Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (February 2023)
40 slides from Sovereign Metals's investor presentation, February 2023
Slide 1: Company Presentation February 2023
FEBRUARY 2023 | AIM: SVML | ASX: SVM | ABN: 71 120 833 427
Slide 2: Disclaimers & Disclosures
DISCLAIMERS & DISCLOSURES AUTHORISATION STATEMENT This presentation has been approved and authorised for release by the Company’s Managing Director, Dr Julian Stephens. DISCLAIMER NOTICE This presentation has been prepared as a summary only and does not contain all information Sovereign Metals Limit
Slide 3: Globally significant deposit of two critical minerals
Globally significant deposit of two critical minerals Kasiya - the world’s largest rutile resource and one of the largest graphite resources Two minerals critical to the world’s development and decarbonisation targets 3
Slide 4: Decarbonisation is a central theme for governments and corporations
Decarbonisation is a central theme for governments and corporations Europe has also the great opportunity to Titanium industry is following… become the continent of climate innovation. For this, the European Commission will mobilise massive Rio Tinto partners with Voltalia for renewable investments
Slide 5: Natural rutile (TiO2) is a genuinely scarce commodity
Natural rutile (TiO2) is a genuinely scarce commodity The natural rutile market is completely constrained by available supply. Key uses include feedstocks for titanium dioxide pigment, welding flux and titanium metal One of the most significant supply crises in the world of natural resources has eme
Slide 6: Natural Rutile – the purest natural form of titanium
Natural Rutile – the purest natural form of titanium HIGH GRADE CHLORIDE PIGMENT FEEDSTOCK (+80% TiO2) SUPPLY BY TYPE ~2.7Mt TiO2 Market Size (2020) Natural Direct use Rutile material Natural Rutile 10% +US$2,070/t * UGS 11% Syn-Rutile Upgraded via energy and 27% carbon intensive processes: Titania
Slide 7: Natural Rutile – orders of magnitude lower carbon footprint
Natural Rutile – orders of magnitude lower carbon footprint than other titanium feedstocks Scope 1 & 2 Scope 3 Natural Rutile 0.1 tonnes CO2e per tonne of titanium feedstock Ilmenite upgraded alternatives Up to 3.3 tonnes CO2e per tonne of titanium feedstock Source: Minviro Ltd; Sovereign Metals 7
Slide 8: Life Cycle Assessment shows Carbon Emissions Reduction Potential
Life Cycle Assessment shows Carbon Emissions Reduction Potential Scope 1 & 2 Per Tonne Of Titanium Scope 3 Emissions Per Tonne Of Waste Generation Feedstock Type Produced Titanium Dioxide Pigment Produced (Upgrading Process) 20 -33x 35-53% 7.7t CO2e lower Scope 1&2 3.3t CO2e lower Scope 3 global war
Slide 9: Kasiya: a transformational discovery for the TiO2 industry
KASIYA Major Global Rutile Dominant Resources1 18.0Mt Contained Rutile(Mt) A transformational discovery for the TiO2 industry #1 >2x Largest rutile More than double 8.1Mt deposit ever the rutile resource discovered of nearest peer 50 years 18 Mt 2.0Mt 0.7Mt 1st significant rutile- Contained rutile K
Slide 10: Kasiya - Huge and Robust Deposit
Kasiya - Huge and Robust Deposit • Mineralisation lies in laterally extensive, near surface, flat “blanket” style • Widespread, high-grade mineralisation from surface to up to 25m 10
Slide 11: Kasiya: One of the Largest Flake Graphite Resources in the World
Kasiya: One of the Largest Flake Graphite Resources in the World • Graphite occurs in broad association with rutile • Kasiya graphite is highly crystalline and of high purity – important features required for use in lithium-ion battery anodes Source: See Peer Sources (Slides 38-40) 11
Slide 12: Potential future major producer of both natural rutile and graphite
Potential future major producer of both natural rutile and graphite Large-scale, high-grade operation with a conventional flow sheet and low-cost profile supported by excellent existing infrastructure 12
Slide 13: Kasiya presents exceptional economics
Kasiya presents exceptional economics Key Economic Results – 2022 Expanded Scoping Study US$1,537M 36% US$12,038M US$323M US$320/t US$372M Ave. Annual Operating Cost Capex to 1st After Tax NPV8 After Tax IRR LOM Revenue Production EBITDA per tonne of product Two stage approach Annual Production – Ru
Slide 14: Kasiya is placed as one of the best undeveloped projects
Kasiya is placed as one of the best undeveloped projects Kasiya Mallina Goulamina Kathleen Valley Project Malawi Western Australia Mali Western Australia Phase Scoping PFS DFS DFS Commodity Rutile-Graphite Gold Lithium Lithium A$2,220 A$2,226m A$4,150m A$4,200m NPV8 post-tax (US$1,537) (US$1,603m) (
Slide 15: Potentially the Lowest Cost Flake Graphite Project in the World
Potentially the Lowest Cost Flake Graphite Project in the World • Average life-of-mine FOB (Nacala) operating cost of US$320/t of product (rutile + graphite)* • Incremental FOB operating cost of US$140/t reflecting graphite production as a co-product* Source: See Peer Sources (Slides 38-40) * Econom
Slide 16: Graphite Co-Product – Significant Cost and Environment Benefits
Graphite Co-Product – Significant Cost and Environment Benefits Lower density cut from the spiral with visible graphite on the • Graphite rich concentrate is collected from the gravity spirals and processed in a separate graphite surface flotation plant, producing a high purity and high value coarse
Slide 17: Excellent Logistics
Excellent Logistics KASIYA MOZAMBIQUE • Infrastructure already in place offering significant cost advantages and providing optionality and scalability NACALA PORT • Free-access rail line to the deepest port on the east African seaboard connecting to global markets NACALA LOGISTICS CORRIDOR • +US$5bn
Slide 18: Malawi
Malawi Stable, Transparent Jurisdiction Looking to Benefit From Mining Member country of the Commonwealth Attracting significant investment with strong aspiration for mining Strong Government support for the development Excellent nearby operating infrastructure Kasiya project – significant contribut
Slide 19: Developing mining sector
Developing mining sector Mining sector recognised as an industry of significant and near future economic importance to Malawi Several listed companies active Kayelekara Kanyika Songwe Hill Kangankunde Uranium Niobium REE REE Re-start (DFS) DFS DFS Exploration President of Malawi made a special menti
Slide 20: Strong market partners established
Strong market partners established MoU signed with Mitsui & Co for offtake and marketing rights for 30,000 tonnes per annum of natural rutile MOU signed for supply of 20,000 tonnes of natural rutile MoU signed for supply of 25,000 tonnes of natural rutile from Kasiya per annum from Kasiya to US-base
Slide 21: Critical minerals from the warm heart of Africa
Critical minerals from the warm heart of Africa 1 World’s largest natural rutile and one of the largest graphite resources 2 Multi-generational, tier 1 critical minerals deposit 3 Low-cost, large-scale operation with simple and conventional process flowsheet 4 Positioned to become a dominant produce
Slide 22: Targeting a net zero carbon project
Targeting a net zero carbon project using dominantly renewable power sources with low carbon in use critical mineral products – natural rutile and graphite 22
Slide 23: Appendices
Market Dynamic and Clean Energy Focus APPENDICES 23
Slide 24: Corporate Snapshot
Corporate Snapshot Share Price Performance (Since Feb 2020) $1.00 Kasiya Maiden JORC Resource 1.8Bt @ 1.01% rutile confirms Kasiya as Capital Structure(as at 1 Feb 23) 644Mt @ 1.01% Rutile largest rutile deposit ever discovered ASX / AIM Ticker SVM / SVML $0.80 Share Price (A$ / P) A$0.51 / 28p $0.6
Slide 25: Well-established and having a positive contribution in Malawi already
Well-established and having a positive contribution in Malawi already Employment and Training of a Advancing Community Community and Stakeholder Promoting Education Diverse Workforce Infrastructure Engagement Sovereign currently has over 45 Sovereign understands the Sovereign has been active in Cont
Slide 26: Simple Geology
Simple Geology Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off Mineral Material Rutile Total Contained Rutile Tonnes TGC Tonnes RutEq. Resource Tonnes Grade Graphite (TGC) (millions) (millions) Grade1 Category (millions) (%) (%) Indicated 662 1.05% 6.9 1.43% 9.5 1.76% Inferred 1,113 0.99% 11
Slide 27: Further Mineralisation at Depth
Further Mineralisation at Depth 27
Slide 28: Simple Mining
Simple Mining Homogenous, soft, friable saprolite Hydro-mining a proven mining technique • Kasiya’s mineralisation largely homogenous and relatively consistent with material conducive to hydro-mining • Long history of successful hydro-mining of heavy mineral deposits across southern Africa • Numerou
Slide 29: Simple Processing
Simple Processing Premium-grade rutile produced via conventional flowsheet • Robust metallurgy • Conventional graphite flotation plant at marginal incremental cost 98% Stand-out Rutile Metallurgical Recoveries 96% TiO2 Premium Specification Rutile 96% TGC Coarse Flake High-grade Graphite Source: Sov
Slide 30: Simple Mining and Progressive Rehabilitation
Simple Mining and Progressive Rehabilitation Socially responsible and sustainable Example of progressive rehabilitation of a mineral sands mine Example of progressive rehabilitation of a mineral sands mine • In-pit disposal minimises disturbance • Progressive returning of land to communities • Effic
Slide 31: Exceptionally low carbon operation
Exceptionally low carbon operation 100% renewable hydro-power from the grid plus solar facility on site Cleaner sustainable operation • Hydro-mined (significant dust and noise reduction) • Simple low energy processing – Gravity – Electrostatic – Magnetic – Flotation (graphite only) • Investigating o
Slide 32: Rutile - Premium Product
Rutile - Premium Product Kasiya Rutile Specifications Kasiya Rutile Particle Size Distribution Kasiya Peer Comparisons (Producers) 20% 98% Recovery CATERGORY SIZING Sierra Rutile Base Resources Constituent 15% Product (Iluka) (Kwale) TiO2 % 96.0 96.3 96.2 10% ZrO2+HfO2 % 0.21 0.78 0.72 5% SiO2 % 0.9
Slide 33: Graphite – Premium Product Specifications
Graphite – Premium Product Specifications Kasiya Graphite Specifications Kasiya Graphite Flake Size Distribution 35% Weight Particle Size Carbon Distribution 30% Flake Category 25% Tyler Mesh Micron (μ) (%) (% w/w) 20% 15% +32 +500 96.0 5.4 Super Jumbo 10% 5% -32 +48 -500 +300 96.6 25.1 Jumbo 0% +32
Slide 34: Ongoing Activities to PFS and Future Work Program
Ongoing Activities to PFS and Future Work Program CY 2022 CY 2023 CY 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Kasiya Project Expanded Scoping Study Resource Drilling PFS & Mineral Resource Update Offtake Discussions & Announcement Environmental & Project Permitting DFS Source: Sovereign Metals; ASX; Londo
Slide 35: Demerger of Standalone Graphite Projects
Demerger of Standalone Graphite Projects Sovereign shareholders* Receive for every = 11 shares 1 share Priority offer to subscribe for an additional 1 share for $0.20 NGX aims to IPO on the ASX Three graphite projects ranging from exploration and development level (Malingunde, Duwi and Nanzeka) New
Slide 36: Demerger of Standalone Graphite Projects (cont.)
Demerger of Standalone Graphite Projects (cont.) Rationale for the Demerger Timetable and Key Events • The Demerger allows the Company to better focus its efforts and resources on Kasiya Announcement of Demerger and other primary rutile discoveries. • The Demerger will provide shareholders with an i
Slide 37: Thank you
SOVEREIGN METALS LIMITED Thank you 37
Slide 38: Appendix - Peer Sources
Appendix - Peer Sources MINERAL SANDS PEER INFORMATION Reference Company Project Stage of Development Revenue to Cost ratio Source Ilmenite -Madagascar Base Resources Toliara FS Complete 3.5 ASX Announcement: https://wcsecure.weblink.com.au/pdf/BSE/02426235.pdf Ilmentie – Western Australia Strandlin
Slide 39: Appendix - Peer Sources
Appendix - Peer Sources RUTILE MINERAL RESOURCES INFORMATION Ref Company Project Status Source 1 Iluka Resources Sierra Rutile Production & Development Iluka Resources Limited’s 2021 Annual Report (released on ASX 24/02/2022) Iluka Resources Limited Annual Ore Reserve and Resources as at 31 December
Slide 40: Appendix - Peer Sources
Appendix - Peer Sources GRAPHITE RESOURCE INFORMATION Ref Company Project Project Status Source 1 Syrah Resources Balama Production Syrah Resources Limited’s 2021 Annual Report (released on ASX 24/02/2022) 2 Volt Resources Bunyu FS Complete Volt Resources Limited’s 2021 Annual Report (released on AS
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