Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Mines and Money Hong Kong (April 2017)
20 slides from Sovereign Metals's conference presentation, April 2017
Slide 1: Targeting Low Cost Production of Premium Quality Flake Graphite
SOVEREIGN METALS LIMITED TARGETING LOW COST PRODUCTION OF PREMIUM QUALITY FLAKE GRAPHITE ASIA APRIL 2017 ASX:SVM
Slide 2: Malingunde: A Tier 1 Graphite Deposit
MALINGUNDE: A TIER 1 GRAPHITE DEPOSIT. Saprolite is the very soft, graphite-bearing, clay-rich oxide material that is formed from intense weathering of the original bedrock. The Malingunde saprolite-hosted deposit has the potential to provide material operating and capital cost benefits versus our h
Slide 3: Targeting a Simple & Profitable Graphite Project
TARGETING A SIMPLE & PROFITABLE GRAPHITE PROJECT. Sovereign is focused on delivering a low cost graphite operation, capable of delivering best in class margins by targeting: 1. Very low operating costs. 2. Very low capital costs. 3. Entry to existing and developing markets. 4. A simple mining & proc
Slide 4: Targeting Very Low Operating Costs
TARGETING VERY LOW OPERATING COSTS Free dig mining, low strip ratios and a simple flow sheet will equate to low cost production. Almost all graphite peers are hosted in hard rock. Low cost production will maximise profitability throughout the graphite price cycle. 3
Slide 5: Targeting Very Low Capital Costs
TARGETING VERY LOW CAPITAL COSTS The very soft material will allow a simple process design and ease of construction. No requirement for primary crushing or grinding circuit. Low strip ratio and high grades will enable small mining fleet and process plant. Low capex will enable pathway to financing a
Slide 6: Entry to Existing and Developing Markets
ENTRY TO EXISTING AND DEVELOPING MARKETS OVERALL NATURAL GRAPHITE DEMAND (kt) Traditional uses (refractory, expandable & other 2,500 Batteries ~40% industrial) account for ~80% of existing market. Traditional 2,000 1,500 ~20% ktpa 1,000 Entry to existing traditional markets reduces risk; not reliant
Slide 7: Pursuing a Simple Mining & Processing Strategy
PURSUING A SIMPLE MINING & PROCESSING STRATEGY. PROCESSING STRATEGY Sole focus on profitable mining & processing. SPHERICAL SVM PEERS No downstream capital requirement reduces MINING & PROCESSING MINING & PROCESSING technical and financing risk. 100% ~30% OF NPV OF NPV Low cost and high quality prod
Slide 8: Malingunde Project Detail
MALINGUNDE PROJECT DETAIL
Slide 9: Dominant Ground Position in the World-Class East African Flake Graphite Province
DOMINANT GROUND POSITION IN THE WORLD-CLASS EAST AFRICAN FLAKE GRAPHITE PROVINCE. In addition, there is immense upside for further discoveries of saprolite-hosted flake graphite across the large (3,788km2) and 100%-owned tenement package. 8
Slide 10: Malingunde Saprolite-Hosted Graphite Deposit
MALINGUNDE SAPROLITE-HOSTED GRAPHITE DEPOSIT. Cross section 9
Slide 11: Initial Metallurgy Results
INITIAL METALLURGY RESULTS. Results from the initial flotation test program on this material showed: Large flake ~55%-78% of the concentrate in the super jumbo, jumbo and large size fractions (i.e. +149µm). High grade concentrate across all flake size fractions, consistently grading above 98% C(t).
Slide 12: Malingunde: A Tier 1 Graphite Deposit
MALINGUNDE: A TIER 1 GRAPHITE DEPOSIT. Thick and consistent preserved saprolite profile – large tonnage potential. Free-dig mining and very low strip ratios with mineralised material at or near surface – very low overall mining costs expected. Simple processing with no primary crushing and grinding
Slide 13: Market Information
MARKET INFORMATION. ASX : SVM SHARE PRICE MOVEMENT CAPITAL STRUCTURE Current Shares on Issue * 217,329,083 0.16 5 Unlisted Options $1M ($0.10 to $0.47) 14,916,667 PLACEMENT TO MAJOR FUND 0.14 Performance Rights 1,400,000 $4M 4 Un-Diluted Market PLACEMENT TO A$17.4 m 0.12 SOPHISTICATED Capitalisation
Slide 14: Massive Valuation Upside
MASSIVE VALUATION UPSIDE. $760 Undiluted Market Capitalisation (A$M) $275 SIGNIFICANT NEWSFLOW AHEAD – RESOURCE AND SCOPING STUDY DUE SHORTLY $47.4 $43.6 $38.6 $17.4 COMPANY SVM BKT KNL TON MNS SYR (ASX CODE) Scoping Study Feasibility Feasibility Development Country Malawi Tanzania Tanzania Mozambiq
Slide 15: Forward Plan and News Flow for Malingunde
FORWARD PLAN AND NEWS FLOW 2017 FOR MALINGUNDE. Q1 Q2 Q3 Q4 RESOURCE 6,000m aircore and diamond drill program Complete DRILLING complete. RESOURCE Maiden Malingunde JORC resource estimate. News imminent To examine initial economic parameters for SCOPING STUDY producing graphite from soft saprolite o
Slide 16: Targeting a Simple & Profitable Graphite Project
TARGETING A SIMPLE & PROFITABLE GRAPHITE PROJECT: • Very low operating costs. • Very low capital costs. • Entry to existing and developing markets. • A simple mining & processing strategy. 15
Slide 17: Management Team with a Proven Track Record of Success
MANAGEMENT TEAM WITH A PROVEN TRACK RECORD OF SUCCESS. IAN MIDDLEMAS JULIAN STEPHENS MATTHEW WHEELER COLLIN DAVY DOMINIC ALLEN Chairman Managing Director Technical Manager Exploration Manager - Business Malawi Development Manager Mr Middlemas is a Dr Stephens is a Mr Wheeler is a Mr Davy is a Geolog
Slide 18: Competent Persons Statement & Disclaimer
COMPETENT PERSONS STATEMENT & DISCLAIMER. COMPETENT PERSONS STATEMENT The information in this report that relates to Malingunde Exploration Results is extracted from the reports dated 29 August 2016, 5 September 2016, 12 October 2016, 26 October 2016, 18 January 2017, 21 February 2017 and 15 March 2
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Slide 20: Sovereign Metals Limited
Sovereign Metals Limited | ASX : SVM T: +61 8 9322 6322 | F: +61 8 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, BGC Centre, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427 FOLLOW US
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