Errol Smart / Managing Director and CEO PAGE
Presentation / August 2023
DISCLAIMER
This presentation contains summary information about Orion Minerals expenditures, mineral reserves and mineral resources and • do not make any representation or warranty, express or
Ltd and its subsidiaries (Orion or Company) and their activities and is anticipated grades and recovery rates, and are or may be implied, as to the accuracy, reliability or completeness of the
current as at 2 August 2023. The information in this presentation is a based on assumptions and estimates related to future information in this presentation, or likelihood of
general background and does not purport to be complete or provide technical, economic, market, political, social and other fulfilment of any forward looking statement or any event or
all information that an investor should consider when making an conditions. results expressed or implied in any forward-looking
investment decision. Orion disclaims any intent or obligation to update publicly any statement; and
No representation or warranty, express or implied, is provided in forward-looking statements whether as a result of new information, • disclaim all responsibility and liability for these forward
relation to the accuracy or completeness of the information. future events or results or otherwise. looking statements (including, without limitation, liability
Statements in this presentation are made only as of the date of The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, for negligence).
this presentation unless otherwise stated and the information in ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, Nothing contained in this presentation constitutes investment, legal,
this presentation remains subject to change without notice. ‘schedule’ and similar expressions identify forward looking statements. tax or other advice. The information does not take into account the
The Company is not responsible for updating, nor undertakes to All forward-looking statements made in this presentation are qualified investment objectives, financial situation or particular needs of any
update, this presentation. It should be read in conjunction with the by the foregoing cautionary statements. Investors are cautioned that recipient. Before making an investment decision, each recipient of this
Company’s other periodic and continuous disclosure announcements forward-looking statements are not guarantees of future performance presentation should make its own assessment and take independent
lodged with the Australian Securities Exchange (ASX), which are and accordingly investors are cautioned not to put undue reliance on professional advice in relation to the information and any action taken
available at www.asx.com.au and the Johannesburg Stock Exchange forward-looking statements due to the inherent uncertainty therein. on the basis of this presentation.
(JSE), which are available at www.jse.co.za. All information in respect of Exploration Results and other technical
Certain statements contained in this presentation, including information should be read in conjunction with the relevant ASX
information as to the future financial or operating performance of announcements released by the Company.
Orion and its projects, are forward-looking statements. Such Orion is not aware of any new information or data that materially
forward-looking statements: affects the information for the Mineral Resource and confirms that all
• are necessarily based upon a number of estimates and material assumptions and technical parameters underpinning the
assumptions that, while considered reasonable by Orion estimates in the relevant Orion ASX releases (as referenced in the
Minerals Ltd, are inherently subject to significant technical, presentation) continue to apply and have not materially changed.
business, economic, competitive, political and social Orion confirms that the form and context in which the Competent
uncertainties and contingencies; Person’s findings are presented have not materially changed.
• involve known and unknown risks and uncertainties that To the maximum extent permitted by law, Orion and any of its related
could cause actual events or results to differ materially bodies corporate and affiliates and their officers, employees, agents,
from estimated or anticipated events or results reflected associates and advisers:
in such forward-looking statements; and • disclaim any obligations or undertaking to release any
• may include, among other things, statements regarding updates or revisions to the information to reflect any change
targets, estimates and assumptions in respect of metal in expectations or assumptions;
production and prices, operating costs and results, capital
PAGE 2
PAGE
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN
BASE METAL DISTRICTS
BROWNFIELDS SUCCESS BEING FOLLOWED BY GREENFIELDS EXPLORATION
450km
Orion Okiep
Copper Projects
Orion Areachap
Projects
Refer ASX/JSE releases 2 February 2021 and 2 August 2021
PAGE 3
COMPANY SNAPSHOT
Capital Structure Summary Current Significant Shareholders Share Issue %
Shares on issue 1 5,647M Tembo Capital (EU/Netherlands) 19.2
Options on issue 3.8B Delphi Group (EU/Germany) 13.4
Cash on hand 2 AUD7.6M Clover Alloys (SA) (South Africa) 7.9
IDC Shareholder Loan 3 AUD2.8M Other Orion Directors (South Africa & Australia) 6.5
Market capitalisation (AUD2.2cps) 4 AUD124M Total 46.9
Board of Directors Senior Management
Denis Waddell, Chairman Peet van Coller, CFO
Errol Smart, MD & CEO Martin Bouwmeester, Company Secretary
Tom Borman, NED Marcus Birch, Executive: Sustainability and Business Support
Mark Palmer, NED Nelson Mosiapoa, Group Corporate Social Responsibility Advisor
Godfrey Gomwe, NED
Philip Kotze, NED
1. Fully paid ordinary Orion shares (Shares) on issue at 2 Aug’23.
2. Cash on hand at 30 Jun’23. In Jul’23 Orion issued first drawdown notices for pre-development funding at Prieska Copper-Zinc Mine Project to the Industrial Development Corporation of South Africa Limited (IDC) and Triple Flag. Initial drawdown of ~A$13.8M was called in
Jul’23 (refer ASX/JSE release 17 Jul’23).
3. Refer to Orion’s Jun’23 Quarterly Reports for information on the agreement for pre-development funding at the Okiep Copper Project entered into with the IDC. Balance shown as at 30 Jun’23.
4. Volume weighted average price (5 day) at 2 Aug’23 of ORN Shares trading on the ASX and JSE.
PAGE 4
PRIESKA COPPER ZINC MINE (PCZM)
PAGE 5
PCZM – CROSS & LONG SECTIONS
1,250m
31Mt @ 1.2% Cu, 3.6% Zn
2.6km
PAGE 6
Refer ASX/JSE releases 15 January 2019 and 25 July 2023
PRIESKA (PCZM) COPPER ZINC PROJECT (70% OWNED)
The orebody
• Globally significant VMS Resource: 31Mt @ 1.2% Cu, 3.6% Zn
• Increased Mineral Reserve: 14.5Mt @ 1.1% Cu and 3.2% Zn
Foundation phase as per BFS-20 outcomes
• Initial 12-year, 2.4Mtpa operation, targeting 22ktpa Cu and 70ktpa Zn
• Life-of-mine production 226kt Cu and 680kt Zn
• Strong operating margins and financials
• Pre-tax free cash flow AUD1.6bn (post-tax AUD1.2bn)
• Pre-tax NPV8% AUD779m (post-tax AUD552m)
• Payback period of 2.4 years from first production
• All-in sustaining margin of 47%
• Peak Funding requirement AUD413m
Fully permitted
• Mining Right granted to PCZM in September 2019
• Mining Right granted to Vardocube in August 2020
• Environmental Financial Provision in place fully capitalised
• Environmental approval notices received for both PCZM and Vardocube “Our strategy to bring the Prieska Copper-Zinc Mine back into production is
now rapidly growing momentum, with the completion of the updated Mineral
• Water Use Licence granted in August 2020 Resource for the near-surface, +105 Resource Block, outlining a very
attractive early mining opportunity at this fully permitted mine.” – Orion
Minerals MD Errol Smart
Refer ASX/JSE releases 8 July 2019, 3 September 2019, 9 March 2020, 26 May 2020, 6 August 2020, 17 August 2020 and 25 July 2023
PAGE 7
KEY CHALLENGES FOR ORION WITH PCZM BFS-20
• High capital, long lead-time project
o Can we bring forward production and reduce funding?
• Skills / Development Team?
o Orion is proven as an explorer and study team – but
where are the mining team and experience?
• Dewatering
o What are alternatives to reduce cost?
• Sources of Finance (for a first-time developer)?
These pressing questions are now largely answered
PAGE 8
REVISED PROJECT DEVELOPMENT STRATEGY
PROJECT ’23 – STARTING SMALL TO GROW BIG
• STRATEGY
o Address perceived high-risk elements of plan to reduce cost of funding
o Prove up and implement a low peak funding business plan
o Investigate opportunity for early production
o Retain ability to rapidly scale-up to full scale project (subject to funding
availability)
o Maintain community, regulatory and stakeholder relations
• EARLY DEWATERING
o Immediately start with phased, reduced rate, early dewatering ‒ (before project
is fully-funded)
• EARLY MINING AND CASH FLOWS
o Prove up early mining concepts by trial mining and processing
o Target ore sources above water level to provide early concentrate production
(cash flows)
o Included Remnant (historical) Pillars in mining plans
o Harvest the Deeps deposit (BFS-20 Plan) as an expansion phase PAGE 9
TOTAL FUNDING SECURED TO ADVANCE PRIESKA
• IDC Convertible Instrument (ZAR 250m) AUD 20 million
• Triple Flag (Early Funding) AUD 10 million
• Triple Flag Au-Ag Stream (USD 80m) AUD 117 million
Total PCZM Ringfenced Finance* AUD 147 million
Orion Equity Raise Completed AUD 13 million
“In the Money” Options AUD 60 million
Anticipated Total ORN Funding Available AUD 73 million
* Initial drawdown of ~AUD13.8 million - July 2023 from IDC and Triple Flag Early Funding agreements.
Refer June 2023 Quarterly Reports
PAGE 10
SHALLOW MINERAL RESOURCES – EARLY MINING TARGETS
• Shallow Mining Plan aims to target mining from the open pit, remnant pillars, while dewatering underway
• Feasibility studies due for completion late 2023
• Stream Finance and early funding initial drawdown completed (~A$13.8M), providing funding to advance Early
Production Strategy
NW SE
Open Pit
Focus Area Early Mining
Pillars for
Extraction
+105m Tonnage Pillars to Remain
- 2.3Mt @ 1.7% Cu, 1.6% Zn Deeps Target
- Supergene Sulphide: 1.1Mt @ 2.6%Cu
Pillar Tonnage (to 957L)
- 8.5Mt of geotechnical pillars.
- Contained grade and tonnage of
extractable pillars being determined
PAGE 11
+105m BLOCK - EARLY MINING TARGET
PAGE 12
Refer ASX/JSE release 25 July 2023
+105m UNDERGROUND MINING LAYOUT
Conceptual Layout of +105 Resource Drift & Fill Mining
PAGE 13
Refer ASX/JSE release 25 July 2023
+105m TRIAL MINING
PAGE 14
Refer ASX/JSE release 25 July 2023
OCP Projects
PAGE 15
OKIEP COPPER PROJECT (OCP) (56%-100% OWNERSHIP)
• Exercised option to acquire and applying for additional prospecting
rights in the Okiep Copper Complex (OCC):
o Historical production of +2Mt of copper
o Non-JORC resource ex-Goldfields of 52Mt @ 1.3%
o JORC Mineral Resource of 11.5Mt at 1.4% Cu, containing
159,000 tonnes Cu
o Tremendous exploration upside
• Promises outstanding operational synergies with Orion’s Prieska
Copper-Zinc Project, located 450km east of OCC
Significant opportunity for Orion to develop a second
base metal production hub alongside Prieska
Refer ASX/JSE releases 2 August 2021, September 2021 Quarterly report and Annual Report to Shareholders 2022
PAGE 16
OCP HISTORICAL DISCOVERIES AND MINES
• Mineralised intrusive bodies
intrude structures aligned in east-
west trending structural corridors
• 25% of mineralised corridors
hidden under thin surface cover
• Modern geophysics expected to
assist in detecting mineralisation
underneath the thin cover
• Orion has now proved the
existence of a Ni rich sulphide
mineralisation phase, not
previously targeted
PAGE 17
OCC
HISTORICAL OWNERSHIP CHANGES COINCIDED WITH Cu PRICE LOWS
Copper Price $/ton (real)
Mining ceases / mine infrastructure stripped
Newmont Goldfields Metorex
Source: Peter Major
Mergence Capital
PAGE 18
NOM – FLAT MINES 2021 SCOPING STUDY INDICATED
ROBUST ECONOMICS FOR INITIAL “PILOT” MINING
• Industrial Development Corporation (IDC) to be our project
partners
• Foundation phase is modelled for 12 years
o Concurrent exploration targeting mine expansion
• Scoping Study indicates potential for robust pilot-phase mine:
o Production for the pilot phase of 9Mt at 1.29% Cu
producing 102kt of copper in saleable concentrates
o First production possible within 16 months of the start of
construction
• Capital of AUD58M (including 15% contingency)
• All-in-sustaining costs of US$4,478/t (US$2.03/lb) of copper
sold
• NPV10 (post tax) of AUD114M (at US$7,593/ton Cu)
• All-in-sustaining margin of 40%
• Average annual undiscounted free cash flows of AUD32M
post-tax
• Break-even grade of 0.8% Cu for both un-optimised open pit
and underground mining operations
Refer ASX/JSE release 3 May 2021
PAGE 19
JMP Project
PAGE 20
ENORMOUS EXPLORATION UPSIDE
AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT
Multiple Cu-Zn VMS and Ni-Cu-Co intrusive
targets within Orion’s mineral rights
• Jacomynspan – Mining Right with potential for sulphide Ni-Cu-
PGE-Au open pit & shallow underground mining
Jacomynspan • Several high grade Cu-Au targets with historical and recent drill
Project
intersections
• Several Li, Be, REE, Mica occurrences & old diggings to
be investigated
Prieska Mine
PAGE 21
RAW MATERIALS CRITICAL TO ELECTRIC VEHICLE PRODUCTION
The Jacomynspan (JMP)
Mining Right Area has
mineral deposits that can
potentially supply 13
metals and materials of
the 24 that are critical to
battery electric vehicle
production, cleaner
combustion & energy
transition.
Extracted from: Mercedes-Benz | Raw Materials Report July 2022
PAGE
© 2022 STRATEGA METALS
JACOMYNSPAN (OWNERSHIP 50% ORN : 37% AFRICAN NICKEL)
POTENTIAL TO BE A SIGNIFICANT FUTURE METALS PRODUCER
Executed Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex
Investigating innovative proprietary technology to
recover Battery Metals and high-value Battery
Precursor Products – a value game changer
Refer ASX/JSE release 3 March 2018
PAGE 23
COMBINING PROVEN CHLORO AND CARBONYL
METAL VAPOUR PROCESS TECHNOLOGIES “MVT”
TO PRODUCE CRITICAL METAL PRODUCTS
Tronox – A super scale user of Chloro - MVT
United Kingdom Netherlands Australia Saudi Arabia Germany
Copper Cliff, Canada Clydach, Wales
Source: Stratega Metals
Vale is the worldwide leader in Carbonyl - MVT
PAGE
© 2022 STRATEGA METALS
STRATEGA – TCM MVT SOLUTION*
• Treating higher metallurgical recovery – lower grade concentrates (Maximises value extraction of ore deposit)
• Enables >90% metal recovery to concentrate
• Recovery of >95% of all metals from sulphide concentrates with premium sales value as precursor product
• Producing high value – clean, green next generation metal powder products
• Low capex intensity
• Low opex intensity
• Low net energy requirement (co-generating electricity)
• Reagents are generated / regenerated on site and recycled
• Low/no water consumed
• Low /no liquid or gas emissions
• Dry solid waste is inert can be used for production of bricks/tiles/ceramics
POTENTIAL TO MORE THAN DOUBLE REVENUE PER TON ORE MINED – MODERATE
INCREMENTAL COST!
* Technical & Commercial claims by Stratega and TCM are currently subject of test.work due-diligence
PAGE
© 2022 STRATEGA METALS
Orion Minerals Limited
Level 21, 55 Collins Street
Melbourne Vic 3000
Australia
For further information, contact: Phone: +61 (0)3 8080 7170
Email: info@orionminerals.com.au
Website: www.orionminerals.com.au
ASX/JSE: ORN
PAGE 26
