A highly inves3ble, modern Australian nickel company
First-class nickel address
~A$1 billion 100% of our operaMons located
within Western Australia
Market capitalisation 1
~$79 million
Cash 2
Kambalda
$30 million Perth
Revolving Credit Facility 3
(1) Market CapitalisaMon 05 Sept 2022. (2) Cash at bank 30 June 2022 (3) Fully drawn as at 31 December 2021
st
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 4
The premier pure play Australian nickel producer
100% Australian, 100% Nickel
! Single commodity leverage
! MCR has grown to be the largest pure- Mincor (ASX:MCR)
play nickel sulphide exposure on the ASX ASX Nickel Producers
ASX Nickel Developers
1
1
ASX Nickel Explorers (pre-feasibility)
! …In the very best resource jurisdic3on Market Cap
! With operaMons 100% domiciled in
Western Australia
! Combine to provide the premier low-
risk, future facing nickel Company on
the ASX IGO NIC MCR JRV CTM TLO PAN COB SRL MYL ARL POS LEG LM8 BSX WIN GME AZS NC1 DKM AUZ AOU CNR
MCR
rd
Source: Bloomberg. Market CapitalisaMon at 3 October 2022. Includes Cobalt developers/explorers.
1
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 5
COB
Simple, de-risked nickel strategy
Two producing, low-capex underground opera3ons, FY23 ramp-up
! Northern Opera3ons
! First Mme the Kambalda Dome has been consolidated since the 1990’s
! Historical producMon of 23.0Mt @ 3.6% Ni for 818kt of nickel
1
! Brand-new deposits: Durkin North and now, LN04a
! <2km from BHP’s Kambalda Nickel Concentrator
! Cassini
! Australia’s newest underground nickel operaMon
2
! Award winning discovery to producMon within 5 years
! Infrastructure in place for high-quality, long-life operaMons
! Outstanding growth potenMal
1 Mincor research, sourced from OXer Juan and Long mines AMEC 2020 Prospector of the Year for the Cassini Discovery
2
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 6
Mincor’s strategic advantage
Landscape has changed, Mincor remains key
Nickel Sulphide Ore Nickel Sulphide Ore
Noront BHP BHP BHP
+ Kambalda Mt Keith Leinster
Nickel
Nickel
Nickel
Strategic
Investments Conc Conc Conc
Concentrate
Dryer Concentrate
BHP
BHP
Nova Forrestania Kalgoorlie Ma$e Kwinana Export
Nickel Smelter Nickel Refinery Nickel Sulphate
Nickel Brique$es
Ma$e
Jinchuan Concentrate
Trafigura Concentrate
Mincor depicMon of WA nickel interacMon with BHP
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 7
Cassini: Establishing a long-life opera3on
Australia’s newest high-grade underground nickel opera3on
! Modern, low impact mining
! Brand-new operaMon, designed in line with
modern mining methods and environmental
principles
! Currently mining ore across mulMple development
headings, first stope ore this quarter
! Resource extension and exploraMon drilling to
take place once underground plaworms are
established
! Equipped for long-life opera3on
! ConstrucMon of the new accommodaMon village
nearing compleMon
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 8
Cassini & Cassini North: a very bright future
Boxcut, twin decline access.
Orebody access via the
“Woodall Decline”
Oblique view, development and planned development overlay for display purposes only. Refer ASX Announcement 25 June 2020
th
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 9
Northern Opera3ons: LNO4a - Our “proof-of-concept” moment
New Resource highlights the outstanding growth poten3al over the Golden Mile…of nickel
! Significance cannot be overstated
! IniMal Mineral Resource of 22,600t nickel grading
3.9% 1
! Immediate, 41% increase in nickel tonnes over the
exisMng Long/Durkin North Resource
! Located immediately along strike from Long, within
100m of new, underground infrastructure
! …And this is only Phase 1!
! Ore Reserve work now underway
! TargeMng an iniMal Ore Reserve later this year Long-secMon of the LN04a Surface within the greater Kambalda Dome (facing South). LN04a Indicated Resource outline is shown in
1
green, with the Inferred Resource depicted in light blue. Total Mineral Resource of 576,000t @ 3.9% Ni for 22,600 Ni tonnes
! PotenMal to rapidly add to mining inventory, mine
life
th
1 ASX Announcement 25 July 2022
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 10
LNO4a – Remainder of FY23
Step-out opportuni3es on the Golden Mile, building on “Phase 1” LN04a
! LN04a – Open
! Resource open both up-dip and along strike
Open
! High quality up-dip intercepts provide exciMng
extensional targets, will be drilled from exisMng
infrastructure
! Drill programs planned for the remainder of FY23
! Golden Mile – Towards Durkin North
! Planned drilling targeMng strike extensions of the Open
LN04a Surface, as well as extensions to the (open)
Durkin North orebodies
! Do the two ends of the Golden Mile join? LN04a long-secMon (facing South) illustraMng areas of Indicated Resource (green) and Inferred Resource (light blue) Mineral
Resource classificaMon. In this orientaMon, the exisMng Long development is on the far le\, with the Durkin orebodies located far
right (well beyond the extents of this image). Also illustrated in Figure 2, two diamond drill intercepts on likely up-dip extensions of
the LN04a (ULG-21-048 and ULG-22-064) 1
Long ? Durkin North
1 ASX Announcement 25 July 2022
th
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 11
Small footprint, responsible nickel. “Global vision, local ac3on”
Globally relevant sustainability goals, real ac3on on the ground
FY21 Read about our Sustainability journey here
Delivered our inaugural sustainability report,
alignment with UN SGDs
FY22+FY23
Enhancing our repor3ng frameworks, heightened
engagement within our opera3ng communi3es
Redefining our culture
Beyond
Leadership in responsible mining and thoughmul
community engagement
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 12
Mincor in the community: We’re back!
Con3nuing Mincor’s strong commitment to community and educa3on
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 13
Expected news flow – First half FY23
Key upcoming milestones bolstering an exci3ng opera3ons ramp-up year
! LN04a – Ini3al Ore Reserve
! IniMal Ore Reserve targeted for later in the
year (2022)
! Produc3on Guidance
! Mincor to provide FY23 guidance in Late
October
! Leadership Transi3on
! Gabrielle Iwanow commences shortly as
Mincor MD and CEO
! Gabrielle brings a wealth of high-quality
operaMonal experience, notably in the base
metals space
MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 14
Investor and Sustainability Enquiries. Media Enquiries. www.mincor.com.au
Kurt Walker Nicholas Read
General Manager Corporate Development Read Corporate
[email protected] +61 8 9388 1474
+61 8 9476 7200
Paydirt Nickel Conference
Nicholas Cernotta
Non-Executive Chair
6 October 2022
Important notice and disclaimer
This Presentation contains summary information about the Company and its activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and
does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a
prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act.
The historical information in this Presentation is, or is based upon, information that has been released to the Australian Securities Exchange (ASX). This Presentation should be read in conjunction with
the Company’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au.
Forward-looking statements and forecasts
This Presentation contains certain “forward-looking statements” and comments about future matters. Forward-looking statements can generally be identified by the use of forward-looking words such
as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “plan”, “propose”, “will”, “believe”, “forecast”, “estimate”, “target” “outlook”, “guidance” and other similar expressions within
the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. You are
cautioned not to place undue reliance on forward-looking statements. Any such statements, opinions and estimates in this Presentation speak only as of the date hereof and are based on
assumptions and contingencies subject to change without notice, as are statements about market and industry trends, projections, guidance and estimates. Forward-looking statements are provided
as a general guide only. The forward-looking statements contained in this Presentation are not indications, guarantees or predictions of future performance and involve known and unknown risks and
uncertainties and other factors, many of which are beyond the control of the Company, and may involve significant elements of subjective judgement and assumptions as to future events which may or
may not be correct.
There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. A number of important factors could cause actual results or performance to differ
materially from the forward-looking statements. The forward-looking statements are based on information available to the Company as at the date of this Presentation.
Except as required by law or regulation (including the ASX Listing Rules), the Company undertakes no obligation to supplement, revise or update forward-looking statements or to publish prospective
financial information in the future, regardless of whether new information, future events or results or other factors affect the information contained in this Presentation.
Not financial product advice: This presentation is not financial product, investment advice or a recommendation to acquire the Company securities and has been prepared without taking into account
the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own
objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. The Company is not licensed to provide financial product
advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of the Company securities. The Company assumes that the recipient is capable of
making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation.
Disclaimer: The Company and its related bodies corporate and each of their respective directors, agents, officers, employees and advisers expressly disclaim, to the maximum extent permitted by law,
all liabilities (however caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or
warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation
does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Company.
2
ABN 47 095 792 288 23
Corporate Share price performance 40 M
$0.40
overview $0.30 30 M Capital structure Current*
Shares on Issue 2,051m
$0.20 20 M
Options on Issue 28.5m
$0.10 10 M Share Price A$0.185
Market Capitalisation A$379m
$0.00 0 M
Jul-20 Jan-21 Jul-21 Jan-22 Cash (30 September 2022) A$25m
Debt Drawn (30 September 2022) US$45m
Experienced Board and Management Team Enterprise Value A$422m
*As at 3/10/22
Shareholder composition
Nicholas Cernotta Victor Rajasooriar Gillian Swaby IGO
Non-Executive Chair Managing Director Non-Executive Director
and CEO Zeta Resources 21%
Ausbil
60% 14%
Other
5%
Peter Sullivan Rebecca Hayward Grant Dyker
Non-Executive Director Non-Executive Director Chief Financial Officer
3
Savannah Nickel-Copper-Cobalt Project
4
Ramp-up
building • Total recordable injury frequency rate (TRIFR) at 4.1 trend
momentum reduction continues
• September quarter 2022 operational ramp up plan executed well
• Labour for mining, processing and technical roles close to 100%
• Revolving Credit Facility (with Trafigura) of US$15M drawn in
August
• Production ramp-up continues in FY23 and targeting nameplate
capacity in FY24
• Two concentrate shipments completed in the quarter with a third
ship currently being loaded
• New Mineral Resource and Ore Reserve statement released
• Results of infill drilling of the Savannah orebody immediately
below existing workings supports opening of a new mining front
5
Mining operations
Area Details Units Sep Qtr 2023 * Jun Qtr 2022 Variance
*
• September quarter saw an increase in ore tonnes Jumbo development m 1,284 1,255 2%
mined of 29% compared to June quarter Ore mined dmt 151,049 117,404 29%
Ni grade % 1.08 1.06 2%
Mining
• Mined grade slightly ahead of expectations for the Ni Metal contained dmt 1,626 1,242 31%
quarter Cu grade % 0.56 0.47 21%
Co grade % 0.07 0.07 -2%
• Paste plant running efficiently, quarterly volumes in
3
excess of 40,000m – a record
• Two productions fronts open at Savannah North and
Savannah North
one in Savannah produc/on Stope
• Decline development at Savannah North well in front
of production levels – setting up for drilling platforms
Jumbo
for future years development
completed
• Works underway to reduce controllable costs
* unreconciled numbers
6
Processing operations
Area Details Units Sep Qtr 2023 * Jun Qtr 2022 Variance
• Quarter on quarter saw an improvement of 22%* Ore milled dmt 154,196 126,561 22%
Ni grade % 1.08 1.05 3%
in ore processed Cu grade % 0.56 0.48 18%
Milling Co grade % 0.07 0.07 -2%
• Plant recovery much improved on June quarter Ni recovery % 79.92 76.12 5%
with an improvement of 5% Cu recovery % 93.75 90.50 4%
Co recovery % 84.49 81.62 4%
• Opportunistic approach taken to conduct dmt 18,010 14,079 28%
Concentrate
additional plant maintenance whilst waiting for Ni grade % 7.39 7.16 3%
Ni Metal contained dmt 1,331 1,009 32%
mine to supply ore Concentrate Cu grade % 4.53 3.89 17%
Production
Cu Metal contained dmt 817 547 49%
• Fuel / power costs still higher but trending lower Co grade % 0.48 0.51 -5%
Co Metal contained dmt 87 71 22%
• Shipping costs reducing
Concentrate dmt 16,351 9,477 73%
Ni grade % 7.16 7.52 -5%
Ni Metal contained dmt 1,170 712 64%
Concentrate Cu grade % 4.09 4.31 -5%
Shipments
Cu Metal contained dmt 669 408 64%
Co grade % 0.49 0.48 0%
Co Metal contained dmt 79 46 73%
* unreconciled numbers
7
Savannah North exploration upside
• In FY22 a $3M drill program added +5,000t of Ni and
+4,000t of Cu in resource and +3,500t Ni and +2,800t Cu in
reserve after depletion Savannah North
OPEN
West East
Current
• A significant Inferred Resource sits adjacent to the current development
Ore Reserve and close to planned underground workings
OPEN
• Similar FY23 drilling budget will see a dedicated drill rig
complete resource definition drilling around the immediate
reserves area in upper part of the mine plan
Savannah Savannah
North North
Resources* Reserves* OPEN
Savannah 175,300t Ni Savannah 93,600t Ni
North North
Resources* 75,200t Cu Reserves* 43,300t Cu
12,000t Co 6,800t Co
170,300t Ni 90,100t Ni Reserve
71,100t Cu 40,400t Cu Resource
11,600t Co 6,400t Co Target to add into LOM
2021 2022 2021 2022
Long Section View
8
*Refer Appendix Resources and Reserves (July 2022) Tables
And at Savannah …there’s more to come
• An Inferred Resource sits below the current underground workings of Savannah
• This area was undrilled due to mine life coming to an end in 2016 and the depressed nickel price
• Area now dewatered, developed and two drilling platforms established
• Priority areas targeted to increase Savannah Resource and Reserve base:
– T1 (Savannah above the 900 fault) – complete
– T2 (Savannah below the 900 fault) – underway
x
x x
x
x x
x
x x
x
x x
Savannah long section showing mineralisation, planned drilling recent drilling pierce points
Savannah (RHS) and Savannah North (LHS) 9
First drilling
program at • Drilling at Savannah above the 900 Fault complete
• Mining development ongoing with expected ore development in H2 FY23
Savannah • Increase in width and mineralisation extent
delivers − KUD1931: 28.90m @ 1.16% Ni; 0.74% Cu; 0.06% Co
− KUD1917: 19.75m @ 1.49% Ni; 0.49% Cu; 0.07% Co
− KUD1944: 15.15m @ 2.10% Ni; 1.35% Cu; 0.11% Co
− KUD1919: 10.25m @ 1.50% Ni; 0.18% Cu; 0.07% Co
− KUD1923: 9.10m @ 2.52% Ni; 1.10% Cu; 0.12% Co
− KUD1943: 9.00m @ 2.95% Ni; 0.62% Cu; 0.15% Co
Savannah cross sectional view (1700 section) Savannah cross sectional view (1720 section)
10
Surface exploration
• Regional targets outside of the immediate Savannah area include:
– Stoney Creek – Awaiting downhole EM survey H2 FY23
– Northern Ultramafic Granulite – Awaiting downhole EM survey H2 FY23
– Norton – Heritage survey scheduled for H1 FY23
• Frog Hollow Vanadiferous Titanomagnetite Project (VTM)
• Follow up three historical holes from FY18 which intersected
Vanadium and Titanium – SMD184, SMD185 & SMD186
• SMD185:
• 34m @ 0.36% V O , 5.57% TiO , 25.93% Fe O from 19m,
5
2
2
3
2
• 45m @ 0.25% V O , 3.06% TiO , 17.73% Fe O from 160m; and
2
2
2
5
3
• 53m @ 0.17% V O , 3.66% TiO , 15.40% Fe O from 92m.
3
2
5
2
2
Drill hole SMD186: 39.5-44m
11
Building a business focussed on sustainability
Seeking to improve sustainability in production
• Reduction of carbon footprint is a key opportunity for the business to improve its sustainability performance (20ML
of diesel consumed per year – relatively small but opportunity to reduce)
• Renewable energy using a solar farm with battery back-up is being investigated
− Working with Pacific Energy
− Solar farm location adjacent to processing plant (13.2MW)
− Initial study expected H2 FY23
• Also investigating utilising an EV fleet underground
− Can improve health, safety, sustainability and costs outcomes
− Barminco part of the Electric Mine Consortium
− Phase 1 (Year 1) to Phase 3 (year 3+) projects underway
• Phase 1 (Year 1) • Phase 2 (Year 2-3) • Phase 3 (Year 3+)
• 10 Light Vehicles and 2 ITs or • 20 Light Vehicles, Drills, charge up, • Additional Light Vehicles and Ancillary
Ancillary shotcrete and Agitator Equipment
• Charging Infrastructure (Fast • Charging Infrastructure (Fast Charging • Integration of Heavy BEV - Truck and Loaders
Charging and Opportunistic Charging) and Opportunistic Charging) • Charging Infrastructure (Fast Charging and
• Electrical Infrastructure – KV • Electrical Infrastructure – KV Backbone Opportunistic Charging)
Backbone review • Electrical Infrastructure review and upgrade
12
Building a business focussed on sustainability
Making communities stronger through our business activities
• Supporting community programs in the East Kimberley region
• ‘Bridge the Gap’ rural education partnership with Teach Learn Grow
• Focussing on local employment within the community
• Royalties to Traditional Owners of $14M+ since mining commenced
TLG exercise at Wyndham high school Traditional smoking ceremony for operational restart
13
Summary and Safe restart of Savannah Offtake agreements in place
outlook operations completed, backed package and strong balance
until 2028 with financing
by significant body of
preparatory work to de-risk sheet
1
LOM All-in Cost A$6.87/lb Ni Focus on safe ramp-up of
2
provides significant leverage to operations throughout FY23 with
the demand outlook for nickel steady state production in FY24
Attractive financial outcomes at High quality, cash generative
2
June 2022 commodity prices nickel sulphide asset with 12
including NPV of $1.2 billion year mine life and near mine
8
and $1.8 billion in cashflow Resource extension potential
1. Life of mine production of 10,628 kt @ 1.23% Ni, 0.54% Cu, and 0.08%% Co 14
2. Pricing based on June 2022 metal prices (i.e. Ni US$26,000/t, Cu US$9,500/t, Co US$70,000/t), AUD:USD 0.72 FX and June cost forecast.
Appendices
15
Savannah Project Mineral Resource Estimate
Resource Measured Indicated Inferred Total Metal
Resource Metal
Date Tonnes (%) Tonnes (%) Tonnes (%) Tonnes (%) Tonnes
Nickel 900,000 1.37 498,000 1.73 - - 1,399,000 1.50 21,000
Savannah Above 900F Apr-20 Copper 0.77 1.46 - 1.02 14,200
Cobalt 0.07 0.08 - 0.07 1,000
Nickel - - 780,000 1.64 125,000 1.72 905,000 1.65 14,900
Savannah Below 900F Jun-15 Copper - 0.76 0.75 0.76 6,900
Cobalt - 0.09 0.09 0.09 900
Nickel 1,998,000 1.41 5,540,000 1.67 4,034,000 1.36 11,573,000 1.52 175,300
Savannah North Jun-22 Copper 0.59 0.75 0.52 0.64 74,200
Cobalt 0.10 0.12 0.08 0.10 12,000
Nickel 2,898,000 1.40 6,818,000 1.67 4,159,000 1.37 13,876,000 1.52 211,200
Total Copper 0.65 0.80 0.53 0.69 95,300
Cobalt 0.09 0.12 0.08 0.10 13,900
16
Savannah Project Mineral Resource Estimate
Qualifying Statements and Notes:
Refer to ASX announcement dated 29 September 2022 covering the Savannah Project Mineral Resource update for detailed assumptions and estimation
methodologies.
Figures have been rounded and therefore may not add up exactly to the reported totals.
All Mineral Resources are inclusive of Ore Reserves.
Mineral Resource cut-off grade is 0.50% Ni.
Cross references to previous Company ASX announcements:
Savannah (above 900F) – refer to ASX announcement of 30 September 2019, titled "Mineral Resources and Ore Reserves at 30 June 2019”
Savannah (below 900F) – refer to ASX announcement of 30 September 2015, titled "Mineral Resources and Ore Reserves at 30 June 2015”
Savannah North – refer to ASX announcement of 24 August 2016, titled “Major Resource Upgrade for Savannah North”
No New Information or Data
The Mineral Resource estimate tabled above for Savannah (below 900F), have been previously reported and the relevant market announcements cross
referenced. Except where stated otherwise, the Company confirms that it is not aware of any new information or data that materially affects the
information included in the relevant market announcements and, in the case of estimate of Mineral Resources, that all material assumptions and
technical parameters underpinning the estimate in the relevant market announcement continue to apply and have not materially changed.
Ni Equivalent References
References to Ni equivalent contained metal in Mineral Resources and Ore Reserves is based on assumed metal prices as noted in footnotes and
calculated using the formula Ni Eq kt = (Ni kt * Ni price + Cu kt * Cu price + Co kt * Co price) / Ni price. Ni equivalent grade % in Mineral Resources are
calculated using the formula Ni Eq % = Ni Eq kt / Total Mineral Resource tonnes. It is the Company’s opinion that all elements included in the metal
equivalent calculation have a reasonable potential of being recovered and sold. Metallurgical recoveries for all metals are assumed to be equal.
17
Savannah Project Ore Reserve Estimate
Proved Probable Total Metal
Ore Reserve Metal
Tonnes (%) Tonnes (%) Tonnes (%) Tonnes
Nickel 970,000 0.94 970,000 0.94 9,100
Savannah Copper 0.63 0.63 6,100
Cobalt 0.05 0.05 400
Nickel 1,805,000 1.24 5,683,000 1.25 7,489,000 1.25 93,600
Savannah North Copper 0.54 0.59 0.58 43,300
Cobalt 0.09 0.09 0.09 6,800
Nickel 2,775,000 1.13 5,683,000 1.25 8,458,000 1.21 102,700
Total Copper 0.57 0.59 0.58 49,400
Cobalt 0.07 0.09 0.09 7,200
18
Savannah Project Ore Reserve Estimate
Qualifying Statements and Notes:
Calculations have been rounded to the nearest 1,000t of ore, 0.01% Metal grade and 100t of metal.
Savannah & Savannah North Ore Reserve average cut-off (NSR) of $135/t.
No New Information or Data
The Mineral Reserve estimate tabled above for Savannah has been previously reported on 29 September 2022. The Company confirms that it
is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the
case of estimate of Mineral Reserves, that all material assumptions and technical parameters underpinning the estimate in the relevant market
announcement continue to apply and have not materially changed.
Ni Equivalent References
References to Ni equivalent contained metal in Mineral Resources and Ore Reserves is based on assumed metal prices as noted in footnotes
and calculated using the formula Ni Eq kt = (Ni kt * Ni price + Cu kt * Cu price + Co kt * Co price) / Ni price. Ni equivalent grade % in Mineral
Resources are calculated using the formula Ni Eq % = Ni Eq kt / Total Mineral Resource tonnes. It is the Company’s opinion that all elements
included in the metal equivalent calculation have a reasonable potential of being recovered and sold. Metallurgical recoveries for all metals are
assumed to be equal.
Competent Person Statement
The information in this presentation that relates to Ore Reserves for Savannah and Savannah North is based on information compiled by or
reviewed by Shane McLeay. Mr McLeay is a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Principal Mining
Engineer and full-time employee of Entech Consulting based in Perth, Western Australia.
19
Jaguar Nickel Sulphide Project:
Getting ready for an Electric future
Darren Gordon, Managing Director
1 1
Disclaimer
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or
●
sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and
recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the
risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates,
●
forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Centaurus
●
Metals. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative,
fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this
presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this presentation speak only at the date of issue of this
presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Centaurus Metals does not undertake any obligation to update or revise any information or any of the forward
looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
The Scoping Study referred to in this presentation has been undertaken for the purpose of initial evaluation of a potential development of the Jaguar Nickel Sulphide Project. It is a preliminary technical and
●
economic study (±40%) of the potential viability of the Jaguar Nickel Sulphide Project. The Scoping Study outcomes, Production Target and forecast financial information referred to in this presentation are based
on low accuracy level technical and economic assessments that are insufficient to support estimation of Ore Reserves. While each of the modifying factors was considered and applied, there is no certainty of
eventual conversion to Ore Reserves or that the Production Target itself will be realised. Further exploration and evaluation work and appropriate studies are required before Centaurus will be in a position to
estimate any Ore Reserves or to provide any assurance of an economic development case.
Assumptions also include assumptions about the availability of funding. While Centaurus considers that all the material assumptions are based on reasonable grounds, there is no certainty that they will prove to
●
be correct or that the range of outcomes indicated by this study will be achieved. To achieve the range of outcomes indicated in the Scoping Study, pre-production funding in the order of US$288M will likely be
required. There is no certainty that Centaurus will be able to source that amount of funding when required. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise
affect the value of Centaurus’s shares. It is also possible that Centaurus could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Jaguar Nickel Sulphide Project. This could
materially reduce Centaurus’s proportionate ownership of the Jaguar Nickel Sulphide Project.
The information in this report that relates to Exploration Results is based on information compiled by Mr Roger Fitzhardinge who is a Member of the Australasia Institute of Mining and Metallurgy. Mr Fitzhardinge
●
is a permanent employee and shareholder of Centaurus Metals Limited. Mr Fitzhardinge has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Fitzhardinge consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the December 2021 Jaguar Mineral Resources is based on information compiled by Mr Lauritz Barnes (consultant with Trepanier Pty Ltd) and Mr Roger Fitzhardinge (a
●
permanent employee and shareholder of Centaurus Metals Limited). Mr Barnes and Mr Fitzhardinge are both members of the Australasian Institute of Mining and Metallurgy. Mr Barnes and Mr Fitzhardinge have
sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the
Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Fitzhardinge is the Competent Person for the database (including
all drilling information), the geological and mineralisation models plus completed the site visits. Mr Barnes is the Competent Person for the construction of the 3-D geology / mineralisation model plus the
estimation. Mr Barnes and Mr Fitzhardinge consent to the inclusion in this report of the matters based on their information in the form and context in which they appear.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral
●
Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply and have not materially changed. The Company confirms
that the form and context in which the competent persons findings have not been materially modified from the original announcement.
This presentation contains information extracted from the Company’s ASX market announcements dated 29 March 2021 and 31 May 2021 which are available on the Company’s website at
●
www.centaurus.com.au. The Company confirms that that all material assumptions underpinning the Jaguar Project Scoping Studies as detailed in the ASX market announcements of 29 March 2021 and 31 May
2021 continue to apply and have not materially changed.
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Centaurus World-class Resource
Investment overview with significant growth
potential
Developing a globally Extremely low carbon
significant nickel footprint
sulphide asset
Favourable Targeting production of
infrastructure-rich +20ktpa of nickel in
location in Brazil’s sulphate over minimum
Carajás Province 13-year life
Well-funded with
Outstanding project ~A$50m in cash to
economics and financial underpin ongoing DFS
returns and exploration
Well-timed to meet Highly experienced team
forecast shortfall of with strong mining and
Class-1 nickel corporate experience
3 3
Corporate Summary
Centaurus is developing one of the world’s premier new near- 427m 9m
surface nickel sulphide projects, with class-leading GHG emission
credentials, to take advantage of surging demand for Class-1 Shares on issue Unlisted options
nickel from the global EV industry.
70% A$427m
Top-20 holders Market cap at A$1.00
A$50m
Cash
Substantial Shareholders
Broker Coverage
4 4
Brazil
Responsible Mining in an emission-friendly jurisdiction
ROAD MAP TO MINING FAVOURABLE TAX SYSTEM ROYALTIES TO THE REGIONS
15% effective tax rate for first Royalties split between the
Well-Established Mining Regulation
and Tenement System 10yrs of operations (SUDAM municipal (65%), state and federal
Program) authorities
ENVIRONMENTAL STRATEGIC MINERALS POLICY RENEWABLE POWERHOUSE
Approval Process clearly defined Recently-created to assist in 80% of Brazil’s power currently
with Terms of Reference issued for approval process for strategic generated from renewable sources
EIA minerals; includes nickel
5 5
Getting Ready for an Electric Future
Nickel is a key ingredient for the clean energy revolution
WHERE IS THE NEW SUPPLY COMING FROM?
EVs and the path to decarbonisation require
Class-1 nickel
Class-1 nickel will preferentially be sourced
from sulphide deposits – low capital intensity,
easy processing, lowest carbon footprint
Decades of limited nickel exploration means
a very small pipeline of new projects,
especially lower-cost, lower-emission
Source: Wood Mackenzie Source: Benchmark Minerals Intelligence
sulphide projects in geopolitically safe mining
● Nickel demand for batteries growing very strongly – nickel sulphate demand jurisdictions
in batteries estimated to grow at 18-19% CAGR (2020-2030)
CENTAURUS WELL PLACED TO BE PART OF
● Sulphate premium – marginal cost of production of nickel sulphate THE SOLUTION
● Massive investments by OEM’s globally to transition to electric vehicles
● United States Inflation Reduction Act provides support for a “green
premium” for nickel projects with a low-carbon footprint in geopolitically
friendly jurisdictions
6 6
GHG Emissions – Forecast to be a Class-leader
Powered by renewables & high-grade nickel sulphides
GHG Intensity Curve – Nickel (E1 GHG Emission Metrics®)
Jaguar Nickel Sulphate Project
4.69t of CO /t of NiEq
2
Net Sequester of Carbon during exploration phase of work at Jaguar
Life-of-mine CO footprint forecast to be lower than 97% of global nickel production
2
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Approvals & Stakeholder Engagement
Environmental Approvals On-Track
● Majority of the project footprint already disturbed (pasture land)
● Environmental Impact Assessment (EIA/RIMA) lodged
● Jaguar Project is now a Strategic Mineral Project in Brazil
● Mining Lease Application (PAE) lodged
Land Access
● Secured possession of three key properties that cover an area of 2,000
hectares for the long-term benefit of the Project
Other Environmental Programs
● Plant Nursery constructed on site in partnership with local municipalities
● Assist with the revegetation of cleared land and to facilitate development
of vegetation corridors for enhanced biodiversity of local fauna
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Supporting Local to Create Lasting Benefits
Building relationships now and for the future
Supporting Local People & Business
● 125 people currently employed by Centaurus in Brazil – 90% reside locally
with 20% female, plus an additional 140 contractors on site
● Internship Program implemented with the University of Maraba in the fields
of geology, mining and engineering
● Centaurus has contracted with over 400 suppliers in the State of Para with
over 300 of these suppliers being from the local municipalities
● Local training of ~1,500 people for construction roles to commence in H1
2023 – very strong interest in the program
Social Programs Underway
● Social programs focusing on health and water quality being implemented
● Partnership with local municipalities to upgrade roads & bridges
● LOM contribution of +US$400M in taxes and government royalties
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Brazil’s Carajás Mineral Province
A Tier-1 global mining province
The Carajás contains one of the world’s largest known
concentrations of large-tonnage world-class mineral deposits
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Brazil’s Carajás Mineral Province
Outstanding infrastructure and logistics
● High-Voltage (230kV &138kV) grid power within 40km of Project
● Brazil’s national power grid runs on +80% renewables
● Low cost, clean power
● Project located 40km north of Tucumã and Ourilândia do Norte
(pop +70,000) – mining communities with skilled workforce
● Sealed road access to Vila de Conde Free Access Port or rail to Sao
Luis
● Ideally positioned to feed the global battery supply chain
Tucumã Township, Para, Brazil Vila de Conde Port, Para, Brazil
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Jaguar Project – 2021 Scoping Study
2.7Mtpa nickel sulphate plant to produce +20ktpa nickel in sulphate
Blended Mill Feed: 33.7Mt @ 1.01% Ni for 341,300t of contained Ni over initial ~13-year LOM
+75% of mill feed from open pit
Refine local based ! At conservative SS Ni prices of US$7.50/lb
Resource Growth CAPEX & OPEX & US$0.50/lb sulphate premium
estimates ! Post-Tax NPV of A$1.11 billion 52% IRR
8
Mine Schedule Process Route ! Operating Cash Margin of US$4.27/lb Ni
optimisation by-product opportunities ! LOM Annual Cash Flow (pre-tax) – US$189m
! Development Capital – US$288 million
kt
25 22.7 22.3
21.5 21.2 21.7 21.2 21.2
[VALUE].0 19.7 ! LOM Strip Ratio – 6.5:1
20 18.7 18.4 18.7
15 ! Massive leverage to rising nickel price
9.5
10
5.6
5 At US$10.00/lb Ni price, post tax NPV 8
0 A$2.2 billion with 89% IRR
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
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Jaguar Project – Globally Significant Project Taking Shape
Definitive Feasibility Study Advancing Well
Multiple DFS Work Fronts Progressing Well
Mining
● Jaguar pits coalescing into one – strike extent of +3km, up
to 1km width and depths that extend to over 300m
● Maintaining a low strip ratio of around 7.5:1
Process
● Comminution testing complete – minimum design
throughput of 2.7Mtpa
● 400kg of concentrate ready for POX pilot testing – a further
250kg to be prepared to test designed POX flowsheet
13
Jaguar Project – Large-Tonnage, High-Quality Resource
Resource upgrade set to underpin project capacity upgrade
JORC Mineral Resource Estimate: 80.6Mt @ 0.91% Ni for 730,700 tonnes of contained nickel metal
● Indicated Resource of 43.4Mt @
0.92% Ni for 397,000t of nickel,
54% of the Global MRE
● +500kt of nickel metal within
200m of surface
● High-grade component of 22.4Mt
@ 1.59% Ni for 354,800t of nickel
metal
● 10 Diamond & 1 RC Rig on site
● Next JORC Resource upgrade – This
Month. Drilling complete.
Awaiting assays
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Jaguar Project – Resource Growth and Upside
Deep plumbing systems in the Carajás
World-class Carajás
IOCG deposits hosted
in deep regional-scale
structures
Salobo (Cu-Au) Mine,
mineralisation to
depths of +1,400m
and remains open!
> 1.0% Cu
0.4 - 1.0% Cu
JAGUAR IS JUST
GETTING STARTED
Source: Wheaton Precious Metals: Salobo Cu-Au Mine, Technical Report, December 2019
15
Jaguar Project – Resource Growth and Upside
Deep plumbing – open at depth & below UG stope limits
300m
400m
Untested
Jaguar South Jaguar Central Onça Preta
16
Jaguar Project – Resource Growth and Upside
DHEM to drive more deep massive sulphide discoveries
DHEM Conductor plates extend +270m
below deepest drilling
DHEM Plates
Open & Untested
17.6m @ 4.86% Ni from 208m, within
56.1m @ 2.05 Ni
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Jaguar Project Targeted Development Timeline
First Production – Late 2025
2024/25 – Construction phase
Late 2023 – Final Investment Decision (FID)
Mid-2023 – Definitive Feasibility Study
October 2022 – MRE Resource Upgrade
2021 Key Environmental & Mining Licenses lodged
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Centaurus Metals
Key investment takeaways
● Nickel focus in Brazil
● Extremely low carbon footprint
● Favourable infrastructure-rich location
● Globally significant JORC Resource
● Long-life project
● Strong returns and cash flow generation
● Outstanding growth potential
● The right team and well funded
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