Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Shareholder Meeting (November 2020)
39 slides from Liontown's shareholder meeting presentation, Nov 25, 2020
Slide 1: Kathleen Valley Annual General Meeting
Kathleen Valley For personal use only World class scale & economics with further upside opportunities plus Moora Highlights ANNUAL GENERAL MEETING 25 November 2020 ASX : LTR |17 FEBRUARY 2020
Slide 2: Important Information
Important Information For personal use only COMPETENT PERSON STATEMENT CAUTIONARY STATEMENT The Information in this Presentation that relates to Ore Reserves, Production Target and Pre-Feasibility Study (PFS) for the Kathleen 1 The production targets and forecast financial information referred to in
Slide 3: Project Overview
Project Overview • World-class scale and economics For personal use only • 156Mt @ 1.4% Li2O and 130ppm Ta2O5 Kathleen Valley Lithium Project Kathleen Valley • ~40 year mine life (Lithium-Tantalum) • High grade • Multiple upside opportunities • DFS due Q4 2021 • Emerging mineral province Moora • Une
Slide 4: ESGE - Integral to the Future
ESGE - Integral to the Future E • Commitment to minimise emissions, water For personal use only Environment usage & ground disturbance Environment • Recognition of the Traditional Owners and their S Social connection to country • Meaningful & mutually beneficial engagement Economic Social with other
Slide 5: Kathleen Valley Lithium - Tantalum Project
Kathleen Valley For personal use only Lithium - Tantalum Project WESTERN AUSTRALIA 100%
Slide 6: A Tier Lithium Resource
A Tier 1 Lithium Resource Australian Hard Rock Lithium Operations and Advanced Projects For personal use only 3.00 Li2O Grade % Greenbushes Kathleen Valley Tianqi/Albemarle 2.50 (Liontown 100%) (Li+Ta*) (Li2O only) 2.00 Pilgangoora Mt Marion (Pilbara Minerals) Finnis (Core) (MinRes/Ganfeng) 1.50 Wod
Slide 7: A Globally Significant Deposit
A Globally Significant Deposit World Hard Rock Lithium (Spodumene-dominant) Operations and Advanced Projects % Attributable Resources by Company Ownership For personal use only 14.0 12.0 Liontown owns the world’s 4th largest hard rock (spodumene) lithium resource base 10.0 8.0 LIONTOWN RESOURCES % 6
Slide 8: October 2020 PFS Key Metrics
October 2020 PFS Key Metrics1 Based on May 2020 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 For personal use only NPV2 (Post Tax) A$1.12B IRR 37% Reserve: SC6: 350Ktpa 71Mt @ Payback 3 Years 1.4% Li2O Mining: Ta2O5 (30%): 130ppm Ta2O5 2Mtpa 430tpa Opex3 Years 1 - 10 US$345/dmt (SC6) Opex3 Years LOM US$
Slide 9: Resources & Reserves
Resources & Reserves Mineral Resource Estimate1 – May 2020 For personal use only Cut-off Resource Million Ta2O5 Li2O% Li2O% Category Tonnes (ppm) Measured 20 1.3 140 0.55 Indicated 105 1.4 130 Inferred 32 1.3 110 TOTAL 156 1.4 130 1 Inclusive of Ore Reserve Ore Reserve – October 2020 Million Ta2O5 C
Slide 10: Upside
Upside May 2020 MRE Block Model PFS is a critical step towards the DFS and For personal use only maximising future opportunities • Resource conversion • Resource expansion Open • Throughput increase Open • Potential to produce a premium Open concentrate (>6.5% Li2O) • Downstream processing1 1 Refer
Slide 11: Whole of Ore Float Sheet De-Risks Project Execution
Whole of Ore Float (WOF) Sheet De-Risks Project Execution 2020 Test Work Outcomes For personal use only • WOF produces higher grade concentrate compared with • Tantalum suitable for upgrade to 30% Ta2O5 conventional DMS/Flotation processing concentrate offsite • Ta2O5 recovery of 56% at a concentrat
Slide 12: Downstream Scoping Study Key Metrics
Downstream Scoping Study Key Metrics1 Based on October 2020 PFS METRIC LHM LSM METRIC LHM LSM For personal use only NPV (Post Tax/8% real) A$4.8B A$3.2B LoM Opex (2, 6) US$4,744/t US$2,649/t IRR 41% 35% Price (2025 – 2040)8 US$14,079/t US$6,991/t LOM Free Cash Flow A$19.5B A$13.7B Design Production
Slide 13: Location and Infrastructure
Location and Infrastructure Well serviced and highly active mining region For personal use only Major Ni & Au Goldfields Sealed Airstrips Mines Highway Powerline Town of Leinster Natural Gas Pipeline 13 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 14: Lithium - The irreplaceable element in the electric era
The longer-term fundamentals Lithium – “The irreplaceable remain strong element in the electric era” For personal use only JANUARY 2020 • EU rules begin – heavily penalising carmakers on CO2 emissions MAY 2020 • France to provide €12,000 subsidies to switch out to EVs – Q1 2020 Forecast aims to be #
Slide 15: Timeline
Timeline Consistent delivery of results with targets met or exceeded For personal use only Updated PFS and DSS FEED Early Works/Design Commissioning Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q3 2022 Q3 2023 Q1 2025 Q2 2025 DFS FID Construction Production 15 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOV
Slide 16: Moora Au-PGE-Ni-Cu Project
Moora For personal use only Au-PGE-Ni-Cu Project WESTERN AUSTRALIA 100%
Slide 17: Project Overview
Project Overview Moora is located in an emerging precious and base For personal use only metal mineral province Same geological terrain as the Julimar Ni-PGE-Au discovery by Chalice Gold Mines (ASX:CHN)1 Tenements acquired in 2018 and 2019 as part of generative exploration strategy for battery metal
Slide 18: Mt Yule - Felton Au-PGE Corridor
Mt Yule - Felton Au - PGE Corridor 15km long, 2.5km wide zone with multiple, For personal use only coincident Au-PGE and magnetic anomalies Individual auger assays up to: • 925ppb (0.92g/t) Au • 75ppb Pd+Pt • 492ppm Ni • 884ppm Cu Multiple plus 100ppb (0.1g/t) Au zones Airborne EM survey defines mul
Slide 19: Mt Yule Prospect
Mt Yule Prospect For personal use only 3.6 x 2.2km, multi-element anomaly 19 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 20: Results Continue to Validate Exploration Concept
Results Continue to Validate Exploration Concept For personal use only Phase 1 (Q2/Q3 2020) COMPLETE • Auger sampling – phase 1 • Extend first pass auger sampling to adjacent areas • Airborne EM • Total budget ~ $500,000 Phase 2 (Q4 2020/Q1 2021) • Ground EM (MLEM) – Mount Yule-Felton Corridor (MYFC
Slide 21: Investment Case
Investment Case The only independent “Tier 1” lithium resource in Australia, strengthened by exciting new For personal use only exploration targets Kathleen Valley Moora 156Mt resource/ 40 Year mine life Au-PGE-Ni-Cu Project in an High grade/Low cost emerging mineral province Safe jurisdiction with
Slide 22: Leadership and Key Financials
Leadership and Key Financials For personal use only David Richards Tim Goyder Craig Williams Anthony Cipriano Steven Chadwick Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years • Discovered multi
Slide 23: Thank You
For personal use only Thank You For more information visit www.Itresources.com.au @LiontownRes liontown-resources-limited
Slide 24: Appendix: Kathleen Valley Project Additional Information
For personal use only APPENDIX 1 Kathleen Valley Project Additional Information
Slide 25: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred For personal use only Company Project Stage Global MRE Mt MRE Grade Information Source Mt Mt Mt Kathleen Valley Development 20 105 32 156 1.35 ASX Announcement, 11 May 2020: https://www.ltresources.com.au Liontown R
Slide 26: Lithium Equivalency Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters For personal use only Inputs Outputs LI2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2025 – 2040 average price adjusted to FOB) Spodumene $/tonne 739 (B3) US$ (Roskill 2025 – 2040 average price, adjusted to FOB) Tantalite recovery 50%
Slide 27: Peer Comparison Information
Peer Comparison Information Global MRE %Global Global Attributable For personal use only Company Project (Ownership%) Status Source Li2O% (Mt) Resources May 2019 Resource Update, sourced from 21/4/2020 ASX Hard Rock AVZ Manono (60%) DFS release 240.0 1.7 13.0 https://en.wikipedia.org/wiki/Kings_Moun
Slide 28: Peer Comparison Information
Peer Comparison Information Global Attributable %Global Company Project (Ownership%) Status Source Global MRE (Mt) Li2O% For personal use only Resources North American Lithium NAL website - http://na-lithium.com/projects/, from Oct 12 2012 Hard Rock (CATL) Ganfeng La Corne (100%) Mt Marion (50%) Dev
Slide 29: 2020 PFS v 2019 PFS
2020 PFS v 2019 PFS Key Parameters And Assumptions For personal use only General and Economic 2020 PFS 1 2019 PFS Cost Assumptions 2020 PFS 1 2019 PFS Discount rate (real, post-tax) 8% 8% LOM avg open pit mining costs 3 ($/dmt ore processed) A$43 A$35.12 US$690/dmt LOM avg U/G mining costs ($/dmt or
Slide 30: PFS – Operating & Capital Summary
PFS – Operating & Capital Summary1 For personal use only Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs2 5.9 Reagents & Plant Services 16.0 Capital expenditure Infrastructure – general 53.3 - pre-production 0.3
Slide 31: 2020 Downstream Scoping Study Key Parameters
2020 Downstream Scoping Study (DSS) Key Parameters And Assumptions1 For personal use only General and Economic LHM LSM Cost Assumptions LHM LSM Discount rate (real, post-tax) 8% 8% LOM avg operating cost (US$/dmt SC6) 2 US$310 US$310 Ave. Price (US$/t FOB Fremantle 2025-2040) US$14,079/t 5 US$6,991/
Slide 32: DSS Cash Flows and Capital Costs Summary
Capital Costs Summary3 DSS – Cash Flows LHM LSM Main Area (A$M) (A$M) For personal use only Integrated Life of Mine Financials1 WOF Plant & Mine Dev. 298 298 LHM (A$B) LSM (A$B) DSS Refinery and Infrastructure Revenues (lithium) 43.2 32.6 Plant site/Earthworks 7.1 7.1 Operating costs 2, 4 (12.5) (10
Slide 33: NPV Sensitivity Analysis (PFS)
NPV Sensitivity Analysis (PFS)1 For personal use only 1 Refer Cautionary Statement on Slide 2 33 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 34: NPV Sensitivity Analysis (DSS)
NPV Sensitivity Analysis (DSS)1 For personal use only 1 Refer Cautionary Statement on Slide 2 34 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 35: DSS Refinery Flow Sheet
DSS | Refinery Flow Sheet For personal use only 35 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 36: Appendix: Buldania Lithium Project
For personal use only APPENDIX 2 Buldania Lithium Project (Liontown 100%)
Slide 37: Project Overview
Project Overview Buldania is Located in a Lithium-Rich Mineral Province For personal use only 1 Outcropping, fresh, spodumene-related mineralization Mineralisation at Anna extends to the SE under shallow cover – 2 strike length >1.4km and open 3 Similar geology to the Mt Marion and Bald Hill lithium
Slide 38: Maiden Mineral Resource Estimate
Resource Maiden Mineral Resource Estimate For personal use only 14.9Mt @ 1.0% Li2O The completion of the MRE complements Liontown’s flagship Kathleen Valley Lithium Project 38 | LIONTOWN RESOURCES ANNUAL GENERAL MEETING 2020 NOVEMBER 2020
Slide 39: For personal use only
For personal use only Level 2, 1292 Hay St West Perth WA 6005 +61 8 9322 7431 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited
Liontown Resources — Shareholder Meeting (November 2020) on 6ix