Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Investor Presentation (July 2019)
32 slides from Liontown's investor presentation, Jul 22, 2019
Slide 1: Developing an Australian Lithium Business
For personal use only DEVELOPING AN AUSTRALIAN LITHIUM BUSINESS ASX : LTR |July 2019
Slide 2: Important Information
Important Information For personal use only Forward Looking Statements This Presentation may include statements that could be deemed “forward-looking The Information in this report that relates to Exploration Results for the Kathleen Valley statements”. Although the Company believes the expectations
Slide 3: A Next Generation Western Australia Lithium Producer
A Next Generation • Western Australia Lithium Producer Low Risk • Granted Mining Leases For personal use only Kathleen Valley Lithium Project • Established mining region Location • Modern infrastructure • Kathleen Valley – 5th biggest resource in Quality Australia KALGOORLIE • 83% M&I PERTH • 100% O
Slide 4: Kathleen Valley Lithium Project
For personal use only KATHLEEN VALLEY LITHIUM PROJECT PERTH
Slide 5: Project Overview
Project Overview JULY 2019 RESOURCE 2 PFS scheduled for completion Q4 2019 For personal use only 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5 1 83% Measured and Indicated 353% increase on maiden 2018 MRE 3 Conventional mining and processing Test work confirms ~6% DMS spodumene 4 concentrate – feasibility-lev
Slide 6: A Globally Significant Lithium Deposit
A Globally Significant Lithium Deposit Hard Rock Lithium Operations and Advanced Projects For personal use only Western World | Spodumene Dominant | Tonnes x Grade | Li2O Only 2.70 Development Greenbushes Operating Kathleen Valley (Talison/Tianqi) 2.20 Earl Grey (WES / SQM / Kidman) Li2O Grade % Wha
Slide 7: An Undervalued Hard Rock Lithium Developer
For personal use only Hard RockResource An Undervalued Lithium Developers Hard Rock Lithium Developers Western World | Spodumene Dominant EV / tonne Li2O Attributable Contained Li2O (Kt) 600 1,600 1,400 500 1,200 400 1,000 300 800 600 200 400 100 200 - - Kidman - European Piedmont - Frontier - Savan
Slide 8: >3x Increase in MRE supports potential for larger pit
>3x Increase in MRE supports potential for larger pit For personal use only NORTH SOUTH Scoping Study Pit Conceptual Expanded Pit Measured Indicated Inferred 8
Slide 9: >3x Increase in MRE supports potential for larger pit
>3x Increase in MRE supports potential for larger pit For personal use only Measured Indicated Inferred 9
Slide 10: Forward Plan and Schedule
Forward Plan and Schedule 2019 2020 For personal use only MILESTONE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resource Drilling / Updated MRE Optimisation / Mining Studies Metallurgical Testwork PFS (including initial Reserve Statement Other studies / permitting DFS (subject 06 to permitting / access) 10 10
Slide 11: PFS – Progress to Date
PFS – Progress to Date For personal use only • Good Quality 3 x Bores • Potential supply on MLs Water • Dewatering not an issue • Favourable topography ~26,000 sulphur • Minimal acid forming rocks • Other tailings likely to be benign Environment assays & flora / fauna surveys • No rare or endangered
Slide 12: Metallurgy and Flowsheet
Metallurgy and Flowsheet Current PFS Test Work Results For personal use only • 6.2% Li2O from DMS concentrate • 41% Li2O recovered to DMS concentrate • 15% mass rejection from 2-stage DMS • Flotation test work in progress Scoping Study (2018) Test Work Results • 5.9% Li2O from DMS concentrate • 36%
Slide 13: Scoping Study supports standalone Lithium Mining and Processing Operation
Scoping Study on maiden MRE supports potential to develop a standalone Lithium Mining and Processing Operation For personal use only January 2019 Study – Headline Metrics A$421M NPV(8%, real, post tax) (Range of A$316 to A$526M) IRR 38% Payback <3 years Free Cash Flow A$762M Average Cash Flow ~A$100
Slide 14: Kathleen Valley Drill Plan
KATHLEEN VALLEY DRILL PLAN Resource Upside For personal use only ~25,000m RC drill program Drill Section 1 completed H1 2019 43m @ 1.7% Li2O Thick (>45m), high grade, 51m @ 1.2% Li2O 2 “feeder” zone discovered by latest drilling. Open Mineralisation extended 74m @ 1.3% Li2O for >300m along strike 3
Slide 15: Latest drilling extends mineralisation down dip and along strike
Latest drilling extends mineralisation down dip and along strike For personal use only SW NE 13m @ 1.6% Li2O 31m @ 1.7% Li2O 23m @ 1.0% Li2O 13m @ 1.9% Li2O 24m @ 1.2% Li2O Conceptual Conceptualopen openpit pitbased based on on maiden resourceand maiden resource and scoping scopingstudy study 12m @
Slide 16: Kathleen Valley Investment Case
Kathleen Valley The only non-committed spodumene resource Investment Case in Australia For personal use only ~75Mt @ 1.3% Li2O and 140ppm Ta2O5 Conventional mining and processing Positive Scoping Study – PFS pending Probable long life mine First world location and expertise Active, well serviced min
Slide 17: Buldania Lithium Project
For personal use only BULDANIA LITHIUM PROJECT PERTH
Slide 18: Project Overview
Project Overview Significant lithium discovery Buldania is Located in a For personal use only 1 Outcropping, fresh, spodumene- Lithium-Rich Mineral Province related mineralisation Mineralisation at Anna extended to the 2 SE under shallow cover – strike length >1.3km and open Similar geology to the M
Slide 19: Large Lithium (Spodumene) Mineralisation fresh from surface
Large Lithium (Spodumene) Mineralisation fresh from surface Mineralised Pegmatite and open along strike and at depth Defined at the Anna Prospect For personal use only 13m @ 1.0% Li2O 35m @ 1.2% Li2O incl. 18m @ 1.7% Li2O 25m @ 1.2% Li2O incl. 5m @ 2.0% Li2O 29m @ 1.3% Li2O incl. 9m @ 1.7% Li2O 58m
Slide 20: Catalysts for Continued Re-Rating
Catalysts for Continued Re-Rating Kathleen Valley Lithium Project For personal use only 1 PFS scheduled for completion Metallurgical studies focused on optimising grade and recoveries Exploration drilling Q4 2019 Buldania Lithium 2 Project Preliminary Regional metallurgical test Maiden Mineral explo
Slide 21: Leadership and Key Financials
Leadership and Key Financials For personal use only David Richards Tim Goyder Craig Williams Anthony Cipriano Steven Chadwick Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years • Discovered multi
Slide 22: Appendix: Kathleen Valley Project Additional Information
For personal use only APPENDIX Kathleen Valley Project Additional Information
Slide 23: Kathleen Valley Mineral Resource Estimate – July 2019
Kathleen Valley Mineral Resource Estimate – July 2019 Cut-off grade (Li2O) Resource Category Million Tonnes Li2O (%) Ta2O5 (ppm) For personal use only Measured 17.6 1.3 160 Indicated 42.2 1.3 140 0.5 Inferred 10.1 1.1 150 Sub-Total 69.9 1.3 150 Indicated 2.5 1.4 120 0.7 Inferred 2.5 1.3 110 Sub-Tota
Slide 24: Scoping Study – Key Parameters And Assumptions
Scoping Study – Key Parameters And Assumptions For personal use only Parameter Parameter General and Economic Cost Assumptions Discount rate (real, post tax) 8% LOM average open pit mining A$37.72 costs ($/t ore mined) Spodumene concentrate price US$650 per tonne FOB LOM average processing cost Tant
Slide 25: Scoping Study – LoM Financials And Capital Expenditure
Scoping Study – LoM Financials And Capital Expenditure For personal use only Life of Mine Financials Capital Costs Summary Main Area Capital (A$M) Revenues 2,802 Treatment Plant 82.8 Operating costs (1,236) Reagents & Plant Services 9.5 Infrastructure – general 39.9 Capital expenditure Mining 6.1 -
Slide 26: Scoping Study – Production And Costs
Scoping Study – Production And Costs For personal use only Production and Costs 400 800 701 350 660 700 300 570 600 616 537 520 525 Conc. Production (kt) Opex (A$t/conc) 250 552 468 500 468 391 200 434 433 438 400 377 293 150 300 310 100 200 191 50 100 169 348 351 357 356 372 355 356 149 - - Y2 Y3 Y
Slide 27: Scoping Study – Grade Profiles
Scoping Study – Grade Profiles For personal use only LOM Lithium and Tantalum Grade Profile 1.60% 189 200 174 169 180 1.40% 163 156 Lithium Grade (%Li2O) Tantalum Grade (ppm Ta2O5) 160 1.20% 142 142 133 133 140 1.00% 120 0.80% 100 1.42% 1.26% 1.26% 1.32% 1.26% 1.26% 0.60% 1.23% 1.24% 80 1.20% 60 0.4
Slide 28: Scoping Study – Production Classification
Scoping Study – Production Classification For personal use only Production Classification by Year 2.5 50% 45% 2 40% 35% 1.5 30% Tonnes (Mt) 25% 1 20% 15% 0.5 10% 5% 0 0% Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Unclassified Inferred Indicated Measured Percentage Inferred 28
Slide 29: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE MRE For personal use only Company Project Stage Information Source Mt Mt Mt Mt Grade ASX Announcement, 17 Sept 2018 - http://www.pilbaraminerals.com.au/site/ Pilbara Minerals Pilgangoora Operating 22.8 11
Slide 30: Peer Comparison Information – Developers Chart
Peer Comparison Information – Developers Chart Enterprise Value Peer lithium company deposit Mt Market Cap ($Am) Est. Cash EV ($Am) Contained Li2O (kt) For personal use only Stage Li2O% per Tonne (Developers) (Attributable) 17/7/19 ($Am) 17/7/19 (Attributable) contained Li2O Kidman - Earl Grey PFS 9
Slide 31: Peer Comparison Information – Developers Chart
Peer Comparison Information – Developers Chart Global Measured Indicated Inferred Resource Resource For personal use only Company Project Stage Mt Mt Mt Information Source Mt Grade (Attributable) Corporate Presentation, March 2019 - https://europeanlithium.com/wp- European content/uploads/2019/03/19
Slide 32: For personal use only
For personal use only EMAIL PHONE NUMBER info@ltresources.com.au 08 9322 7431 WEBSITE: OFFICE www.ltresources.com.au Level 2, 1292 Hay St West Perth WA 6005 CONNECT https://au.linkedin.com/company/liontown-resources-limited https://twitter.com/LiontownRes
Liontown Resources — Investor Presentation (July 2019) on 6ix