Liontown Limited · ASX:LTR
Liontown — Liontown Resources — Investor Presentation (October 2023)
51 slides from Liontown's investor presentation, Oct 19, 2023
Slide 1: Clear line of sight to first production
For personal use only Clear line of sight to first production Capital Raising Presentation 19 October 2023 ASX: LTR ltresources.com.au NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Agenda
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Agenda For personal use only 1 Kathleen Valley Project Recap 2 Funding A Strategy, Buldania & Downstream B Key Risks C Summary of Underwriting Agreement D International Offer Restrictions E Other ASX:LTR 2
Slide 3: Important information
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important information Important Notice and Disclaimers This investor presentation (Presentation) is dated 19 2023 and has been prepared by Liontown Resources Limited (ACN 118 153 825) (ASX: LTR) (Liontown or the Company). By accepting this Present
Slide 4: Important information
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important information FUTURE PERFORMANCE This Presentation may contain certain forward-looking statements, including statements about the expected timetable, capital and operating costs of the Kathleen Valley Project and future supply and demand i
Slide 5: Important information
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important information LIONTOWN AND THE UNDERWRITERS (CONT) In connection with the institutional bookbuild, one or more institutional investors may elect to acquire an economic interest in the New Shares (Economic Interest), instead of subscribing
Slide 6: Executive Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Executive Summary Liontown announces a fully funded solution to production and beyond comprising an approximately A$376m equity raising and A$760m in binding debt commitments which will refinance the A$300m Ford facility For personal use only Kath
Slide 7: Kathleen Valley Recap
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Section 1 Kathleen Valley Recap 7
Slide 8: Large Scale, High Grade, Independent
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Large Scale, High Grade, Independent Kathleen Valley is uniquely positioned as a wholly-owned, large and high-quality hard rock lithium resource in Australia, with Tier 1 offtake customers from South Korea and the United States For personal use on
Slide 9: Powering to First Production
Powering to First Production Major work fronts progressing to schedule, with clear line of sight to deliver first production in mid 2024 For personal use only Mining Operations ESG ü Open pit mining commenced in January 2023 ü >1 million workhours without an LTI ü Mining at Mt Mann has ended and und
Slide 10: Kathleen Valley on Schedule
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Kathleen Valley on Schedule1 Q3 CY2023 Q4 CY2023 Q1 CY2024 Q2 CY2024 Q3 CY2024 For personal use only Tailings Storage Facility TSF complete Open pit and underground mining operations Mining Mt Mann pit GM operations Byrnecut UG mining complete com
Slide 11: Capital Costs
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Capital Costs Liontown has previously announced1 a A$951m Project Capital Cost estimate to first production (A$ real basis) For personal use only Capital Costs – Key Details • Awarded contract rates, schedule and quantities for all major mining an
Slide 12: Operating Costs
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Operating Costs The Company estimates a 10-year average cash cost (C1) of A$6511 per SC62 tonne, excluding royalties and sustaining capital For personal use only Production from 1 January 2025 3, 4 • The award of underground mining and supply chai
Slide 13: Optimised Base Case
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Optimised Base Case ‘Two orebodies, one mine strategy’ has advanced additional mine front development in the Northwest Flats orebody, which is expected to For personal use only support initial 3 Mtpa ramp up and accelerate the path to achieve 4 Mt
Slide 14: Operational and Business Readiness
Operational and Business Readiness For personal use only Operational Readiness • Key operational leadership and team positions filed across Mining, Processing and Maintenance to drive operational readiness to operate and support commissioning • Operations system and process development well progress
Slide 15: Funding
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Section 2 Funding 15
Slide 16: Sources and Uses of Funds
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Sources and Uses of Funds The equity raising of A$376m, combined with the A$760m committed debt facility now fully funds Liontown beyond first producti on For personal use only and includes a prudent liquidity buffer to deliver a robust balance sh
Slide 17: Overview of debt terms
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Overview of debt terms The Company is pleased to announce that it has commitments for A$760m1 of debt funding to address the projected remaining funding requirements For personal use only for the Project ECA Facility Commercial Lender Facility Cos
Slide 18: Equity Raising Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Equity Raising Summary • Liontown is conducting a fully underwritten placement to raise ~A$365 million pursuant to the Company’s existing placement capacity under ASX Listing Rule For personal use only 7.1 (“Institutional Placement”) • Liontown wi
Slide 19: Indicative Equity Raising Timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Indicative Equity Raising Timetable For personal use only Event Indicative date Record date for eligibility to participate in SPP 7.00pm, Wednesday, 18 October 2023 Launch of Offer Thursday, 19 October 2023 Suspension lifted and announcement of co
Slide 20: Liontown Value Proposition
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Liontown Value Proposition Globally significant • Located in premier mining jurisdiction of Western Australia and will provide US IRA compliant material For personal use only Tier 1 lithium mine • First SC6 production expected in mid-2024 with lon
Slide 21: Appendix A: Strategy, Buldania & Downstream
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Appendix A Strategy, Buldania & Downstream 21
Slide 22: Liontown's Strategy
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Liontown’s Strategy For personal use only Our pathway to become a globally significant provider of battery minerals as the world transitions to a low-carbon future Kathleen Valley Downstream Expansion Liontown Full Potential Full Potential Develop
Slide 23: Tier 1 Customers
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Tier 1 Customers Binding offtake agreements underpin the majority of sales for the first five years of production For personal use only TESLA Index Reference Lithium Hydroxide Index Lithium Hydroxide Index Lithium Hydroxide Index Initial period of
Slide 24: Downstream - Getting the Strategy Right Upfront
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Downstream - Getting the Strategy Right Upfront Given the long life and quality of Kathleen Valley, Liontown has a compelling, and unique, opportunity to unlock more value through becoming an integrated producer and refiner of lithium products by
Slide 25: Downstream – Partnership
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Downstream – Partnership Liontown – Sumitomo Downstream Partnership For personal use only • Joint feasibility study into an Australia-Japan lithium supply chain commenced • Exploring intermediate and finishing plant opportunities in Australia and
Slide 26: Buldania – In the Heart of the South Kalgoorlie Lithium District
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Buldania – In the Heart of the South Kalgoorlie Lithium District For personal use only Exploration completed at the Anna deposit to improve 1 definition and infill the Mineral Resource Perth Early scoping level testwork work confirms ore is amenab
Slide 27: Appendix B: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Appendix B Key Risks 27
Slide 28: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks This section discusses some of the key risks associated with an investment in shares in Liontown (“Shares”). There are a number of risk factors, specific to Liontown and of a general nature, which may affect the future operating and fina
Slide 29: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Development Stage For personal use only The Kathleen Valley Lithium Project is at the development stage. The prospects of Liontown should be considered in light of the risks, expenses and difficulties frequently encountered by co
Slide 30: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Debt Financing For personal use only On 29 June 2022, Liontown and the Ford Motor Company executed a binding funding facility agreement (“Funding Facility”) with respect to a A$300 million debt funding facility to be used for the
Slide 31: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Offtake Agreements For personal use only Liontown currently has offtake arrangements with LG Energy Solutions, Tesla and Ford. The remaining production from Kathleen Valley is intended to be retained for spot volume sales and/or
Slide 32: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Approvals and Permitting For personal use only The development of the Kathleen Valley Lithium Project is subject to obtaining further key approvals and revisions to existing approvals from relevant government authorities. The Com
Slide 33: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Lithium and tantalum Recovery For personal use only Mineral recoveries are dependent upon the process that is required to liberate economic minerals and produce a saleable product and by nature contain elements of significant ris
Slide 34: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Third Party risks For personal use only Under state and Commonwealth legislation (as applicable), Liontown may be required to obtain the consent of and/or pay compensation to the holders of third-party interests which overlay are
Slide 35: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Tenure and Access Risk For personal use only Liontown's rights in tenements may be obtained by grant by regulatory authorities or be subject to contracts with third parties. Any third party may terminate or rescind the relevant a
Slide 36: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Future Rehabilitation Liabilities For personal use only Liontown is required to include provisions in its financial statements for future rehabilitation and restoration costs. Estimating the likely quantum of such costs involves
Slide 37: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Contracting Risk For personal use only There is an inherent risk that construction at the Kathleen Valley Lithium Project may not be completed on schedule, or that the construction cost may be difficult to manage, or that signifi
Slide 38: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Insurance Risks For personal use only Liontown insures its operations in accordance with industry practice. However, in certain circumstances, Liontown's insurance may not be of a nature or level to provide adequate insurance cov
Slide 39: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) Risks Specific to the Placement For personal use only Offer Completion Risk Liontown has entered into an underwriting agreement to fully underwrite the Placement, subject to the terms and conditions of that agreement (the “Underw
Slide 40: Appendix C: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Appendix C Summary of Underwriting Agreement 40
Slide 41: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary of Underwriting Agreement Liontown has entered into an underwriting agreement with the Underwriters in respect of the Placement ("Underwriting Agreement"). The Underwriters' obligations under the Underwriting Agreement, including to underw
Slide 42: Summary of Underwriting Agreement
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary of Underwriting Agreement • there is introduced, or there is a public announcement of a proposal to introduce, into the Parliament of Australia or any State or Territory of Australia a new law, or the Reserve Bank of Australia, or any Comm
Slide 43: Appendix D: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Appendix D International Offer Restrictions 43
Slide 44: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may n
Slide 45: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions European Union For personal use only This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available,
Slide 46: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions Singapore For personal use only This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Sing
Slide 47: International Offer Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES International Offer Restrictions United Kingdom For personal use only Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (wi
Slide 48: Appendix E: Other
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only Appendix E Other 48
Slide 49: Appendix: Australian Hard Rock Resources
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix: Australian Hard Rock Resources Resource (Mt) Grade LCE For personal use only Mine Ownership Project Status Measured Indicated Inferred Total (%) (Mt)1 Source ASX Announcement (IGO): FY23 Mineral Resources and Ore Reserves Greenbushes TLE
Slide 50: Appendix: Glossary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix: Glossary ESG Environmental, Social and Governance ROM Run of mine For personal use only Li2O Lithium oxide SC6 Spodumene concentrate 6% Li2O GM General manager SMP Structural Mechnical Piping IRMA Initiative for Responsible Mining Assura
Slide 51: For more information
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only For more information: Shaan Beccarelli Principal Investor Relations Liontown Resources sbeccarelli@ltresources.com.au +61 8 6186 4600 Level 2, 32 Ord Street, West Perth WA 6005 22 ABNNovember 2022 39 118 153 825 ASX:LTR ASX :
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