Elevra Lithium Limited · ASX:ELV
Elevra Lithium — Sayona Mining — Investor Presentation (May 2022)
55 slides from Elevra Lithium's investor presentation, May 2022
Slide 1: Plugged Into An Electric Future: Equity Raising Presentation
May 2022 PLUGGED INTO AN ELECTRIC FUTURE Equity Raising Presentation BRETT LYNCH, MANAGING DIRECTOR/CEO, SAYONA MINING Not for release to US wire services or distributed in the United States
Slide 2: Important Information
Important Information This presentation has been prepared by Sayona Mining Limited (“Sayona”, “Company”) in connection with Sayona’s proposed equity raising of new ordinary shares in Sayona (“New Shares”) comprising: • a placement of New Shares to professional (institutional) and sophisticated inves
Slide 3: Important Information
Important Information Not financial product advice This presentation has been prepared without taking into account the specific objectives, financial situation or needs of individual investors. Before making an investment decision, prospective investors should consider the appropriateness of the inf
Slide 4: Important Information: Previous ASX Releases
Important Information This presentation refers to the following previous ASX releases: • Positive Pre-Feasibility Study Enhances NAL Value, 23 May 2022 • Quarterly Activities/Appendix 5B Cash Flow Report, 29 April 2022 • New Lithium Pegmatite Discovery at Moblan Project, 26 April 2022 • Correction t
Slide 5: Key Highlights
Key Highlights Strategic portfolio of lithium assets located in Québec, Canada, hosting one of the largest combined spodumene resources in North America ELECTRIC FUTURE PLUGGED INTO AN Québec an attractive location outside of U.S. to satisfy growing demand for battery capacity, with advantages inclu
Slide 6: Equity Raising Summary
Equity Raising Summary PLUGGED INTO AN ELECTRIC FUTURE SLIDE / 6 ASX:SYA
Slide 7: Equity Raising Details
Equity Raising Details ~A$190 million Institutional Placement Offer Size and Structure • ~A$190 million placement of approximately 1,054.4 million new fully paid ordinary shares (“New Shares”) to ELECTRIC FUTURE PLUGGED INTO AN sophisticated and professional investors (“Placement”) • The Placement w
Slide 8: Sources & Uses of Funds
Sources & Uses of Funds NAL Refurbishment / Authier Development Sources of Funds (A$M) 9 Refurbishment of NAL plant – Plant refurbishment has commenced and is Placement Proceeds ~190 planned to be completed by the end of CY22 Total Sources1 ~190 ELECTRIC FUTURE PLUGGED INTO AN 9 Critical long-lead e
Slide 9: Indicative Placement Timetable
Indicative Placement Timetable Key dates for the institutional placement: EVENT DATE (2022) ELECTRIC FUTURE PLUGGED INTO AN Trading halt and Bookbuild Wednesday, 25 May 2022 Announcement of Completion of Placement and Trading Resumes on ASX Friday, 27 May 2022 Settlement of New Shares issued under t
Slide 10: Company Overview
Company Overview PLUGGED INTO AN ELECTRIC FUTURE SLIDE / 10 ASX:SYA
Slide 11: Corporate Summary
Corporate Summary Corporate Structure (Pre-Offer) Board & Senior Management Share on Issue 7,187M • Senior mining engineer, international company director and CEO with proven track record ELECTRIC FUTURE PLUGGED INTO AN Options on Issue (Various ex prices & dates) 356M Brett Lynch, • 30+ years of ex
Slide 12: Strategic Portfolio of Projects
Strategic Portfolio of Projects Focused on becoming a world-scale hard rock lithium producer based in Québec Near-term objective to begin supplying spodumene to the North American lithium battery supply chain by 2023 ELECTRIC FUTURE PLUGGED INTO AN Abitibi Hub - Three Core Assets – North America
Slide 13: Sayona's Value Creation Path
Sayona’s Value Creation Path LTM Share Price and Volume1 Jun-21 – Piedmont investment in Sayona Mar-22 – Entry into ASX 300 May-22 – NAL PFS $0.40 Québec and offtake released 400 agreement Sep-21 – Acquisition of 60% of Moblan for ELECTRIC FUTURE PLUGGED INTO AN Jun-21 – Court approves US$86.5 milli
Slide 14: Stepping Up The Lithium Value Chain
Stepping Up The Lithium Value Chain ELECTRIC FUTURE PLUGGED INTO AN 2027 + 2025 - 2026 Targeting the expansion of Northern Hub capacity Further invest in Québec 2023 - 2024 Targeting start of refinery operations at Abitibi battery metals to increase supply Objective to ramp-up SC6 Targetin
Slide 15: Portfolio Overview
Portfolio Overview PLUGGED INTO AN ELECTRIC FUTURE SLIDE / 15 ASX:SYA
Slide 16: Abitibi and Northern Hubs
Sayona Northern Hub Abitibi and Northern Hubs World-scale lithium supply chain Sayona Abitibi Hub Moblan Abitibi Hub expected to be the most sustainable and cost-effective ELECTRIC FUTURE PLUGGED INTO AN Concentrator lithium production in North America Moblan expands Sayona’s lithium supply capa
Slide 17: Abitibi Hub
Abitibi Hub The Abitibi Hub is poised to benefit from proximity to renewable hydropower and North American Battery Market Whabouchi Canada Sayona created the Abitibi Hub from three core assets NAL – Mine and concentrator, brownfield site with over ELECTRIC FUTURE PLUGGED INTO AN − $400 million inv
Slide 18: NAL Project Overview
NAL Project Overview Near-term lithium producer - brownfield mining and concentration operation Acquired NAL in August 2021 alongside strategic partner, Piedmont Lithium Inc. (ASX: PLL), through its subsidiary, Sayona Québec Inc. (75% Sayona/25% Piedmont) ELECTRIC FUTURE PLUGGED INTO AN Binding
Slide 19: Authier Project Overview
Authier Project Overview Authier integration into Abitibi Hub brings many advantages 100% owned project, located 45km from Val d’Or The Authier deposit is well understood and will be mined by using a simple open cut methods enhanced by the shallow and thick nature of the mineralisation, allowing
Slide 20: NAL Restart Plan
NAL Restart Plan All works completed to date form the basis for progressing to a Definitive Feasibility Study (“DFS”), expected later in 2022 on the integrated NAL/Authier operation ELECTRIC FUTURE PLUGGED INTO AN NAL concentrator commission on target for late Q3 2022 / early Q4 2022 Planned r
Slide 21: NAL PFS (May 2022) – Key Highlights
NAL PFS (May 2022) – Key Highlights • Strong Fundamentals 9 Confirmation of technical and financial viability of an integrated operation at NAL ELECTRIC FUTURE PLUGGED INTO AN • Attractive Economics at 9 Pre-tax NPV8 estimated at C$952 million1 (A$1.05 billion) for NAL operation with a pre-tax IRR o
Slide 22: NAL PFS (May 2022) – Summary Outputs
NAL PFS (May 2022) – Summary Outputs Item Unit Results Results Results Average Annual Ore Feed to Plant Mtpa 1.5 Total Ore Mined Mt 183.4 Annual Spodumene Concentrate Production (@ 6% Li2O) Tonnes/y 163,266 Rod Mill Feed Grade % 1 ELECTRIC FUTURE PLUGGED INTO AN Blended Li2O Recovery % 67.7 Life of
Slide 23: NAL PFS (May 2022) – Additional Information
NAL PFS (May 2022) – Additional Information NAL / Authier Integration Value-Add Opportunities In addition to the 29.2 Mt of ore, a total of 150.4 Mt of waste and 3.8 Mt Significant optimisation and value-add opportunities: of overburden to be mined, resulting in an overall LOM strip ratio of 5.3
Slide 24: NAL PFS (May 2022) – Production Profile
NAL PFS (May 2022)– Production Profile NAL PFS is based on an annual ore feed of circa 1.5 Mtpa to the process plant to deliver average annual output (steady state) of 163,000 tonnes annually of spodumene concentrate containing 6% Li2O. The current LOM plan is based on a multi-stockpiles strateg
Slide 25: NAL PFS (May 2022) – Production Profile
NAL PFS (May 2022)– Production Profile NAL Concentrate Production Profile NAL Concentrate Production Profile ELECTRIC FUTURE PLUGGED INTO AN ASX:SYA 25 Note: Refer to ASX announcement on 23 May 2022 for further details and assumptions
Slide 26: NAL PFS (May 2022) – Infrastructure Plan
NAL PFS (May 2022) – Infrastructure Plan Proposed mine design outlines a pit of ~1,350m in length, an average NAL Site Layout Schematic of 750m width and down to a final pit depth of 270m LOM development plan includes pit optimisation, pit design, mine ELECTRIC FUTURE PLUGGED INTO AN scheduling
Slide 27: NAL PFS (May 2022) – Flowsheet
NAL PFS (May 2022) – Flowsheet NAL concentrator previously operated from 2013-14 and NAL Concentrator Flowsheet 2017-19. Updated flowsheet reflects higher capacity on critical steps such as ore sorting, magnetic separation and high-density conditioning ELECTRIC FUTURE PLUGGED INTO AN Crushing ci
Slide 28: NAL PFS (May 2022) – Capex & Opex
NAL PFS (May 2022) – Capex & Opex Capex for the refurbishment of NAL is estimated at C$91m (~A$100m) which Opex estimates based on contract mining costs obtained includes a C$14m (~A$15m) contingency spread across the first 2 years from various mining contractors for the first four years of oper
Slide 29: NAL PFS (May 2022) – Financial Summary
NAL PFS (May 2022) – Financial Summary Item Unit Value (A$) Value (US$) Value (C$) Mine life Years 27 Strip Ratio waste t: ore t 5.3 Total NAL Mined Tonnage Mt 183.4 Total Mill Feed Tonnage, including Authier Mt 37.2 ELECTRIC FUTURE PLUGGED INTO AN Total Mill Feed Grade, including Authier % 1.00 Rev
Slide 30: NAL PFS (May 2022) – NPV Sensitivity
NAL PFS (May 2022) – NPV Sensitivity ELECTRIC FUTURE PLUGGED INTO AN ASX:SYA 30 Note: Refer to ASX announcement on 23 May 2022 for further details and assumptions
Slide 31: NAL PFS (May 2022) – Pricing Sensitivity
NAL PFS (May 2022) – Pricing Sensitivity ELECTRIC FUTURE PLUGGED INTO AN ASX:SYA 31 Note: Refer to ASX announcement on 23 May 2022 for further details and assumptions
Slide 32: NAL & Authier - Timeline To Production
NAL & Authier - Timeline To Production In parallel with key project milestones outlined below, Sayona expects to release an updated Authier feasibility study in Q2 CY22 and a confirmatory NAL / Authier integrated DFS later in 2022 Timeline to Production in the Abitibi Hub ELECTRIC FUTURE PLUGGED I
Slide 33: Tansim Project
Tansim Project High grade, large tonnage expansion project 355 mineral claims spanning 20,256 ha of prospective lithium acreage, approx. 82 km south-west of Authier project ELECTRIC FUTURE PLUGGED INTO AN Exploration Target1 for Viau-Dallaire prospect estimated at between 5-25 million tonnes, at
Slide 34: Northern Hub
Northern Hub Developing ELECTRIC FUTURE PLUGGED INTO AN Moblan drilling program underway to expand resource base Recent discovery of a significant new southern lithium pegmatite zone Recently acquired 121 new claims adjacent to Moblan (Lac Albert); claims to be assessed for lithium mineralisat
Slide 35: Moblan Project – Acquired by Sayona in 2021
Moblan Project – Acquired by Sayona in 2021 Moblan is a large, high grade property that anchors Sayona’s new “Northern Hub” Located 130km to the N-NW of Chibougamau, with year-round highway/gravel road access, rail access at Chibougamau and grid power 52km from site ELECTRIC FUTURE PLUGGED INTO AN
Slide 36: Investment Summary
Investment Summary • Abitibi and Northern Hubs in Quebec represent a world-class and synergistic group of STRATEGIC PORTFOLIO lithium assets ELECTRIC FUTURE PLUGGED INTO AN SPEED TO PRODUCTION • First spodumene production by 2023 • Proven ability to consolidate projects to create integrated mining a
Slide 37: Appendices
Appendices PLUGGED INTO AN ELECTRIC FUTURE SLIDE / 37 ASX:SYA
Slide 38: Morella Lithium Earn-In
Morella Lithium Earn-In Under earn-in agreement, Morella Corporation (ASX:1MC) Morella exploration and drilling program: (“Morella”) to spend A$1.5M on exploration over three years ELECTRIC FUTURE PLUGGED INTO AN to earn 51% interest in lithium leases − Initial program focused on 3 discrete dril
Slide 39: WA Lithium & Gold Drilling
WA Lithium & Gold Drilling A$2.7M budget and work ELECTRIC FUTURE PLUGGED INTO AN program for CY22: Mt Dove Project – 3,500m aircore and RC drilling, follow-up drilling Deep Well Project – 3,500m aircore and RC drilling, follow-up drilling Tabba Tabba Project – Airborne geophysics, 2,000m airc
Slide 40: Abitibi Hub - JORC Resource
PLUGGED INTO AN ASX:SYA 40 ELECTRIC FUTURE Abitibi Hub - JORC Resource
Slide 41: Abitibi Hub - NI 43-101 Mineral Resource
Abitibi Hub - NI 43-101 Mineral Resource ELECTRIC FUTURE PLUGGED INTO AN ASX:SYA Cautionary Note: National Instrument 43Ǧ101 is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. The Mineral Resources stated are foreign estimates and are not reported in accorda
Slide 42: Key Risks & International Offer Jurisdictions
Key Risks & International Offer Jurisdictions PLUGGED INTO AN ELECTRIC FUTURE SLIDE / 42 ASX:SYA
Slide 43: Key Risks
Key Risks Risk factors include but are not limited to the following: 1. General An investment in New Shares is subject to risks, some of which are beyond the control of Sayona. The existence of risk means that the performance of ELECTRIC FUTURE PLUGGED INTO AN the Company or the New Shares could be
Slide 44: Key Risks
Key Risks Funding risks in general In addition to the Company’s specific immediate need to finance the upgrade of the concentrator (see discussion under the heading immediately above), the future development of the Company’s Southern and Northern hubs (the Projects) will require the Company to secur
Slide 45: Key Risks
Key Risks Resource Estimates Resource estimates are expressions of judgement based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. In addition, by their very nature, res
Slide 46: Key Risks
Key Risks Land Access From time to time, the Company’s tenements, or tenements the Company has a legal or beneficial interest in, may be subject to access restrictions. These may relate to the freehold owner of the land on which the tenements are located, or the rights of indigenous people. In those
Slide 47: Key Risks
Key Risks 3. Industry Risks Development Risk There is a risk that the Company will not be able to mine any mineral resources or ore reserves discovered in its exploration-tenement portfolio, so as to ELECTRIC FUTURE PLUGGED INTO AN produce a satisfactory commercial return on its investment. There ar
Slide 48: Key Risks
Key Risks Market Volatility Share market conditions may affect listed securities regardless of the operating performance of a particular company. Market conditions are affected by many factors including investor confidence, general national and global economic outlook, changes in or outlook on inter
Slide 49: Key Risks
Key Risks Economic factors (including inflation) and supply chain risks The outbreak of the coronavirus disease (COVID–19 Pandemic) and the responses of governments around the world to it, had a severe impact on ELECTRIC FUTURE PLUGGED INTO AN global supply chains (particularly for goods produced in
Slide 50: Key Risks
Key Risks Insurance There are significant exploration and operating risks associated with exploring for lithium, including adverse weather conditions, environmental risks ELECTRIC FUTURE PLUGGED INTO AN and fire, all of which can result in injury to persons as well as damage to or destruction of the
Slide 51: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 52: International Offer Restrictions
International Offer Restrictions Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certainty any purchase co
Slide 53: International Offer Restrictions
International Offer Restrictions Liechtenstein This document has not been, and will not be, registered with or approved by the Financial Market Authority of Liechtenstein. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in Liechtenstein except in cir
Slide 54: International Offer Restrictions
International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material rela
Slide 55: International Offer Restrictions
International Offer Restrictions United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of any state