Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Diggers & Dealers 2021
39 slides from Liontown's conference presentation, Aug 2, 2021
Slide 1: A unique opportunity to invest in a globally significant lithium company
For personal use only A unique opportunity to invest in a globally significant lithium company ASX: LTR Kathleen Valley Lithium Project Diggers & Dealers | August 2021 1 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 2: Important information
Important information For personal use only CAUTIONARY STATEMENT Competent person statement 1 The production targets and forecast financial information referred to in the PFS & DSS were based on Proven Ore Reserves The Information in this Presentation that relates to Ore Reserves, Production Target
Slide 3: Liontown Resources are a WA-focused hard rock lithium developer
Liontown Resources are a WA-focused hard rock lithium developer For personal use only Projects Corporate snapshot (30 July 2021) ASX: LTR Kathleen Valley World-class scale and economics Market Cap. Share price ($/s) (Lithium-Tantalum) 156Mt @ 1.4% Li O & 130ppm Ta O 2 2 5 ~40 year mine life A$1.8bn
Slide 4: Liontown Investment Proposition
Liontown Investment Proposition For personal use only Strong Lithium market fundamentals – supply gap from 2024 Some of the best undeveloped spodumene deposits located in a reliable mining jurisdiction • Kathleen Valley – large, high grade and competitive cost structure • Buldania – further potentia
Slide 5: Lithium market deficit expected by 2024
Lithium market deficit expected by 2024 For personal use only Global lithium market balance (battery grade), 2020-30, Mt LCE Accelerated KV production commencement 2.0 Supply Demand >1 Mt 1.5 1.0 0.5 LCE shortfall in supply by 2030 0.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Supply/de
Slide 6: Kathleen Valley is a uniquely positioned, globally significant lithium resource
Kathleen Valley is a Australian hard rock lithium operations and advanced projects By project, size, and grade For personal use only uniquely Operating/Established In development Liontown positioned, globally 300 Pilgangoora (Pilbara significant Tier 1 Wodgina (Albemarle, MinRes) Minerals) Resource
Slide 7: Stable, established and well-governed mining jurisdiction
Stable, established and well-governed mining jurisdiction For personal use only Major Nickel Cliffs Town of Leinster and Gold Mines Cosmos Goldfields Natural Highway (access Bellevue Underground gas pipeline Mine to Geraldton port) Leinster Vivien Agnew Lawlers Powerline Sealed airstrips 7 | LIONTOW
Slide 8: The DFS and optimisation are well advanced to maximise value
The Definitive Feasibility Study (DFS) and optimisation are well advanced to maximise value For personal use only DFS update On track to conclude Q4 2021 Assessing technology adoption to minimise Scope 1 and Scope 2 emissions Ongoing test work including ~5 tonne pilot program Continued engag
Slide 9: Lithium developers are moving underground
Lithium developers are moving underground For personal use only Rationale for underground lithium mining Underground Reserve grade and tonnage Bubble size represents underground Reserve LCE 60 Kathleen Valley is one of the highest quality underground Reduces environmental and social impacts hard roc
Slide 10: Whole-of-ore float processing provides high recoveries
Whole-of-ore float processing provides high recoveries For personal use only Why whole-of-ore flotation? Reduces operational challenges associated with mixed DMS-flotation processing methods Significantly improves consistency of recoveries Enhances flexibility to vary head grade and produce a
Slide 11: Kathleen Valley – positive ESG outcomes from day one!
Kathleen Valley – positive ESG outcomes from day one! For personal use only ESG commitments matter We aspire to be on a net-zero trajectory1 Customers Automotive OEMs increasingly demand Environment • Best-in-class Scope 1 and 2 emissions environmentally-friendly, low-carbon and reduced impact on
Slide 12: Climate strategy roadmap - a net zero trajectory
Climate strategy roadmap - a net zero trajectory Proven technology, real time frame, no false promises and measurable For personal use only Commence Operation Year Operation Year 5 Measurable Operation Year 10 0 Net zero (FOB) First production 1st goal Inaugural sustainability 2024 2029 2034 report
Slide 13: We aim to accelerate the schedule to meet expected market shortfall
We aim to accelerate the schedule to meet expected market shortfall For personal use only Updated Early PFS FEED/ works/ Construction and DSS DFS FID design complete Commissioning Production Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q4 2023 Q1 2024 Q2 2024 Continued assessment of growth and downstream process
Slide 14: Preserving Market Options
Preserving Market Options For personal use only Offtake availability of key assets (ktpa)1 Operating / Established Largest offtake base globally Exploration 350 Liontown 330 100% offtake availability allows Liontown to retain maximum optionality for: ● Downstream value add for its own product (conve
Slide 15: Kathleen Valley is just the beginning…
Kathleen Valley is just the beginning… Liontown has additional growth opportunities For personal use only Liontown has optionality around future growth… … and is actively assessing high potential opportunities Growth dimension 1: organic growth with current assets Downstream Scoping Study key metric
Slide 16: Buldania Overview
Buldania Overview For personal use only Buldania is in a lithium-rich mineral province 1 Outcropping, fresh, spodumene-related mineralization 2 Mineralisation at Anna extends to the SE under shallow cover – strike length >1.4km and open 3 Similar geology to the Mt Marion and Bald Hill lithium deposi
Slide 17: Liontown Investment Proposition
Liontown Investment Proposition For personal use only Strong Lithium market fundamentals – supply gap from 2024 Some of the best undeveloped spodumene deposits located in a reliable mining jurisdiction • Kathleen Valley – large, high grade and competitive cost structure • Buldania – further potentia
Slide 18: Thank You
For personal use only Thank You Visit www.Itresources.com.au 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 18
Slide 19: Appendix: Kathleen Valley Project Additional Information
For personal use only APPENDIX 1 Kathleen Valley Project Additional Information 19 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 20: Resources & Reserves
Appendix 1: Kathleen Valley Project Additional Information Resources & Reserves For personal use only 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 1.4 129 Ore Rese
Slide 21: Kathleen Valley Lithium Equivalency Parameters
Appendix 1: Kathleen Valley Project Additional Information Kathleen Valley For personal use only Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs Li2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2025 – 2040 average price adjusted to FOB) Spodumene $/tonne 739 (B3) US$ (Roskill 2025 –
Slide 22: Kathleen Valley – Underground Mining Assessment
Appendix 1: Kathleen Valley Project Additional Information Kathleen Valley – Underground Mining Assessment Considered on a gold equivalent resource basis, Kathleen Valley would have a grade of ~2.8 g/t and a Resource of ~14 Moz For personal use only Calculation of Gold Equivalent Prices Gold Equival
Slide 23: Kathleen Valley – Underground Mining Assessment
Appendix 1: Kathleen Valley Project Additional Information Kathleen Valley – Underground Mining Assessment For personal use only Company Code Project name Announcement title Announcement date Recovery Grade (g/t)1 Diggers & Dealers 2019 Presentation 5 August 2019 BHP BHP Nickel West2 88% (Ni) 5.96 2
Slide 24: Peer Comparison Information: Global hard rock resources
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information For personal use only Global hard rock (spodumene) resources Company Code Project name Announcement title Announcement date MRE Li2O% Alita Resources Private Bald Hill 121 Mining Conference Presentation 20 March 2
Slide 25: Peer Comparison Information: Global hard rock resources (cont.)
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information For personal use only Global hard rock (spodumene) resources (cont.) Company Code Project name Announcement title Announcement date MRE Li2O% Pilbara Minerals PLS Pilgangoora PLS 2020 Annual Report, AJM Corporate
Slide 26: Peer Comparison Information: Production capacity
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information For personal use only Production capacity Production capacity (ktpa Company Code Project name Announcement title Announcement date 6.0 SC) AVZ Minerals AVZ Manono Investor Presentation 26 May 2021 700 Core Lithium
Slide 27: Peer Comparison Information: Offtake availability
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information For personal use only Offtake availability Offtake Company availability Company code Project name Announcement title Date (ktpa 6.0 SC) AVZ Minerals AVZ Manono Capital Raising Presentation 2 July 2021 1601 Core Li
Slide 28: PFS Key Parameters And Assumptions
Appendix 1: Kathleen Valley Project Additional Information PFS Key Parameters And Assumptions For personal use only General and Economic PFS 1 Cost Assumptions PFS 1 Discount rate (real, post-tax) 8% LOM avg open pit mining costs 3 ($/dmt ore processed) A$43 SC6.0 (US$ per tonne FOB Geraldton) US$73
Slide 29: PFS – Operating & Capital Summary
Appendix 1: Kathleen Valley Project Additional Information PFS – Operating & Capital Summary1 For personal use only Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs 2 5.9 Reagents & Plant Services 16.0 Capital ex
Slide 30: NPV Sensitivity Analysis
Appendix 1: Kathleen Valley Project Additional Information NPV Sensitivity Analysis NPV Sensitivity Analysis (PFS)1 (PFS) 1 For personal use only 1: Prior to termination of KV Royalty – ASX Announcement 2 August 2021. 30 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 31: 2020 Downstream Scoping Study (DSS)
Appendix 1: Kathleen Valley Project Additional Information 2020 Downstream Scoping Study (DSS) Key Parameters And Assumptions 1 For personal use only General and Economic LHM LSM Cost Assumptions LHM LSM Discount rate (real, post-tax) 8% 8% LOM avg operating cost (US$/dmt SC6) 2 US$310 US$310 Ave. P
Slide 32: DSS – Cash Flows
Appendix 1: Kathleen Valley Project Additional Information DSS – Cash Flows For personal use only Integrated Life of Mine Financials1 Capital Costs Summary3 LHM (A$B) LSM (A$B) Main Area LHM (A$M) LSM (A$M) Revenues (lithium) 43.2 32.6 WOF Plant & Mine Dev. 298 298 Operating costs 2, 4 (12.5) (10.4)
Slide 33: NPV Sensitivity Analysis (DSS)
Appendix 1: Kathleen Valley Project Additional Information NPV Sensitivity Analysis (DSS)1 For personal use only 1: Prior to termination of KV Royalty – ASX Announcement 2 August 2021. 33 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 34: DSS | Refinery Flow Sheet
Appendix 1: Kathleen Valley Project Additional Information DSS | Refinery Flow Sheet For personal use only 34 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 35: Appendix: Net-Zero definition
For personal use only APPENDIX 2 Net-Zero definition 35 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 36: Net-Zero Definition
Appendix 2 Net-Zero Definition Liontown will firm up its net-zero trajectory aspiration before FID Selected examples of different “net zero” pathways For personal use only >2°C 2°C “Well below 2°C” 1.5°C There are many Emissions different ways to meet “net (MtCO2e) 2050 2050 2050 2050 zero” by 2050
Slide 37: Appendix: Buldania
For personal use only APPENDIX 3 Buldania 37 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021
Slide 38: Buldania Lithium Project Resource
Appendix 3: Buldania Lithium Project Resource For personal use only Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The MRE complements Liontown’s flagship Kathleen Valley Lithium Project Mineral Resource Estimate – November 2019 Cut-off Resource Million Ta2O5 Li2O% Category Tonnes Li2O% (ppm) 0
Slide 39: For personal use only
For personal use only Level 2, 1292 Hay St West Perth WA 6005 +61 8 6186 4600 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited 39 | LIONTOWN RESOURCES INVESTOR PRESENTATION August 2021