Slide 1: Kathleen Valley Lithium Project Scoping Study Outcomes
FEBRUARY 2019 A S X : LT R Kathleen Valley Lithium Project Scoping Study Outcomes 1
Slide 2: Important Information
Important Information Forward Looking Statements This Presentation may include statements that could be deemed “forward-looking statements”. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaran
Slide 3: Next Generation Lithium Producer
Next Generation Lithium Producer Kathleen Valley Lithium Project Maiden Mineral Resource: • Scoping study confirms potential for a commercially • 21.2Mt @ 1.4% Li2O and robust mining operation 170ppm Ta2O5 • Resource expansion drilling in • 75% Measured and Indicated progress aimed at significantly
Slide 4: Scoping Study Supports Potential To Develop A Standalone Lithium Mining And Processing Operation
Scoping Study Supports Potential To Develop A Standalone Lithium Mining and Processing Operation Base Case 2Mtpa (Li & Ta) NPV(8%, real, post tax) A$421M (Range of A$316 to A$526M) IRR 38% Open Pits Payback <3 years Mine Life 9 years Average LOM Opex ~A$428/t conc. (net of Ta credits) Annual Product
Slide 5: Financial Sensitivity – Robust Project
Financial Sensitivity – Robust Project Kathleen Valley Project - NPV Sensitivity Analysis (A$M) A$421M Base Case Spodumene Base Case Price (US$550-750/t) 253 588 Exchange Rate (AUDUSD$0.80-0.64) 301 571 Li Grade Flex (+/-10%) 323 518 Operating Cost Flex (+/-15%) 331 510 Li Recoveries (74-84%) 358 48
Slide 6: Cash Flow Profile <3 Year Payback Period
Cash Flow Profile <3 Year Payback Period A$M A$ Revenues and Net Cashflows (After Tax) 1,000 800 600 400 200 - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 (200) Revenue A$m (400) Net cashflow after tax A$m Cumulative net cashflow after tax A$m Scoping study suggests Life of Mine free cash flow of ~A$762M 6
Slide 7: Cash Flow Per Year
Cash Flow Per Year Scoping study suggests average free cash flow of >A$100M per year A$M Net Cashflow After Tax A$M per Year 200 150 100 50 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y1 -50 -100 -150 -200 -250 -300 7
Slide 8: Resources and Mining
Resources and Mining Global resource 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5 75% Measured and Indicated Scoping study Production Target of 15.7Mt @ 1.26% Li2O and 154ppm Ta2O5 Open pits largely constrained by limit of data Conventional open pit mining and processing Favourable location close to establis
Slide 9: Metallurgy and Flowsheet – Preliminary Test Work Confirms Saleable Concentrate
Metallurgy And Flowsheet – Preliminary Test Work Confirms a Saleable Li2O Concentrate Can Be Produced Key outcomes • 5.9% Li2O from DMS conc. • 36% mass rejection from 2-stage DMS • 5.5% Li2O from flotation • Low iron (<0.5% Fe2O3) • Predicted 79% Li2O recovery • Preliminary Ta2O5 conc. Preliminary
Slide 10: Next Steps – Unlocking Further Value
Next Steps – Unlocking Further Value Resource Growth : • ~16,000m RC drilling program in progress • Testing immediate extensions of block model • Targeting additional 8.5 – 16Mt @ 1.2 – 1.5% Li2O* • Potential to significantly increase mine life Metallurgy • Optimise unit processes to produce 6% Li2O
Slide 11: High Grade Compared With Most Peers - Plus Potential to Grow
High Grade Compared With Most Peers - Plus Potential to Grow 2019 2018 Development Production * Resources as at 24 January 2019 (Sourced from company websites) 11
Slide 12: Investment Case
Investment Case Robust, high grade resource First world location and expertise Active, well serviced mining region Conventional mining and processing Resource upside – 16,000m RC drilling program in progress Strong focus on optimising recoveries – further test work in progress Very experienced, well
Slide 13: A Proven, Experienced Board / Corporate Snapshot
A Proven, Experienced Board DAVID RICHARDS TIM GOYDER CRAIG WILLIAMS ANTHONY CIPRIANO STEVE CHADWICK Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years experience experience experience experience
Slide 14: Connect
EMAIL WEBSITE: OFFICE PHONE NUMBER info@ltresources.com.au www.ltresources.com.au Level 2, 1292 Hay St 08 9322 7431 West Perth WA 6005 CONNECT https://au.linkedin.com/company/liontown-resources-limited https://twitter.com/LiontownRes 14
Slide 15: Appendix
APPENDIX 15
Slide 16: Scoping Study – Key Parameters and Assumptions
Scoping Study – Key Parameters And Assumptions Parameter Parameter General and Economic Cost Assumptions Discount rate (real, post tax) 8% LOM average open pit mining costs A$37.72 ($/t ore mined) Spodumene concentrate price US$650 per tonne FOB LOM average processing cost Tantalum concentrate price
Slide 17: Scoping Study – LoM Financials and Capital Expenditure
Scoping Study – LoM Financials And Capital Expenditure Life of Mine Financials Capital Costs Summary A$M Main Area Capital (A$M) Revenues 2,802 Treatment Plant 82.8 Operating costs (1,236) Reagents & Plant Services 9.5 Infrastructure – general 39.9 Capital expenditure Mining 6.1 - pre-production (23
Slide 18: Scoping Study – Production and Costs
Scoping Study – Production And Costs Production and Costs 400 800 701 350 660 700 300 570 600 616 537 520 525 Conc. Production (kt) Opex (A$t/conc) 250 552 468 500 468 391 200 434 433 438 400 377 293 150 300 310 100 200 191 50 100 169 348 351 357 356 372 355 356 149 - - Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 S
Slide 19: Scoping Study – Grade Profiles
Scoping Study – Grade Profiles LOM Lithium and Tantalum Grade Profile 1.60% 189 200 174 169 180 1.40% 163 156 160 Lithium Grade (%Li2O) Tantalum Grade (ppm Ta2O5) 1.20% 142 142 133 133 140 1.00% 120 0.80% 100 1.42% 1.26% 1.26% 1.32% 1.26% 1.26% 0.60% 1.23% 1.24% 80 1.20% 60 0.40% 40 0.20% 20 -- - -
Slide 20: Scoping Study – Production Classification
Scoping Study – Production Classification Production Classification by Year 2.5 50% 45% 2 40% 35% 1.5 30% Tonnes (Mt) 25% 1 20% 15% 0.5 10% 5% 0 0% Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Unclassified Inferred Indicated Measured Percentage Inferred 20
Slide 21: Exploration Target Parameters and Assumptions
Exploration Target Parameters and Assumptions Kathleen’s Corner Kathleen’s Corner Parameter Mt Mann Rationale (NW) (SE) Combined strike length 700 – 800m 300 200 of pegmatites Based on previous drilling Average cumulative true and extrapolation of block 12 – 20m 12 -18m 10 - 15m model used in prepar
Slide 22: Liontown
Liontown W @LiontownRes in liontown-resources-limited € www.I|tresources.com.au