Vital Metals Ltd · ASX:VML
Vital Metals — Investor Presentation (October 2021)
36 slides from Vital Metals's investor presentation, Oct 5, 2021
Slide 1: Becoming Canada's First Rare Earths Producer
For personal use only Becoming Canada’s First Rare Earths Producer March 2021 Investor Presentation October, 2021
Slide 2: Disclaimer
Disclaimer For personal use only This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward-looking statements are all statements other than statements of historical fact included in this
Slide 3: Guaranteeing Feedstock to the Rare Earths' Supply Chain
For personal use only Guaranteeing Feedstock to the Rare Earths’ Supply Chain 3 Investor Presentation October 2021
Slide 4: Highlights
Vital is Canada’s first RE producer building the capability to supply both light and heavy rare earths in the RE Supply Chain For personal use only Highlights World class REO Development Team - ex Lynas Corporation Ltd 3 World Class Rare Earth projects • Nechalacho (Canada): 95mt at 1.46% TREO • Kip
Slide 5: Company Overview
Company Overview For personal use only Capital Structure ASX Code VML Shares on Issue 4,165m Options on Issue 432m Share Price (as 23 September 2021) $0.06 VML Share Price Performance Market Capitalisation $254m Cash (30 June 2021) $34.9m Board and Management Geoff Atkins Managing Director Evan Cran
Slide 6: Vital's leaders are world experts in developing rare earth projects
Vital’s leaders are world experts in developing rare earth projects For personal use only Senior Management GEOFF ATKINS TONY HADLEY MATHEW EDLER RAY ANGUELOV Managing Director Chief Operating Officer Executive VP Corporate Canada Operations Development Manager 25 years of project and corporate Over
Slide 7: Emissions legislations and international co-operation is driving electric vehicle demand
Emissions legislations and international co-operation is driving electric vehicle demand For personal use only Global Critical Minerals Initiatives USA: California ICE Spain: Sales ban Japan: ICE sales UK: Sales ban by China: Hainan Provence sales ban by 2035 by 2040 ban by ~2035 2030 ICE sales ban
Slide 8: The drive towards vehicle electrification is dependant on electric motors and their rare earths
The drive towards vehicle electrification is dependant on electric motors and their rare earths For personal use only The Link between EVs and Rare Earths 8 Investor Presentation October 2021 Source: UBS Electric Car Teardown May 2017
Slide 9: Vital's Rare Earth Supply Chain
Vital’s Canada base can supply to customers in Europe, North America and Asia For personal use only Vital’s Rare Earth Supply Chain 9 Investor Presentation October 2021
Slide 10: Vital will provide a one stop shop for the rare earth supply chain
Vital will provide a one stop shop for the rare earth supply chain, supply both light and heavy rare earths For personal use only Downstream Rare Earth Supply Chain Rare Earth Carbonate NORTH T Production REETEC Through its extraction facilities, Vital will produce a mixed rare earth product of guar
Slide 11: Vital's 3 Stage Development Strategy
Vital’s development strategy will ensure Vital is able to guarantee the supply of the full suite of rare earths to the global supply chain For personal use only Vital’s 3 Stage Development Strategy Stage 1: Foundations Project Start-up: Nechalacho North T • Demonstrate the ability to supply rare ear
Slide 12: Implementation Stage 1: Building the Foundations to Success
Implementation Stage 1: Building the Foundations to Success For personal use only > Nechalacho North T > Mining Operations commenced April 2021 > Product bagged and ready to ship for further processing > Expansion to be funded from the sale of Mixed RE Carbonate 12 Investor Presentation October 2021
Slide 13: The Nechalacho project consists of two distinct zones
The Nechalacho project consists of two distinct zones, the T Zone and Tardiff Zone For personal use only 13 Investor Presentation October 2021
Slide 14: Mining and sorting operations are underway
Mining and sorting operations are underway For personal use only Site Status 14 Investor Presentation October 2021
Slide 15: Nechalacho North T Operations are on track to deliver product to Saskatoon
Nechalacho North T Operations are on track to deliver product to Saskatoon for production of RE Carbonate For personal use only Campaign mining operations nearing completion • Over 30,000t of ore has been mined and stockpiled from the North T pit • Mining has exposed high grade ore zones which were
Slide 16: The North T Zone is one of the world's highest grade rare earth deposits
The North T Zone is one of the world’s highest grade rare earth deposits making it ideal for start-up For personal use only North T Resource Resource Type Kt LREO (%) Pr6O11 (%) Nd2O3 (%) Measured 68 9.6% 0.5% 1.8% Indicated 33 7.8% 0.4% 1.5% Inferred 4 5.8% 0.3% 1.1% Total 105 8.9% 0.5% 1.6% Light
Slide 17: Implementation Stage 2: Expansion and Growth
For personal use only Implementation Stage 2: Expansion and Growth > Long term growth and expansion through the development of Tardiff and Wigu Hill projects > Production targeted to commence 2025 > Expansion to be funded from the balance and debt funding 17 Investor Presentation October 2021
Slide 18: The Nechalacho project contains over 1.3Mt of contained rare earths
The Nechalacho project contains over 1.3Mt of contained rare earths, providing opportunities for significant expansion For personal use only Nechalacho - Tardiff Deposit ZONE MT TREO (%) HREO (%) NdPr:TREO (%) Measured 2.914 1.468% 0.142% 24.9% Indicated 14.662 1.508% 0.161% 24.9% Inferred 77.159 1.
Slide 19: Expansion operations will be focussed on Tardiff Zones 1, and 3
Expansion operations will be focussed on Tardiff Zones 1, 2 and 3 For personal use only 19 Investor Presentation October 2021
Slide 20: Recent drilling at the Tardiff Zones has identified significant intercepts
Recent drilling at the Tardiff Zones have identified significant intercepts with all three zones open For personal use only High grade intercepts include: • 31.8m @ 4.35% TREO including 6.9m @ 13.78% TREO • 13m @ 3.12% TREO including 4m @ 7.06% TREO • 25.1m @ 3.03% TREO • 25.8m @ 2.56% TREO • 40m @
Slide 21: Tardiff zone mineralogy will allow rapid development
Tardiff zone mineralogy will allow rapid development by utilising the same plant and equipment as North T For personal use only Tardiff Zone Development of the Tardiff Zone will be leveraged off the North T project • The Tardiff Zone contains red basnaesite crystals similar to the North T Deposit (r
Slide 22: The Wigu Hill Project (90%) is targeted as second rare earth project
The Wigu Hill Project (90%) is targeted as VML’s second rare earth project to enter production For personal use only Excellent Infrastructure • Rail and power within 10km of project Previous Owners spent US$10m+ • Acquired rights for US$1m in 2018 Potential to be a large world class resource • Curre
Slide 23: Twiga deposit contains large, discrete bastnaesite crystals
Similar to Nechalacho’s T Zone the Twiga deposit contains large, discrete bastnaesite crystals For personal use only 23 Investor Presentation October 2021
Slide 24: Drilling completed on development targets providing potential for expansion
Drilling completed on 2 of 8 development targets providing the potential for expansion of the resource For personal use only Wigu Hill contains a historical NI43-101 Resource of 3.3M @ 2.6%REO* ZONE MT TREO (%) LA2O3 % CEO2 % PR6O11 (%) ND2O3 (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5
Slide 25: Implementation Stage 3: Heavy Rare Earth Production
For personal use only Implementation Stage 3: Heavy Rare Earth Production > Located in Quebec, Canada > Definitive Feasibility Study completed in 2013, contemplating 15yr mine life > High percentage of heavy rare earths > Will provide Vital the capability to supply both light and heavy rare earths i
Slide 26: The Kipawa project lies 50km east of Temiscaming
The Kipawa project lies 50km east of the town of Temiscaming and 140km south of Rouyn-Noranda Quebec For personal use only 26 Investor Presentation October 2021
Slide 27: Kipawa is a heavy rare earth project
Kipawa is a heavy rare earth project, which will complement our existing LREE deposits For personal use only Mineralisation Eudialyte: Y-Fe-Zr Source of HREE and Zr Yttro-Titanite/Mosandrite: Na-Ca-Ti silicate Source of HREE Britholite: Ca-Y-Fe silico-phosphate Source of HREE 27 Investor Presentatio
Slide 28: High distribution of HRE at Kipawa could make VML first supplier outside China
The high distribution of HRE at Kipawa has the potential to make VML the first suppler of LRE and HRE outside of China For personal use only Rare Earth Distribution $/kg North T1 Tardiff1 Kipawa2 • The addition of Kipawa into Vital’s project portfolio will (23 Sep 2021)3 % REO $/kg % REO $/kg % REO
Slide 29: The Reserves contains an estimated 15+ years of mine life
The Reserves contains an estimated 15+ years of mine life For personal use only Resource and Reserves* ZONE Classification Tones TREO (%) ZrO2 Measured 6,024,000 0.529 0.959 Indicated 7,790,000 0.387 0.842 Eudialyte Inferred 1,678,000 0.312 0.710 Total 15,492,000 0.434 0.873 Classification Tones TRE
Slide 30: Rare Earth Carbonate Production
Rare Earth Carbonate Production Building the Foundations to Success For personal use only > Saskatoon Extraction Plant Under Construction > Procurement of all key equipment complete > First feed on track for end of 2021 > Expansion to be funded from the sale of Mixed RE Carbonate 30 Investor Present
Slide 31: Extraction Plant on track to accept first feed by end of 2021
Vital’s rare earth Extraction Plant is on track to accept first feed by the end of 2021 For personal use only Saskatoon Plant Update • Construction is underway on Vital’s rare earth extraction Plant in Saskatoon, Saskatchewan, Canada • All major processing equipment procured within budget with agree
Slide 32: Plant initial capacity of 1,000t REO per year, to double within 2 years
The Plant will have an initial capacity of 1,000t REO (ex-Cerium) per year with to double within 2 years For personal use only 32 Investor Presentation October 2021
Slide 33: Equipment scaled for expanded operations reducing future capex
The majority of equipment has been scaled for expanded operations reducing future capex For personal use only RE Extraction Plant Construction and Operation Term Sheet SRC Rare Earth Processing Facility • All equipment procured has been scaled for expanded • The Government of Saskatchewan and SRC an
Slide 34: Definitive Off-Take Agreement signed with REEtec
A definitive Off-Take Agreement has been signed with REEtec for the supply of a base 1,000t REO (ex-Cerium) For personal use only Off-Take Agreement • Definitive Off-Take Agreement signed with REEtec for a Element REEtec (ex-Cerium) Market Price (as Market Price (as base of 1,000t REO (ex-Cerium) pe
Slide 35: Conclusion
Vital is be capable of supplying both heavy and light rare earths to rare earth supply chains For personal use only Conclusion Work Class Rare earth Development Team - ex Lynas Corporation • Lead by Vital Metals MD Geoff Atkins 3 World Class Projects • Nechalacho REO Project (Canada): 95Mt at 1.46%
Slide 36: Contact us
For personal use only Contact us Geoff Atkins Managing Director vital@vitalmetals.com.au +61 2 8823 3100 36 Investor Presentation October 2021