Zinnwald Lithium Plc · LSE:ZNWD
Zinnwald Lithium — Investor Presentation (September 2022)
24 slides from Zinnwald Lithium's investor presentation, Sep 13, 2022
Slide 1: Focused on becoming an important supplier to Europe's fast-growing battery sector
Focused on becoming an important supplier to Europe’s fast-growing battery sector September 2022
Slide 2: Disclaimer
DISCLAIMER The content of information contained in this presentation (the “Presentation”) has not been approved by an authorised Accordingly, no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, person within the meaning of the Financial S
Slide 3: Overview
OVERVIEW AIM quoted resource company developing the 100% owned Zinnwald Lithium Project in Germany Attractive Excellent Strong Lithium Team to Project Location Demand Deliver Integrated project to produce 35km from Dresden, Germany Strengthening lithium market Experienced Board with battery-grade Li
Slide 4: Project Highlights
PROJECT HIGHLIGHTS Potential to be a meaningful supplier of battery grade LiOH for the European market – 12ktpa • Robust economics with pre-tax NPV8 of US$1.6 bn, IRR of 39% and payback period of 3.3 years • Resource to support long life of >35 years • Located close to end markets within the heart o
Slide 5: Lithium Market Dynamics
LITHIUM MARKET DYNAMICS • Lithium demand prospects of 3Mt by 2030 and by 5Mt by 2050 growing at an average of 28% p.a through 2025 (Bank of America) • Demand growth driven by shift to EVs, which is occurring faster than anticipated • Expected shortfall already in 2022; cumulative deficit increasing
Slide 6: Lithium in Europe
LITHIUM IN EUROPE Europe needs The mining industry needs to double capex to Europe will need 18 x more lithium $160 billion by 2050 c. 200 GW in 2030 than it used in 2020 lifting to 60 x by to meet the expected increased demand for of electricity storage by 2030, and as much as 2050 to deliver on it
Slide 7: Project Overview
PROJECT OVERVIEW • Integrated operation planned to produce battery grade LiOH • Small footprint underground mine & associated mineral & chemical processing Zinnwald Project Site • Valuable by-products • High purity potassium sulphate and precipitated calcium carbonate • Core mining licence valid unt
Slide 8: History & New Technical Strategy
HISTORY & NEW TECHNICAL STRATEGY Detailed technical review undertaken over the past 12 months to create a more viable and financeable project: saleable product, cost optimization, viable permitting plan, utilisation of existing infrastructure October 2020 June 2021 December 2021 August/September 202
Slide 9: Revised Mining Concept
REVISED MINING CONCEPT Opportunity to take advantage of existing infrastructure • Existing ~4km drainage tunnel that potentially could be used to access Zinnwald deposit from below enabling downhill material flow • Old shafts and underground workshops available (ventilation, escapeway, potential min
Slide 10: Long Resource Life and Potential Upside from Satellite Deposits
LONG RESOURCE LIFE AND POTENTIAL UPSIDE FROM SATELLITE DEPOSITS ZINNWALD MINING LICENSE Freiberg • 35.5 MT M&I resource – supports >35 years of mine life • Mining license to 2047 • One of the larger identified lithium resources in Europe Sadisdorf EL THE FALKENHAIN EXPLORATION LICENCE Falkenhain EL
Slide 11: Significant Upside Potential in Zinnwald Deposit
SIGNIFIGANT UPSIDE POTENTIAL IN ZINNWALD DEPOSIT Pilot tests have proved ore-sorting viability • Barren or low grade particles (>10 mm) can be effectively separated from material flow before expensive processing stages • Ore-type 2 (excluded from Mineral Resources) and ore lenses below 2 metres in t
Slide 12: Simplified Flow Sheet
SIMPLIFIED FLOW SHEET Optimisation to minimise waste, transport and energy use Undergound Mining Mineral Processing Ore Haulage Quartz Sand Construction industry AVOCA / Sub-level stoping / via underground rail / conveyer Crushing,/ screening, magnetic (Local off take and dry stack storage ) Room &
Slide 13: Location Infrastructure Advantages
LOCATION INFRASTRUCTURE ADVANTAGES Historic mining activity has resulted in a legacy of brownfield infrastructure in the region • Located in a region with a long history of mining • Brownfield facilities in the area • Legacy mining infrastructure with the potential to improve project logistics and l
Slide 14: Existing Infrastructure
EXISTING INFRASTRUCTURE 14 Investor Presentation I September 2022
Slide 15: Preliminary Economic Assessment Summary of Results
PRELIMINARY ECONOMIC ASSESSMENT SUMMARY OF RESULTS(1) PEA Key Indicators Unit Value Pre – Tax NPV8 (US$bn) Pre-tax NPV (at 8 % discount) US$ m 1,605 2.50 Pre-tax IRR % 39.0% 2.30 Post-tax NPV (at 8 % discount) US$ m 1,012 2.10 Post-tax IRR % 29.3% 1.90 US$bn Pre-Tax NPV Simple Payback (years) Years
Slide 16: Project Development Timetable
PROJECT DEVELOPMENT TIMETABLE(1) 2022 2023 2024 2025 2026 2027 Process Development Completion of Basic Engineering for Min Pro. / Hydro & Pyro Drill Campaign Drill Campaign on Zinnwald for new MRE & Falkenhain Exploration Drilling Mining, MRE & BFS Development of Mining Reserve & Completion of BFS F
Slide 17: Sustainability Advantages
SUSTAINABILITY ADVANTAGES SOUTH AUSTRALIAN GEOTHERMAL TRANSPORT MINIMISED ZINNWALD AMERICAN HARD ROCK BRINE/DLE BRINE • Located close to final end markets • Integrated production planned - mining to battery grade products Proximity to end market (TRANSPORT COST & CO2 EMISSIONS) ✓ ✓ LIMITED PHYSI
Slide 18: ESG
ESG Being environmentally & socially responsible & upholding high standards of governance is core to Zinnwald Lithium’s mission Environmental Social Governance Lithium-ion batteries are a key enabling Established mining district – mining history UK listed Plc with a commitment & technology for the s
Slide 19: Strategy & Focus Areas
STRATEGY & FOCUS AREAS ▪ Strategy to become a low-cost supplier of battery grade LiOH to the European battery sector through: ▪ Increasing production potential from core Zinnwald license area & satellite deposits ▪ Optimising cost position and reducing the overall CO2 footprint through value enginee
Slide 20: Investment Summary
INVESTMENT SUMMARY Integrated lithium project with attractive project economics & mining licence in place Project in the heart of Europe’s chemical & automotive industries, benefiting from historic mining activity & brownfield infrastructure Meaningful resource position & expansion potential from ad
Slide 21: Appendix – Key Data
APPENDIX – KEY DATA (as at 12.09.22) Ticker Market Market cap Share price Shares in issue Nomad Broker ZNWD AIM £32m 10.8p 293,395,464 Allenby Capital Oberon Capital Key Shareholders Share Price Graph Henry Maxey 14.6% Ganfeng Lithium 8.7% Oberon Investments 4.1% Mark Tindall 3.2% Other 68.7% 21 Inv
Slide 22: Appendix - Board
APPENDIX - BOARD Jeremy Martin Anton Du Plessis Cherif Rifaat Peter Secker Graham Brown Non-Executive Chairman Chief Executive Officer Chief Financial Officer Non-Executive Officer Non-Executive Director +20 years experience working in +20 years' experience in the finance UK Chartered Account with +
Slide 23: Zinnwald Resources & Reserves
ZINNWALD RESOURCES & RESOURCE ZINNWALD LITHIUM DEPOSIT MINERAL RESOURCE ESTIMATE OF THE ZINNWALD LITHIUM DEPOSIT • 256.5 ha and with a 30-year mining licence to 31 December 2047 Ore tonnage Mean Li2O Contained LCE • Measured plus Indicated Mineral Resource estimate containing 35.51 Mt at a Resource
Slide 24: Zinnwald Lithium plc contact details
Zinnwald Lithium plc The Clubhouse, 8 St James's Square, London SW1Y 4JU www.zinnwaldlithium.com info@zinnwaldlithium.com
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