St. George Mining Ltd. · ASX:SGQ
St. George Mining — Emergence 2020
26 slides from St. George Mining's conference presentation, Feb 26, 2020
Slide 1: Commodities for our Future: Nickel-Copper Sulphide Discovery
Commodities for our Future: Nickel-Copper Sulphide Discovery ST GEORGE MINING LIMITED ACN 139 308 973 ASX: SGQ Emergence 2020 Presentation – 26 February 2020
Slide 2: Nickel Sulphide: A future facing commodity
Nickel Sulphide A future facing commodity Elon Musk, CEO of Tesla on lithium-ion batteries: “….lithium is 2% of the cell mass of our batteries……….. really, our batteries should be called nickel graphite batteries as they are mostly nickel and graphite ….” Elon Musk interviewed by Kara Swisher and Wa
Slide 3: Electric Vehicles: Nickel rich battery chemistry is preferred
Electric Vehicles Nickel rich battery chemistry is preferred Nickel-based cathodes are increasingly preferred as they have greater energy density and improve battery performance and range. NCM (811) and NCA batteries – which contain 70 to 80% nickel – will be in 80% of EV’s by 2025. Source: Goldman
Slide 4: EV Megatrend
EV Megatrend Tipping point for mass adoption is approaching • EV sales accelerating with lower cost and increased regulation • Disruptive technologies follow a similar growth path – several years of nurturing the market followed by exponential growth Subsidies and regulation are driving strong deman
Slide 5: Investment Case for Nickel
Investment Case for Nickel Mining is the cheapest way to play the EV theme “One of the most important global trends over the next decade and beyond will be the electrification of mobility, which will have massive ramifications for autos, batteries and the entire upstream battery chain. “We see the m
Slide 6: St George – Value Proposition
St George – Value Proposition ASX: SGQ | St George Mining Limited 26 February 2020 6
Slide 7: St George Mining Limited
St George Mining Limited Growth Nickel Company Our Vision: To create long term shareholder value Our Strategy: To deliver a high-margin nickel mine in Western Australia Our Success: Standout discovery of nickel-copper-cobalt-PGEs at shallow depth in WA’s Goldfields Our Timing: Transformative impact
Slide 8: Primed to Deliver Value
Primed to Deliver Value High-grade discoveries in a great location Mt Alexander – St George’s Flagship Nickel-Copper Sulphide Project Massive sulphide mineralisation discovered Growing nickel inventory - four high-grade 30m from surface and open at depth discoveries with new targets for drilling in
Slide 9: Corporate Overview
Corporate Overview Listed on the ASX – code SGQ Market Capitalisation Directors and Management – Listed Shares (25 Feb 2020) Vision and Experience for Success A$41m 412,611,265 John PRINEAS, Executive Chairman – founding shareholder with over 25 years experience in mining, and the banking and legal
Slide 10: Share Price Performance
Share Price Performance Highly leveraged to nickel price and newsflow SGQ 52-week price Nickel 52-week price H: A$0.245 L: A$0.100 H: US$18,475/t L: US$11,655/t 24 Ni US$20,000/t $0.30 New discovery of massive Ni-Cu 20 $0.25 SGQ share price poised for Ni US$15,000/t potential increase 16 $0.20 Tradi
Slide 11: Nickel Market Dynamics
Nickel Market Dynamics ASX: SGQ | St George Mining Limited 26 February 2020 11
Slide 12: Nickel Outlook: Acceleration of Market Growth
Nickel Outlook Acceleration of Market Growth 3,000 Nickel Production and Consumption • Market doubled from 1995 to 2016 – CAGR 5.8% over 1 million tonnes added – with demand from Chinese economic boom 2,500 Production (kt) CAGR 3.1% during Consumption (kt) 2000-15 Chinese Boom 2,000 • Production and
Slide 13: Electric Vehicle Demand: Reshaping the nickel market
Electric Vehicle Demand Reshaping the nickel market Traditional demand from stainless steel continues to grow at circa. 4-5% p.a. Megatrend in EV and energy storage will see unprecedented demand for Class 1 nickel - i.e. 2,000 kt from sulphide and high quality HPAL plants EV Demand Scenarios F
Slide 14: Nickel Price Outlook
Nickel Price Outlook The next boom is forming $40,000 Ni Price 2019$/t 100-year Average Upturn $35,000 Downturn Potential Boom $30,000 Consensus Forecast Feb 2020 • Price history shows China Potential Boom boom and bust cycles Nickel Price (2019 US$/t) Inflation adjusted Boom ? $25,000 price 2022 •
Slide 15: High-Grade Discovery at Mt Alexander
High-Grade Discovery at Mt Alexander ASX: SGQ | St George Mining Limited 26 February 2020 15
Slide 16: Cathedrals Belt: Exceptional Discovery
Cathedrals Belt Exceptional Discovery Mineralisation from shallow depths • Massive sulphide mineralisation 30m from surface • Intrusive system with potential for significant mineralisation at depth – geological setting similar to large North American mines like Raglan and Eagle High-grade and polyme
Slide 17: World Class Address
World Class Address Next to the majors’ backyard Established Nickel Mining Region Tier 1 mining jurisdiction Western Australia Near major nickel operations, including BHP’s flagship nickel mines Adjacent to Agnew-Wiluna Belt, the most productive nickel belt in WA Foundation for Development Access to
Slide 18: Large Project Area
Large Project Area +200 sq km tenement package with two proven fertile belts Cathedrals Belt East-northeast oriented belt High-grade discoveries at Investigators, Stricklands, Cathedrals and Radar Other sections of the +16km belt are underexplored but highly prospective Potential for repetitions of
Slide 19: Emerging Nickel Camp
Emerging Nickel Camp Four high-grade nickel-copper sulphide discoveries…. and counting Shallow deposits discovered at Investigators, Stricklands, Cathedrals and Radar over a 5.5km strike length of the Cathedrals Belt – mineralisation remains open down-plunge EM surveys underway across unexplored are
Slide 20: 2020 Work Programme
2020 Work Programme Expanding known deposits and making new discoveries Resource Definition: Resource drill-out of shallow deposits at Stricklands, Cathedrals and Investigators Deeper Drilling: Continue testing targets down-plunge of shallow deposits Test underneath extensive gossans observed at Fai
Slide 21: Project Development
Project Development ASX: SGQ | St George Mining Limited 26 February 2020 21
Slide 22: Advancing Towards a Mine
Advancing Towards a Mine Scoping study initiated Scoping study to assess a potential mining proposal for Mt Alexander is underway: • Environmental studies have commenced • Additional consultants to be appointed soon Preliminary Metallurgical Testwork: High Recoveries from Ore: • >99% recoveries of N
Slide 23: Opportunity for Low Cost/High Margin Project
Opportunity for Low Cost/ High Margin Project Key project features support favourable project economics which will be assessed by scoping/feasibility studies Shallow Mineralisation: The location and quality of the Mt Alexander Project presents: Low cost drilling Multiple potential development & pr
Slide 24: St George Mining Limited
St George Mining Limited Creating shareholder value through the development of a high-grade nickel-copper sulphide project in the heart of Western Australia’s Goldfields. Photo: Diamond drilling at Mt Alexander for St George Mining by DDH1 Drilling ASX: SGQ | St George Mining Limited 26 February 202
Slide 25: Competent Person Statement
Competent Person Statement The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Dave O’Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’N
Slide 26: ST GEORGE MINING LIMITED
ST GEORGE MINING LIMITED ACN 139 308 973 ASX: SGQ