Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (November 2016)
20 slides from Sovereign Metals's investor presentation, November 2016
Slide 1: Graphite Supply Chain
GRAPHITE SUPPLY CHAIN NOVEMBER 2016 ASX:SVM
Slide 2: Malawi Flake: A World-Class Graphite Opportunity
MALAWI FLAKE A WORLD-CLASS GRAPHITE OPPORTUNITY. The Malawi Flake Graphite Project is located in the heart of the East African Graphite Province which is renowned for producing the world’s best quality flake graphite concentrates. Access to enviable infrastructure is available with Malingunde locate
Slide 3: What Is Saprolite and What Are Its Benefits?
WHAT IS SAPROLITE AND WHAT ARE ITS BENEFITS? Saprolite forms in areas that have been subject to intense tropical weathering conditions over millions of years Historically, small Madagascan saprolite deposits have been a major global source of graphite since the early-1900’s Many continental East-Afr
Slide 4: Dominant Ground Position in the World-Class East African Flake Graphite Province
DOMINANT GROUND POSITION IN THE WORLD-CLASS EAST AFRICAN FLAKE GRAPHITE PROVINCE.
Slide 5: Enviable Infrastructure
ENVIABLE INFRASTRUCTURE. MALINGUNDE IS LOCATED WITHIN 20KM OF MALAWI’S CAPITAL, LILONGWE. RAIL, POWER & PLENTIFUL FRESH WATER ARE ALL AVAILABLE. i ck Pane 60d000me Kamuzu QS Powerline International Rail to Nacala Port Airport National Highway Secondary Road Electricity P River Sub-Station * ‘Tenemen
Slide 6: Malingunde Saprolite-Hosted Graphite Deposit
MALINGUNDE SAPROLITE-HOSTED GRAPHITE DEPOSIT. High-grade, near surface flake graphite has been defined by hand auger drilling over 3.4km strike length with cumulative across strike widths averaging about 140m. Diamond drilling assays have confirmed that high grades of saprolite continue to vertical
Slide 7: Recent Drilling Confirms the Robust and Coherent Nature of the Deposit
RECENT DRILLING CONFIRMS THE ROBUST AND COHERENT NATURE OF THE DEPOSIT. DIAMOND DRILL RESULTS INCLUDE: MGDD0007: 15m @ 19.7% TGC (within broader zone of 25m @ 15.1% TGC) MGDD0006: 12m @ 17.1% TGC (within broader zone of 20m @ 13.7% TGC) MGDD0003: 13m @ 10.7% TGC (within broader zone of 25m @ 8.5% TG
Slide 8: Wide and Vertically Thick Mineralisation Profile
WIDE AND VERTICALLY THICK MINERALISATION PROFILE. Recent PQ diamond drilling shows vertical saprolite depths averaging 20-30m. Thickness & consistency of saprolite indicates substantial overall tonnage potential. The Malingunde deposit is large and high grade, averaging about ~ 8% TGC in hand auger
Slide 9: Soft, Friable Saprolite Material Can Be Easily Disaggregated
SOFT, FRIABLE SAPROLITE MATERIAL CAN BE EASILY DISAGGREGATED.
Slide 10: Initial Metallurgy Results
INITIAL METALLURGY RESULTS. Results from the first flotation test on this material showed: Combined concentrate across all flake size fractions grading 97.3% C(t). ~50% of the concentrate in the jumbo and large size fractions (i.e. +149µm). The process flowsheet is very simple and uses a scrubber (s
Slide 11: Malingunde – A Unique Flake Graphite Deposit
MALINGUNDE – A UNIQUE FLAKE GRAPHITE DEPOSIT. Excellent quality concentrate produced by a simple flowsheet in the first laboratory flotation test highlights the metallurgical & processing simplicity. Thick and consistent preserved saprolite profile – large tonnage potential. Free-dig mining and very
Slide 12: Forward Plan and News Flow for Malingunde
FORWARD PLAN AND NEWS FLOW 2016 2017 FOR MALINGUNDE. O N D J F M A M J Diamond drilling programme complete, vertical DIAMOND thicknesses of saprolite-hosted graphite DRILLING mineralisation confirmed. Further assays pending. Continue to optimise flowsheet, followed by Ongoing METALLURGY production o
Slide 13: Market Information
MARKET INFORMATION. ASX : SVM SHARE PRICE MOVEMENT CAPITAL STRUCTURE Current Shares on Issue * 217,329,083 $1M 0.16 5 Unlisted Options PLACEMENT TO MAJOR ($0.10 to $0.47) 12,916,667 INSTITUTIONAL FUND 0.14 Performance Rights 1,400,000 4 Un-Diluted Market $4M A$27.1 m 0.12 PLACEMENT TO Capitalisation
Slide 14: Massive Valuation Upside
MASSIVE VALUATION UPSIDE. Undiluted Market Capitalisation $940m SIGNIFICANT NEWSFLOW AHEAD – RESOURCE AND SCOPING STUDY DUE Q1 2017 $285m $70.7m $48.5m $40.0m $27.1m COMPANY SVM VRC BKT KNL MNS SYR (ASX CODE) Resource Scoping Study Feasibility Development Country Malawi Tanzania Tanzania Tanzania Ta
Slide 15: Malawi – Stable and Mining Friendly
MALAWI – STABLE AND MINING FRIENDLY. GOVERNMENT HIGHLY POPULATION GDP/CAPITA SUPPORTIVE OF 17.2M US$381 MINING CORPORATE MINING ROYALTY STABLE DEMOCRATIC TAX RATE 30% RATE IS 5% REPUBLIC Source: The World Bank (2015 GDP and population)
Slide 16: Sovereign Metals Significant Competitive Advantage Versus Peers
SOVEREIGN METALS SIGNIFICANT COMPETITIVE ADVANTAGE VERSUS PEERS. TARGETING A HIGH QUALITY, LOW COST NATURAL FLAKE GRAPHITE OPERATION AT MALINGUNDE, MALAWI. QUALITY OPEX CAPEX INFRASTRUCTURE High-grade deposit Free dig with low No crushing or Enviable access to strip ratio primary grinding ex
Slide 17: Competent Persons Statement & Disclaimer
COMPETENT PERSONS STATEMENT & DISCLAIMER. COMPETENT PERSONS STATEMENT The information in this report that relates to Malingunde Exploration Results is extracted from the reports dated 29 August 2016, 5 September 2016, 12 October 2016 and 26 October 2016. These reports are available to view on www.so
Slide 18: Management Team with a Proven Track Record of Success
MANAGEMENT TEAM WITH A PROVEN TRACK RECORD OF SUCCESS. DR JULIAN COLLIN DAVY DOMINIC ALLEN IAN MIDDLEMAS MATTHEW WHEELER STEPHENS Managing Exploration Manager - Business Chairman Technical Manager Director Malawi Development Manager Mr Middlemas is a Dr Stephens is a Mr Wheeler is a Mr Davy is a Geo
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Slide 20: Sovereign Metals Limited
Sovereign Metals Limited | ASX : SVM T: +61 8 9322 6322 | F: +61 8 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, BGC Centre, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427 FOLLOW US
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