Capital Metals plc · LSE:CMET
Capital Metals — Investor Presentation (January 2022)
25 slides from Capital Metals's investor presentation, January 2022
Slide 1: Developing High-Grade Mineral Sands in Sri-Lanka
C A P I T A L ME T A L S Developing High-Grade Mineral Sands in Sri-Lanka JANUARY 2022
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation (the “Presentation”) has been prepared by No undertaking, representation, warranty or other assurance, the securities of the Company within the meaning of the Capital Metals Plc (“CMET” or “The Company”) express or implied, is made or given
Slide 3: Overview - Eastern Minerals Project
Overview - Eastern Minerals Project High-grade Mineral Sands in Sri Lanka NEAR TERM PRODUCTION AND PATHWAY TO EARLY CASHFLOW Over 4 years of development and studies to date with two stage construction strategy Jaffna AMONGST HIGHEST GRADE IN GLOBAL PEER GROUP 17.6% Total Heavy Minerals (THM) incl il
Slide 4: Corporate
Corporate AT A GLANCE SIGNIFICANT SHAREHOLDERS Market Cap GBP £16.48* Brent Holdings Limited (Family office) 14.38% Share Price 9.60 p* Roman Resources Management Pty Ltd 8.36% Shares on Issue 172,436,766 Stanton Investments Ltd 7.35% 12 Month Range 8.6p – 23.7p KL Kepong International Limited 6.49%
Slide 5: A Team To Deliver
A Team To Deliver International & local team with proven experience in mineral sands project development Greg Martyr / Non- Executive Chairman Michael Frayne / CEO + Executive Director +25 years’ resource investment banking experience +25 years’ technical and commercial experience in resource sector
Slide 6: Corporate Strategy
Corporate Strategy Resource upgrade, drilling + studies - a potential for increase in share price. 1 Q1 2021 5 H1 2022 RTO and readmission to trading on London AIM Offtake agreements 2 Q1 2022 6 H1 2022 Industrial Mining License submitted and awaiting decision Finance 3 Q1 2022 7 H1 2022 Initial Dri
Slide 7: Eastern Minerals Project
Eastern Minerals Project High-Grade Mineral Sands Near Term Production Exploration Upside High-Grade JORC Mineral Resource 17.2mt at 17.6% THM (Total Heavy Stage 1 - Produce Heavy Mineral Mineralisation continues at depth Minerals) Concentrate Drill intersections incl. > 90% THM recoveries Stage 2 -
Slide 8: Mineral Sands Market
Mineral Sands Market Favourable product split Titanium Dioxide (TiO2) GDP Growth % of VALUE* TiO2 demand grows in line with GDP growth Zircon 20% Pigment accounts for 90% of demand Ilmenite Rutile 14% 51% Ilmenite 1 Zircon 22 Pigment manufacture, titanium slag Opacifier in ceramic glazes, Garnet 15%
Slide 9: Pricing and latest market dynamics
Pricing and latest market dynamics ∙ Price increases in 2021 due to both supply and demand changes ∙ Ilmenite up to $340+ per tonne, Rutile up 40% to over $1,700 per tonne since last October, Zircon up 14% to $1,630 per tonne* since end March ∙ Supply disruption to mineral sands markets – Richards B
Slide 10: Mineral Resource & Assemblage
Mineral Resource & Assemblage Good spread of revenues across product range. Current resource only first 3m from surface. 100% of Project JORC Resource Resource THM THM ‘000t 5% Category ‘000t % THM cut-off High Grade of 17.6% THM Measured 5,819 19.9 1,159 Indicated 8,602 16.6 1,432 Inferred 2,791 16.
Slide 11: Project Comparison – Grades and Slimes
Project Comparison – Grades and Slimes* Valuable Heavy Minerals % TiO2 Grade - % 16 12 14 10 12 10 8 8 6 6 4 4 2 2 0 TSL - SC STA - TZ BSE - KW STA STA - WA I-EB CML IMA I-MB KMR MRC BSE - MG I- SR 0 I-SL SFX DRX JAY I-PB ATR SAV I-AS ILU BSE TSL STA BSE - KW MRC STA - TZ STA - WA I- SR TSL - SC I-S
Slide 12: Mineral Processing Plants – Wet Plant (Stage 1)
Mineral Processing Plants – Simple Mining 2 Stage Process WET PLANT – MINE SITE (Stage 1) Located adjacent to the mine site Process: Clean silica sand returned to mine cell area Mine sand slurry spirals by gravity – negligible slimes HMC via truck to dry plant (Oluvil Port) Rehabilitation commences
Slide 13: Simple Extraction Process - Stage Process
Simple Extraction Process - 2 Stage Process Low CAPEX US$35m* No Blasting and Continuous Rehabilitation Environmentally Responsible Mining STAGE 1 MINERAL SEPARATION PLANT (DRY WET PLANT - MINE SITE Heavy Mineral PLANT - OLUVIL PORT) Ore Mining Mine Feed Unit Concentrate (HMC) Silica sand returned f
Slide 14: Mineral Processing Plants – Dry Plant (Stage 2)
Mineral Processing Plants – Simple Mining 2 Stage Process DRY PLANT – OLUVIL PORT (Stage 2) Mineral Separation Plant proposed to be located at Oluvil Port Product separation into ilmenite, rutile, garnet and zircon using various techniques: Electrostatic Magnetic Particle size differences Additional
Slide 15: Regional Land Position Around Initial Mining Area
Regional Land Position Around Initial Mining Area Industrial Mining License (IML) 6 IML applications lodged Issue of first IML targeted for Q1 2022 IMLs to be sought as per mine plan Exploration License (EL199) IML applications planned for 2022 over existing resources Further exploration work complet
Slide 16: Regional Land Position – Exploration License Applications
Regional Land Position Around Initial Mining Area 9 Exploration License Applications 4 onshore applications for 272km2 5 offshore applications for 351km2 Exploration upside Potential for increase in resources – at depth, inland & offshore Less than 10% of project area drilled to date CAPITAL M 15 ET
Slide 17: Oluvil Port & Infrastructure
Oluvil Port & Infrastructure Potential availability of the port may reduce cost of operations Oluvil Port 32km by road from wet plant at mine OLUVIL PORT Proposed Location for Unused commercial port – construction completed in 2013 Mineral Separation Plant Discussions with port authorities for port
Slide 18: ESG – Community
ESG – Community Assisting the community during Partnering local education & uplifting Community engagement is the difficult times standards in the community key to permitting Maintain ongoing presence and continued engagement with International and local Large local workforce when community consultan
Slide 19: ESG - Environment
ESG - Environment Environmental Impact Proposed 8 Week Use of recognised rehabilitation Assessment (EIA) + Studies Rehabilitation Cycles methods with local staff ensuring completed over 4 years skills transfer and sustainability Progressive rehabilitation Continuous monitoring of aligned with mine p
Slide 20: Investment Case
Investment Case Mineral sands project in Sri Lanka A Geologically Advantageous Experienced Deposit Leadership Team Highly experienced Board Very high 17.6% THM grades and in-country team to bring the mine into production Near Term Production ESG and Infrastructure Close to port, existing Stage 1 - H
Slide 21: x< OQ = Lu) a. a. <
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Slide 22: High Grade for High Value
High Grade for High Value* Value per Resource Tonne Sand - US$/t* 70 60 50 Capital Metals in Situ Resource Value of $ 40 per tonne* 40 ( Before mining and processing ) 30 20 10 0 I-MB CML IMA ILU ATR I-EB SFX I-SL I-PB I- SR JAY DRX BSE- I-AS BSE STA-TZTSL-SC MRC TSL KMR SAV BSE - STA STA- MG KW WA
Slide 23: Sri Lanka
Sri Lanka Strategic Location in South Asia Sri Lanka is situated strategically in South Asia at the crossroads of major shipping routes to South Asia, the Far East and the continents of Europe and America, making the country a convenient port of call for shipping lines and airfreight services. Furth
Slide 24: Bulk Sample Test Work
Bulk Sample Test Work 4 Tons Bulk Sample Mulliyadi sample sites Downer (Mineral Technologies) facility in QLD Australia Clean sand with very low slimes & oversize Exceptional Spiral Results 90% Total Heavy Minerals >98% recovery of zircon, TiO2 and monazite minerals on two-stage spiral circuit Bulk
Slide 25: Michael Frayne / CEO
For any information or inquiries Michael Frayne / CEO michael.frayne@capitalmetals.com +44 20 8142 3648 CAPITAL M ETALS
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