Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (June 2020)
25 slides from Sovereign Metals's investor presentation, June 2020
Slide 1: June 2020
JUNE 2020 ABN: 71 120 833 427 I ASX : SVM
Slide 2: Sovereign Metals – A New Force in Rutile
Sovereign Metals – A New Force in Rutile KASIYA DEPOSIT STRONG MULTIPLE HUGE WORK INFRASTRUCTURE HIGH-GRADE EXPLORATION AN EMERGING MARKET PROGRAM IN PLACE RUTILE PROSPECTS UPSIDE COMPANY FUNDAMENTALS ONGOING MAKER 2
Slide 3: A Genuinely Scarce Commodity
A Genuinely Scarce Commodity Rutile: The rarest, highest grade and valuable titanium source Rutile primarily is used as pigment (paints, plastics and paper), welding rods and for titanium metal Global supply of rutile in structural deficit Mature mines with declining grades General lack of new rutil
Slide 4: Kasiya Rutile Discovery – An Emerging Company Maker
Kasiya Rutile Discovery – An Emerging Company Maker Kasiya has the characteristics of a company making asset: large, high-grade and at surface Mineralised zone: +5.5km strike length with surface widths averaging +2.5km Mineralised zone continues to be open along strike in both directions and open la
Slide 5: Kasiya Deposit – High-Grade & Expansive
Kasiya Deposit – High-Grade & Expansive Recent drilling has significantly expanded high-grade rutile zone Key Results • 7m @ 1.27% rutile inc. 3m @ 1.80% rutile from surface • 5m @ 1.43% rutile inc. 2m @ 2.04% rutile from surface • 15m @ 1.12% rutile inc. 3m @ 1.46% rutile from surface • 9m @ 1.19%
Slide 6: Exceptionally High-Grades from Surface
Exceptionally High-Grades from Surface 11m @ 1.33% rutile incl. 5m @ 1.79% rutile 11m @ 1.14% rutile 11m @ 1.37% rutile 9m @ 1.19% rutile 13m @ 1.32% rutile incl. 3m @ 1.77% rutile incl. 5m @ 1.82% rutile incl. 3m @ 1.86% rutile incl. 4m @ 1.58% rutile A large percentage of intercepts remain open at
Slide 7: Kasiya – Conventional Processing Proven
Kasiya – Conventional Processing Proven Significantly de-risked Free dig, friable material from surface with characteristics that may be suitable for both hydro- mining or dozer-trap methods Simple, conventional flowsheet Each drill-sample processed represents a mini metallurgical test in its own ri
Slide 8: Premium Rutile Product For All End Markets
Premium Rutile Product For All End Markets Comparison of Sovereign’s Rutile Specifications to Initial metallurgical results on Leading Global Producers saprolite-hosted mineralisation show Constituent Malawi Rutile (Sovereign) Sierra Rutile (Iluka) RBM (Rio Tinto) Kwale (Base Resources) Namakwa Sand
Slide 9: Malawi – Stable, Transparent Jurisdiction
Malawi – Stable, Transparent Jurisdiction A stable, transparent jurisdiction Increasingly attracting international investment Significant potential and appetite for mining Excellent operating infrastructure in place 9
Slide 10: Operation-Ready Infrastructure
Operation-Ready Infrastructure Infrastructure in place to connect Sovereign to global rutile markets Established rail network direct to Nacala Port MoU in place with rail & port operator Paved roads surrounding project locations Grid power becoming available across license areas Established labour p
Slide 11: A New Rutile Province Discovered
A New Rutile Province Discovered Sovereign has identified a potentially globally significant, strategic rutile province across its large Malawi ground holding The Malawi Rutile Province features two confirmed, discrete rutile mineralisation styles; - Residual saprolite which is soft, friable weather
Slide 12: Bua Channel Prospect
Bua Channel Prospect Drilling confirms Bua Channel as a high-grade, rutile dominant, sand-hosted, channel placer deposit within the emerging Malawi Rutile Province. Exploration well underway Excellent grades of rutile and high-quality chloride ilmenite with a TiO2 content of ~60% Further extensional
Slide 13: Solid Knowledge Base Paving the Way
Solid Knowledge Base Paving the Way Sovereign has been active in Malawi for over 8 years, taking a saprolite- hosted graphite project to PFS and then DFS - technical level. The data gathered gives us a substantial head start and offers significant benefits in terms of cost and time savings to progre
Slide 14: Ongoing Work Programs
Ongoing Work Programs Extensional and infill drilling at Kasiya is complete with samples in Australia for analysis Extend Kasiya’s high-grade rutile mineralisation footprint Maiden JORC Mineral Resource estimate for Kasiya is targeted for late Q3, 2020 Mining and tailings studies are ongoing in orde
Slide 15: Sovereign – A Compelling Opportunity
Sovereign – A Compelling Opportunity KASIYA – A COMPANY MAKING PROJECT KASIYA – LARGE SCALE, HIGH-GRADE FROM SURFACE SIMPLE MINING & PROCESSING RUTILE MARKET IN DEFICIT EXCELLENT INFRASTRUCTURE STABLE, TRANSPARENT JURISDICTION 15
Slide 16: Thank You
THANK YOU
Slide 17: Appendices
APPENDICES 17
Slide 18: Rutile – Rarest, Highest Grade & Value Titanium Mineral
Rutile – Rarest, Highest Grade & Value Titanium Mineral Titanium dioxide occurs in nature predominantly as ilmenite and Highest Grade Highest Value Rarest scarcely as purely natural rutile TiO2 mineral TiO2 mineral TiO2 mineral ~95% TiO2 +$1,200/t 0.7Mt Mined 20171 50-55% TiO2 ~$200/t 2.0Mt Mined 20
Slide 19: Rutile – A Genuinely Scarce Commodity
Rutile – A Genuinely Scarce Commodity No high-grade rutile discoveries in over a decade… until now Global rutile supply/demand ‘000 TiO2 Units SUBSTANTIAL MARKET 1,200 SPACE FOR A NEW 1,000 RUTILE PRODUCER 800 Global supply of rutile in structural deficit 600 Mature mines with declining grades 400 G
Slide 20: Rutile’s Scarcity Means Limited Comparable Projects
Rutile’s Scarcity Means Limited Comparable Projects Two projects with the most similarities make up over 32%* of global rutile production Sierra Rutile (Sierra Leone) Kwale (Kenya) * 20% 12% * of world’s annual rutile production of world’s annual rutile production Assemblage – Current rutile resourc
Slide 21: Very Strong Rutile Market Fundamentals
Very Strong Rutile Market Fundamentals The natural rutile market has recently shifted to a supply deficit “ Historical and Forecast Rutile Pricing “Iluka’s sales constrained by $2,000 $1,800 $1,600 $1,400 $1,200 High Mid “ production in 2019” 1 US$/t Low $1,000 $800 $600 “Rutile demand remains stron
Slide 22: Huge Exploration Upside
Huge Exploration Upside Advanced Targets Significant number of untested targets across the Company’s very large ground package Regional exploration continues to identify new rutile prospects Majority of key prospects and targets are located near key infrastructure Huge exploration upside – large amo
Slide 23: Corporate Information
Corporate Information CORPORATE INFORMATION CAPITAL STRUCTURE Management team with a proven track record of success Shares on Issue 382,587,561 Mr Middlemas was a Senior Group Executive for Normandy Mining for more than ten years, which was Australia’s largest gold miner before merging with Newmont
Slide 24: 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 Limi
Slide 25: Sovereign Metals Limited
SOVEREIGN METALS LIMITED Sovereign Metals Limited | ASX : SVM T: +618 9322 6322 | F: +618 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427