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ANNUAL GENERAL MEETING 30 NOVEMBER 2015

2015

AN EXTREMELY CHALLENGING YEAR


OPERATIONAL CHALLENGES LEADING TO UNDERPERFORMANCE OF THE HERA PROJECT

  • High Process and Maintenance Costs

  • Low metal recoveries, particularly gold

  • Hera Resource revision


    DISPUTE WITH GLENCORE

  • AMI seeking a restructure of its liabilities, including the exercise of conversion rights

  • Glencore alleging loan default and attempted appointment of an administrator

  • Dispute heard in the NSW Supreme Court


    SENTIMENT

  • Collapse in investor sentiment for the resources sector

  • Major correction in base metal prices

    2016

    A PATHWAY FORWARD

    SOLID TURNAROUND IN HERA PROJECT PERFORMANCE

  • Hera cash positive: $5.0m EBITDA in September quarter

  • Lead and zinc recoveries at design

  • Continuing improvement in gold recoveries

  • Substantial positive gold reconciliation


    SETTLEMENT AND FUNDING AGREEMENT WITH GLENCORE

  • All legal disputes dismissed

  • All existing debt repayments deferred for at least 2 years

  • All interest on new and existing finance facilities suspended for 2 years

  • Net $21.5m new funding

  • Aurelia conversion rights maintained

    LOOKING AHEAD

  • Funding secured to rectify remaining issues in the Hera process plant

  • Building a new business plan with Glencore, with a view to delivering the Hera

Expansion


GLENCORE SETTLEMENT


SETTLEMENT AND FUNDING AGREEMENT REACHED WITH GLENCORE


The Agreement highlights are:

  • All legal disputes with Glencore are settled

  • All existing debt repayments are deferred for at least two years

  • All interest is suspended on the current and new senior finance facilities for two years**

  • Glencore to provide additional funding of a net $21.5 million to support the business through additional loans and credit support

  • Additional funding includes an advance payment of $5 million which has been received

  • Aurelia maintains conversion rights to convert up to $77 million of the facilities at the end of the two year deferral period

Aurelia can now proceed with optimising the Hera project and position the business for growth


**Except the A$15m Pre-Export Finance Loan, where repayments commence 12 months after drawdown (refer Appendix)

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