Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (June 2016)
18 slides from Sovereign Metals's investor presentation, June 2016
Slide 1: Unique, World Class Graphite Opportunity
UNIQUE, WORLD CLASS GRAPHITE OPPORTUNITY Compelling Natural Flake Graphite Opportunity for the Li-Ion Battery Revolution June 2016 Sovereign Metals Limited | ASX : SVM T: +61 8 9322 6322 | F: +61 8 9322 6558 | E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, BGC Centre, 28 The Es
Slide 2: Malawi Flake Graphite Opportunity
Malawi Flake Graphite Opportunity Very strong outlook driven by lithium-ion battery demand for electric/hybrid vehicles, home/business applications and traditional uses for expanded graphite foils (gaskets, fuel pumps, automotive etc). This new battery technology is transforming demand for natural
Slide 3: Battery Market
Battery Market Demand for rechargeable batteries is increasing dramatically, and the attractive outlook for electric vehicles and energy storage systems is further accelerating growth. Battery sales for power storage applications and electric vehicles are set to accelerate in the early 2020’s, lifti
Slide 4: The Growing Importance of Natural Graphite
The Growing Importance of Natural Graphite Graphite is a key component of Lithium-ion batteries. Natural graphite is cheaper to use than Lithium Titanate and Synthetic graphite. Natural graphite has been the strongest growing input for anodes in lithium batteries. Strong shift away from synthetic (a
Slide 5: Duwi Excellent Flake Size and Purity
Duwi Excellent Flake Size and Purity Targeting growing lithium-ion battery market and traditional expanded graphite market Flake distribution allows product flexibility with concentrate to be sold to the expandable graphite market or to the Li-ion battery markets. Classification Size Concentrate Gra
Slide 6: Massive Valuation Upside
Massive Valuation Upside East Africa – the future of flake graphite products Flake graphite characteristics superior to Chinese productions – Coarser, more crystalline, higher concentrate grades. Diluted Market $1,496m Capitalisation * $557m $117m $67m $12m Company SYR MNS KNL SVM VRC (ASX Code) Fea
Slide 7: Demonstrated Highly Favourable Expanded Graphite Properties
Demonstrated Highly Favourable Expanded Graphite Properties • Coarse and jumbo flake graphite products are used to create expanded graphite. • Expanded graphite is used to manufacture foils for use in gaskets, fuel pumps and other automotive applications. • Jumbo and large flake samples from Duwi sh
Slide 8: Malawi Graphite Projects
Malawi Graphite Projects Duwi Exploration Potential • World class graphite resource – 6.13Mt TGC • 3,975km2 tenement package. contained, open in all directions. • A number of advanced prospects. • Excellent flake distribution and concentrate • Just “scratched the surface” – huge exploration grade. p
Slide 9: Duwi – World Class Largest Flake Graphite Resource
Duwi –World Class Largest Flake Graphite Resource • Total Resource 86Mt @ 7.1% TGC • Indicated Resource 17.3Mt @ 8.1% TGC • Open along strike and at depth in all areas – only 2.2km of 24km strike drilled • Moderate dip creates ideal mining scenario with low strip ratio 0.67: 1 Duwi Cross Section Duw
Slide 10: Excellent Infrastructure
Excellent Infrastructure Operational railway with siding located just 21km by road from Duwi – links to deep water port at Nacala, Mozambique High-capacity power line passes within 3km of Duwi deposit High-capacity power line Lilongwe, the capital city of Malawi, lies just 15km passes within 3km of
Slide 11: Scoping Study Supports Robust Economics
Scoping Study Supports Robust Economics Base Case Low Tonnage Base case scenario to mine & Parameter Scenario Scenario process 1.5mtpa, producing (1.5 Mtpa) (0.55 Mtpa) 110ktpa of concentrates Mine Life (minimum) 20 years 20 years Strip Ratio 0.67 0.51 • Total Capex < US$140m Proportion of Indicated
Slide 12: Forward Plan and News Flow
Forward Plan and News Flow Commence spherical graphite test-work in the coming weeks to demonstrate applicability for lithium ion battery technology – major work program with internationally renowned, German independent graphite experts. Further work program planned to develop expanded graphite
Slide 13: Appendix
Appendix S 13
Slide 14: Management Team with a Proven Track Record of Success
Management Team with a Proven Track Record of Success Mr Middlemas is a Chartered Accountant and was a Senior Group Executive for Normandy Mining for more than ten years, which was Australia’s largest gold miner (+2m ounces per Ian Middlemas annum) before merging with Newmont Mining. He is currently
Slide 15: Capital Structure
Capital Structure Holding Structure Capital Structure * Directors and Current Shares on Issue 142,420,139 Vendors Unlisted Options ($0.10 to $0.47) 5,416,667 22% Performance Rights 1,600,000 (Feasibility and Commercial Transaction vesting milestones) Un-Diluted Market Capitalisation (@ $0.08) A$11.4
Slide 16: Why is Volinco partnership such a breakthrough?
Why is Volinco partnership such a breakthrough? . Volinco are part of a massive SASAC (ie Beijing) State Owned Enterprise, China Aerospace, Science and Industry Corp. Proposal to accept all 110,000 t p/a of Duwi flake graphite concentrates for their own internal use & to trade to their Chinese SOEs
Slide 17: Malawi – Stable and Mining Friendly
Malawi – Stable and Mining Friendly • Population 16.4m • Government highly supportive of mining • Corporate tax rate – 30% • Mining royalty rate – 5% • Peaceful presidential election in May 2014 – 5 years (Peter Mutharika) Local Village Children 17
Slide 18: Disclaimer Notice & Competent Persons Statement
Disclaimer Notice & Competent Persons Statement Disclaimer Notice The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Sovereign Metals Ltd (“SVM”) nor does it form the basis of any contract