Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Ambri and Perpetua Resources Webinar (August 2021)
36 slides from Perpetua Resources's conference presentation, Aug 31, 2021
Slide 1: Powering the Future
A ugust 2 0 2 1 TS X : P P TA NA S D A Q :P P TA POWERING THE FUTURE R es p o n s i b l e M i n i n g o f Cri t i ca l R es o u rces fo r t h e Cl ea n Fu t u re. www.perpetuaresou rc e s.c om
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Information and statement 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 U
Slide 3: 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 4: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT We can 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 4
Slide 5: Historical Stibnite Mining District
HISTORICAL STIBNITE MINING DISTRICT 5
Slide 6: Restoration of an Abandoned Mine Site
RESTORATION OF AN ABANDONED MINE SITE ENVIRONMENTAL SOLUTIONS THROUGH MINING 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 permanent river restor
Slide 7: River and Fish Passage Restored
River and Fish Passage Restored PERMANENT FISH ACCESS restored for the first time in 80 years. HABITAT RESTORATION built into project beginning in year 7. 7
Slide 8: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1,2 1,2 Independent Gold Project Mineral Reserves 3 Perpetua (Stibnite) 4.8 Marigold 3.6 Castle Mountain 3.6 Haile 2.9 Round Mountain 2.2 Bald Mountain 1.1 0.0 1.0 2.0 3.0 4.0 5.0 2020 Year-End Proven & Probable Mineral Reserves - Gold (Moz) Source: S&P G
Slide 9: Poised to Be One of Largest U.S. Gold Mines
POISED TO BE ONE OF LARGEST U.S. GOLD MINES Independent Producing Gold Mines 1 Perpetua(Stibnite) Yrs 1-4* 463 Round Mountain 324 Perpetua(Stibnite) LoM* 297 Marigold 234 Bald Mountain 191 Haile 137 Wharf 93 0 50 100 150 200 250 300 350 400 450 500 2020 Annual Gold Production (koz) Source: S&P Gl ob
Slide 10: Lowest Quartile All-in-Sustaining Costs
LOWEST QUARTILE ALL-IN-SUSTAINING COSTS 1 $2,500 Global Gold Mine Cost Curve1 All-in-Sustaining Cost ($/oz) $2,000 $1,500 Perpetua Resources Stibnite Gold Project1 $1,000 Yr1-4 LoM $500 $0 Average Annual Gold Sales (represented as bar width) Source: S&P Gl obal – Ma rket Intelligence Valuable antimo
Slide 11: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES 1 TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE (US$000) $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 $342 Current Mkt Cap2 Only 18%
Slide 12: 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 2020 Production (USGS) CRITICAL Flame Ceramics Turkey Australia Bolivia Retardant
Slide 13: Expected to Average >35% of U.S. Demand
EXPECTED TO AVERAGE >35% OF U.S. DEMAND 1 Stibnite Gold Project Recovered Antimony2 50,000,000 45,000,000 2020 U.S. Annual Consumption1 40,000,000 35,000,000 Antimony (lbs) 59% 30,000,000 51% 25,000,000 38% 39% 20,000,000 15,000,000 24% 17% 10,000,000 5,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Y
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 carbon-free power grids • Current commitment of Perpetua’s antimony can power over 13 GWh of en
Slide 15: Ambri-Perpetua Partnership Quote
“ The Ambri-Perpetua partnership directly connects the restoration of the Stibnite Mining District to the clean energy future and illustrates how responsible, domestic mining has an important role to play in climate change solutions. L a u r e l S a y e r, C E O P e r p e t u a R e s o u r c e s 15
Slide 16: Perpetua-Ambri Webinar
August 31, 2021 Perpetua-Ambri Webinar David Bradwell, PhD CTO, SVP, Co-founder Ambri Inc.
Slide 17: Ambri Overview
Ambri Overview • Founded Ambri, Inc. in 2010, • $144M funding announced 8/9: Bill Gates, MIT spin-out Paulson & Co., Reliance Industries Ltd., others • Commercializing unique calcium and • Signed agreement with Perpetua for a responsibly antimony high-temperature, molten salt produced domestic suppl
Slide 18: Low-Cost Renewable Power Is Available Today
Low-Cost Renewable Power Is Available Today • Image here: 550 MW solar facility, California • Each square is larger than a football field • Utility-scale solar projects now reaching $0.02/kWh (or ~$20/MWh) wholesale electricity cost, without subsidies
Slide 19: Intermittent Resources Creates Need for Storage
Intermittent Resources Creates Need for Storage Today’s grid has very little storage – “the world’s largest supply chain with no warehouses” Energy storage is key to matching supply of wind and solar power, with demand — enabling broad-scale deployment of these resources. Demand Supply New England I
Slide 20: Long-Duration, Daily-Cycling Batteries Needed
Long-Duration, Daily-Cycling Batteries Needed • In June 2020, Clean Power Research of midwest region of US (MISO) studied economics of grid powered by 95-100% wind & solar by 2025 and 2050 A grid powered by 95% Natural gas to support Batteries evaluated to 100% extended to reach cost- • Cost could b
Slide 21: Long-Duration, Daily-Cycling Batteries Needed: Key Outcomes
Long-Duration, Daily-Cycling Batteries Needed: Key Outcomes • In the study, several scenarios were modeled, including varying blends of renewable power and energy storage capacities and cost • Storage cost range: $155/kWh pack + $552/kW BoS*, to $41/kWh pack + $133/kW BoS* • Outcome 1: Overbuilding
Slide 22: Stationary Energy Storage Market is Booming
Stationary Energy Storage Market is Booming Represents $10B market, growing rapidly* *assuming $200/kWh DC-system cost, 4 hr discharge https://www.eia.gov/todayinenergy/detail.php?id=49236 https://www.eia.gov/analysis/studies/electricity/batterystorage/ 22
Slide 23: Ambri Company Timeline & Overview
Ambri Company Timeline & Overview • Commercializing new calcium + antimony battery for 4- to 24-hour, daily-cycling stationary storage applications • R&D cells & systems delivered to and validated by energy storage integrator and customers in ’18 – ‘20 • Build initial commercial systems in ‘21 Custo
Slide 24: Recent Funding and Next Steps
Recent Funding and Next Steps • Announced $144MM funding on August 9 (right) • Reached agreement with Perpetua to supply only domestically mined source of antimony — reducing physical supply, financial, geopolitical, and scaling risks for Ambri • Entered into joint-venture manufacturing partnership
Slide 25: Battery Chemistry
Battery Chemistry 1. Charged State • Liquid MetalTM electrode design offers distinguished Liquid Metal calcium alloy Solid antimony particles – + performance and minimal Ca Sb fade. 2. Discharging • 500°C operating CalCl2-based temperature, in insulated 4. Charging e- salt Half-reactions e- electrol
Slide 26: Cell Design
Cell Design Targeting Long-Duration (4- to 24-hour) Stationary Energy Storage Markets • Fully sealed, prismatic, “large lunchbox-sized” cells • Increase energy density and reduce cost over time • Scale to 10’s GWh/y production Multi-Plate Vertical Electrode Cell Configuration, Commercial Cell Specif
Slide 27: System Attributes and Configuration
System Attributes and Configuration Ambri ESS System Specifications • DC-power containerized system, ship fully populated, connect to AC-inverters ~250kW Power • System components include cell, trays, shelves, heaters, insulation, BMS 1,000 kWh • Insulated, so system exterior is cool to the touch En
Slide 28: Good Efficiency, Minimal Capacity Fade
Good Efficiency, Minimal Capacity Fade 20-Year Design Life With 80 – 90% Round-Trip DC-DC Efficiency in Daily Cycling Minimal Capacity Degradation • Systems “self-heated” when cycled every 1-2 days, no • Stable performance over thousands of cycles, multiple years additional heater energy required •
Slide 29: Fundamental Safety and Waste Advantages
Fundamental Safety and Waste Advantages • Cells safe under battery abuse tests: • Short circuit • Crush • Overcharging • Over-discharging • Stainless steel and antimony easily collected and recyclable • Presently recycling stainless steel from all spent cells • Approved by MA Department of Environme
Slide 30: Ambri Summary
Ambri Summary • Commercializing a novel calcium and antimony-based battery for stationary, daily cycling, grid-scale energy storage applications • Ready-to-install systems well-suited for applications that require: • High energy capacity • Frequent/daily cycling • Long life • Good Efficiency • Recen
Slide 31: Why Perpetua
WHY PERPETUA 31
Slide 32: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Upcoming Milestones: ✓ Draft Environmental Impact Statement and ❑ Inclusion in multiple indices due to Nasdaq listing (2021/22) successful commend period (Aug - Oct 2020) ❑ Supplemental Draft Environmental Impact Statement ✓ Feasibili
Slide 33: Valuation Set to Re-Rate Once Permitted
VALUATION SET TO RE-RATE ONCE PERMITTED 150% Pre-Permitting Permitted Market Cap As % of Spot NAV3,4 115% 100% 88% 73% 59% 49% 50% 29% 24% 18% 0% 1,2 Perpetua Integra Gold Standard Skeena Ascot Marathon NovaGold Orla 1. Perpetua Resources Market Cap based on Fully Diluted Market Cap as of August 27,
Slide 34: 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 35: Perpetua Resources
PERPETUA RESOURCES RESPONSIBLE. RESTORATIVE. CRITICAL. 35
Slide 36: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”).
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