Slide 1: Fast charging towards a low carbon future
Fast charging towards a low carbon future Equity Capital Raising Presentation December 2021 ASX: LTR 1 | LIONTOWN RESOURCES December 2021
Slide 2: Important Information
Important Information This presentation (“Presentation”) has been prepared by Liontown Resources Limited (the “Company”) and is of a summary form only and therefore contains general background information which may not be complete. This Presentation has been prepared in relation to a proposed fully
Slide 3: Important Information (cont.)
Important Information (cont.) Investment risk As noted above, an investment in shares in the Company (including New Shares) is subject to investment and other known and unknown risks, some of which are beyond the control of the Company. The Company does not guarantee any particular rate of return or
Slide 4: Important Information (cont.)
Important Information (cont.) Disclosure (cont.) Determination of eligibility of investors for the purposes of all or any part of the Offer is determined by reference to a number of matters, including legal requirements and the discretion of the Company and the JLMs. To the maximum extent permitted
Slide 5: Investment Highlights
Investment Highlights1 • The Kathleen Valley Lithium Project (“KV”) is a world class deposit situated in the established mining jurisdiction of Western Australia Globally significant Tier 1 project • Attractive capital intensity, low cash cost operation with an initial mine life of ~23 years • Excep
Slide 6: Equity Raising
Section 1 Equity Raising 6 | LIONTOWN RESOURCES December 2021
Slide 7: Offer Summary
Offer Summary Liontown is conducting a fully underwritten institutional placement to raise ~A$450 million and a non-underwritten Share Purchase Plan to raise up to A$40 million • Liontown is conducting the offer to raise up to ~A$490 million, comprising ― A fully-underwritten institutional placement
Slide 8: Sources and Uses of Funds
Sources and Uses of Funds Offer proceeds will be used to fund the equity component of the development of the world-class Kathleen Valley Lithium Project The equity raising provides funding to Liontown to support the development of its Sources of Funds (A$m) % of Total Kathleen Valley Lithium Project
Slide 9: Project Funding Overview
Project Funding Overview Liontown is seeking to raise up to ~A$490m to provide maximum optionality and flexibility around remaining debt and offtake discussions. Liontown believes this prudent approach to financing will maximise the value of Kathleen Valley for all shareholders Funding Bridge to Kat
Slide 10: Timetable and Pro-Forma Capital Structure
Timetable and Pro-Forma Capital Structure Indicative Timetable1 Pro-Forma Shares and Cash Event Date Shares (m) Cash (A$m) Record date for eligibility to participate in SPP 7:00pm AEDT Tuesday, 30 November 2021 Pre-equity raising (unaudited)2,3 1,911.7 24 Trading halt Wednesday, 1 December 2021 Plac
Slide 11: Liontown and Kathleen Valley Overview
Section 2 Liontown and Kathleen Valley Overview 11 | LIONTOWN RESOURCES December 2021
Slide 12: Liontown Corporate Overview
Liontown Corporate Overview Liontown is focused on the development of the world-class Kathleen Valley Lithium Project Projects Pre-equity raising corporate snapshot (30 Nov 2021) ASX: LTR Kathleen Valley World-class scale and economics Market Cap. Share price ($/s) 156Mt @ 1.4% Li2O & 130ppm Ta2O5 H
Slide 13: Board and Management
Board and Management Highly experienced Board and Executive Leadership Team, with a track record of delivering shareholder value Board of Directors Executive Leadership Team Tim Goyder Craig Williams Tony Ottaviano Chairman Non-Executive Director Managing Director / CEO +40 years (Mining Executive)
Slide 14: Liontown's Strategy
Liontown’s Strategy We aim to be an ESG-leader, and a globally significant provider of battery materials for the rapidly growing clean energy market Stage 3 Stage 2 Liontown Full Potential Stage 1 • Established, integrated producer of high value lithium chemicals • Utilise Buldania resources to sust
Slide 15: Liontown's ESG Focus
Liontown’s ESG Focus Environment • Aspiring to have Best-in-class Scope 1 Climate Strategy Roadmap and 2 emissions and reduced impact on local surroundings First Production 1st Goal Net Zero • ~60% renewable energy target to reduce Scope 2 emissions 2024 2029 2034 • Minimising water usage through De
Slide 16: Liontown's ESG Focus (cont.)
Liontown’s ESG Focus (cont.) Underground mining provides significant sustainability advantages compared to peers, owing to higher ore quality and grades and minimisation of waste Sustainability Benchmarking Social Engagement Liontown is expected to be one of the first new mining Tjiwarl input has be
Slide 17: Lithium Market Dynamics
Lithium Market Dynamics Production expected to commence in 2024, coinciding with a forecast market deficit that is expected to continue and grow. Liontown has optionality to further increase production towards the end of the decade Global lithium market balance (battery grade), 2021-31, kt LCE Deman
Slide 18: Competitive Cost Curve Position
Competitive Cost Curve Position In 2030, Liontown will become a globally significant, cost competitive producer once 4Mtpa expansion ramp-up is complete Roskill Spodumene Cost Curve: 20301 Based on Roskill cost analysis 2030 Roskill Spodumene Forecast: ~US$1,364/dmt (CIF) Kathleen Valley 18 | LIONTO
Slide 19: Kathleen Valley Benchmarked
Kathleen Valley Benchmarked Kathleen Valley is a uniquely positioned, globally significant Tier 1 lithium resource with exploration potential Australian hard rock lithium operations and advanced projects1,2 By project, size, and grade Operating/Established In development Liontown 350 Pilgangoora (Pi
Slide 20: Leading Capital Intensity
Leading Capital Intensity Despite inflationary pressures across the industry, Liontown’s DFS represents a significant improvement in capital intensity at Kathleen Valley. Once expanded, Liontown will have one of the lowest capital intensity development projects globally and strong capital efficiency
Slide 21: November 2021 DFS Key Metrics
November 2021 DFS Key Metrics1 Based on April 2021 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 NPV2 (post-tax) A$4.2B Reserve Mining IRR / Payback 57% / 2.3 years 68.5Mt @ 1.34% Li2O &120ppm Ta2O5 2.5 Mtpa (increasing to 4Mtpa) SC6 Opex US$402/dmt Years 1-53 (FOB) US$314/dmt (excl. royalties) SC6 Opex
Slide 22: November 2021 DFS – NPV Sensitivity Analysis
November 2021 DFS – NPV Sensitivity Analysis The DFS represents the potential for a world-class project at Kathleen Valley, with exceptional economics including an NPV of A$4.2B. Liontown recognises the potential for upside and downside based on variation of actual outcomes against assumptions Kathl
Slide 23: <3 years to production
We aim to accelerate the schedule to meet expected market shortfall Project milestones right Liontown well positioned to deliver project on accelerated schedule on schedule Updated Early PFS DFS FEED/ works/ Construction Complete Complete FID design complete Commissioning Production Q4 2020 Q4 2021
Slide 24: Offtake Strategy
Offtake Strategy Liontown intends to put in place large foundation offtake agreements, aiming to deliver diversification by geography and stage in value chain Offtake Strategy Geographic Breakdown and Indicative Target Customers • Discussions held with in excess of 50 parties who have expressed inte
Slide 25: Downstream Processing Opportunity
Downstream Processing Opportunity The updated DSS confirms: Value maximizing pathway for Liontown is a staged-build, integrated mining, processing and refining operation producing Lithium Hydroxide Monohydrate (“LHM”) Value Maximising The Integrated Project has the potential to Refinery will be incl
Slide 26: November 2021 Downstream Scoping Study Key Metrics
November 2021 Downstream Scoping Study Key Metrics1 Downstream Scoping Study updated for new input assumptions from the Kathleen Valley DFS NPV2 (post-tax) A$9.6 Billion Production Spodumene Feedstock IRR 56% 86.4ktpa LHM Processing feed of ~570 ktpa SC6.0 LOM Free Cash A$32 Billion Flow LHM Opex3 U
Slide 27: Building A Sustainable Company Starts With Good People
Building A Sustainable Company Starts With Good People Sustainability and governance has been approached with a clean slate, allowing the core fundamental values and principles to be established to provide the blueprint as the employee numbers and the company grows Our Values Our Principles Safety R
Slide 28: Liontown's Long-Term Strategy
Liontown’s Long-Term Strategy Liontown is planning for the future Kathleen Valley Spodumene Future Supply Near-term focus on maximising Liontown is continuously exploring spodumene value from Optionality for spodumene or processed lithium sales opportunities to increase battery Kathleen Valley thr
Slide 29: Liontown's Investment Proposition
Liontown’s Investment Proposition Timed To Integrated Tier 1 Asset ESG-Positive Near Term Priorities Perfection Opportunity 1 Execute attractive offtake agreements to support FID 2 Progress and finalise project funding 3 Secure long-lead items to Kathleen Valley is a Net zero trajectory, with Sig
Slide 30: Thank You
Thank You For More Information: Investor Relations: Tony Ottaviano Nicholas Read Managing Director Read Corporate T: +61 8 6186 4600 T: +61 8 9388 1474 info@ltresources.com.au nicholas@readcorporate.com.au @LiontownRes liontown-resources-limited 30 | LIONTOWN RESOURCES December 2021
Slide 31: Appendix: Kathleen Valley Project
Appendix 1 Kathleen Valley Project Further Project Information 31 | LIONTOWN RESOURCES December 2021
Slide 32: Kathleen Valley Location
Kathleen Valley Location Kathleen Valley is located in a stable, established and well-governed mining jurisdiction, giving Liontown confidence to execute an accelerated project delivery timetable and providing long-term operation support to Kathleen Valley Cliffs Major Nickel Town of Leinster and Go
Slide 33: Production Schedule and Mine Overview
Production Schedule and Mine Overview Kathleen Valley is a globally significant, high-grade resource – average grade in first five years of 1.5% 10-Year Production Schedule Mine Overview Spodumene Concentrate (kdmt) and Processing Grade (%) 1.6% 1.6% 1.6% 1.4% 1.4% 1.4% 1.3% 1.3% 1.2% 1.2% 739 705 6
Slide 34: Mining and Processing
Mining and Processing Conventional mining method, proven and reliable technology with a flowsheet grounded in evidence based design Underground Mining Method WOF Processing Strategy Conventional mining methods (room-and-pillar and long-hole Simple flowsheet – better operability and reliability s
Slide 35: Benefits of KV Drive Lower Mining Costs
Benefits of KV Drive Lower Mining Costs Kathleen Valley’s mining costs are derived from tenders received based on the actual mine schedule. Costs have been benchmarked against comparable projects and Liontown has identified some key benefits of KV which will assist in minimising mining costs Mining
Slide 36: Pathways to "Net Zero"
Pathways to “Net Zero” There are many different ways to meet “net zero” by 2050 >2°C 2°C “Well below 2°C” 1.5°C Liontown is Emissions committed to meeting its “net (MtCO2e) zero” target by 2050 2050 2050 2050 Aligned with the Sector- 2034, well ahead Paris Agreement Average missions +12%2 ~21%3 ~20%
Slide 37: Resources & Reserves
Resources & Reserves Kathleen Valley is a globally significant, high-grade resource Mineral Resource Estimate1 – April 2021 Cut-off Resource Million Ta2O5 Li2O% Category Tonnes Li2O% (ppm) 0.55 Measured 20 1.3 145 Indicated 109 1.4 130 Inferred 27 1.3 113 TOTAL 156 1.4 130 Ore Reserve – November 202
Slide 38: DFS Key Parameters And Assumptions
DFS Key Parameters And Assumptions General and Economic DFS 1 Cost Assumptions DFS 1 Discount rate (real, post-tax) 8% LOM avg open pit mining costs 3 (A$/dmt ore mined 4) 28 Weighted average LOM SC6.0 (FOB Geraldton) US$1,392/t 5 LOM avg U/G mining costs 3 (A$/dmt ore mined 4) 45 Weighted average T
Slide 39: DSS Key Parameters And Assumptions
DSS Key Parameters And Assumptions General and Economic DSS 1 Cost Assumptions DSS 1 SC6.0 LOM average operating cost excl. transport 4 (US$/dmt SC6.0 Discount rate (real, post-tax) 8% 378 produced) SC6.0 Transport cost (to Geraldton incl. Port Charges) (US$/dmt SC6.0 SC6.0 weighted average price (F
Slide 40: Appendix: Peer Benchmarking
Appendix 2 Kathleen Valley Project Peer Benchmarking 40 | LIONTOWN RESOURCES December 2021
Slide 41: Lithium Equivalency Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs Li2O% Tantalite (Ta2O5) $/lb 84 (B2) US$ Spodumene $/tonne 1,392 (B3) US$ Tantalite recovery 38% (B4) Per LTR testwork incl. off site losses ie 90% of 42% Ta2O5 = 0.0487 (F4) Spodumene Recovery 81% (B5) Per LTR testwork Ta2
Slide 42: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE Li2O Company Project Stage Information Source Mt Mt Mt MRE Mt Grade % Kathleen Valley Development 20.0 109.0 27.0 156.0 1.35 ASX Release 8/4/2021 Liontown Resources Buldania Scoping 0.0 9.1 5.9 14.9 0.97
Slide 43: Peer Comparison Information – Capital Intensity
Peer Comparison Information – Capital Intensity Average Annual Spodumene Capital Cost Production Capital Company Project Stage (US$m1) (ktpa) Grade (%) Intensity2 Information Source ASX Announcement – Kathleen Valley PFS Kathleen Valley – PFS Development 237 350 6.0 678 Presentation, 9 October 2020
Slide 44: Appendix: Key Risks and International Offer Jurisdictions
Appendix 3 Key Risks and International Offer Jurisdictions 44 | LIONTOWN RESOURCES December 2021
Slide 45: Key Risks
Key Risks This section discusses some of the key risks associated with an investment in shares in Liontown (Shares). There are a number of risk factors, specific to Liontown and of a general nature, which may affect the future operating and financial performance of Liontown, the industry in which it
Slide 46: Key Risks (cont.)
Key Risks (cont.) Pre-development stage The Kathleen Valley Lithium Project is at the pre-development stage. The prospects of Liontown should be considered in light of the risks, expenses and difficulties frequently encountered by companies at this stage of development. The business of mineral explo
Slide 47: Key Risks (cont.)
Key Risks (cont.) Underwriting risk (cont.) There is an event, occurrence or non-occurrence after the date of the Underwriting Agreement which makes it illegal or commercially impracticable for the JLMs to satisfy a material obligation under the Underwriting Agreement, or to market, promote or set
Slide 48: Key Risks (cont.)
Key Risks (cont.) Native title and Aboriginal Heritage The Kathleen Valley Lithium Project tenements are located within areas that are covered by the Tjiwarl Determined Native Title Claim (WC11/7). Liontown has entered into a native title agreement with the Tjiwarl Native Title Holders (see ASX anno
Slide 49: Key Risks (cont.)
Key Risks (cont.) Lithium and tantalum recovery Mineral recoveries are dependent upon the process that is required to liberate economic minerals and produce a saleable product and by nature contain elements of significant risk such as: identifying a process through test work to produce a saleable
Slide 50: Key Risks (cont.)
Key Risks (cont.) Environmental risk (cont.) Further, Liontown will require key governmental (including environmental) approvals from the relevant authorities before it can undertake activities that are likely to impact the environment. Failure to obtain such approvals will prevent Liontown from und
Slide 51: Key Risks (cont.)
Key Risks (cont.) General investment risks: Economic risk General economic conditions, movements in interest and inflation rates, the prevailing global commodity prices and currency exchange rates may have an adverse effect on Liontown's exploration, development and production activities, as well as
Slide 52: Key Risks (cont.)
Key Risks (cont.) Litigation risks Liontown is exposed to possible litigation risks including native title claims, royalty disputes (including royalty calculation disputes and other potential claims from royalty holders), tenure disputes, environmental claims, occupational health and safety claims a
Slide 53: International Offer Jurisdictions
International Offer Jurisdictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austra
Slide 54: International Offer Jurisdictions (cont.)
International Offer Jurisdictions (cont.) New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not being offered or sold in New Zealand (or allotted with a vi
Slide 55: International Offer Jurisdictions (cont.)
International Offer Jurisdictions (cont.) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Marke
Slide 56: Level 2, 1292 Hay St West Perth WA 6005
Level 2, 1292 Hay St West Perth WA 6005 T: +61 8 6186 4600 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited 56 | LIONTOWN RESOURCES December 2021