Vital Metals Ltd · ASX:VML
Vital Metals — Shareholder Meeting (November 2019)
28 slides from Vital Metals's shareholder meeting presentation, November 2019
Slide 1: AGM Presentation November 2019
For personal use only AGM Presentation November 2019 ASX:VML Investor Presentation – November 2019 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward looking statements are all statements other than statements of historical fact included in this
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Vital Metals Limited (ASX:VML) is an explorer and developer focussing on rare earths, with projects located in Canada and Tanzania Capital Structure Board of Directors ASX Code VML Geoff Atkins Managing Director Shares on Issue 2.142m Frances Harper Chairman
Slide 4: Rare Earths – Strategic Resources
Rare Earths – Strategic Resources For personal use only Military Strategic Resources • Jet engines, submarines, advanced weapons systems (lasers and satelites), communication networks and computing. • Military’s night-vision goggles, GPS equipment, batteries, and other defence electronics also utili
Slide 5: REO Supply Risk
REO Supply Risk For personal use only Rare Earths Entering Supply/Demand Imbalance Annual development of new mines will be required from 2020 • 2011 price spike (up to 50x current prices) resulted in approximately a 20% reduction in demand due to concerns over supply security • Reduced prices post-2
Slide 6: First Mover Advantage
First Mover Advantage For personal use only Rare Earths Entering Supply/Demand Imbalance Annual development of new mines will be required from 2020 • To meet global rare earth demand, new mines with production of 20,000t REO per year are required by 2021 • To achieve this, projects of this size woul
Slide 7: Lanthanum and Neodymium
Lanthanum and Neodymium For personal use only Lanthanum and Neodymium Supply/Demand Imbalance • Demand for both neodymium and lanthanum is forecast to grow significantly from 2021 • With new projects typically taking 2-4 years to reach production, there is a risk of significant supply/demand imbalan
Slide 8: Board and Management
Board and Management For personal use only The right people with the ability to execute Geoff Atkins - Managing Director • Civil Engineer with over 20 years of project and corporate development experience across commercial, industrial, mining and infrastructure sectors, with responsibility for drivi
Slide 9: Traditional Rare Earths Project Development Model
For personal use only Traditional Rare Earths Project Development Model Investor Presentation – November 2019 9
Slide 10: Traditional Development Strategy
Traditional Development Strategy For personal use only Investor Presentation – November 2019 10
Slide 11: Long Lead Times for REO Projects
Long Lead Times for REO Projects For personal use only • Due to the specialised nature of rare earths are subject to a rigorous customer acceptance process which commences with plant commissioning • Between plant commissioning and customer acceptance it may be 4-5 years before all production of a la
Slide 12: REO Projects developed by Junior Explorers
REO Projects developed by Junior Explorers For personal use only Traditional Rare Earth Development Strategy • Green field rare earth projects will typically be developed by junior mining companies • Typically the largest possible project will be developed • Capital costs will often exceed $500M and
Slide 13: First Mover Advantage
For personal use only First Mover Advantage To be a successful rare earth company for shareholders you mustThe haveVital the following:The ‘right’ peopleA different Metals Strategy approach to development The projects which meet defined strategic criteria Investor Presentation – November 2019 13
Slide 14: Vital Metals Development Strategy
Vital Metals Development Strategy For personal use only Investor Presentation – November 2019 14
Slide 15: Scale Operations with Customer Acceptance
Scale Operations with Customer Acceptance For personal use only • Matching production capacity to customer acceptance volumes • Target annual production growth to match acceptance ramp up • Minimise initial capex to reduce shareholder dilution Investor Presentation – November 2019 15
Slide 16: REO Project Myths
REO Project Myths For personal use only The quality of a resource is more important than the size • A typical project will not process more than 5Mt of ore over a 20 year mine life. Ease of processing is more important than grade • A low grade deposit with clearly defined rare earth mineral crystals
Slide 17: Mineralogy better than Grade
Mineralogy better than Grade • For personal use only High Grade REO ore from Mt Weld (LHS), Wigu Hill and Nechalacho (RHS) • LHS waste not distinguishable from REO ore • RHS high grade REO ore easily distinguishable (Crystals / Red Bastnasite Ore) • Amenable to Ore Sorting for initial concentration
Slide 18: Nechalacho Canada
For personal use only Nechalacho Canada Investor Presentation – November 2019 18
Slide 19: Nechalacho REO Project - Canada
Nechalacho REO Project - Canada For personal use only (100% of Upper Zone) Large World Class REO Resource • 149.30MT at 1.43% REO (indicated and inferred) Tier 1 Mining Jurisdiction Excellent infrastructure • Located 100km from Yellowknife • 40 person camp with air strip • Barge access in summer Ice
Slide 20: Target Light Rare Earths Zone
Target Light Rare Earths Zone For personal use only (100% of Upper Zone) Initial Targets North T and Tardiff Zones • Small higher grade starter pits targeting Bastnasite Mineralisation • Current Resource ~ 3.2mt at 2.4% TREO Bastnasite mineralisation • Amenable to concentration via ore sorting • No
Slide 21: For personal use only
For personal use only Investor Presentation – November 2019 21
Slide 22: The Nechalacho Rare Earth Project
The Nechalacho Rare Earth Project For personal use only Containing a historical NI43-101 Resource of 149Mt@1.42% REO Nechalacho Upper Zone Resource Type Mt TREO (%) HREO (%) HREO/TREO Indicated 47.21 1.52% 0.15% 10.11% Inferred 102.09 1.38% 0.13% 10.01% Indicated and Inferred 149.3 1.42% 0.14% 10.07
Slide 23: First Mover Advantage
For personal use only First Mover Advantage To be a successful rare earth company for shareholders you must have the following: To be •a The ‘right’ people successful rare earth company for shareholders • A different approach to development you must have the following:The Wigu Hill ‘right’ peopleA d
Slide 24: Wigu Hill REO Project (Tanzania) (90%)
Wigu Hill REO Project (Tanzania) (90%) For personal use only Excellent infrastructure Potential to be a large world class resource • Rail and Power within 10 km of project • Current high grade resource of 3.3Mt at 2.6% REO Previous Owners spent US$10m+ Mineralise widespread over entire hill with onl
Slide 25: Target Light Rare Earths Zone
Target Light Rare Earths Zone For personal use only Bastnasite mineralisation Initial concentration done on site only • Amenable to concentration via ore sorting • Barge high grade concentrate to off site • No water or reagents required location for “cracking” Investor Presentation – November 2019 2
Slide 26: The Wigu Hill Project
The Wigu Hill Project For personal use only Contains a historical NI43-101 Resource of 3.3Mt@2.6% REO TREO Pr6O11 Nd2O3 Zone Mt La2O3 % CeO2 % (%) (%) (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5 3.6% 1.33% 1.71% 0.13% 0.3% Tembo NW 0.9 2.2% 0.78% 1.09% 0.09% 0.23% Tembo SE 0.2 2.2% 0.6
Slide 27: Next Steps
Next Steps For personal use only FY 2020 Development Strategy - Nechalacho Project Conversion from Project development Development Foreign Estimate to details Timelines JORC Resource Q4 Q1 Q1 Ongoing Q1 Q1 2019 2020 2020 2020 2020 Proposed process Off-take discussions Operating and Capital flow shee
Slide 28: Contact
For personal use only Contact Geoff Atkins Managing Director vital@vitalmetals.com.au +61 8 6555 2950 Investor Presentation – November 2019 28