation technology and work practices • Fresh start - no workplace or IR legacy issues • High tech and mechanised - minimising employee exposure to high-
Slide 12: Beneficiation Investigations
BENEFICIATION INVESTIGATIONS Potential to unlock value locally, using beneficiation to produce Orion commissioning testwork and scoping feasibility assessments on: “Future Metal Products” • Modified carbonyl and chlorine • Abundant solar and wind renewable energy installed or being metal vapour tech
Slide 13: Areachap Projects
Areachap Projects For further information, contact: PAGE 13
Slide 14: A$120M Non-Binding Term Sheet for PCZM Funding and Stream Package
A$120M* NON-BINDING TERM SHEET SIGNED FOR FUNDING ARRANGEMENT & STREAM FUNDING PACKAGE FOR PCZM • Term Sheet signed with Triple Flag for funding package, including stream finance. Early Funding Arrangement: o Triple Flag is a highly respected precious metal royalty and • A$10m to be advanced against
Slide 15: PCZM – Cross & Long Sections
PCZM – CROSS & LONG SECTIONS NW Hutchings Shaft SE Current Flooded Water Level 30.49Mt @ 1.2% Cu, 3.7% Zn Refer ASX/JSE release 15 January 2019 PAGE 15
Slide 16: Prieska (PCZM) Copper Zinc Project (70%)
PRIESKA (PCZM) COPPER ZINC PROJECT (70%) The orebody • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% Zn • Increased Mineral Reserve: 14.5Mt @ 1.1% Cu and 3.2% Zn Foundation phase as per bfs-20 outcomes • Initial 12-year, 2.4Mtpa operation, targeting 22ktpa Cu and 70ktpa Zn • Life-of-min
Slide 17: Shallow Mineral Resources – Early Mining Targets
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS • Shallow Mining Plan aims to target mining from the open pit, remnant pillars, while dewatering underway • Feasibility studies underway to fast-track development • Stream Finance and early funding advance, provide opportunity fast-track development N
Slide 18: Enormous Exploration Upside – Areachap
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT Multiple Cu-Zn VMS and Ni-Cu-Co intrusive targets within Orion’s mineral rights • Prieska Cu-Zn near mine, open pit and underground targets with high grade intersections Jacomynspan • Jacomynspan – Mining Right w
Slide 19: Jacomynspan
JACOMYNSPAN POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER Granted Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex Investigating innovative proprietary technology to recover Battery Metals and high-value Battery Refer ASX/JSE release 3 March 2018 Precursor Products – a value game changer P
Slide 20: High Value Future Metal Products
HIGH VALUE FUTURE METAL PRODUCTS Carbonyl Nickel Refining at Jinchuan China Micro granular Fe (left) and Ni (right) metal carbonyl powders Currently available on market PAGE 20
Slide 21: OCP Projects
OCP Projects For further information, contact: PAGE 21
Slide 22: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES • Mineralised intrusive bodies intrude structures aligned in east-west trending structural corridors • 25% of mineralised corridors hidden under thin surface cover • Modern geophysics expected to assist in detecting mineralisation underneath the thin cover • Orio
Slide 23: Historical Ownership Changes Coincided with Cu Price Lows
OCC: HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS Copper Price $/ton (real) Mining ceases / mine infrastructure stripped Newmont Goldfields Metorex Source: Peter Major Mergence Capital PAGE 23
Slide 24: Okiep Copper Project (OCP) (56%-100%)
OKIEP COPPER PROJECT (OCP) (56%-100%) • Exercised option to acquire and applying for additional prospecting rights in the Okiep Copper Complex (OCC): • Historical production of +2Mt of copper • Non-JORC resource ex-Goldfields of 52Mt @ 1.3% • JORC Mineral Resource of 11.5Mt at 1.4% Cu, containing 15
Slide 25: Okiep – Historical Production Profile
OKIEP – HISTORICAL PRODUCTION PROFILE Newmont Goldfields Metorex • Produced 2.1Mt Cu from 121Mt ROM @ 1.9% Cu • Peaked at 2.4Mtpa ROM, mainly from underground mining • Ore sourced from 42 separate mines within the district (20km radius) • Consistently achieved >90% plant recoveries to >30% Cu in con
Slide 26: Okiep District – Modern Exploration / EM Opportunity
OKIEP DISTRICT – MODERN EXPLORATION/ EM OPPORTUNITY >1,700 mafic body outcrops Historical Geophysical >200 Cu showings methods used: IP, Magnetics, Gravity >100 Cu “diggings” - All only suited to find these 42 Cu “mines” 27 modern Most ore “industrial” mines was low-grade disseminated 8 mines with …
Slide 27: OCP – Flat Mines Scoping Study Indicates Robust Economics
OCP – FLAT MINES SCOPING STUDY INDICATES ROBUST ECONOMICS • Industrial Development Corporation (IDC) intend to be our partners • Foundation phase is modelled for 12 years • Concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust pilot-phase mine: • Production f
Slide 28: Appendices
Appendices For further information, contact: PAGE 28
Slide 29: PCZM Project BFS 2020: Executive Dashboard
PCZM PROJECT BFS 2020: EXECUTIVE DASHBOARD Key assumptions and Project Performance Parameters Price and FX Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 6,680 NPV (pre-tax) @8% discount rate ZAR (M) 8,566 AUD (M) 779 NPV % Change -15% -10% -5% 0% +5% +10%
Slide 30: OCP – Flat Mines Pilot Project Scoping Study
OCP – FLAT MINES PILOT PROJECT SCOPING STUDY Executive Dashboard Price and Forex Assumptions Unit Value Financial Performance Unit Value Unit Value Metal price - Cu USD/t 7,593 NPV (pre-tax) approximated @10% discount rate ZAR (M) 1,896 AUD (M) 170 Metal price – Au USD/oz 1,889 NPV (post-tax) approx
Slide 31: Exploration: Australia Fraser Range – JV with IGO
EXPLORATION: AUSTRALIA FRASER RANGE (10-30% ORN FREE CARRIED) – JV WITH IGO Location of Pike Project (IGO: ORN JV) relative to Legend Mining’s Mawson Ni-Cu discovery Pike Project • ORN 30% free-carried by IGO through to first Pre-Feasibility study • 2019 diamond drilling intersected Ni-Cu sulphides
Slide 32: Senior Management
SENIOR MANAGEMENT Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Chief Operating Officer Executive: Finance & Consulting Group Corporate Social Chief Executive Officer Company Secretary Administration Geol
Slide 33: Board of Directors
BOARD OF DIRECTORS Denis Waddell Errol Smart Alexander Haller Mark Palmer Godfrey Gomwe Tom Borman Chairman Managing Director & Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Denis is a Chartered Errol is a Geologist, with Alexande
Slide 34: For further information, contact
Orion Minerals Limited Suite 617, 530 Little Collins Street Melbourne Vic 3000 Australia For further information, contact: Phone: +61 (0)3 8080 7170 Email: [email protected] Website: www.orionminerals.com.au ASX/JSE: ORN PAGE 34