Perpetual Resources Ltd. · ASX:PEC
Perpetual Resources — 121 Mining Investment Conference 2022
28 slides from Perpetual Resources's conference presentation, Oct 12, 2022
Slide 1: Beharra: The Mid West's Leading Silica Sand Development Project
121 Mining Conference – Sydney 12-13 October 2022 For personal use only BEHARRA THE MID WEST’S LEADING SILICA SAND DEVELOPMENT PROJECT
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Perpetual Resources Ltd (Perpetual) and is current as of 10 October 2022. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all of the information a
Slide 3: Competent Persons Statement
COMPETENT PERSONS STATEMENT For personal use only The information in this report that relates to the March 2020 Exploration information for the Beharra Project is based on information compiled and fairly represented by Mr Colin Ross Hastings, who is a Member of the Australasian Institute of Mining a
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Beharra PFS Outcomes Base case For personal use only Post-Tax NPV (ungeared) $231m Post-Tax IRR (ungeared) 55% • 100% owner of the Beharra high grade silica sand project Production 1.5mt/yr • Simple metallurgy and flow sheet Initial Capex A$39m • PFS demonstrates a long-life pr
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX Code PEC Share Price (as at 7 October, 2022) $0.027 Ordinary Shares 536.8m Options 20m Julian Babarczy Robert Benussi Market Capitalisation $14.5m Executive Chairman Managing Director Performance Shares 14.6m Shareholders (Top 20 represent 63% of Register
Slide 6: Project Portfolio
PROJECT PORTFOLIO For personal use only Three discrete Project Hubs – all located proximal to established infrastructure. Beharra1 – The Jewel in the Crown • Pre-feasibility study completed with compelling economics • Post tax NPV (ungeared): $231m • Post tax IRR (ungeared): 55% • Initial Capex: $39
Slide 7: Sand: The World's Largest Hard Commodity Market
SAND: THE WORLD’S LARGEST “We think sand is For personal use only HARD COMMODITY MARKET everywhere. We never thought we would run out of “The world uses 50 sand, but it is billion tonnes of sand starting in some every year. Enough to places” “Sand is the world’s build a 50x50m wall most consumed raw
Slide 8: Silica Sand Uses
SILICA SAND USES For personal use only • Glass - Architectural - PV solar cell glass covers - Smartphones - Tablets - Automotive - Fiberglass - Container Packaging • Building products - Quartz surfaces - Roofing shingles • Foundry sands - Automotive & Manufacturing • Fillers & Extenders • Chemicals
Slide 9: Asia Pacific: The Fastest Growing Silica Sand Market in the World
ASIA PACIFIC: THE FASTEST GROWING For personal use only SILICA SAND MARKET IN THE WORLD APAC Silica Sand Market Value (US$m) APAC Sales Volume (mtpa) 9,000 180 8,000 40mtpa of extra high 160 quality silica sand is needed in 7,000 Market growth of APAC US$3b is up for 6,000 grabs 140 5,000 120 4,000
Slide 10: Relative Size of End Markets
RELATIVE SIZE OF END MARKETS PEC Focus For personal use only Other Industry Abrasives 4% 5% • The Asian glass industry is the largest and highest growth for high grade silica sand in the region – this is Perpetual’s focus. Filtration 10% • Extensive metallurgical test work has confirmed Beharra sili
Slide 11: Our Target Markets Are the Biggest and Fastest Growing in Asia
OUR TARGET MARKETS ARE THE For personal use only BIGGEST AND FASTEST GROWING IN ASIA 87.5 70 Million metric 52.5 tonnes PEC focus 35 17.5 2% CAGR 3% CAGR 5% CAGR 5% CAGR 3% CAGR 5% CAGR 0 Other Abrasives Filtration Hydraulic Fracturing Foundry Total Asia Glass Industry Source: IMARC Group, Report Ti
Slide 12: Asia Pacific: Glass Industry in Focus
ASIA PACIFIC: GLASS INDUSTRY IN FOCUS For personal use only Silica Sand Used in China, Japan & Korea Silica Sand Used in China, Japan & Korea Glass Industry (Mtpa) Glass Industry (Mt in 2022) 55 50 Market growth of >10mtpa is 25% 45 needed for glass industry in China, Japan & Korea alone 40 48% 8% 3
Slide 13: Australia: An Established Silica Sand Exporter
AUSTRALIA: AN ESTABLISHED Sth Korea: AUS 68% ROW 32% For personal use only SILICA SAND EXPORTER China: AUS 48% Japan: AUS 70% ROW 52% ROW 30% • Australia exports around 6mtpa of high-grade silica sand* • 3.5-4.0mtpa from Cape Flattery • 1.0-1.5mtpa from Western Australia • Balance from various mines
Slide 14: Beharra: A World-Scale Low Impurity Silica Sand Mine
BEHARRA: A WORLD-SCALE LOW For personal use only IMPURITY SILICA SAND MINE • Compelling project economics with enhancement activities well progressed • Proven representative bulk metallurgy • Ideal product specification for low iron float glass applications • Ability to provide large tonnage at tigh
Slide 15: The Beharra Project
THE BEHARRA PROJECT For personal use only Location Approximately 100km south of Geraldton, comprising a north- south striking exploration licence covering an area of about 49km2 Scale The project lies within the northern part of the Perth Basin and contains a 13km strike length of high grade silica
Slide 16: PFS Project Economics
PFS PROJECT ECONOMICS Capital Expenditure Wet Processing Plant Cost (A$) $19.1m For personal use only On Site Infrastructure $3.5M Perpetual’s strategy is to operate with maximum flexibility, aiming to be able to respond to the expected positive changes in market demand. Off-Site Infrastructure (Bor
Slide 17: What Makes Beharra Special?
WHAT MAKES For personal use only BEHARRA SPECIAL? Beharra White Sand compared 90% White Sand to Beharra Yellow Sand • White sand has less impurities, the key to achieving a high value product • Higher impurities require more processing, which adds to capital and operating costs 100% • Yellow sand is
Slide 18: Standout White Sand Metallurgy
STANDOUT WHITE SAND 600 Fe2O3 ppm Results by Sub Domain Low Iron Sub Domains 465 555 565 For personal use only METALLURGY 500 337 365 365 400 300 210 235 165 165 177 180 189 195 200 155 100 • Focusing on white sand horizons seen as a significant 0 source of project enhancement relative to PFS result
Slide 19: Beharra Orebody Extensively Studied
BEHARRA OREBODY For personal use only EXTENSIVELY STUDIED Exceptional understanding of what makes Beharra unique • Clearly defined horizons of white and yellow sand • White sand sub-domains now fully tested • Selective mining of premium horizons to be explored >12m Intersection of White Sand separat
Slide 20: Simple White Sand Flow Sheet
SIMPLE WHITE SAND For personal use only FLOW SHEET • Simple flow sheet design due to straight forward metallurgy • Packaged plant sweet spot - 250t per hour planned • Flow sheet currently undergoing further optimisation For further information please refer to ASX announcement titled, “Beharra Test R
Slide 21: Tier 1 Regional Infrastructure
TIER 1 For personal use only INFRASTRUCTURE REGIONAL Beharra is one hour by high quality road to Geraldton Port, underpinning the economic viability of Beharra. RAV7.3 – PBS Super Triple Beharra | October 2022 | 21
Slide 22: Geraldton Port Overview
GERALDTON PORT For personal use only OVERVIEW • Current utilisation of 16-17 million tonnes per annum (FY21/22 year) • Post PMaxP capacity of approximately 25 million tonnes per annum • $350 million Port Maximisation Project (PMaxP) project underway: • New multi-user, multi-product storage facility
Slide 23: Strong Stakeholder and Approval Progress
STRONG STAKEHOLDER For personal use only AND APPROVAL PROGRESS Perpetual is earning its “social licence” to operate at Beharra Community • Strong working relationships with Traditional Owner groups • All key Native Title Agreements in place • Landmark collaboration with YSRC secures water licence •
Slide 24: Beharra Environmental Approvals
BEHARRA For personal use only ENVIRONMENTAL APPROVALS Primary Approvals • Western Australia Environmental studies currently completed and/or • Environmental Protection Permit (Part IV)* underway in support of approvals process: • Native Vegetation Clearing Permit (Part V)* • Federal • Flora and Vege
Slide 25: Fast-Track Part V Environmental Approvals
FAST-TRACK PART V For personal use only ENVIRONMENTAL APPROVALS 6-12 MONTHS Native Vegetation Native Vegetation DMIRS Clearing Permit Clearing Permit Assessment Issued/Appeals Stage Granted Step Step Step Step Step Step 1 2 3 4 5 6 Application to Public Exposure DWER/DMIRS EPA Report & DWER/DMIRS fo
Slide 26: Development Timeline
DEVELOPMENT TIMELINE For personal use only 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Offtake Discussions Statutory Environmental Approvals (Part V Process) DSO Scoping Study Reserve & Resource Update PFS Update Definitive Feasibility Study Decision to Fund ★★★ Order Long Lead Items Construction / Install Commis
Slide 27: New Project Acquisition
NEW PROJECT ACQUISITION For personal use only • Perpetual is confident that Beharra will be a key supplier of low impurity silica sand for the Asian region for many decades, subject to delivery of off take and final project assessment. • To augment the inherent value of Beharra, Perpetual has been a
Slide 28: Perpetual Resources Ltd Contact Details
For personal use only Perpetual Resources Ltd Level 2, Suite 16, 420 Bagot Road Subiaco WA 6008 perpetualresourceslimited.com.au Robert Benussi, Managing Director robert.b@pecsilica.com +61 410 415 335 Julian Babarczy, Executive Chairman
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