Reward Minerals Ltd · ASX:RWD
Reward Minerals — Shareholder Meeting (July 2020)
22 slides from Reward Minerals's shareholder meeting presentation, Jul 22, 2020
Slide 1: Annual General Meeting
For personal use only REWARD Developer of the MINERALS largest high-grade brine SOP Deposit in Australia LIMITED Annual General Meeting 22 July 2020 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER For personal use only This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Althou
Slide 3: Reason to Invest
REASON TO INVEST For personal use only Reward is developing the Lake Disappointment SOP Project: Largest State Australian Detailed, Environmental high-grade conservative approval Highest PFS Native title Federal brine SOP achieved evaporation, secured, Environmental deposit June 2020 Lowest ILUA per
Slide 4: Contents
CONTENTS For personal use only ►Corporate Snapshot ►2019 Highlights ►2020 Progress to date ►LD Project Metrics ►Officer Basin Update ►Upcoming Activities 4
Slide 5: Reward Corporate Snapshot
REWARD CORPORATE SNAPSHOT Colin McCavana – Non-Executive Chairman For personal use only Capital Structure 21 July 2020 ASX:RWD - 30+ years experience in mining and earthmoving industries Ordinary Shares on Issue 162.6m - Ops and development management of Australian and international projects Rights
Slide 6: 2019 Highlights
2019 HIGHLIGHTS Cautious and consistent progress whilst preserving cash For personal use only ► Infill Drilling Program Assay Results Confirms Excellent Shallow Grade Profile ► Shallow (nominally 3 mbgl(1)) bores: 14.45 kg/m3 SOP ► Deeper (nominally 3 – 6 mbgl) bores: 14.62 kg/m3 SOP ► Average: 14.5
Slide 7: 2020 Progress to Date
2020 PROGRESS TO DATE Continuing to make progress… For personal use only ► WA Minister for Environment Approves LD for development ► Momentous Project milestone achieved 3 June 2020 ► Culmination of 4-year assessment and 7-year evaluation/study process ► First (& to date only) WA SOP Project to achi
Slide 8: LD Project Metrics – Costs & Production
LD PROJECT METRICS – COSTS & PRODUCTION For personal use only • A$345 M, includes indirects and owners costs (+/-20%) Capital cost • A$451 M, includes contingency & pre-production costs • At least 400,000 tpa • ~9 Mt SOP produced over ~25 years Production • Less than 10% of the resource extracted, a
Slide 9: LD Project Metrics - Economics
LD PROJECT METRICS - ECONOMICS For personal use only • 200 direct long-term jobs created (excluding haulage) Societal • LOM Martu Royalties: ~$63 M • LOM State Royalties: ~$225 M ~$964 M Returns • Corporate Tax Payments: ~676 M Sustainable • Average EBITDA Margin – 45% • Average Annual EBITDA – ~$11
Slide 10: LD Project – Operations / Process
LD PROJECT – OPERATIONS / PROCESS For personal use only A$91/t A$102/t Other Opex Costs Closure – A$2/t Martu Royalty – A$7/t FOB Cash Cost: Road Maint - A$15/t A$335/t Site Services - A$22/t (US$258/t) EBITDA Margin: ~44.6% A$105/t @ US$500/t Ex-Works Cost: A$239/t (US$180/t) Source: All informatio
Slide 11: LD Project – Permitting Status
LD PROJECT – PERMITTING STATUS Government of Western Australia: Environmental Protection Authority For personal use only Status of Active Formal Assessments - s. 38: Part IV of the Environmental Protection Act 1986 Last Updated: 22 June 2020 Stage 5 Stage 1 a nd 2 Stage 3 Stage 4 Propos a l Informa
Slide 12: Officer Basin Exploration Introduction
OFFICER BASIN EXPLORATION INTRODUCTION Shallow SOP mineralisation is the target For personal use only ► Gibson Desert, ~400km east of Newman ► Limited oil/gas exploration historically ► Officer, Canning and Amadeus Basins are large Sedimentary Evaporite Basins ► Browne is the host formation for evap
Slide 13: General Context
GENERAL CONTEXT ► The world’s two largest potash basins which have For personal use only been mined extensively are located in the Saskatchewan Province of Canada and in the Perm region of Russia ► The giant Elk Point Basin in Saskatchewan contains over 100 billion tonnes potash at depths between 60
Slide 14: Gibson Area Context
GIBSON AREA CONTEXT Midway Well & Madley Prospects: Targeting shallow SOP mineralisation For personal use only ► In the Gibson area of the Western Officer Basin over 250,000km2 of the Browne Formation occurs at shallow depth and outcrops in numerous locations Midway Well ► Erosion of the outcropping
Slide 15: Officer Basin Stratigraphy
OFFICER BASIN STRATIGRAPHY For personal use only Evaporite bearing Browne Formation in the Western Officer Basin is the target Haines, 2012. GSWA Simplified stratigraphy and petroleum systems of the Officer Basin 15
Slide 16: Midway Well Cross Section
MIDWAY WELL CROSS SECTION Targeting shallow SOP mineralisation For personal use only ► Tenement coverage over Midway Well Prospect – 5,561km2 ► The top of the Browne Formation has been eroded away, offering shallow drill targets ► Three interpreted salt rupture zones have been interpreted from seism
Slide 17: Early Success at Midway Well
EARLY SUCCESS AT MIDWAY WELL ► Potash-rich groundwater intersected in first drill hole For personal use only Drill Hole B1 ► Intersection was made at shallow depth – 87.1 metres ► Assay shows encouraging grade with high K: Na ratio High Brine Source i K SO4 K2SO4 Ca Mg Na Cl NaCl Midway Well Lake 6.
Slide 18: Current/Upcoming Activities
CURRENT/UPCOMING ACTIVITIES* For personal use only ► LD Project: ▪ Finalise Commonwealth EPBC Act Approval ▪ Conduct pump-flow tests for Resource update and conversion ▪ Conduct final phase of metallurgical trials (independently) ▪ Pond construction/seepage trials ► Officer Basin Project: ▪ Complete
Slide 19: Appendices
For personal use only APPENDICES 21
Slide 20: Compliance Statements
COMPLIANCE STATEMENTS Competent person statements: For personal use only The information in this report that relates to the existing Lake Disappointment Project Mineral Resource Estimate and hydrogeology is extracted from the report titled “Lake Disappointment (LD) Project Confirmed as a Globally Si
Slide 21: Compliance Statements
COMPLIANCE STATEMENTS For personal use only Notes (continued): Sources of information for slides 8 and 9 in this presentation: • Infill Drilling Program Assay Results Confirms Excellent Shallow Grade Profile See Reward Quarterly for the period ending 31 March 2019, published 30 April 2019 • LD recei
Slide 22: Reward Minerals Ltd contact details
For personal use only Reward Minerals Ltd 159 Stirling Highway Nedlands, WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com 22