Ardea Resources (ARL) Diggers & Dealers Mining Forum 2025 summary

Project overview and strategic partnerships

• Goongarrie Hub is a >40-year nickel-cobalt project in Western Australia, producing 30,000 tons of nickel and 2,000 tons of cobalt annually, with high-purity concentrate shipped to Japan for refining and only six of nine deposits assessed.

• Joint venture with Sumitomo Metal Mining and Mitsubishi Corporation, with partners funding a $98.5 million definitive feasibility study (DFS) to earn up to 50% interest, supported by Japan's Ministry of Economy, Trade and Industry.

• The project operates in a Tier 1 mining jurisdiction with significant infrastructure advantages, including rail, ports, and power.

• The Australian Federal Government has granted Major Project Status, highlighting national strategic importance.

• Kalpini Hub, hosting 2 million tons of nickel, remains 100% owned and offers further growth potential.

Resource base, production, and expansion potential

• Goongarrie Hub hosts Australia's largest nickel-cobalt resource: 584Mt at 0.69% Ni and 0.043% Co, for 4Mt contained Ni and 250kt Co.

• Ore Reserve totals 194.1Mt at 0.70% Ni and 0.05% Co, supporting a long mine life and future growth.

• Only six of nine mineral deposits currently assessed, leaving room for future expansion and brownfields development.

• Additional pipeline projects include Kalpini Hub (270Mt at 0.76% Ni, 0.05% Co) and exploration for lithium, REE, and scandium.

• Scandium and REE by-products offer further diversification and market opportunities.

Financial metrics and cost competitiveness

• 2023 PFS outlines a pre-tax NPV of A$7,625M (IRR 30%) and post-tax NPV of A$4,980M (IRR 23%), with average annual EBITDA of A$800M.

• Project payback is estimated at 3.1 years, with a 65% EBITDA margin and low operating costs after cobalt credit (US$5,763/t Ni in MHP LOM).

• Capital cost estimate is A$3,117M for a 3.5Mtpa operation, with DFS costs fully funded by partners.

• Positioned in the bottom cost quartile for nickel production, with C1 costs around $10,000/ton, competitive with global peers.

• Australia's new 10% production tax credit for processing costs will further enhance project economics.