Wrap Text
Short-Form: Interim Financial Report for the Period ended 31 December 2022
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
SHORT-FORM: INTERIM FINANCIAL REPORT FOR THE PERIOD ENDED 31 DECEMBER 2022
Shareholders of Orion Minerals Ltd (ASX/JSE: ORN) (Orion or the Company) are advised that the Company
has today published its Interim Financial Report for the period ended 31 December 2022. Copies thereof are
available on the Company's website, www.orionminerals.com.au and at
https://senspdf.jse.co.za/documents/2023/jse/isse/orne/interim23.pdf.
HIGHLIGHTS:
• Prieska Copper-Zinc Project (Prieska Project) development advancing on several fronts:
o Definitive agreements for US$87 million funding package signed with subsidiaries of Triple Flag
Precious Metals Corp. to advance the Prieska Copper-Zinc Mine (PCZM):
- US$80 million of Precious Metal Stream funding to be advanced against the delivery of 84% of
future gold and silver by-product production, with each stream rate reducing to 50% after
certain milestones. Orion will also receive payments of 10% of the delivered precious metal
value at spot gold and silver prices at the time of delivery.
- An additional A$10 million to be advanced against calculated payments equal to 0.8% of gross
revenue from future mineral sales. First draw-down of funds from the A$10 million Funding
Arrangement expected in Q1 CY2023.
o Definitive agreement signed with the Industrial Development Corporation of South Africa Limited
(IDC), under which IDC will advance ZAR250 million as a senior secured convertible loan facility to
fund early works at the PCZM.
o Innovative Electrosoftner/RotowinnerTM electrochemical water treatment and mineral extraction field
trials commenced.
• Okiep Copper Project:
o Notarial execution of the mining rights for SAFTA (Okiep Copper Project – Flat Mines).
o Pre-development funding secured for the Okiep Copper Project, with the IDC acquiring a 43.75%
stake in New Okiep Mining Company (NOM). The IDC will now advance its share of pre-development
costs, amounting to ZAR35 million, and will facilitate meaningful economic participation by
Historically Disadvantaged South Africans to further the ownership objectives of the Mining Charter
2018.
o Commencement of confirmation drilling and metallurgical sampling to underpin the completion of
an advanced-stage Feasibility Study.
• Jacomynspan Nickel-Copper-PGE Project:
o Notarial execution of the mining right for Namaqua Nickel Mining.
o Metallurgical test work program commenced to produce battery precursor products and other
critical metal micro-powders from Jacomynspan ore. This work is being progressed under an
exclusivity agreement signed with Stratega Metals in May 2022. Test work is progressing, with
promising results and the exclusivity period has been extended to 31 July 2023.
• Australia – Fraser Range, Western Australia (IGO JV):
o Air-core drilling, geological logging and MLEM surveys completed to help define and prioritise targets
for ongoing exploration.
COMMENTARY:
During the half year, Orion continued to progress its high-quality pipeline of future facing base metals
development and exploration assets to support the global clean energy transition. Key outcomes included
strong progress with financing and pre-development activities at the development-ready Prieska Project, as
well as progressing exploration programs and feasibility studies at the Okiep Copper Project (OCP) and
Jacomynspan Project, all located in the mineral-rich Northern Cape Province of South Africa.
Pre-development funding for Prieska was significantly advanced, with definitive agreements signed with Triple
Flag and the IDC for funding totalling more than ZAR365 million, to carry out demonstration trial mining and
allow dewatering to commence from underground mine workings. Both these work streams are critical to a
Bankable Feasibility Study for an Early Production Plan at Prieska. The study work, including trial mining, is
scheduled for completion by Q3 2023.
Pre-development funding has also been secured for the OCP, with South Africa’s IDC acquiring a 43.75%
stake in NOM. The IDC funding of pre-development costs in the aggregate amount of ZAR35 million will be
advanced to NOM on the same terms as the pre-development funding amount of ZAR44 million that Orion
had already advanced to NOM, and meaningful economic participation by Historically Disadvantaged
South Africans will be facilitated, to further the ownership objectives of the Mining Charter 2018.
A Mining Right has been granted and executed for the Flat Mines Area at the OCP, paving the way for the
commencement of confirmation drilling and metallurgical sampling required to complete an advanced
stage Feasibility Study.
At the Jacomynspan Nickel-Copper-PGE Project, a metallurgical test work program commenced to produce
battery precursor products and other critical metal micro-powders from Jacomynspan ore. This work is being
progressed under an exclusivity agreement signed with Stratega Metals in May 2022. This test work is
progressing well, with promising results received to date. The exclusivity period with Stratega has been
extended to 31 July 2023.
In the Fraser Range Province in Western Australia, Orion’s joint venture partner, IGO Limited (ASX: IGO),
undertook aircore drilling, geological logging and moving loop electromagnetic surveys.
Orion strives at all times to achieve a sustainable balance between intense operational effort and
maintaining a strong focus on safety, environment and community.
In addition, the following information is provided in accordance with paragraph 3.46 of the JSE Listings
Requirements:
• Operating loss improved to a loss of AUD7.47 million (31 Dec 2021: operating loss of AUD10.47 million).
• Basic loss per share improved by AUD9 cents to AUD14 cents (31 Dec 2021: basic loss per share of
AUD23 cents).
• Headline loss per share improved by AUD9 cents to AUD14 cents (31 Dec 2021: headline loss per share
of AUD23 cents).
The operating loss for the reporting period was primarily driven by an unrealised foreign exchange loss of
AUD2.99 million, contractor and advisor expenses of AUD2.33 million, exploration expenditure incurred of
AUD2.21 million which, under Orion’s deferred exploration, evaluation and development policy, did not
qualify to be capitalised and was expensed and finance income of AUD1.60 million, principally related to
interest receivable on the Company’s investment in preference shares, issued to the Company (through its
subsidiary Agama Exploration & Mining (Pty) Ltd) by Prieska Resources (Pty) Ltd. The operating loss for the
previous corresponding period reflected an unrealised foreign exchange loss of AUD5.2 million and
exploration expenditure incurred of AUD4.3 million.
SHORT-FORM ANNOUNCEMENT:
This short-form announcement is the responsibility of the directors and is only a summary of the information in
the full announcement.
Any investment decisions by investors and/or shareholders should be based on a consideration of the full
announcement as a whole and investors and shareholders are encouraged to review the full announcement,
which is available as detailed herein. Copies of the full announcement may also be requested from the
Company via email at info@orionminerals.com.au or from the sponsor at sponsorteam@merchantec.com at
no charge.
For and on behalf of the Board.
Denis Waddell
Chairman
9 March 2023
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Director & CEO Nicholas Read Monique Martinez
Denis Waddell – Chairman Read Corporate, Australia Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: monique.martinez@merchantec.com
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and
results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are
or may be based on assumptions and estimates related to future technical, economic, market, political, social and other
conditions. These forward-looking statements are based on management’s expectations and beliefs concerning future
events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to
risks, uncertainties and other factors, many of which are outside the control of Orion. Such forward-looking statements are
based on numerous assumptions regarding the Orion's present and future business strategies and the political and
economic environment in which the Orion will operate in the future, which are not guarantees or predictions of future
performance. Actual results and developments may vary materially from those that may be contemplated or implied by
forward-looking statements in this release.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All
information in respect of Exploration Results and other technical information should be read in conjunction with
Competent Person Statements in this release (where applicable). To the maximum extent permitted by law, Orion and
any of its related bodies corporate and affiliates and their officers, employees, agents, associates and advisers:
• disclaim any obligations or undertaking to release any updates or revisions to the information in this release to
reflect any events, circumstances or change in expectations or assumptions after the date of this release;
• do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of
the information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results
expressed or implied in any forward-looking statement; and
• disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
negligence).
Date: 09-03-2023 11:58:00
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