Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Investor Presentation (June 2019)
33 slides from Liontown's investor presentation, Jun 19, 2019
Slide 1: Amended Investor Presentation
19 June 2019 For personal use only Amended Investor Presentation Liontown Resources Limited (ASX:LTR) (Company), at the request of ASX, provides an amended Investor Presentation which was released on 4 June 2019. Amendments to the Investor Presentation include: 1. A statement relating to the Explora
Slide 2: A Future Australian Lithium Producer
For personal use only A FUTURE AUSTRALIAN LITHIUM PRODUCER JUNE 2019 | A S X : LT R 1
Slide 3: Important Information
Important Information Forward Looking Statements Project is extracted from the ASX announcement “Highly encouraging results from For personal use only initial metallurgical test work at the Kathleen Valley Lithium-Tantalum Project, WA” This Presentation may include statements that could be deemed “f
Slide 4: Kathleen Valley Lithium Project
Kathleen Valley Lithium Project Kathleen Valley Project: Progressing towards a new WA lithium mine For personal use only Buldania Project: Advancing a second lithium discovery to a maiden resource estimate KALGOORLIE Located in established, well serviced mining regions and backed by strong PERTH 2 s
Slide 5: Kathleen Valley Lithium Project
For personal use only PERTH KATHLEEN VALLEY LITHIUM PROJECT 4
Slide 6: Location, Infrastructure, Grade and Growth
Location , Infrastructure, Grade and Growth + MAIDEN RESOURCE For personal use only Exploration Target of 21.2Mt @ 1.4% Li2O 19-31Mt @ 1.2-1.5% Li2O* and 170ppm Ta2O5 Updated MRE due early July 2019 Scoping Study on maiden MRE confirms potential for commercially robust mine Conventional open pit min
Slide 7: Resource Expansion Drilling
Resource Expansion Drilling RESOURCE GROWTH Adding Further Value • ~23,000m RC drill program For personal use only completed H1 2019 • Thick (>45m), high grade, “feeder” 31m @ 1.7% Li2O zone discovered by latest drilling. 45m @ 1.7% Li2O NE Section New intersections include: 43m @ 1.7% Li2O 90m @
Slide 8: Latest drilling extends mineralisation down dip
Latest drilling extends mineralisation down dip 9m @ 1.8% Li2O For personal use only 5m @ 1.7% Li2O 8m @ 1.4% Li2O 12m @ 1.4% Li2O 10m @ 1.8% Li2O incl. 7m @ 2.2% Li2O Conceptual Conceptualopen openpit pitbased based 9m @ 1.7% Li2O on onmaiden maidenresource resourceand and 13m @ 1.3% Li2O scoping s
Slide 9: And along strike
………. and along strike For personal use only 15m @ 1.1% Li2O 12m @ 1.3% Li2O 11m @ 1.7% Li2O incl. 5m @ 2.1% Li2O incl. 5m @ 2.4% Li2O Conceptual Conceptualopen openpit pitbased based 6m @ 1.5% Li2O on onmaiden maidenresource resourceand and scoping scopingstudy study 13m @ 1.1% Li2O 9m @ 1.4% Li2O 2
Slide 10: Building on previous results included in 2018 MRE
Building on previous results included in 2018 MRE 10m @ 1.6% Li2O 15m @ 1.1% Li2O 3m @ 1.5% Li2O For personal use only incl. 5m @ 2.0% Li2O incl. 2m @ 2.4% Li2O 18m @ 1.5% Li2O incl. 6m @ 2.3% Li2O 10.5m @ 1.3% Li2O incl. 5m @ 2.0% Li2O 6m @ 1.6% Li2O incl. 4m @ 1.9% Li2O 6m @ 2.1% Li2O 21m @ 1.9% L
Slide 11: Scoping Study on maiden MRE supports standalone operation
Scoping Study on maiden MRE supports potential to develop a standalone Lithium Mining and Processing Operation For personal use only BASE CASE 2Mtpa (Li & Ta) NPV(8%, real, post tax) A$421M (Range of A$316 to A$526M) IRR 38% PAYBACK <3 years Open Pits MINE LIFE 9 years AVERAGE LOM OPEX ~A$428/t conc
Slide 12: Financial Sensitivity
Financial Sensitivity Robust Project For personal use only Kathleen Valley Project - NPV Sensitivity Analysis (A$M) A$421M Base Case Spodumene Base Case Price (US$550-750/t) 253 588 Exchange Rate (AUDUSD$0.80-0.64) 301 571 Li Grade Flex (+/-10%) 323 518 Operating Cost Flex (+/-15%) 331 510 Li Recove
Slide 13: Cash Flow Profile
Cash Flow Profile = <3 Year Payback Period For personal use only Average net cash flows >A$100mpa (After Tax) 1,000 A$M 800 Scoping study 600 suggests Life of Mine free 400 cash flow of 200 ~A$762M - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 (200) Revenue A$m (400) Net cashflow after tax A$m Cumulative net cas
Slide 14: Metallurgy and Flowsheet
METALLURGY AND Preliminary Test Work Confirms FLOWSHEET a Saleable Li2O Concentrate Can Be Produced KEY OUTCOMES For personal use only • 5.9% Li2O from DMS conc. • 36% mass rejection from 2-stage DMS • 5.5% Li2O from flotation • Low iron (<0.5% Fe2O3) • Predicted 79% Li2O recovery • Preliminary Ta2O
Slide 15: High Grade Compared With Most Peers
High Grade Compared With Most Peers - Plus Potential to Grow Hard Rock Lithium Projects 0-100Mt, Western World - For personal use only Spodumene Dominant Tonnes x Grade 1.7 KATHLEEN KATHLEEN VALLEY 1.6 VALLEY MRE Whabouchi MRE + ET* 1.5 1.4 Finnis / Bynoe Mt Marion 1.3 James Bay Mt Caitlin Li2O % 1.
Slide 16: Kathleen Valley Investment Case
KATHLEEN VALLEY INVESTMENT CASE Updated MRE due July 2019 For personal use only Strong focus on optimising recoveries– further test work in progress Robust, high grade maiden resource Further feasibility studies ongoing First world location and expertise Active, well serviced mining region Conventio
Slide 17: Buldania Lithium Project
For personal use only PERTH BULDANIA LITHIUM PROJECT 16
Slide 18: Buldania is Located in a Lithium-Rich Mineral Province
Buldania is Located in a Lithium-Rich Mineral Province Outcropping, fresh, spodumene- For personal use only related mineralisation Mineralisation at Anna extended to the SE under shallow cover – strike length >1.3km and open Similar geology to the Mt Marion and Bald Hill lithium deposits (71Mt and 2
Slide 19: Large Lithium Mineralisation at Anna Prospect
Large Lithium (Spodumene) Mineralisation fresh from surface Mineralised Pegmatite and open along strike and at depth Defined at the Anna Prospect For personal use only 13m @ 1.0% Li2O 29m @ 1.3% Li2O incl. 9m @ 1.7% Li2O 25m @ 1.2% Li2O Drill section incl. 5m @ 2.0% Li2O 32m @ 1.1% Li2O incl. 9m @ 1
Slide 20: Drilling Extends Mineralisation At Anna To South East
Drilling Extends Mineralisation At Anna To South East – System Remains Open Anna Long Section (Looking NE) For personal use only NW SE 30m @ 1.4% Li2O 39m @ 1.6% Li2O 14m @ 1.7% Li2O incl. 9m @ 1.6% Li2O incl. 13m @ 2.1% Li2O incl. 11m @ 2.0% Li2O 13m @ 1.0% Li2O 32m @ 1.1% Li2O incl. 9m @ 1.3% Li2O
Slide 21: Large Land Position Highly Prospective For Lithium
Large (~600km2) Land Position Highly Prospective For Lithium For personal use only No lithium exploration prior to Liontown ~20km strike length of prospective stratigraphy Multiple spodumene-bearing pegmatites up to 800m long and 20m wide mapped Rock chip assay values up to 3.5% Li2O Initial drill t
Slide 22: Catalysts for Continued Re-Rating
Catalysts for Continued Re-Rating Kathleen Valley Project Buldania Project For personal use only Continuing Maiden Mineral 1 5 05 Resource: Q3 2019 drill results Resource Upgrade: Regional 2 6 06 July 2019 exploration and discovery drilling Metallurgical studies 3 Preliminary focused on optimising 7
Slide 23: A Proven, Experienced Board
For personal use only A Proven, Experienced Board DAVID RICHARDS TIM GOYDER CRAIG WILLIAMS ANTHONY CIPRIANO STEVEN CHADWICK Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years experience experienc
Slide 24: Appendix
APPENDIX For personal use only Kathleen Valley Project Additional Information 23
Slide 25: Scoping Study – Key Parameters And Assumptions
Scoping Study – Key Parameters And Assumptions Parameter For personal use only Parameter General and Economic Cost Assumptions Discount rate (real, post tax) 8% LOM average open pit mining A$37.72 costs ($/t ore mined) Spodumene concentrate price US$650 per tonne FOB LOM average processing cost Tant
Slide 26: Scoping Study – LoM Financials And Capital Expenditure
Scoping Study – LoM Financials And Capital Expenditure For personal use only Life of Mine Financials Capital Costs Summary A$M Main Area Capital (A$M) Revenues 2,802 Treatment Plant 82.8 Operating costs (1,236) Reagents & Plant Services 9.5 Infrastructure – general 39.9 Capital expenditure Mining 6.
Slide 27: Scoping Study – Production And Costs
Scoping Study – Production And Costs For personal use only Production and Costs 400 800 701 350 660 700 300 570 600 616 537 520 525 Conc. Production (kt) Opex (A$t/conc) 250 552 468 500 468 391 200 434 433 438 400 377 293 150 300 310 100 200 191 50 100 169 348 351 357 356 372 355 356 149 - - Y2 Y3 Y
Slide 28: Scoping Study – Grade Profiles
Scoping Study – Grade Profiles For personal use only LOM Lithium and Tantalum Grade Profile 1.60% 189 200 174 169 180 1.40% 163 156 160 Lithium Grade (%Li2O) Tantalum Grade (ppm Ta2O5) 1.20% 142 142 133 133 140 1.00% 120 0.80% 100 1.42% 1.26% 1.26% 1.32% 1.26% 1.26% 0.60% 1.23% 1.24% 80 1.20% 60 0.4
Slide 29: Scoping Study – Production Classification
Scoping Study – Production Classification For personal use only Production Classification by Year 2.5 50% 45% 2 40% 35% 1.5 30% Tonnes (Mt) 25% 1 20% 15% 0.5 10% 5% 0 0% Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Unclassified Inferred Indicated Measured Percentage Inferred 28
Slide 30: Exploration Target Parameters and Assumptions
Exploration Target Parameters and Assumptions For personal use only Kathleen’s Kathleen’s Total Parameter Mt Mann Rationale Corner (NW) Corner (SE) Tonnage Combined strike 800m 400 200 Based on recent and length of pegmatites previous drilling and Average cumulative extrapolation of block 11-15m 35-
Slide 31: Peer Comparison Information
Peer Comparison Information Global Measured Indicated Inferred Resource Company Code Project Stage Resource Information Source For personal use only Mt Mt Mt Grade Mt ASX Announcement 23rd Jan 2019: Galaxy ASX: GXY Mt Caittlin Operating 2.2 9.9 4.6 16.7 1.28 https://www.asx.com.au/asxpdf/20190 Resou
Slide 32: Peer Comparison Information
Peer Comparison Information Global Measured Indicated Inferred Resource Company Code Project Stage Resource Information Source For personal use only Mt Mt Mt Grade Mt North American SHE: Website North, 18th June 2019: La Corne Development 6.91 26.33 13.76 47 1.2 Lithium, CATL 300750 http://na-lithiu
Slide 33: For personal use only
For personal use only EMAIL WEBSITE: OFFICE PHONE NUMBER info@ltresources.com.au www.ltresources.com.au Level 2, 1292 Hay St 08 9322 7431 West Perth WA 6005 CONNECT https://au.linkedin.com/company/liontown-resources-limited https://twitter.com/LiontownRes 32
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