Solaris Resources Inc · TSX:SLS
Solaris Resources — Investor Presentation (November 2023)
37 slides from Solaris Resources's investor presentation, November 2023
Slide 1: Copper Growth and Discovery in the Americas
Copper Growth and Discovery in the Americas Corporate Presentation November 2023 World’s Greatest Explorer Our Discoveries Honor His Legacy TSX: SLS; OTCQB: SLSSF
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements This presentation does not constitute an offering of securities and the information contained herein is subject to the information contained in the Company's continuous disclosure documents. All amounts expressed in Canadian $ unless otherwise stipulated. Fo
Slide 3: Warintza Project | Investment Summary
Warintza Project| Investment Summary Solaris is advancing a portfolio of copper assets in the Americas: Global Scale Resource at Robust Economics Flagship Warintza, Ecuador Open pit, high grades, clean met, 579 Mt at 0.59% CuEq (Ind) La Verde 887 Mt at 0.47% CuEq (Inf) primary infrastructure > billi
Slide 4: Part of The Augusta Group | Unrivaled Track Record of Value Creation
Part of The Augusta Group | Unrivaled Track Record of Value Creation Canada-based management group, focused on mining sector Highly-specialized in exploration and development stage projects Unrivaled track record of creating value, with over $4.5B in exit transactions Past Returns Sold for $1.6B in
Slide 5: Capital Structure
Capital Structure Summary¹ Share Distribution TSX SLS Float Common Shares Outstanding 148M Richard Warke 39% 40% Stock Options 11M Fully Diluted Shares Outstanding 159M Lowell 2% BlackRock Cash² US$15M Lundins 5% 9% Mgmt 5% Market Cap³ US$550M >$200M Invested by Management Analyst Targets Average $1
Slide 6: Leadership | Appointment of Javier Toro to Lead Project
Leadership | Appointment of Javier Toro to Lead Project Board & Management Richard Warke, Executive Chairman Purni Parikh, SVP Corporate Affairs Poonam Puri, Director Arizona Mining, Equinox Gold, Arizona Mining, Augusta Resource, Ventana Gold Davies Ward Phillips & Vineberg LLP, Augusta Resource, V
Slide 7: David Lowell | World's Greatest Explorer (1928-2020)
David Lowell | World’s Greatest Explorer (1928-2020) Warintza, 2000 Mirador, 2001 Lowell Discoveries Major Mines Pierina, 1996 Antamina Toromocho, 2005 Exposed Deposits (60-80s) Alteration systems visible from air, Cerro Verde e.g., Bajo Alumbrera, San Cristobal Los Calatos, 1992 Toquepala David Low
Slide 8: Ecuador | Election of Noboa Provides Historic Opportunity
Ecuador | Election of Noboa Provides Historic Opportunity US Dollar-based economy Support for Mining Sector Continues Through Election “We are going to Lowest capex intensity in region Daniel Noboa, President-Elect promote legal and responsible mining to Rapid permitting timelines US-educated, son o
Slide 9: Ecuador | Political Shift Favoring Mining
Ecuador | Political Shift Favoring Mining Southeastern Ecuador: Mining Success Story Southeastern Ecuador mining district straddles the border between Morona Santiago and Zamora-Chinchipe, which share common geographic, demographic context Major mining development in Zamora-Chinchipe has transformed
Slide 10: Responsible Mining | New Model for Responsible Mining in Ecuador
Responsible Mining | New Model for Responsible Mining in Ecuador Warintza Success Story “The Company’s presence in Morona Santiago has generated an important impact on the economy through its responsible approach. This positive impact and beneficial relations with local communities have driven expec
Slide 11: Responsible Mining | Partnership with Host Communities
Responsible Mining | Partnership with Host Communities Maximizing community involvement key to strong and resilient alliance Innovative approach: Government & community commitment to understanding of impacts transparency, and benefits of project education & inclusion Over 525 indirect Community invo
Slide 12: Warintza | Precedent-Setting CSR Programs
Warintza| Precedent-Setting CSR Programs In Completed Signed Impact and Committed to Developed Ecuador three Community Benefits Agreement national framework with the Consultations, in 2020 Zero Carbon Government of to have: most recently Program Ecuador for (Amended 2022) Formalization of in 2022 si
Slide 13: Mining District | Proven Low-Cost Setting
Mining District | Proven Low-Cost Setting Primary Infrastructure: Major Capital Savings 268km2 Access road to Access to grid MOU signed for property, highway connecting power, adjacent 100% supply of 100%-owned; Pacific ports, Santiago hydroelectric 40km north of transmission lines, development powe
Slide 14: Capital Intensity / Ecuador's Competitive Advantage
Capital Intensity / Ecuador’s Competitive Advantage Increasing Capital Intensity of Greenfield Open Pit Copper Projects and Long-Term Incentive Pricing Implications¹,² 2001 to 2010 ~US$7k/t 2011 to 2020 ~US$18k/t Recent Projects >US$25k/t $2.50 Cu for 15% IRR $3.50 Cu for 15% IRR $4.50 Cu for 15% IR
Slide 15: Warintza | Natural Infrastructure Supports Low-Cost Development
Warintza| Natural Infrastructure Supports Low-Cost Development Natural Advantages Leading Technologies Results Energy rich mining district Electrified mining fleet Low Emissions 100% renewable, hydroelectric power¹ Gravity-assisted materials movement High Efficiency Favorable topography Efficient co
Slide 16: Resource Estimate
Resource Estimate Warintza In-Pit Mineral Resources Category Tonnes Grade Contained Metal Global Scale Resource CuEq Cu Mo Au CuEq Cu Mo Au 1.5 Bt at 0.52% CuEq (0.3 Bt at 0.8% CuEq Starter Pit) (Mt) (%) (%) (%) (g/t) (Mt) (Mt) (Mt) (Moz) Indicated 579 0.59 0.47 0.03 0.05 3.45 2.70 0.15 0.93 99 Hole
Slide 17: Warintza Project | High-Grade Discovery Potential within Cluster
Warintza Project | High-Grade Discovery Potential within Cluster Source: The information in this slide is based upon the Company’s news releases dated Jan 18, Feb 28, April 4, May 26, Jul 20, Sep 7, Oct 13, Dec 5, 2022 and Feb 13, Mar 13, May 2, June 1, 14, 28,and Jul 24, 2023, Sep 12, 2023 other th
Slide 18: Warintza Project | Regional Potential Beyond Warintza Cluster
Warintza Project | Regional Potential Beyond Warintza Cluster Proposed Spin-Out of Brecciated porphyry with chalcopyrite Solaris Exploration including: Porphyry targets at Clemente, Cora, Mateo and Medio Camino Advanced argillic Skarn targets at Playas, alteration, vuggy silica Justo, Betty, Yawi, H
Slide 19: Warintza | Market Dislocation Provides Value Opportunity
Warintza | Market Dislocation Provides Value Opportunity M&A Transactions P/NAV Past Augusta Group Returns²: Arizona Mining 1.0x Warintza Project Valuation¹ Ventana Gold Corp. 1.0x Basis NAV8% Target Price Recent Copper Development Transactions³: 1x NAV8% (SLS) 2022 MRE US$4.4B US$24 / C$30 Glencore
Slide 20: Catalysts | Growth and De-Risking, While Preserving Value
Catalysts| Growth and De-Risking, While Preserving Value Offtake Financing Package Resource Drilling Complete Year-End Mineral Resource Estimate Update Q2/24 EIA Completion H2/24 Studies Completion 2025 Spin-out of Solaris Exploration Inc. on transaction TSX: SLS; OTCQB: SLSSF 20
Slide 21: Joint Ventures
Joint Ventures TSX: SLS; OTCQB: SLSSF
Slide 22: Capricho and Paco Orco | Discovery Potential via JV in Peru
Capricho and Paco Orco | Discovery Potential via JV in Peru Capricho Paco Orco Solaris option to earn up to 75% Solaris option to earn up to 75% 4,600-hectare property, 60km SE of Las 4,400-hectare property, northern extension of Bambas, Haquira Southern Peru Copper Belt Outcropping porphyry exposed
Slide 23: Ricardo Project | Discovery Potential in Chile
Ricardo Project | Discovery Potential in Chile Discovery potential on the same structure as one of Chile’s largest copper mines, Chuquicamata 16,000 hectares in the most prolific section of the West Fissure fault, which controls Chile’s largest copper deposits Earlier efforts at drilling stymied by
Slide 24: Tamarugo Project | Discovery Potential in Chilean Copper Belt
Tamarugo Project | Discovery Potential in Chilean Copper Belt Discovery potential in the same geologic area that hosts Chile’s largest copper porphyry deposits Solaris can earn up to a 75% interest in Tamarugo for gross expenditures of US$5.5M / 5-yrs from Freeport 5,100-hectare property in a minera
Slide 25: La Verde Project | Leverage via Development-Stage JV in Mexico
La Verde Project | Leverage via Development-Stage JV in Mexico Project with excellent infrastructure, provides leverage to Development higher copper stage pricesproject with excellent infrastructure, provides leverage to higher copper prices 60% ownership with Teck Resources holding 40% Located in M
Slide 26: Appendix
Appendix TSX: SLS; OTCQB: SLSSF
Slide 27: Warintza Project | Multiple-Times Growth Potential
Warintza Project | Multiple-Times Growth Potential Two Objectives: Starter Pit Growth, Overall Growth World class inventory forms baseline for growth 1.5 Bt @ 0.5% CuEq (0.3 Bt @ 0.8% CuEq Starter Pit) Resource drilling cut-off Nov 2021, growth drilling ongoing Resource update due H2/23 targeting “S
Slide 28: Copper Discovery Rate Remains Dismal
Copper Discovery Rate Remains Dismal 18 2010: Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 16 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 14 2015: Cachorro 2016: Marimaca, Encierro 2017: Tatogga, Winu, Kainantu 12 Number of Discoverie
Slide 29: Dearth of Discoveries Leaves Pipeline Empty
Dearth of Discoveries Leaves Pipeline Empty 2010: Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 160 5,000 2015: Cachorro 2016: Marimaca, Encierro 2017: Tatogga, Winu, Kainantu 4,500 140 2018:
Slide 30: Goldman Sachs Forecasting Record High Prices
Goldman Sachs Forecasting Record High Prices Cuts to exploration & early-stage project development mean the size & Long-term copper price near $10,000/t is needed to incentivize no. of copper projects is substantially lower than a decade ago to enough approvals to mitigate the record LT gap Long-ter
Slide 31: Copper Sell-Offs: Bull vs Bear Market
Copper Sell-Offs: Bull vs Bear Market Copper sell-offs in the prior structural bull market were short, sharp, but followed by strong rebounds versus the prolonged commodity bear market that followed US$/lb 70% fall 5 followed by 258% rise 36% fall 22% fall followed by 4.5 followed by 124% rise 33% r
Slide 32: Looming Shortages; Mine Development Lagging
Looming Shortages; Mine Development Lagging Source: Glencore Investor Update – Dec 6, 2022 TSX: SLS; OTCQB: SLSSF 32
Slide 33: Electrification & Decarbonization Trends; Demand for Copper Increases
Electrification & Decarbonization Trends; Demand for Copper Increases Global near-term passenger EV sales and share of new passenger vehicle sales by market Annual metals demand from lithium-ion batteries under the Net Zero Scenario Cumulative global EV market opportunity by region – Economic Transi
Slide 34: Copper Outlook: Higher Long-Term Incentive Prices
Copper Outlook: Higher Long-Term Incentive Prices Source: Scotiabank GBM estimates, Commodity Markets Are Tighter Than You Think, January 2023 TSX: SLS; OTCQB: SLSSF 34
Slide 35: Record Size Structural Deficits Fast Approaching
Record Size Structural Deficits Fast Approaching S&P estimates copper demand will double to over 50 Mt by 2050 Rapid growth from copper-intensive energy transition applications (power grid, renewables, EVs, charging network, batteries) on top of steady 2.4% p.a. growth from traditional end uses Proj
Slide 36: Strategic Focus for Majors
Strategic Focus for Majors ‘We need to secure more options ‘Copper is our preference. A bit like BHP, in copper… through exploration we’d love a Tier 1, large-scale and low-cost and early stage entry in early-stage asset. Ideally, shallow and near the coast, resources in Canada, Mexico and with good
Slide 37: Solving Structural Deficit to Require Record M&A
Solving Structural Deficit to Require Record M&A Post-GFC cycle - 35 transactions US$/lb) Current cycle - structural deficits from 2024 on, largest supply shortfall in history by >2x… only 5 transactions announced to date: 5 MATSA - US$1.9B Sierra Gorda (45%) - US$1.6B Josemaria - US$0.5B Turquoise
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