Vital Metals Ltd · ASX:VML
Vital Metals — Investor Presentation (March 2021)
34 slides from Vital Metals's investor presentation, Mar 19, 2021
Slide 1: Becoming Canada's First Rare Earths Producer
For personal use only Becoming Canada’s First Rare Earths Producer Nechalacho Project Canada March 2021 Investor Presentation www.vitalmetals.com.au MARCH 2021 Investor Presentation March 2021
Slide 2: Disclaimer
Disclaimer For personal use only This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward-looking statements are all statements other than statements of historical fact included in this
Slide 3: Vital on track to become Canada's first RE producer
Vital on track to become Canada’s first RE producer For personal use only Highlights Operations Commencing April 2021 Definitive Off-Take Agreement Signed • Off-take Agreement signed with REEtec for a base of 1,000t REO (ex-Cerium) per annum for a period of 5 years • Option to increase off-take to 5
Slide 4: Company Overview
Company Overview For personal use only Capital Structure ASX Code VML Shares on Issue 2,674m Performance Shares 800m Options on Issue 480.6m Share Price (as at 16 March 2021) $0.08 Market Capitalisation $214m Cash (31 December 2020) $6.1m Board and Management Geoff Atkins Managing Director Evan Cran
Slide 5: Vital's leaders are world experts in developing rare earth projects
Vital’s leaders are world experts in developing rare earth projects For personal use only Senior Management GEOFF ATKINS TONY HADLEY MATHEW EDLER RAY ANGUELOV Managing Director Chief Operating Officer Executive VP Corporate Canada Operations Development Manager 25 years of project and corporate Over
Slide 6: Vital has evolved from a development concept to the cusp of production
Vital has evolved from a rare earth development concept in 2015 to today being on the cusp of production For personal use only Rare earth prices sourced from Shanghai Metals Market (www.metal.com) 6 Investor Presentation March 2021
Slide 7: Emissions legislation and international co-operation driving EV demand
Emissions legislations and international co-operation is driving electric vehicle demand For personal use only Global Critical Minerals Initiatives USA: California ICE Spain: Sales ban Japan: ICE sales UK: Sales ban by China: Hainan Provence sales ban by 2035 by 2040 ban by ~2035 2030 ICE sales ban
Slide 8: Vehicle electrification depends on electric motors and rare earths
The drive towards vehicle electrification is dependant on electric motors and their rare earths For personal use only The Link between EVs and Rare Earths 8 Investor Presentation March 2021
Slide 9: Vital's Canada base can supply Europe, North America and Asia
Vital’s Canada base can supply to customers in Europe, North America and Asia For personal use only Vital’s Rare Earth Supply Chain 9 Investor Presentation March 2021
Slide 10: Traditional development model requires time and capital
The traditional development model requires time and capital making it difficult to react quickly to market demands For personal use only Traditional Project Development Model Time Taken to Develop Projects • Financing, contracting, construction and commissioning 4+ years • Projects are complex and r
Slide 11: Vital has fast tracked the traditional development model
Vital has fast tracked the traditional development model For personal use only Vital’s 3 Stage Development Strategy Stage 1: Nechalacho North T • Near term/low capex Demonstration Plant to finalise customer acceptance Required Plant Capacity Supply Accepted by Customer and ramp-up • Commence product
Slide 12: Bastnaesite is one of only two mineralisations to have produced NdPr
Bastnaesite is one of only two mineralisations to have commercially produced NdPr For personal use only Mineralogy - The Key to Success 12 Investor Presentation March 2021
Slide 13: Implementation Stage 1: Near Term/Low Capex Production
For personal use only Implementation Stage 1: Near Term/Low Capex Production > Nechalacho North T Project > Mining Operations commence April 2021 > Production scheduled to commence mid 2021 > Fund expansion from the sale of Mixed RE Carbonate 13 Investor Presentation March 2021
Slide 14: Nechalacho is a world class rare earth project in Northwest Territories
The Nechalacho project is a world class rare earth project located in Northwest Territories, Canada For personal use only Large World Class REO Resource • 94.7MT at 1.46% REO (measure, indicated and inferred)1 Tier 1 Mining Jurisdiction Excellent Infrastructure • Located 100km from Yellowknife • 40
Slide 15: Nechalacho consists of the T Zone and Tardiff Zone
The Nechalacho project consists of two distinct zones, the T Zone and Tardiff Zone For personal use only 15 Investor Presentation March 2021
Slide 16: The North T Zone is one of the highest grade rare earth deposits
The North T Zone is one of the world’s highest grade rare earth deposits For personal use only North T Resource Resource Type Kt LREO (%) Pr6O11 (%) Nd2O3 (%) Measured 68 9.6% 0.5% 1.8% Indicated 33 7.8% 0.4% 1.5% Inferred 4 5.8% 0.3% 1.1% Total 105 8.9% 0.5% 1.6% Light Rare Earth Mineral Resources
Slide 17: The project has world-class existing infrastructure
The project has world-class existing infrastructure For personal use only Access to Canadian National Railway at Hay River Drill Rig being de-mobilised on the Nechalacho Ice Road 40 Person Camp on Thor Lake Drill rig being mobilised via barge 17 Investor Presentation March 2021
Slide 18: Process flowsheet for Nechalacho and Saskatoon sites
Vital has finalised the process flowsheet for Nechalacho and Saskatoon sites For personal use only Process Flowsheet 18 Investor Presentation March 2021
Slide 19: Rare earth carbonate customer sample program is underway
Vital’s rare earth carbonate customer sample program is underway and delivering positive results For personal use only Rare Earth Carbonate Production 19 Investor Presentation March 2021
Slide 20: Mining operations will commence on schedule in March 2021
Mining Operations will commence on schedule in March 2021 For personal use only Mining Contract • A mining contract has been signed with Det’on Cho Nahanni Construction Ltd • Nahanni Construction will mobilise to site by the end of March • Contract scope includes mining, site clearing, preparation o
Slide 21: Ore sorter operations scheduled to commence Q2 2021
Ore sorter operations at Nechalacho are scheduled to commence Q2 2021 For personal use only Ore Sorter Status 21 Investor Presentation March 2021
Slide 22: Binding Term Sheet with SRC for Rare Earth Extraction Plant
Vital and SRC have signed a binding Term Sheet for the construction and operation of a Rare Earth Extraction Plant For personal use only Rare Earth Extraction Plant RE Extraction Plant Construction and Operation Term Sheet SRC Rare Earth Processing Facility • Term Sheet signed between VML and Saskat
Slide 23: Definitive Off-Take Agreement signed with REEtec
A definitive Off-Take Agreement has been signed with REEtec for the supply of Rare Earth Carbonate For personal use only Off-Take Agreement • Definitive Off-Take Agreement signed with REEtec for a Element Distribution (%)1 Market Price (as Market Price (as base of 1,000t REO (ex-Cerium) per annum fo
Slide 24: Partnering with experienced mining and rare earth processing companies
Partnering with experienced mining and rare earth processing companies For personal use only Our Partners Canada’s First Rare Earth Processing Facility High Quality Separated Rare Earth Oxides 24 Investor Presentation March 2021
Slide 25: Implementation Stage 2: Long Term/Large Scale Production
For personal use only Implementation Stage 2: Long Term/Large Scale Production > Nechalacho Tardiff Project > Production to satisfy additional REEtec off- take option and increased customer demand > Operations targeted to commence in 2024 25 Investor Presentation March 2021
Slide 26: North T revenue will fund development at Tardiff
North T revenue will fund development at Tardiff For personal use only North T Tardiff Zone • The Upper Zone resource will be the focus of a large scale, long- Resource Type Mt TREO (%) HREO/TREO %NdPr/TREO term operation (95Mt @ 1.46% TREO) Measured 0.287 2.729% 7.7% 24.1% • This Zone contains over
Slide 27: Tardiff zone mineralogy will allow rapid development
Tardiff zone mineralogy will allow rapid development For personal use only Tardiff Zone Development of the Tardiff Zone will be leveraged off the North T project • The Tardiff Zone contains red basnaesite crystals similar to the North T Deposit (refer image) • As with North T, ore sorting will be ta
Slide 28: Implementation Stage 3: Wigu Hill
For personal use only Implementation Stage 3: Wigu Hill 28 Investor Presentation March 2021
Slide 29: Wigu Hill targeted as second rare earth project to enter production
Wigu Hill Project (90%) is targeted as VML’s second rare earth project to enter production For personal use only Excellent Infrastructure • Rail and power within 10km of project Previous Owners spent US$10m+ • Acquired for US$1m in 2018 Potential to be a large world class resource • Current high gra
Slide 30: Initial focus for Wigu Hill will be the Twiga deposit
The initial focus for the Wigu Hill Project will be the Twiga deposit For personal use only Wigu Hill contains a historical NI43-101 Resource of 3.3M @ 2.6%REO ZONE MT TREO (%) LA2O3 % CEO2 % PR6O11 (%) ND2O3 (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5 3.6% 1.33% 1.71% 0.13% 0.3% Tembo
Slide 31: Twiga deposit contains large discrete bastnaesite crystals
Similar to Nechalacho’s T Zone the Twiga deposit contains large, discrete bastnaesite crystals For personal use only Excellent Infrastructure Bastnaesite mineralisation • Located close to Tazara railway, power and water • Amenable to beneficiation via ore sorting • Ability to leverage off Nechalacho
Slide 32: Conclusion: on track to be the world's next rare earth producer
Vital is on track to be the world’s next rare earth producer For personal use only Conclusion Work Class Rare earth Development Team - ex Lynas Corporation • Led by Vital Metals MD Geoff Atkins 2 World Class Projects • Nechalacho REO Project (Canada): 95Mt at 1.46% TREO 1 • Wigu Hill (Tanzania): 3.3
Slide 33: Appendix - Peer Comparison Information
Appendix - Peer Comparison Information For personal use only Company Market Estimated Capex CAPEX/Market Capex Source Capitalisation $M Cap ratio 1 March 2021 $M Peak Resources Limited $155 $496 3.2 ASX feasibility study Announcement 28th (ASX:PEK) August 2017 Pensana Rare Earths PLC $386 $176 0.5 A
Slide 34: Contact us
For personal use only Contact us Geoff Atkins Managing Director vital@vitalmetals.com.au +61 2 8823 3100 34 Investor Presentation March 2021