Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Diggers and Dealers Mining Forum 2022
21 slides from Liontown's conference presentation, Aug 3, 2022
Slide 1: Fast charging towards a low carbon future
For personal use only Fast charging towards a low carbon future Diggers and Dealers Mining Forum ASX:LTR August 2022 AUGUST 2022 | 1
Slide 2: Important Information
Important Information For personal use only Cautionary Statement Competent person statement The production targets and forecast financial information referred to in the Definitive Feasibility Study (DFS) The Information in this Presentation that relates to Exploration Results and Mineral Resources f
Slide 3: Agenda
Agenda For personal use only 01. 02. 03. 04. Establishing a Tier-1 Corporate Strategy Lithium Market Kathleen Valley Project Update Funding Strategy 05. 06. 07. 08. Project Execution Downstream Strategy Investment Questions and Timetable Proposition AUGUST 2022 | 3
Slide 4: Foundations Established for a Tier-1 Project
Foundations Established for a Tier-1 Project Tier-1 Offtakes Secured Attractive Financing In Place For personal use only • Offtakes secured for majority of production • Low-cost financing Liontown is focused on the development of the over first 5-years • Creditworthy and strategically aligned world-
Slide 5: Liontown's Strategy
Liontown’s Strategy For personal use only We aim to be an ESG-leader, and a globally significant provider of battery minerals for the rapidly growing clean energy market Liontown Full Potential Downstream Expand portfolio through organic growth, value accretive M&A and Expansion exposure to the circ
Slide 6: ESG Focus
Environment Customers For personal use only • Aspiring to have best-in-class Scope 1 • Automotive OEMs increasingly and 2 emissions to minimise impact demand environmentally-friendly, on local surroundings low-carbon batteries to achieve • ~60% renewable energy target their emissions targets at star
Slide 7: Lithium Demand Breakdown
Lithium Demand Breakdown BCG expects overall lithium demand growth of ~20% p.a. from 2020 to 2035, driven largely from accelerating demand for EV and ESS batteries For personal use only Global forecasted primary lithium demand, 2020-35, kt LCE 7,500 CAGR “The number of consumers looking to buy elect
Slide 8: Lithium Supply Dynamics
Lithium Supply Dynamics Forecast lithium market deficit is expected to continue and grow out to 2030, driven by tight supply. Lithium has been the best performing battery mineral over the last 3 For personal use only months Demand / supply forecast, 2020-35, kt LCE1 Battery Minerals Price Movements,
Slide 9: Spodumene Pricing Evolution
Spodumene Pricing Evolution Spodumene producers are increasingly moving towards formula-based pricing for offtake contracts as a way of determining price and capturing greater margin share within the For personal use only lithium supply chain. Even at current spot spodumene prices, convertors are ma
Slide 10: Kathleen Valley Funded To First Production
Kathleen Valley Funded To First Production Debt facility provided by Ford, along with proceeds from Liontown’s A$463m capital raise in December 2021, For personal use only means Kathleen Valley is now funded to first production A$300m Ford debt facility announced in June Low-cost financing 2022
Slide 11: Kathleen Valley's Capital Intensity
Kathleen Valley’s Capital Intensity Kathleen Valley’s capital intensity has been benchmarked with peers. Liontown has built an experienced team and For personal use only established a Project Committee to manage delivery of the project on budget Capital Intensity of Comparable Projects (US$/tpa)1 Ro
Slide 12: Globally Significant Production Supports Value Upside
Globally Significant Production Supports Value Upside Liontown’s expected production is greater than the majority of development peers, in line with established producers, supporting potential for a material re-rate in market For personal use only value given the de-risked nature of Kathleen Valley,
Slide 13: 2024 Production Target
2024 Production Target For personal use only PROJECT MILESTONES ON SCHEDULE POSITIONED TO DELIVER PROJECT ON SCHEDULE DFS Three A$463m Debt Funding Final Investment Early Works / Construction Complete & NTA Foundational Commission Production Equity Raising Secured Decision Design Complete
Slide 14: Project Execution Strategy
Project Execution Strategy Relentless pursuit of the basics to strive for good safety and execution discipline – The Liontown Way! For personal use only Cost Management Rapid award of key contracts to high-quality vendors with a focus on locking in long lead items • 75% of mechanical equipment by va
Slide 15: Project Execution Strategy – cont.
Project Execution Strategy – cont. Relentless pursuit of the basics to strive for good safety and execution discipline – The Liontown Way! For personal use only Design & Schedule Work to date and continued focus on design positions Liontown to drive hard to execution • Long lead items ordered, mecha
Slide 16: Downstream Strategy
Downstream Strategy The 2021 updated DSS confirmed: Value maximizing pathway for Liontown is a staged-build, integrated mining, processing and refining operation producing downstream lithium For personal use only products Value Maximising Strategically Compelling Full Optionality Value maximising pa
Slide 17: Downstream Strategy – Transitioning The Customer Base
Downstream Strategy – Transitioning The Customer Base Liontown is currently undertaking a pre-feasibility study for development of the downstream operation, which will deliver optionality early on in the project life to capture higher For personal use only margins from a refined lithium product Down
Slide 18: Liontown's Investment Proposition
Liontown’s Investment Proposition For personal use only Near Term Priorities 1 Continue to award major contracts Tier-1 Asset Timed to Perfection (including Power Purchase Kathleen Valley is a world- Significant supply deficits Agreement, freight logistics and bulk class lithium deposit, with foreca
Slide 19: For More Information
For personal use only For More Information: Tony Ottaviano Managing Director +61 8 6186 4600 info@ltresources.com.au Nicholas Read Read Corporate +61 8 9388 1474 nicholas@readcorporate.com.au liontown-resources-limited @LiontownRes AUGUST 2022 | 19
Slide 20: Peer Comparison Information – Capital Intensity
Peer Comparison Information – Capital Intensity For personal use only Annual Spodumene Capital Intensity Company Project Capital Cost (US$m1) Grade (%) Information Source Production (Kt) (US$/t)2 Kathleen Valley ASX Announcement – Investor Presentation Offtake, Funding & Liontown 398 500 6.00% 796 (
Slide 21: Peer Comparison Information – 2024 LCE Production
Peer Comparison Information – 2024 LCE Production For personal use only 2024 Spodumene Production, 2024 LCE Production Company Project Information Source Grade & Ownership (Kt, %)1, 2 (Kt LCE)3 Liontown Resources Kathleen Valley 500kt, 6.0%, 100% 74 ASX Announcement – Kathleen Valley DFS Presentatio
Liontown Resources — Diggers and Dealers Mining Forum 2022 on 6ix