Argosy Minerals Limited · ASX:AGY
Argosy Minerals — Roskill - Lithium Mine to Market Conference 2020
28 slides from Argosy Minerals's conference presentation, Feb 13, 2020
Slide 1: Argosy: A New Lithium Producer
For personal use only ARGOSY A NEW LITHIUM PRODUCER ASX: AGY www.argosyminerals.com.au Roskill - Lithium Mine to Market Conference February 2020 1
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only. assumptions in respect of metal production and prices, of this information in the form and context in which it Neither this presentation nor the information contained operating costs and results, capital expenditures, ore appears. The in
Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS For personal use only • The PEA is a preliminary technical and economic shares. It is also possible that Argosy could pursue assumptions and technical parameters study of the potential viability of the Rincon Lithium other ‘value realisation’ strategies such as a sale, underpin
Slide 4: Company Overview
For personal use only Overview Company 4
Slide 5: Investment Snapshot: AGY Share Price Performance
AGY SHARE PRICE PERFORMANCE (AGY:ASX) A$ Volume For personal use only 0.50 40,000,000 0.45 INVESTMENT 0.40 35,000,000 Average Daily 30,000,000 SNAPSHOT 0.35 0.30 25,000,000 Trading Volume: 0.25 20,000,000 ~3.1m shares 0.20 Average Daily 15,000,000 0.15 Trading Value: 10,000,000 0.10 5,000,000 $613,4
Slide 6: Snapshot
SNAPSHOT For personal use only o Successful fast-track lithium o Product quality exceeding original o Experienced Board and management development strategy expectations – up to 99.8% Li2CO3 team able to deliver on large scale content, with very low impurity levels development o Sector-leading lithiu
Slide 7: Rincon Development
For personal use only Rincon Development 7
Slide 8: Rincon Lithium Project
RINCON LITHIUM For personal use only PROJECT Rincon Lithium Project located in the world-class “Lithium Triangle” in Salta Province, Argentina Argosy currently owns 77.5%, moving to 90% ownership of Puna Mining S.A. upon commercial development milestone One of the most advanced lithium developments
Slide 9: Rincon Lithium Project – Key Partner
RINCON LITHIUM PROJECT – KEY PARTNER For personal use only Patent for “Recovery of Li values from sodium Pablo Alurralde – President Rincon JV Project saturate brine” US 8309043 B2 o Chemical Engineer and Master of Philosophy, former director of FMC (now Livent) Argentina operations o Over 15 years’
Slide 10: Staged Project Development
STAGED PROJECT DEVELOPMENT RATIONALE AND BENEFITS OF STRATEGY For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity Outcome of fast-tracked 38 hectares of evaporation Modular add-on to existing development strategy ponds constructed and r
Slide 11: Staged Project Development - Update
STAGED PROJECT DEVELOPMENT - UPDATE For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity Sales Agreement executed Permitting approvals granted PEA completed on base case with Mitsubishi RtM to sell up for 2,000tpa operation ~10,000tpa op
Slide 12: Funding Update for ~2,000tpa Operation
FUNDING UPDATE FOR ~2,000tpa OPERATION REFINING SELECTION PROCESS – POSITIONED TO IMPLEMENT For personal use only Argosy funding plan has focused on three key sources of capital: 1. Traditional debt financing Argosy engaged with 2. Off-take prepayment numerous parties across all 3. Strategic Partner
Slide 13: Rincon Project – A Stand Out Lithium Asset
60,000 RINCON PROJECT – For personal use only 50,000 A STAND OUT Capital Intensity (US$/t LCE) 40,000 LITHIUM ASSET 30,000 Rincon Median Capital Intensity 20,000 $16,459/t LCE Rincon PEA delivers world-class project economics 10,000 o Low Capex and low capital 0 intensity o The modelled NPV is ~3x t
Slide 14: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION The Project lies within Salta Province, ~3,700m ASL, serviced by city of Salta with population of ~600,000 The Puna region is known for its high eva
Slide 15: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION o The Project ideally located to nearby infrastructure o Commercial scale (~300ha) evaporation Existing ~38ha ponds to be constructed ~3km from oper
Slide 16: Tonopah Development
For personal use only Tonopah Development 16
Slide 17: Tonopah Project: Strategic Lithium Prospect
TONOPAH PROJECT: STRATEGIC LITHIUM PROSPECT For personal use only TONOPAH IS STRATEGICALLY LOCATED IN THE LITHIUM BATTERY VALLEY Argosy acquired the project in August 2019 Project lies ~4km from Albemarle’s Silver Peak lithium brine operation – the only lithium carbonate producer in USA (+50yrs) Str
Slide 18: Tonopah Project: Location and Infrastructure
TONOPAH PROJECT: LOCATION AND INFRASTRUCTURE HIGHLY PROSPECTIVE LITHIUM PROSPECT For personal use only o The Project is located within the Big Smokey Valley region in Nevada, USA, and comprises 425 claims covering an area of ~34.25km² o directly analogous to the neighbouring Silver Peak Lithium Mine
Slide 19: US Battery Market Aspirations
US BATTERY MARKET ASPIRATIONS For personal use only U.S. MOVING FAST TO BUILD BATTERY CAPACITY Dr. Herbert Diess, CEO of Volkswagen AG, said in January, “The US is one of the most important locations for us and producing electric cars in Favourable mining jurisdiction, supporting Chattanooga (Tennes
Slide 20: Market Analysis
For personal use only MARKET ANALYSIS 20
Slide 21: Market Look Back – 2018/19
MARKET LOOK BACK – 2018/19 For personal use only LCE PRICE IMPACT ON MARKET DYNAMICS / STRUCTURE / DEVELOPMENT SPODUMENE o 1 producer into Voluntary Administration /DOCA o 4 producers have significantly reduced production Difficult to attain funding for new projects due to: Significant latent capa
Slide 22: Bifurcation of the Lithium Market
BIFURCATION OF THE LITHIUM MARKET For personal use only INCREASED CHALLENGES FACING SPODUMENE PRODUCTION Spodumene Operators Brine SQM Technical Alita Resources Ltd Operators Entered DOCA – Stopped production Production increasing Challenges Galaxy Resources Ltd Albemarle Corp. Temporarily ceased mi
Slide 23: Lithium Market: SWOT Analysis
LITHIUM MARKET: SWOT ANALYSIS For personal use only FUNDAMENTALS REMAIN STRONG – DOWNSIDE REMAINS WEAK Weakness Short-Term: • Excessive spodumene, surplus production Market Result of translated to large stockpiles Transactions • China conversion capacity growth stalled Price Spike • China EV subsidi
Slide 24: A New Lithium Producer
A New Lithium For personal use only Producer 24
Slide 25: Argosy – A New Lithium Producer
ARGOSY – For personal use only A NEW LITHIUM PRODUCER Exceptional PEA results for the Rincon Project • Estimated operating costs at the lower end of the industry operational cost curve • Ability to generate exceptional annual cash flows under all lithium price outlook scenarios • Long asset life – 1
Slide 26: Contact Us
For personal use only To discuss how Argosy Minerals could benefit you, please contact: Contact Jerko Zuvela - Managing Director T: +61 8 6188 8181 Us E: admin@argosyminerals.com.au Level 2, 22 Mount Street Perth WA 6000 Australia 26 This announcement has been authorised by Jerko Zuvela, the Company
Slide 27: Appendix – Market Transactions
Appendix – Market Transactions Positive macro-economic developments underpin strong growth outlook For personal use only Off-take Agreements Strategic Investments o Volkswagen (VW) signed a o Rosatom (via Uranium One) secures option to purchase up to a Motor vehicle MOU with Ganfeng Lithium 51% stak
Slide 28: Appendix – Industrial Scale Pilot Plant
Appendix – Industrial Scale Pilot Plant For personal use only 28
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