Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (November 2022)
39 slides from Perpetua Resources's investor presentation, November 2022
Slide 1: Perpetua Resources Investor Presentation – November 2022
Investor Presentation – November 2022 N A S DAQ : P P TA T SX : P P TA Perpetua Resources Responsible Mining. Critical Resources. Clean Future.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Information and statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the
Slide 3: Cautionary Note & Technical Disclosure
CAUTIONARY NOTE & TECHNICAL DISCLOSURE The presentation has been prepared by Perpetua Resources management and does not represent a recommendation to buy or sell these securities. Investors should always consult their investment advisors prior to making any investment decisions. All references to “d
Slide 4: Why Perpetua Resources?
WHY PERPETUA RESOURCES? ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition and for
Slide 5: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT Our goal is to take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project helping power a lower carbon future through critical mineral production. 5
Slide 6: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1 Independent Gold Project Mineral Reserves1 2 Perpetua (Stibnite) 4.8 Castle Mountain 4.2 Marigold 3.4 Round Mountain 3.0 Haile 2.6 Bald Mountain 0.8 0.0 1.0 2.0 3.0 4.0 5.0 2021 Year-End Mineral Reserves - Gold (Moz) Source: Latest available company mat
Slide 7: High-Grade, Open Pit Gold Deposit
HIGH-GRADE, OPEN PIT GOLD DEPOSIT Independent Open Pit Gold Deposits1 2 Perpetua (Stibnite) Yrs 1-4 2.2 Haile 1.6 2 Perpetua (Stibnite) LoM 1.4 Goldfield 1.0 Gold Bar 0.8 Round Mountain 0.7 Wharf 0.6 Bald Mountain 0.6 0.00 0.50 1.00 1.50 2.00 2.50 2021 Year-End Mineral Reserves - Gold Grade (g/t) So
Slide 8: Poised to Be One of Largest U.S. Gold Mines
POISED TO BE ONE OF LARGEST U.S. GOLD MINES Independent Producing Gold Mines1 3 Perpetua (Stibnite) Yrs 1-4 463 3 Perpetua (Stibnite) LoM 297 Round Mountain 257 Marigold 235 Bald Mountain 205 Haile 190 Wharf 91 0 50 100 150 200 250 300 350 400 450 500 2021 Annual Gold Production2 (koz) Source: Lates
Slide 9: Lowest Quartile All-In Sustaining Costs
LOWEST QUARTILE ALL-IN SUSTAINING COSTS 1 Among lowest cost North American developers… …and lowest cost relative to senior producers 3 3 Perpetua (Stibnite) Yrs 1-4 $438 Perpetua (Stibnite) Yrs 1-4 $438 3 Perpetua (Stibnite) LoM $636 Perpetua (Stibnite) LoM 3 $636 Skeena (Eskay Creek) $652 Barrick $
Slide 10: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE 1 $2,350 $4,603 $2,943 Gold Price (US$/oz) $2,100 $3,815 $2,404 $1,850 $3,026 $1,864 $1,600 $2,232 NPV at 0% $1,320 NPV at 5% $1,350 $1,434 $771 Perpetua Mkt Cap2 $160 Current Mkt Cap2 Only 9% of NPV2 (5
Slide 11: U.S. Critical Minerals Supply Chain Risk
U.S. CRITICAL MINERALS SUPPLY CHAIN RISK USES FOR ANTIMONY “Critical Minerals” are metals and non-metals essential to economic and national security Energy and are vulnerable to supply chain disruptions World Antimony 2021 Production (USGS) CRITICAL Flame Ceramics Turkey Other Australia Bolivia Reta
Slide 12: Expected to Average ~35% of U.S. Demand
EXPECTED TO AVERAGE ~35% OF U.S. DEMAND1,2 Stibnite Gold Project Recovered Antimony2 60,000,000 50,000,000 2021 U.S. Annual Consumption1 40,000,000 Antimony (lbs) 51% 30,000,000 44% 33% 34% 20,000,000 21% 15% 10,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Stibnite Gold Project - Year of Oper
Slide 13: Perpetua to Power Ambri's Low-Cost Battery
PERPETUA TO POWER AMBRI’S LOW-COST BATTERY Agreement to supply only responsible & domestically mined source of antimony for stationary, long duration, daily cycle energy storage enabling the transition to cleaner energy SUPPLY AGREEMENT 1: • Current commitment of Perpetua’s antimony can power over 1
Slide 14: Restoring an Abandoned Brownfields Site
RESTORING AN ABANDONED BROWNFIELDS SITE ENVIRONMENTAL SOLUTIONS FUNDED THROUGH MINE DEVELOPMENT SEDIMENTATION METAL LEACHING BLOCKED FISH MIGRATION Early repair of the largest Pick up, reprocess, reuse and Re-establish fish migration and provide source of sedimentation safely store 10.5M tons of tem
Slide 15: Path Forward for the Stibnite Gold Project
PATH FORWARD FOR THE STIBNITE GOLD PROJECT1 U.S. Forest Service identified Perpetua’s Proposed Plan as Preferred Alternative2 in Supplemental EIS 2024 2027 Construction Commercial operations Early 2024 Decision and ongoing restoration Ancillary permits and Project Financing Late 2023 / Early 2024 Fi
Slide 16: NEPA Scope Narrowed Following SDEIS
1 NEPA SCOPE NARROWED FOLLOWING SDEIS 2022 Supplemental Preferred Alternative 2020 DEIS Identified DEIS Modified Mine Plan – Burntlog Route Modified Mine Plan – Burntlog Route Plan of Restoration and Operations (PRO) Alternative Alternative Modified Mine Plan - Johnson Creek 2022 SDEIS Preferred Alt
Slide 17: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Anticipated Milestones1: ✓ Signed agreement to begin legacy waste cleanup (Jan 2021) ❑ SDEIS Comment Period Closes (January 2023) ✓ US listing on NASDAQ approved (Feb 2021) ❑ Final Environmental Impact Statement & Draft Record of Deci
Slide 18: Valuation Expected to Re-Rate Once Permitted
VALUATION EXPECTED TO RE-RATE ONCE PERMITTED 100% Pre-Permitting Permitted Market Cap As % of Spot NAV3,4 68% 50% 43% 35% 37% 27% 9% 10% 0% 1,2 Perpetua Integra Ascot Artemis Skeena Marathon NovaGold 1. Perpetua Resources market cap based on fully diluted market cap using closing price as of Novembe
Slide 19: A Unique American Opportunity
A UNIQUE AMERICAN OPPORTUNITY ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition a
Slide 20: Appendix
Perpetua Resources Appendix
Slide 21: Antimony-Based Liquid Metal Batteries
ANTIMONY-BASED LIQUID METAL BATTERIES ABOUT AMBRI: • Combining technological innovation with commercial application to store energy longer, in a scalable way that will change the way power grids operate • Low-cost battery comprised of a liquid calcium alloy anode, a molten salt electrolyte and a cat
Slide 22: Valuation Upside Through ESG Premium
VALUATION UPSIDE THROUGH ESG PREMIUM Trading Comparables – EV / EBITDA PERPETUA’S UNIQUE VALUE PROPOSITION: 21.6x • Strategic partnership with Ambri significantly increases strategic and long-term value 14.9x • Antimony by-product to power batteries for long duration, daily cycling energy storage •
Slide 23: Diverse, Experienced Leadership Team
DIVERSE, EXPERIENCED LEADERSHIP TEAM EXECUTIVE TEAM Laurel Sayer Jessica Largent Mckinsey Lyon Alan Haslam Michael Bogert Tanya Nelson Board Director & CEO Chief Financial Officer VP, External Affairs VP, Permitting General Counsel VP, Human Resources CORPORATE BOARD Marcelo Kim Bob Dean David Deisl
Slide 24: Idaho: A Premier Mining Jurisdiction
IDAHO: A PREMIER IDAHO Lucky Friday Mine MINING JURISDICTION Golden Chest Mine Idaho Strategic Resources Coeur d’Alene Hecla Mining Galena Complex Sunshine Mine Americas Gold and Silver Sunshine Silver Stibnite Gold • Top 10 Mining Jurisdiction in the World* Project (Au-Sb) Perpetua Resources Beartr
Slide 25: Changing the Face of Mining
CHANGING THE FACE OF MINING STRONG ENVIRONMENTAL, SOCIAL & GOVERNANCE PRINCIPLES BUILT INTO 67% 2020 CORE BUSINESS PLANS of executive Laurel Sayer named CEO ✓ Community Agreement signed in 2018 management are of Perpetua Resources ✓ Adopted ESG policy in 2019 female Corp & Perpetua Resources Idaho ✓
Slide 26: Improving a Legacy
IMPROVING A LEGACY P L A N D ES I G N E D W I T H P O ST M I N I N G R ESTO R AT I O N G OA L S I N M I N D, I N C LU D I N G W I L D L I F E , F I S H E R I ES & D I S P E RS E D R EC R EAT I O N • Create a self-sustaining natural environment • Support healthy fish and wildlife population • Signifi
Slide 27: Net Environmental Benefits Identified in SDEIS
NET ENVIRONMENTAL BENEFITS IDENTIFIED IN SDEIS Increases Access to Fish Habitat: Improves Water Quality and Mitigates Effects on Water Temperature: ✓ Permanent, regional, and beneficial effect on Chinook salmon, steelhead, bull trout and westslope cutthroat trout ✓ Greatly reduced the volume and dur
Slide 28: Extensive Stakeholder Engagement
EXTENSIVE STAKEHOLDER ENGAGEMENT 2016: Perpetua submits 2019: Perpetua 2020: Perpetua Plan of Restoration and submits Modified PRO submits refined Operations (PRO) to USFS (ModPRO) to USFS ModPRO2 to USFS 6 years of environmental study and 4+ years of additional public input and gathering public fee
Slide 29: Permitting – Next Steps
PERMITTING – NEXT STEPS NOA for DEIS In Federal EIS Project Alternatives & Register Submittal Administrative Pre-work Initiation & Environmental Prepare of PRO Approval & Planning Public Scoping Analysis Draft EIS DEIS Comment Period We are here Engineering & Design NOA for FEIS & Draft ROD Publish
Slide 30: Exploration Upside
EXPLORATION UPSIDE* EXPANSIVE LAND PACKAGE EXISTING DEPOSITS: • Northeast of Yellow Pine Deposit • Below Hangar Flats pit & Old Defense Minerals Exploration Act (DMEA) working area • West End along strike and at depth P R I O R I T Y E X P LO R AT I O N TA RG E T S : • High grade targets (Garnet, Sc
Slide 31: Mineral Resources & Reserves
MINERAL RESOURCES & RESERVES 1 Proven & Probable Mineral Reserves2: Measured & Indicated Mineral Resources3: 4.8 Mozs Gold @1.43 g/t 6.0 Mozs Gold @1.42g/t 148 Mlbs antimony at 0.06% contained in 104 Mt 206 Mlbs antimony at 0.07% contained in 132 Mt 3.500 Gold M&I Mineral Resource Gold (thousands ou
Slide 32: Ore Processing
ORE PROCESSING FLOW SHEET Crushing, SAG Dore metallurgical recoveries & Ball Milling • Gold at 68% - 91% (88.9% average) • Silver at 23.2% Average High Sb Antimony Stibnite Flotation Sulfide Concentrate Antimony concentrate metallurgical recoveries 1, 2 • Antimony at 84% - 91% (89.5% average) Low Sb
Slide 33: Feasibility Study – Highlights
FEASIBILITY STUDY – HIGHLIGHTS1 Early Production Life-of-Mine Notes: Component 1. In this presentation, “M” = Years 1-4 Years 1-15 million, “k” = thousand, all Total Recovered Gold 1,853 koz 4,238 koz amounts in US$, gold and silver reported in troy ounces (“oz”) Total Recovered Antimony 74 Mlbs 115
Slide 34: Feasibility Study - Capital Cost Summary
FEASIBILITY STUDY - CAPITAL COST SUMMARY Initial Sustaining Closure Total Notes: Area Detail CAPEX CAPEX CAPEX CAPEX 1. Initial mining CAPEX includes environmental remediation costs. (M $) (M $) (M $) (2) (M $) 2. Closure and mitigation assume self-performed costs, which will Mine Costs (1) 84 119 -
Slide 35: Feasibility Study - Operating Cost Summary
FEASIBILITY STUDY - OPERATING COST SUMMARY Years 1-4 Life of Mine Total Production Cost Item Notes: ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) 1. Cash costs and All-in Sustaining Mining 9.71 156 8.22 205 Costs are non-GAAP measures. See “Non-GAAP measures” at the Processing 13.13 211 12.76 318 en
Slide 36: Annual After-Tax Cash Flow (@ $1,850 Gold Price)
ANNUAL AFTER-TAX CASH FLOW (@ $1,850 GOLD PRICE) 1 1. Based on the 2020 Feasibility Study (FS) which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is subject to the assumptions, exclusions and qualifications cont
Slide 37: Supportive Shareholder Base
SUPPORTIVE SHAREHOLDER BASE SHAREHOLDERS** Loews Eidelman Virant Nokomis * CAPITAL STRUCTURE 1.9% 1.8% 1.5% RESEARCH COVERAGE B Riley ❖ Issued & Outstanding 62.99 Million 4.6% ❖ B. Riley Financial – Lucas Pipes Sun Valley Gold ❖ Options 1.96 Million 7.3% ❖ H.C. Wainwright – Heiko Ihle Paulson Kopern
Slide 38: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with NI 43-101 under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”). Independent QPs for the FS include: Richard Zimmerman, SME-RM (onsite and offs
Slide 39: Non-GAAP Measures
NON-GAAP MEASURES NON-GAAP MEASURES To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose certain projected non-GAAP financial measures. The projected non-GA
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