Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (July 2014)
17 slides from Sovereign Metals's investor presentation, Jul 8, 2014
Slide 1: Unique, World Class Graphite Opportunity
UNIQUE, WORLD CLASS GRAPHITE For personal use only OPPORTUNITY July 2014 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
Slide 2: All the Key Elements in Place
For personal use only All the Key Elements in Place High Growth • Large Flake Graphite - driven by lithium battery demand, Sector refractories and other high end applications World Class • Two core projects with world class grade/flake properties Projects plus huge unexplored potential Excellent • M
Slide 3: Jumbo and Large Flake Graphite Will Attract Growing Premiums
Jumbo and Large Flake Graphite Will Attract Growing Premiums For personal use only 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jumbo $ 3,362 $ 2,135 $ 1,577 $ 1,726 $ 1,884 $ 1,676 $ 1,555 $ 2,596 $ 3,573 $ 6,175 Large $ 2,514 $ 1,595 $ 1,178 $ 1,192 $ 976 $ 996 $ 684 $ 811 $ 947 $ 1,165 Mediu
Slide 4: Excellent Core Projects plus exploration upside
2 Excellent Core Projects plus exploration upside Duwi For personal use only • High grade – average assays 8.3% CGT • Outcropping 24km strike • World class flake – 64% medium-large- jumbo • Excellent infrastructure • Initial JORC 2014 Dedza • High grade – average assays 10.3% CGT • Saprolite – soft,
Slide 5: Primary Graphite Target – Duwi
Primary Graphite Target – Duwi • High-grade flake graphite For personal use only intersected in trenching and drilling over ~2km strike length. • Open along strike and at depth in all areas. • Drilling and trenching underway. • JORC estimate due late 2014. • 64% high value Medium- Large-Jumbo flake.
Slide 6: Shallow mineralisation at Duwi
For personal use only Shallow mineralisation at Duwi The next objective at Duwi is to define sufficient high grade mineralisation near surface to undertake a Scoping Study. Potentially a simple, low cost, open pit mining operation producing flotation concentrates with a large proportion of Jumbo and
Slide 7: Sovereign Projects have world leading Large Flake %
Sovereign Projects have world leading Large Flake % Company Tonnes (Mt) Grade % Carbon (in-situ) Flake Size Market Cap ($m)1 For personal use only Syrah Resources (ASX: SYR) $737.8 Balama - Mozambique 1,150 10.2% > 425 µm 3.3% From ASX Announcement dated 15 297 µm - 425 µm 12.9% January 2014 177 µm
Slide 8: Low cost saprolite target – Dedza
For personal use only Low cost saprolite target – Dedza • Saprolite hosted mineralisation mapped over 24km in total. • Trenching demonstrates mineable widths of graphitic saprolite at surface over 2km at DME. • Trenching underway at DMW. • Saprolite met testwork returned 47% Jumbo and Large flake gr
Slide 9: Saprolite potential at Dedza
Saprolite potential at Dedza For personal use only Ongoing trenching at Dedza will further define high grade saprolite mineralisation at surface. Note hand dug trenches in soft, friable material. 8
Slide 10: Testwork flowsheets
Testwork flowsheets For personal use only Duwi Testwork Flowsheet Dedza Testwork Flowsheet 9
Slide 11: Malawi – Stable and Mining Friendly
Malawi – Stable and Mining Friendly For personal use only • Population 16.4m • GDP/capita - US$388 • Limited natural resources and supportive of mining • Corporate tax rate – 30% • Mining royalty rate is 5% • Peaceful presidential election in May – 5 years (Peter Mutharika) 10
Slide 12: Excellent Infrastructure
Excellent Infrastructure For personal use only • Operational railway with siding located just 21km by road from Duwi – links to deep water port at Nacala, Mozambique. • High-capacity power line passes within 3km of Duwi. • Lilongwe, the capital city of Malawi, lies just 15km to the west of Duwi. 11
Slide 13: Management Team with a Proven Track Record of Success
For personal use only Management Team with a Proven Track Record of Success Current Chairman of Papillon Resources Limited, Equatorial Resources Limited and Ian Middlemas Prairie Downs Metals Limited. Former Chairman of Mantra Resources Limited, Coalspur (Chairman) Mines Limited and Sierra Mining Li
Slide 14: Capital Structure
Capital Structure For personal use only Capital Structure * Current Shares on Issue 94,340,328 Performance Shares ‘Class A’ 8,750,000 Performance Shares ‘Class B’ 8,750,000 Incentive Options 6,250,000 Diluted Market Capitalisation (at $0.35) $39.3m Cash ~$3.0m Enterprise Value $36.3m * As at 7 July
Slide 15: Intensive programs underway = news flow
For personal use only Intensive programs underway = news flow Duwi • Trenching and drilling for initial JORC estimate in 2014. • Ongoing metallurgical optimisation and processing studies. • Scoping Study late 2014/early 2015. Dedza • Trenching and drilling for initial JORC estimate in late 2014 or e
Slide 16: Contact Details
For personal use only Contact Details Australia: Level 9, The BGC Centre 28 The Esplanade Perth WA 6000 Australia Tel: +61 8 9225 5485 Fax: +61 8 9322 6558 Email: info@sovereignmetals.com.au www.sovereignmetals.com.au 15
Slide 17: Disclaimer Notice & Competent Persons Statement
Disclaimer Notice & Competent Persons Statement Disclaimer Notice The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Sovereign Metals Ltd (“SVM”) nor For personal use only does it form the