Argosy Minerals Limited · ASX:AGY
Argosy Minerals — Investor Presentation (November 2019)
26 slides from Argosy Minerals's investor presentation, Nov 15, 2019
Slide 1: Argosy: A New Lithium Producer
For personal use only ARGOSY A NEW LITHIUM PRODUCER ASX: AGY www.argosyminerals.com.au November 2019 1
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only. assumptions in respect of metal production and prices, of this information in the form and context in which it Neither this presentation nor the information contained operating costs and results, capital expenditures, ore appears. The in
Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS For personal use only • The PEA is a preliminary technical and economic shares. It is also possible that Argosy could pursue assumptions and technical parameters study of the potential viability of the Rincon Lithium other ‘value realisation’ strategies such as a sale, underpin
Slide 4: Company Overview
For personal use only Overview Company 4
Slide 5: Investment Snapshot: AGY Share Price Performance
AGY SHARE PRICE PERFORMANCE (AGY:ASX) A$ Volume For personal use only 0.50 40,000,000 INVESTMENT 0.45 0.40 35,000,000 Average Daily Trading Volume: 30,000,000 SNAPSHOT 0.35 0.30 25,000,000 ~3.3m shares 0.25 20,000,000 Average Daily 0.20 Trading Value: 15,000,000 0.15 10,000,000 $662,851 0.10 5,000,0
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only o Focussed on becoming the next o Extensive experience in the region o Production operations from industrial- lithium carbonate producer in South with strong relationships with local scale pilot plant America services/contractors o Experienced Board and ma
Slide 7: Rincon Development
For personal use only Rincon Development 7
Slide 8: Rincon Lithium Project
RINCON LITHIUM For personal use only PROJECT Rincon Lithium Project located in the world-class “Lithium Triangle” in Salta Province, Argentina Argosy currently owns 77.5%, moving to 90% ownership of Puna Mining S.A. upon commercial development milestone One of the most advanced lithium developments
Slide 9: Staged Project Development
STAGED PROJECT DEVELOPMENT RATIONALE AND BENEFITS OF STRATEGY For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity • Outcome of fast-tracked • 38 hectares of evaporation • Modular add-on to existing development strategy ponds constructed and r
Slide 10: Staged Project Development - Update
STAGED PROJECT DEVELOPMENT - UPDATE For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity • Sales Agreement executed • Construction period ~12-15 • PEA completed on base case with Mitsubishi RtM in March months ~10,000tpa operation (with scope
Slide 11: Rincon Project – A Stand Out Lithium Asset
60,000 RINCON PROJECT – For personal use only 50,000 A STAND OUT Capital Intensity (US$/t LCE) 40,000 LITHIUM ASSET 30,000 Rincon Median Capital Intensity 20,000 $16,459/t LCE Rincon PEA delivers world-class project economics 10,000 o Low Capex and low capital 0 intensity o The modelled NPV is ~3x t
Slide 12: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION The Project lies within Salta Province, ~3,700m ASL, serviced by city of Salta with population of ~600,000 The Puna region is known for its high eva
Slide 13: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION o The Project ideally located to nearby infrastructure o Commercial scale (~300ha) evaporation Existing ~38ha ponds to be constructed ~3km from oper
Slide 14: Tonopah Development
For personal use only Tonopah Development 14
Slide 15: Tonopah Project: Strategic Lithium Prospect
TONOPAH PROJECT: STRATEGIC LITHIUM PROSPECT For personal use only TONOPAH IS STRATEGICALLY LOCATED IN THE LITHIUM BATTERY VALLEY Argosy acquired the project August 2019 Project lies ~4km from Albemarle’s Silver Peak lithium brine operation – the only lithium carbonate producer in the USA (+50yrs) Se
Slide 16: Tonopah Project: Location and Infrastructure
TONOPAH PROJECT: LOCATION AND INFRASTRUCTURE HIGHLY PROSPECTIVE LITHIUM PROSPECT For personal use only o The Project is located within the Big Smokey Valley region in Nevada, USA, and comprises 425 claims covering an area of ~34.25km² o The Project is directly analogous to the neighbouring Silver Pe
Slide 17: US Battery Market Aspirations
US BATTERY MARKET ASPIRATIONS For personal use only U.S. MOVING FAST TO BUILD BATTERY CAPACITY Dr. Herbert Diess, CEO of Volkswagen AG, said in January, “The US is one of the most important locations for us and producing electric cars in Favourable mining jurisdiction, supporting Chattanooga (Tennes
Slide 18: Market Analysis
For personal use only MARKET ANALYSIS 18
Slide 19: Lithium Market: SWOT Analysis
LITHIUM MARKET: SWOT ANALYSIS For personal use only FUNDAMENTALS REMAIN STRONG – DOWNSIDE REMAINS WEAK Weakness Market Short-Term: • Excessive spodumene, surplus production Result of translated to large stockpiles Transactions Price Spike • China conversion capacity growth stalled Continue • China E
Slide 20: Bifurcation of the Lithium Market: Spodumene vs Brine
BIFURCATION OF THE LITHIUM MARKET For personal use only SPODUMENE Vs BRINE Bifurcation of spodumene and lithium carbonate markets o Spodumene production being pulled back due to aggressive increase in supply capacity in recent years and delays in additional conversion capacity in China o Additional
Slide 21: Bifurcation of the Lithium Market: Challenges Facing Spodumene Production
BIFURCATION OF THE LITHIUM MARKET For personal use only INCREASED CHALLENGES FACING SPODUMENE PRODUCTION Spodumene Brine Producers Alita Resources Ltd Producers Albemarle Corp. Administrators & Receivers appointed Carbonate production increasing – Ceased production Galaxy Resources Ltd SQM Productio
Slide 22: A New Lithium Producer
A New Lithium For personal use only Producer 22
Slide 23: Argosy – A New Lithium Producer
ARGOSY – For personal use only A NEW LITHIUM PRODUCER Exceptional PEA results for the Rincon Project • Estimated operating costs at the lower end of the industry operational cost curve • Ability to generate exceptional annual cash flows under all lithium price outlook scenarios • Long asset life – 1
Slide 24: Contact Us
For personal use only To discuss how Argosy Minerals could benefit you, please contact: Contact Jerko Zuvela - Managing Director T: +61 8 6188 8181 Us E: admin@argosyminerals.com.au Level 2, 22 Mount Street Perth WA 6000 Australia 24
Slide 25: Appendix – Market Transactions
Appendix – Market Transactions Positive macro-economic developments underpin strong growth outlook For personal use only Off-take Agreements Strategic Investments o Volkswagen (VW) signed a o Rosatom (via Uranium One) secures option to purchase up to a Motor vehicle MOU with Ganfeng Lithium 51% stak
Slide 26: Appendix – Industrial Scale Pilot Plant
Appendix – Industrial Scale Pilot Plant For personal use only 26
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