AIC Mines (A1M) Investor Update summary

Expansion and funding agreements

• Entered an AUD 77.6 million EPC contract with GR Engineering Services to expand Eloise processing facility from 725,000 to 1.1 million tonnes per annum, with key equipment sized for 1.5 million tonnes per annum.

• Secured a $40 million loan and an offtake agreement with Trafigura for 400,000 dry metric tons of Jericho concentrate.

• Launched an AUD 55 million placement and announced a share purchase plan to fund non-plant infrastructure and exploration.

• Total funding required for the expansion is AUD 215.8 million over the next two years.

Rationale and project economics

• Upfront investment in oversized equipment increases initial costs but enables rapid, low-cost expansion to 1.5 million tonnes per annum.

• At full expansion, production is expected to double and operating costs to fall by 20%, significantly boosting cash flow and NPV.

• Every financial model indicated faster ramp-up to 1.5 million tonnes per annum maximizes NPV.

• The expansion leverages the asset further to copper prices, enhancing investment appeal.

Use of funds and infrastructure upgrades

• Funds will be used for plant expansion, non-plant infrastructure (NPI), Jericho mine development, and exploration over 24 months.

• Major NPI items include power and water upgrades, tailings dam lifts, new workshops, offices, muster rooms, and warehouse capacity.

• Peak funding needs occur in the next 18 months, with costs front-loaded rather than back-ended.

• Non-plant infrastructure upgrades total AUD 37.6 million.