Aeris Resources Limited · ASX:AIS
Aeris Resources — Straits Resources — Straits Investor Hong Kong Conference (October 2014)
24 slides from Aeris Resources's conference presentation, October 2014
Slide 1: Australian copper producer and turnaround success story
Australian copper producer and turnaround success story October 2014 Investor Presentation October 2013
Slide 2: Disclaimer
Disclaimer Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements or forward-looking information. The words “intend”, “may”, “would”, “could”, “will”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “target” and similar expressions
Slide 3: Corporate Overview
Corporate Overview Board of Directors • Andre Labuschagne Executive Chairman • Alastair Morrison Non-executive Director • Michele Muscillo Non-executive Director Executive Management • Rob Brainsbury Chief Financial Officer • Ian Sheppard Chief Operating Officer • John Miller General Manager – Tritt
Slide 4: Significant Achievements Already Made
Significant Achievements Already Made Management focus of the last 18 months: Divesting non-core assets Closing Mt Muro Gold Mine and exiting Indonesia Downsizing corporate overhead and re-shaping executive team Driving Tritton harder and developing a long term plan: ─ Focus on improving maintenance
Slide 5: Improved Financial and Operating Performance
Improved Financial and Operating Performance Profit – up 124% - Mt Muro deconsolidated and Tritton performance Balance sheet – $39M turnaround to positive net asset position $6M Cash flow – from operations negative $24M to positive $35M Operations: • Tonnes milled up 24% • Copper produced up 13% • C
Slide 6: Straits Today
Straits Today • An established, Australian copper producer Targeting a record 27kt Cu production in FY15 Tritton Reserves up to ~170kt from 118kt Highly prospective exploration tenements Drilling planned for Tritton Deeps to extend mine life to 9 years • Management team with operational and turnarou
Slide 7: Tritton Operations: underground mines
Tritton Operations: 2 underground mines • Tritton underground mine: 1.3mtpa @ 1.9% Cu • North East / Larsens: 300ktpa @ 1.8% Cu 7
Slide 8: Tritton Operations: 1.6 mtpa plant
Tritton Operations: 1.6 mtpa plant • Running above capacity • 94% recovery • 24% copper concentrate grade 8
Slide 9: Tritton Operations: Maintenance and fleet strategy
Tritton Operations: Maintenance and fleet strategy • 2014 focus on truck availability • Process plant debottlenecking continues – plans to increase throughput to 1.8mtpa • 2014/15 focus on fleet refresh and loader availability 9
Slide 10: Tritton Operations: Good infrastructure
Tritton Operations: Good infrastructure • Mobile fleet workshop • Paste fill plant for Tritton U/G • Road Haulage 10
Slide 11: Tritton Operations: Life of Mine Business Plan
Tritton Operations: Life of Mine Business Plan • Nine year LoM business plan • Key focus on increase in mill throughput (minimal capital) • Mine and mill throughput to increase to 1.8mt in FY2016 • Projects: • Tritton underground mine – reserve • Murrawombie pit – reserve • Murrawombie underground –
Slide 12: Business Plan: Tritton Deeps drilling
Business Plan: Tritton Deeps drilling • Reserve 5Mt @ 1.8% Cu • Mineral Resource 11Mt @ 1.8% Cu • Tritton deeps target 50-60kt Cu • Extends reserve base to 9 years • Resource open at depth 12
Slide 13: Business Plan: North East and Larsons
Business Plan: North East and Larsons • Reserve 862kt @ 1.55% Cu • Resource 1.26Mt @ 1.8% Cu • Better grade than expected • Expect to extend for another 2-3 years 13
Slide 14: Business Plan: Avoca Tank
Business Plan: Avoca Tank • Mineral Resource: 903kt @ 2.6% Cu • Ore Reserve: 680kt @ 2.5% Cu • Bottom up mining for high recovery • EIS (Environmental Impact Study) completed • Estimate 12 months following submission of EIS • Orebody open at depth 14
Slide 15: Business Plan: Murrawombie
Business Plan: Murrawombie • Mineral Resource: 8Mt @ 1.4% Cu • Ore Reserve: U/G 3.3Mt @ 1.3% Cu O/C 701kt @ 1.2% Cu • Open pit cutback • Underground – Open stoping under dry fill • Decline development advanced ~80m • Mining lease already in place • Ready to start at any time 15
Slide 16: Tritton: Resource Development Pipeline
Tritton: Resource Development Pipeline 16
Slide 17: Tritton: Exploration potential
Tritton: Exploration potential • Large tenement holdings ~1800km2 • In the last 5 years $34M invested in exploration • Brownfields (resource extensions) Avoca • Greenfields (exploring for new Tank deposit) Kurrajong • Only 24% ($8M) spent on greenfield exploration • Exploration success at Avoca Tank
Slide 18: Exploration: Kurrajong next significant project
Exploration: Kurrajong next significant project • Twice the size of the Tritton EM signature • All recent holes intersected mineralisation • Three holes indicated grades above 2% Cu • $1m drilling program required to commit to resource drill-out • Target 10Mt at >2% 18
Slide 19: Exploration: Avoca Tank repeats
Exploration: Avoca Tank repeats • Avoca Tank Ore Reserve (Apr 2014): 680kt @ 2.5% Cu, 0.8g/t Au • VMS deposits typically occur in clusters • Remainder of the magnetic high complex is under explored • Recent aircore drilling delivered exciting results • RC drilling to start in next three months 19
Slide 20: Exploration: Avoca aircore results
Exploration: Avoca aircore results For comparison, best aircore result near Avoca Tank is 5m @ 116ppm Cu 20
Slide 21: Exploration: Greater Hermidale aircore results
Exploration: Greater Hermidale aircore results 21
Slide 22: Debt Restructure: Update
Debt Restructure: Update • Closed out copper swap and replaced with bridge loan to crystalise value (US$114M) in June 2014 • Five month term • Interest and costs capitalised • Restructure agreement targeted for November then three months to execute 22
Slide 23: What's next
What’s next STEP 1 Fix Balance sheet and growth though Tritton exploration • Restructure debt • Tritton to +9 years reserves and operational excellence • Re-launch exploration drive at Tritton • Consolidate shares and clean-up unmarketable parcels (80% of shareholders hold less than $500 worth of sh
Slide 24: Thank you
Aa Straits Thank you
Straits Resources — Straits Investor Hong Kong Conference (October 2014) on 6ix