Bacanora Lithium — Investor Presentation (June 2021)
26 slides from Bacanora Lithium's investor presentation, June 2021
Slide 1: Developing a World Class Lithium Project
DEVELOPING A WORLD CLASS LITHIUM PROJECT Corporate presentation June 2021 Bacanora
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION The content of information contained in this presentation (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any
Slide 3: Index
INDEX 01 CORPORATE STRATEGY 02 SONORA PROJECT SUMMARY 03 LOCATION AND GEOLOGY 04 PILOT PLANT AND PROCESS 05 LITHIUM COST CURVE AND SONORA OPERATING COSTS 06 COMMUNITY AND PEOPLE Bacanora Corporate Presentation 3
Slide 4: Corporate Strategy
CORPORATE STRATEGY 44% INVESTMENT IN ZINNWALD LITHIUM PLC Market: Europe ASIA SONORA LITHIUM PROJECT, MEXICO Market: Asia GOAL TO BECOME AN INTERNATIONAL LITHIUM PRODUCTION COMPANY WITH A PORTFOLIO OF GLOBAL PROJECTS Bacanora Corporate Presentation 4
Slide 5: Corporate Strategy
CORPORATE STRATEGY MARKET TICKER AIM BCN MARKET CAP SHARE PRICE ~£182m 55p as of 27.05.21 27.05.21 SIGNIFICANT SHAREHOLDERS Gangfeng Lithium 28.88% M&G Investment Funds 13.67% Robeco 4.24% Hanwa Co., Ltd 3.24% Igneous Capital Ltd 1.81% D&A Income Ltd 1.23% Other 46.93% (Shareholding Percentages are
Slide 6: Overview: Sonora Lithium Project
OVERVIEW: SONORA LITHIUM PROJECT AIM LISTED COMPANY FOCUSED ON BUILDING A 35,000 TPA BATTERY GRADE LITHIUM OPERATION AT SONORA IN MEXICO LARGE LITHIUM COMPLETED COST DEPOSIT FEASIBILITY COMPETITIVE 8.8 Mt of LCE STUDY ~$4,000/t resources at Sonora, $1.25B NPV; operating cost open-pit mining 26% IRR
Slide 7: Overview: Sonora Lithium Project
OVERVIEW: SONORA LITHIUM PROJECT CONVENTIONAL PROCESSING 4 years of ongoing battery grade (99.9%) lithium carbonate production from Pilot Plant with testwork ongoing for lithium hydroxide product APPROVALS IN PLACE MIA/EIS permits received. Land acquisition completed. Water licence permits granted.
Slide 8: Overview: Sonora Lithium Project
OVERVIEW: SONORA LITHIUM PROJECT GANFENG LITHIUM PARTNERSHIP • Initial cornerstone 29.99% investment by leading producer Ganfeng Lithium at PLC corporate level and moving to 50% investment at Sonora project level • Long term 50% off-take for Stage 1 and 75% off-take for Stage 2 OTHER STRATEGIC PARTN
Slide 9: Outcropping Lithium Deposits Combined Width Over 40 Metres
LOS ANGELES OUTCROPPING LITHIUM DEPOSITS COMBINED WIDTH OVER 40 METRES NOGALES SONORA PORT OF SONORA GUAYMAS LITHIUM HERMOSILLO MEXICO MEXICO CITY Bacanora Corporate Presentation 9
Slide 10: Sonora Leases – Exploration Upside
SONORA LEASES – EXPLORATION UPSIDE 100,000 ha Line of strike 7km 50 years Bacanora Corporate Presentation 10
Slide 11: Conventional Processing Route Tested for 4 Years
CONVENTIONAL PROCESSING ROUTE TESTED FOR 4 YEARS WITH PILOT PLANT IN MEXICO PRODUCING 99.9% LITHIUM Open-pit Sulphate (Na2SO4) Soda Ash 99.9% Li2CO3 mining roast to produce (Na2CO3) addition product and Li2SO4 LiOH testwork Trommel Evaporation and SX and IX and screen precipitation purification Baca
Slide 12: Feasibility Study in Numbers
FEASIBILITY STUDY IN NUMBERS STAGE 1 INITIAL PRE-TAX CONSTRUCTION CAPITAL COST NPV8 NPV0 $1.25B $3.4B $420M (based on $11,000/t Li₂CO₃) PRE-TAX SIMPLE PAYBACK IRR STAGE 1 26% 4 years Bacanora Corporate Presentation Source: See Full Feasibility Numbers in Appendix 12
Slide 13: Feasibility Study in Numbers
FEASIBILITY STUDY IN NUMBERS AV. OPERATING POST-TAX COSTS >4,000 NPV8 NPV0 $/t Li₂CO₃ $802M $2.37B (~3,500/t net of K₂SO₄ credits) (based on $11,000/t Li₂CO₃) POST-TAX K₂SO₄ PRODUCTION IRR Up to 21% 30,000 tpa Bacanora Corporate Presentation Source: See Full Feasibility Numbers in Appendix 13
Slide 14: Peer Analysis: Estimated Industry Cost Curve Post 2025
PEER ANALYSIS: ESTIMATED INDUSTRY COST CURVE POST 2025 Source:(*Canaccord November 2020, BCN 43-101) Bacanora Corporate Presentation 14
Slide 15: Lithium Supply, Demand and Pricing
LITHIUM SUPPLY, DEMAND AND PRICING Lithium Price and Forecast (US$/tonne*) Supply and Demand to 2027* 16,000 14,000 12,000 10,000 8,000 6,000 2017 average 4,000 2,000 global pricing - 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e around $12,000/t* Lithium Carbonate (US$/t CIF Asia) Lithium H
Slide 16: Commercialising Sonora
COMMERCIALISING SONORA GANFENG, HANWA AND RK PROVIDING LONG TERM OFFTAKE AND DEBT SUPPORT Ganfeng Lithium Investment and Off-take: Hanwa Investment and Off-take: RK • Strategic 17.41% investment at the Corporate level • Strategic 4% shareholder • $150M debt available in moving to 28.88% subject to o
Slide 17: Environment, Safety and Governance
ENVIRONMENT, SAFETY AND GOVERNANCE ENVIRONMENT Compliance with local and HEALTH & SAFETY International health and safety international standards practises recognised throughout operation Life of Mine rehabilitation will be undertaken Health and safety statistics reported each month to Board TMF: ben
Slide 18: Board
BOARD MARK HOHNEN EXECUTIVE CHAIRMAN PETER SECKER CHIEF EXECUTIVE OFFICER Extensive international business Founding Director of Mining Engineer Has built and operated Experience working in experience in wide range of Chairman of Cape Kalahari Minerals with almost 40 years mining and processing a num
Slide 19: Management
MANAGEMENT JANET Ms. Blas is a certified public accountant who has held a RICARDO Mr Ruelas has a degree in chemical engineering with BLAS number of senior financial roles, with over 15 years RUELAS over 30 years of experience in complex metallurgy and CFO experience in the resources sector, includi
Slide 20: Investment Case
INVESTMENT CASE TRANSITIONING FROM LITHIUM EXPLORER TO LITHIUM DEVELOPER 01 Large lithium deposit, 05 Chinese lithium major low strip ratio, with and Japanese trading permits in place house as strategic partners 02 Conventional sulphate Intention to processing route 06 commence construction phase in
Slide 21: Ganfeng: An Active Partner
GANFENG: AN ACTIVE PARTNER to play active role in Sonora’s development and commercialisation: Cornerstone investment by top Assist with finalising an tier global lithium producer, moving EPC engineering contract, to 50% at project level plant construction, commissioning and early operations phases A
Slide 22: Sonora Feasibility Study: Positive Economics
SONORA FEASIBILITY STUDY: POSITIVE ECONOMICS FEASIBILITY STUDY KEY INDICATOR VALUES SENSITIVITY ANALYSIS Pre-tax Net Present Value ($ 000) 1,253,027 Base Case Pre Tax Base Case Post Tax Discount Rate NPV (US$ million) NPV (US$ million) Pre-tax IRR (%) 26.1% 0% 3,425.1 2,371.4 Simple Payback Stage 1
Slide 23: Sonora Feasibility Study: Positive Economics
SONORA FEASIBILITY STUDY: POSITIVE ECONOMICS CONSTRUCTION CAPITAL COSTS PROJECT OPERATING COSTS (ROUNDED TO NEAREST US$’000) FS 43-101 TABLE 21.2.2 FS Estimate Stage FS Estimate Stage Stage 1 Stage 2 Average LOM Category 1 (US$000) 2 (US$000) Category (US$/t Li2CO3) (US$/t Li2CO3) (US$/t Li2CO3) Min
Slide 24: Key Data
KEY DATA MARKET TICKER MARKET CAP ~£182m AIM BCN as of 27.05.21 Ganfeng Lithium Ltd (28.88%) M&G Plc (13.67%) Robeco (4.24%) Hanwa Co Ltd (3.24%) Igneous Capital (1.81%) D&A Income Ltd (1.23%) Others (46.93%) NOMAD BROKER Cairn Financial Citigroup / Advisers LLP Canaccord Genuity Note: Shareholding
Slide 25: Zinnwald Lithium Project
BERLIN ZINNWALD LITHIUM PROJECT GERMANY POLAND STRATEGIC ASSET LOCATED IN CLOSE PROXIMITY TO A THRIVING MARKET LEIPZIG DRESDEN FOR LITHIUM AND ENERGY PRODUCTS ZINNWALD LITHIUM PROJECT • 44% equity investment in Zinnwald Lithium PLC (m/c ~£15m) • 35km from Dresden on the Czech Republic border in an h
Slide 26: Contact
CONTACT Bacanora Lithium plc Peter Secker / Janet Blas E: info@bacanoralithium.com www.bacanoralithium.com Tavistock Financial PR Jos Simson / Emily Moss / Oliver Lamb T: +44 (0) 20 7920 3150 E: Bacanora@tavistock.co.uk www.tavistock.co.uk Bacanora