Vrx Silica Ltd. · ASX:VRX
Vrx Silica — RIU Sydney Resources Round-up (May 2021)
19 slides from Vrx Silica's conference presentation, May 6, 2021
Slide 1: Supplying Global Demand
For personal use only Supplying Global Demand Presentation May 2021
Slide 2: Important information
Important information For personal use only Disclaimer This document has been prepared by VRX Silica Limited. The information contained in this document is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The in
Slide 3: Investment highlights
Investment highlights For personal use only Only ASX-listed, pure-play silica sand stock with advanced development assets with 100+ year production life 1. 100% owner of three high value Silica Sand Projects in Western Australia - Tier 1 mining region. 2. Multi-decade-scale contiguous sand deposits
Slide 4: Corporate Summary
Corporate Summary For personal use only Capital Structure Share Price 28.5cps * Ordinary Shares on Issue 508 million Options on Issue 69 million Market Capitalisation $145 million* Cash $9 million Debt Nil Person Role Experience Enterprise Value $136 million Governance: Over 30 years experience in i
Slide 5: Sand is the main material that modern cities are made of
For personal use only “Sand is the main material that modern cities are made of ” Vince Beiser “The World in a Grain” 2018 The story of sand and how it transformed Civilisation
Slide 6: Silica sand: the foundation of modern cities
Silica sand For personal use only The foundation of modern cities • Silica sand is the most-used commodity on the planet after air and water. • It is the main ingredient in all types of glassmaking, including specialty solar panel and high-tech glass. • Silica sand is also the main ingredient in con
Slide 7: Silica sand price and demand dynamics
Silica sand price and demand dynamics For personal use only Silica Sand is forecast to increase in price across Asia-Pacific countries in line with rising demand and supply constraints due to depletion and environmental restrictions on dredging Historic and Forecast Silica Sand Pricing Asia Pacific
Slide 8: Demand not met by existing production
Demand not met by existing production For personal use only Key countries in the Asia Pacific region have unmet demand from local production only Asia Pacific Silica Sand Market Largest Net Importers of Silica Sand in Asia Pacific Region Silica sand (millions of tonnes) Silica (thousands of tonnes)
Slide 9: Silica Sand – World Class Portfolio
Silica Sand – World Class Portfolio For personal use only Project development pipeline to ensure disciplined, staged development of world-class assets • 100% ownership • Three large scale, high grade and low impurity silica sands projects – Arrowsmith North, Arrowsmith Central and Muchea • Each proj
Slide 10: Arrowsmith North
Arrowsmith North For personal use only Arrowsmith North Capex Near-term development opportunity on a world-class silica sand project • Production forecast to commence in late CY2021 • 25 years’ production with potential for 100+ year minelife • 223Mt ore reserve @99.7% SiO2 • ~$30m for simple “off t
Slide 11: Arrowsmith North timeline
Arrowsmith North For personal use only To date Next steps 2021 Arrowsmith North • Bankable Feasibility • Finalise offtake Study complete agreements TIMELINE • Mining Lease granted • Miscellaneous Licences • Results from completed grade control drilling Commence Commence Construction Production for a
Slide 12: Muchea
Muchea For personal use only Large scale, high-grade and low impurity silica sand project Muchea Capex • Construction/Production forecast to commence late 2022 • 99.9% SiO2 - Fe2O3 <100ppm after processing • Access to the premium ultra-clear glass market • Off-the-shelf mining method and ~$30m plant
Slide 13: Muchea timeline
Muchea For personal use only To date Next steps 2021-23 Project Timeline • Bankable Feasibility • Grade control drilling Study complete POW application • Native Title agreement • Finalise and submit EPA TIMELINE in place referral Commence Commence • Mining lease granted • Secure offtake Construction
Slide 14: Exceptional Project Economics
Exceptional Project Economics For personal use only All three projects have exceptional standalone economics over the first 25 years* Arrowsmith Arrowsmith Muchea North Central $338 M $242 M $148 M $28.3 M $32.8 M $25.9 M NPV Capex NPV Capex NPV Capex IRR 79% IRR 60% IRR 83% *Full details of the ban
Slide 15: Processing Flowsheet identical across all three projects
Processing Flowsheet identical For personal use only across all three projects Simple processing, no chemicals and no dust, 2mtpa processing plant at each site Processing Plant Design Loader Feeder Trommel Screening Attritioning Cells Classifier ▪ Arrowsmith North, Arrowsmith Central and Muchea to e
Slide 16: Responsible Mining – The VRX Way
Responsible Mining – The VRX Way For personal use only A made-for-purpose mining method designed around instant rehabilitation • VRX has developed a unique and progressive mining method for its silica sand projects • The Vegetation Direct Transfer (VDT) method lends itself to rapid and extensive reg
Slide 17: Sustainability: Environmental, Social and Governance (ESG)
Sustainability For personal use only Environmental, Social and Governance (ESG) VRX is delivering on its ESG responsibilities aligned to the UN’s Sustainable Development Goals CLEAN ENERGY ECONOMIC INDUSTRY SUSTAINABLE RESPONSIBLE CLIMATE REHABILITATION GROWTH INNOVATION COMMUNITIES PRODUCTION ACTIO
Slide 18: The right place to mine and the right time to invest
The right place to mine and For personal use only the right time to invest 1. Access to very long life, high-grade 100% owned silica sand supply 2. Access to the lucrative high-tech ultra clear glass market 3. No restrictions on export from a low sovereign risk country 4. Strong offtake interest fro
Slide 19: Thank you
For personal use only Thank you Bruce Maluish Managing Director Level 1, 6 Thelma Street West Perth WA 6005 Phone: 08 9226 3780 Email: brucem@vrxsilica.com.au
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