Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (April 2021)
29 slides from Sovereign Metals's investor presentation, April 2021
Slide 1: April 2021
APRIL 2021 ABN: 71 120 833 427 I ASX : SVM
Slide 2: Sovereign Metals – A New Force in Rutile
Sovereign Metals – A New Force in Rutile VERY LARGE, STRONG EXCELLENT SIMPLE HIGH-GRADE MARKET INFRASTRUCTURE MINING AND RUTILE DISCOVERIES FUNDAMENTALS IN PLACE PROCESSING 2
Slide 3: Titanium Dioxide - A Growing $15B Global Market
Titanium Dioxide - A Growing $15B Global Market 5% TITANIUM METAL 90% PIGMENT MARKET TiO2 5% WELDING Source: TZMI 3
Slide 4: Rutile – Rarest, Highest Value & Grade Titanium Mineral
Rutile – Rarest, Highest Value & Grade Titanium Mineral Titanium dioxide occurs in nature 2 predominantly as ilmenite & much Highest Grade Highest Value Rarest less commonly as natural rutile TiO2 mineral TiO2 mineral TiO2 mineral ~95% TiO2 +$1,200/t 0.7Mt Mined 20171 50-55% TiO2 ~$225/t 2.0Mt Mined
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 Mined natural rutile is extracted in
Slide 6: Market Dominated by Upgraded Alternatives
Market Dominated by Upgraded Alternatives Natural rutile only makes a small percentage of the total high-grade titanium feedstock market. HIGH GRADE CHLORIDE PIGMENT FEEDSTOCK (+80 TiO2) SUPPLY BY TYPE Significant potential to displace syn-rutile and chloride slag Natural Rutile 26% Chloride Slag 45
Slide 7: Rutile – A Genuinely Scarce Commodity
Rutile – A Genuinely Scarce Commodity No high-grade rutile discoveries in over a decade… until now Global rutile supply/demand ‘000 TiO2 Units SUBSTANTIAL MARKET 1,200 SPACE FOR A NEW 1,000 RUTILE PRODUCER 800 Global supply of rutile in structural deficit 600 Mature mines with declining grades 400 G
Slide 8: High-grade Rutile Province
High-grade Rutile Province Sovereign has identified a globally significant, strategic rutile province in Malawi Expansive area with high-grade rutile EL from surface Mineralisation remains open in most directions Kasiya - 66km2 Nsaru – 25km2 New Discovery Total mineralised area +91km2 8
Slide 9: Kasiya Deposit – High-Grade & Expansive
Kasiya Deposit – High-Grade & Expansive High-grade rutile consistency intercepted from surface across the mineralisation footprint. 9
Slide 10: Kasiya Deposit – Broad Zones of High-Grade
Kasiya Deposit – Broad Zones of High-Grade Broad zones of very high-grade rutile from surface within the extensive 66km2 mineralisation footprint. 10
Slide 11: Exceptionally High-Grades from Surface
Exceptionally High-Grades from Surface +2.8km 9m @ 1.19% rutile incl. 3m @ 1.86% rutile A large percentage of intercepts remain open at depth High-grade rutile mineralisation is interpreted to extend to the base of the soft saprolite at around 25m Exceptionally high rutile grades from surface substa
Slide 12: Nsaru Discovery – Growing the Province
Nsaru Discovery – Growing the Province The Company’s recent discovery significantly enhancing the rutile province New area of high-grade mineralisation within kilometres of Kasiya Extensive 25km2 mineralisation footprint Remains open to the north and importantly to the south at its widest zone Very
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
Slide 14: Top End Product Specifications
Top End Product Specifications Comparison of Sovereign’s Rutile Specifications to Bulk scale (1t) metallurgical results on Leading Global Producers saprolite-hosted mineralisation show Constituent Malawi Rutile Sierra Rutile RBM Kwale Namakwa Sands (Sovereign) (Iluka) (Rio Tinto) (Base Resources) (T
Slide 15: Malawi – Stable, Transparent Jurisdiction
Malawi – Stable, Transparent Jurisdiction A 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 network direct to Nacala Port MoU in place with rail & port operator Paved roads surrounding project locations Grid power becoming available across license areas Established labour p
Slide 17: Kasiya – Simple and Lower Risk
Kasiya – Simple and Lower Risk Mining Processing Progressive Rehabilitation High-grade rutile Simple, conventional Positioned for effective ESG mineralisation from surface flowsheet already outcomes demonstrated Soft, friable material – Land to be progressively should be suitable for Single heavy mi
Slide 18: Ongoing Work Programs
Ongoing Work Programs Maiden JORC Mineral Resource estimate for Kasiya Step-out and regional drilling at Kasiya, Nsaru and the broader surrounding area to identify extensions and new zones of rutile mineralisation Metallurgical variability test-work planned for a large representative sample from Kas
Slide 19: Sovereign – A Compelling Rutile Opportunity
Sovereign – A Compelling Rutile Opportunity VERY LARGE SCALE, HIGH-GRADE & AT SURFACE NEW, GLOBALLY SIGNIFICANT RUTILE PROVINCE RUTILE MARKET IN DEFICIT EXCELLENT INFRASTRUCTURE STABLE, TRANSPARENT JURISDICTION MANAGEMENT WITH PROVEN AFRICAN EXPERIENCE WELL FUNDED FOR ACCELERATED ACTIVITIES 19
Slide 20: Thank You
THANK YOU 20
Slide 21: Appendices
APPENDICES
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 (Sierra Leone) Kwale (Kenya) * 20% 12% * of world’s annual rutile production of world’s annual rutile production Assemblage – Current rutile resourc
Slide 23: Very Strong Rutile Market Fundamentals
Very Strong Rutile Market Fundamentals The natural rutile market has recently shifted to a supply deficit “ Historical and Forecast Rutile Pricing “Iluka’s sales constrained by $2,000 $1,800 $1,600 $1,400 $1,200 High Mid “ production in 2019” 1 US$/t Low $1,000 $800 $600 “Rutile demand remains stron
Slide 24: 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 Next-generation commercial In renewable energy applications, Vehicles such as the Tesla Model airc
Slide 25: 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 Aluminium chromium helium potash telluri
Slide 26: Bua Channel Prospect
Bua Channel Prospect Drilling confirms Bua Channel as a high-grade, rutile dominant, sand-hosted, channel placer deposit within the emerging Malawi Rutile Province. Exploration well underway Excellent grades of rutile and high-quality chloride ilmenite with a TiO2 content of ~60% Further extensional
Slide 27: Corporate Information
Corporate Information CORPORATE INFORMATION CAPITAL STRUCTURE Management team with a proven track record of success Shares on Issue 1 414,237,561 Unlisted Options 1 30,025,000 Mr Middlemas was a Senior Group Executive for Normandy Mining for more than ten ($0.10 to $0.50, Weighted Average $0.26) yea
Slide 28: 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 29: Sovereign Metals Limited
SOVEREIGN METALS LIMITED Sovereign Metals Limited | ASX : SVM T: +618 9322 6322 | F: +618 9322 6558 E: info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427
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