Slide 1: Aiming to be Australia's newest Graphite Producer
ASX:LML ASX: LML Aiming to be Australia’s newest Graphite Producer PFS Presentation October 2024
Slide 2: Important Notice and Disclaimer
ASX:LML Important Notice and Disclaimer 2 Disclaimer and Competent Person Statement • The information contained in this document (“Presentation”) has been prepared Lincoln Minerals Limited forward-looking future performance and actual results or developments may differ materially from those in the f
Slide 3: PFS Highlights
ASX:LML PFS1 Highlights 3 Compelling Potential to be Phased Experienced Funding Upside Pre-Feasibility Study Australia’s newest Development Management Team Strategy Opportunities Economics graphite mine Approach Pre-tax NPV10% Real of High grades from the Staged development Lincoln’s A combination o
Slide 4: PFS Highlights
ASX:LML PFS Highlights 4 Pre-Tax NPV110% Real Pre-Tax IRR1 Project Capex1 (Stage 1/2) Payback Period A$114 Million / US$77 Million 41% A$53 Million / US$35 Million 2.4 Years Price Range Stage 1 – A$29 Million From Stage 2 Capex Stage 1 - US$850/t Stage 2 – A$24 Million Construction (Y2) Stage 2 - US
Slide 5: Strong Financial Metrics
ASX:LML Strong Financial Metrics1 – Allowing Multiple Funding Pathways 5 Key Performance Indicators Metrics Regional Risk Jurisdiction Tier 1 - Australia Approval Process Existing Mining lease for first 6 years production approved, operating permit well advanced Land Access Well advanced Financials
Slide 6: Focus on Being the First to Market
ASX:LML Focus on Being the First to Market in Australia and Value Creation 6 CY2024 CY2025 CY2026 Construction Pre-Feasibility Study (PFS) Feasibility Study (FS) Production Q1 H2 Q4 Q2 Pre-FS Drilling and Test work Strategic equity, government incentives & debt funding Pre-FS Trade-Off studies Opera
Slide 7: Why Graphite?
ASX:LML Why Graphite? 7 Global Electric Car Stock 2013 - 2023 Established Markets Underpin Demand: Traditional Industrial graphite markets are well-established and have sustained GDP-style growth rates for decades, driven by global industrial production growth. The Emergence of Batteries Creates a S
Slide 8: Two Graphite Market Segments
ASX:LML Two Graphite Market Segments 8 Traditional Graphite Markets provide strong demand: Lincoln is initially targeting the sale of its graphite concentrate product into the established industrial graphite markets where there is solid demand. Graphite customers currently source mostly from China a
Slide 9: Graphite Price Rise Has Started
ASX:LML Graphite Price Rise Has Started 9 Global Supply Shortages are Looming China accounts for 90% of global flake graphite production and has implemented export restrictions as part of escalating STD ASTM Mesh Traditional Industrial Graphite Reference Pricing geopolitical policies. Global STD Mes
Slide 10: Graphite Market Entry Strategy
ASX:LML Graphite Market Entry Strategy 10 Graphite is an industrial mineral Staged ramp up maximise returns Unlike exchange-traded commodities, graphite sales By starting small, Lincoln will be able to place initial production require matching customer needs to specific mine into the traditional ind
Slide 11: Lincoln's Phased Development Strategy
ASX:LML Lincoln’s Phased Development1 Strategy 11 Downstream Opportunity Stage 2 Expansion Phase Future downstream opportunity (Not included in the PFS) • Opportunity to produce and market alternative products to include higher value micronised graphite and spherical Stage 1 ~500ktpa (60 ktpa conc.
Slide 12: Stage 1 Pit Advantage
ASX:LML Stage 1 Pit is Lincoln’s Potential Enabler to First Mover Advantage. 12 Outcropping early access to high grade material, with low waste to ore stripping ratio PFS Presentation – October 2024 lincolnminerals.com.au
Slide 13: Infrastructure Advantage
ASX:LML Infrastructure both Regional and Local Enabler to First Mover Advantage. 13 Major Regional logistics advantages • New desalination plant being constructed at Port Lincoln • Recently upgraded 132 kV transmission line runs directly through the project, connecting to renewables-backed SA grid g
Slide 14: Key Project Attributes and Opportunities
ASX:LML Key Project Attributes and Opportunities 14 High Grade Graphite Deposit at Surface (KG) – Two Staged Development - low start-up capital cost and low risk Providing access to high-grade feed and lower operating costs development of graphite customers (validation & qualification) Low start-up
Slide 15: Mine Plan Overview
Mine Plan Overview Lincoln Minerals
Slide 16: Increasing our Graphite Resource Base
ASX:LML Increasing our Graphite Resource Base 16 Kookaburra Graphite Project Total Mineral Resources 1 Cut-off Tonnage Average Grade Contained Grade Doubled the Mineral Resource Estimates1 (Mt) (% TGC) Graphite (kt) (%TGC) resource base since Kookaburra Gully September 20231. Measured 2% 1.00 11.77
Slide 17: Site General Layout with Three Pits
ASX:LML Site General Layout with Three Pits 17 PFS Presentation – October 2024 lincolnminerals.com.au
Slide 18: Kookaburra Gully Pit Stage 1 and 2
ASX:LML Kookaburra Gully Pit Stage 1 and 2 18 Stage 2 KG High Grade Mining PFS Presentation – October 2024 lincolnminerals.com.au
Slide 19: Koppio Pit
ASX:LML Koppio Pit 19 PFS Presentation – October 2024 lincolnminerals.com.au
Slide 20: Kookaburra SW Extension Pits
ASX:LML Kookaburra SW Extension Pits 20 PFS Presentation – October 2024 lincolnminerals.com.au
Slide 21: Mine Production Profile
ASX:LML Mine Production1 Profile 21 Tonnes and Grade Mined per Period • Open Pit: Traditional drill and blast, truck and shovel 1,400 18.0 mining method. 1,200 16.0 • Free dig material for around the first 30m of pit depth. 1,000 14.0 Tonnes Mined (kt) TGC grade (%) • Immediate access to high grade
Slide 22: Production Metrics
ASX:LML Production1 Metrics 22 Material Mined (Kt) Concentrate Production (Kt) 1.8 16.0 1,800 1.6 80 14.0 1,600 1.4 66 12.0 1,400 62 Tonnes Mined (Mt) 1.2 Grade (% TGC) 10.0 53 1,200 1.0 47 46 1,000 8.0 0.8 34 800 28 28 28 31 6.0 0.6 22 22 600 4.0 13 0.4 400 11 11 0.2 200 2.0 0.0 - 0.0 Y01 Y02 Y03 Y
Slide 23: High Resource Confidence in the Early Years of Production
ASX:LML High Resource Confidence in the Early Years of Production1 23 Tonnes and Grade Mined by Resource Category 1.8 16.0 1.6 14.0 1.4 12.0 Tonnes Mined (Mt) Grade (% TGC) 1.2 10.0 1.0 8.0 0.8 6.0 0.6 0.4 4.0 0.2 2.0 0.0 0.0 Y00Y01Y02Y03Y04Y05Y06Y07Y13Y09Y10Y11Y12Y13Y14Y15 Measured Indicated Inferr
Slide 24: Process and Recovery
ASX:LML Process and Recovery 24 Previous comprehensive testing undertaken on bulk samples used to develop the process flowsheet. Process results indicated the graphite was recoverable at desired purity levels • Locked cycle testing (LCT) confirmed >95% LOI (loss on ignition) grades and 90% graphite
Slide 25: Process and Recovery
ASX:LML Process and Recovery 25 Simplified Process Flowsheet Key: Stage 2 PFS Presentation – October 2024 lincolnminerals.com.au
Slide 26: Operating Costs
ASX:LML Operating Costs 26 Mining Costs are based on contractor Operating Material Processed Con Produced mining moving from a small fleet (Stage 1) larger fleet (Stage 2)1. Stage 1 Stage 2 Total Stage 1 Stage 2 Total Mining A$/t 122 22 24 845 262 284 Processing costs, including TSF, water Processin
Slide 27: Capital Expenditure
ASX:LML Capital Expenditure 27 Item Sub Item Unit Stage 1 Stage 2 Deferred Total Mining Mining Capex A$M 2.9 2.9 Crushing A$M 1.3 1.0 2.3 Milling and Flotation A$M 8.2 6.4 14.5 Stage Capex Approach to enable Product Bagging A$M 1.5 5.5 7.1 Marketing Testing and First to Market Ore Process Plant / In
Slide 28: Project Approvals Timeline
ASX:LML Project Approvals Timeline 28 Kookaburra Graphite Project Timeline and Proposed Approvals Schedule 2024 2025 2015 2016 2017 2023 2026 2027 2028 H2 H1 H2 PROJECT on HOLD Project re-commenced: MLA over MC 4372 and ML 6460 granted 3 June PEPR final submitted Pre-feasibility for Stages 1 Additio
Slide 29: Project Economics
Project Economics Lincoln Minerals
Slide 30: Key Financial and Production Metrics
ASX:LML Key Financial and Production1 Metrics 30 Description Unit Value A$m 114 Pre-Tax NPV2 US$m 77 Pre-Tax IRR2 % 41% Strong Financial metrics Payback period from Capex Stage 2 Years 2.4 Capital Intensity # 2.2 Mt 12.8 Mineral Resource Low Capital options and logically % 7.6% staged approach Annua
Slide 31: NPV Sensitivity to Commodity Price
ASX:LML NPV Sensitivity to Commodity Price 31 NPV2 (A$M) and graphite price (US$/t real FOB, Stage 1 and Stage 2 pricing) The project1 has a positive NPV through the expected price cycle, with a Free Cash Flow break-even price ~US$655/t3 517 477 436 396 356 316 275 235 195 155 114 74 34 14 (27) 500/
Slide 32: Free Cash Flow Sensitivity
ASX:LML Free Cash Flow Sensitivity to Commodity Price 32 LOM Free Cash Flows2 (A$M) and graphite price (US$/t real FOB, Stage 1 and Stage 2 pricing) Project1 has Strong Free Cash Flow through the price cycle, with plus A$0.5b if US$1150/t (Stage 1) 1300/t (Stage 2) can be achieved. 1,097 1,016 934 8
Slide 33: Industrial Graphite Price Cycle
ASX:LML Industrial Graphite Price Cycle 33 Source: Lone Star Tech Minerals-USA – Internal Technical Data and Pricing Database / Application Knowledge / Field Sales Experience PFS Presentation – October 2024 lincolnminerals.com.au
Slide 34: Sensitivity Analysis
ASX:LML Sensitivity Analysis 34 Project1 economics remain robust under various scenarios. Pre-Tax NPV(10%) real A$114m Price (-10/+10%) (40) 40 FX (-10%/+10%) (36) 44 WACC (8%/12%) (18) 22 Opex (-10%/+10%) (10) 10 Grade (-2.5%/+2.5%) (9) 9 Plant Recovery (86%/92%) (8) 8 Capex (-10%/+10%) (6) 6 1. “K
Slide 35: Indicative Return Profile
ASX:LML Indicative Return Profile 35 This project1 has the potential to generate substantial cash flows that are resilient to market fluctuations, providing a competitive edge Positive Cash flow in Year 3, project cumulative FCF from Year 4 Net Free Cash Flow A$m 100 279 350 A$m Real Cummalative 300
Slide 36: Funding Strategy and Timeline
ASX:LML Funding Strategy and Timeline
Slide 37: Potential Funding Sources
ASX:LML Potential Funding Sources 37 Combination of ASX Equity Australian National Battery Strategy Funding Sources Amount Other Equity Sources Due to China’s graphite export restrictions, non- Future Made in Australia Innovation Fund $1.7 billion China end users are increasingly interested in foste
Slide 38: PFS Summary
ASX:LML Sneak Peak into the Kookaburra Graphite Project – PFS Summary 38 Robust High Grade Standard Tier 1 Experienced Economics Resource Processing Location Management Strong financial The Kookaburra High purity product Located in a graphite Track record of metrics and a solid Graphite Project has
Slide 39: For Further Information
For Further Information: Jonathon Trewartha Chief Executive Officer Lincoln Minerals Limited Jonathon.trewartha@lincolnminerals.com.au 1300 137 116 Nathan Ryan Investor and Media Relations NWR Communications nathan.ryan@nwrcommunications.com.au +61 420 582 887 Community Enquiries Community@lincolnmi
Slide 40: Appendix - Corporate Snapshot
ASX:LML Appendix - Corporate Snapshot
Slide 41: Proven Management with a Track Record of Value Creation
ASX:LML Proven Management with a Track Record of Value Creation 41 Capital Structure LML A$0.0071 2,056M $14.4M $1.5M2 Nil ASX Code Share Shares Market Cash Debt Price on Issue Capitalisation Ms Zhang is a qualified accountant with extensive business networks in Australia and internationally. She ha
Slide 42: Overview of Lincoln Minerals
ASX:LML Overview of Lincoln Minerals 42 1. Lincoln doubles Eyre Peninsula graphite resource in seven months (LML ASX release 15 April 2024) 2. Historic uranium drill intercept up to 570 ppm (LML ASX release 9 April 2024) 3. Lincoln confirms strategic 1.2 Billion Tonne Magnetite Resource (LML ASX rel