Argosy Minerals Limited · ASX:AGY
Argosy Minerals — Shareholder Meeting (May 2019)
26 slides from Argosy Minerals's shareholder meeting presentation, May 29, 2019
Slide 1: 2019 AGM Presentation
For personal use only 2019 AGM PRESENTATION ASX: AGY www.argosyminerals.com.au 29 May 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$ 40,000,000 Volume For personal use only 0.50 0.45 INVESTMENT 0.40 35,000,000 Average Daily Trading Volume: 30,000,000 SNAPSHOT 0.35 0.30 25,000,000 ~3.5m shares 0.25 20,000,000 Average Daily 0.20 Trading Value: 15,000,000 0.15 10,000,000 $756,578 0.10 5,000,0
Slide 6: 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 7: Investment Highlights
For personal use only INVESTMENT HIGHLIGHTS o Focussed on becoming the o Established local and federal o Executed an initial off-take next lithium carbonate government relationships arrangement with Mitsubishi producer in South America RtM o Extensive experience in the o Successful fast-track lithiu
Slide 8: Fast-Track Development Gaining Momentum
FAST-TRACK DEVELOPMENT GAINING MOMENTUM Next phase to commercial scale production confirmed with exceptional PEA Results For personal use only 2016 2017 - 2018 2019 Securing Strategic Position Locking in Value Revenue Generation • Constructed industrial-scale pilot plant • Executed initial sales • S
Slide 9: Rincon Development
For personal use only Rincon Development 9
Slide 10: Rincon Development Update – Industrial Scale Pilot Plant
Pablo commented “I am RINCON DEVELOPMENT UPDATE – For personal use only delighted we now have INDUSTRIAL SCALE PILOT PLANT the opportunity to prove our chemical process experience in delivering o Sales Agreement executed with Mitsubishi RtM in March 2019 to sell up to 100tpa LCE Product material to
Slide 11: Rincon Development Update – Commercial Scale Development
RINCON DEVELOPMENT UPDATE For personal use only Commercial Scale Development – 10,000tpa Fast-Track Development o PEA completed for the Rincon Project in o Progressing alternative production strategies in parallel, to November 2018 expedite revenue generation o PEA results confirmed Rincon as a low
Slide 12: Commercial Scale Development – PEA Outcomes
COMMERCIAL SCALE DEVELOPMENT For personal use only PEA OUTCOMES o PEA completed on base case ~10,000tpa operation (with scope for increase to 15,000tpa) o Base case PEA resulted in a pre-tax NPV (10% discount rate) of US$399m and an IRR of 53% o Forecast Capex of US$141m including 15% contingency of
Slide 13: Commercial Scale Development – PEA Outcomes
Argosy is the only new lithium brine developer to have For personal use only COMMERCIAL SCALE constructed an industrial scale pilot plant with successful DEVELOPMENT proof of chemical process to PEA OUTCOMES produce 99.5% battery grade lithium carbonate and o Total Estimated Operating Cost US$4,645/
Slide 14: Rincon Project – A Stand Out Lithium Asset
60,000 RINCON PROJECT – For personal use only 50,000 A STAND OUT Capital Intensity (US$/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 15: 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 16: 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 17: Fast-Track Development: ~2,000tpa Li2CO3 Production Strategy
FAST-TRACK DEVELOPMENT For personal use only ~2,000TPA Li2CO3 PRODUCTION STRATEGY o Argosy has the opportunity to expedite production o Key benefits of a ~2,000tpa plant include: to produce ~2,000tpa LCE Product • Enable Argosy to further validate chemical process • 38 hectares of evaporation ponds
Slide 18: Lithium Market
For personal use only Market Lithium 18
Slide 19: Lithium Market Outlook
LITHIUM MARKET OUTLOOK Benchmark Lithium Price Index (tonnes) For personal use only Lithium Market Price o Lithium Hydroxide price weakness continued with what appears to be weak end-user demand from nickel-rich batteries (e.g. NCM 811) and expectation of increasing supply 2H 2019 o Lithium Carbonat
Slide 20: Lithium Market Outlook
LITHIUM MARKET OUTLOOK Long-term fundamentals remain sound Motor vehicle For personal use only manufacturers and Off-take Agreements Strategic Investments energy companies o Volkswagen (VW) signed a o Gangfeng Lithium buy a 30% stake in Bacanora showing a direct MOU with Ganfeng Lithium Minerals Ltd
Slide 21: Lithium Market Outlook: Strong Growth in Megafactories
LITHIUM MARKET OUTLOOK Strong Growth in Megafactories For personal use only Number of announced Megafactories (capacity by 2023) 1,200 Total 1,000 Capacity Pipeline by 800 GWh 2028 600 1,748.5GWh 400 New Megafactories 200 will require a step change in the - volume of lithium 2013 2014 2015 2016 2017
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 – Argentina: Open for Business
Appendix – Argentina: Open for business Positive macro-economic developments underpin strong growth outlook For personal use only o Investment friendly tax regime, no need to negotiate separate fiscal agreements: • Corporate income tax at the rate of 30% from 1 January 2018, reducing to 25% from 1 J
Slide 26: Appendix – Industrial Scale Pilot Plant
Appendix – Industrial Scale Pilot Plant For personal use only 26