Argosy Minerals Limited · ASX:AGY
Argosy Minerals — Investor Presentation (August 2020)
29 slides from Argosy Minerals's investor presentation, Aug 19, 2020
Slide 1: Argosy: A New Lithium Producer
For personal use only ARGOSY A NEW LITHIUM PRODUCER ASX: AGY www.argosyminerals.com.au August 2020 1
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only. assumptions in respect of metal production and prices, of this information in the form and context in which it Neither this presentation nor the information contained operating costs and results, capital expenditures, ore appears. The in
Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS For personal use only • The PEA is a preliminary technical and economic shares. It is also possible that Argosy could pursue assumptions and technical parameters study of the potential viability of the Rincon Lithium other ‘value realisation’ strategies such as a sale, underpin
Slide 4: Company Overview
For personal use only Overview Company 4
Slide 5: AGY Share Price Performance and Investment Snapshot
AGY SHARE PRICE PERFORMANCE (AGY:ASX) A$ Volume For personal use only 0.18 25,000,000 0.16 INVESTMENT 0.14 20,000,000 Average Daily SNAPSHOT 0.12 15,000,000 Trading Volume: 0.10 ~2.0m shares 0.08 10,000,000 Average Daily 0.06 Trading Value: 0.04 5,000,000 0.02 $160,000 0.00 - 02-Jan-19 02-Apr-19 02-
Slide 6: Investment Snapshot
INVESTMENT SNAPSHOT For personal use only Industry Leading Expertise Proven Technology Strategically Positioned o Pablo Alurralde +30years industry o Exceptional PEA results with an IRR of o Successful fast-track lithium experience and 15 years for a major 53%, Pre-tax NPV of US$399m and development
Slide 7: Rincon Development
For personal use only Rincon Development 7
Slide 8: Rincon Lithium Project
RINCON LITHIUM For personal use only PROJECT Rincon Lithium Project located in the world-class “Lithium Triangle” in Salta Province, Argentina Argosy currently owns 77.5%, moving to 90% ownership of Puna Mining S.A. upon commercial development milestone One of the most advanced lithium developments
Slide 9: Rincon Lithium Project – Key Partner
RINCON LITHIUM PROJECT – KEY PARTNER For personal use only Patent for “Recovery of Li values from sodium Pablo Alurralde – President Rincon JV Project saturate brine” US 8309043 B2 o Chemical Engineer and Master of Philosophy, former director of FMC (now Livent) Argentina operations o Over 15 years’
Slide 10: Staged Project Development
STAGED PROJECT DEVELOPMENT RATIONALE AND BENEFITS OF STRATEGY For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity Benefits of operational plant: Rationale for 2,000tpa Plant: Strategy to build 10,000tpa Plant: Proved the chemical process
Slide 11: Staged Project Development – Update
STAGED PROJECT DEVELOPMENT - UPDATE For personal use only Industrial Scale Pilot Plant ~2,000tpa LCE Plant Capacity ~10,000tpa LCE Plant Capacity Sales Agreement executed Permitting approvals granted PEA completed on base case with Mitsubishi RtM to sell up for 2,000tpa operation ~10,000tpa op
Slide 12: Rincon Lithium Project – Green Credentials
RINCON LITHIUM PROJECT – GREEN CREDENTIALS o Argosy has developed a chemical process technology with a minimal environmental footprint For personal use only o The two key areas of the technology that differentiate from other LCE producers are#: 1. Lower energy use – consuming less than 1MW for 2,000
Slide 13: Rincon Lithium Project – Social Responsibility
RINCON LITHIUM PROJECT – SOCIAL RESPONSIBILITY For personal use only o A broad range of CSR initiatives undertaken within the Salta Province. Our focus in the region relies on regular engagement within the community and all stakeholders o CSR policies first implemented in 2017, building relationship
Slide 14: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION The Project lies within Salta Province, ~3,700m ASL, serviced by city of Salta with population of ~600,000 The Puna region is known for its high eva
Slide 15: Rincon Project: Location and Infrastructure
RINCON PROJECT: LOCATION AND INFRASTRUCTURE For personal use only RINCON LIES CLOSE TO INFRASTRUCTURE IN SALTA PROVINCE, A PROLIFIC MINING JURISDICTION o The Project ideally located to nearby infrastructure o Commercial scale (~300ha) evaporation Existing ~38ha ponds to be constructed ~3km from oper
Slide 16: Tonopah Development
For personal use only Tonopah Development 16
Slide 17: Tonopah Project: Strategic Lithium Prospect
TONOPAH PROJECT: STRATEGIC LITHIUM PROSPECT For personal use only TONOPAH IS STRATEGICALLY LOCATED IN THE LITHIUM BATTERY VALLEY Argosy acquired the project in August 2019 Project lies ~4km from Albemarle’s Silver Peak lithium brine operation – the only lithium carbonate producer in USA (+50yrs) Str
Slide 18: Tonopah Project: Location and Infrastructure
TONOPAH PROJECT: LOCATION AND INFRASTRUCTURE HIGHLY PROSPECTIVE LITHIUM PROSPECT For personal use only o The Project is located within the Big Smokey Valley region in Nevada, USA, and comprises 425 claims covering an area of ~34.25km² o directly analogous to the neighbouring Silver Peak Lithium Mine
Slide 19: US Battery Market Aspirations
US BATTERY MARKET ASPIRATIONS For personal use only U.S. MOVING FAST TO BUILD BATTERY CAPACITY Dr. Herbert Diess, CEO of Volkswagen AG, said in January, “The US is one of the most important locations for us and producing electric cars in Favourable mining jurisdiction, supporting Chattanooga (Tennes
Slide 20: Market Analysis
For personal use only MARKET ANALYSIS 20
Slide 21: Delayed Lithium Production
DELAYED LITHIUM PRODUCTION LCE PRICE IMPACT TO BE MATERIAL IN COMING YEARS For personal use only The incentive price required to support new production to meet forecast lithium demand will need to be materially higher than today’s market price Source: Benchmark Mineral Intelligence Lithium Forecast
Slide 22: Megafactory Growth Forecast
MEGAFACTORY GROWTH FORECAST LCE PRICE IMPACT TO BE MATERIAL IN COMING YEARS For personal use only GWh 2,500 2,000 “Anticipated growth in LCE demand will require extraordinary 1,500 growth in production” 1.6Mt LCE 1,000 “The lithium sector will face huge technical 500 and funding challenges ~340kt LC
Slide 23: Government Subsidies Unparalleled
GOVERNMENT SUBSIDIES UNPARALLELED GOVERNMENT INCENTIVES & CO2 EMISSION STANDARDS WILL DRIVE EV DEMAND For personal use only Cause Effect Governments push to lower carbon emissions Large incentives paid to purchase new EVs Europe Europe Inventoryleading overhang the way o Romania - €10,000 o 2021 Eur
Slide 24: Lithium Market: Where to From Here?
LITHIUM MARKET: WHERE TO FROM HERE? FUNDAMENTALS REMAIN STRONG – DOWNSIDE REMAINS WEAK For personal use only Covid-19 Inventory Overhang Low EV Sales Key Drivers to Growth/Sustainability Threats to the Lithium Industry o EV battery cost continues to reduce o China & Europe – abandon push towards o G
Slide 25: A New Lithium Producer
A New Lithium For personal use only Producer 25
Slide 26: Argosy – A New Lithium Producer
ARGOSY – A NEW LITHIUM PRODUCER For personal use only Estimated operating costs at the lower end of the industry operational cost curve Completed Ability to generate exceptional annual cash flows under all lithium price outlook scenarios Rincon Lithium Long asset life – 16.5 year mine life @ 1
Slide 27: Contact Us
For personal use only To discuss how Argosy Minerals could benefit you, please contact: Contact Jerko Zuvela - Managing Director T: +61 8 6188 8181 Us E: admin@argosyminerals.com.au Level 2, 22 Mount Street Perth WA 6000 Australia 27
Slide 28: Appendix – Market Transactions
Appendix – Market Transactions Positive macro-economic developments underpin strong growth outlook For personal use only Off-take Agreements Strategic Investments o Volkswagen (VW) signed a o Rosatom (via Uranium One) secures option to purchase up to a Motor vehicle MOU with Ganfeng Lithium 51% stak
Slide 29: Appendix – Industrial Scale Pilot Plant
Appendix – Industrial Scale Pilot Plant For personal use only 29
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