Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Shareholder Meeting (November 2019)
32 slides from Liontown's shareholder meeting presentation, Nov 27, 2019
Slide 1: Developing an Australian Lithium Business
For personal use only DEVELOPING AN AUSTRALIAN LITHIUM BUSINESS Annual General Meeting 27 November 2019 | ASX : LTR
Slide 2: Important Information
Important Information Forward Looking Statements “Spectacular intercept of 90m @ 1.3% Li2O at Kathleen Valley” and “Work commences on Kathleen Valley Resource update as drilling continues to deliver wide, high grade This Presentation may include statements that could be deemed “forward-looking lithi
Slide 3: A Next Generation Lithium Producer
A Next Generation • Western Australia Lithium Producer Low Risk • Granted Mining Leases • Well funded For personal use only Kathleen Valley Lithium Project • Established mining region Location • Modern infrastructure • Kathleen Valley – 5th biggest resource Quality in Australia KALGOORLIE • 83% M&I
Slide 4: 2019 achievements have positioned Liontown well for the future
2019 achievements have positioned Liontown well for the future For personal use only 1 Kathleen Valley Lithium Project 2 Buldania Lithium Project Updated Mineral Resource: Maiden Mineral Resource: 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5 14.9Mt @ 0.97% Li2O and 44ppm Ta2O5 • 353% increase from the maiden
Slide 5: Kathleen Valley Lithium Project
For personal use only KATHLEEN VALLEY LITHIUM PROJECT PERTH
Slide 6: Project Overview
Project Overview JULY 2019 RESOURCE For personal use only 2 PFS scheduled for release in Dec 2019 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5 1 83% Measured and Indicated 353% increase on maiden 2018 MRE 3 Conventional mining and processing Test work confirms ~6% DMS spodumene 4 concentrate – feasibility-le
Slide 7: A Globally Significant Lithium Deposit
A Globally Significant Lithium Deposit Hard Rock Lithium Operations and Advanced Projects For personal use only Western World | Spodumene Dominant | Tonnes x Grade | Li2O Only 2.70 Development Greenbushes Operating Kathleen Valley (Talison/Tianqi) 2.20 Earl Grey (WES / SQM / Kidman) Li2O Grade % Wha
Slide 8: >3x Increase in MRE supports potential for larger pit
>3x Increase in MRE supports potential for larger pit For personal use only NORTH SOUTH Scoping Study Pit Conceptual Expanded Pit Measured Indicated Inferred 8
Slide 9: >3x Increase in MRE supports potential for larger pit
>3x Increase in MRE supports potential for larger pit For personal use only Measured Indicated Inferred 9
Slide 10: Metallurgy and Flowsheet
Metallurgy and Flowsheet Scoping Study confirms For personal use only saleable concentrate High priority on getting metallurgy and processing right Results to be updated in Pre-Feasibility Study 10
Slide 11: Scoping Study on maiden MRE supports potential standalone operation
Scoping Study on maiden MRE supports potential to develop a standalone Lithium Mining and Processing Operation For personal use only January 2019 Study – Headline Metrics A$421M NPV(8%, real, post tax) (Range of A$316 to A$526M) IRR 38% Payback <3 years Free Cash Flow A$762M Average Cash Flow ~A$100
Slide 12: Exploration target – 50Mt @ 1.2 – 1.5% Li2O
Exploration target 25 – 50Mt @ 1.2 – 1.5% Li2O* (15,000-25,000m drilling program in progress) For personal use only NORTH SOUTH Conceptual Open Pit Southern Pit Northern Pit KV North West Measured KV Feeder Zone Indicated Inferred *The potential grade and tonnage of the Exploration Target referred t
Slide 13: Resource Upside
29m @ 1.3% Li2O Resource Upside 22m @ 1.3% Li2O 15,000-25,000m resource extension 1 For personal use only drill program in progress (3 rigs) 12m @ 3.1% Li2O Targeting extension of thick 2 (>45m), high grade, “feeder” zone….. 51m @ 1.2% Li2O 3 …and along strike to northwest 83m @ 1.5% Li2O Initial re
Slide 14: Mineralisation open down dip
Mineralisation open down dip 13m @ 1.6% Li2O For personal use only 31m @ 1.7% Li2O 23m @ 1.0% Li2O 13m @ 1.9% Li2O 11m @ 1.9% Li2O 10m @ 1.5% Li2O 8m @ 1.8% Li2O 11m @ 1.8% Li2O 90m @ 1.3% Li2O 8m @ 1.9% Li2O 15m @ 1.4% Li2O 12m @ 1.8% Li2O 55m @ 1.7% Li2O 14
Slide 15: Next Steps
Next Steps Achievements in the last 12 months pave the way for future opportunities For personal use only FURTHER STUDIES Mine Optimisation MAIDEN MRE UPGRADED MRE RESOURCE inc. underground; UPGRADE Metallurgy; Hydrology 21.2Mt @ 1.4% Li2O 74.9Mt @ 1.3% Li2O Environmental and 170ppm Ta2O5 and 140ppm
Slide 16: Kathleen Valley Investment Case
Kathleen Valley The only non-committed spodumene resource Investment Case in Australia For personal use only ~75Mt @ 1.3% Li2O and 140ppm Ta2O5 Conventional mining and processing Positive Scoping Study – PFS imminent Probable long life mine First world location and expertise Active, well serviced mi
Slide 17: Buldania Lithium Project
For personal use only BULDANIA LITHIUM PROJECT PERTH
Slide 18: Project Overview
Project Overview Significant lithium discovery Buldania is Located in a For personal use only 1 Outcropping, fresh, spodumene- Lithium-Rich Mineral Province related mineralisation Mineralisation at Anna extended to the 2 SE under shallow cover – strike length >1.4km and open Similar geology to the M
Slide 19: Large Lithium (Spodumene) Mineralisation fresh from surface
Large Lithium (Spodumene) Mineralisation fresh from surface Mineralised Pegmatite and open along strike and at depth Defined at the Anna Prospect For personal use only 14m @ 1.7% Li2O incl. 11m @ 2.0% Li2O 12m @ 1.5% Li2O 42m @ 1.0% Li2O incl. 4m @ 1.9% Li2O incl. 14m @ 1.4% Li2O 10m @ 1.0% Li2O 25m
Slide 20: Maiden Mineral Resource Estimate – 14.9Mt @ 1.0% Li2O
Maiden Mineral Resource Estimate – 14.9Mt @ 1.0% Li2O For personal use only 20
Slide 21: Priorities Going Forward
Priorities Going Forward For personal use only • Maintain: Safe and supportive working environment Financial discipline Technical and corporate expertise Strong and relevant engagement with investors and stakeholders • At Kathleen Valley deliver: PFS (Dec 2019) Updated MRE (Q1/Q2 2020) –
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: Appendix
For personal use only APPENDIX Kathleen Valley Project Additional Information
Slide 24: Kathleen Valley Mineral Resource Estimate – July 2019
Kathleen Valley Mineral Resource Estimate – July 2019 Cut-off grade (Li2O) Resource Category Million Tonnes Li2O (%) Ta2O5 (ppm) For personal use only Measured 17.6 1.3 160 Indicated 42.2 1.3 140 0.5 Inferred 10.1 1.1 150 Sub-Total 69.9 1.3 150 Indicated 2.5 1.4 120 0.7 Inferred 2.5 1.3 110 Sub-Tota
Slide 25: Scoping Study – Key Parameters And Assumptions
Scoping Study – Key Parameters And Assumptions For personal use only Parameter Parameter General and Economic Cost Assumptions Discount rate (real, post tax) 8% LOM average open pit mining A$37.72 costs ($/t ore mined) Spodumene concentrate price US$650 per tonne FOB LOM average processing cost Tant
Slide 26: Scoping Study – LoM Financials And Capital Expenditure
Scoping Study – LoM Financials And Capital Expenditure For personal use only Life of Mine Financials Capital Costs Summary A$M Main Area Capital (A$M) Revenues 2,802 Treatment Plant 82.8 Operating costs (1,236) Reagents & Plant Services 9.5 Infrastructure – general 39.9 Capital expenditure Mining 6.
Slide 27: Scoping Study – Production And Costs
Scoping Study – Production And Costs For personal use only Production and Costs 400 800 701 350 660 700 300 570 600 616 537 520 525 Conc. Production (kt) Opex (A$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 Y
Slide 28: Scoping Study – Grade Profiles
Scoping Study – Grade Profiles For personal use only LOM Lithium and Tantalum Grade Profile 1.60% 189 200 174 169 180 1.40% 163 156 Lithium Grade (%Li2O) Tantalum Grade (ppm Ta2O5) 160 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 0.4
Slide 29: Scoping Study – Production Classification
Scoping Study – Production Classification For personal use only 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 29
Slide 30: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE MRE For personal use only Company Project Stage Information Source Mt Mt Mt Mt Grade ASX Announcement, 17 Sept 2018 - http://www.pilbaraminerals.com.au/site/ Pilbara Minerals Pilgangoora Operating 22.8 11
Slide 31: Exploration Target Parameters and Assumptions
Exploration Target Parameters and Assumptions For personal use only Parameter KV Feeder Zone KV North West Rationale Combined strike length 1100m 400 Based on previous drilling of pegmatites and extrapolation of block Average cumulative model used in preparation >18m >20m true width of Mineral Resou
Slide 32: For personal use only
For personal use only EMAIL PHONE NUMBER info@ltresources.com.au 08 9322 7431 WEBSITE: OFFICE www.ltresources.com.au Level 2, 1292 Hay St West Perth WA 6005 CONNECT https://au.linkedin.com/company/liontown-resources-limited https://twitter.com/LiontownRes
Liontown Resources — Shareholder Meeting (November 2019) on 6ix