Solaris Resources Inc · TSX:SLS
Solaris Resources — Investor Presentation (November 2024)
25 slides from Solaris Resources's investor presentation, November 2024
Slide 1: Corporate Presentation November 2024
Global Scale Project in Low-Capex District Studies and Permitting Underway Transitioning Head Office to Quito, Ecuador Growth and Discovery Drilling Ongoing EIA Technical Approval Q2/25 MRE Update Mid-Year, PFS H2/25 Exploitation Agreement H2/25 Copper Growth and Discovery in the Americas Corporate
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements This presentation does not constitute an offering of securities and the information contained herein is subject to the information contained in the Company's continuous disclosure documents. All amounts expressed in Canadian $ unless otherwise stipulated. Fo
Slide 3: Warintza Project | Investment Summary
Warintza Project| Investment Summary Global Scale Resource at Robust Economic Flagship Warintza, Ecuador Opportunity La Verde 0.9 Bt @ 0.5% CuEq (M&I) and Unique combination of scale 1.4 Bt @ 0.4% CuEq (Inf)¹ and grade in low capital intensity >High-grade at surface mining district Warintza Peru JVs
Slide 4: Augusta Group | Track Record of Value Creation
Augusta Group | Track Record of Value Creation Sector specialist management group, focused on base and precious metals Niche world class exploration and development stage projects Track record of creating value, with over $4.5B in exit transactions Past Returns Sold for $1.6B in 2011 Sold for $667M
Slide 5: Capital Structure
Capital Structure Summary Share Distribution TSX SLS¹ Float Exec. Chair 38% 36% NYSE SLSR Common S/O 162M Lowell Options, ITM 4M 2% Sprott Boundary BlackRock Creek Mgmt Diluted S/O, ITM 166M 2% Lundins 9% 4% 5% 4% Available Liquidity² US$68M Market Cap3 US$400M >$200M Invested by Management Targets
Slide 6: Leadership | Javier Toro to Lead Project Execution
Leadership | Javier Toro to Lead Project Execution Board & Management Richard Warke, Executive Chairman Federico Velasquez, President Latin America Poonam Puri, Director Arizona Mining, Augusta Resource, Ventana Gold Equinox Gold, Anglo American Davies Ward Phillips & Vineberg LLP Daniel Earle, Pres
Slide 7: David Lowell | World's Greatest Explorer (1928-2020)
David Lowell | World’s Greatest Explorer (1928-2020) Warintza, 2000 Mirador, 2001 Lowell Discoveries Major Mines Pierina, 1996 Antamina Toromocho, 2005 Exposed Deposits (60-80s) Alteration systems visible from air, Cerro Verde e.g., Bajo Alumbrera, San Cristobal Los Calatos, 1992 Toquepala David Low
Slide 8: Ecuador | World Class Mining Destination
Ecuador | World Class Mining Destination 10 Years Continuous Left, Right, Centrist governments support mining Pro Mining Policy Noboa well positioned for re-election in Feb 2025 Security: Warintza far removed from Tier 1 Deposits FDN, Mirador enter production in 2019 issues on coast and Colombian bo
Slide 9: Permitting | Stakeholder Endorsement
Permitting | Stakeholder Endorsement “The steady progress of the Warintza Project is positive for Ecuador. The Project is advancing in compliance with all legal regulations and will soon generate thousands of jobs and major economic growth in the Province of Morona Santiago. The Fruta Del Norte, adm
Slide 10: Participatory Mining | Full Spectrum Responsible Mining
Participatory Mining| Full Spectrum Responsible Mining Environmental Stewardship Community Development Established water and waste management practices Over US$10M invested in community development and programs to reduce environmental impact (2021-2023)¹ (Infrastructure, scholarships, education, med
Slide 11: Mining District | Primary Infrastructure
Mining District | Primary Infrastructure Natural, Primary Infrastructure 268km2 property, Access road to highway Access to grid power, MOU signed for 100%-owned; connecting Pacific ports, adjacent hydroelectric 100% supply of 40km north of transmission lines, airport, Santiago development hydroelect
Slide 12: Capital Intensity | Key Metric that Will Shape the Cycle
Capital Intensity| Key Metric that Will Shape the Cycle Increasing Capital Intensity of Greenfield Open Pit Copper Projects and Long-Term Incentive Pricing Implications¹,² 2001 to 2010 ~US$7k/t 2011 to 2020 ~US$18k/t Recent Projects >US$25k/t $2.50 Cu for 15% IRR $3.50 Cu for 15% IRR $4.75 Cu for 15
Slide 13: 2024 Resource | Major Drilling Program Underway
2024 Resource | Major Drilling Program Underway Warintza Mineral Resource Global Scale Resource (0.25% CuEq cut-off) Cut-Off Category Tonnes Grade CuEq (%) (Mt) CuEq (%) Cu (%) Mo (%) Au(g/t) 0.9 Bt @ 0.5% CuEq (M&I), 1.4 Bt @ 0.4% CuEq (Inf) Measured 232 0.64 0.47 0.02 0.05 0.25% Indicated 677 0.49
Slide 14: District Potential | Warintza Cluster and District Opportunity
District Potential | Warintza Cluster and District Opportunity Solaris Resource¹ Solaris Discoveries Targets 0.9 Bt @ 0.5% CuEq (M&I) West 686m @ 0.46% CuEq² Caya, Mateo 1.4 Bt @ 0.4% CuEq (Inf) South 606m @ 0.41% CuEq³ Medio Camino Patrimonio 148m @ 0.52% CuEq⁴ Kutukus Extension, Santiago Hydroelec
Slide 15: District Exploration | Copper Search Program
District Exploration | Copper Search Program History of Discovery Still Being Written Original Discoveries (1990s) Regional stream sediment sampling, limited access Warintza Central, San Carlos- Panantza Solaris Discoveries (2020s) Major expansion of Central, and new discoveries at West, East, South
Slide 16: District Exploration | Gold-Silver Search Program
District Exploration | Gold-Silver Search Program Well established genetic link between porphyry copper and epithermal gold-silver deposit types in Zamora belt Epithermal domain east of Warintza porphyry cluster encountered in first-ever exploration Veins represent leakage through a soft, mudstone c
Slide 17: Project Timeline | Growth & Derisking
Project Timeline| Growth & Derisking 2019 2022 2024 2025⁴ Inherited MRE (I) MRE (Ind & Inf) New MRE (M&I & Inf) Project Execution (7km, 33 holes) (65km, 99 holes) (101km, 163 holes) Funded to 2026 0.1 Bt @ 0.7% CuEq¹ 0.6 Bt @ 0.6% CuEq (Ind) 0.9 Bt @ 0.5% CuEq (M&I) 0.8 Bt @ 0.5% CuEq (Inf)² 1.4 Bt
Slide 18: Copper | M&A Transaction Precedents
Copper | M&A Transaction Precedents Lundin/BHP - Filo Corp. $4.1B Zijin - La Arena (Pan American) $0.3B JCHX - 80% Lubambe (LCML) $0.9B Evolution - 80% Northparkes (CMOC) $0.5B Producer UAE - Mopani (ZCCM) $1.1B Developer MMG - Khoemacau (GNRI) $1.9B Glencore - 56.25% MARA (Pan American) $0.5B Hudba
Slide 19: Catalysts | Growth and De-Risking
Catalysts| Growth and De-Risking Drilling and District Exploration Ongoing Investment Protection Agreement Update EIA Technical Approval – Q2/25 MRE Update – Mid-2025 PFS and Exploitation Agreement – H2/25 Solaris Exploration Spin-Out on Potential Transaction TSX: SLS; NYSE: SLSR 19
Slide 20: Appendix
Appendix TSX: SLS; NYSE: SLSR
Slide 21: Dearth of Discoveries Leaves Pipeline Empty
Dearth of Discoveries Leaves Pipeline Empty 2010: Muji, 180 2011: Cobre Panama, Timok, Cerro Negro, etc. $5,000 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 160 $4,500 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 2015: Cachorro 2016: Marimaca, Encierro $4,000 140 2017: Tatogga, Winu, K
Slide 22: Citi: Extremely Bullish Once Growth Fears Subside
Citi: Extremely Bullish Once Growth Fears Subside Copper positioning – cyclical plus decarbonisation-related could see Potential scale of increase in positioning would dwarf the physical market copper rise to ~4 Mt in 2025, double their prior highs balances and could easily see prices reach $12-15k/
Slide 23: Copper Outlook: Supply Growth Constrained
Copper Outlook: Supply Growth Constrained Copper Industry Expansionary Capex (US$B)¹ 32 32 25 27 18 18 19 18 19 18 14 15 16 13 13 12 10 10 10 7 Copper Project IRRs By Capital Intensity² Long-term incentive Copper Price ($/lb) price has moved up $3.50 $3.75 $4.00 $4.25 $4.50 $4.75 $5.00 $16,000 14% 1
Slide 24: EV Sales Slowing Narrative Misleading
EV Sales Slowing Narrative Misleading EV sales to increase 21% in 2024 to 16.7 million¹ EV sales up strongly in 2023 in all regions¹: EV Sales by Year and Region¹ China +40% China Europe +26% Europe North America North America +78% Rest of World Global +33% Sales growth/rate of change expected to sl
Slide 25: Record Size Structural Deficits Fast Approaching
Record Size Structural Deficits Fast Approaching S&P estimates copper demand will double to over 50 Mt by 2050 Rapid growth from copper-intensive energy transition applications (power grid, renewables, EVs, charging network, batteries) on top of steady 2.4% p.a. growth from traditional end uses Proj
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