Liontown Limited · ASX:LTR
Liontown — Investor Presentation (November 2021)
39 slides from Liontown's investor presentation, Nov 11, 2021
Slide 1: Fast charging towards a low carbon future
Fast charging towards a low carbon future Kathleen Valley Lithium Project DEFINITIVE FEASIBILITY STUDY & UPDATED DOWNSTREAM SCOPING STUDY | NOVEMBER 2021 ASX: LTR 1 | LIONTOWN RESOURCES May 2021
Slide 2: Important information
Important information Cautionary Statement Competent person statement The production targets and forecast financial information referred to in the Definitive Feasibility Study (DFS) and Downstream The Information in this Presentation that relates to Exploration Results and Mineral Resources for the
Slide 3: Highlights
Highlights Kathleen Valley (KV) is a globally significant lithium resource, located within a stable and established mining jurisdiction with a strong ESG position with growth optionality. The project is well positioned, with start of production expected to coincide with a significant spodumene marke
Slide 4: Liontown Corporate Overview
Liontown Corporate Overview Liontown is a leading ASX -listed lithium company focused on the development of the world-class Kathleen Valley Lithium Project Projects Corporate snapshot (8 Nov 2021) ASX: LTR Kathleen Valley World-class scale and economics Market Cap. Share price ($/s) 156Mt @ 1.4% Li2
Slide 5: Board and Management
Board and Management Liontown has a highly experienced Board and Executive Leadership Team, with a track record of delivering shareholder value Board of Directors Executive Leadership Team Tim Goyder Craig Williams Tony Ottaviano Chairman Non-Executive Director Managing Director / CEO +40 years (Min
Slide 6: Liontown's Strategy
Liontown’s Strategy We aim to be an ESG-leader, and a globally significant provider of battery materials for the rapidly growing clean energy market Stage 3 Stage 2 Liontown Full Potential Stage 1 • Established, integrated producer of high value lithium chemicals • Utilise Buldania resources to sust
Slide 7: Liontown's ESG Focus
Liontown’s ESG Focus Environment • Aspiring to have Best-in-class Scope 1 and 2 emissions and reduced impact on Climate Strategy Roadmap local surroundings due to UG4 approach First Production 1st Goal Net Zero • ~60% renewable energy target to reduce Scope 2 emissions 2024 2029 2034 • Minimising wa
Slide 8: Liontown's ESG Focus (cont.)
Liontown’s ESG Focus (cont.) Underground mining provides significant sustainability advantages compared to peers, owing to higher ore quality and grades and minimisation of waste Sustainability Benchmarking Social Engagement Liontown is expected to be one of the first new mining Tjiwarl input has be
Slide 9: Lithium Market Dynamics
Lithium Market Dynamics Production at Kathleen Valley is expected to commence in 2024, coinciding with a forecast market deficit that is expected to continue and grow beyond 2024. Liontown has optionality to further increase production towards the end of the decade to capitalise on the widening defi
Slide 10: Competitive Cost Curve Position
Competitive Cost Curve Position In 2030, Liontown will become a globally significant, cost competitive producer once 4Mtpa expansion ramp-up is complete Roskill Spodumene Cost Curve: 2030 Based on Roskill cost analysis 2030 Roskill Spodumene Forecast: ~US$1,364/dmt (CIF) Kathleen Valley 10 | LIONTOW
Slide 11: Kathleen Valley Benchmarked
Kathleen Valley Benchmarked Kathleen Valley is a uniquely positioned, globally significant Tier 1 lithium resource with exploration potential Australian hard rock lithium operations and advanced projects 1 By project, size, and grade Operating/Established In development Liontown 350 Pilgangoora (Pil
Slide 12: Kathleen Valley Location
Kathleen Valley Location Kathleen Valley is located in a stable, established and well-governed mining jurisdiction, giving Liontown confidence to execute an accelerated project delivery timetable and providing long-term operation support to Kathleen Valley Major Nickel Cliffs Town of Leinster and Go
Slide 13: November 2021 DFS Key Metrics
November 2021 DFS Key Metrics Based on April 2021 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 NPV1 (post-tax) A$4.2B Reserve Mining IRR / Payback 57% / 2.3 years 68.5Mt @ 1.34% Li2O &120ppm Ta2O5 2.5 Mtpa (increasing to 4Mtpa) SC6 Opex US$402/dmt Years 1-53 (FOB) US$314/dmt (excl. royalties) SC6 Opex U
Slide 14: Production Schedule and Mine Overview
Production Schedule and Mine Overview Kathleen Valley is a globally significant, high-grade resource – average grade in first five years of 1.5% 10-Year Production Schedule Mine Overview Spodumene Concentrate (kdmt) and Processing Grade (%) 1.6% 1.6% 1.6% 1.4% 1.4% 1.4% 1.3% 1.3% 1.2% 1.2% 739 705 6
Slide 15: Mining and Processing
Mining and Processing Conventional mining method, proven and reliable technology with a flowsheet grounded in evidence based design Underground Mining Method WOF Processing Strategy Conventional mining methods (room-and-pillar and long-hole Simple flowsheet – better operability and reliability s
Slide 16: Leading Capital Intensity
Leading Capital Intensity Despite inflationary pressures across the industry, Liontown’s DFS represents a significant improvement in capitalintensity at Kathleen Valley. Once expanded, Liontown will have one of the lowest capital intensity development projects globally and strong capital efficiency
Slide 17: <3 years to production: project milestones on schedule
We aim to accelerate the schedule to meet expected market shortfall Project milestones right Liontown well positioned to deliver project on accelerated schedule on schedule Updated Early PFS DFS FEED/ works/ Construction Complete Complete FID design complete Commissioning Production Q4 2020 Q4 2021
Slide 18: Offtake Strategy
Offtake Strategy Liontown intends to put in place large foundation offtake agreements, aiming to deliver diversification by geography and stag e in value chain Offtake Strategy Geographic Breakdown and Indicative Target Customers North America Europe • Discussions held with in excess of 50 parties w
Slide 19: Downstream Processing Opportunity
Downstream Processing Opportunity The updated DSS confirms: Value maximizing pathway for Liontown is a staged -build, integrated mining, processing and refining operation producing Lithium Hydroxide Monohydrate (“LHM”) Value Maximising The Integrated Project has the potential to Refinery will be inc
Slide 20: November 2021 Downstream Scoping Study Key Metrics
November 2021 Downstream Scoping Study Key Metrics Downstream Scoping Study updated for new input assumptions from the Kathleen Valley DFS NPV1 (post-tax) A$9.6 Billion Production Spodumene Feedstock IRR 56% 86.4ktpa LHM Processing feed of ~570 ktpa SC6.0 LOM Free Cash A$32 Billion Flow LHM Opex3 US
Slide 21: Building A Sustainable Company Starts With Good People
Building A Sustainable Company Starts With Good People Sustainability and governance has been approached to date with a clean slate and a small team, allowing the fundamentals to be established early to provide a valuable blueprint as the employee numbers and the company grows through aligned values
Slide 22: Liontown's Long-Term Strategy
Liontown’s Long-Term Strategy Liontown is planning for the future Kathleen Valley Spodumene Future Supply Near-term focus on maximising Liontown is continuously exploring spodumene value from Optionality for spodumene or processed lithium sales opportunities to increase battery Kathleen Valley thr
Slide 23: Liontown's Funding Strategy
Liontown’s Funding Strategy Discussions are progressing positively. Liontown is confident its optimal funding mix will be in place prior to final investment decision in Q2 2022. Short-term funding requirement • Strong interest from tier 1 domestic and international banks Debt • Indicative term sheet
Slide 24: Liontown's Investment Proposition
Liontown’s Investment Proposition Timed To Integrated Tier 1 Asset ESG-Positive Near Term Priorities Perfection Opportunity 1 Execute attractive offtake agreements to support final investment decision 2 Progress and finalise project funding Kathleen Valley is a Net zero trajectory, with Significan
Slide 25: Thank You
Thank You For More Information: Investor Relations: Tony Ottaviano Nicholas Read Managing Director Read Corporate T: +61 8 6186 4600 T: +61 8 9388 1474 info@ltresources.com.au nicholas@readcorporate.com.au @LiontownRes liontown-resources-limited 25 | LIONTOWN RESOURCES May 2021
Slide 26: Appendix
APPENDIX 1 Kathleen Valley Project Additional Information 26 November 2021
Slide 27: Resources & Reserves
Resources & Reserves Kathleen Valley is a globally significant, high-grade resource Mineral Resource Estimate1 – April 2021 Cut-off Resource Million Ta2O5 Li2O% Category Tonnes Li2O% (ppm) 0.55 Measured 20 1.3 145 Indicated 109 1.4 130 Inferred 27 1.3 113 TOTAL 156 1.4 130 Ore Reserve – November 202
Slide 28: DFS Key Parameters And Assumptions
DFS Key Parameters And Assumptions General and Economic DFS 1 Cost Assumptions DFS 1 Discount rate (real, post-tax) 8% LOM avg open pit mining costs 3 (A$/dmt ore mined 4) 28 Weighted average LOM SC6.0 (FOB Geraldton) US$1,392/t 5 LOM avg U/G mining costs 3 (A$/dmt ore mined 4) 45 Weighted average T
Slide 29: DSS Key Parameters And Assumptions
DSS Key Parameters And Assumptions General and Economic DSS 1 Cost Assumptions DSS 1 SC6.0 LOM average operating cost excl. transport 4 (US$/dmt SC6.0 Discount rate (real, post-tax) 8% 378 produced) SC6.0 Transport cost (to Geraldton incl. Port Charges) (US$/dmt SC6.0 SC6.0 weighted average price (F
Slide 30: Appendix 2
APPENDIX 2 Kathleen Valley Project Peer Benchmarking 30 November 2021
Slide 31: Lithium Equivalency (Li2O + Ta2O5) Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs Li2O% Tantalite (Ta2O5) $/lb 84 (B2) US$ Spodumene $/tonne 1,392 (B3) US$ Tantalite recovery 38% (B4) Per LTR testwork incl. off site losses ie 90% of 42% Ta2O5 = 0.0487 (F4) Spodumene Recovery 81% (B5) Per LTR testwork Ta2
Slide 32: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE Li2O Company Project Stage Information Source Mt Mt Mt MRE Mt Grade % Kathleen Valley Development 20.0 109.0 27.0 156.0 1.35 ASX Release 8/4/2021 Liontown Resources Buldania Scoping 0.0 9.1 5.9 14.9 0.97
Slide 33: Peer Comparison Information – Capital Intensity
Peer Comparison Information – Capital Intensity Average Annual Spodumene Capital Cost Production Capital Company Project Stage (US$m1) (ktpa) Grade (%) Intensity2 Information Source ASX Announcement – Kathleen Valley PFS Kathleen Valley – PFS Development 237 350 6.0 678 Presentation, 9 October 2020
Slide 34: Appendix 3
APPENDIX 3 Kathleen Valley Project Net Zero Definition 34 November 2021
Slide 35: Liontown will firm up its net-zero trajectory aspiration before FID
Liontown will firm up its net-zero trajectory aspiration before FID Selected examples of different “net zero” pathways >2°C 2°C “Well below 2°C” 1.5°C There are many Emissions different ways to meet “net (MtCO2e) zero” by 2050 2050 2050 2050 2050 Aligned with the Sector- Paris Agreement specific Ave
Slide 36: Appendix 4
APPENDIX 4 Buldania 36 November 2021
Slide 37: Buldania Project Overview
Buldania Project Overview Buldania is in a lithium-rich mineral province 1 Outcropping, fresh, spodumene-related mineralization 2 Mineralisation at Anna extends to the SE under shallow cover – strike length >1.4km and open with further drilling underway 3 15Mt Resource and similar geology to the Mt
Slide 38: Resource
Resource Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The MRE complements Liontown’s flagship Kathleen Valley Lithium Project 38 | LIONTOWN RESOURCES November 2021
Slide 39: Level 2, 1292 Hay St, West Perth WA 6005
Level 2, 1292 Hay St West Perth WA 6005 +61 8 6186 4600 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited 39 | LIONTOWN RESOURCES May 2021