Lindian Resources Limited · ASX:LIN
Lindian Resources — Investor Presentation (July 2024)
49 slides from Lindian Resources's investor presentation, Jul 9, 2024
Slide 1: Corporate Presentation
Corporate Presentation For personal use only 9 July 2024 ASX:LIN OTCQB:LINIF
Slide 2: Important Information – Disclaimer
IMPORTANT INFORMATION Disclaimer The material in this presentation has been prepared by Lindian Resources Limited (“Company”). For personal use only This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, fo
Slide 3: Overview
For personal use only Overview 3
Slide 4: Corporate Information
CORPORATE INFORMATION Company ASX Code LIN Substantial Shareholders3 Share Price ~A$0.16 Kabunga Holdings Pty Ltd 10.9% For personal use only Ordinary Shares on Issue 1.153B Bonacare Pty Ltd / Topwei Pty Ltd / Wei 9.97% Performance Rights 23.3M & Zhang Options on Issue: (Conversion value A$20.5M) ~8
Slide 5: Lindian Project Locations
For personal use only LINDIAN PROJECT LOCATIONS • Rare Earths: World class Kangankunde Project in Malawi. • Bauxite: Three projects in Guinea. • Bauxite: Early stage project in Tanzania. • Head Office: Perth, Western Australia. ASX: LIN 5
Slide 6: Kangankunde Rare Earths Project
For personal use only Kangankunde Rare Earths Project 6
Slide 7: Kangankunde Location and Background
KANGANKUNDE LOCATION AND BACKGROUND • Malawi is a stable jurisdiction with English Law and a democratically elected government. For personal use only • Kangankunde is in proximity to Blantyre and Balaka. • Timeline summary: o Q3 2021 - Environmental Licence received. o Q2 2022 - Rift Valley Resource
Slide 8: Feasibility Study Results - Summary
FEASIBILITY STUDY RESULTS - SUMMARY Stage 1 is a technically and economically robust project with significant expansion upside For personal use only NdPr demand growth 15,323 tpa 45 years ~15 months Strong market outlook Concentrate production Stage 1 (current Ore Reserves) FID to first product US$7
Slide 9: Kangankunde Production Summary
KANGANKUNDE PRODUCTION SUMMARY A world-class resource to produce a high-grade concentrate containing low radionuclides (thorium & uranium) and low acid consuming minerals For personal use only Category Total Ore Reserves (1% TREO cut-off) 23 Mt @ 2.9% TREO TSF ROM Mineral Resource (0.5% TREO cut-off
Slide 10: Mine Design and Operations
MINE DESIGN AND OPERATIONS Key points: For personal use only • 6 open pit mining zones. • Annual total material mined 613 kt vs annual ore mined 529 kt. • 19.5 Mt of high-grade feed at 3.1% TREO during early years. • Very low strip ratio (<0.2:1). • Conventional mining equipment. • Low ore loss. • 2
Slide 11: Processing Plant
PROCESSING PLANT Simple processing operation: For personal use only • Unique mineralogy favourable to REE recovery using mainly physical process of gravity and Grinding ROM stockpile magnetic separation. Magnetic separation • Sulphide flotation on the Thickener concentrate stream only, resulting in
Slide 12: Infrastructure and Workforce
For personal use only INFRASTRUCTURE AND WORKFORCE Power Water Tailings Other Workforce 3MW power Sourced from Tailings storage Fuel storage and ~200 people during requirement - grid borefields, piping facility and return dispensing. construction; ~110 FTE power connection system to supply water dam
Slide 13: Logistics
LOGISTICS Excellent transport infrastructure including sealed roads and rail For personal use only • Concentrate product dried to 2% moisture and packed in 1t bulka bags at Kangankunde site. • Bulka bags transported ~110kms by sealed road to Limbe in Blantyre area. • At Limbe, bags loaded into 40 fe
Slide 14: Pre-Production Capital Costs
PRE-PRODUCTION CAPITAL COSTS Robust cost estimation process by subject experts – AACE Class 2 Estimate Cost Category US$M % of total For personal use only Key Points DIRECT CAPITAL COST • Tenderers selected based on local availability Civil works 4.7 11.9 and design and construction expertise. Taili
Slide 15: Kangankunde Low Capital Cost
KANGANKUNDE LOW CAPITAL COST One of the lowest Capital Cost developments of global rare earths projects For personal use only 1800 1,680 1,678 1600 1400 1200 Upfront Capital Cost (A$M Published) 1000 800 617 600 474 441 400 334 200 60 0 Nolans (ARU) Dubbo (ASM) Browns Range (NTU) Yangibana (HAS) Ngu
Slide 16: Operating Costs
OPERATING COSTS Ultra low US$2.92/kg REO (FOB) and US$3.71/kg AISC CIF due to favourable project factors For personal use only Favourable factors include: TREO in Annual Cost Concentrate • Conventional mining with a very low strip ratio Area % Total Unit Cost of <0.2. (US$ 000/y) (US$/kg) AISC CIF •
Slide 17: Global Industry Cost Curve
GLOBAL INDUSTRY COST CURVE Positioned in lowest cost quartile for rare earths projects globally Source: Project Blue – based on their estimate of MREC equivalent cost 30,000 For personal use only Lindian Resources – Kangankunde (Stage 1) 25,000 20,000 US$/t REO Equiv. 15,000 10,000 5,000 0 0 50,000
Slide 18: What Is Driving Rare Earth Demand?
WHAT IS DRIVING RARE EARTH DEMAND? Global trends will continue to NdPr oxide is a critical input for NdFeB drive demand for rare earths magnets used in wind turbines and electric vehicles For personal use only Source: Project Blue Report 2024 18
Slide 19: NdPr Demand Forecast
NdPr DEMAND FORECAST It is expected the NdPr market will triple in the period to 2050, requiring an 3x increase of 2023 supply levels For personal use only ~CAGR 13.6% 2023 Global NdPr production ~55 ktpa CAGR 9% Tonne NdPr +2X GROWTH FY2010-FY2020 PROJECT BLUE – PROJECTED MARKET TREND needs an addi
Slide 20: Rare Earths' Market
RARE EARTHS’ MARKET Price assumptions based on Y1 at US$70/kg REO, Y1-5 at US$82/kg NdPr, and LOM at US$109/kg NdPr For personal use only NdPr Pricing US$/kg Right Source: LIN: Project Blue 2024 I CG: Feasibility Cannacord Genuity; report dated 13 March 2024 | MS: Morgan Stanley: report dated 13 Mar
Slide 21: Marketing Strategy
MARKETING STRATEGY Product Strategy Pricing Strategy For personal use only • Premium concentrate product • Price premium due to quality • Top quartile REO grade • Lower processing cost due to favourable • Low impurity levels mineralogy • Ultra low radioactivity • Higher payability than average peer
Slide 22: Financial Evaluation
FINANCIAL EVALUATION Outstanding financial metrics Profitable at current low prices For personal use only Years LOM LOM Years 1-5 LOM Financial metric Unit 1 to 5 Unit Spot Price US$ A$ (average) (average) US$ Average annual revenue $M 81.1 113.7 170.3 Average US$/kg 50 82 109 Price NdPr Average ope
Slide 23: Financial Evaluation - Sensitivities
FINANCIAL EVALUATION - SENSITIVITIES Robust project economics continue to deliver positive NPV results in various risk scenarios For personal use only Pre-Tax NPV (Base Case Pre-Tax LOM NPV @ 8% ~US$794M) Sensitivity to Key Variables ASX: LIN 23
Slide 24: Kangankunde NPV/Capex Multiple
KANGANKUNDE NPV/CAPEX MULTIPLE One of the highest Return on Capital results of global rare earths projects (post-tax) 16.0 For personal use only 14.0 13.5 12.0 NPV / Capex Multiple (x) 10.0 8.0 6.0 5.1 4.0 2.8 1.8 2.0 1.4 0.9 0.0 Kangankunde (LIN) Longonjo (PRE.LN) Ngualla (PEK) Yangibana (HAS) Nola
Slide 25: Financing Status – Next 18 Months
FINANCING STATUS – NEXT 18-MONTHS Potential uses of funds next 18-months Funding solutions being of US$60M-$70M progressed For personal use only Vendor payment (at first commercial production - late 2025) • Several positive discussions underway in recent months. • Parties engaged include constructio
Slide 26: Indicative Development Timeline
INDICATIVE DEVELOPMENT TIMELINE Estimated 15-months from funding confirmation to first product on ship For personal use only Calendar Year 2024 2025 2026 Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Feasibility Study complete Engineering design Funding confirmation Civil works contract award Enabling works/bu
Slide 27: Timeline from FID to Production
TIMELINE FROM FID TO PRODUCTION Kangankunde positioned to be the next producer of hard rock rare earths For personal use only Kangankunde (LIN) 15 Longonjo (PRE.LN) 22 Yangibana (HAS) 24 Ngualla (PEK) 24 Dubbo (ASM) 24 Browns Range (NTU) 27 Nolans (ARU) 34 0 5 10 15 20 25 30 35 40 Construction Perio
Slide 28: Operating Sustainably
OPERATING SUSTAINABLY Keeping everyone Safe For personal use only Supporting Community Respecting Culture Being Responsible and ethical Strong Governance Looking after Environment 28
Slide 29: Working with Community
WORKING WITH COMMUNITY Community engagement For personal use only • Long-standing relationship with local communities. • Community members’ resettlement process. • Community Engagement Plan developed with and strongly endorsed by community. • Establishment of community committee with Lindian and gov
Slide 30: Environment and Licences
ENVIRONMENT AND LICENCES Low environmental impact and radiation, fully permitted to commence construction and operations For personal use only Environmental and Social Radiation management Impact Assessment (ESIA) • Ore contains low Th (50ppm) • ESIA completed and approved and U (6ppm). by Malawi Go
Slide 31: Resource & Demand Growth => Expansion
RESOURCE & DEMAND GROWTH => EXPANSION Kangankunde’s large Resource endowment, plus robust market demand forecasts, provide confidence for a potential Stage 2 expansion 7 For personal use only Kangankunde (LIN) 6 Longonjo (PRE.LN) 5 Ngualla (PEK) Contained TREO (Mt) 4 3 Mt Weld (LYC) Tardiff (VML) 2
Slide 32: Outstanding Feasibility Results
OUTSTANDING FEASIBILITY RESULTS 1 2 3 CRUCIAL TO SUPERIOR LOW For personal use only Global Tier 1 Asset Capex & Supply Opex • Massive Resource • Growing market • CAPEX US$40M • High REO content • Low-cost NdPr supply • OPEX – US$2.92/kg TREO • Low radionuclides and low • Profitable operation even at
Slide 33: Bauxite Projects
For personal use only Bauxite Projects 33
Slide 34: Bauxite – Three Stages to Aluminium Production
BAUXITE – THREE STAGES TO ALUMINIUM PRODUCTION STAGE 1 BAUXITE MINING STAGE 2 ALUMINA PRODUCTION STAGE 3 ALUMINIUM PRODUCTION For personal use only Primary source is bauxite Bauxite is processed into Then through the process alumina of electrolysis, alumina is turned into aluminium 4-5 tonnes 2 tonn
Slide 35: Bauxite Market for EVs
BAUXITE MARKET FOR EVS World Bauxite demand for EVs For personal use only Global EV car sales vs aluminium demand Wood Mackenzie : 2024 Outlook aluminium demand for EVs to reach over 4.5 million tonnes (~20Mt Bauxite) EV’s have >50% Aluminium: a critical raw material (CRM) essential to EV energy eff
Slide 36: Bauxite Projects - Overview
BAUXITE PROJECTS - OVERVIEW • Lindian’s bauxite projects have a combined 1Bt For personal use only JORC resource1. • Guinea export capacity has increased by 500% from approx. 20Mt per year in 2015 to >100Mt per year in 2022. • Guinea bauxite production is increasing year- on-year currently at ~40Mt2
Slide 37: Gaoual Project
GAOUAL PROJECT • Very high-grade, low silica For personal use only Resources Cut-off Grade Grade (screening studies), close to Category (Mt) (AI2O3 %) (AI2O3 %) (SiO2 %) infrastructure located approximately 60km to CBG High Grade 83.8 45 51.2 11.0% Indicated Resources railhead. Total 101.5 40 49.8 1
Slide 38: Lelouma Project
LELOUMA PROJECT High grade, low silica large resource Cut-off Mineral Resource Tonnes For personal use only AI2O3 (%) SiO2 (%) Criteria Category (Mt) >40% AI2O3 Measured 155 47.9 1.8 <10% SiO2 Indicated 743 44.4 2.1 >1m Thick Measured + Indicated 898 45.0 2.1 <1 Strip ratio Inferred 2 42.9 2.8 (wast
Slide 39: Woula Project
WOULA PROJECT Supplementary feed asset close to infrastructure For personal use only Mineral Cut-off Criteria Tonnes AI2O3 SiO2 Resource >40% AI2O3 Inferred 19 41.7 3.2 10% SiO2/>1m Thick / <1 strip ratio (waste:ore Total 19 41.7 3.2 thickness) 1. For all resource statements refer Competent Persons
Slide 40: Conclusions
For personal use only CONCLUSIONS 40
Slide 41: Why Invest in Lindian?
WHY INVEST IN LINDIAN? Rare Earths: Kangankunde - Malawi For personal use only • Global tier one rare earths asset. • Mining-friendly jurisdiction. • Low cost Stage 1 project. • Significant Stage 2 expansion potential. • Robust Stage 1 project economics. • Short term path to production. Bauxite: Gui
Slide 42: End
For personal use only End 42
Slide 43: Contact
CONTACT Alwyn Vorster For personal use only CHIEF EXECUTIVE OFFICER E - info@lindianresources.com.au Linda Gimondo MANAGER CORPORATE AFFAIRS E - Linda.gimondo@lindianresources.com.au Lindianresources.com.au | + 61 8 6557 8838 | Level 24, 108 St Georges Terrace, Perth FOLLOW US 43 43
Slide 44: Appendices
For personal use only Appendices 44
Slide 45: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Board Executive Leadership Team For personal use only ASX: LIN 45
Slide 46: Competent Persons' Statements
COMPETENT PERSONS' STATEMENTS The information in this presentation that relates to Exploration Results, The information in this presentation that relates to the Ore Reserve for the Metallurgy Results, and Mineral Resources of the Kangankunde Rare Earths Kangankunde project is based on and fairly rep
Slide 47: Kangankunde - Resources & Reserves
KANGANKUNDE - RESOURCES & RESERVES Mineral Resource Inclusive of Reserves @ 0.5% TREO Cut-off Grade Resource Tonnes TREO NdPr% of Tonnes Classification TREO** Contained (millions) (%) NdPr* (%) For personal use only (millions) Indicated 61 2.43 20.1 0.3 Inferred 200 2.05 20.4 0.8 Total Resource 261
Slide 48: Kangankunde - Risks and Opportunities
KANGANKUNDE - RISKS AND OPPORTUNITIES RISKS OPPORTUNITIES For personal use only Area Risk Description Area Opportunity Approvals Delays in approvals to commence Ore Reserves The current Mineral Resource includes 61Mt of construction. Indicated Resource, with only 23.7Mt converted to Ore Reserves. Ta
Slide 49: Source Data #1 (Resource)
SOURCE DATA #1 (RESOURCE) Company Code Project % TREO Contained TREO (t) Source Document (s) a. Annual Report 2023, 11 October 2023, Page 25 https://pensana.co.uk/wp-content/uploads/2023/10/Pensana- Pensana Plc PRE.LN Longonjo 1.43 4,470,000 AR-2023_FINAL.pdf For personal use only Peak Rare a. Ngual
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