Reward Minerals Ltd · ASX:RWD
Reward Minerals — Shareholder Meeting (May 2021)
32 slides from Reward Minerals's shareholder meeting presentation, May 28, 2021
Slide 1: Reward Minerals Limited Annual General Meeting
REWARD Developer of the MINERALS largest high-grade brine SOP Deposit in Australia LIMITED Annual General Meeting 28 May 2021 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Contents
CONTENTS ►Corporate Snapshot ►2020 Highlights ►2021 Progress to date ►Some LD Project Perspectives ►Officer Basin Update ►Looking forward… 2
Slide 4: Reward Corporate Snapshot
REWARD CORPORATE SNAPSHOT Capital Structure 26 May 2021 ASX:RWD EV to Drainable SOP Resource Tonne (as at 30/11/20) Ordinary Shares on Issue 194.5m The Value Gap is The Reward Opportunity Rights and Options on Issue 31.1m 24.00 Share Price $0.13 23.00 Undiluted Market Capitalisation $25.3m 22.00 Sho
Slide 5: 2020 Highlights – Landmark Approvals
2020 HIGHLIGHTS – LANDMARK APPROVALS Cautious and consistent progress whilst still preserving cash WA Ministerial Environmental Approval (3 June) Bechtel Commences LD Project Review (14 October) ► Momentous Project milestone achieved ► Evaluate leading edge renewable energy solutions ► Culmination o
Slide 6: 2021 Progress to Date
2021 PROGRESS TO DATE Continuing to make progress… ► Entitlement Issue Shortfall Closed 14 January ► Additional $0.56 M ► Final total raised $4.4 M ► LD Project Review Completed 31 March ► Back-mix is a superior process ► Renewable energy use will reduce power costs ► Recovery increase likely ► Fina
Slide 7: LD Review
LD REVIEW Conclusions were generally positive: ► Back-mix is a superior process (compared to flotation, used by RWD’s peers) which should enable lower Capex & Opex Costs & better Environmental outcomes (as no reagents are used) ► Significant increase in overall recovery likely as RWD’s PFS assumptio
Slide 8: The Lake Disappointment SOP Project
THE LAKE DISAPPOINTMENT SOP PROJECT Only SOP Project with State & Federal Environmental Approval for full production for Life of Mine Detailed, conservative PFS Highest Native title Some evaporation, Low rainfall secured, ILUA in place LD Project Largest State & Federal Perspectives Australian high-
Slide 9: Logistics
LOGISTICS Lake Disappointment is 866 km from Port Hedland Location and port: Is the Project’s location and chosen export port a disadvantage? Source: See compliance section 8
Slide 10: Peer Comparison – Trucking Distances
PEER COMPARISON – TRUCKING DISTANCES WA SOP Projects: Relative Logistics Costs Company: Project Port Distance Published Logistics Cost1 SO4: Lake Way Geraldton 780 km $62/t2 Location/Logistics have often been sited as RWD: Lake Disappointment Port Hedland 866 km $104.50/t3 one of the Project’s disad
Slide 11: A Superior Process
A SUPERIOR PROCESS A$91/t No flotation A$102/t Other Opex Costs means Closure – A$2/t Martu Royalty – A$7/t FOB Cash Cost: A$335/t no reagents, Road Maint - A$15/t (US$258/t) Site Services - A$22/t lower Capex EBITDA Margin: ~44.6% & Opex Costs A$105/t @ US$500/t Ex-Works Cost: A$239/t (US$180/t) So
Slide 12: Global Cost Curve
GLOBAL COST CURVE Will LD and the other Australian SOP Producers be Competitive? ExWorks US$/tonne Yes, but extraordinary claims require extraordinary evidence 11 Source: Publicly available information contained in Company ASX Releases, Broker Research Reports and Reward Analysis
Slide 13: Costs Seem to Edge Up Over Time…
COSTS SEEM TO EDGE UP OVER TIME… Capital Intensity: Market Cap FOB Cash Costs Status Production Rate Capex $/tonne of annual $'M $/tonne SOP capacity Development – 245,000 tpa Salt Lake Potash (SO4) BFS: $355 273 commissioning underway, (Requires import of $254 M $1,038 Lake Way Now: $390 first prod
Slide 14: LD Has Compelling Returns
LD HAS COMPELLING RETURNS…. Project • Pre-tax: Real NPV8 – $518 M, IRR – 19% • Post-tax: Real NPV8 – $293 M, IRR – 15% Returns • Assumptions: Price: US$500/t, FX: AUD/USD: 0.75 Sustainable • Average EBITDA Margin – 45% • Average Annual EBITDA – ~$118 M (Real) Margins • LOM EBITDA – $2,678 M (Real) •
Slide 15: Officer Basin Update
OFFICER BASIN UPDATE 14
Slide 16: Officer Basin Exploration Update
OFFICER BASIN EXPLORATION UPDATE Shallow SOP mineralisation is the target Gibson Desert, ~400km east of Newman Limited oil/gas exploration historically Officer, Canning and Amadeus Basins are large Sedimentary Evaporite Basins Browne is the host formation for evaporites in the RWD Tenements
Slide 17: Gibson Area Context
GIBSON AREA CONTEXT Midway Well Prospect: Targeting shallow SOP mineralisation In the Gibson area of the Western Officer Basin over •High 250,000km2 of the Browne Formation occurs at shallow depth and outcrops in numerous locations Erosion of the outcropping Browne Evaporites could be the source
Slide 18: Officer Basin & Lake Disappointment Tenements
OFFICER BASIN & LAKE DISAPPOINTMENT TENEMENTS 17
Slide 19: Gibson Sub Basin – Initial Target Area
GIBSON SUB BASIN – INITIAL TARGET AREA OB Drill Holes at 31.12.20 • Hole ID Depth (m) • OB001 419 • OB002 706 • OB003 80 • OB004 108 18 Source: See compliance section
Slide 20: Midway Well Seismic Section – N83-1
MIDWAY WELL SEISMIC SECTION – N83-1 Targeting shallow SOP mineralisation OB4 OB3 OB2 OB1 6.5 km •Vertical Exaggeration = 2 X 19 Source: See compliance section
Slide 21: Early Success at Midway Well
EARLY SUCCESS AT MIDWAY WELL Potash-rich groundwater intersected in all holes Brine encountered between 29 – 87 metres below surface in holes OB001-4 Assays shows encouraging grade with high K2SO4: NaCl ratios Ionic Compositioni Key Ratios Brine Source K SO4 K2SO4 Ca Mg Na Cl NaCliv SO4:Kv NaC
Slide 22: Whats Next for LD?
WHATS NEXT FOR LD? iy. BE REWARE MINERALS LTD
Slide 23: Looking to the Future…
LOOKING TO THE FUTURE… Reward has successfully overcome many challenges over time… Reward Files Tenement Applications 2005 Major JORC Indicated Resource determined ILUA registered with Native Title Tribunal Investment Decision 2007 Q1 2023 2012 Final Pond Trials Metallurgical Testwork Q3 2021 – Q1 2
Slide 24: Conclusion
CONCLUSION Reward is well positioned, its LD Brine SOP Project: ► Has Environmental Approvals and Native Title in place ► WA State and Commonwealth Approvals ► Full Mining Agreement in place with the Martu Traditional Owners ► Is technically robust, backed by a ► Conservative PFS conducted to exacti
Slide 25: Questions?
Questions? REWARD MINERALS LTD 24
Slide 26: Appendices
ne ol APPENDICES F 25
Slide 27: Globally Significant Tier 1 Resource
GLOBALLY SIGNIFICANT TIER 1 RESOURCE 153 Mt Indicated & Inferred Drainable SOP Resource – Australia’s largest Assigned Nominal Dimensions (m) Volume Area Specific SOP Brine Drainable Unit Yield Hydrostratigraphic Unit Grade SOP Symbol Effective 3 6 2 6 (kg/m3) (Mt) Top Base Thick. (m x 10 ) (m x 10
Slide 28: PFS Results – Capital Costs
PFS RESULTS – CAPITAL COSTS Initial and Sustaining Capital Costs (LOM Real) AUD M Production - Trenches and Ponds 57.6 Process Plant 73.2 Infrastructure 108.8 Site Support Temporary Services 2.9 Construction Costs 59.2 Subtotal 301.7 Indirect Costs (EPC, Consultants, Commissioning) 20.0 Owners Costs
Slide 29: Sources Information for Peer Comparisons
SOURCES INFORMATION FOR PEER COMPARISONS 1. Australian Potash Ltd: • Australian Potash Ltd Announces Definitive Feasibility Study Outstanding Outcomes Over 30 Year Mine Life, 28 August 2019 • Front End Engineering Design (FEED) positions K-BriteTM at the Premium End of the Global SOP Market, 20 Apri
Slide 30: Reward Releases Quoted
REWARD RELEASES QUOTED Sources of Reward information for information contained in this presentation: • PFS Confirms LD Project as a Globally Significant SOP Project See Reward release dated 1 May 2018 • LD SOP Project PFS Enhancements See Reward release dated 13 July 2018 • Infill Drilling Program A
Slide 31: Compliance Statements
COMPLIANCE STATEMENTS Competent person statements: The information in this report that relates to the existing Lake Disappointment Project Mineral Resource Estimate and hydrogeology is extracted from the report titled “Lake Disappointment (LD) Project Confirmed as a Globally Significant Tier 1 Sulph
Slide 32: Reward Minerals Ltd
Reward Minerals Ltd 159 Stirling Highway Nedlands, WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com