Vital Metals Ltd · ASX:VML
Vital Metals — Investor Presentation (May 2020)
30 slides from Vital Metals's investor presentation, May 6, 2020
Slide 1: The world's next REO producer
For personal use only The world’s next REO producer. May 2020 ASX: VML Follow us @VitalMetals
Slide 2: Disclaimer
Disclaimer For personal use only This presentation provides an overview of prospective rare earth projects (“the Projects”) and development opportunities and contains “forward looking statements”. Forward looking statements are all statements other than statements of historical fact included in this
Slide 3: Highlights – The world's next REO producer
Highlights – The world’s next REO producer For personal use only World Class REO Development Team – ex Lynas Corporation Ltd • Lead by Vital Metals MD Geoff Atkins 2 World Class REO Projects • Nechalacho REO Project (Canada) 95mt at 1.46% TREO • Wigu Hill (Tanzania) 3.3mt at 2.6% TREO High Grade Res
Slide 4: Corporate Overview
Corporate Overview For personal use only VML Share Price Performance 0.01 6 12 0,000 ,0 00 Volume Close 14% 0.01 4 10 0,000 ,0 00 0.01 2 Shareholder Breakdown 80 ,0 00,00 0 39% Board and Related Parties 0.01 High Ne t Worth's 0.00 8 60 ,0 00,00 0 Che etah Shareholders 32% Nominee s 0.00 6 Retail Sha
Slide 5: Vital's senior management are world experts in developing rare earth projects
Vital’s senior management are world experts in developing rare earth projects. For personal use only Senior Management Geoff Atkins Managing Director • 25 years of project and corporate development experience including four (4) years as Corporate Planning Manager at Lynas Corporation where he oversa
Slide 6: Cheetah has evolved from a concept in 2015 to today
Cheetah has evolved from a concept in 2015 to today For personal use only Price Neodymium and Praseodymium Oxide Prices in China Neodymium CNY/Tonne AVL hits ~ $1B mkt cap with Rare-Earth Permanent Magnets (REPMs) Praseodymium (millions) Nechalacho REO Project Combined NdPr 1.5 1.4 1.3 1.2 1.1 Cheet
Slide 7: Rare Earth Markets are driven by energy efficiency
Rare Earth Markets are driven by energy efficiency. For personal use only Military Strategic Green Electric Hydraulic Resource Energy Vehicles Fracturing Heavily used in: Jet Turbines, • A 3MW wind turbine uses • EVs expected to grow from 3 • Every barrel of crude submarines, advanced weapons 600+kg
Slide 8: Rare earth demand will be driven by high-strength magnets
Rare earth demand will be driven by high-strength magnets For personal use only Lanthanum and Neodymium Supply/Demand Imbalance • Demand for both neodymium and lanthanum is forecast to grow significantly from 2021 • With new projects typically taking 2-4 years to reach production, there is a risk of
Slide 9: Vital has the opportunity to fill the supply/demand imbalance
Vital has the opportunity to fill the supply/demand imbalance. For personal use only Rare Earths in supply/demand imbalance New mines are required now • To meet strong global demand, a new mine with production of 20,000t REO/yr is required every year from 2020 to 2025 • China is forecast to be a net
Slide 10: Rare earth supply chains outside China are of strategic importance
The establishment of rare earth supply chains outside of China has been recognized to be of strategic importance For personal use only Canada and U.S. Finalize Joint Action Plan on Critical Minerals Collaboration January 9th 2020 Ottawa, Canada Canada and the United States share a Minister of Canada
Slide 11: Significant rare earth separation capacity will require feedstock
There is significant existing and potential rare earth separation capacity, which will require feedstock For personal use only Estimated Estimated Country Capacity TREO T/yr Utilisation China 300,000 40% Malaysia 20,000 100% France 9,000 25% Vietnam 7,000 50% Russia 4,000 60% Kazakhstan 3,500 0% Est
Slide 12: A new strategy is needed if shareholder returns are to be maximised
A new strategy is needed if shareholder returns are to be maximised For personal use only Rare Earths – A New Strategy Needed Time Taken to Develop Projects • Financing, contracting, construction and commissioning 4+ years • Projects are complex and require 2-3 years to achieve design capacity CAPEX
Slide 13: Vital is focusing on reduced capex and time to market
Vital is focusing on reduced capex and time to market to maximise shareholder returns For personal use only Rare Earths – The VML Difference Time Taken to Develop Projects • Reducing the scale and complexity of the project reduces the time to market Customer • Project can then be expanded out of cas
Slide 14: Environmental impact throughout the rare earth supply chain must be minimised
As a critical product in ‘green-tech’, environmental impact throughout the rare earth supply chain must be minimised For personal use only Vital Waste Management Principles Provide Consistent Quality of Supply • Supply rare earth separation facilities with a guaranteed supply of feedstock with impur
Slide 15: Canada – Nechalacho
For personal use only Canada Nachalacho,
Slide 16: The Nechalacho project is a world-class rare earth project
The Nechalacho project is a world-class rare earth project. For personal use only Nechalacho is located on Great Slave Lake near Yellowknife, NWT Canada Large World Class REO Resource • 94.7MT at 1.46% REO (measured, indicated and inferred) Tier 1 Mining Jurisdiction CAPEX to Develop Project • Locat
Slide 17: Nechalacho has received support from local communities
The Nechalacho project has received support from local communities. For personal use only Letters of support received from local communities, including: • Yellowknife Dene First Nation (YKDFN) • City of Yellowknife • North Slave Metis Alliance (NSMA) • Town of Hay River • Deninu K’ue First Nation (D
Slide 18: Nechalacho has world-class infrastructure
The Nechalacho project has world-class infrastructure For personal use only 40 Person Camp on Thor Lake Access to Canadian National Railway at Hay River Drill rig being de-mobilised on the Nechalacho Ice Road Drill rig being mobilised via barge Investor Presentation - May 2020 18
Slide 19: Initial focus on the North-T Zone before the Tardiff Zones
The initial focus will be the North-T Zone before attention is shifted to the Tardiff Zones For personal use only Nechalacho contains a Global JORC Resource of 94Mt@1.46% REO Over 1,372,000t of contained REO incl 330kt of NdPr Initial Focus on Bastanesite Mineralisation Only • Ultra high grade (9% T
Slide 20: North-T deposit contains ultra-high grade intercepts
The North-T deposit contains intercepts of ultra-high grade making it an ideal start-up operation For personal use only The North T Zone contains over 9,000t REO which is ideal for a near term start-up operation • Ultra high grade (9% TREO) North T Zone starter pit ~ 9,000t of contained REO • Shallo
Slide 21: Process testwork has produced high-grade concentrate and leaching
Process testwork has been successful in producing high-grade concentrate and leaching For personal use only Ore Sorting via X-Ray Transmission (single pass) Concentrate sample via sorting • 36% REO concentrate produced from 10.5% REO • Grades up to 41% REO achieved • REO recoveries up to 87% achieve
Slide 22: Bastnaesite metallurgy has been demonstrated in operations for many years
The metallurgy required to process bastnaesite has been successfully demonstrated in operations for many years For personal use only Cracking and Leaching flowsheets for bastnaesite ore bodies are well understood with bastnaesite operations successfully operated for over 50 years. Conventional leach
Slide 23: Ore sorting helps minimize environmental impacts and costs
The ability to concentrate by ore sorter helps minimize environmental impacts and costs For personal use only Similar Ore Sorter Structure Ore sorting plant at a gold project in Alaska Investor Presentation - May 2020 23
Slide 24: Targeting production commencing from Nechalacho in 2021
Vital is targeting production commencing from Nechalacho in 2021 For personal use only 2020 2021 A M J J A S O N D J F M A M J J A S O Precipitation testwork Bulk Testwork Site Establishment Operational Readiness Mining Contract Mobilise to Site Mining Operation Sorting Operation C&L Construction C&
Slide 25: Wigu Hill
For personal use only Wigu Hill
Slide 26: Wigu Hill targeted as second rare earth project to enter production
Wigu Hill Project (90%) is targeted as VML’s second rare earth project to enter production For personal use only • Located near the town of Kisaki in the Morogoro region of Tanzania • Mineralisation is widespread over the entire hill with only 2 out of 10 known targets drilled • Barrack and Tanzania
Slide 27: Initial focus for Wigu Hill will be the Twiga deposit
The initial focus for Wigu Hill Project will be the Twiga deposit For personal use only Wigu Hill contains a historical NI43-101 Resource of 3.3Mt @ 2.6% REO Zone Mt TREO (%) La2O3 % CeO2 % Pr6O11 (%) Nd2O3 (%) Twiga NE 1.6 2.6% 0.98% 1.26% 0.1% 0.23% Twiga SW 0.5 3.6% 1.33% 1.71% 0.13% 0.3% Tembo N
Slide 28: Twiga deposit contains large, discrete bastnaesite crystals
Similarly to Nechalacho’s North-T Zone, the Twiga deposit contains large, discrete bastnaesite crystals For personal use only Bastnaesite mineralisation – similar to Nechalacho Excellent Infrastructure • Amenable to concentration via ore sorting • Located close to Tazara railway, power and water • A
Slide 29: Conclusion – Vital on track to be the world's next REO producer
Conclusion – Vital on track to be the World’s next REO Producer For personal use only World Class REO Development Team – ex Lynas Corporation Ltd • Lead by Vital Metals MD Geoff Atkins 2 World Class REO Projects • Nechalacho REO Project (Canada) 95mt at 1.46% TREO • Wigu Hill (Tanzania) 3.3mt at 2.6
Slide 30: Contact
For personal use only Contact Geoff Atkins Managing Director vital@vitalmetals.com.au +61 8 6555 2950