Savannah Resources PLC · LSE:SAV
Savannah Resources — Investor Presentation (September 2021)
29 slides from Savannah Resources's investor presentation, September 2021
Slide 1: Europe's Leading Conventional Lithium Project
Europe’s Leading Conventional Lithium Project September 2021 1
Slide 2: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Appendix 3
Slide 4: Executive Management
Executive Management Significant experience in natural resources and Portugal Joao Barros, Portugal Country Manager: David Archer, Chief Executive Officer1: ▪ Over 17 years of mining experience ▪ Over 30 years’ international mining industry experience ▪ Significant senior management experience acros
Slide 5: The Electric Vehicle and lithium markets in 2021
Highlights: The Electric Vehicle and lithium markets in 2021 EV sales up, lithium prices up, sector investment up, lithium deficit looming Lithium Market balance3 Electric Vehicle (‘EV’) sales1: ▪ Jan-May global sales of BEV and PHEV: 2.05m (+73% y-o-y) 1,200 ▪ EV sales represented 15% of total Euro
Slide 6: Focused on the rapidly developing European lithium battery value chain
Focused on the rapidly developing European lithium battery value chain Savannah is in the right place at the right time ▪ The European Commission targets: o Making the EU carbon neutral and reducing EU transport emissions by 90% by 20501 o Creating a lithium battery value chain and reducing the EU’s
Slide 7: Lithium chemical and battery production in Europe
Lithium chemical and battery production in Europe Battery manufacturing underway and set for rapid growth, lithium chemical production to be initiated Lithium chemical Plants Gigafactories Announced Production A 1 2 3 18 15ktpa LiOH 1.9 GWh 30 GWh 15 GWh A 4 5 19 B 50ktpa LiOH 7 1 GWh 7.5 GWh 1.5 GW
Slide 8: Introduction to Savannah Resources
Introduction to Savannah Resources Europe’s leading conventional lithium development company Key Company & Project Figures Lithium development company ▪ LSE listed lithium development company with headquarters USD 85m USD 271/t in London Market capitalisation1 LOM C1 cash cost CIF China2 ▪ Incorpora
Slide 9: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Appendix 9
Slide 10: Mina do Barroso: Largest conventional lithium project in Europe
Mina do Barroso: Largest conventional lithium project in Europe Progress to production to drive shareholder value creation Project Quality: Key scoping study results ▪ Europe’s largest resource of hard rock spodumene lithium Development CAPEX (excluding contingencies) USD 109m ▪ Lithium extracted wi
Slide 11: Mina do Barroso: Ideally placed for Europe's new Li conversion capacity
Mina do Barroso: Ideally placed for Europe’s new Li conversion capacity Portugal’s renewable power and existing infrastructure adds to the Project’s potential Spain To customers ▪ Mine located close to the Spanish border, in Northern Portugal Portugal ▪ Local electricity produced mainly Solar and wi
Slide 12: ESG: Savannah's commitments
ESG: Savannah’s commitments Sustainable mining is key when developing lithium for the energy transition Environmental Social Governance ▪ Extracted lithium will help to remove 100Mt of CO2 ▪ Mina do Barroso Project is expected to create 200+ ▪ Directors’ interests are aligned with the shareholders f
Slide 13: Opportunities to further enhance Savannah's ESG profile
Opportunities to further enhance Savannah’s ESG profile Target: to create a premium, carbon-neutral lithium concentrate in the EU ▪ Building on Savannah’s Green and Smart mining initiative, several opportunities have been identified to further reduce the carbon footprint of the Mina do Barroso opera
Slide 14: Positioned as one of the world's lowest cost producers of lithium raw material
Positioned as one of the world’s lowest cost producers of lithium raw material Low cash cost secures cash flow in cyclical lows Total cost curve for estimated 2025 production (LCE) Comments 11,000 ▪ The chart illustrates a combination 10,000 of current producers and most likely projects to be realis
Slide 15: Multiple lithium deposits across the 30 year mining lease
Multiple lithium deposits across the 30 years c-100 mining lease1 Key deposits and targets Pegmatite quarrying taking place on Block A ▪ The additional Aldeia Mining Lease Application ground adds potential to enhance mine site logistics with significant further resource expansion potential Source: C
Slide 16: Mina do Barroso resources
Mina do Barroso resources The company has grown the spodumene resource rapidly to become Europe’s most significant conventional deposit Historic development in resource and exploration potential Current JORC mineral resource on the mining lease 50 Mineral Resource Tonnage Grade Contained Li2O Contai
Slide 17: Conceptual site layout
Conceptual site layout Designed to minimise impact, complemented by existing road and power infrastructure Conceptual plant design 17
Slide 18: Significant value adding milestones in the near term
Significant value adding milestones in the near term Mina do Barroso timeline 2022 targets 2018 achievements 2020 achievements ▪ Finalise commercial ✓ 75% project acquisition ✓ EIA application and Mine arrangements for MdB completed Plan submitted ▪ Complete DFS1 ✓ Positive scoping study ✓ Advanced
Slide 19: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Appendix 19
Slide 20: One of the best European lithium exposures
One of the best European lithium exposures Mina do Barroso offers significant lithium supply and the highest capital returns from a low capex requirement Estimated attributable LCE production (ktpa)1 Attributable CAPEX/Mcap1,2 Post-tax IRR1,3 37.4 9.2 8.0 49% 42% 6.0 22.1 29% 24% 21% 22% 3.2 3.3 19%
Slide 21: Mina do Barroso: Value creation through progress
Mina do Barroso: Value creation through progress Savannah’s NPV multiples should increase with project advancement P/NPV (x) ratios for hard rock spodumene peers1 ▪ Current peer group multiples imply further derisking of the Mina do Barroso Project should generate higher valuations for Savannah 2.0
Slide 22: Investment summary
Investment summary Europe’s leading conventional lithium project ▪ EU electric vehicle sales growing rapidly – 137% increase year-on-year in 2020 Rapidly growing ▪ 10x growth in European LCE demand estimated by 20301 market ▪ Europe estimated to be the world’s 2nd largest lithium battery manufacturi
Slide 23: Contents
Contents 1. Company overview 2. Mina do Barroso Lithium Project 3. Investment case 4. Appendix 23
Slide 24: Company history
Company history Committed to the future needs of a greener world 2010 ▪ The Company was listed on AIM as African Mining & Exploration plc 2013 ▪ Acquired 80% interest in Mozambique mineral sands project Company name changed to Savannah Resources 2015 ▪ Landmark joint venture with Rio Tinto in Mozamb
Slide 25: Significant additional value from co-products at Mina do Barroso
Significant additional value from co-products at Mina do Barroso Feldspar and quartz Feldspar Quartz Comments ▪ Used in the production of ceramics and glass ▪ Like feldspar, used in the production of ceramics ▪ Commercial test work has shown that the o Portugal and Spain are two of the larger and gl
Slide 26: Fortescue's lithium tenements
Fortescue’s lithium tenements The Portuguese geology attracts mining major FMG tenements Savannah tenements Mina do Barroso 26
Slide 27: Governmental push towards electrification of vehicles
Governmental push towards electrification of vehicles Electrification development supported by tax reduction and subsidies leading to ICE limitations/bans Ban sales of new 2025 ICE cars Lithium price development Ban sales of new 2030 ICE cars ▪ Electrical vehicle revolution plays a key part in decar
Slide 28: Mutamba Mineral Sands Project
Mutamba Mineral Sands Project Completing technical and corporate review to clarify Mutamba’s future ▪ The Mutamba mineral sands project in Mozambique is being developed by Savannah Resources and Rio Tinto o One of the world's largest resources of heavy mineral sands o 4.4 billion tonnes at 3.9% THM1
Slide 29: Thank You
Europe’s Leading Conventional Lithium Project Thank You 29
Savannah Resources — Investor Presentation (September 2021) on 6ix