Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Resources Rising Stars Conference 2020
40 slides from Liontown's conference presentation, Nov 10, 2020
Slide 1: Company Presentation – November 2020 (ASX Announcement)
ASX Announcement (ASX: LTR) For personal use only 10th November 2020 Company Presentation – November 2020 Liontown Resources (ASX:LTR) is pleased to advise that Managing Director David Richards will present to the following conferences this week: Resources Rising Stars Conference on Tuesday 10th Nov
Slide 2: Kathleen Valley: World class scale & economics
Kathleen Valley For personal use only World class scale & economics with further upside opportunities plus Moora Highlights COMPANY PRESENTATION November 2020 ASX : LTR |17 FEBRUARY 2020
Slide 3: Important Information
Important Information For personal use only COMPETENT PERSON STATEMENT CAUTIONARY STATEMENT The Information in this Presentation that relates to Ore Reserves, Production Target and Pre-Feasibility Study (PFS) for the Kathleen 1 The production targets and forecast financial information referred to in
Slide 4: Project Overview
Project Overview • World-class scale and economics For personal use only • 156Mt @ 1.4% Li2O and 130ppm Ta2O5 Kathleen Valley Lithium Project Kathleen Valley • ~40 year mine life (Lithium-Tantalum) • High grade • Multiple upside opportunities • DFS due Q4 2021 • Emerging mineral province Moora • Une
Slide 5: Kathleen Valley Lithium - Tantalum Project
Kathleen Valley For personal use only Lithium - Tantalum Project WESTERN AUSTRALIA 100%
Slide 6: A Tier Lithium Resource
A Tier 1 Lithium Resource Australian Hard Rock Lithium Operations and Advanced Projects For personal use only 3.00 Li2O Grade % Greenbushes Kathleen Valley Tianqi/Albemarle 2.50 (Liontown 100%) (Li+Ta*) (Li2O only) 2.00 Pilgangoora Mt Marion (Pilbara Minerals) Finnis (Core) (MinRes/Ganfeng) 1.50 Wod
Slide 7: A Globally Significant Deposit
A Globally Significant Deposit World Hard Rock Lithium (Spodumene-dominant) Operations and Advanced Projects % Attributable Resources by Company Ownership For personal use only 14.0 12.0 Liontown owns the world’s 4th largest hard rock (spodumene) lithium resource base 10.0 8.0 LIONTOWN RESOURCES % 6
Slide 8: October 2020 PFS Key Metrics
October 2020 PFS Key Metrics1 Based on May 2020 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 For personal use only NPV2 (Post Tax) A$1.12B IRR 37% SC6: 350Ktpa Mining: Reserve: Payback 3 Years Ta2O5 (30%): 2Mtpa 71Mt @ 1.40% Li2O Opex3 Years 1 - 10 US$345/dmt (SC6) 430tpa 130ppm Ta2O5 Opex3 Years LOM US
Slide 9: Resources & Reserves
Resources & Reserves Mineral Resource Estimate1 – May 2020 For personal use only Cut-off Resource Million Ta2O5 Li2O% Li2O% Category Tonnes (ppm) Measured 20 1.3 140 0.55 Indicated 105 1.4 130 Inferred 32 1.3 110 TOTAL 156 1.4 130 1 Inclusive of Ore Reserve Ore Reserve – October 2020 Million Ta2O5 C
Slide 10: Upside
Upside May 2020 MRE Block Model PFS is a critical step towards the DFS and For personal use only maximising future opportunities • Resource conversion/expansion • Throughput increase Open • Potential to produce a premium concentrate (>6.5% Li2O) Open Open • Downstream processing 1 Refer to Appendix
Slide 11: Whole of Ore Float Sheet De-Risks Project Execution
Whole of Ore Float Sheet De-Risks Project Execution 2020 Test Work Outcomes For personal use only • WOF produces higher grade concentrate compared with • Tantalum mineralogy suitable for upgrade to 30% conventional DMS/Flotation processing Ta2O5 concentrate offsite • Ta2O5 recovery of 56% at a grade
Slide 12: Downstream Scoping Study Key Metrics
Downstream Scoping Study Key Metrics1 Based on October 2020 PFS For personal use only METRIC LHM LSM NPV (Post Tax/8% real) A$4.8B A$3.2B Reserve: IRR 41% 35% 71Mt @ 1.40% Li2O LOM Free Cash Flow A$19.5B A$13.7B 130ppm Ta2O5 Life of Mine Payback 3 Years 3 Years ~40 years Total production LoM Opex (2
Slide 13: Integrated Project – Cash Flow and Payback
Integrated Project – Cash Flow and Payback For personal use only Cumulative net cashflow after tax1 19.0 17.0 LHM Integrated LHM 15.0 LSM Integrated 13.0 PFS (SC6.0 and Ta2O5) 11.0 LSM A$B 9.0 7.0 5.0 3.0 PFS 1.0 -1.0 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 20
Slide 14: Location and Infrastructure
Location and Infrastructure Well serviced and highly active mining region For personal use only Major Ni & Au Goldfields Sealed Airstrips Mines Highway Powerline Town of Leinster Natural Gas Pipeline 13 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 15: The longer-term fundamentals remain strong
The longer-term fundamentals Lithium – “The irreplaceable remain strong element in the electric era” For personal use only JANUARY 2020 • EU rules begin – heavily penalising carmakers on CO2 emissions MAY 2020 • France to provide €12,000 subsidies to switch out to EVs – aims to be #1 EV manufacturer
Slide 16: Timeline
Timeline Consistent delivery of results with targets met or exceeded For personal use only Updated PFS and DSS FEED Early Works/Design Commissioning Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q3 2022 Q3 2023 Q1 2025 Q2 2025 DFS FID Construction Production 15 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER
Slide 17: Moora Au-PGE-Ni-Cu Project
Moora For personal use only Au-PGE-Ni-Cu Project WESTERN AUSTRALIA 100%
Slide 18: Project Overview
Project Overview Moora is located in an emerging precious and base For personal use only metal mineral province Same geological terrain as the Julimar Ni-PGE-Au discovery by Chalice Gold Mines (ASX:CHN)1 Tenements acquired in 2018 and 2019 as part of generative exploration strategy for battery metal
Slide 19: Mt Yule - Felton Au - PGE Corridor
Mt Yule - Felton Au - PGE Corridor 15km long, 2.5km wide zone with multiple, For personal use only coincident Au-PGE and magnetic anomalies Individual auger assays up to: • 925ppb (0.92g/t) Au • 75ppb Pd+Pt • 492ppm Ni • 884ppm Cu Multiple plus 100ppb (0.1g/t) Au zones Airborne EM survey defines mul
Slide 20: Mt Yule Prospect
Mt Yule Prospect For personal use only 3.6 x 2.2km, multi-element anomaly 19 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 21: Results Continue to Validate Exploration Concept
Results Continue to Validate Exploration Concept For personal use only Phase 1 (Q2/Q3 2020) COMPLETE • Auger sampling – phase 1 • Extend first pass auger sampling to adjacent areas • Airborne EM • Total budget ~ $500,000 Phase 2 (Q4 2020/Q1 2021) • Ground EM (MLEM) – Mount Yule-Felton Corridor (MYFC
Slide 22: Investment Case
Investment Case The only independent “Tier 1” lithium resource in Australia, strengthened by exciting new For personal use only exploration targets Kathleen Valley Moora 156Mt resource/ 40 Year mine life Au-PGE-Ni-Cu Project in an High grade/Low cost emerging mineral province Safe jurisdiction with
Slide 23: 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 24: Thank You
For personal use only Thank You For more information visit www.Itresources.com.au @LiontownRes liontown-resources-limited
Slide 25: Appendix: Kathleen Valley Project Additional Information
For personal use only APPENDIX 1 Kathleen Valley Project Additional Information
Slide 26: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred For personal use only Company Project Stage Global MRE Mt MRE Grade Information Source Mt Mt Mt Kathleen Valley Development 20 105 32 156 1.35 ASX Announcement, 11 May 2020: https://www.ltresources.com.au Liontown R
Slide 27: Lithium Equivalency (Li2O + Ta2O5) Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters For personal use only Inputs Outputs LI2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2025 – 2040 average price adjusted to FOB) Spodumene $/tonne 739 (B3) US$ (Roskill 2025 – 2040 average price, adjusted to FOB) Tantalite recovery 50%
Slide 28: Peer Comparison Information
Peer Comparison Information Global MRE %Global Global Attributable For personal use only Company Project (Ownership%) Status Source Li2O% (Mt) Resources May 2019 Resource Update, sourced from 21/4/2020 ASX Hard Rock AVZ Manono (60%) DFS release 240.0 1.7 13.0 https://en.wikipedia.org/wiki/Kings_Moun
Slide 29: Peer Comparison Information
Peer Comparison Information Global Attributable %Global Company Project (Ownership%) Status Source Global MRE (Mt) Li2O% For personal use only Resources North American Lithium NAL website - http://na-lithium.com/projects/, from Oct 12 2012 Hard Rock (CATL) Ganfeng La Corne (100%) Mt Marion (50%) Dev
Slide 30: 2020 PFS v 2019 PFS
2020 PFS v 2019 PFS Key Parameters And Assumptions For personal use only General and Economic 2020 PFS 1 2019 PFS Cost Assumptions 2020 PFS 1 2019 PFS Discount rate (real, post-tax) 8% 8% LOM avg open pit mining costs 3 ($/dmt ore processed) A$43 A$35.12 US$690/dmt LOM avg U/G mining costs ($/dmt or
Slide 31: PFS – Operating & Capital Summary
PFS – Operating & Capital Summary1 For personal use only Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs2 5.9 Reagents & Plant Services 16.0 Capital expenditure Infrastructure – general 53.3 - pre-production 0.3
Slide 32: 2020 Downstream Scoping Study (DSS)
2020 Downstream Scoping Study (DSS) Key Parameters And Assumptions1 For personal use only General and Economic LHM LSM Cost Assumptions LHM LSM Discount rate (real, post-tax) 8% 8% LOM avg operating cost (US$/dmt SC6) 2 US$310 US$310 Ave. Price (US$/t FOB Fremantle 2025-2040) US$14,079/t 5 US$6,991/
Slide 33: DSS Cash Flows and Capital Costs Summary
Capital Costs Summary3 DSS – Cash Flows LHM LSM Main Area (A$M) (A$M) For personal use only Integrated Life of Mine Financials1 WOF Plant & Mine Dev. 298 298 LHM (A$B) LSM (A$B) DSS Refinery and Infrastructure Revenues (lithium) 43.2 32.6 Plant site/Earthworks 7.1 7.1 Operating costs 2, 4 (12.5) (10
Slide 34: NPV Sensitivity Analysis (PFS)
NPV Sensitivity Analysis (PFS)1 For personal use only 1 Refer Cautionary Statement on Slide 2 33 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 35: NPV Sensitivity Analysis (DSS)
NPV Sensitivity Analysis (DSS)1 For personal use only 1 Refer Cautionary Statement on Slide 2 34 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 36: DSS | Refinery Flow Sheet
DSS | Refinery Flow Sheet For personal use only 35 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 37: Appendix: Buldania Lithium Project
For personal use only APPENDIX 2 Buldania Lithium Project (Liontown 100%)
Slide 38: Project Overview
Project Overview Buldania is Located in a Lithium-Rich Mineral Province For personal use only 1 Outcropping, fresh, spodumene-related mineralization Mineralisation at Anna extends to the SE under shallow cover – 2 strike length >1.4km and open 3 Similar geology to the Mt Marion and Bald Hill lithium
Slide 39: Resource: Maiden Mineral Resource Estimate
Resource Maiden Mineral Resource Estimate For personal use only 14.9Mt @ 1.0% Li2O The completion of the MRE complements Liontown’s flagship Kathleen Valley Lithium Project 38 | LIONTOWN RESOURCES INVESTOR PRESENTATION NOVEMBER 2020
Slide 40: For personal use only
For personal use only Level 2, 1292 Hay St West Perth WA 6005 +61 8 9322 7431 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited
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