Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (January 2023)
39 slides from Perpetua Resources's investor presentation, January 2023
Slide 1: Investor Presentation – January 2023
Investor Presentation – January 2023 N A S DAQ :P P TA T S X : P P TA Perpetua Resources Responsible 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 * Establishing a national strategic asset with a critical mineral essential for national defense and th
Slide 5: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT Our goal is to transform an area abandoned after 100 years of mining activity into a national strategic asset for critical mineral and gold production through responsible mining and a sustainable approach to restore the environment for the benefit of all stakeholders. 5
Slide 6: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1 Independent Gold Project Mineral Reserves1 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 mat
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 2 2021 Annual Gold Production (koz) Source: Late
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 3 Perpetua (Stibnite) LoM $636 Perpetua (Stibnite) LoM 3 $636 Skeena (Eskay Creek) $652 Barrick $
Slide 10: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES 1 TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE $2,350 $4,603 $2,943 $3,815 Gold Price (US$/oz) $2,100 $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 $164 Current Mkt Cap2 Only 9% of NPV2 (5
Slide 11: Establishing a National Strategic Asset
ESTABLISHING A NATIONAL STRATEGIC ASSET ANTIMONY - IT’S CRITICAL Essential to economic and national security USES FOR ANTIMONY U.S. has no domestic mined production Clean energy & national defense applications China & Russia dominate the world supply (>70%) Energy 2022 World Mine Production
Slide 12: Expected to Average ~35% of U.S. Demand
EXPECTED TO AVERAGE ~35% OF U.S. DEMAND 1,2 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 Ope
Slide 13: Defense Production Act (DPA) Award
DEFENSE PRODUCTION ACT (DPA) AWARD Critical minerals award of up to $24.8 million to advance construction readiness and permitting Up to $24.8 million to complete environmental and engineering studies necessary to obtain a Final EIS, Final Record of Decision and other ancillary permits Funding all
Slide 14: 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 15: 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 16: Path Forward for the Stibnite Gold Project
PATH FORWARD FOR THE STIBNITE GOLD PROJECT 1 U.S. Forest Service identified Perpetua’s Proposed Plan as Preferred Alternative2 in Supplemental EIS 2024 2027 Construction Commercial operations Early 2024 Decision and ongoing restoration Ancillary permits and Project Financing Late 2023 / Early 2024 F
Slide 17: NEPA Scope Narrowed Following SDEIS
NEPA SCOPE NARROWED FOLLOWING SDEIS 1 2022 Supplemental Preferred Alternative 2020 DEIS DEIS Identified Modified Mine Plan – Burntlog Route Modified Mine Plan – Burntlog Route Plan of Restoration and Operations (PRO) Alternative Alternative Modified Mine Plan - Johnson Creek 2022 SDEIS Preferred Alt
Slide 18: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Anticipated Milestones1: Signed Antimony agreement with Ambri (Aug 2021) Final Environmental Impact Statement & Draft Record of Decision (mid 2023)2 Launched Sustainability Roadmap (Apr 2022) Final Record of Decision (late 202
Slide 19: 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 69% 62% 50% 43% 39% 35% 9% 10% 0% 1,2 Perpetua Integra Artemis Skeena Ascot Marathon NovaGold 1. Perpetua Resources market cap based on fully diluted market cap using closing price as of January
Slide 20: 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 * Establishing a national strategic asset with a critical mineral essential for national defense
Slide 21: Appendix
Perpetua Resources Appendix
Slide 22: 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 23: 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 24: 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 25: Idaho: A Premier Mining Jurisdiction
IDAHO: A PREMIER IDAHO MINING JURISDICTION Lucky Friday Mine Coeur d’Alene Hecla Mining Golden Chest Mine Idaho Strategic Resources Galena Complex Sunshine Mine Americas Gold and Silver Sunshine Silver Stibnite Gold • Top 10 Mining Jurisdiction in the World* Project (Au-Sb) Perpetua Resources Beartr
Slide 26: Changing the Face of Mining
CHANGING THE FACE OF MINING STRONG ENVIRONMENTAL, SOCIAL & 67% 2020 GOVERNANCE PRINCIPLES BUILT INTO 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 27: Improving a Legacy
IMPROVING A LEGACY P L A N D ES I G N E D W I T H P O S T M I N I N G R ES TO R AT I O N G OA L S I N M I N D, I N C LU D I N G W I L D L I F E , F I S H E R I ES & D I S P E RS E D R EC R EAT I O N • Create a self-sustaining natural environment • Support healthy fish and wildlife population • Signi
Slide 28: 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 29: 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 here Engineering & Design NOA for FEIS & Draft ROD Publish
Slide 30: Exploration Upside
EXPLORATION UPSIDE* EXPANSIVE LAND PACKAGE EXISTING DEPOSITS: • 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 R G E T S : • High grade targets (Garnet, S
Slide 31: 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 32: 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 33: Feasibility Study – Highlights
FEASIBILITY STUDY – HIGHLIGHTS1 Early Production Life-of-Mine Notes: Component Years 1-4 Years 1-15 1. In this presentation, “M” = 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 34: 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 (M $) (M $) (M $) (2) (M $) environmental remediation costs. 2. Closure and mitigation assume Mine Costs (1) 84 119 - 203 self-performed costs, which
Slide 35: Feasibility Study - Operating Cost Summary
FEASIBILITY STUDY - OPERATING COST SUMMARY Years 1-4 Life of Mine Total Production Cost Item ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) Notes: 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 36: 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 37: Supportive Shareholder Base
SUPPORTIVE SHAREHOLDER BASE SHAREHOLDERS** Loews Eidelman Virant Nokomis * 1.8% 1.5% CAPITAL STRUCTURE 1.9% RESEARCH COVERAGE B Riley Issued & Outstanding 62.99 Million 4.6% B. Riley Financial – Lucas Pipes Sun Valley Gold Options 1.96 Million 7.3% H.C. Wainwright – Heiko Ihle Paulson Kopern
Slide 38: 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 39: 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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