Sovereign Metals Limited · ASX:SVM
Sovereign Metals — TZMI Congress 2022
35 slides from Sovereign Metals's conference presentation, November 2022
Slide 1: Congress 2022
CONGRESS 2022 NOVEMBER 2022 | AIM: SVML | ASX: SVM | ABN: 71 120 833 427
Slide 2: Sovereign is developing a new, very large source of natural rutile
Sovereign is developing a new, very large source of natural rutile to provide a secure, multi-generational supply of high-grade titanium feedstock for products with low carbon footprints 2
Slide 3: Critical minerals from the warm heart of Africa
Critical minerals from the warm heart of Africa 1 World’s largest natural rutile and one of the largest graphite resources 2 Multi-generational, tier 1 critical minerals deposit 3 Low-cost, large-scale operation with simple and conventional process flowsheet 4 Positioned to become a dominant produce
Slide 4: Kasiya: Major Global Rutile Dominant Resources
KASIYA Major Global Rutile Dominant Resources1 18.0Mt Contained Rutile(Mt) A transformational discovery for the TiO2 industry #1 >2x Largest rutile More than double 8.1Mt deposit ever the rutile resource discovered of nearest peer 50 years 18 Mt 2.0Mt 0.7Mt 1st significant rutile- Contained rutile K
Slide 5: Kasiya Mineral Resource Estimate
Kasiya Mineral Resource Estimate Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off Total Mineral Material Rutile Rutile Contained TGC RutEq. Resource Tonnes Grade Tonnes Graphite Tonnes Grade1 Category (millions) (%) (millions) (TGC) (millions) (%) Indicated 662 1.05% 6.9 1.43% 9.5 1.76% Infer
Slide 6: Kasiya: One of the Largest Flake Graphite Resources in the World
Kasiya: One of the Largest Flake Graphite Resources in the World • Graphite occurs in broad association with rutile • Kasiya graphite is highly crystalline and of high purity – important features required for use in lithium- ion battery anodes • Comprehensive bulk scale metallurgy and downstream tes
Slide 7: Simple Processing
Simple Processing Premium-grade rutile produced via conventional flowsheet • Robust metallurgy • Conventional graphite flotation plant at marginal incremental cost 98% Stand-out Rutile Metallurgical Recoveries 96% TiO2 Premium Specification Rutile 96% TGC Coarse Flake High-grade Graphite Source: Sov
Slide 8: Future major producer of both natural rutile and graphite
Future major producer of both natural rutile and graphite Large-scale, high-grade operation with a conventional flow sheet and low-cost profile supported by excellent existing infrastructure 8
Slide 9: Kasiya presents exceptional economics
Kasiya presents exceptional economics Key Economic Results US$1,537M 36% US$12,038M US$323M US$320/t US$372M Ave. Annual Operating Cost Capex to 1st After Tax NPV8 After Tax IRR LOM Revenue Production EBITDA per tonne of product Two stage approach Annual Production – Rutile 265ktpa* • Stage 1: 12Mtp
Slide 10: Exceptionally low carbon operation
Exceptionally low carbon operation 100% renewable hydro-power from the grid plus solar facility on site Cleaner sustainable operation • Hydro-mined (significant dust and noise reduction) • Simple low energy processing – Gravity – Electrostatic – Magnetic – Flotation (graphite only) • Investigating o
Slide 11: Natural Rutile – orders of magnitude lower carbon footprint than other titanium feedstocks
Natural Rutile – orders of magnitude lower carbon footprint than other titanium feedstocks Scope 1 & 2 Scope 3 Natural Rutile 0.1 tonnes CO2e per tonne of titanium feedstock Ilmenite upgraded alternatives Up to 3.3 tonnes CO2e per tonne of titanium feedstock Source: Minviro Ltd; Sovereign Metals 11
Slide 12: Life Cycle Assessment shows Carbon Emissions Reduction Potential
Life Cycle Assessment shows Carbon Emissions Reduction Potential Scope 1 & 2 Per Tonne Of Titanium Scope 3 Emissions Per Tonne Of Waste Generation Feedstock Type Produced Titanium Dioxide Pigment Produced (Upgrading Process) 20 -33x 35-53% 7.7t CO2e lower Scope 1&2 3.3t CO2e lower Scope 3 global war
Slide 13: TiO2 industries targeting reduced CO2 emissions
Global Warming Potential impact of producing one tonne of alkyd paint TiO2 industries 5.1 t CO2e targeting reduced CO2 4.4 Emissions emissions ~34% t CO2e Emissions Low-carbon potential Proportion of TiO2 pigment in paint 3.3 t CO2e for paint production Emissions already quantified 35% Potential CO2
Slide 14: Excellent Logistics
Excellent Logistics KASIYA MOZAMBIQUE • Infrastructure already in place offering significant cost advantages and providing optionality and scalability NACALA PORT • Free-access rail line to the deepest port on the east African seaboard connecting to global markets NACALA LOGISTICS CORRIDOR • +US$5bn
Slide 15: Malawi
Malawi Stable, Transparent Jurisdiction Actively Supporting the Mining Industry Member country of the Commonwealth Attracting significant mining investments Strong Government and community support for the Kasiya development Excellent existing operating infrastructure Country Of The Year 2020 Source:
Slide 16: Developing mining sector
Developing mining sector Mining sector recognised as an industry of significant and near future economic importance to Malawi Several listed companies active Kayelekara Kanyika Songwe Hill Kangankunde Uranium Niobium REE REE Re-start (DFS) DFS DFS Exploration President of Malawi made a special menti
Slide 17: Well-established and having a positive contribution in Malawi already
Well-established and having a positive contribution in Malawi already Employment and Training of a Advancing Community Community and Stakeholder Promoting Education Diverse Workforce Infrastructure Engagement Sovereign currently has over 45 Sovereign understands the Sovereign has been active in Cont
Slide 18: Opportunity to lead a major mining industry in Malawi
Opportunity to lead a major mining industry in Malawi • 1,200 direct jobs and significant indirect jobs • Continued education and flow on impacts into the economy • Significant contributions to the Malawi economy +US$2.7b (taxes & royalties) • Potential Tier-1 operation at the forefront of Malawi’s
Slide 19: Strong market partners established
Strong market partners established MoU signed with Mitsui & Co for offtake and marketing rights for 30,000 tonnes per annum of natural rutile MOU signed for supply of 20,000 tonnes of natural rutile MoU signed for supply of 25,000 tonnes of natural rutile from Kasiya per annum from Kasiya to US-base
Slide 20: Long-term, stable and large scale operation
Low carbon Critical minerals and Long-term, stable and Excellent existing operation low carbon in use large scale operation infrastructure products Huge opportunity to Strong technical and Well supported by Exceptional Government and lead the mining industry market partners economics community in Ma
Slide 21: Appendix
Market Dynamic and Clean Energy Focus APPENDIX 21
Slide 22: Premium rutile product specifications
Premium rutile product specifications Kasiya Peer Comparisons 98% Recovery Sierra Rutile Base Resources Constituent Product (Iluka) (Kwale) TiO2 % 96.0 96.3 96.2 ZrO2+HfO2 % 0.21 0.78 0.72 SiO2 % 0.90 0.62 0.94 Fe2O3 % 0.94 0.38 1.25 Al2O3 % 0.90 0.31 0.23 Cr2O3 % 0.14 0.19 0.17 V2O5 % 0.70 0.58 0.5
Slide 23: Simple Mining
Homogenous, soft, friable saprolite Simple Mining Hydro-mining a proven mining technique • Kasiya’s mineralisation largely homogenous and relatively consistent with material conducive to hydro-mining • Long history of successful hydro-mining of heavy mineral deposits across southern Africa • Numerou
Slide 24: Simple Progressive Rehabilitation
Simple Progressive Rehabilitation Socially responsible and sustainable Example of progressive rehabilitation of a mineral sands mine Example of progressive rehabilitation of a mineral sands mine • In-pit disposal minimises disturbance • Progressive returning of land to communities • Efficient closur
Slide 25: Kasiya: One Project - Two Critical Raw Materials
Kasiya: One Project - Two Critical Raw Materials Titanium and natural graphite classified as critical raw materials by the US and EU Key drivers: • Scarceness of supply • China-controlled supply chains • Decarbonisation /Energy Transition Source: European Commission - Critical Raw Materials for Stra
Slide 26: Premium Graphite Specifications
Premium Graphite Specifications 35% 30% Weight 25% Particle Size Carbon Distribution Flake Category 20% Tyler Mesh Micron (μ) (%) (% w/w) 15% +32 +500 96.0 5.4 Super Jumbo 10% 5% -32 +48 -500 +300 96.6 25.1 Jumbo 0% +32 -32 +48 -48 +80 -80 +100 -100 +150 -150 +200 -200 -48 +80 -300 +180 96.7 30.9 La
Slide 27: Chinese Graphite Dominance Threatens Electric Vehicle Ambitions
Chinese Graphite Dominance Threatens Electric Vehicle Ambitions 155kt Global Warming Potential impact of producing one tonne of graphite Average annual natural graphite production from Kasiya 20.6 t CO2e Emissions Up to 50% Proportion of graphite in composition of a lithium-ion battery 0.2 1.1 99% t
Slide 28: Strong technical partners appointed for the PFS
Strong technical partners appointed for the PFS Lead Study Manager Pumping and piping Project Management Rehabilitation Mineral Resource Estimate Environment and Social Mine Scheduling and Pit Optimisation Power Mining Method and Tailings Marketing – Rutile Management Tailing Disposal Marketing – Gr
Slide 29: Ongoing Activities to PFS and Future Work Program
Ongoing Activities to PFS and Future Work Program CY 2022 CY 2023 CY 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Kasiya Project Expanded Scoping Study Resource Drilling PFS & Mineral Resource Update Offtake Discussions & Announcement Environmental & Project Permitting DFS Source: Sovereign Metals; ASX; Londo
Slide 30: Corporate Snapshot
Corporate Snapshot Share Price Performance (Since 1 Jul 20) $0.90 Kasiya Maiden JORC Resource 1.8Bt @ 1.01% rutile confirms Kasiya as Capital Structure(as at 14 Oct 22) 644Mt @ 1.01% Rutile largest rutile deposit ever discovered ASX / AIM Ticker SVM / SVML Share Price (A$ / P) A$0.42 / 24p $0.60 Sha
Slide 31: Disclaimers & Disclosures
DISCLAIMERS & DISCLOSURES AUTHORISATION STATEMENT This presentation has been approved and authorised for release by the Company’s Managing Director, Dr Julian Stephens. DISCLAIMER NOTICE This presentation has been prepared as a summary only and does not contain all information Sovereign Metals Limit
Slide 32: Thank you
SOVEREIGN METALS LIMITED Thank you 32
Slide 33: Appendix - Peer Sources
Appendix - Peer Sources MINERAL SANDS PEER INFORMATION Reference Company Project Stage of Development Revenue to Cost ratio Source Ilmenite -Madagascar Base Resources Toliara FS Complete 3.5 ASX Announcement: https://wcsecure.weblink.com.au/pdf/BSE/02426235.pdf Ilmentie – Western Australia Strandlin
Slide 34: Appendix - Peer Sources
Appendix - Peer Sources RUTILE MINERAL RESOURCES INFORMATION Ref Company Project Status Source 1 Iluka Resources Sierra Rutile Production & Development Iluka Resources Limited’s 2021 Annual Report (released on ASX 24/02/2022) Iluka Resources Limited Annual Ore Reserve and Resources as at 31 December
Slide 35: Appendix - Peer Sources
Appendix - Peer Sources GRAPHITE RESOURCE INFORMATION Ref Company Project Project Status Source 1 Syrah Resources Balama Production Syrah Resources Limited’s 2021 Annual Report (released on ASX 24/02/2022) 2 Volt Resources Bunyu FS Complete Volt Resources Limited’s 2021 Annual Report (released on AS