Post on 24-Feb-2022
Founders ~15%
ManagementandAssociates ~12%
ShanghaiMetals 9.4%
Corporate snapshot
2
Issuedsharecapital(MCT) 454.0mil
Options 78.6 mil
Shareprice(June2017) A4.5c
Marketcapitalisation(diluted) A$23.9mil
Cash(30Mar2016) ~A$3.5mil*
Debt(30Dec2016) A$0mil
Averagedailytradedvolume 0.90mil
Analystcoverage
Capitalstructure Metalicityshareprice
Majorshareholders
*includes$1.8mcash+$1.7moptionsinthemoney(excludesrecent$1.5mequityplacement)
Management Capability
3
CHAIRMANAndrew Daley
• MiningEngineerandInvestmentBanker
• 40yearsexperienceintheresourceandinvestmentbankingindustry
• FoundingDirectorofPanAust,Oxiana andInvestorResourcesLimited(“IRL”)
MANAGING DIRECTORMatthew Gauci
• MBAandMiningExecutive
• 20yearsexperienceintheresourceindustry
• FoundingDirectorofMetalicity
NON-EXECUTIVE DIRECTORMathew Longworth
• GeologistandMiningExecutive
• 30yearsexperienceintheresourcesindustry
• FormerlyManagingDirectorofHeronResources
NON-EXECUTIVE DIRECTORChris Bain
• GeologistandFundManager
• 40yearsexperienceintheresourceindustry
• FormerlyGeologistwithMIMHoldingsandFoundingDirectorofIRL
COMPANY SECRETARYNeil Hackett
• CompanySecretaryandDirector
• 25yearsexperienceintheresourcesindustry
• Formerlycompanysecretaryanddirectorwithvarioussmall-midcaps
CHIEF FINANCIAL OFFICERJustin Barton
• CFOandCompanyDirector
• 20yearsexperienceintheresourcessector
• FormerlywithErnst&YoungandRioTinto
BoardandManagement
Zinc: supply shortage driving prices
4
Source:MacquarieResearch,March2016(WoodMac,CRU,LME,ILZSG)Source:MacquarieResearch,March2016(WoodMac,CRU,LME,ILZSG)
Discovery,developmentandacquisitionareourenablers.
AllassetsareinthepremierminingjurisdictionofWesternAustralia.
Primarydevelopmentassetsaretheworld-classAdmiralBayZincProject,andtherecentOptiontoacquiretheLennardShelfZincProject(NapierRangeandEmanuelRange).
Secondaryasset(s)arehighlyprospective,drillreadycobalttenureatKyarra.
Allprojectacquisitionsundertakenatlowcosttoshareholders.
Capitalraisingwillsupportarangeofpotentiallyhighimpactworkprogramsinthesecondhalfof2017and2018.
ExperiencedBoardandManagementteamsignificantshareholding.
We are driven by return on capital
6
100%Metalicity ownershipincludingcurrently100%offtake1.
LocatedintheCanningBasinofWesternAustralia,approximately140kmsouthofBroome.
Closeproximitytoexcellentpower,water,roadandportinfrastructuresolutions.
UpdatedInferredMineralResourceEstimate(MRE)of170Mtat7.5%ZnEq2
— In-situcontainedmetalof7.0Mtzinc,4.6Mtleadand137Mozsilver
— DelineatedongrantedMLsandEL
Highgradezoneof20Mtat10%ZnEq (including4.9Mtat12.5%ZnEq).
Targetingamulti-decadeoperationofworldclasszinc-leadscaleandoperatingcost.
ScopingStudycompletedbySRKConsulting(July2016)withthefollowingkeyoutcomes:
— Projectdevelopmentdeterminedtobetechnicallyfeasible
— Basecaseopenstoping miningmethod
— Flatlyingdepositgeometryandrockpropertiespotentiallyfavourableforlongwallmining
— Conventionalflotationprocessingwithexpectedhighmetallurgicalrecoveries
Admiral Bay zinc project highlights
7
1 SubjecttoMOUsignedwithChinaMinmetals NonferrousMetalsCo.Ltdfor10%ofAdmiralBayzincandleadconcentrate.SeeMetalicityASXreleaseon17/07/2017.2 SeeMetalicityASXreleaseon4/07/2016;ZnEq =Zn+0.97Pb+0.03Ag(Table1:ZincEquivalenceParameters).
Containedmetal=7Mtzinc,4.6Mtlead,137Mozsilver
3.0%ZnEq cut-offgrade
ExplorationTargetRange2
— Explorationtargetestimatebasedon3%Zn+Pb cut-offgrade— 160-210Mtat4.5-4.6%Zn,2.2-2.1%Pband25g/tAg— Containedmetal=7.2-9.6MtZn,3.5-4.3MtPb,128-169MozAg— 18kmtargetedstrikeextent
HighGradezoneof10Mtat10%ZnEq3
A globally significant zinc resource
8
Classification Tonnes(Mt) Zn(%) Pb(%) Ag(g/t) Zneq (%)1
Inferred 170.0 4.1 2.7 25 7.5
1 SeeMetalicityASXreleaseon4/07/2016;Zneq =Zn+0.97Pb+0.03Ag(Table1:ZincEquivalenceParameters)2 Notethatthepotentialquantitiesandgradesareconceptualinnature,thattherehasbeeninsufficientexplorationtoestimate
MineralResourcesandthatitisuncertainwhetherfurtherexplorationwillresultintheestimationofMineralResources.3 SeeMetalicityASXreleaseon10/2/2015
MajorzincdevelopmentprojectsgloballyAdmiralBayResourceEstimate
Source:Variouscompanyreportsandreleases
0.0%
5.0%
10.0%
15.0%
20.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Admira
lBay-ETR
Selwyn(C
anada)
Meh
diabad(Iran)
Gamsberg(Sou
thAfrica)
Admira
lBay(A
ustralia)
Ozernoe
(Russia
)
DugaldRiver(A
ustralia)
Teen
a(Australia)
Citron
en(G
reen
land
)
TalaHam
za(A
lgeria)
Dairi(Ind
onesia)
HackettR
iver(C
anada)
Akie(C
anada)
Bisha(Eritrea)
Olympias(G
reece)
Asmara(Eritrea)
Halfm
ileLake(Canada)
Resourcegrade(Zn+Pb(%))
Resourcecont.metal(Zn+Pbonly(mt))
Cont.Zn+Pb(mt)
Zn+Pbgrade(%)
Admira
lBay(H
ighGrade)
A well defined high grade zinc-lead zone
9Source:Metalicity
Higher-gradezoneof20Mtat10% ZnEq,including4.9Mtat12.5%ZnEq.
Higher-gradezonewithinexistingInferredResourceof170Mtat7.5%ZnEq.
Bestintersectionsinclude20mat14.5%ZnEq (including6mat24.3%ZnEq)and;14mat17.7%ZnEq (including14mat16.4%Pb).
ThreeZn-richintersections>10% ZnEq allliewithinthiszone.
MultipleZn-richzones>10% ZnEq definedastargetsforfuturework.
Drillingisplannedandbudgetedtoconvert12Mtofhighgradezonetoindicatedcategory.
Highgradeindicatedresourceexpectedtorepresentpaybackontotalpre-productioncapital.
DSO productpotentialfromatotalof3Mtofresource.
Pre-feasibility study underway
10
Mineral ResourceUpgrade
Mining OptionalityStudies
Metallurgical,geotechnical,hydrogeological,geothermal studies
Financial modelling
Drillinghighgradezone
MineralResourceUpgrade
Pre-Feasibilitylevelconfidencestudy,includingallkeydisciplines.
Furtherdrillingwithinthehigh-gradezone
MineralResourceUpgrade
DFSlevelconfidencestudyincludingallrelevantdisciplines.
Metallurgicaltestingtoupgradeconfidence
Geotechnicalmodelling
Hydrogeologicalmodelling
OreSortingstudy
Source:Metalicity
AdmiralBayPFStobecompletedinatwo-stagedapproach.
Pre-feasibilityStudyStage1(tobecompletedwithSRKConsulting)aimsto:
• Addressgeotechnicalandhydrogeologicalcriteriatoinformminingmethod
• CompleteOreSortingtestworkaimedtotestoresuitabilityforupgradingoretoagradeof»40%ZnEq forapotentialDSOproduct.
• Completekeymetallurgicaltestworkprogramsandprocessflowsheetdesign
• Designtwostagedapproachtominingwith“startermine”DSOoperation
• ConvertMOUwithChinaNonferrousandChinaMinmetals tobindingJointVentureAgreement
PFSStage2willinvolvedirectionaldrillingtoupgradeMineralResourcetoIndicatedstatusandcompletePFSlevelconfidencestudiesacrossalldisciplines.
Twostageminingstrategybeingevaluatedincorporatingstage1lowcapital,4yearDSOstartermine,thatwouldprovidefundingtorampuptostage2fullscaleconcentratemodelfor21years+.
Lennard Shelf zinc project highlights
11
Optiontoacquire100%oftheLennardshelfzincprojectwhichincludesthehighgradenearsurfaceNapierRangeZincProjectandEmmanuelRangeZincProject.
NapierRange:
— JORC2012InferredMineralResourceEstimate(MRE)of750ktat13.6%ZnEq(5.8%Zn,7.2%Pb and54g/tAg).
— ETRof1-4Mtat10-15%ZnEq1 acrossanumberofseparateprospects
— Highgrade,nearsurfaceandpotentiallylowcapitalproject
EmmanuelRange:
— IncloseproximitytothePillar,Kapok,Cadjebut zincdeposits
— Strikeof~30kmofuntestedprospectivezonewithmajorfaults
1 Notethatthepotentialquantitiesandgradesareconceptualinnature,thattherehasbeeninsufficientexplorationtoestimate MineralResourcesandthatitisuncertainwhetherfurtherexplorationwillresultintheestimationofMineralResources.
Lennard Shelf zinc project highlights
12
Highgradenearsurfaceandpotentiallylowcapitalzincproject.
PreliminaryreviewsuggestthatWagonPassisastandaloneeconomicallyfeasibleproject.
SignificanthighgradeexplorationupsidewithETR
Furtherexplorationupsidewithsurfacesamplesof20%+Znoutcropping
MultiplesynergisticopportunitieswithAdmiralBay,includinginfrastructure,mineralprocessingequipment,humanresources,financingandofftake.
PossiblestarterminetopartfinancedevelopmentofAdmiralBay
WagonPassdepositblockmodel
WagonPassDeposit(750Kt@13.5%ZnEq
ExplorationTarget1-4Mt@10-15%ZnEq
13
Global zinc project development
DugaldRiver
Gamsberg
Ozernoye
Selwyn
IzokCorridor
Kipushi
Mehdiabad
0%
1%
2%
3%
6%
13%
25%
50%
100% -100 0 100 200 300 400 500 600
ZincGrade
(%)
ZincProduction(ktpa)
AdmiralBay(Concentrate)
Source:MiningSurvey2015– FraserInstituteNote:Bubblesizeequalscapital(US$m);Y-AxisisalogarithmicscaletoaccountforKipushi’s highgradeSource:PublicCompanyReports
AdmiralBay(DSO)
NapierRange(??)
AdmiralBayAustralia(WA)
87 1
SelwynCanada
79 12
Dugald RiverAustralia(Qld)
78 16
Izok CorridorCanada
74 23
OzernoyeRussianFederation
66 47
KipushiDRC
59 60
GamsbergSouthAfrica
58 66
MehdiabadIran
SanctionedbyEU,UNandUSA
Project Area/CountryRiskScore
LocationRiskRank(from109)
14
Sector leading zinc partners
1.Minmetals isoneofChina’sleadingzincsmeltingcompany’s withannualconsumptioncapacityof1MtpazincconcentrateandiscurrentlycompletingamergerwithChinaMetallurgicalCorporation(MCC).ThecombinedrevenuesofMinmetals andMCCarereportedtoamounttoapproximatelytwicethatoftheworld’slargestpubliclytradedminingcompany,BHP.1Chinaistheworld’slargestconsumerandprocessorofzincconcentratesintorefinedzinc.Moreinformationcanbefoundat:http://china.org.cn/business/2016-06/03/content_38595154.htm
ChinaMinmetals1 isoneofChina’s,andtheworld’s,leadingzincsmeltingcompanies withannualconsumptioncapacityof1Mtpazincconcentrate.
MOUsignedwithsubsidiaryChinaMinmetals NonferrousMetalsCo.Ltd (“CMN”)forportionoffuturezincandleadoff-takefromAdmiralBay.
TheMOUcontemplatesthesupplyofaninitial10%offutureofftakefromananticipatedproductionof174Ktzincand115KtleadperannumfromAdmiralBayinexchangeformetallurgicalandbeneficiationtestwork whichestablishesapathwayforinvestinginMetalicityand/orAdmiralBay.
CMNwillundertakemetallurgicalandbeneficiationtestwork onapproximately50kgofexistingcorecurrentlyheldbythecompanyinarefrigeratedcontainer.CMNwillprepareareportforMetalicityaspartofthecurrentPFSfortheDSOandConcentrateModel,aswellasforfuturefinancingandoff-take.
ChinaNonferrousMetalIndustry’sForeignEngineeringandConstructionCo.Ltd (“NFC”) isagloballeaderinzincprojectengineering,procurement,constructionanddevelopment.
MOUsignedwithsubsidiaryCNFCEquipmentCo.LTD(“CNFC”)forthedevelopment,constructionandfinancingofAdmiralBay.
Cobalt drilling current quarter
15
Highprioritydrilltarget
TheKyarra CobaltProjectlocatedintheemergingYerrida Basin,WA.
Extensivecobaltanomaliesidentifiedovera25kmstrike.
A4km2 prioritytargetareahasbeenidentifiedwheresignificantsurfacesamplesupto6,400ppmcobaltanddrillintersectionsincluding2mat612ppmcobalthavebeenachieved.
Largelandholdingof645km2 oftenementscoveringasignificantportionoftheYerrida Basin.
MineralisationmodelanalogoustotheZambianCopperBelt– prospectiveforcopper-cobaltandnickel-cobaltdeposits.
Maiden2,000– 3,000mdrillingprogramplannedforSeptemberQuarter.
Lithium drilling current quarter
16
Lynas FindNorthadjoinsPilbaraMinerals’andAlturaMining’sPilgangooraprojectstothesouth.
Extensivelithiumbearingpegmatiteshavebeenmappedoverastrikeextentofapproximately10kmatLynas FindNorth.
Pegmatitesmappedwithin1kmofLynas Finddeposit.
Drillingplannedacrossa10kmx2kmtargetarea.
Excellentnearbyprocessinginfrastructureandaccess.
Subjecttoresults,programpotentiallytobeextendedtotheStannumlithiumdiscoverytothesouthwest.
Highprioritydrilltarget
Investment highlights
17
Zincstrategyrapidlybuildinggenuineleverageintighteningzincmarket.
Optiontoacquirethehighgrade,nearsurfaceandpotentiallylowcapitalLennardShelfprojectprovidesnear-termdevelopmentprojectasworkcontinuesonAdmiralBay.
Secondarycobaltandlithiumworkprogramsgatheringmomentumwithpotentialtoaddsignificantnear-termvalue.
Multipleshort-termcatalystsforsecondhalfof2017:
• AdmiralBayJointVenturediscussionscontinuingthroughoutAsia
• LennardShelfduediligenceprogramandpotentialacquisition
• CobaltdrillingatKyarra inSeptemberQuarter2017
• LithiumdrillingatPilgangoora NorthinSeptemberQuarter2017