Argosy Minerals Limited · ASX:AGY
Argosy Minerals — Investor Presentation (May 2019)
23 slides from Argosy Minerals's investor presentation, May 2, 2019
Slide 1: May 2019 Investor Presentation
For personal use only May 2019 ASX Code: AGY www.argosyminerals.com.au
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in
Slide 3: Cautionary Statements
Cautionary Statements • The PEA is a preliminary technical and economic study of the potential viability of the Rincon Lithium Project required to reach a decision to proceed with more definitive studies (equivalent to a JORC For personal use only Scoping Study). It is based on preliminary/low-level
Slide 4: Company Overview
PEA Results Company Overview For personal use only
Slide 5: Investment Snapshot
Investment Snapshot Capital Structure Listed Options Board & Management For personal use only Issued shares 1,014,502,141 Issued options 39,334,670 Alexander Molyneux Non-Executive Chairman Share price1 A$0.07 Exercise price A$0.20 Jerko Zuvela Managing Director Expiry date 31 March 2022 Ranko Matic
Slide 6: Investment Highlights
Investment Highlights ▪ Rincon Lithium Project located in the world-class “Lithium Triangle” in Salta Province, Argentina For personal use only ▪ Focussed on becoming the next lithium carbonate producer in South America ▪ Successful fast-track lithium development strategy - Industrial scale pilot pl
Slide 7: Fast-track Development Gaining Momentum
Fast-track Development Gaining Momentum Next phase to commercial scale production confirmed with exceptional PEA Results 2019 Argosy continues to build on achievements For personal use only Revenue Generation 2017 - 2018 ▪ Executed initial sales agreement with Mitsubishi RtM Locking in Value ▪ Secur
Slide 8: Rincon Development
For personal use only Rincon Development
Slide 9: Rincon Development Update – Industrial Scale Pilot Plant
Rincon Development Update – Industrial Scale Pilot Plant For personal use only ▪ Sales Agreement executed with Mitsubishi RtM in March 2019 to sell up to 100tpa LCE Product ▪ Preparatory works now underway for commencement of continuous operations from the Industrial Scale Pilot Plant, including - E
Slide 10: Rincon Development Update: Commercial Scale Development
Rincon Development Update Commercial Scale Development – 10,000tpa For personal use only ▪ PEA completed for the Rincon Project in November 2018 ▪ PEA results confirmed Rincon as a low cost, long life asset, generating attractive returns ▪ Primary focus to secure funding for the development of ~10,0
Slide 11: Commercial Scale Development: PEA Outcomes
Commercial Scale Development PEA Outcomes For personal use only ▪ PEA completed on base case ~10,000tpa plant (with scope for increase to 15,000tpa) ▪ Base case PEA resulted in a pre-tax NPV (10% discount rate) of US$399m and an IRR of 53% ▪ Forecast Capex of US$141m including 15% contingency of US$
Slide 12: Commercial Scale Development: PEA Outcomes
Commercial Scale Development PEA Outcomes For personal use only ▪ Total Estimated Operating Cost US$4,645/t in the lower end of industry cost curve. Opportunity exists for price reduction on a per-unit basis for the non-fixed operating cost items with increasing production rates ▪ Average annual pre
Slide 13: Rincon Project - A Stand Out Lithium Asset
Rincon Project - A Stand Out Lithium Asset Rincon PEA delivers world-class For personal use only 60,000 project economics 50,000 Capital Intensity (US$/t LCE) 40,000 ▪ Low Capex and low capital Rincon intensity 30,000 Median Capital Intensity $16,459/t LCE 20,000 ▪ The modelled NPV is ~3x the 10,000
Slide 14: Rincon Project: Location and Infrastructure
Rincon Project: Location and Infrastructure Rincon lies close to infrastructure in Salta Province, a prolific mining jurisdiction For personal use only ▪ The Project lies within Salta Province, ~3,700m ASL, serviced by city of Salta with Salar Del Rincon population of ~600,000 ▪ The Puna region is k
Slide 15: Rincon Project: Location and Infrastructure
Rincon Project: Location and Infrastructure Rincon lies close to infrastructure in Salta Province, a prolific mining jurisdiction For personal use only ▪ The Project ideally located to nearby infrastructure ▪ Commercial scale (~300ha) evaporation ponds to be constructed ~3km from production wells an
Slide 16: Fast-Track Development: ~2,000tpa Li2CO3 Production Strategy
Fast-Track Development ~2,000tpa Li2CO3 Production Strategy For personal use only ▪ Argosy has the opportunity to expedite production to produce ~2,000tpa LCE Product - 38 hectares of evaporation ponds already constructed - Chemical process to produce 99.5% battery grade LCE Product proven, tested a
Slide 17: Development Highlights
Development Highlights Successfully proven chemical process solutions for high quality lithium carbonate and For personal use only hydroxide products PEA base case scenario1 delivers exceptional returns - Pre tax NPV US$399M (A$554M) - IRR 53% Project has the ability to generate strong average annua
Slide 18: For personal use only
For personal use only
Slide 19: Argosy – A New Lithium Producer
Argosy – A New Lithium Producer For personal use only Exceptional PEA results for the Rincon Project - Estimated operating costs at the low end of the industry cost curve - Ability to generate exceptional annual cash flows under all lithium price outlook scenarios - Long asset life - >16years (to 10
Slide 20: Jerko Zuvela - Managing Director
For personal use only Jerko Zuvela - Managing Director T +61 8 6188 8181 Level 2, 22 Mount Street PERTH WA 6000 Australia Email: admin@argosyminerals.com.au ASX Code: AGY www.argosyminerals.com.au
Slide 21: Appendix – Top Shareholder Register
Appendix – Top 20 Shareholder Register For personal use only Position Holder Name Holding % IC 1 MR JERKO PETER ZUVELA <JAKKZ DISCRETIONARY A/C> 47,155,759 4.65% 2 DIHNA NADA ZUVELA <DNZ DISCRETIONARY A/C> 32,277,469 3.18% 3 MR STEVEN MARIN ZUVELA <TAEZ A/C> 25,964,731 2.56% 4 MR ALEXANDER ALAN MOLY
Slide 22: Appendix – Argentina Open for business
Appendix – Argentina Open for business Positive macro-economic developments underpin strong growth outlook ▪ Investment Friendly tax regime, no need to negotiate separate fiscal For personal use only agreements: – Corporate income tax at the rate of 30% from 1 January 2018, reducing to 25% from 1 Ja
Slide 23: Appendix – Industrial Scale Pilot Plant
Appendix – Industrial Scale Pilot Plant For personal use only 23