Slide 1: Kathleen Valley Pre-Feasibility Study and Beyond
KATHLEEN VALLEY PRE-FEASIBILITY STUDY AND BEYOND ASX : LTR |2 December 2019
Slide 2: Important Information
Important Information Forward Looking Statements This Presentation may include statements that could be deemed “forward-looking The Information in this report that relates to Metallurgy for the Kathleen Valley Project is statements”. Although the Company believes the expectations expressed in such e
Slide 3: Project Overview
Project Overview Strong • NPV +$500M Financials • IRR +25% Kathleen Valley Lithium Project • LoM Free Cash +$1.9B Long Life • 26 Years • 50Mt Reserve • +6% Li2O Spodumene Concentrate • 76% recovery KALGOORLIE Significant • Resource upgrade PERTH Upside • Potential expansion with Buldania concurrent
Slide 4: Hard Rock Lithium Operations and Advanced Projects
Hard Rock Lithium Operations and Advanced Projects Western World | Spodumene Dominant | Tonnes x Grade | Li2O Only Kathleen Valley 2.70 A Globally Greenbushes (Talison/Tianqi) Significant 2.20 Resource Earl Grey (WES / SQM / Kidman) Li2O Grade % Whabouchi Pilgangoora 1.70 Mt Marion (Min (Pilbara Min
Slide 5: PFS Key Metrics: Open Pit/Lithium Only
PFS Key Metrics: Open Pit/Lithium Only Life of Mine 26 YEARS Total Free Cash Flow Payback Period +$1.9B ~4 YEARS Capex NPV OPEX2 $240M $507M1 $564/t conc. Excl. Ta credits IRR 25.1% Ave. SC6 Price3 Ave. Production US$690/t 2Mtpa ore 295Ktpa conc. Ave. Strip Ratio 7.7:1 1 8% (real) 2Operating costs i
Slide 6: Kathleen Valley Project - NPV Sensitivity Analysis
Kathleen Valley Project - NPV Sensitivity Analysis (A$M) A$507M Base Case Exchange Rate (+/- AUD:USD $0.08) 326.3 733.0 Spodumene Price (Roskill High and Low Case) 302.8 711.3 Operating Cost Flex (+/-15%) 343.3 670.8 Li Grade Flex (+/-10%) 343.4 670.7 Li Recoveries (65-80%) 270.1 593.2 Capital Cost
Slide 7: Payback Period and Cumulative Net Cashflow (After Tax)
Life of Mine Cash Flow Payback Period and Cumulative Net Cashflow (After Tax) 2,100 1,800 1,500 1,200 A$M 900 600 300 - (300) 2030 2047 2023 2024 2025 2026 2027 2028 2029 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2048 2049 2050 2051 Fiscal Year Cumulative net ca
Slide 8: Production is aligned to meet the forecast rise in lithium demand
PROJECT TIMELINE Life of Mine Production is aligned to meet the forecast rise in lithium demand Million Predicted Lithium Deficit Tonnes 6 5 LIFE OF KATHLEEN VALLEY MINE 4 26 YEARS Kathleen Valley 3 A globally significant 2 resource with the potential to help fill 1 future lithium deficit 0 2021 203
Slide 9: Maiden Ore Reserve of 50.4Mt @ 1.2% Li2O
Reserve Mineral Resource Estimate* – July 2019 Maiden Ore Reserve of Cut-off Resource Million Li2O Ta2O5 Li2O% Category Tonnes % (ppm) 50.4Mt @ 1.2% Li20 Measured 17.6 1.3 160 Indicated 42.2 1.3 140 0.5 Inferred 10.1 1.1 150 Sub-Total 69.9 1.3 150 Indicated 2.5 1.4 120 0.7 Inferred 2.5 1.3 110 Sub-T
Slide 10: Metallurgy and Flowsheet
Metallurgy And Flowsheet Key Outcomes • 6.1% Li2O concentrate • Predicted 76% recovery of Li2O • Chemical grade specifications achievable Next Steps • Optimisation of unit processes • Tantalum recovery • Variability testing 10
Slide 11: The Upside
The Upside N S PFS is a critical step towards the DFS and maximising future opportunities Resource Expansion Continuous, thick, high-grade Mt Mann Feeder 1 NW Extension Target mineralisation intersected well beyond Target the current Mineral Resource E W Concurrently Develop Underground Mine 2 Poten
Slide 12: Resource Update – Q1/Q2 2020
Resource Update – Q1/Q2 2020 Mineralisation intersected down dip and N >400m along strike of current resource S 55m @ 1.7% Li2O 29m @ 1.3% Li2O 64m @ 1.3% Li2O 16m @ 1.9% Li2O 25m @ 1.5% Li2O 12m @ 3.1% Li2O Drill hole Drill hole 200m (Assays Pending) Proposed hole 15,000 - 25,000m resource Targetin
Slide 13: Location: Well serviced and highly active mining region
Location Well serviced and highly active mining region Mt Keith Major Ni & Au Goldfields Mines Highway Kathleen Valley Bellevue Sealed Town of Airstrips Leinster Leinster Agnew Leinster Town Powerline Natural Gas Pipeline 13
Slide 14: Low Risk
Low Risk The only unencumbered spodumene resource in Australia • Low sovereign risk • 100% owned • Granted mining leases • Established mining region • Simple geology • Well funded (~$15m cash) • Early studies indicate: o Good quality water o Low environmental risk o No geotechnical issues 14
Slide 15: Next Steps
Next Steps Achievements in the last 15 months pave the way for future opportunities FURTHER STUDIES Mine Optimisation inc. MAIDEN MRE UPGRADED MRE RESOURCE underground; 21.2Mt @ 1.4% Li2O 74.9Mt @ 1.3% Li2O UPGRADE Metallurgy; Hydrology; Environmental and and 170ppm Ta2O5 and 140ppm Ta2O5 Land Acces
Slide 16: Investment Case
Investment Case PFS supports a long-life open-pit lithium mine 26 Year Mine Robust project economics Quality Existing, modern concentrate infrastructure Strategic Multiple opportunities development to enhance financial timeline metrics Maiden Ore Reserve of 50.4Mt @ 1.2% Li20 16
Slide 17: Corporate Snapshot
Leadership and Key Financials David Richards Tim Goyder Craig Williams Anthony Cipriano Steven Chadwick Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years • Discovered multi- • Executive Chairman
Slide 18: Thank You
THANK YOU For more information visit www.ltresources.com.au
Slide 19: Appendix 1
APPENDIX 1 Kathleen Valley Project Additional Information TEAMWORK 19
Slide 20: PFS v Scoping Study – Key Parameters and Assumptions
PFS v Scoping Study– Key Parameters And Assumptions Parameter Parameter Scoping Scoping General and Economic PFS Cost Assumptions PFS Study Study LOM average open pit mining Discount rate (real, post tax) 8% 8% $35.12 $37.72 costs ($/t ore processed) US$690/dmt LOM average processing cost Spodumene
Slide 21: Spodumene Concentrate (SC6) Forecast Pricing
Spodumene Concentrate (SC6) Forecast Pricing SC6 Prices Chemical Grade Spodumene Concentrate Forecast Prices - Related Arms 50% 50% Sensitivity Ranges Party* Length* Related Related US$ per tonne, Real, FOB Australia Party and Party and 950 50% Arms 50% Arms Length Length 900 US$ CIF US$ CIF US$ CIF
Slide 22: PFS – LoM Financials and Capital Expenditure
PFS – LoM Financials And Capital Expenditure Life of Mine Financials Capital Costs Summary A$M Main Area Capital (A$M) Revenues 7,185 Treatment Plant 76.2 Operating costs (3,563) Reagents & Plant Services 13.2 Infrastructure – general 41.2 Capital expenditure Mining 8.5 - pre-production (240.5) Cont
Slide 23: PFS – Operating Costs
PFS – Operating Costs Cash Opex (+/-25%) Process/G&A Opex (+/-25%) A$/dmt ore A$/dmt ore Op. Cost A$/dmt Cost Centre Proportion processed processed Mining 35.12 239.70 Mobile 0.32 1 Equipment Processing 18.20 124.20 Labour - 3.40 15 Processing Transport/ 12.18 83.10 Logistics Consumables 6.48 28 G&A
Slide 24: A$ Revenues and Net Cashflows (After Tax)
Life of Mine Cash Flow A$ Revenues and Net Cashflows (After Tax) 450 350 250 150 A$M 50 (50) (150) (250) 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Fiscal Year Revenue A$M Net cashflow after tax A$M 1 4
Slide 25: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE MRE Company Project Stage Information Source Mt Mt Mt Mt Grade ASX Announcement, 9 July 2019 - Liontown Kathleen https://www.ltresources.com.au/sites/de Development 69.9 2.5 2.5 74.9 1.3 fault/files/asx-
Slide 26: Exploration Target Parameters and Assumptions
Exploration Target Parameters and Assumptions Parameter KV Feeder Zone KV North West Rationale Combined strike length 1100m 400 of pegmatites Based on previous drilling and extrapolation of block model Average cumulative >18m >20m used in preparation of Mineral true width Resource Estimate (released
Slide 27: Appendix 2: Buldania Lithium Project
APPENDIX 2 Buldania Lithium Project (Liontown 100%) TEAMWORK Lorem ipsum dolor sit amet, consectetur adipiscing elit. Morbi eget dolor sit amet. 27
Slide 28: Buldania: Significant lithium discovery
Project Overview Significant lithium discovery Buldania is Located in a 1 Outcropping, fresh, spodumene- Lithium-Rich Mineral Province related mineralisation Mineralisation at Anna extended to the 2 SE under shallow cover – strike length >1.4km and open Similar geology to the Mt Marion and 3 Bald Hi
Slide 29: Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O
Resource Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The completion of the MRE complements flagship Kathleen Valley Lithium Project 29
Slide 30: Level 2, 1292 Hay St, West Perth WA
Level 2, 1292 Hay St West Perth WA 6005 +61 8 9322 7431 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited