Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (October 2019)
28 slides from Orion Minerals's investor presentation, October 2019
Slide 1: Delivering the Prieska Project
ASX/JSE: ORN ASX/JSE: ORN DELIVERING THE PRIESKA PROJECT A strong foundation for near-term development and long-term growth PAGE Investor Presentation: October 2019
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion targets, estimates and assumptions in respect of metal To the maximum extent permitted by law, Orion and any of its Minerals Ltd and its subsidiaries (Orion or Company) and their production and prices, operating costs and results,
Slide 3: Orion Minerals – Compelling Investment Case
ORION MINERALS – COMPELLING INVESTMENT CASE 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 (10 YR) BFS OUTCOMES • Initial 10-year, 2.4Mtpa operation targeting 22ktpa Cu & 70ktpa Zn • Strong operating margin
Slide 4: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT • 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 populous Level region of Sou
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 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 linked to national elect
Slide 6: Prieska: Mine of the Future
PRIESKA: MINE OF THE FUTURE 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 improvements • Improved envi
Slide 7: Strong Cashflow
STRONG CASHFLOW 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 10 11 12 1 2 3 4 5 6 7 8 9 ar ar ar ar ar ar ar ar ar ar ar ar Ye Ye Ye Ye Ye Ye Ye Ye Ye Ye Ye Ye Net Cash Flow After Tax Cumulative Cash Flow PAGE 7 Refer A
Slide 8: Key Social Impacts of the Proposed Mine
KEY SOCIAL IMPACTS OF THE PROPOSED MINE 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 of 20.3% at optimal mining • Combin
Slide 9: Prieska BFS Highlights
PRIESKA BFS HIGHLIGHTS 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 of A$1.1bn (post-tax
Slide 10: Prieska: Next Steps
PRIESKA: NEXT STEPS 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 early 2020 • Ongoing optimisation studies • Evaluating by-product
Slide 11: Corporate Structure
CORPORATE STRUCTURE • Primary listing on the ASX. • Secondary listing on Main Board of the Johannesburg Stock Exchange. Capital structure summary Significant shareholders % Shares on issue 1 2,473M Tembo Capital 24.1 Options on issue 312M Independence Group NL 6.2 Market capitalisation (3.0cps (ASX)
Slide 12: Pivotal $8M Capital Raising and BEE Transaction
PIVOTAL $8M CAPITAL RAISING AND BEE TRANSACTION BEE New BEE Entrepreneurs Orion Entrepreneurs 10.7% 100% Safika Black Star Kolobe Nala Resources Minerals Investment Prieska Prieska Community Prieska Northern projects Employees Resources Trust Trust Orion Exploration 1 (PR application pending) 70% Ma
Slide 13: Appendices
APPENDICES &RYV Orion Minerals PAGE 13
Slide 14: Bankable Feasibility Study Dashboard
BANKABLE FEASIBILITY STUDY DASHBOARD 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:USD 14.5 :1 Payback fro
Slide 15: Construction Milestones
CONSTRUCTION MILESTONES 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-water & Slurry Pumping
Slide 16: Mining Production Profile
MINING PRODUCTION PROFILE • 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 before first ore mined
Slide 17: Mineral Resource
MINERAL RESOURCE The Mineral Resources are inclusive of the Mineral Reserves Refer ASX release 26 June 2019 PAGE 17
Slide 18: Mineral Reserve
MINERAL RESERVE Refer ASX release 26 June 2019 PAGE 18
Slide 19: Mine Face to Market
MINE FACE TO MARKET NaCN & ZnSO4 or SMBS Stockpile Classifying Cyclone Double Deck Secondary Screen Sizing Screen ROM Lime Underground Primary Crusher Primary Mill Secondary Mill Existing Mill Feed Bunkers Reagents Reagents Cu Float Collector Collector Conditioning Promoter Promoter Tank CuSO4 Lime,
Slide 20: A Dominant Land-Holding in an Under-Explored Mineral Belt
A DOMINANT LAND-HOLDING IN AN UNDER-EXPLORED MINERAL BELT • 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 continent1: • Large-scale sediment-hoste
Slide 21: Fraser Range Australia: IGO JV – ORN Free Carried
FRASER RANGE AUSTRALIA: IGO JV – ORN FREE CARRIED “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 Bradford, quoted on
Slide 22: Problem Looming: Copper Supply Chain
PROBLEM LOOMING: COPPER SUPPLY CHAIN Cecilia Jamasmie: Mining (Dot) Com April 10 2018 PAGE 22
Slide 23: Large Copper Mines Have a Very Long Lead Time
LARGE COPPER MINES HAVE A VERY LONG LEAD TIME Not enough low cost production mines already in development Existing LOMs may be extended with substantially higher metal prices Mining(dot)Com: Visual Capitalist; 23 June 2015 PAGE 23
Slide 24: Add a Major New Demand Driver
ADD A MAJOR NEW DEMAND DRIVER Mining(dot)Com: Visual Capitalist: 23 June 2015 PAGE 24
Slide 25: And Copper Hungry Renewable Energy
AND COPPER HUNGRY RENEWABLE ENERGY PAGE 25
Slide 26: Zinc Demand – Consistent Consumption Growth
ZINC DEMAND – CONSISTENT CONSUMPTION GROWTH • 230,000tpa new zinc production required to supply projected demand growth • Current supply attrition not being replaced in time PAGE 26
Slide 27: Zinc Concentrate Supply – New Mines Take Time
ZINC CONCENTRATE SUPPLY – NEW MINES TAKE TIME Current development projects dominated by poor quality concentrate producers - unsustainable PAGE 27
Slide 28: For further information, contact: Orion Minerals Limited
For further information, contact: Orion Minerals Limited Phone: +61 (0)3 8080 7170 Email: [email protected] ASX/JSE: ORN Website: www.orionminerals.com.au PAGE
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