Capital Metals Plc · LSE:CMET
Capital Metals — Investor Presentation (May 2024)
21 slides from Capital Metals's investor presentation, May 2024
Slide 1: Mine Construction Plan Advancing
MINE CONSTRUCTION PLAN ADVANCING Among the Highest-Grade Global Mineral Sands Projects Q2 2024
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by statements will be at your sole risk. investment decision. Some or all of the information contained in Capital Metals Plc (“CMET” or the “Company”). these slides and the Presentation (and any other information The information con
Slide 3: Overview
OVERVIEW Mine Construction Plan Underway • Initial Industrial Mining Licences issued with additional applications advancing positively • Numerous approvals received to advance to Final Investment Decision Funding/Offtake • Prospective JV - exclusivity with Sheffield Resources (co-developer of the A$
Slide 4: Project Overview
PROJECT OVERVIEW 108km2 Size project area 17.2Mt Resource of current Initial JORC 17.6% Total Heavy Minerals (THM) 75 % Valuable Heavy Minerals 90% THM recoveries 32km Distance to Oluvil Port Confident of even stronger economics; expanding mine life/throughput • Current resource only to average 3m f
Slide 5: Strong Project Economics
STRONG PROJECT ECONOMICS H I G H M A R G I N, S H O R T PAY B A C K Base Case uses long term price assumptions below current prices. Directors confident of further enhancing economics and expanding 10-year mine life and throughput. Revenues (over 10 years) Operating cashflows Free cash flow (over 10
Slide 6: Exposure to Critical Resources in Short Supply
EXPOSURE TO CRITICAL RESOURCES IN SHORT SUPPLY • Mineral sands contain critical titanium minerals (ilmenite and rutile), zircon, and • Garnet is used as an abrasive - blast-cleaning, polishing, filtration and water jet cutting garnet used in industrial processes • Garnet and monazite minerals largel
Slide 7: Road to Production
ROAD TO PRODUCTION Jun 2016 Nov 2021 Apr 2022 1 2 3 May 2022 MINERAL RESOURCE ENVIRONMENTAL STRONG DRILL RESULTS 4 IMPACT ASSESSMENT RESULTS OF ESTIMATE Confirmed higher grade and DEVELOPMENT STUDY Among the highest Comprehensive consulting potential for resource process completed Strong economics –
Slide 8: Among the Highest Grades Globally
A M O N G T H E H I G H E S T G R A D E S G LO BA L LY
Slide 9: Among the Highest Grades Globally
AMONG THE HIGHEST GRADES GLOBALLY Good spread of revenue across product range: JORC Resource Category Resource % • 17.6% THM in highest quartile for grade ‘OOOt THM globally – directors confident of further 5,819 84% of resource is grade and resource increase at depth and Measured 19.9 along strike
Slide 10: Standing Out from the Pack – With Significant Growth Upside
STANDING OUT FROM THE PACK – WITH SIGNIFCANT GROWTH UPSIDE • Chart shows Eastern Minerals Project’s total HM in situ VHM grade % and contained ilmenite (bubble Eastern Minerals Project size) based on Measured & Indicated Resources (i.e. excludes Inferred Resources) ranked against latest published Re
Slide 11: Grade Upside
GRADE UPSIDE • Average grade from 560-hole 2021 auger drilling programme of 19.37% THM, compared to existing JORC resource grade of 17.6% THM - demonstrates grade upside potential • Very high-grade results of up to 86.1% THM, including: • 1m @ 86.1% THM • 3.5m @ 33.40% THM • 0.5m @ 70.86% THM • 1.5m
Slide 12: Resource Upside
RESOURCE UPSIDE Drilling programme Q2 2024 to: • Increase resource confidence to underpin minimum first 12 months of operation • Add additional resources 12
Slide 13: Excellent Infrastructure
EXCELLENT INFRASTRUCTURE • Grid power, scheme water, sealed roads • Oluvil Port - unused commercial port built 2013, 32km by road from Wet Concentrator Plant at mine • Negotiations with authorities for port use and construction of minerals separation plants • Initial reclamation works to include dre
Slide 14: Simple Proven Processing
SIMPLE PROVEN PROCESSING P H Y S I C A L M I N I N G & P R O C E S S I N G O N LY No blasting. No chemicals. Continuous rehabilitation. 14
Slide 15: Conservative Staged Development Minimises Capex
CONSERVATIVE STAGED DEVELOPMENT MINIMISES CAPEX Early Cash Flow STAGE 1 STAGE 2 STAGE 3 STAGE 4 Wet Concentrator Plant Mineral Separation Plant Ramp Up Ramp Up to Capacity Mining Rate 0.55Mtpa Mining Rate 0.55Mtpa Mining Rate 1.1Mtpa Mining Rate 1.65Mtpa Early revenue operation to Magnetic separatio
Slide 16: Project Financing
PROJECT FINANCING Total cost to produce final products at 1.65 Mtpa capacity is estimated in PEA at $81m (incl. 20% contingency) – exclusivity agreed with Sheffield Resources to provide the funding to support the project into production PROSPECTIVE JV Base/Upside Cases*: 10 YEAR MINE LIFE • Prospect
Slide 17: Social Licence to Operate
S O C I A L L I C E N C E TO O P E R AT E 17
Slide 18: Contributing to Sri Lanka
CONTRIBUTING TO SRI LANKA • 300 direct new jobs to be created – upskill and introduce new technology (plus multiplier effect – support services) • Over $130m in government royalties and taxes over initial 10-year project (taxes and portion of royalties applied to improvement of local infrastructure/
Slide 19: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT • +30 years’ resource investment banking experience • +34 years’ experience in stockbroking, investment • Former President 500kozs Americas gold producer banking and commodities • Previously Global Head of Mining and Metals Advisory for Standard Chartered • Director of
Slide 20: Corporate Overview
CORPORATE OVERVIEW ~$22m Market Cap at 5p Vs $155m project Base Case NPV8 Key Info Major Shareholders 10% Sheffield Resources Limited Bruce Griffin (NED) is chairman 344,806,209 Shares in issue 9.5% Bart Properties Pty Limited 17,368,627 Options / Warrants 8% Brent Holdings Limited CMET LSE ticker 4
Slide 21: Summary
SUMMARY FINALISING FINANCE AGREEMENT INFRASTRUCTURE Advanced discussions with Sheffield Resources Close to ports, existing transportation links GRADE IS KING EXPLORATION UPSIDE Very high 17.6% THM grades with potential for increase Drilling recommencing and funding in place to continue EXPERIENCED L