Perpetual Resources Ltd. · ASX:PEC
Perpetual Resources — Investor Presentation (March 2021)
36 slides from Perpetual Resources's investor presentation, Mar 30, 2021
Slide 1: Sand. The World's next boom commodity.
Sand. The World’s next boom commodity. ASX: PEC Corporate Presentation, March 2021
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about Perpetual Resources Ltd (Perpetual) and is current as of 29th March 2021. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all of the information a prospective investor
Slide 3: Competent Persons Statement
Competent Persons Statement The information in this report that relates to the March 2020 Exploration information for the Beharra Project is based on information compiled and fairly represented by Mr Colin Ross Hastings, who is a Member of the Australasian Institute of Mining and Metallurgy and cons
Slide 4: Perpetual Resources: Investment Highlights
Perpetual Resources: Investment Highlights Beharra Project Base case 100% owner of Highly supportive Led by an Post-Tax NPV* $236m the Beharra high commodity market experienced team grade silica sand backdrop provides of Board and Post-Tax IRR* 77% project strong tailwinds Executives Production 1.5m
Slide 5: Corporate Snapshot
Corporate Snapshot Julian Babarczy Robert Benussi ASX Code PEC Executive Chairman Managing Director Share Price (as at 26 March 2021) $0.083 Julian Babarczy is a finance industry professional, Robert Benussi has extensive experience in finance, having worked at Regal Funds Management for the past co
Slide 6: Project Portfolio
4 Track/Road Highway Project Portfolio Railway PEC Hub Three discrete Project Hubs prospective for high purity silica and construction sand products – all located proximal to established infrastructure. Beharra1 • Maiden Mineral Reserve Estimate announced in March 2021 (48mt at 99.6% SiO2, 276ppm Fe
Slide 7: We give such little thought to it... sand and gravel build the foundations
“We give such little thought to it… But sand and gravel build the foundations of our economies.” United Nations Report on Sand and Sustainability, 2019 7
Slide 8: Sand facts
Sand facts “The global rate of sand use — which has tripled over the past two decades partially as “We just think a result of surging urbanization — that sand is far exceeds the natural rate at everywhere. We never “For construction which sand is being replenished thought we would run alone, the wor
Slide 9: Silica Sand: An overview
Silica Sand: An overview Most sand deposits are unsuitable for industrial applications due to chemical composition, grain size and shape, impurity profile and access to an economic logistics solution. What is Silica Sand Silica Sand Properties Silica Sand Impurities Geology Importance Logistics Impo
Slide 10: What is Silica Sand Used For?
What is Silica Sand Used For? Glass - Architectural - Smartphones - Tablets - Automotive - Fiberglass - Container Packaging Building products - Quarts surfaces - Roofing shingles Foundry sands - Automotive & Manufacturing - Into Foundry sand markets Fillers & Extenders Chemicals Construction Sands 1
Slide 11: Relative Size of End Markets
Relative Size of Other Abrasives 4% End Markets Filtration 10% 5% • The global glass and the foundry sand industries are the two largest and also among the highest growth • These markets are Perpetual’s focus Hydraulic Glass • Initial beneficiation test work has confirmed Beharra Fracturing Industry
Slide 12: The World Needs More Silica Sand
The World Needs More Silica Sand Global demand for industrial silica This demand is driven by industrial Silica sand is environmentally sand is growing at 5% per year and uses, urbanisation of the developing sustainable, recyclable and has many is expected to continue to grow at world, higher grade
Slide 13: Why is sand in short supply?
Why is sand in We Are Running short supply? Out of Sand The Economist The Good Stuff A global sand crisis no A sand one is talking about it shortage? 13 Vince Beiser, TedX CNBC
Slide 14: Asia Pacific: The fastest growing silica sand market in the world
Asia Pacific: The fastest growing silica sand market in the world APAC Silica Sand Market Value (US$m) APAC Sales Volume (mtpa) 9,000 180 8,000 40mtpa of extra high 160 quality silica sand is Market growth of needed in 7,000 US$3b is up for APAC grabs 6,000 140 5,000 120 4,000 3,000 100 2015 2016 20
Slide 15: Beharra is targeting the largest silica sand markets in APAC
Beharra is targeting the largest silica sand markets in APAC APAC Silica Sand Market (by End Use) APAC Sales Volume (by End Use) 70.00 4% 5% 10% 52.50 37% Our focus 35.00 18% 17.50 26% '- 2015 2020 2021 2022 2023 2024 2025 2026 Glass Industry Foundry Hydraulic Fracturing Filtration Abrasives Others
Slide 16: Structural change in price has been underway for a decade
Structural change in price has been underway for a decade US$ Price/ton for 150-200ppm Fe2O3 Silica Sand US$ Price/ton for 200-300ppm Fe2O3 Silica Sand 220 90 180 72.5 140 55 100 37.5 60 20 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Japan Kore
Slide 17: Silica Sand Seaborne Trade
Silica Sand Japanese Silica Imports Korean Silica Imports Seaborne Trade Vietnam 10% Others 15% Others • Total exports of high quality silica sand from Australia are 20% Vietnam estimated to be around 5 million tons per annum 17% • 70% of Japanese & 68% of South Korean silica imports are Australia A
Slide 18: Beharra: High Grade Silica Sands
4 Track/Road Highway Beharra: High Grade Silica Sands Railway PEC Tenement LOCATION Approximately 100km south of Geraldton, comprising a north- south striking exploration licence covering an area of about 49 km2 SCALE The project lies within the northern part of the Perth Basin and contains a 13km s
Slide 19: Beharra: Compelling Project Economics
Beharra: Compelling Project Economics Mid West region’s Optionality around Potential for very Beharra Project Base case lowest impurity end product high margins and and highest specifications allows scope for project Post-Tax NPV* $236m quality product significant revenue optimization and Post-Tax I
Slide 20: Beharra: A leading Regional Silica Sand Project
Beharra: A leading Regional Silica Sand Project • Lowest known impurity project in Mid West Region • Simple and sustainable mining Regional regulations • Simple metallurgy restrict traditional • Standard flow sheet & processing supply and support demand and higher pricing • Existing road network • S
Slide 21: White Sand: Mother Nature's Gift
White Sand: Mother Nature’s Gift • Beharra hosts predominantly high purity white (pale) sands, which suggests a higher revenue per ton is potentially achievable for Beharra silica sand • Geological model predicted PEC would encounter Beharra White Sand a high percentage of white sands compared to Be
Slide 22: Project Reserves/Resources
4 Track/Road Highway Project Reserves/Resources Railway PEC Hub Beharra Indicated Mineral Resource February 20211 Sand Volume (Mm3) Density Tonnes (Mt) SiO2% AI2O3% TiO2% Fe2O3% LOI% Yellow 8.1 1.64 13.2 98.2 0.50 0.23 0.23 0.51 White 76.7 1.64 125.8 98.6 0.41 0.36 0.23 0.21 Total 84.8 1.64 139.0 98
Slide 23: Project Geology
Project Geology Cross-section 6746195N • Simple geology with clearly defined horizons of white and yellow sand • White sand is pervasive and represents >90% of the Beharra Resource Cross-section 6745715N • Results in straight forward mining operations with minimal operational >12m Intersection compl
Slide 24: Production Process
Production Process • Simple flow sheet design due to straight forward metallurgy • Packaged plant sweet spot - 250t per hour planned Typical sand plant showing various product streams being produced 24 Note: For further information please refer to ASX announcement titled, “Exceptional Metallurgical
Slide 25: Standout Metallurgy
Standout Metallurgy Beharra has demonstrated, through a rigorous bulk sample metallurgical program, that it can beneficiate to the lowest known impurity profile in the Mid West region of WA, suggesting potential for premium pricing and greater market acceptance. Comparison of Key Attributes of Behar
Slide 26: Tier 1 Infrastructure Regional
Tier 1 Infrastructure Regional Beharra is one hour by high quality road to Geraldton Port, underpinning the economic viability of Beharra. RAV7.3 – PBS Super Triple 26
Slide 27: Tier 1 Infrastructure In Practise
Tier 1 Infrastructure In Practise MINE SITE BRAND HW Y GERALDTON PORT INTERSECTION Sealed highway to Internal haul road Narngalu Bulk to Mt Adams Rd Storage Facility MT ADAMS RD NARNGALU Short haul to Geraldton Port for Mt Adams Rd connects APAC export directly to the sealed Brand Highway 27
Slide 28: Project Economics
Project Economics Item (Base Case) Wet Processing Plant Cost (A$) $19.1m Perpetual’s strategy is to operate with maximum flexibility, aiming to be able to respond to the expected positive On Site Infrastructure changes in market demand. As a result, a flexible cost base - Buildings & Amenities is as
Slide 29: Beharra: Offtake Discussions
Beharra: Offtake Discussions Yaoguo Solar Science & Technology Co. • MOU for offtake signed in October 2020 covering indicative interest to purchase 250,000 tons per annum of Beharra silica sand • Yaoguo a significant purchaser of high-grade silica sand and potential distributor of additional tons t
Slide 30: Project Economics: Detailed Overview
Project Economics: Detailed Overview Beharra commands a compelling mining project investment case. NPV NPV Geared* IRR Geared* IRR Ungeared Ungeared $236m $231m 77% 55% 30 *Assumes 40% gearing Note: For further information and full detail on all assumptions, please refer to ASX announcement titled,
Slide 31: Future Opportunities for Enhancement
Future Opportunities for Enhancement Potential simplifying of the Direct port metallurgical access as part of flowsheet to lower Freight Mid West Ports capital and alternatives expansion project operating costs such as Road + Rail or Rail Campaign only mining and processing Selective Dry mining proc
Slide 32: Project Study Team and Stakeholders Beharra Project
Project Study Team and Stakeholders Beharra Project 32
Slide 33: Project Funding
Project Indicative Funding Split Funding 40% Perpetual anticipates strong interest in Debt debt financing for up to 40% of the total Beharra Project capital costs, with the remainder anticipated to be funded by equity and/or strategic investor interest. Key to securing the debt will be further engag
Slide 34: Beharra Development Timeline
Beharra Development Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2021 2021 2021 2022 2022 2022 2022 PFS Ongoing Metallurgical Testwork Definitive Feasibility Study Mining License Application Environmental Approvals Decision to Fund Construction Commissioning Production Ramp Up 34
Slide 35: Conclusion
Conclusion The Mid West Region’s Strong project Located on doorstep Strong study team Experienced Board and Rapidly advancing lowest impurity silica economics to APAC, the world’s and consultants Leadership Team project sand project fastest growing market • The Mid-West Region’s • 1.5mtpa silica san
Slide 36: Julian Babarczy Executive Chairman Robert Benussi
Julian Babarczy Executive Chairman Robert Benussi Managing Director robert.b@pecsilica.com +61 410 415 335 Perpetual Resources Ltd Level 8, 84 Pitt Street, Sydney NSW, 2000 www.perpetualresourceslimited.com.au 36
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