Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Investor Presentation (January 2022)
38 slides from Perpetua Resources's investor presentation, January 2022
Slide 1: Investor Presentation – January 2022
Investor Presentation – January 2022 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 * Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition and for
Slide 5: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT Our goal is to take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project helping power a lower carbon future through critical mineral production. 5
Slide 6: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1,2 Independent Gold Project Mineral Reserves1,2 3 Perpetua (Stibnite) 4.8 Marigold 3.6 Castle Mountain 3.6 Haile 2.9 Round Mountain 2.2 Bald Mountain 1.1 0.0 1.0 2.0 3.0 4.0 5.0 2020 Year-End Mineral Reserves - Gold (Moz) Source: S&P Global – Market Inte
Slide 7: High-Grade, Open Pit Gold Deposit
HIGH-GRADE, OPEN PIT GOLD DEPOSIT Independent Open Pit Gold Deposits1 Perpetua(Stibnite) Yrs1-4* 2.2 Haile 1.5 Perpetua(Stibnite) LoM* 1.4 Gold Bar 1.1 Goldfield 1.0 Wharf 0.9 Mount Hamilton 0.8 Round Mountain 0.8 Relief Canyon 0.8 0.00 0.50 1.00 1.50 2.00 2.50 2020 Year-End Mineral Reserves - Gold
Slide 8: Poised to Be One of Largest U.S. Gold Mines
POISED TO BE ONE OF LARGEST U.S. GOLD MINES Independent Producing Gold Mines1 Perpetua(Stibnite) Yrs 1-4* 463 Round Mountain 324 Perpetua(Stibnite) LoM* 297 Marigold 234 Bald Mountain 191 Haile 137 Wharf 93 0 50 100 150 200 250 300 350 400 450 500 2 2020 Annual Gold Production (koz) Source: S&P Glob
Slide 9: Lowest Quartile All-In Sustaining Costs
LOWEST QUARTILE ALL-IN SUSTAINING COSTS 1 $2,500 Global Gold Mine Cost Curve All-in-Sustaining Cost ($/oz) $2,000 $1,500 Perpetua Resources Stibnite Gold Project2 $1,000 Yr1-4 LoM $500 $0 2020 Annual Gold Sales3 (represented as bar width) Source: S&P Global – Market Intelligence Valuable antimony by
Slide 10: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES 1 TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE $2,350 $4,603 $2,943 $3,815 Gold Price (US$/oz) $2,100 $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 $278 Current Mkt Cap2 Only 15% of NPV2 (
Slide 11: U.S. Critical Minerals Supply Chain Risk
U.S. CRITICAL MINERALS SUPPLY CHAIN RISK USES FOR ANTIMONY “Critical Minerals” are metals and non-metals essential to economic and national security Energy and are vulnerable to supply chain disruptions World Antimony 2020 Production (USGS) CRITICAL Flame Ceramics Turkey Australia Bolivia Burma Reta
Slide 12: Expected to Average >35% of U.S. Demand
EXPECTED TO AVERAGE >35% OF U.S. DEMAND 1,2 Stibnite Gold Project Recovered Antimony2 50,000,000 45,000,000 2020 U.S. Annual Consumption1 40,000,000 35,000,000 Antimony (lbs) 59% 30,000,000 51% 25,000,000 38% 39% 20,000,000 15,000,000 24% 17% 10,000,000 5,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5
Slide 13: 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 AGREEMENT1: • Current commitment of Perpetua’s antimony can power over 13
Slide 14: 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 15: Extensive Stakeholder Engagement
EXTENSIVE STAKEHOLDER ENGAGEMENT 2016: Perpetua submits 2019: Perpetua 2020: Perpetua Plan of Restoration and submits Modified PRO submits refined Operations (PRO) to USFS (ModPRO) to USFS ModPRO2 to USFS 6 years of environmental study and 4+ years of additional public input and gathering public fee
Slide 16: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Anticipated Milestones1: Draft Environmental Impact Statement and Inclusion in additional indices due to Nasdaq listing (2022) successful comment period (Aug - Oct 2020) Supplemental Draft Environmental Impact Statement Feasib
Slide 17: Valuation Expected to Re-Rate Once Permitted
VALUATION EXPECTED TO RE-RATE ONCE PERMITTED 150% Pre-Permitting Permitted Market Cap As % of Spot NAV3,4 107% 100% 82% 78% 74% 48% 50% 50% 30% 20% 15% 0% 1,2 Perpetua Integra Gold Standard Artemis Skeena Ascot Marathon NovaGold Orla 1. Perpetua Resources market cap based on fully diluted market cap
Slide 18: 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 * Providing a U.S critical mineral to power batteries enabling the low-carbon energy transition a
Slide 19: Appendix
Perpetua Resources Appendix
Slide 20: Securing America's Critical Supply Chains
SECURING AMERICA’S CRITICAL SUPPLY CHAINS President Biden’s Executive Order and report concludes a secure critical minerals supply chain is essential to our national and economic security Semiconductor manufacturing ANTIMONY IS A KEY MINERAL High-capacity batteries IN THREE OF THE FOUR FOCUS AREAS C
Slide 21: 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 22: Valuation Upside Through ESG Premium
VALUATION UPSIDE THROUGH ESG PREMIUM Trading Comparables – EV / EBITDA PERPETUA’S UNIQUE VALUE PROPOSITION: 15.3x • Strategic partnership with Ambri significantly increases strategic and long-term value 11.0x • Antimony by-product to power batteries for long duration, daily cycling energy storage •
Slide 23: Diverse, Experienced Leadership Team
DIVERSE, EXPERIENCED LEADERSHIP TEAM EXECUTIVE TEAM Laurel Sayer Alan Haslam Mckinsey Lyon Jessica Largent Michael Bogert Tanya Nelson Board Director & CEO VP, Permitting VP, External Affairs VP, Investor General Counsel VP, Human Resource Relations & Finance & Corporate Secretary CORPORATE BOARD Ma
Slide 24: Idaho: A Premier Mining Jurisdiction
IDAHO: A PREMIER IDAHO MINING JURISDICTION Lucky Friday Mine Coeur d’Alene Hecla Mining Company New Jersey Mining Golden Chest Galena Complex Sunshine Mine Americas Silver Sunshine Silver Mines Stibnite Gold • Top 10 Mining Jurisdiction in the World* Project (Au-Sb) Perpetua Resources Beartrack Mine
Slide 25: Changing the Face of Mining
CHANGING THE FACE OF MINING STRONG ENVIRONMENTAL, SOCIAL & 50% 2020 GOVERNANCE PRINCIPLES BUILT INTO CORE BUSINESS PLANS of senior staff Laurel Sayer named CEO Adopted ESG policy in 2019 are female of Perpetua Resources Community Agreement signed in 2018 Corp & Perpetua Resources Idaho Annual
Slide 26: 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 27: NEPA at Work
NEPA AT WORK Public feedback and refinement create the best plan T R A N S PA R E N C Y : R e s u l t s o f t h e 2 0 2 0 7 5 - D a y E I S REFINEMENT: Agencies Responding to the Public Public Comment Period The U.S. Forest Service & cooperating agencies will: • Review all comments • Respond to the
Slide 28: Perpetua's Refined Proposed Action
PERPETUA’S REFINED PROPOSED ACTION WHAT WE HEARD PROJECT IMPROVEMENTS 10% reduction in total volume mined Reduce the project footprint (44 million tons) 70% reduction in Hangar Flats pit size Improve water quality (the pit can be completely backfilled) 7% reduction in disturbance from open pits (37
Slide 29: Permitting – Next Steps
PERMITTING – NEXT STEPS NOA for EIS Project DEIS In Federal Pre-work Alternatives & Submittal Administrative Initiation & Register & Planning Environmental Prepare of PRO Approval Public Scoping Q1/Q2 Analysis Draft EIS 9/2016 12/2016 Q2/Q3 2017 2017 DEIS Comment Period We are Engineering & Design h
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 R G E T S : • High grade targets (Garnet, S
Slide 31: 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 32: Feasibility Study – Highlights
FEASIBILITY STUDY – HIGHLIGHTS1 Early Production Life-of-Mine Notes: Component Years 1-4 Years 1-15 1. In this presentation, “M” = 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 (M $) (M $) (M $) (2) (M $) environmental remediation costs. 2. Closure and mitigation assume Mine Costs (1) 84 119 - 203 self-performed costs, which
Slide 34: Feasibility Study - Operating Cost Summary
FEASIBILITY STUDY - OPERATING COST SUMMARY Years 1-4 Life of Mine Total Production Cost Item ($/t milled) ($/oz Au) ($/t milled) ($/oz Au) Notes: 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 * 2.1% CAPITAL STRUCTURE RESEARCH COVERAGE B Riley Issued & Outstanding 62.94 Million 5.9% B. Riley Financial – Lucas Pipes Sun Valley Gold 8.2% Options 2.57 Million H.C. Wainwright – Heiko Ihle Barrick Paulson 8.6% 39.4% Warrants 0.20 M
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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