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Reviewed Interim Financial Report for the half year ended 31 December 2023
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
REVIEWED INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2023
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 half year ended 31 December 2023. Copies thereof are
available on the Company's website, www.orionminerals.com.au and at the JSE cloudlink
https://senspdf.jse.co.za/documents/2024/jse/isse/orne/interim24.pdf.
HIGHLIGHTS:
• Prieska Copper Zinc Mine (PCZM) development continued its advancement on several fronts:
o An updated Mineral Resource Estimate was completed for the +105m Level Crown Pillar Block, with an
increase in both tonnes and grade to 2.3Mt at 1.7% Cu and 1.6% Zn, including an increase in the +105
Indicated Resource to1.9Mt at 1.82% Cu and 1.70% Zn. The Prieska Copper Zinc Mine Total Mineral
Resource has increased to 31Mt grading 1.2% Cu and 3.6% Zn.
o Experienced South African-based mining contractor appointed for the trial mining of the +105 Level
supergene ore to test conventional and alternative underground mining methods with learnings and
efficiency improvements to feed into the updated Bankable Feasibility Study (BFS).
o Trial mining is in progress as at reporting period date, with development drilling and blasting from the
existing 105 Level footwall haulage in a ramp to access the +105 Block at 95m elevation. Post reporting
period end date, the +105 Block was intersected at the 95m elevation level.
o Orion commenced the mine development and construction phase, with early dewatering and trial
mining underway to provide key inputs for an updated BFS.
o The Company received the Australia Africa Minerals & Energy Group (AAMEG) Emerging ESG Leader
Award during the reporting period, which recognises Australian companies performing exemplary ESG
work on the African continent. The award recognises the Group's pioneering approach to community
involvement in its projects, through its Community Participation Framework, which was developed at
PCZM.
o PCZM achieved 56% host community representation in its labour force at the end of December 2023,
with a total of 93 community members out of a total of 166 on-site employees employed at PCZM.
Host Community employees come from the communities of Prieska, Marydale, Vanwyksvlei and
Niekerkshoop, filling various roles at the operation.
• Okiep Copper Project (OCP):
o The Flat Mines Project Bankable Feasibility Study Report was completed and submitted for
independent expert (IE) review during the reporting period.
o In consultation with the IE review team, Orion will drill additional diamond drill holes into the Flat Mines
East and South deposits to prove the reliability of the legacy exploration data to a standard which
would be satisfactory to lenders. This drilling program is in progress and will delay the completion of the
BFS to approximately mid Q3 CY2024.
o Orion concluded negotiations in January 2024 to access and acquire 12,156ha of land that includes
the majority of the Flat Mines Project area.
• Jacomynspan Nickel-Copper-PGE Project (JMP):
o Second phase of the metallurgical test work program continued, with the objective of producing
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.
• Australia – Fraser Range, Western Australia (IGO JV):
o Several targets were reviewed in depth for prospectivity and two were identified for additional
exploration.
o IGO intends to complete an additional in-depth review of the targets and prepare an exploration
program for the Peninsula and Artemis targets in the Q1 CY2024, while also continuing a desktop
review of the tenements.
COMMENTARY:
Orion is building a high-quality pipeline of critical metals' assets to supply the demands created by the global
clean energy transition. The company has set itself the aspirational corporate objective of achieving first
copper sales from its development projects in 2025 and growing copper production of greater than 50Ktpa by
the end of the decade.
During the reporting period Orion successfully navigated a pivotal developmental stage. The company has
transformed from being a pure explorer and feasibility study executioner to being a mining company actively
developing an operational underground mine. The composition of the management and operations teams
has been transformed with core mining, engineering, technical services, logistics and administration teams
secured and operational contractor teams successfully mobilised to site at Prieska Copper Zinc Mine (PCZM).
Trial mining has commenced at the flagship PCZM with copper ore from trial mining currently being stockpiled
on surface at PCZM.
Orion reported an updated Mineral Resource Estimate for the +105 Block at PCZM early during the reporting
period. This Mineral Resource includes supergene and hypogene sulphides of 1.3m tonnes with a grade of 2.4%
Cu and 2.1% Zn with 30,000 tonnes contained Cu and 27,000 tonnes contained Zn. The +105 Block Resource lies
above the current water level of 269m and has been identified as an attractive early mining opportunity
focussed on the high-grade sulphide mineralisation. This will underpin the Company's near-term mining
development.
Site preparation and site establishment for trial mining of the +105 Block commenced in August 2023. Mining
contractors began mobilising to site in September 2023. Importantly, the first funding drawdowns from the
combined total AUD33 million Industrial Development Corporation (IDC) and Triple Flag funding facilities was
completed in early August 2023.
The first development blast occurred in November 2023 and the access ramp reached the +105 Block at 95m
level in January 2024. Ore development is continuing to test strike and dip extensions within the +105 Block.
Ore sourced from the trial mining will be used for metallurgical optimisation tests and the detailed design of a
modular sulphide concentrator plant. The data and results will feed into the Early Production Plan and revised
Life of Mine Feasibility Study, which is on-track for completion in Q3 CY2024.
At the Okiep Copper Project (OCP), Orion is finalising the Bankable Feasibility Study for the Flat Mines area, with
ongoing review by independent experts appointed by the debt advisor. Land access negotiations were
concluded in January 2024 resulting in Orion acquiring a key 12,156ha surface right covering the area which is
the focus of the intended initial mining at Flat Mines. Orion is now able to access sites, not previously accessible
to undertake a validation drilling program, to verify the historical data that underpinned the Mineral Resource
Estimates at the Flat Mines East, North and South deposits and to further de-risk the study. The Flat Mines
Feasibility Study is scheduled for completion by Q3 CY2024 after completion of the verification drilling.
At the Jacomynspan Nickel-Copper-Cobalt-PGE Project (JMP), planning for a trial mining program to support
pilot scale metallurgical test work programs is progressing well. Laboratory scale test work to confirm
amenability of the Jacomynspan sulphide concentrate to Metal Vapour Refining Technology, is delivering
pleasing results.
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 AUD5.65 million (31 December 2022: operating loss of AUD7.47
million).
• Basic loss per share improved by AUD0.06 cents to AUD0.08 cents (31 December 2022: basic loss per share
of AUD0.14 cents).
• Headline loss per share improved by AUD0.06 cents to AUD0.08 cents (31 December 2022: headline loss
per share of AUD0.14 cents).
The operating loss for the reporting period was primarily driven by contractor and advisor expenses of AUD1.30
million, exploration expenditure incurred of AUD2.13 million which, under the Group's deferred exploration,
evaluation and development policy, did not qualify to be capitalised and was expensed and finance income
of AUD2.87 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 AUD2.99 million and exploration expenditure incurred of AUD13.42 million.
SHORT-FORM ANNOUNCEMENT:
This short-form announcement is the responsibility of the directors and is only a summary of the information in
the Interim Financial Report.
Any investment decisions by investors and/or shareholders should be based on a consideration of the Interim
Financial Report as a whole and investors and shareholders are encouraged to review the Interim Financial
Report, which is available as detailed herein. Copies of the Interim Financial Report 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.
Orion Minerals Limited has a primary listing on the Australian Securities Exchange (ASX) and a secondary listing
on the Main Board of the Johannesburg Stock Exchange (JSE).
The Interim Financial Report was reviewed by Mazars Melbourne Assurance Proprietary Limited (Mazars
Melbourne), who expressed an unmodified review conclusion thereon. Shareholders are advised that, in order
to obtain a full understanding of the auditor's engagement, and more specifically, the nature of the information
reviewed, they should obtain a copy of Mazars Melbourne's report available at the Company's website:
www.orionminerals.com.au.
For and on behalf of the Board.
Errol Smart
Managing Director & CEO
13 March 2024
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. Actual results and developments may
vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or revise the forward-
looking statements made in this release to reflect events or circumstances after the date of this release. 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 to reflect any change
in expectations or assumptions;
• 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: 13-03-2024 09:26:00
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