Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (September 2023)
38 slides from Perpetua Resources's investor presentation, September 2023
Slide 1: Investor Presentation – September 2023
Investor Presentation – September 2023 N A S DAQ : P P TA T SX : 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: 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 2.8 Haile 2.5 Round Mountain 2.2 DeLamar 1.8 South Railroad 1.6 Florida Canyon 0.9 Wharf 0.9 Hasbrouck 0.8 Bald Mountain 0.6 Mesquite 0.5 0.0 1.0 2.0 3.0 4.0 5.0
Slide 7: High-Grade, Open Pit Gold Deposit
HIGH-GRADE, OPEN PIT GOLD DEPOSIT Independent Open Pit Gold Deposits1 2 Perpetua (Stibnite) Yrs 1-4 2.2 Haile 1.7 2 Perpetua (Stibnite) LoM 1.4 Wharf 0.9 South Railroad 0.8 Round Mountain 0.7 Hasbrouck 0.6 Castle Mountain 0.5 Bald Mountain 0.5 Mesquite 0.5 Marigold 0.5 DeLamar 0.5 Florida Canyon 0.3
Slide 8: 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) Yrs 1-4 3 463 3 Perpetua (Stibnite) LoM 297 Round Mountain 226 Bald Mountain 214 Marigold 195 Haile 176 South Railroad* 124 Mesquite 124 DeLamar* 110 Wharf 80 Hasbrouck* 70 Florida Canyon 4
Slide 9: Lowest Quartile All-In Sustaining Costs
LOWEST QUARTILE ALL-IN SUSTAINING COSTS 1 Among lowest cost North American developers… …and lowest cost relative to senior producers 3 3 Perpetua (Stibnite) Yrs 1-4 $438 Perpetua (Stibnite) Yrs 1-4 $438 3 Perpetua (Stibnite) LoM $636 3 Perpetua (Stibnite) LoM $636 Skeena (Eskay Creek) $652 Novagold
Slide 10: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE 1 $2,350 $4,603 $2,943 Gold Price (US$/oz) $2,100 $3,815 $2,404 $1,850 $3,026 $1,864 $1,600 $2,232 NPV at 0% $1,320 NPV at 5% $1,350 $1,434 $771 Perpetua Mkt Cap2 $218 Current Mkt Cap2 Only 12% of NPV2 (
Slide 11: 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 12: Expected to Average ~35% of U.S. Demand
EXPECTED TO AVERAGE ~35% OF U.S. DEMAND1,2 Stibnite Gold Project Recovered Antimony2 60,000,000 50,000,000 2022 U.S. Annual Consumption1 40,000,000 Antimony (lbs) 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 Oper
Slide 13: Defense Production Act (DPA) Award
DEFENSE PRODUCTION ACT (DPA) AWARD Critical minerals award of $24.8 million to advance construction readiness and permitting ✓$24.8 million to complete environmental and engineering studies necessary to obtain a Final EIS, Final Record of Decision and other ancillary permits ✓Funding allows Perpetua
Slide 14: 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 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 PROJECT1 U.S. Forest Service identified Perpetua’s Proposed Plan as Preferred Alternative2 in Supplemental EIS Mid 2024 2027 Construction Commercial operations Mid 2024 Decision and ongoing restoration Ancillary permits and Project Financing March 2024 Final Record
Slide 17: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Anticipated Milestones1: ✓ Awarded Department of Defense SBIR funding (Sep 2022) ❑ Final Environmental Impact Statement & Draft Record of 2 Decision (Dec 2023) ✓ Supplemental Draft EIS published (Oct 2022) 2 ❑ Final Record of Decision
Slide 18: Valuation Expected to Re-Rate Once Permitted
VALUATION EXPECTED TO RE-RATE ONCE PERMITTED 75% Pre-Permitting Permitted Market Cap As % of Spot NAV3,4 49% 49% 50% 43% 44% 34% 25% 12% 0% Perpetua1,2 Skeena Marathon NovaGold Artemis Ascot 1. Perpetua Resources market cap based on fully diluted market cap using closing price as of September 7, 202
Slide 19: Exposure to Gold at Attractive Entry Price
EXPOSURE TO GOLD AT ATTRACTIVE ENTRY PRICE Leading Gold Reserves per share… …at an attractive price per gold Reserve ounce 1 Perpetua 73 Ascot $168 NovaGold 49 Skeena $148 Artemis 34 Artemis $130 Skeena 30 Marathon $100 Marathon 5 NovaGold $79 Ascot 2 Perpetua1 $45 - 20 40 60 80 $0 $50 $100 $150 $20
Slide 20: 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 21: Appendix
Perpetua Resources Appendix
Slide 22: Diverse, Experienced Leadership Team
DIVERSE, EXPERIENCED LEADERSHIP TEAM EXECUTIVE TEAM Laurel Sayer Jessica Largent Mckinsey Lyon Alan Haslam Michael Bogert Michael Wright Board Director & CEO Chief Financial Officer VP, External Affairs VP, Permitting General Counsel VP, Projects CORPORATE BOARD Marcelo Kim Bob Dean Laura Dove Rich
Slide 23: 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 24: Changing the Face of Mining
CHANGING THE FACE OF MINING STRONG ENVIRONMENTAL, SOCIAL & GOVERNANCE PRINCIPLES BUILT INTO 67% 2020 CORE BUSINESS PLANS of executive Laurel Sayer named CEO ✓ Community Agreement signed in 2018 management are of Perpetua Resources ✓ Adopted ESG policy in 2019 female Corp & Perpetua Resources Idaho ✓
Slide 25: Improving a Legacy
IMPROVING A LEGACY P L A N D ES I G N E D W I T H P O ST M I N I N G R ESTO 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 • Signifi
Slide 26: 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 27: 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 28: NEPA Scope Narrowed Following SDEIS
1 NEPA SCOPE NARROWED FOLLOWING SDEIS 2022 Supplemental Preferred Alternative 2020 DEIS Identified DEIS 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 29: 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 30: 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 RG E T S : • High grade targets (Garnet, Sc
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) 1 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 assumptions, exclusions and qualifications cont
Slide 36: Supportive Shareholder Base
SUPPORTIVE SHAREHOLDER BASE SHAREHOLDERS** Blackrock B. Riley CAPITAL STRUCTURE* Krilogy 2.3% 2.6% 1.9% RESEARCH COVERAGE ❖ Issued & Outstanding 63.17 Million Kopernik ❖ B. Riley Financial – Lucas Pipes 8.3% ❖ Options 1.77 Million ❖ H.C. Wainwright – Heiko Ihle Paulson Sun Valley Gold 39.2% ❖ Share
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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