Savannah Resources PLC · LSE:SAV
Savannah Resources — Investor Presentation (June 2023)
29 slides from Savannah Resources's investor presentation, June 2023
Slide 1: Enabling Europe's energy transition
Enabling Europe’s energy transition Savannah Resources Europe’s Leading Conventional Lithium Project Company Presentation JUNE 2023
Slide 2: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Savannah Resources – At a Glance
Savannah Resources – At a Glance •Pure play lithium development company; European focused KEY DATA SHAREHOLDER ANALYSIS3 MARKETS AIM, FWB, SWB •100% ownership of the Barroso Lithium Project: Europe’s Al largest spodumene resource (28Mt at 1.05% Li2O) with TICKER – ALL MARKETS SAV Marjan major explor
Slide 4: The Outlook for the Lithium market remains strong
The Outlook for the Lithium market remains strong •Lithium market dominated by rapidly growing EV sales & constrained raw material Global EV sales1 EV sales in Europe2 supply 12,000 14 3,000 25 10,000 12 2,500 20 •Global Demand3 to grow 4X by 2030. European demand5 is expected to grow 12X 000s vehic
Slide 5: The Barroso Lithium Project: Savannah's contribution to EU decarbonization
The Barroso Lithium Project: EUROPEAN COMMISSION Savannah’s contribution to EU decarbonization PRESIDENT VON DER LEYEN PORTUGAL, EU LOCATION EUROPE’S LARGEST 1 ESG: FOCUSED ON RESPONSIBLE/LOW SPODUMENE CARBON PRODUCTION LITHIUM PROJECT “…Lithium and rare earths are already replacing gas and oil at t
Slide 6: Barroso Lithium Project: Ideally located for Europe's battery value chain
Barroso Lithium Project: Ideally located for Europe’s Excellent Project Setting: battery value chain •28km from the A24 freeway, with purpose- built access road •1km from grid power with 68% renewable power •Well located to benefit from demand created by planned lithium refineries in Portugal and el
Slide 7: Current Resources & Tenure; Exploration Upside
Barroso Lithium Project: Current Resources & Tenure Exploration Upside •30-year mining lease1 and a 3-block mining lease application Current JORC Resource Estimate2 Measured Indicated Inferred Total 6.6MT 11.8MT 9.6MT 28MT @ 1.1% Li2O @ 1.0% Li2O @ 1.1% Li2O @ 1.05% Li2O Additional Exploration Targe
Slide 8: Barroso Lithium Project: New Design approved by Portugal's environmental regulator
Barroso Lithium Project: New Design approved by •Mining 1.5Mtpa of ore to produce Portugal’s environmental regulator c.190ktpa of spodumene concentrate, 400ktpa Ceramic by-products (feldspar/quartz) and 100ktpa low grade bulk pegmatite •Site infrastructure placed away from water courses, in low lyin
Slide 9: Barroso Lithium Project: Scoping Study Mining schedule
Barroso Lithium Project: Scoping Study Mining schedule1 •Mining to be undertaken by a contractor •Conventional open pit mining (no mining at nights) •5 open pits sequentially feeding the central processing facility (concentrator) •1.5Mt per annum throughput over c.14-year life1 •Mining Plan based on
Slide 10: Barroso Lithium Project: a proven processing circuit
Barroso Lithium Project: a proven processing circuit1 •Conventional processing combining Dense Media Separation and a flotation circuit utilising Environmentally friendly environmentally friendly reagents Process Flowsheet •Producing a high quality spodumene concentrate, in line with current industr
Slide 11: Barroso Lithium Project: Scoping Study Key inputs
Barroso Lithium Project: Scoping Study Key inputs1 Production (Life of Mine/annual average): • 5.5% Li2O spodumene concentrate: 2.6Mt/191ktpa • Ceramic by-product (Feldspar/Quartz): 5.8Mt/400ktpa Costs: •Initial Capex: US$236m (ex. contingencies), includes US$40m for community related measures •Tota
Slide 12: Barroso Lithium Project: Robust Economics
Barroso Lithium Project: Robust Economics1 Annual averages: •Revenue: US$304m •EBITDA: US$205m •Post-tax free cash flow: US$124m Life of Mine: •Revenue: US$4,151m •EBITDA: US$2,793m •Post-tax free cash flow: US$1,694m •Corp Tax & royalties: US$924m •Pre-tax NPV(8%): US$1,419m •Pre-tax IRR: 101.8% •P
Slide 13: Barroso Lithium Project: Robust Economics – Sensitivity
Barroso Lithium Project: Robust Economics1 Sensitivity analysis of Post-tax NPV Sensitivity analysis of key project inputs shows: •The Project is almost equally geared to changes in spodumene price, Li2O recovery rates and Li2O grade •A +/- 20% change in price drives a c.32% delta in post-tax NPV •I
Slide 14: Barroso Lithium Project: Environmental & social considerations
Barroso Lithium Project: Environmental & social Community: considerations include: •No mining at night; daytime blasting timetable restricted •Dust suppressed; Vibration & noise well below legal limits •New road layout avoids local villages & towns Water: •No water taken from the Covas River •Water
Slide 15: Barroso Lithium Project: Stakeholder Engagement and Social Commitments
Barroso Lithium Project: Stakeholder Engagement and Social Commitments EUROPEAN COMMISSION Relationships refreshed; commitments maintained VICE PRESIDENT ŠEFČOVIČ •Regular engagement maintained with all key local and national stakeholders •Social Impact Assessment initiated by Community Insights Gro
Slide 16: Barroso Lithium Project: Timeline & next steps
Barroso Lithium Project :Timeline & next steps Revised EIA submitted (Mar) 2nd public consultation (Mar-Apr) Positive DIA received (May) New Scoping Study (Jun) • Stakeholder engagement & social Resource increased studies continuing Savannah acquires & to 27Mt at 1.06% Li2O •Final investment •
Slide 17: Barroso Lithium Project: Detailed development timeline
Barroso Lithium Project: Detailed development timeline Approval of Approval of Long Board Approval Mechanical Feasibility Study Lead Items for Project Completion 2023 2024 2025 2026 Project Execution Permitting DIA RECAPE EIA - Bypass Road Resource Update Drilling Resoure model update Engineering Sc
Slide 18: Barroso Lithium Project: Strategic Partnerships and Offtake
Barroso Lithium Project: Strategic Partnerships and •Strategic decision to leave 100% of Offtake production unallocated until permitting (DIA) was received and Scoping Study metrics have been updated to reflect the new project design EUROPE’S LITHIUM-ION BATTERY VALUE CHAIN •Unprecedented demand for
Slide 19: Savannah's Experienced Executive Management Team
Savannah’s Experienced Executive Management Team DALE FERGUSON, CHIEF EXECUTIVE OFFICER1 SASCHA KEEN, CHIEF STRATEGY OFFICER Over 25 years of experience across greenfield and near mine Over 25 years’ experience in banking, resources finance and exploration, resource delineation, feasibility studies,
Slide 20: Savannah to unlock greater value by passing milestones
Savannah to unlock greater value by passing For Investors: A clear path to greater value milestones (2023-26): •Completion of licencing processes •Completion of DFS P/NAV (x) for lithium peer group1 •Offtake & strategic partnerships 1.8 Post DFS •Final Investment Decision 1.6 1.4 •Financing and cons
Slide 21: Enabling Europe's energy transition
Enabling Europe’s energy transition Savannah Resources Plc Tel: +44 207 117 2489 Website: www.savannahresources.com Email: info@Savannahresources.com Follow @SavannahRes on Twitter Follow Savannah Resources on LinkedIn UK Media Relations: Camarco Switchboard: +44 203 757 4980 Website: https://www.ca
Slide 22: Appendix
Enabling Europe’s energy transition Appendix www.savannahresources.com info@Savannahresources.com Follow Savannah Resources on LinkedIn Follow @SavannahRes on Twitter 22
Slide 23: Barroso Lithium Project: First Year of Production
Barroso Lithium Project: First Year of Production Production from the Pinheiro pit underway adjacent to the processing plant; Water storage and Tailings Storage (TSF) facilities established Pit mined in two stages, first lobe used in TSF construction, second lobe backfilled into first lobe Processin
Slide 24: Barroso Lithium Project: Years 2-8
Barroso Lithium Project:Years 2-8 Production from the Grandão pit to north of processing plant. TSF and rehabilitated Pinheiro pit adjacent to processing plant Pit mined in two stages, first lobe into Temporary Waste Rock Facility, second lobe backfilled into first lobe Temporary Waste Rock Facility
Slide 25: Barroso Lithium Project: Years 8-9
Barroso Lithium Project : Years 8 - 9 Opening of the small pit at NOA alongside another water storage facility in the western section of the Concession Area NOA is later backfilled with Mine Waste 25
Slide 26: Barroso Lithium Project: Years 9-12
Barroso Lithium Project: Years 9-12 Opening of the Reservatório pit, the Project’s second largest, and the backfilling of the adjacent NOA pit leaving one of the Project’s permanent waste rock storage facilities Subsequent rehabilitation of Reservatório Pit mined in two stages, second lobe backfille
Slide 27: Barroso Lithium Project: Rehabilitation & Closure
Barroso Lithium Project: Rehabilitation & Closure The Grandão pit, Tailings Storage Facility, Pinheiro pit and former processing plant area landscaped and revegetated after closure with impacted water courses reinstated 27
Slide 28: The Critical Raw Materials Act ('CRMA')
The Critical Raw Materials Act (‘CRMA’) EUROPEAN COMMISSION The European Commission takes action to secure a sustainable supply of CRMs for Europe PRESIDENT VON DER LEYEN “CRMs are indispensable for a wide set of strategic sectors including the net zero industry…” •Critical and strategic raw materia
Slide 29: Thank you
Enabling Europe’s energy transition Thank you www.savannahresources.com info@Savannahresources.com Follow Savannah Resources on LinkedIn Follow @SavannahRes on Twitter 29
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