Savannah poised for restart East Coast Roadshow 13 – 16 November 2017
Disclaimer No New Information or Data This presentation contains references to exploration results, and Mineral Resource and Ore Reserve estimates, all of which have been cross referenced to previous market announcements made by the Company. 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 estimates of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. Forward Looking Statements This presentation may contain certain “forward -looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the Countries and States in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward -looking statement” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. 2
Contents Corporate Company Directory Overview Savannah Other Assets Comparative Vision Metrics 3
Corporate Directory Capital Structure and Enterprise Value Board ASX Ticker ASX:PAN Brian Phillips Non Executive Chairman Peter Harold Managing Director Shares on issue 430.1M John Rowe Non Executive Director Share Price $0.47 (10 November 2017) Peter Sullivan Non-Executive Director Market Cap ~$200M Trevor Eton CFO/Company Secretary Cash ~$7.5M (30 September 2017) Listed Investments ~$13M Shareholder spread +50% institutional Bank debt Nil Enterprise Value ~$180M Significant Shareholder (at 30 September 2017) Zeta Resources Limited 27.0% Volume 30-day average daily volume 1,721,000 90-day average daily volume 1,177,000 4
Significant Resources RESOURCES* 313,600t Nickel 1.36Moz Platinum 1.46Moz Palladium 99,100t Copper 14,900t Cobalt 5 Refer to Appendices “Resources and Reserves”
Continuous Exploration Success 342,700 tonnes Nickel 630,000 ounces Gold 125,000 tonnes Copper Gum Creek (now owned by Horizon Gold Limited) 18,700 tonnes Cobalt Combined Howards, Heron South, Swan, Swift and Wilsons Kimberley Savannah North: 175,100t Ni, 74,400t Cu, 12,700t Co Savannah Lower Zone: 50,120t Ni, 28,200t Cu, 2,400t Co Savannah Sub 900 Fault: 14,900t Ni, 6,900t Cu, 900t Co Copernicus: 10,600t Ni, 6,900t Cu, 400t Co Lanfranchi Deacon: 71,800t Ni, 6,300t Cu, 1,900t Co Jury-Metcalfe 6,400t Ni, 1,300t Cu, 100t Co Lower Schmitz 6,700t Ni, 500t Cu, 100t Co John Hicks, General Manager Exploration 6 New Resources discovered since 2006 - refer Company Annual Reports
Performance against our peers in last six months PAN.ASX EVN.ASX IGO.ASX MCR.ASX OZL.ASX RMS.ASX SLR.ASX WSA.ASX XKR.ASX 230% 210% 190% 170% 150% 130% 110% 90% 70% 08 May 17 29 May 17 20 Jun 17 11 Jul 17 01 Aug 17 22 Aug 17 12 Sep 17 03 Oct 17 24 Oct 17 7
Highly leveraged to nickel price Panoramic Resources Limited v US$ Ni/lb 12 month comparison $0.50 $7.00 $0.45 $6.00 $0.40 $5.00 $0.35 Panoramic Share Price A$ $0.30 $4.00 US$ Ni/lb $0.25 $3.00 $0.20 Savannah Updated FS $0.15 $2.00 $0.10 Release of Savannah Savannah $1.00 $0.05 Feasibility Study FS Optimisation $0.00 $- PAN Sh A$ US$ Ni/lb 8
Nickel, Copper, Cobalt – production ready assets 9
SAVANNAH 10
Savannah - Summary Mining and Processing Fully developed underground mine 1Mtpa processing plant (SAG mill and conventional flotation) Full mining fleet, 200 person village & associated infrastructure Mined continuously for 12 years (2004-2016) 8.5Mt ore milled for 95kt Ni, 53kt Cu, 5kt Co in concentrate Care and maintenance since May 2016 Updated Feasibility Study for re-start delivered October 2017 Offtake with Sino/Jinchuan to March 2020 Resources Total Resources of 218,300t Ni, 99,100t Cu, 14,900t Co Exploration upside Only half of interpreted extent of Savannah North Upper Zone tested by drilling Other mafic/ultramafic intrusives with little or no drilling 11
Savannah Updated Feasibility Study ▪ Payable Operating Cash Costs - US$2.40/lb payable Ni ▪ Sustaining Cash Costs - US$3.50/lb payable Ni ▪ Pre-production and ramp-up capital - A$36M ▪ Mine life - 8.3 years ▪ Average annual production forecast* ▪ 10,800t Ni ▪ 6,100t Cu ▪ 800t Co ▪ Short lead time to production ▪ NPV - $380M (at US$6.75/lb Ni and A$=US$0.75) ▪ IRR - 200% * Refer Company ASX release 27 October 2017 titled “Updated Savannah Feasibility Study. Enhances fundamentals for a decision to restart” Cautionary Statement Approximately 1.1% of nickel in the Production Target is from material classified as Inferred Resource. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. 12
Key Resource and Production Statistics Operating Long mine life ~8.3 years Details Metric (excluding future Resource to Reserve conversion and 13.2Mt @ 1.65%Ni, 0.75% Cu, 0.11% Co Mineral exploration upside potential) containing Resources Significant nickel production 218,300t Ni 99,100t Cu 14,900t Co 7.65Mt @ 1.42% Ni, 0.68% Cu, 0.10% Co averaging 10,800t nickel in Mine containing concentrate over LOM Production 108,700t Ni 51,700t Cu 7,300t Co Significant by-product credits Mine Life 8.3 years 41% of gross mine-gate LOM revenue from copper and 90,200t Ni 50,700t Cu 6,700t Co cobalt production (metal in concentrate) Annual 10,800t Ni 6,100t Cu 800t Co production (metal in concentrate) The Mineral Resources and Ore Reserves underpinning the above production target have been prepared by a competent person or persons in accordance with the requirements of the JORC Code – refer to PAN’s ASX announcements of 24 August 2016, 30 September 2016 and 2 February 2017. 13
Mining Savannah Forecast mine production of 1.68Mt @ 1.18% Ni for 19,800t Ni contained Use Savannah to top-up production from Savannah North Resources below 900F not included in mine plan ( 0.90Mt @ 1.65% Ni for 14,900t Ni ) Savannah North Forecast mine production of 5.97Mt @ 1.49% Ni for 88,900t Ni contained Commence development when restart Savannah First ore 9 months after commencing access development and full production after 15 months 14
Processing Milling Average 120 tonnes per hour (~940,000 tonnes per year) at full production Estimated four months to refurbish plant Three months ramp up to steady-state production and 12 months to full production Life-of-mine head grade averages 1.42% Ni Lower grades in first year of production, associated with the remnant Ore Reserves at Savannah Assumed Average Recoveries over LOM 83% Ni 98% Cu 92% Co 15
Metal Production Product Bulk Ni-Cu-Co concentrate, target grade of 8% Ni Low impurities and attractive Fe:MgO and Ni:Fe ratios Ideal blending feed for Ni smelters Annual metal in concentrate 10,800t Ni 6,100t Cu 800t Co LOM metal in concentrate 90,200t Ni 50,700t Cu 6,700t Co 16
Capital Costs Total capex over LOM: ~$240M Pre-production and ramp-up: $36M Plant refurb Savannah Nth access Savannah Nth ventilation Pre- Description production Sustaining Life of Mine LOM sustaining capex: $27M pa and ramp-up Mine development 8 103 111 Mine dev’t average $17M pa Mining mobile equipment 4 32 36 PP&E capex average $11M pa Capitalised pre-production and ramp-up opex 28 - 28 Other pre-production and sustaining capital 6 23 29 Savannah North primary ventilation 4 13 17 Plant refurbishment 10 - 10 Tailings facilities construction 2 8 9 Solar power plant - 7 7 TSF 1 capping - 7 7 Concentrate haulage fleet - 5 5 Initial store inventories 2 - 2 Capitalised Revenue (28) - (28) TOTAL 36 198 235 17
Recommend
More recommend
