Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (June 2022)
38 slides from Perpetua Resources's investor presentation, June 2022
Slide 1: Investor Presentation – June 2022
Investor Presentation – June 2022 NA S DAQ : P P TA TS X : P P TA Perpetua Resources Responsi bl e Mining. Critical Resources. Clean Future.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Information and statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the
Slide 3: Cautionary Note & Technical Disclosure
CAUTIONARY NOTE & TECHNICAL DISCLOSURE The presentation has been prepared by Perpetua Resources management and does not represent a recommendation to buy or sell these securities. Investors should always consult their investment advisors prior to making any investment decisions. All references to “d
Slide 4: Why Perpetua Resources?
WHY PERPETUA RESOURCES? ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition and for
Slide 5: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT Our goal is to take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project helping power a lower carbon future through critical mineral production. 5
Slide 6: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1 1 Independent Gold Project Mineral Reserves 2 Perpetua (Stibnite) 4.8 Castle Mountain 4.2 Marigold 3.4 Round Mountain 3.0 Haile 2.6 Bald Mountain 0.8 0.0 1.0 2.0 3.0 4.0 5.0 2021 Year-End Mineral Reserves - Gold (Moz) Source: Latest available company ma
Slide 7: High-Grade, Open Pit Gold Deposit
HIGH-GRADE, OPEN PIT GOLD DEPOSIT Independent Open Pit Gold Deposits1 2 Perpetua (Stibnite) Yrs 1-4 2.2 Haile 1.6 2 Perpetua (Stibnite) LoM 1.4 Goldfield 1.0 Gold Bar 0.8 Round Mountain 0.7 Wharf 0.6 Bald Mountain 0.6 0.00 0.50 1.00 1.50 2.00 2.50 2021 Year-End Mineral Reserves - Gold Grade (g/t) So
Slide 8: Poised to Be One of Largest U.S. Gold Mines
POISED TO BE ONE OF LARGEST U.S. GOLD MINES Independent Producing Gold Mines1 3 Perpetua (Stibnite) Yrs 1-4 463 3 Perpetua (Stibnite) LoM 297 Round Mountain 257 Marigold 235 Bald Mountain 205 Haile 190 Wharf 91 0 50 100 150 200 250 300 350 400 450 500 2021 Annual Gold Production2 (koz) Source: Lates
Slide 9: Lowest Quartile All-In Sustaining Costs
LOWEST QUARTILE ALL-IN SUSTAINING COSTS 1 Among lowest cost North American developers… …and lowest cost relative to senior producers 3 3 Perpetua (Stibnite) Yrs 1-4 $438 Perpetua (Stibnite) Yrs 1-4 $438 Skeena (Eskay Creek) $548 3 Perpetua (Stibnite) LoM $636 3 Perpetua (Stibnite) LoM $636 Barrick $
Slide 10: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE 1 $2,350 $4,603 $2,943 Gold Price (US$/oz) $2,100 $3,815 $2,404 $1,850 $3,026 $1,864 $1,600 $2,232 NPV at 0% $1,320 NPV at 5% $1,350 $1,434 $771 Perpetua Mkt Cap2 $224 Current Mkt Cap2 Only 12% of NPV2 (
Slide 11: U.S. Critical Minerals Supply Chain Risk
U.S. CRITICAL MINERALS SUPPLY CHAIN RISK USES FOR ANTIMONY “Critical Minerals” are metals and non-metals essential to economic and national security Energy and are vulnerable to supply chain disruptions World Antimony 2021 Production (USGS) CRITICAL Flame Ceramics Turkey Other Australia Bolivia Reta
Slide 12: Expected to Average ~35% of U.S. Demand
EXPECTED TO AVERAGE ~35% OF U.S. DEMAND1,2 Stibnite Gold Project Recovered Antimony2 60,000,000 50,000,000 2021 U.S. Annual Consumption1 40,000,000 Antimony (lbs) 51% 30,000,000 44% 33% 34% 20,000,000 21% 15% 10,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Stibnite Gold Project - Year of Oper
Slide 13: Perpetua to Power Ambri's Low-Cost Battery
PERPETUA TO POWER AMBRI’S LOW-COST BATTERY Agreement to supply only responsible & domestically mined source of antimony for stationary, long duration, daily cycle energy storage enabling the transition to cleaner energy SUPPLY AGREEMENT1: • Current commitment of Perpetua’s antimony can power over 13
Slide 14: Restoring an Abandoned Brownfields Site
RESTORING AN ABANDONED BROWNFIELDS SITE ENVIRONMENTAL SOLUTIONS FUNDED THROUGH MINE DEVELOPMENT SEDIMENTATION METAL LEACHING BLOCKED FISH MIGRATION Early repair of the largest Pick up, reprocess, reuse and Re-establish fish migration and provide source of sedimentation safely store 10.5M tons of tem
Slide 15: Extensive Stakeholder Engagement
EXTENSIVE STAKEHOLDER ENGAGEMENT 2016: Perpetua submits 2019: Perpetua 2020: Perpetua Plan of Restoration and submits Modified PRO submits refined Operations (PRO) to USFS (ModPRO) to USFS ModPRO2 to USFS 6 years of environmental study and 4+ years of additional public input and gathering public fee
Slide 16: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Anticipated Milestones1: ✓ Draft Environmental Impact Statement and successful ❑ Begin early action legacy cleanup (Q3 2022) comment period (Aug - Oct 2020) ❑ Supplemental Draft Environmental Impact Statement ✓ Feasibility Study relea
Slide 17: Valuation Expected to Re-Rate Once Permitted
VALUATION EXPECTED TO RE-RATE ONCE PERMITTED 100% Pre-Permitting Permitted Market Cap As % of Spot NAV3,4 68% 50% 45% 44% 40% 37% 33% 12% 13% 0% Perpetua1,2 Integra Gold Standard Skeena Artemis Marathon Ascot NovaGold 1. Perpetua Resources market cap based on fully diluted market cap using closing p
Slide 18: A Unique American Opportunity
A UNIQUE AMERICAN OPPORTUNITY ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition a
Slide 19: Appendix
Perpetua Resources Appendix
Slide 20: Antimony-Based Liquid Metal Batteries
ANTIMONY-BASED LIQUID METAL BATTERIES ABOUT AMBRI: • Combining technological innovation with commercial application to store energy longer, in a scalable way that will change the way power grids operate • Low-cost battery comprised of a liquid calcium alloy anode, a molten salt electrolyte and a cat
Slide 21: Valuation Upside Through ESG Premium
VALUATION UPSIDE THROUGH ESG PREMIUM Trading Comparables – EV / EBITDA PERPETUA’S UNIQUE VALUE PROPOSITION: 21.6x • Strategic partnership with Ambri significantly increases strategic and long-term value 14.9x • Antimony by-product to power batteries for long duration, daily cycling energy storage •
Slide 22: Diverse, Experienced Leadership Team
DIVERSE, EXPERIENCED LEADERSHIP TEAM EXECUTIVE TEAM Laurel Sayer Jessica Largent Mckinsey Lyon Alan Haslam Michael Bogert Tanya Nelson Board Director & CEO Chief Financial Officer VP, External Affairs VP, Permitting General Counsel VP, Human Resources CORPORATE BOARD Marcelo Kim Bob Dean David Deisl
Slide 23: Idaho: A Premier Mining Jurisdiction
IDAHO: A PREMIER IDAHO Lucky Friday Mine MINING JURISDICTION New Jersey Mining Golden Chest Coeur d’Alene Hecla Mining Company Galena Complex Sunshine Mine Americas Silver Sunshine Silver Mines Stibnite Gold • Top 10 Mining Jurisdiction in the World* Project (Au-Sb) Perpetua Resources Beartrack Mine
Slide 24: Changing the Face of Mining
CHANGING THE FACE OF MINING STRONG ENVIRONMENTAL, SOCIAL & GOVERNANCE PRINCIPLES BUILT INTO 67% 2020 CORE BUSINESS PLANS of executive Laurel Sayer named CEO ✓ Community Agreement signed in 2018 management are of Perpetua Resources ✓ Adopted ESG policy in 2019 female Corp & Perpetua Resources Idaho ✓
Slide 25: Improving a Legacy
IMPROVING A LEGACY P LA N D ESI G NE D WI T H P OST M I NI NG R ESTOR AT I ON G OA LS I N M I ND, I N CLU D I NG WI LD LI FE , FI SHE R I ES & D I SP E RSE D R ECR EAT I ON • Create a self-sustaining natural environment • Support healthy fish and wildlife population • Significant concurrent reclamat
Slide 26: NEPA at Work
NEPA AT WORK Public feedback and refinement create the best plan T R A N S PA R E N C Y : Re s u l t s o f t h e 2 0 2 0 7 5 - D a y E I S R E F I N E M E N T : A g e n c i e s Re s p o n d i n g to t h e P u b l i c Public Comment Period The U.S. Forest Service & cooperating agencies will: • Review
Slide 27: Perpetua's Refined Proposed Action
PERPETUA’S REFINED PROPOSED ACTION WHAT WE HEARD PROJECT IMPROVEMENTS 10% reduction in total volume mined Reduce the project footprint (44 million tons) 70% reduction in Hangar Flats pit size Improve water quality (the pit can be completely backfilled) 7% reduction in disturbance from open pits (37
Slide 28: Permitting – Next Steps
PERMITTING – NEXT STEPS NOA for DEIS In Federal EIS Project Alternatives & Register Submittal Administrative Pre-work Initiation & Environmental Prepare of PRO Approval & Planning Public Scoping Analysis Draft EIS DEIS Comment Period We are Engineering & Design here NOA for FEIS & Draft ROD Publish
Slide 29: Exploration Upside
EXPLORATION UPSIDE* EXPANSIVE LAND PACKAGE E X I ST I NG D E P O S I T S : • Northeast of Yellow Pine Deposit • Below Hangar Flats pit & Old Defense Minerals Exploration Act (DMEA) working area • West End along strike and at depth P R I O R I T Y E X P LO R AT I O N TA RG E T S : • High grade target
Slide 30: Mineral Resources & Reserves
MINERAL RESOURCES & RESERVES 1 Proven & Probable Mineral Reserves2: Measured & Indicated Mineral Resources3: 4.8 Mozs Gold @1.43 g/t 6.0 Mozs Gold @1.42g/t 148 Mlbs antimony at 0.06% contained in 104 Mt 206 Mlbs antimony at 0.07% contained in 132 Mt 3.500 Gold M&I Mineral Resource Gold (thousands ou
Slide 31: Ore Processing
ORE PROCESSING FLOW SHEET Crushing, SAG Dore metallurgical recoveries & Ball Milling • Gold at 68% - 91% (88.9% average) • Silver at 23.2% Average High Sb Antimony Stibnite Flotation Sulfide Concentrate Antimony concentrate metallurgical recoveries 1, 2 • Antimony at 84% - 91% (89.5% average) Low Sb
Slide 32: Feasibility Study – Highlights
FEASIBILITY STUDY – HIGHLIGHTS1 Early Production Life-of-Mine Notes: Component 1. In this presentation, “M” = Years 1-4 Years 1-15 million, “k” = thousand, all Total Recovered Gold 1,853 koz 4,238 koz amounts in US$, gold and silver reported in troy ounces (“oz”) Total Recovered Antimony 74 Mlbs 115
Slide 33: Feasibility Study - Capital Cost Summary
FEASIBILITY STUDY - CAPITAL COST SUMMARY Initial Sustaining Closure Total Notes: Area Detail CAPEX CAPEX CAPEX CAPEX 1. Initial mining CAPEX includes environmental remediation costs. (M $) (M $) (M $) (2) (M $) 2. Closure and mitigation assume self-performed costs, which will Mine Costs (1) 84 119 -
Slide 34: Feasibility Study - Operating Cost Summary
FEASIBILITY STUDY - OPERATING COST SUMMARY Years 1-4 Life of Mine Total Production Cost Item Notes: ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) 1. Cash costs and All-in Sustaining Mining 9.71 156 8.22 205 Costs are non-GAAP measures. See “Non-GAAP measures” at the Processing 13.13 211 12.76 318 en
Slide 35: Annual After-Tax Cash Flow (@ $1,850 Gold Price)
ANNUAL AFTER-TAX CASH FLOW (@ $1,850 GOLD PRICE) 1 1. Based on the 2020 Feasibility Study (FS) which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is subject to the assumptions, exclusions and qualifications cont
Slide 36: Supportive Shareholder Base
SUPPORTIVE SHAREHOLDER BASE SHAREHOLDERS** Nokomis Loews BlackRock * CAPITAL STRUCTURE 2.0% 1.7% 1.5% RESEARCH COVERAGE B Riley ❖ Issued & Outstanding 62.99 Million 4.3% ❖ B. Riley Financial – Lucas Pipes Sun Valley Gold ❖ Options 2.07 Million 8.2% ❖ H.C. Wainwright – Heiko Ihle Paulson 39.3% ❖ Shar
Slide 37: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with NI 43-101 under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”). Independent QPs for the FS include: Richard Zimmerman, SME-RM (onsite and offs
Slide 38: Non-GAAP Measures
NON-GAAP MEASURES NON-GAAP MEASURES To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose certain projected non-GAAP financial measures. The projected non-GA
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