Slide 1: Beharra Pre-feasibility Study
Beharra Pre-feasibility Study ASX: PEC Sustainable & Responsible Sand Production for the APAC region March 2021
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about Perpetual Resources Ltd (Perpetual) and is current as of 19th 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: Contents
Contents 1. Introduction 2. Project Reserves 3. Production Process 4. Standout Metallurgy 5. Tier 1 Infrastructure 6. Project Economics 7. Project Study Team 8. Project Funding 9. Project Timeline 10. Conclusion 4
Slide 5: Sand facts
Sand facts “The global rate of sand use — which has tripled over the past two decades partially as a result of surging “We just think urbanization — far exceeds the that sand is natural rate at which sand is everywhere. We never “For construction being replenished by the thought we would run alone,
Slide 6: Asia Pacific Silica Sand Market
Asia Pacific: The Beharra is targeting Structural change in fastest Growing Silica the largest silica sand price has been Sand Market in the markets in APAC underway for a decade world US$ Price per ton for 150-200ppm Fe2O3 Silica APAC Silica Sand Market (by End Use) Sand Asia Pacific APAC Silica Sa
Slide 7: 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 8: 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 restrict • Simple metallurgy • Standard flow sheet & processing traditional supply and support demand and higher • Existing road network • Sealed na
Slide 9: 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 10: 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 11: 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 11 Note: For further information please refer to ASX announcement titled, “Exceptional Metallurgical
Slide 12: 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 13: 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 13
Slide 14: Tier 1 Infrastructure In Practise
Tier 1 Infrastructure In Practise MINE SITE BRAND HWY 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 14
Slide 15: Project Economics: Overview
Project Category Post Tax, NPV10 - Ungeared Base Case $231m Economics Post Tax IRR – Ungeared 55% : Overview Post Tax, NPV10 - Geared to 40% Post Tax IRR – Geared to 40% $236m 77% Payback Period – Post Tax 2 years Beharra represents a compelling financial Exchange Rate (USD/AUD) 0.75 proposition, ex
Slide 16: Project Economics: Capex
Project Item (Base Case) Wet Processing Plant Cost (A$) $19.1m Economics : Capex On Site Infrastructure - Buildings & Amenities - Power Station - Roads & Hardstand $3.5M - General Site Civils & Earthworks Final Capex for Beharra - Fuel Storage & Distribution includes a comprehensive list - Mobile Eq
Slide 17: Project Economics: Revenue Per Ton
Project US$ Price per ton for 200-300ppm Fe2O3 Silica Sand Economics: 100 Japan Revenue Per Ton Korea China 80 Conservative sales price assumed to ensure seamless market entry and significant upside potential. 60 40 PFS forecast revenue per ton^ 20 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1
Slide 18: Project Economics: Opex
Project Opex item A$ per product ton % of total Economics Product Haulage & Port Charges Mining & Rejects $26.09 $7.33 60% 17% : Opex Processing $3.31 8% Royalty $2.30 4% Contingency $1.88 4% 4% 4% 3% Operating Cost ($/t) General & Admin $1.58 4% 4% Haulage & Port Charges Rehabibilitaion $0.58 3% 8%
Slide 19: 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% 19 *Assumes 40% gearing Note: For further information and full detail on all assumptions, please refer to ASX announcement titled,
Slide 20: Project Economics Sensitivity Analysis
Project Beharra NPV Sensitivity Analysis Economics Gearing Ratio : Sensitivity Project Capital Analysis The Beharra project economics are Operating Cost highly resilient to changes in various key scenarios. Revenue per ton optimization Exchange is anticipated to deliver the greatest Rate upside pote
Slide 21: 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 22: Project Study Team and Stakeholders Beharra
Project Study Team and Stakeholders Beharra Project 22
Slide 23: 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 24: 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 24
Slide 25: 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 26: Contact
“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 Julian Babarczy Executive Chairman Robert Benussi Managing Director robert.b@pecsilica.com +61 410 415 335 Perpetual Resources Ltd Level 8, 84 Pit