Sovereign Metals Limited · ASX:SVM
Sovereign Metals — 121 Mining Investment London (May 2017)
18 slides from Sovereign Metals's conference presentation, May 2017
Slide 1: Targeting Low Cost Production of Premium Quality Flake Graphite
SOVEREIGN METALS LIMITED TARGETING LOW COST PRODUCTION OF PREMIUM QUALITY FLAKE GRAPHITE MAY 2017 ASX:SVM
Slide 2: Targeting a Simple & Profitable Flake Graphite Operation
TARGETING A SIMPLE & PROFITABLE FLAKE GRAPHITE OPERATION. 1.Very low operating costs. 2.Very low capital costs. 3.Entry to existing and developing markets. 4. A simple mining & processing strategy. 1
Slide 3: Targeting Very Low Operating Costs
TARGETING VERY LOW OPERATING COSTS Saprolite is the very soft, graphite-bearing, clay-rich oxide material that is formed from intense weathering of the original bedrock. Malingunde is the world’s largest reported saprolite-hosted graphite resource: Total: 28.8Mt @ 7.1% TGC (4.0% TGC cut-off) High-gr
Slide 4: Targeting Very Low Capital Costs
TARGETING VERY LOW CAPITAL COSTS Low strip ratio and high grades will enable small mining fleet and process plant. The very soft material allows a very simple process plant. No requirement for primary crushing or grinding circuit. All plant and equipment is “off the shelf”. 3
Slide 5: Entry to Existing and Developing Markets
ENTRY TO EXISTING AND DEVELOPING MARKETS OVERALL NATURAL GRAPHITE DEMAND (kt) Traditional uses (refractory, expandable & other 2,500 industrial) account for ~80% of existing market. Batteries ~40% Traditional 2,000 1,500 ~20% ktpa 1,000 Entry to existing traditional markets reduces risk; not reliant
Slide 6: Pursuing a Simple Mining & Processing Strategy
PURSUING A SIMPLE MINING & PROCESSING STRATEGY. PROCESSING STRATEGY Sole focus on profitable mining & processing. SPHERICAL SVM PEERS MINING & MINING & No downstream capital requirement reduces PROCESSING PROCESSING technical and financing risk. ~30% OF NPV Low cost and high quality products achieve
Slide 7: Product Value
SOVEREIGN'S HIGH QUALITY PRODUCT LIMITS THE IMPACT OF POTENTIAL NEW SUPPLY. FLAKE SIZE DISTRIBUTION SVM SYR 71% 9% SUPER JUMBO 0% SVM HIGH VALUE 28% JUMBO 8% HIGH PRODUCT VALUE PRODUCT % 27% LARGE 12% 31% 7% MEDIUM 11% LOW 23% SMALL 23% SYR 6% AMORPHOUS 46% 6 Source: SVM and SYR Company Announcement
Slide 8: Malingunde Project Detail
MALINGUNDE PROJECT DETAIL
Slide 9: Dominant Ground Position in the World-Class East African Flake Graphite Province
DOMINANT GROUND POSITION IN THE WORLD-CLASS EAST AFRICAN FLAKE GRAPHITE PROVINCE. Immense upside for further discoveries of saprolite-hosted flake graphite across the large (3,788km2) and 100%-owned tenement package. 8
Slide 10: Malingunde: A Long-Life, Low-Cost, Tier-1 Asset
MALINGUNDE: A LONG-LIFE, LOW-COST, TIER-1 ASSET. Saprolite Mineral Resource Estimate: 28.8Mt @ 7.1% TGC (4.0% TGC cut-off) 3.4KM STRIKE High Grade Component: 8.9Mt @ 9.9% TGC (7.5% TGC cut-off) 80% indicated; 20% inferred 9
Slide 11: Initial Metallurgy Results
INITIAL METALLURGY RESULTS. Results from the initial flotation test program on this material showed: Large flake ~55%-78% of the concentrate in the super jumbo, jumbo and large size fractions (i.e. +149µm). High grade concentrate across all flake size fractions, consistently grading above 98% C(t).
Slide 12: Malingunde: A Tier 1 Graphite Deposit
MALINGUNDE: A TIER 1 GRAPHITE DEPOSIT. World’s largest reported saprolite resource – including a significant high grade component. Free-dig mining and low strip ratios with mineralised material at or near surface – very low overall mining costs expected. Simple processing with no primary crushing an
Slide 13: Market Information
MARKET INFORMATION. ASX : SVM SHARE PRICE MOVEMENT CAPITAL STRUCTURE Current Shares on Issue * 217,329,083 0.16 16 Unlisted Options ($0.10 to $0.47) 15,216,667 0.14 14 Performance Rights 1,400,000 $4M PLACEMENT TO MAIDEN RESOURCE SOPHISTICATED ANNOUNCEMENT Un-Diluted Market A$21.7 m 0.12 INVESTORS 1
Slide 14: Massive Valuation Upside
MASSIVE VALUATION UPSIDE. $650 Undiluted Market Capitalisation (A$M) $307 SIGNIFICANT NEWSFLOW AHEAD – SCOPING STUDY DUE SHORTLY $39.5 $41.2 $37.0 $21.7 COMPANY SVM HXG TON KNL MNS SYR (ASX CODE) Conceptual Scoping Feasibility Feasibility Development Country Malawi Australia Mozambique Tanzania Tanz
Slide 15: Forward Plan and News Flow for Malingunde
FORWARD PLAN AND NEWS FLOW 2017 FOR MALINGUNDE. Q1 Q2 Q3 Q4 RESOURCE Malingunde JORC resource estimate delivered. Complete To examine initial economic parameters for SCOPING STUDY producing graphite from soft saprolite ore at Malingunde. Spherical graphite test-work program for Li-ion DOWNSTREAM bat
Slide 16: Management Team with a Proven Track Record of Success
MANAGEMENT TEAM WITH A PROVEN TRACK RECORD OF SUCCESS. IAN MIDDLEMAS JULIAN STEPHENS MATTHEW WHEELER DOMINIC ALLEN Chairman Managing Director Technical Manager Business Development Manager Mr Middlemas is a Dr Stephens is a Geologist Mr Wheeler is a Geologist Mr Allen is a Chartered Chartered Accoun
Slide 17: Competent Persons Statement & Disclaimer
COMPETENT PERSONS STATEMENT & DISCLAIMER. COMPETENT PERSONS STATEMENT The information in this Report that relates to Mineral Resources is extracted from the report entitled ‘Malingunde: The world’s largest reported saprolite-hosted graphite resource’ dated 18 April 2017. The announcement is availabl
Slide 18: Sovereign Metals Limited | ASX: SVM
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 Esplanade, PERTH WA 6000 | ABN: 71 120 833 427 FOLLOW US
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