Liontown Limited · ASX:LTR
Liontown — Investor Presentation (June 2019)
30 slides from Liontown's investor presentation, Jun 4, 2019
Slide 1: A Future Australian Lithium Producer
A FUTURE AUSTRALIAN LITHIUM PRODUCER RESOURCES RISING STARS – GOLD COAST JUNE 2019 | ASX : LTR 1
Slide 2: Important Information
Important Information Forward Looking Statements Project is extracted from the ASX announcement “Highly encouraging results from initial metallurgical test work at the Kathleen Valley Lithium-Tantalum Project, WA” This Presentation may include statements that could be deemed “forward-looking release
Slide 3: Kathleen Valley Lithium Project
Kathleen Valley Lithium Project Kathleen Valley Project: Progressing towards a new WA lithium mine Buldania Project: Advancing a second lithium discovery to a maiden resource estimate KALGOORLIE Located in established, well serviced mining regions and backed by strong PERTH 2 state government suppor
Slide 4: Kathleen Valley Lithium Project
PERTH KATHLEEN VALLEY LITHIUM PROJECT 4
Slide 5: Location, Infrastructure, Grade and Growth
Location , Infrastructure, Grade and Growth + MAIDEN RESOURCE Exploration Target of 21.2Mt @ 1.4% Li2O 19-31Mt @ 1.2-1.5% Li2O* and 170ppm Ta2O5 Updated MRE due early July 2019 Scoping Study on maiden MRE confirms potential for commercially robust mine Conventional open pit mining and processing Con
Slide 6: Resource Expansion Drilling Adding Further Value
Resource Expansion Drilling RESOURCE GROWTH Adding Further Value • ~23,000m RC drill program completed H1 2019 • Thick (>45m), high grade, “feeder” 31m @ 1.7% Li2O zone discovered by latest drilling. 45m @ 1.7% Li2O NE Section New intersections include: 43m @ 1.7% Li2O ✓ 90m @ 1.3% Li2O from 209m in
Slide 7: Latest drilling extends mineralisation down dip
Latest drilling extends mineralisation down dip 9m @ 1.8% Li2O 5m @ 1.7% Li2O 8m @ 1.4% Li2O 12m @ 1.4% Li2O 10m @ 1.8% Li2O incl. 7m @ 2.2% Li2O Conceptual Conceptualopen openpit pitbased basedon on 9m @ 1.7% Li2O maiden maidenresource resourceand andscoping scoping 13m @ 1.3% Li2O study study 11m
Slide 8: …and along strike
………. and along strike 15m @ 1.1% Li2O 12m @ 1.3% Li2O 11m @ 1.7% Li2O incl. 5m @ 2.1% Li2O incl. 5m @ 2.4% Li2O Conceptual Conceptualopen openpit pitbased basedon on 6m @ 1.5% Li2O maiden maidenresource resourceand andscoping scoping study study 13m @ 1.1% Li2O 9m @ 1.4% Li2O 20m @ 1.5% Li2O incl. 6
Slide 9: Building on previous results included in 2018 MRE
Building on previous results included in 2018 MRE 10m @ 1.6% Li2O 15m @ 1.1% Li2O incl. 5m @ 2.0% Li2O incl. 2m @ 2.4% Li2O 3m @ 1.5% Li2O 18m @ 1.5% Li2O incl. 6m @ 2.3% Li2O 10.5m @ 1.3% Li2O incl. 5m @ 2.0% Li2O 6m @ 1.6% Li2O incl. 4m @ 1.9% Li2O 6m @ 2.1% Li2O 21m @ 1.9% Li2O 5m @ 1.2% Li2O 7m
Slide 10: Scoping Study on maiden MRE supports potential standalone operation
Scoping Study on maiden MRE supports potential to develop a standalone Lithium Mining and Processing Operation BASE CASE 2Mtpa (Li & Ta) NPV(8%, real, post tax) A$421M (Range of A$316 to A$526M) IRR 38% PAYBACK <3 years Open Pits MINE LIFE 9 years AVERAGE LOM OPEX ~A$428/t conc. (net of Ta credits)
Slide 11: Financial Sensitivity: Robust Project
Financial Sensitivity Robust Project Kathleen Valley Project - NPV Sensitivity Analysis (A$M) A$421M Base Case Spodumene Base Case Price (US$550-750/t) 253 588 Exchange Rate (AUDUSD$0.80-0.64) 301 571 Li Grade Flex (+/-10%) 323 518 Operating Cost Flex (+/-15%) 331 510 Li Recoveries (74-84%) 358 481
Slide 12: Cash Flow Profile: <3 Year Payback Period
Cash Flow Profile = <3 Year Payback Period Average net cash flows >A$100mpa (After Tax) 1,000 A$M 800 Scoping study 600 suggests Life of Mine free 400 cash flow of 200 ~A$762M - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 (200) Revenue A$m (400) Net cashflow after tax A$m Cumulative net cashflow after tax A$m 12
Slide 13: Metallurgy and Flowsheet
METALLURGY AND Preliminary Test Work Confirms FLOWSHEET a Saleable Li2O Concentrate Can Be Produced KEY OUTCOMES • 5.9% Li2O from DMS conc. • 36% mass rejection from 2-stage DMS • 5.5% Li2O from flotation • Low iron (<0.5% Fe2O3) • Predicted 79% Li2O recovery • Preliminary Ta2O5 conc. FEASIBILITY-LE
Slide 14: High Grade Compared With Most Peers - Plus Potential to Grow
High Grade Compared With Most Peers - Plus Potential to Grow Hard Rock Lithium Projects 0-100Mt, Western World - Spodumene Dominant Tonnes x Grade 1.7 KATHLEEN KATHLEEN VALLEY 1.6 VALLEY MRE Whabouchi MRE + ET* 1.5 1.4 Finnis / Bynoe Mt Marion 1.3 James Bay Mt Caitlin Li2O % 1.2 La Corne Piedmont 1.
Slide 15: Kathleen Valley Investment Case
KATHLEEN VALLEY INVESTMENT CASE Updated MRE due July 2019 Strong focus on optimising recoveries– further test work in progress Robust, high grade maiden resource Further feasibility studies ongoing First world location and expertise Active, well serviced mining region Conventional mining and process
Slide 16: Buldania Lithium Project
PERTH BULDANIA LITHIUM PROJECT 16
Slide 17: Buldania is Located in a Lithium-Rich Mineral Province
Buldania is Located in a Lithium-Rich Mineral Province Outcropping, fresh, spodumene- related mineralisation Mineralisation at Anna extended to the SE under shallow cover – strike length >1.3km and open Similar geology to the Mt Marion and Bald Hill lithium deposits (71Mt and 26Mt respectively) Good
Slide 18: Large Lithium Mineralised Pegmatite Defined at the Anna Prospect
Large Lithium (Spodumene) Mineralisation fresh from surface Mineralised Pegmatite and open along strike and at depth Defined at the Anna Prospect 13m @ 1.0% Li2O 29m @ 1.3% Li2O incl. 9m @ 1.7% Li2O 25m @ 1.2% Li2O Drill section incl. 5m @ 2.0% Li2O 32m @ 1.1% Li2O incl. 9m @ 1.3% Li2O 58m @ 1.2% Li
Slide 19: Drilling Extends Mineralisation At Anna To South East
Drilling Extends Mineralisation At Anna To South East – System Remains Open NW Anna Long Section (Looking NE) SE 30m @ 1.4% Li2O 39m @ 1.6% Li2O 14m @ 1.7% Li2O incl. 9m @ 1.6% Li2O incl. 13m @ 2.1% Li2O incl. 11m @ 2.0% Li2O 13m @ 1.0% Li2O 32m @ 1.1% Li2O incl. 9m @ 1.3% Li2O 25m @ 1.2% Li2O incl.
Slide 20: Large (~600km2) Land Position Highly Prospective For Lithium
Large (~600km2) Land Position Highly Prospective For Lithium No lithium exploration prior to Liontown ~20km strike length of prospective stratigraphy Multiple spodumene-bearing pegmatites up to 800m long and 20m wide mapped Rock chip assay values up to 3.5% Li2O Initial drill testing Q2 2019 Multipl
Slide 21: Catalysts for Continued Re-Rating
Catalysts for Continued Re-Rating Kathleen Valley Project Buldania Project Continuing Maiden Mineral 1 5 05 Resource: Q3 2019 drill results Resource Upgrade: Regional 2 6 06 July 2019 exploration and discovery drilling Metallurgical studies 3 Preliminary focused on optimising 7 grade and recoveries
Slide 22: A Proven, Experienced Board; Corporate Snapshot
A Proven, Experienced Board 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 experience experience experience experienc
Slide 23: Appendix
APPENDIX Kathleen Valley Project Additional Information 23
Slide 24: Scoping Study – Key Parameters And Assumptions
Scoping Study – Key Parameters And Assumptions Parameter Parameter General and Economic Cost Assumptions Discount rate (real, post tax) 8% LOM average open pit mining A$37.72 costs ($/t ore mined) Spodumene concentrate price US$650 per tonne FOB LOM average processing cost Tantalum concentrate price
Slide 25: Scoping Study – LoM Financials And Capital Expenditure
Scoping Study – LoM Financials And Capital Expenditure Life of Mine Financials Capital Costs Summary A$M Main Area Capital (A$M) Revenues 2,802 Treatment Plant 82.8 Operating costs (1,236) Reagents & Plant Services 9.5 Infrastructure – general 39.9 Capital expenditure Mining 6.1 - pre-production (23
Slide 26: Scoping Study – Production And Costs
Scoping Study – Production And Costs Production and Costs 400 800 701 350 660 700 300 570 600 616 537 520 525 Conc. Production (kt) Opex (A$t/conc) 250 552 468 500 468 391 200 434 433 438 400 377 293 150 300 310 100 200 191 50 100 169 348 351 357 356 372 355 356 149 - - Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 S
Slide 27: Scoping Study – Grade Profiles
Scoping Study – Grade Profiles LOM Lithium and Tantalum Grade Profile 1.60% 189 200 174 169 180 1.40% 163 156 Lithium Grade (%Li2O) Tantalum Grade (ppm Ta2O5) 160 1.20% 142 142 133 133 140 1.00% 120 0.80% 100 1.42% 1.26% 1.26% 1.32% 1.26% 1.26% 0.60% 1.23% 1.24% 80 1.20% 60 0.40% 40 0.20% 20 -- - -
Slide 28: Scoping Study – Production Classification
Scoping Study – Production Classification Production Classification by Year 2.5 50% 45% 2 40% 35% 1.5 30% Tonnes (Mt) 25% 1 20% 15% 0.5 10% 5% 0 0% Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Unclassified Inferred Indicated Measured Percentage Inferred 28
Slide 29: Exploration Target Parameters and Assumptions
Exploration Target Parameters and Assumptions The grade and tonnage ranges referred to above are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. 29
Slide 30: Connect
EMAIL WEBSITE: OFFICE PHONE NUMBER info@ltresources.com.au www.ltresources.com.au Level 2, 1292 Hay St 08 9322 7431 West Perth WA 6005 CONNECT https://au.linkedin.com/company/liontown-resources-limited https://twitter.com/LiontownRes 30