Slide 1: Rare Earth Production Commencing 2021
For personal use only Rare Earth Production Commencing 2021 Investor Presentation w w w. v i t a l m e t a l s . c o m . a u AUGUST 2020
Slide 2: Disclaimer
Disclaimer 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 presentation includin
Slide 3: Largest independent supplier of clean mixed rare earth feedstock outside China
VML is targeting to be the largest independent supplier of clean mixed rare earth feedstock outside of China Highlights For personal use only Aspirational Targets • Operations commencing 2021 • Maximum total construction cost to produce rare earth carbonate of A$20M • Aim for the production of a min
Slide 4: Vital Metals Company Overview
For personal use only VITAL METALS COMPANY OVERVIEW 03 INVESTOR PRESENTATION AUGUST 2020
Slide 5: Corporate Overview
Corporate Overview For personal use only VML Share Price Performance CAPITAL STRUCTURE Volume Close ASX Code VML 45 0.016 Millions 40 0.014 Shares on Issue 2,142m 35 0.012 30 Performance Shares 800m 0.01 25 0.008 Performance Rights and Options on Issue 529.7m 20 0.006 15 0.004 Share Price (as 31st J
Slide 6: 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 TONY HADLEY MATTHEW EDLER DARREN SUTTON Managing Director Chief Operating Officer Executive VP Corporate Process Technologist Development 25 years of project and corpora
Slide 7: Cheetah has evolved from a concept in 2015 to today
Vital’s 100% subsidiary 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
Slide 8: Vital Metals Development Strategy
For personal use only VITAL METALS DEVELOPMENT STRATEGY 07 INVESTOR PRESENTATION AUGUST 2020
Slide 9: Traditional development model requires considerable time and capital
The traditional development model is to immediately develop a large-scale project, requiring considerable time and capital For personal use only Traditional Project Development Model Time Taken to Develop Projects • Financing, contracting, construction and commissioning 4+ years • Projects are compl
Slide 10: Strategy: low cost near-term cashflow to fund large-scale operations
Vital’s strategy is to generate low cost near-term cashflow to fund the development of large-scale operations For personal use only Vital Metals Aspirational Targets Stage 1: Near Term/Low Capex Production Nechalacho North T • Commence production of Mixed RE Carbonate within 18 months Custo Sales De
Slide 11: Global rare earth separation capacity; focus on Mixed R.E. Carbonate
With significant global rare earth separation capacity, Vital will focus on producing a Mixed R.E. Carbonate product For personal use only Global Rare Earth Separation Capacity ESTIMATED ESTIMATED CAPACITY COUNTRY TREO T/YR UTILISATION China 300,000 40% Malaysia 20,000 100% France 9,000 25% Vietnam
Slide 12: Implementation Stage 1: Near Term/Low Capex Production
For personal use only Implementation Stage 1: Near Term/Low Capex Production Nechalacho North T Project Total Target Capital Cost: Less than $20M Production scheduled to commence mid 2021 Fund expansion from the sale of Mixed RE Carbonate 11 INVESTOR PRESENTATION AUGUST 2020
Slide 13: Nechalacho is a world class rare earth project in Northwest Territories
The Nechalacho project is a world class rare earth project located in Northwest Territories, Canada For personal use only Large World Class REO Resource • 94.7MT at 1.46% REO (measured, indicated and inferred) Tier 1 Mining Jurisdiction Excellent infrastructure • Located 100km from Yellowknife • 40
Slide 14: The project has world-class existing infrastructure
The project has world-class existing infrastructure For personal use only Access to Canadian National Railway at Hay River Drill rig being de-mobilised on the Nechalacho Ice Road 40 Person Camp on Thor Lake Drill rig being mobilised via barge 13 INVESTOR PRESENTATION AUGUST 2020
Slide 15: North T Zone is one of the highest grade rare earth deposits
The North T Zone is one of the highest grade rare earth deposits in the world For personal use only North T Resource Resource Type Kt LREO (%) Pr6O11 (%) Nd2O3 (%) Measured 68 9.6% 0.5% 1.8% Indicated 33 7.8% 0.4% 1.5% Inferred 4 5.8% 0.3% 1.1% Total 105 8.9% 0.5% 1.6% Light Rare Earth Mineral Resou
Slide 16: Simple, low cost processing via ore sorting and leaching
The project is amenable to simple, low cost processing via ore sorting and leaching Process Testwork For personal use only Concentrate sample via sorting Ore Sorting via X-Ray Transmission (single pass) • 36% REO concentrate produced from 10.5% REO • Grades up to 41% REO achieved • REO recoveries up
Slide 17: Ore sorter installed capital cost estimated at $3.7M
A detailed engineering report has estimated installed capital cost of the ore sorter to be $3.7M For personal use only ITEM DESCRIPTION AUD$ 000 1 Ore Sorter 1,395 • Detailed engineering for the ore sorting operation is 2 Materials Handling Equipment 863 complete 3 Generator and Air Compressor Packa
Slide 18: Fully permitted for a 600kt mining and ore sorting operation
The project is fully permitted for a 600kt mining and ore sorting operation Pit Design For personal use only • A pit design has been completed to comply with received Land Use Permit and Water License • The pit design is sufficient to enable the further development of the mining and crushing service
Slide 19: North T development on track for operations in 2021
The development of the North T project is on track for operations to commence in 2021 with site preparation works underway For personal use only Next Steps • Site preparation works to commence in Q3 2020 including site clearing, camp upgrade and installation of the ore sorter sub-structure • Finalis
Slide 20: Implementation Stage: Long Term/Large Scale Production, Tardiff Project
For personal use only Implementation Stage 2 Long Term/Large Scale Production Nechalacho - Tardiff Project Aim for Production of 5,000t REO/yr for 20 years Operations targeted to commence 2024 19 INVESTOR PRESENTATION AUGUST 2020
Slide 21: North T sales revenue to fund the Tardiff Zone operation
Sales revenue from North T will be used to fund the development of a targeted 5,000t REO/yr operation at the Tardiff Zone For personal use only • The Upper Zone resource will be the focus of a large- Resource Type Mt TREO (%) HREO/TREO %NdPr/TREO scale, long-term operation (95Mt @ 1.46% TREO) • This
Slide 22: Tardiff Zone development fast-tracked using existing plant
With mineralogy similar to the North T Zone, development of the Tardiff Zone will be fast-tracked utilizing existing plant For personal use only Tardiff Zone Development of the Tardiff Zone will be leveraged off the North T project • The Tardiff Zone contains red bastnaesite crystals similar to the
Slide 23: Implementation Stage: Wigu Hill
For personal use only Implementation Stage 3 Wigu Hill 22 INVESTOR PRESENTATION AUGUST 2020
Slide 24: 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 Excellent infrastructure • Rail and Power within 10 km of project Previous Owners spent US$10m+ • Acquired for US$1m 2018 Potential to be a large world class resource • Current high grade
Slide 25: Initial focus for Wigu Hill will be the Twiga deposit
The initial focus for the Wigu Hill Project will be the Twiga deposit Wigu Hill contains a historical NI43-101 Resource of 3.3M @ 2.6%REO For personal use only 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
Slide 26: Twiga deposit contains large discrete bastnaesite crystals
Similar to Nechalacho’s T-Zone, the Twiga deposit contains large, discrete bastnaesite crystals enabling simple processing For personal use only Excellent Infrastructure Bastnasite mineralisation • Located close to Tazara railway, power and water • Amenable to beneficiation via ore sorting • Ability
Slide 27: Conclusion: on track to be the world's next rare earth producer
Conclusion - Vital on track to be the world’s next rare earth producer World Class Rare Earth Development Team – ex Lynas For personal use only Corporation Ltd • Lead by Vital Metals MD Geoff Atkins 2 World Class Projects • Nechalacho REO Project (Canada) 95mt at 1.46% TREO1 • Wigu Hill (Tanzania) 3
Slide 28: Appendix: Rare Earth Market
For personal use only APPENDIX RARE EARTH MARKET 27 INVESTOR PRESENTATION AUGUST 2020
Slide 29: Rare earth supply chains outside China are of strategic importance
The establishment of rare earth supply chains outside of China has been recognised to be of strategic importance For personal use only 28 INVESTOR PRESENTATION AUGUST 2020
Slide 30: Post COVID stimulus set to see strong demand from 2021 and 2022
Post COVID stimulus and consumer spending set to see strong demand from 2021 and 2022 For personal use only Rare Earth Market Report Forecast NdFeB Demand Source: Adamas Intelligence’s “Rare Earth Magnet Market Outlook to 2030” 29 INVESTOR PRESENTATION AUGUST 2020
Slide 31: EV growth to increase demand for rare earth magnets
The growth of EVs will result in increased demand for Rare Earth magnets forecast at 29% CAGR For personal use only Rare Earth Market Report Demand Growth for Electric Vehicles Source: Adamas Intelligence’s “Rare Earth Magnet Market Outlook to 2030” 30 INVESTOR PRESENTATION AUGUST 2020
Slide 32: Contact Us
For personal use only CONTACT US Geoff Atkins vital@vitalmetals.com.au Managing Director +61 8 6555 2950 31 INVESTOR PRESENTATION AUGUST 2020