Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Investor Presentation (September 2020)
20 slides from Prospect Resources's investor presentation, Sep 16, 2020
Slide 1: Arcadia Lithium Project
For personal use only Arcadia Lithium Project Africa’s most advanced lithium project September 2020 ASX: PSC I FRA:5E8
Slide 2: Disclaimer
Disclaimer Caution Regarding Forward Looking Information For personal use only The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Prospect Resources Ltd (“Prospect Resources or the Company”) or
Slide 3: Company Overview
Company Overview Leading African lithium mineral developer + Listed on the Australian (ASX: PSC) and Frankfurt (FRA: 5E8) For personal use only exchanges Strategically Focused + Lithium minerals focused Company + Flagship project is the 87%1 owned Arcadia Lithium Project located in Zimbabwe + Africa
Slide 4: Arcadia, a game changing lithium project
Arcadia Lithium Project Arcadia, a game changing lithium project For personal use only • Operating in an established mining jurisdiction with over 100 years of mining history • Located 38km outside of Zimbabwe’s capital city • Close proximity to a skilled labour force and established infrastructure
Slide 5: Staged open pits, large scale production
Arcadia Lithium Project Staged open pits, large scale production Mineral Resource Oct 2017 For personal use only Contained Ta2O5 Category Tonnes (Mt) Li2O (%) Ta2O5 (ppm) Li2O (kt) (Mlbs) Measured 15.9 1.17% 121 185 4.2 Indicated 45.4 1.10% 121 502 12.1 Inferred 11.4 1.06% 111 121 2.8 TOTAL 72.7 1.1
Slide 6: Conventional mining and processing
Arcadia Lithium Project Conventional mining and processing Global lithium recoveries 55.2% with conservative assumptions For personal use only Petalite (Dense Media Separation) 1 Average production of 122,000 tonnes p.a. Open Pit ROM Ore Feed Crushing Stockpile HPGR Low Iron Petalite Ultra - Low Iro
Slide 7: A tier one project delivering strong economics
Arcadia Lithium Project A tier one project delivering strong economics Updated DFS Nov 20191 Annual EBITDA ( First 5 Years) For personal use only 5 years average 250 Average Annual EBITDA (first 5 years) 195 US$168M 200 181 177 168 161 US$M 150 127 CAPEX US$162M 100 50 NPV10 pre-tax US$710M 0 Y1 Y2
Slide 8: Lithium Market: Prospect's unique opportunity
For personal use only Lithium Market Prospect’s unique opportunity I September 2020 I 8
Slide 9: Two markets for lithium
Competitive Advantage Two markets for lithium Processing Flow For personal use only 450,000 Historical Lithium Demand 400,000 350,000 Lithium Carbonate Equivalent (LCE) 300,000 Battery Market 250,000 High growth & volatile 200,000 150,000 100,000 Industrial Market 50,000 Stable & consistent 0 2015a
Slide 10: Petalite's unique properties
Competitive Advantage Petalite’s unique properties Processing Flow For personal use only • Petalite is a lithium aluminium phyllosilicate mineral with chemical formula LiAlSi4O10 and occurs in lithium bearing pegmatites. • Petalite is unique for its thermal properties • Arcadia’s ultra-low iron peta
Slide 11: Petalite's exposure to a stable blue-chip customer base
Competitive Advantage Petalite’s exposure to a stable blue-chip customer base Processing Flow For personal use only Corning Inc • Market Capitalisation US$23.6B, Revenue US$11.5B and total assets US$28.9B Compagnie de Saint-Gobain S.A (France) • Market Capitalisation €$16B, Revenue €$42.6B and total
Slide 12: Diversified Market Potential
Competitive Advantage Diversified Market Potential For personal use only Spodumene Petalite Opportunity in the Glass & Ceramics Market Ultra-Low Iron Petalite • One of two ultra-low iron petalite suppliers in the Chemical world Converter • One of three suppliers able to go directly into the Pre-curs
Slide 13: Sibelco Offtake Agreement
For personal use only Sibelco Offtake Agreement I September 2020 I 13
Slide 14: Sibelco: Globally diversified industrial mineral solutions business
Sibelco Globally diversified industrial mineral solutions business For personal use only Founded back in 1872 and still privately-owned, we’ve grown into a truly multinational material solutions business 31 countries 9,000 MAIN MATERIALS people • Silica • High purity quartz • Specialty minerals 174
Slide 15: Sibelco Offtake Agreement Summary
Sibelco Offtake Agreement Summary • Seven-year term for up to 100,000 dry metric tonnes (dmt) per For personal use only annum, to a total of up to 700,000 dmt over the lifetime of the agreement • World’s largest known ultra-low iron petalite off-take agreement, positioning Prospect to be the world’s
Slide 16: Market Opportunity: commencement of production in a supply constrained market
For personal use only Market Opportunity commencement of production in a supply constrained market I September 2020 I 16
Slide 17: Exceptional Growth Opportunity
Exceptional Growth Opportunity Without further investment, the market is in deficit by 2021 For personal use only Million LCE tonnes Shortage of long term supply1 4.0 • Existing operational EV achieves ICE cost parity 3 Arcadia’s targeted commencement of operation supply only in place to 3.5 Demand
Slide 18: Interest from a clean energy leader
Exceptional Growth Opportunity Interest from a clean energy leader • Uranium One Group JSC is an international mining company of ROSATOM, the Russian State Corporation for Nuclear Energy, For personal use only with a diverse portfolio of assets worldwide, including in Kazakhstan, the United States,
Slide 19: Exceptional Growth Opportunity: Summary
Exceptional Growth Opportunity Summary • Average Annual EBITDA (First 5 years) US$168M • CAPEX US$162M, including EPCM cost provision & 14% contingency1 For personal use only Strong project economics • Pre-tax IRR of 71% • Pre-tax NPV10 US$710M2 • 7th Largest Global Hard Rock Lithium Asset Tier 1 de
Slide 20: Contact Us
CONTACT US For personal use only Nick Rathjen General Manager, Corporate Affairs Mobile: +61405 730 410 Email: nrathjen@prospectresources.com.au www.prospectresources.com.au
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