Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (August 2024)
38 slides from Perpetua Resources's investor presentation, August 2024
Slide 1: Investor Presentation – August 2024
Investor Presentation – August 2024 N A S DAQ :P P TA T S X : P P TA Perpetua Resources Responsible Mining. Critical Resources. Clean Future.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Information and statements contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the
Slide 3: Cautionary Note & Technical Disclosure
CAUTIONARY NOTE & TECHNICAL DISCLOSURE The presentation has been prepared by Perpetua Resources management and does not represent a recommendation to buy or sell these securities. Investors should always consult their investment advisors prior to making any investment decisions. All references to “d
Slide 4: Why Perpetua Resources?
WHY PERPETUA RESOURCES? ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Establishing a national strategic asset with a critical mineral essential for national defense and th
Slide 5: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT Our goal is to transform an area abandoned after 100 years of mining activity into a national strategic asset for critical mineral and gold production through responsible mining and a sustainable approach to restore the environment for the benefit of all stakeholders. 5
Slide 6: Perpetua's Competitive Advantage
PERPETUA’S COMPETITIVE ADVANTAGE The Stibnite Gold Project can deliver long term solutions and sustained value for all stakeholders “Perpetua’s Stibnite-Gold Project produced antimony trisulfide for the U.S. ammunition industrial base Only during World War II and the Korean War, and it is the sole d
Slide 7: Largest Independent U.S. Gold Reserve
LARGEST INDEPENDENT U.S. GOLD RESERVE 1 Independent Gold Project Mineral Reserves1 2 Perpetua (Stibnite) 4.8 Castle Mountain 4.2 Marigold 2.9 Round Mountain 2.0 Haile3 1.8 DeLamar 1.8 Railroad-Pinion 1.6 Goldfield 1.3 Rochester 1.2 North Bullfrog 1.0 Florida Canyon 0.9 Wharf 0.8 0.0 1.0 2.0 3.0 4.0
Slide 8: High-Grade, Open Pit Gold Deposit
HIGH-GRADE, OPEN PIT GOLD DEPOSIT Independent Open Pit Gold Deposits1 2 Perpetua (Stibnite) Years 1-4 2.2 Haile3 1.6 2 Perpetua (Stibnite) Yrs LOM 1.4 Goldfield 1.0 Wharf 1.0 Round Mountain 0.8 Railroad-Pinion 0.8 Hasbrouck 0.6 Marigold 0.5 Castle Mountain 0.5 Bald Mountain 0.5 Mesquite 0.5 DeLamar
Slide 9: Poised to Be One of Largest U.S. Gold Mines
POISED TO BE ONE OF LARGEST U.S. GOLD MINES Independent Projects and Producing Gold Mines1 Perpetua (Stibnite) Years 1-4 3 463 3 Perpetua (Stibnite) Yrs LOM 297 Marigold 278 Round Mountain 236 Haile4 163 Bald Mountain 158 Railroad-Pinion * 124 Wharf 94 Mesquite 88 * Goldfield 77 Florida Canyon 71 De
Slide 10: Lowest Quartile All-In Sustaining Costs
LOWEST QUARTILE ALL-IN SUSTAINING COSTS 1 Among lowest cost North American developers… …and lowest cost relative to producers 3 Perpetua (Stibnite) Yrs 1-4 3 Perpetua (Stibnite) Yrs 1-4 $438 $438 3 3 Perpetua (Stibnite) LOM $636 Perpetua (Stibnite) LOM $636 Alamos $1,160 Skeena (Eskay Creek) $687 Ag
Slide 11: Deep Discount and Leverage to Gold Price
DEEP DISCOUNT AND LEVERAGE TO GOLD PRICE 1 TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE $2,350 $4,603 19% $2,943 Gold Price (US$/oz) $2,100 $3,815 24% $2,404 $1,850 $3,026 30% $1,864 $1,600 $2,232 NPV at 0% 43% $1,320 NPV at 5% $1,434 % P/NPV 5% $1,350 73% $771 Perpetua Mkt Cap2 $566 $0 $1,
Slide 12: Establishing a National Strategic Asset
ESTABLISHING A NATIONAL STRATEGIC ASSET ANTIMONY - IT’S CRITICAL ✓ Essential to economic and national security USES FOR ANTIMONY ✓ U.S. has no domestic mined production ✓ Clean energy & national defense applications ✓ China & Russia dominate the world supply (>70%) Energy World Antimony 2022 Product
Slide 13: Expected to Average ~35% of U.S. Demand
EXPECTED TO AVERAGE ~35% OF U.S. DEMAND 1,2 Stibnite Gold Project Recovered Antimony2 60,000,000 50,000,000 2022 U.S. Annual Consumption1 Antimony (lbs) 40,000,000 51% 30,000,000 44% 33% 34% 20,000,000 21% 15% 10,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Stibnite Gold Project - Year of Ope
Slide 14: Whole of Government Approach
WHOLE OF GOVERNMENT APPROACH $1.8 $75 7+ Billion1 Million2 Years Indication of up to $1.8B Critical minerals awards, Interagency permitting review from Export-import Bank Of combined, to advance antimony with robust stakeholder The United States for research, construction engagement and improved Sti
Slide 15: Restoring an Abandoned Brownfields Site
RESTORING AN ABANDONED BROWNFIELDS SITE ENVIRONMENTAL SOLUTIONS FUNDED THROUGH MINE DEVELOPMENT SEDIMENTATION METAL LEACHING BLOCKED FISH MIGRATION Early repair of the largest Pick up, reprocess, reuse and Re-establish fish migration and provide source of sedimentation safely store 10.5M tons of tem
Slide 16: Path Forward for the Stibnite Gold Project
PATH FORWARD FOR THE STIBNITE GOLD PROJECT 1 U.S. Forest Service identified Perpetua’s Proposed Plan as Preferred Alternative2 in Supplemental EIS 2025 2028 Construction Commercial operations Early 2025 Decision and ongoing restoration Ancillary permits and Project Financing Q4 2024 Final Record of
Slide 17: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Highlights: Anticipated Milestones1: ✓ Supplemental Draft EIS published (Oct 2022) ❑ Final Environmental Impact Statement & Draft Record 2 of Decision (Q3 2024) ✓ Awarded $24.8 million under Defense Production Act (DPA) (Dec 2022) 2 ❑ Final Record of
Slide 18: Valuation Expected to Re-Rate Once Permitted
VALUATION EXPECTED TO RE-RATE ONCE PERMITTED Attractive entry price based on current prices 1.4x Osisko Mining $499 1.2x 1.2x Artemis $303 1.0x 3,4 1.0x Skeena $263 Price-to-NAV 0.8x 0.7x De Grey $237 0.6x 0.5x 0.5x 0.5x Osisko Development $135 0.4x 1,2 0.3x Perpetua $118 0.2x NovaGold $87 0.0x $- $
Slide 19: A Unique American Opportunity
A UNIQUE AMERICAN OPPORTUNITY ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period * ✓ Establishing a national strategic asset with a critical mineral essential for national defense
Slide 20: Appendix
Perpetua Resources Appendix
Slide 21: Right Leadership for the Next Phase
RIGHT LEADERSHIP FOR THE NEXT PHASE EXECUTIVE TEAM Jon Cherry Jessica Largent Mckinsey Lyon Alan Haslam Michael Wright Laurel Sayer Board Director & CEO Board Director & CFO VP, External Affairs VP, Permitting VP, Projects Senior Advisor to CEO CORPORATE BOARD Marcelo Kim Andy Cole Bob Dean Laura Do
Slide 22: Idaho: A Premier Mining Jurisdiction
IDAHO: A PREMIER IDAHO Lucky Friday Mine MINING JURISDICTION Golden Chest Mine Idaho Strategic Resources Coeur d’Alene Hecla Mining Galena Complex Sunshine Mine Americas Gold and Silver Sunshine Silver Stibnite Gold • Well-defined Permitting Process Project (Au-Sb) Perpetua Resources Beartrack-Arnet
Slide 23: Department of Defense Awards
DEPARTMENT OF DEFENSE AWARDS Critical minerals awards of up to $75 million* combined to advance antimony research, construction readiness, permitting, and engineering. Advance permitting & construction Demonstrate mil-spec antimony trisulfide readiness SBIR DOTC DPA Title III Small Business Innovati
Slide 24: Improving a Legacy
IMPROVING A LEGACY P L A N D ES I G N E D W I T H P O S T M I N I N G R ES TO R AT I O N G OA L S I N M I N D, I N C LU D I N G W I L D L I F E , F I S H E R I ES & D I S P E RS E D R EC R EAT I O N • Create a self-sustaining natural environment • Support healthy fish and wildlife population • Signi
Slide 25: Permitting – Next Steps
PERMITTING – NEXT STEPS NOA for DEIS In Federal EIS Project Alternatives & Register Submittal Administrative Pre-work Initiation & Environmental Prepare of PRO Approval & Planning Public Scoping Analysis Draft EIS DEIS Comment Period We are here Engineering & Design NOA for FEIS & Draft ROD Publish
Slide 26: NEPA Scope Narrowed Following SDEIS
1 NEPA SCOPE NARROWED FOLLOWING SDEIS 2022 Supplemental Preferred Alternative 2020 DEIS DEIS Identified Modified Mine Plan – Burntlog Route Modified Mine Plan – Burntlog Route Plan of Restoration and Operations (PRO) Alternative Alternative Modified Mine Plan - Johnson Creek 2022 SDEIS Preferred Alt
Slide 27: Mineral Resources & Reserves
MINERAL RESOURCES & RESERVES 1 Proven & Probable Mineral Reserves2: Measured & Indicated Mineral Resources3: 4.8 Mozs Gold @1.43 g/t 6.0 Mozs Gold @1.42g/t 148 Mlbs antimony at 0.06% contained in 104 Mt 206 Mlbs antimony at 0.07% contained in 132 Mt 3.500 Gold M&I Mineral Resource Gold (thousands ou
Slide 28: Exploration Upside
EXPLORATION UPSIDE* EXPANSIVE LAND PACKAGE EXISTING DEPOSITS: • Northeast of Yellow Pine Deposit • Below Hangar Flats pit & Old Defense Minerals Exploration Act (DMEA) working area • West End along strike and at depth P R I O R I T Y E X P LO R AT I O N TA R G E T S : • High grade targets (Garnet, S
Slide 29: Perpetua to Power Ambri's Low-Cost Battery
PERPETUA TO POWER AMBRI’S LOW-COST BATTERY Agreement to supply only responsible & domestically mined source of antimony for stationary, long duration, daily cycle energy storage enabling the transition to cleaner energy SUPPLY AGREEMENT 1: • Current commitment of Perpetua’s antimony can power over 1
Slide 30: Antimony-Based Liquid Metal Batteries
ANTIMONY-BASED LIQUID METAL BATTERIES ABOUT AMBRI: • Combining technological innovation with commercial application to store energy longer, in a scalable way that will change the way power grids operate • Low-cost battery comprised of a liquid calcium alloy anode, a molten salt electrolyte and a cat
Slide 31: Ore Processing
ORE PROCESSING FLOW SHEET Crushing, SAG Dore metallurgical recoveries & Ball Milling • Gold at 68% - 91% (88.9% average) • Silver at 23.2% Average High Sb Antimony Stibnite Flotation Sulfide Concentrate Antimony concentrate metallurgical recoveries 1, 2 • Antimony at 84% - 91% (89.5% average) Low Sb
Slide 32: Feasibility Study – Highlights
FEASIBILITY STUDY – HIGHLIGHTS1 Early Production Life-of-Mine Notes: Component 1. In this presentation, “M” = Years 1-4 Years 1-15 million, “k” = thousand, all Total Recovered Gold 1,853 koz 4,238 koz amounts in US$, gold and silver reported in troy ounces (“oz”) Total Recovered Antimony 74 Mlbs 115
Slide 33: Feasibility Study - Capital Cost Summary
FEASIBILITY STUDY - CAPITAL COST SUMMARY Initial Sustaining Closure Total Notes: Area Detail CAPEX CAPEX CAPEX CAPEX 1. Initial mining CAPEX includes environmental remediation costs. (M $) (M $) (M $) (2) (M $) 2. Closure and mitigation assume self-performed costs, which will Mine Costs (1) 84 119 -
Slide 34: Feasibility Study - Operating Cost Summary
FEASIBILITY STUDY - OPERATING COST SUMMARY Years 1-4 Life of Mine Total Production Cost Item Notes: ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) 1. Cash costs and All-in Sustaining Mining 9.71 156 8.22 205 Costs are non-GAAP measures. See “Non-GAAP measures” at the Processing 13.13 211 12.76 318 en
Slide 35: Annual After-Tax Cash Flow (@ $1,850 Gold Price)
ANNUAL AFTER-TAX CASH FLOW (@ $1,850 GOLD PRICE) After-Tax Cash Flow (M$) 1 Year of Operation 1. Based on the 2020 Feasibility Study (FS) which is intended to be read as a whole and sections should not be read or relied upon out of context. The information in this presentation is subject to the assu
Slide 36: Supportive Shareholder Base
SUPPORTIVE SHAREHOLDER BASE SHAREHOLDERS** Herr Investment Group Blackrock 2.1% CAPITAL STRUCTURE* 2.6% RESEARCH COVERAGE ❖ Issued & Outstanding 64.6 Million Sun Valley Gold ❖ B. Riley Financial – Lucas Pipes 7.2% ❖ Options 1.09 Million Kopernik 8.1% ❖ H.C. Wainwright – Heiko Ihle Paulson 38.4% ❖ Sh
Slide 37: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with NI 43-101 under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”). Independent QPs for the FS include: Richard Zimmerman, SME-RM (onsite and offs
Slide 38: Non-GAAP Measures
NON-GAAP MEASURES NON-GAAP MEASURES To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose certain projected non-GAAP financial measures. The projected non-GA
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