Savannah Resources PLC · LSE:SAV
Savannah Resources — Investor Presentation (September 2018)
28 slides from Savannah Resources's investor presentation, September 2018
Slide 1: An Energy Metals Group
AN ENERGY METALS GROUP Corporate Presentation | September 2018
Slide 2: Disclaimer
DISCLAIMER 2 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
Slide 3: The Executive Team
THE EXECUTIVE TEAM 3 DAVID ARCHER, CEO MICHAEL MCGARTY, CFO MARTIN STEINBILD, DALE FERGUSON, LITHIUM BUSINESS TECHNICAL DIRECTOR ▪ Over 30 years’ mining ▪ Qualified accountant with DEVELOPMENT experience extensive M&A, Financial ▪ Over 20 years' experience ▪ Track record of bringing Leadership, and
Slide 4: Progressing Rapidly to be First Major Lithium Mine in Europe
PROGRESSING RAPIDLY TO BE FIRST MAJOR LITHIUM MINE IN EUROPE 4 Fast-tracking Opportunity Western Europe’s largest new To be the first significant spodumene spodumene lithium discovery, the lithium producer in Europe licenced Mina do Barroso Lithium Project in Portugal, into production Strategic Loca
Slide 5: Strong Markets
STRONG MARKETS 5 SAV – Western Europe’s largest spodumene lithium, open pittable resource Lithium - a strategic element Global EV Demand Impacti Supply crunch ahead – driven by demand ▪ Electric vehicle uptake rising sharply 900 ▪ Rapid improvements in battery technology and 800 installation of char
Slide 6: Portuguese Project
PORTUGUESE PROJECT 6 Mina do Barroso is one of four highly prospective lithium projects covering 543km2 in northern Portugal. Importantly, the tenement portfolio includes one granted Mining Leasei (5.42km2), and three pending exploration licence applicationsii Savannah acquired a 75% interest in the
Slide 7: Simplified Concentrator Flowsheet
SIMPLIFIED CONCENTRATOR FLOWSHEET 7
Slide 8: Portugal – Mina do Barroso in Numbers
PORTUGAL – MINA DO BARROSO IN NUMBERSi 8 Lithium Project has potential to be major European source of spodumene – Scoping Study (June 2018)iii demonstrating robust financials ~11 years 14.4Mt at 1.07% US$685 /t Life of mine (LOM) Li2O Average LOM 1.3Mtpa LOM ore Spodumene price 100% Basis US$1,555 m
Slide 9: Mina do Barroso – Northern Portugal
MINA DO BARROSO – NORTHERN PORTUGAL 9 High-grade, clean, low iron, spodumene lithium deposit with 30 year mining leasei NOA Reservatorio Campo de Futebol Romainho Alto do Cortico Romainh Piegro Negro o Carvalha Da Bacora Grandao Pinheiro i Granted May 2006
Slide 10: Grandao Deposit
GRANDAO DEPOSIT 10
Slide 11: Significant Assays Mina do Barroso Project
SIGNIFICANT ASSAYS MINA DO BARROSO PROJECT 11 Grandao Deposit ▪ 109m at 1.04% Li₂O from surface (uncut), including 52m at 1.32% Li₂O in 17GRARC17 ▪ 71m at 1.06% Li₂O from 88m, including 57m at 1.2% Li₂O in 17GRARC19 ▪ 59m at 1.13% Li₂O from 5m, in 17GRARC31 ▪ 33m at 1.22% Li₂O from 40m, in 17GRARC41
Slide 12: Cross Section Through the Conceptual Grandao Stage Pit
CROSS SECTION THROUGH THE CONCEPTUAL GRANDAO 2 STAGE PIT 12
Slide 13: Lithium Project Conceptual Mining Site Layout
LITHIUM PROJECT CONCEPTUAL MINING SITE LAYOUT 13
Slide 14: Growing Resources with Multiple Targets
GROWING RESOURCES WITH MULTIPLE TARGETS 14 ▪ JORC (2012) Mineral Resource Estimate of 14Mt at 1.1% Li₂O containing 149,300t of Li₂O (using a 0.5% Li2O cut-off) of which 7.2Mt is in the Indicated category ▪ Defined from only three of at least eight pegmatite deposits Mineral Resource and Exploration
Slide 15: Defined Route to Production
DEFINED ROUTE TO PRODUCTION 15 Fast-tracking to mining – targeted to commence early 2020 2018 2019 2020 Planned Activityi Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Exploration RC/Diamond Drilling Scoping Study Hydrology, Geotechnical and Metallurgy Work for FS Feasibility Study Indicated JORC Resource Measured JOR
Slide 16: A Proven Model
A PROVEN MODEL 16 The tried and tested lithium journey ✓ Altura’s project is located at Pilgangoora in Western Australia ✓ Construction of the mine is underway ✓ Production expected first half of 2018 ✓ The current Life of Mine (LOM) is forecast to be 20 years at current rates ✓ NPV AUS$834 million,
Slide 17: Lithium Comparable Analysis
LITHIUM COMPARABLE ANALYSIS 17 Savannah is the ONLY London-listed lithium project with a spodumene deposit and infrastructure links Mining Good London Open C1 Cash Cost Market Company Project Location Project Status Spodumene Licence infrastructure listed Pittable (US$/t conc) cap(£)i Pilbara Pilgan
Slide 18: Additional Upside – Oman
ADDITIONAL UPSIDE – OMAN 18 OMAN Two low capex, high-grade mines to Copper / Gold initiate cash flow ▪ Central processing plant and tailings storage facility to support multiple mine developments ▪ Resource of 1.7Mt at 2.2% copper, including a high-grade zone of 0.5Mt at 4.5% Cu in Block 5 (65% inte
Slide 19: Additional Upside – Mozambique
ADDITIONAL UPSIDE – MOZAMBIQUE 19 World class asset with MOZAMBIQUE significant scale being Heavy Mineral developed in partnership Sands with Rio Tinto ▪ Joint venture with Rio Tinto earning up to 51% interest with PFS (underway) and DFS ▪ Provides longer-term upside ▪ Indicated and Inferred Mineral
Slide 20: Mozambique – Mutamba in Numbers
MOZAMBIQUE – MUTAMBA IN NUMBERS 20 May 2017 Scoping Study outlines the potential for a long life, robust Project 100% Basis 30 years 451Mt at 6% THM Life of mine (LOM) Mining inventory Targeting annual US$4.23i billion US$152 Initial CAPEX (excl. average production of LOM revenue forecast EPC/ conti
Slide 21: Strong Value Fundamentals
STRONG VALUE FUNDAMENTALS 21 Company making potentiali High-gradei Fast-tracking Mina do Barroso, Western Clean concentrate with simple Europe’s largest spodumene (a lithium processing and Western European location provides a significant bearing mineral) Mineral Resource strategic advantage Clear de
Slide 22: Appendix
Appendix
Slide 23: Corporate Data
CORPORATE DATA 23 SHARE PRICE PERFORMANCEii KEY DATA MARKET AIM TICKER SAV SHARE PRICEi 8.00p MARKET CAPi £69 million Pence SHARES IN ISSUEi 861,316,795 CONVERTIBLES 68,965,996 (OPTIONS/WARRANTS)i AVERAGE EXERCISE PRICE OF WARRANTS / OPTIONS 6.3p OUTSTANDINGi AVERAGE TIME REMAINING Matthew King TO E
Slide 24: Mina do Barroso - Portugal
MINA DO BARROSO - PORTUGAL 24 75% interest in the Project with 30 year mining leasei for lithium, feldspar and quartz Significant commercial Extra Resource Simple processing Export grade Existing Strategically close scale Potential model infrastructure to markets • Established resource of Resource o
Slide 25: Lithium-Ion Battery Value Chain
LITHIUM-ION BATTERY VALUE CHAIN 25 Lithium Active Battery Cell Battery Pack Raw Materials End Uses Materials Manufacturing Assembly Brine Cathode Cathode Modules Electric Concentrate Materials Mobility Hard Rock Concentrate C Stationary Sepa- Cooling P rator E System Storage A L C Anode L BMS K 3C S
Slide 26: Lithium Use
LITHIUM USE 26 Increased Lithium Use Driven by EV Battery Requirements Lithium Battery Farm Home Battery 3-100t 2-30kg E-Bus Power Tools ~200kg 40-60g PHEV & BEV Smartphones 40-80kg 3-5g
Slide 27: Spodumene Crystal
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Slide 28: www.savannahresources.com
www.savannahresources.com info@savannahresources.com @SavannahRes Corporate Presentation | September 2018
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