Savannah Resources Plc · LSE:SAV
Savannah Resources — Investor Presentation (April 2021)
31 slides from Savannah Resources's investor presentation, April 2021
Slide 1: Europe's Leading Conventional Lithium Project
Europe’s Leading Conventional Lithium Project 1
Slide 2: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Highlights
Highlights Low-carbon lithium production with the 1st announced European offtake agreement1 European gigafactory pipeline (GWh)2 1 Largest conventional lithium project in Europe 610 478 2 Target to be Europe’s first major lithium producer 3 Significant growth opportunities 58 4 Offtake and project l
Slide 4: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 4
Slide 5: Management
Management Significant experience in natural resources David Archer Chief Executive Officer Over 30 years’ mining experience Outstanding track record of successful public company development – resources, telecommunications, oil & gas CEO of ASX quoted Savage Resources - developed from small IP
Slide 6: Introduction to Savannah Resources
Introduction to Savannah Resources Europe’s leading conventional lithium development company Lithium development company Offtake agreement and project-level investment LSE listed lithium development company with headquarters in London Announced Head of Terms with the European integrated energy g
Slide 7: Enhanced focus on the European battery value chain
Enhanced focus on the European battery value chain Savannah is in the right place at the right time The European Commission has: o Created the European Battery Alliance and the European Raw Material Alliance o Created platforms for private investments into sector (SAV supported by EIT InnoEnergy)
Slide 8: Company history
Company history Determined to work towards the future needs of a greener world 2010 The Company was listed on the AIM as African Mining & Exploration plc Acquired 80% interest in Mozambique mineral sands project 2013 Company name changed to Savannah Resources 2015 Landmark joint venture with R
Slide 9: ESG
ESG Sustainable mining is key when developing lithium for the energy transition Environmental Social Governance Extracted lithium will remove 100 Mt of CO2 from the Mina do Barroso Project is expected to create 200+ The Board of Directors’ incentives are aligned with EU transport sector1 long-
Slide 10: Opportunities to further enhance ESG profile
Opportunities to further enhance ESG profile Target: to create a premium, carbon-neutral lithium concentrate in the EU Building on Savannah’s Green and Smart mining initiative, several opportunities have been identified to further reduce the carbon footprint of the Mina do Barroso operation Stud
Slide 11: Positioned as one of the world's lowest cost producers of lithium raw material
Positioned as one of the world’s lowest cost producers of lithium raw material Low cash cost secures cash flow in low cycles Total cost curve for estimated 2025 production (LCE) Comments 11,000 The chart illustrates a combination of current producers and most likely 10,000 projects to be realised
Slide 12: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 12
Slide 13: Mina do Barroso
Mina do Barroso Largest conventional lithium project in Europe Europe’s largest resource of hard rock spodumene lithium extracted with Key scoping study results conventional technology ensures low development risk Development CAPEX (excluding contingencies) USD 109m Features a 30-year mining lea
Slide 14: Multiple lithium deposits across the 30 year mining lease
Multiple lithium deposits across the 30 years c-100 mining lease1 Key deposits and targets Pegmatite quarrying taking place on Block A The acquisition of the additional Aldeia Mining Lease Application ground adds potential to enhance mine site logistics with significant further resource expansion
Slide 15: Mina do Barroso resources
Mina do Barroso resources The company has grown the spodumene resource rapidly to Europe’s largest Historic development in resource and exploration potential Current JORC mineral resource on the mining lease 50 Mineral Resource Tonnage Grade Contained Li2O Contained LCE 45 Exploration Target Range (
Slide 16: Conceptual site layout
Conceptual site layout Project complemented by existing road and power infrastructure Conceptual plant design 16
Slide 17: Head of Terms agreement with Galp
Head of Terms agreement with Galp Strategic investor represents a significant 3rd-party stamp of approval and the first announced European Li2O offtake Galp Energia SGPS, S.A (“Galp”) Major European energy company with investments in the oil and gas upstream, refining midstream and downstream sect
Slide 18: Short distance to refinery and port reduce CO2 footprint
Short distance to refinery and port reduce CO2 footprint Leveraging renewable power and existing infrastructure Spain To customers Mine located close to the Spanish border, Northern Portugal Portugal Local electricity produced mainly Mina do Solar and wind from hydro, solar and wind with zero ca
Slide 19: Significant value adding milestones in the near term
Significant value adding milestones in the near term Mina do Barroso timeline 2018 achievements 2020 achievements 2022 targets 75% project acquisition EIA application and mine Finalise commercial completed plan submitted arrangements for MdB Positive scoping study Advanced project investme
Slide 20: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 20
Slide 21: One of the best European lithium exposures
One of the best European lithium exposures Savannah can provide a large lithium supply with the smallest relative investment and the highest capital returns Estimated attributable LCE production (ktpa)1 CAPEX/Mcap1,2 Post-tax IRR1,3 37.4 6.93 49% 42% 4.23 19.9 29% 3.48 24% 2.78 21% 22% 2.23 19% 10.7
Slide 22: Investment summary
Investment summary Europe’s leading conventional lithium project EU electric vehicle sales growing rapidly – 137% increase year-on-year Rapidly growing 3.2x demand growth in LCE estimated by 2025 market Europe is estimated to be the world’s 2nd lithium battery manufacturing base by 2024/20251
Slide 23: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 23
Slide 24: Gigafactory pipeline in Europe
Gigafactory pipeline in Europe 850-1,000 GWh expected in 2025 Production 1 2 3 1.9 GWh 30 GWh 15 GWh 4 5 19 18 1 GWh 7.5 GWh 1.5 GWh Under construction 7 6 7 8 24 9 9.8 GWh 32-40 GWh 100 GWh Announced 10 12 9 10 11 32 GWh 32 GWh 30 GWh 11 19 1 13 12 13 +TBD 14 15 8 20 3 5-35 GWh 6 x 40GWh 8-48 GWh 1
Slide 25: The lithium market
The lithium market Demand is increasing and prices have soared as the market balance moves towards deficit EV battery demand Market balance Lithium price development 900 1,200 18,000 16,000 800 Potential deficit 1,000 700 from 2021/2 and 14,000 widening 600 800 12,000 500 10,000 $/tonne ktLCE GWh 60
Slide 26: Governmental push towards electrification of vehicles
Governmental push towards electrification of vehicles Electrification development supported by tax reduction and subsidies leading to ICE limitations/bans Ban sales of new 2025 ICE cars Lithium price development Ban sales of new 2030 ICE cars Electrical vehicle revolution plays a key part in decar
Slide 27: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 27
Slide 28: Mutamba Mineral Sands Project
Mutamba Mineral Sands Project Completing technical and corporate review to clarify Mutamba’s future and its true value The Mutamba mineral sands project in Mozambique is being developed by Savannah Resources and Rio Tinto o One of the world's largest resources of heavy mineral sands o 4.4 billion
Slide 29: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Lithium Market 5. Mutamba Mineral Sands Project 6. Appendix 29
Slide 30: Fortescue's lithium tenements
Fortescue’s lithium tenements The Portuguese geology attracts mining major FMG tenements Savannah tenements Mina do Barroso 30
Slide 31: Significant additional value from co-products at Mina do Barroso
Significant additional value from co-products at Mina do Barroso Feldspar and quartz Feldspar Quartz Comments Used in the production of ceramics and glass Like feldspar, used in the production of ceramics Commercial test work has shown that the o Portugal and Spain are two of the larger and gl
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