Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Investor Presentation (September 2017)
27 slides from Prospect Resources's investor presentation, Sep 18, 2017
Slide 1: Investment Outline – Arcadia Lithium Project
For personal use only Investment Outline – Arcadia Lithium Project September 2017
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Prospect Resources Ltd (“Prospect Resources or the Company”) or its respective employees, agents or consultan
Slide 3: Competent Person’s Statements
Competent Person’s Statements For personal use only The information in this announcement that relates to Exploration Results, is based on information compiled by Mr Roger Tyler, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and The South African Institut
Slide 4: Arcadia Lithium Project Summary
Arcadia Lithium Project Summary For personal use only Conveniently No Committed Compelling Near Term located to Rail, Offtake – Project Lithium Road and Various Investment Concentrate Power Discussions Returns Supply Infrastructure Ongoing Pre Feasibility Study Completed, Largest JORC Hard Rock Lith
Slide 5: Prospect Resources Background
Prospect Resources Background Market Data For personal use only Background Prospect Resources Limited (ASX:PSC) is a Southern Shares outstanding 1,594,128,296 Africa focused Lithium and Gold mining and exploration Market Capitalisation (A$) 14 Sept 17 47,823,849 company based in Perth with operati
Slide 6: Arcadia Lithium Project Location, Infrastructure and Resources
Arcadia Lithium Project Location, Infrastructure and Resources For personal use only Arcadia is conveniently located and has excellent access to infrastructure and resources: − approximately 35 km East of Harare − less than 20 km gravel road to sealed highway − less than 20 km from railway to Beir
Slide 7: Arcadia Lithium Project Milestones Delivered and Plan
Arcadia Lithium Project Milestones Delivered and Plan Substantial Progress – from May 16 Secured Option on Arcadia 2016 2017 For personal use only Q3 Q4 Q1 Q2 Q3 Q4 Exercised Option on Arcadia Drilling Undertook initial fundraising to undertake drilling and Pre Mineral Resource Estimates Feasi
Slide 8: Arcadia Lithium Project Highlights
Arcadia Lithium Project Highlights For personal use only Key Output/ Results Description Result/ Output Average LCE of 26,000 tpa Mineral Resource at 1% Li2O Cutoff* 40.5 Mt @ 1.44 % Li2O Probable Ore Reserve** 15.8 Mt @ 1.34 % Li2O & 125 ppm Ta2O5 75,000 tonnes spodumene Pit Inventory and Run of Mi
Slide 9: Case for Arcadia Lithium Project
Case for Arcadia Lithium Project Arcadia Lithium Project is an attractive partner for industry / strategic and financial investors For personal use only Last major hard rock lithium resource in the world without contractual offtake commitments Globally significant JORC Code compliant hard rock l
Slide 10: Lithium Demand has Outpaced Supply
Lithium Demand has Outpaced Supply Resulting in significant increase in lithium prices For personal use only Source: GTIS - www.gtis.com 6% Li2O Spodumene Concentrate Prices • 2014 Greenbushes USD390/t CIF China (est) • 2015 Greenbushes USD425/t CIF China (est) Current Contracts • Nov 16 Galaxy
Slide 11: Electric Vehicles (EV) - Major Driver and Accelerating
Electric Vehicles (EV) - Major Driver and Accelerating For personal use only Extracts from Goldman Sachs Report - Electric Vehicle Boom - 7 September 2017 Prospect Resources 11
Slide 12: The Lithium Market
The Lithium Market For personal use only Lithium Demand Factors Lithium Supply Factors Demand driven by: Near term supply constrained by: − The electric car boom (China expected − Capital intensity to commercialise brine to set end date for ICE cars) sources of lithium − Falling battery prices resul
Slide 13: Global Hard Rock Lithium Resources
Global Hard Rock Lithium Resources For personal use only Note: Hard Rock refers to all pegmatite hosted Li deposits only. Mineral Resource estimates for Projects other than Arcadia have been sourced from Company Public Domain sources. These estimates have been prepared under differing estimation met
Slide 14: Arcadia Lithium Project High Level Investment Returns
Arcadia Lithium Project High Level Investment Returns Summary For personal use only Updated PFS Model Result (USD) Model Output Summary: − Pre-Tax Net Present Value at 10% $319M − Internal Rate of Return 189% − Gross Revenue LoM $2.3B − OPEX LoM $1.4B − Net Cash flow $775M − Payback Period ~2 years
Slide 15: Dealing with Country Risk – Perception and Reality
Dealing with Country Risk – Perception and Reality PERCEPTIONS REALITIES For personal use only Country / Civil Society Risk Arcadia Lithium Mine will be a significant foreign currency earner for Zimbabwe which is extremely important to the country and is Zimbabwe is significantly more organised,
Slide 16: Appendix I: Profiles of Board Members, Key Management and Consultants
For personal use only APPENDIX I Profiles of Board Members, Key Management and Consultants Prospect Resources 16
Slide 17: Profiles – Board Members
Profiles – Board Members Prospect Resources board of directors, management and technical consultants have extensive experience and For personal use only demonstrated capacities in the commercialisation of mineral ores in Zimbabwe and across Africa. Mr Warner holds a Bachelor of Economics from the Un
Slide 18: Profiles – Key Management
Profiles – Key Management For personal use only Mr Hilbrands has worked as CFO for a number of public companies listed on the ASX and AIM, primarily resources Chris Hilbrands focused. Mr Hilbrands has been responsible for the day to day financial and administrative operations together with (Group CF
Slide 19: Profiles – Technical Consultants
Profiles –Technical Consultants For personal use only Mr Venter is a consulting geologist with more than 23 years experience. He has generated a broad experience in the Mike Venter mining and exploration industry at a corporate, junior exploration and consulting capacity. He has travelled extensivel
Slide 20: Appendix II: Hardrock Lithium Resources vs Market Capitalisation
For personal use only APPENDIX II High Level Analysis Hardrock Lithium Resources vs Market Capitalisation Prospect Resources 20
Slide 21: Global Hard Rock Lithium Resources
Global Hard Rock Lithium Resources For personal use only Arcadia contains over 1.85 Mt of Lithium Carbonate Equivalent (LCE) Appears undervalued when compared to its peers, as shown by market capitalisation. Note: LCE estimates for Projects other than Arcadia have been sourced from Company Publi
Slide 22: Appendix III: Arcadia Mineral Ore Reserve & Resources Estimation
For personal use only APPENDIX III Arcadia Mineral Ore Reserve & Resources Estimation 22
Slide 23: Arcadia Ore Reserve Estimates
Arcadia Ore Reserve Estimates Arcadia Lithium Deposit Ore Reserve Estimate (>1% Li2O)* For personal use only Tonnes Ta2O5 Ta2O5 Fe2O3 Category Li2O (%) Li2O (t) (Mt) (ppm) Mlbs (%) Proven 0 0 0 0 0 0 Probable 15.8 1.34 125 212,000 4.3 1.02 TOTAL 15.8 1.34 125 212,000 4.3 1.02 • Ore Reserve represent
Slide 24: Arcadia Mineral Resource Estimates
Arcadia Mineral Resource Estimates For personal use only High Grade Zone - 1% Li2O Cut-off* Tonnes Ta2O5 Li2O Ta2O5 Category Li2O % Mt ppm Tonnes Mlbs Measured 6.2 1.48% 132 92,400 1.8 Indicated 22.3 1.36% 117 303,700 5.8 Inferred 12.0 1.56% 117 186,600 3.0 GRAND 40.5 1.44% 119 582,700 10.6 TOTAL Gl
Slide 25: Appendix IV: Arcadia Lithium Mine – Processing and Logistics
For personal use only APPENDIX IV Arcadia Lithium Mine – Processing and Logistics Prospect Resources 25
Slide 26: Arcadia Lithium Project - Processing & Logistics
Arcadia Lithium Project - Processing & Logistics For personal use only Extensive metallurgical testwork completed Total recoveries 71%, process optimisation continues Simple open pit, and short haul to communition and process plant Sufficient ground and surface water with grid power <3km awa
Slide 27: For further information, please contact
For personal use only For further information, please contact Hugh Warner Harry Greaves Prospect Resources Prospect Resources Executive Chairman Executive Director Mobile: +61 413621652 Mobile:+263 772144669 www.prospectresources.com.au Prospect Resources 27
Prospect Resources — Investor Presentation (September 2017) on 6ix