Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (July 2021)
31 slides from Sovereign Metals's investor presentation, July 2021
Slide 1: A New Force in Rutile
A NEW FORCE IN RUTILE Kasiya: One of the world’s largest rutile deposits JULY 2021 | ASX: SVM
Slide 2: Kasiya
KASIYA A strategic and globally significant natural rutile (TiO2) discovery 2
Slide 3: Major Natural Rutile End Use Markets
Major Natural Rutile End Use Markets TiO2 Source: TZMI 3
Slide 4: Natural Rutile a Source of Titanium – A Growing $15B Global Market
Natural Rutile a Source of Titanium – A Growing $15B Global Market Natural rutile is the rarest, highest grade and highest value titanium mineral Highest Grade Highest Value2 Rarest TiO2 mineral TiO2 mineral TiO2 mineral ~95% TiO2 +$1,200/t 0.7Mt Mined 20171 Rutile ~50% TiO2 +$200/t 5.7Mt Mined 2017
Slide 5: Natural Rutile has a Far Lower Carbon Footprint
Natural Rutile has a Far Lower Carbon Footprint Natural rutile is the cleanest, purest form of titanium dioxide. It is favoured by pigment producers over higher energy and carbon intensive “upgraded” titanium feed-stocks such as synthetic rutile or titanium slag “…alumina refining, aluminium smeltin
Slide 6: Titanium – a Critical Raw Material
Titanium – a Critical Raw Material The US and Europe all consider titanium as a critical mineral with growing importance US Critical Minerals -Department of the Interior, United States Government The United States is highly import reliant on titanium mineral concentrates Aluminium chromium helium po
Slide 7: Natural Rutile – A Genuinely Scarce Commodity
Natural Rutile – A Genuinely Scarce Commodity No large, high-grade rutile discoveries in over half a century – until now! 1,000 Substantial market space for a new rutile producer always > 800 Demand Supply • Global supply of rutile in structural 600 deficit • Mature mines with declining grades 400 •
Slide 8: The Perfect Storm
The Perfect Storm Supply tightness driving price upwards – very strong short, medium and long-term outlook • CIF China spot prices have sharply risen towards US$1,800 per tonne. Iluka achieved a sales price of $1,199 per tonne2 • A resurgence in demand for titanium pigment and from the welding secto
Slide 9: Kasiya: One Of The World’s Largest Rutile Deposits
Kasiya One Of The World’s Largest 13km Rutile Deposits Maiden JORC Resource 644Mt @ 1.01% rutile1 including a high-grade component of 137Mt @ 1.41% rutile2 9km 1. 0.7% cut-off, Inferred 2. 1.2% cut-off, Inferred 9
Slide 10: Kasiya: Globally Strategic
Kasiya Globally Strategic • Only large rutile-dominant deposit discovered in last 50 years • Comparable in size to Sierra Rutile • Substantial additional resource growth expected In-situ Grade Resource Contained Company1 Project Ilmenite Rutile (Mt) Rutile Zircon (Mt) (%) (%) (%) Iluka Sierra 715 1.
Slide 11: Kasiya: Growth Potential
Kasiya Growth Potential • ~114km2 of drilled, high-grade rutile mineralisation (Kasiya 89km2 + Nsaru 25km2) • Kasiya MRE covers only 43% of this total mineralised footprint • Step-out drilling at Kasiya and Nsaru is continuing with multiple field drilling teams deployed. 11
Slide 12: Kasiya – Simple and Lower Risk
Kasiya – Simple and Lower Risk MINING PROCESSING PROGRESSIVE REHABILITATION High-grade rutile mineralisation Simple, conventional flowsheet already Positioned for effective ESG from surface demonstrated outcomes Soft, friable material – should be Single heavy mineral product = Land to be progressive
Slide 13: Conventional Proven Flowsheet
Conventional Proven Flowsheet Significantly de-risked • Simple, conventional flowsheet • Excellent overall rutile recovery from bulk feed (1 tonne) to product of over 98.3% • Single heavy mineral product = simplified back- end mineral separation plant (MSP) 500μm 13 13
Slide 14: Premium Product Specifications
Premium Product Specifications Comparison of Sovereign’s Rutile Specifications to Leading Global Producers Malawi Rutile Sierra Rutile RBM Kwale Namakwa Sands Constituent Bulk scale (1t) metallurgical results on saprolite- (Sovereign) (Iluka) (Rio Tinto) (Base Resources) (Tronox) hosted mineralisati
Slide 15: Malawi – Stable, Transparent Jurisdiction
Malawi – Stable, Transparent Jurisdiction • Increasingly attracting international investment • Significant potential and appetite for mining • Excellent operating infrastructure in place 15
Slide 16: Operation-Ready Infrastructure
Operation-Ready Infrastructure Infrastructure in place to connect Sovereign to global rutile markets Established rail Paved roads Grid power becoming Established labour pool Plentiful water sources network direct to available and other industrial Nacala Port services MoU in place with rail & port op
Slide 17: Ongoing Work Programs
Ongoing Work Programs Sovereign is rapidly continuing its work programs with key short-term targets • Aggressive drilling programs commenced to enable future resource upgrades (Indicated +) and extensions. • Kasiya’s Scoping Study well underway, targeted for completion late 2021. 17
Slide 18: Sovereign – Compelling investment opportunity into a strategic mineral
New, globally Critical Raw Natural rutile has significant rutile Material with a far lower carbon Sovereign – province rutile in supply footprint Compelling investment deficit opportunity into a strategic mineral Simple and low Stable, transparent Management with risk mining & jurisdiction with prov
Slide 19: Thank you
SOVEREIGN METALS LIMITED Thank you 19
Slide 20: Appendix
APPENDIX 20
Slide 21: Corporate Information
CAPITAL STRUCTURE Corporate Information 421,196,827 22,600,000 Management team with a proven track record of success Shares on Issue 1 Unlisted Options 1 ($0.14 to $0.50, Weighted Average $0.31) IAN MIDDLEMAS | Chairman JULIAN STEPHENS | Managing Director 9,800,000 Mr Middlemas was a Senior Group Ex
Slide 22: Rutile’s Scarcity Means Limited Comparable Projects
Rutile’s Scarcity Means Limited Comparable Projects Two projects with the most similarities make up over 32%* of global rutile production Sierra Rutile Kwale (Kenya) (Sierra Leone) 12% * 20% * of world’s annual of world’s annual rutile production rutile production Current rutile resource 1 Current r
Slide 23: Pigment Market Dominated by Upgraded Alternatives
Pigment Market Dominated by Upgraded Alternatives Natural rutile makes up only a modest percentage of the total high-grade titanium pigment feedstock market due to supply constraints. HIGH GRADE CHLORIDE PIGMENT FEEDSTOCK (+80 TiO2) SUPPLY BY TYPE Significant potential to displace synthetic rutile a
Slide 24: Strong Demand from the Industrial Sector
Strong Demand from the Industrial Sector The welding sector is a major user of natural rutile. • Forecast strong demand with current infrastructure expenditure • In the welding rod industry there is no substitute material for natural rutile • Major producers have noted that very strong demand in the
Slide 25: Titanium will play a key role in the Green Revolution
Titanium will play a key role in the Green Revolution Titanium is a 100% recyclable, eco metal Making Electric Vehicles Safe Lowering CO2 Emissions Protecting Renewable Energy The underbody of Electric Vehicles such Next-generation commercial aircraft In renewable energy applications, as the Tesla M
Slide 26: Kasiya Mineral Resource Estimate Block Model
Kasiya Mineral Resource Estimate Block Model 30,025,000 Unlisted • Rutile mineralisation lies in laterally Options extensive, 1 ($0.10 to $0.50, Weighted near surface, flat “blanket” style bodies Average $0.26) 9,800,000 • High-gradePerformance Rights zonesvesting appear A$194.7 m (milestone conditi
Slide 27: Kasiya Mineral Resource Estimate Heat Map & Cross-Sections
Kasiya Mineral Resource Estimate Heat Map & Cross-Sections 30,025,000 Unlisted Options 1 Rutile mineralisation lies in laterally extensive, near surface, A A’ ($0.10 to $0.50, Weighted Average $0.26) flat “blanket” 9,800,000 Performance Rights A$194.7 m The resource remains open to the northeast, ea
Slide 28: Kasiya Mineral Resource Estimate
Kasiya Mineral Resource Estimate 30,025,000 Unlisted Options 1 ($0.10 to $0.50, Weighted Average $0.26) Resource (Mt) Rutile Grade Contained Rutile (Mt) Cut-off 9,800,000 Performance Rights A$194.7 m (milestone vesting conditions) 1,109 0.82% 9.1 0.40% Un-Diluted Market Capitalisation 974 0.87% 8.5
Slide 29: Kasiya Mineral Resource Estimate - Summary
Kasiya Mineral Resource Estimate - Summary 30,025,000 Unlisted Options 1 ($0.10 to $0.50, Weighted Average $0.26) 9,800,000 Material Tonnes Rutile Rutile Tonnes Performance Rights A$194.7 m Mineral Resource Category (millions) (%) (millions) (milestone vesting conditions) Un-Diluted Market Capitalis
Slide 30: 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 Limi
Slide 31: sovereignmetals.com.au
Sovereign Metals Limited | ASX:SVM T +61 8 9322 6322 | F +61 8 9322 6558 E info@sovereignmetals.com.au Level 9, 28 The Esplanade Perth WA 6000 ABN: 71 120 833 427 sovereignmetals.com.au 31