Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (February 2022)
24 slides from Sovereign Metals's investor presentation, February 2022
Slide 1: Kasiya: A globally significant natural rutile discovery
Kasiya A globally significant natural rutile discovery February 2022 AIM: SVML | ASX: SVM @sovereignmetals | info@sovereignmetals.com.au 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: Rutile - a major source of titanium
Rutile - a major source of titanium Pigment (58%) Welding (31%) Titanium Metal (11%) Titanium – designated a CRITICAL RAW MATERIAL by the US and EU based on “supply risk” and “economic importance” Note: Percentages relate to uses of rutile as a titanium feedstock 3
Slide 4: Natural Rutile – the purest natural form of titanium
Natural Rutile – the purest natural form of titanium ~95% TiO2 +US$1,350/t 0.5Mt Spot over US$2,000/t* Supply 20201 Natural Rutile ~50% TiO2 +$200/t 6.2Mt Spot over US$400/t* Supply 20201 Ilmenite 1.Titanium feedstock supply. Ilmenite includes sulphate slag production and chloride slag production; l
Slide 5: Natural Rutile – genuinely scarce
Natural Rutile – genuinely scarce EXPECTED GLOBAL RUTILE SUPPLY TO 2030 1,000 70% 900 Natural Rutile Expected decrease in entered supply global rutile supply from 800 deficit in 2017 2017 to 2030 (~515kt) 700 Iluka Resources 600 Sierra Rutile 2.8Mt TiO2 UNITS Base Resources 500 Kwale Expected increa
Slide 6: Kasiya – globally significant rutile discovery with graphite by-product
Kasiya – globally significant rutile discovery with graphite by-product Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off Mineral Material Rutile Rutile TGC TGC Tonnes Resource Tonnes Grade Tonnes (%) (millions) Category (millions) (%) (millions) Indicated 304 1.02% 3.1 1.31% 4.0 Inferred 301
Slide 7: Largest undeveloped rutile deposit in the world
Largest undeveloped rutile deposit in the world • One of the largest standalone rutile-dominant deposits discovered in over 50 years • Kasiya sits within the top two rutile resources in the world alongside Sierra Rutile • Substantial additional resource growth expected in coming months Sources: Base
Slide 8: Significant growth potential
Significant growth potential • Scoping Study based on current mining inventory covering only 38% of total drill- defined mineralised footprint in Malawi • Kasiya (89km2) and Nsaru (40km2) total ~129km2 of drilled, high-grade rutile mineralisation • Step-out drilling at Kasiya and Nsaru is continuing
Slide 9: Initial Scoping Study results: rutile and by-product graphite
Initial Scoping Study results: rutile and by-product graphite NPV8 IRR Payback (real post-tax) (after-tax) Mine life 25 years US$861m 36% 2.5 years Annual throughput 12,000,000 tonnes Total Revenue Revenue EBITDA (LoM) (annual average LoM) (annual average LoM) $6,266m US$251m US$161m Annual producti
Slide 10: Simple geology
Simple geology High grade rutile mineralisation from surface • Rutile mineralisation lies in laterally extensive flat “blanket” style bodies • All mineralisation occurs in a single, large, and coherent deposit with much of the high-grade material occurring within the top ~5 metres from surface • Sev
Slide 11: Simple mining
Simple mining Hydro-mining a proven mining technique • Long history of successful hydro-mining of heavy mineral deposits across southern Africa • Numerous African heavy minerals operations use hybrid hydro / dozer mining methods that provide significant operational flexibility Homogenous, soft, fria
Slide 12: Simple processing
Simple processing Premium-grade rutile produced via conventional flowsheet • Robust metallurgy now confirmed from two distinct bulk test work programs 94%-100% Stand-out Rutile Metallurgical Recoveries • Significant interest from Tier 1 rutile off-takers 95.0%-97.2% TiO2 Premium Specification Rutile
Slide 13: Simple progressive rehabilitation
Simple progressive rehabilitation Socially responsible and sustainable Example of progressive rehabilitation of a mineral sands mine • In-pit disposal minimises disturbance • Progressive returning of land to communities • Efficient closure campaign at end of mine life Source: Images from Minerals Co
Slide 14: Low-risk operation
Low-risk operation Simple Mining Simple Processing Progressive Rehabilitation Simple, conventional Positioned for for effective High-grade rutile Simple, conventional flowsheet already Positioned effectiveESG ESG mineralisation from surface flowsheet outcomes outcomes demonstrated Soft, friable mate
Slide 15: Malawi
Malawi Stable, Transparent Jurisdiction Member country of the Commonwealth Attracting significant investment Demonstrable aspiration for mining Excellent operating infrastructure 2020 Country of the Year Source: Sovereign Metals 15
Slide 16: Operation-ready infrastructure
Operation-ready infrastructure Source: Sovereign Metals 16
Slide 17: Natural rutile in a world of increasing cost of carbon emissions
Natural rutile in a world of increasing cost of carbon emissions Cost of EU Carbon Permits 120 100 Direct use TiO2 material 80 Natural Rutile EUR/t 60 Upgraded via energy and 40 carbon intensive processes: FeTiO3 Titania Slag 20 (+85% TiO2) Ilmenite Synthetic Rutile (+88% TiO2) 0 2016 2017 2018 2019
Slide 18: Natural rutile – a lower carbon footprint alternative
Natural rutile – a lower carbon footprint alternative Utilising natural rutile saves up to 2.8 tonnes CO2 eq. per tonne Source: Minviro Ltd; Sovereign Metals 18
Slide 19: Exciting year ahead
Exciting year ahead CAPITAL STRUCTURE 432,433,755 19,794,500 Revised Life Cycle Assessment – Q1 2022 Shares on Issue1 Unlisted Options1 ($0.14 to $0.50) 13,490,000 Performance Rights A$216m / £118m Substantial JORC resource tonnage increase – H1 2022 (milestone vesting conditions) Un-Diluted Market
Slide 20: Thank you
SOVEREIGN METALS LIMITED Thank you 20
Slide 21: Appendix I: EU & US have declared graphite a supply critical material
Appendix I: EU & US have declared graphite a supply critical material Currently China produces over two-thirds of all Natural Graphite natural graphite and accounts for 100% of all anode Extracted from mining (natural graphitization occurred over time) material precursor Processing location Global p
Slide 22: Appendix II: Premium product specifications
Appendix II: Premium product specifications Kasiya Products Peer Comparisons Base Carbon Weight 100% Recovery 94% Recovery Sierra Rutile Particle Size Distribution Constituent Product Product (Iluka) Resources Flake (Kwale) Tyler Mesh Micron (μ) (%) (% w/w) Category TiO2 % 95.0 97.2 96.3 96.2 ZrO2+H
Slide 23: Appendix III: Commodity price deck
Appendix III: Commodity price deck Rutile Price Assumption Sales 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Long- term Mix TZMI Forecast Price –Base (real) $1,336 $1,334 $1,314 $1,336 $1,328 $1,311 $1,287 $1,255 $1,221 $1,180 $1,180 Bulk sales (pigment inducement price) 60% $1,336 $1,334 $1,3
Slide 24: Appendix IV: One of the world's best undeveloped mineral sands projects
Appendix IV: One of the world’s best undeveloped mineral sands projects REVENUE TO COST RATIO UNDEVELOPED PROJECTS UNDEVELOPED MINERAL SANDS PROJECT PIPELINE ANNUAL AVERAGE REVENUE TO CAPEX KASIYA 4 KASIYA 0.80 AVERAGE REVENUE TO INITIAL CAPITAL RATIO 3.5 0.70 KASIYA FIRST KASIYA QUARTI REVENUE TO C
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