Wa Kaolin Limited · ASX:WAK

Wa Kaolin — Investor Presentation (February 2022)

23 slides from Wa Kaolin's investor presentation, February 2022

  1. Slide 1: Commissioning Stage 1 & Accelerating Stage 2 Production Investor Summary

    Commissioning Stage 1 & Accelerating Stage 2 Production Investor Summary February 2022 Production of High Purity Kaolin From One of the World’s Largest Primary Resources

  2. Slide 2: Important Notice and Disclaimer

    Important Notice and Disclaimer  This presentation has been prepared by WA Kaolin Ltd (WAK). This document contains background responsibility for any part of this presentation, or for any errors in or omissions from this presentation information about WAK current at the date of this presentation. T

  3. Slide 3: Production to Emerge into a Strong Demand Environment

    Production to Emerge into a Strong Demand Environment  Installation and pre-commissioning of Stage 1 processing plant at Wickepin Kaolin Project, WA is on time and on budget  All process equipment is fabricated and on site and installation due for completion by the end of Q1 2022  First productio

  4. Slide 4: Corporate Overview

    Corporate Overview Corporate Structure 12 Month Price Graph Price (A$) Volume (m) Shares on Issue 282,821,885 0.28 8 0.26 7 Market Capitalisation $56.6m 0.24 6 @ 20c p/share 5 0.22 4 Unlisted Options (various) 167,232,813 0.20 3 0.18 2 Performance Rights 27,500,000 0.16 1 0.14 0 Cash as at 31/12/202

  5. Slide 5: Freight Market is Driving Kaolin Prices

    Freight Market is Driving Kaolin Prices Demand  Global Kaolin demand continues growth in line with forecast at CAGR1 3.5%  The delivered price of kaolin is increasing strongly as shipping costs escalate  The explosive international freight market (particularly US/EU into Asia) has delivered a com

  6. Slide 6: Acceleration of Stage 2 Development

    Acceleration of Stage 2 Development WAK can facilitate the acceleration of Stage 2 through:  Successful completion of Stage 1 on time and within budget  Implementation of Stage 2 Infrastructure during Stage 1 commissioning Capital Requirement for Stage 2  Initial Stage 2 Capex estimate $13.6 mill

  7. Slide 7: Working Capital Facility Details

    Working Capital Facility Details  Stage 1 production of 200,000t implies circa 16,700t of sales per month, circa $4.0 million a month of sales  WA Kaolin's sales are executed with a mix of mainly FOB and CIF terms  To support this ramp up in production and sales, the Company has also secured a wo

  8. Slide 8: Use of Proceeds

    Use of Proceeds  Combination of secured working capital facility Item A$ million and new equity total $12m Source of funds  Circa $5.4m will be applied to working capital Secured Working Capital Facility 5.0 and R&D  Circa $4.5m will be applied to Stage 2 Placement & SPP 7.0 infrastructure to rea

  9. Slide 9: Equity Raise Details

    Equity Raise Details WA Kaolin is raising A$7.0 million (before costs) Offer Structure and Single tranche share placement of fully paid ordinary shares (“New Shares”) to sophisticated, professional and other institutional investors in Australia and Size overseas to raise A$6.1 million (before costs)

  10. Slide 10: Indicative Timetable

    Indicative Timetable Event Date Trading halt Monday, 7 February Record date for the SPP 2pm (WST) Tuesday, 8 February ASX announcement Placement & underwritten SPP, Appendix 3B lodged with ASX Pre-open Wednesday, 9 February Trading halt lifted – trading resumed on the ASX 7am (WST) Wednesday, 9 Febr

  11. Slide 11: Wickepin - A high quality, long life, permitted Kaolin Project

    Wickepin - A high quality, long life, permitted Kaolin Project De-risked through investment  ~$42 million invested before listing since assets acquired from Rio Tinto  Since IPO late 2020, $14m invested in staged ramp up Proven Low Cost Production  Currently producing small scale commercial plant

  12. Slide 12: Staged Ramp Up to 400,000 tpa and beyond

    Staged Ramp Up to 400,000 tpa and beyond Stage 1 Ramp Up – Current Operations Stage 2 Ramp Up Future Scale Up Production Q2 2022 K99 K99 Expand K99 Further Expansion of Proof of Concept Plant, Kwinana, WA Commercial Scale, Wickepin Capacity, Wickepin K99 Capacity, Wickepin  Existing Production  25

  13. Slide 13: 2021 Milestones

    2021 Milestones Construction on target for completion Q2 2022  Stage 1 on time and on budget with construction now 90% complete  All process equipment is fabricated and on site and all installation and pre-commissioning will be complete by end Q1 2022  Purchase and testing complete of key compone

  14. Slide 14: Stage 2 Anticipated Program

    Stage 2 Anticipated Program 2021 2022 2023 2024 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Stage 1 Construction Stage 1 Installation Stage 1 Commissioning Stage 2 Infrastructure Stage 2 Construction Stag

  15. Slide 15: 2021 Stage 1 Program – Progressing to Production

    2021 Stage 1 Program – Progressing to Production 15

  16. Slide 16: The Plant and The Pit

    The Plant and The Pit 16

  17. Slide 17: Finalisation of Freight Contract

    Finalisation of Freight Contract Shipping Contract  During Stage 1 production ramp up, volume of kaolin shipments from Wickepin to port will increase significantly – reaching peak of 160 containers per week  WAK currently in final negotiations for shipping contract to ship empty containers from Fr

  18. Slide 18: Conclusion

    Conclusion  WA Kaolin has delivered Stage 1 on time and on budget  The task now is to commission and sell product to plan including volumes, timing, prices and costs  WA Kaolin’s experiences with its Kwinana plant gives it great confidence in commissioning Stage 1 with processes, operations and c

  19. Slide 19: Reserve & Resource Statement

    Reserve & Resource Statement  WAK has a Probable Ore Reserve of 30.5mt of kaolinised granite on Mining Lease M70/1143  WAK has reported an Inferred Mineral Resource at 644.5mt of kaolinised granite Yield Kaolinised Granite Category Lease Area Brightness (%) (Million Tonnes) Ore Reserve 2020 Probab

  20. Slide 20: Risks

    Risks Risks associated with WAK including, but not limited to: A key factor for WAK is the price of kaolin. Kaolin prices fluctuate due to a variety of factors including supply and demand fundamentals, international economic and political trends, expectations of inflation, currency exchange rate flu

  21. Slide 21: Risks continued

    Risks continued Risks associated with WAK including, but not limited to: WAK is currently negotiating offtake agreements for its intended expanded production. WAK has customers in place for current production and LOI’s for a certain quantity of the intended expanded production. However, there is a r

  22. Slide 22: Risks continued

    Risks continued General Risks The agreements entered into by WAK with its current customers / distributors outside Australia are in USD. Demand and supply of capital and currencies, forward trading activities, relative interest rates and exchange rates and relative economic conditions can impact for

  23. Slide 23: Andrew Sorensen CEO

    Andrew Sorensen CEO asorensen@wakaolin.com.au +61 8 9439 6300 wakaolin.com.au Investor Relations Victoria Humphries victoria@nwrcommunications.com.au 23

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