Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Investor Presentation (March 2021)
20 slides from Prospect Resources's investor presentation, Mar 2, 2021
Slide 1: ASX Announcement: Corporate Presentation March 2021
ASX ANNOUNCEMENT 2 March 2021 ASX.PSC FRA.5E8 Corporate Presentation March 2021 For personal use only African lithium developer, Prospect Resources Limited (ASX: PSC, FRA:5EB) is presenting at an investor conference in Sydney on Tuesday 2 March 20201. Please find attached a copy of the presentation.
Slide 2: Africa, the next lithium frontier
For personal use only Africa, the next lithium frontier Low cost, high purity lithium March 2021 Sam Hosack – Managing Director ASX:PSC FRA:5E8
Slide 3: Disclaimer
For personal use only Disclaimer Caution Regarding Forward Looking Information The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Prospect Resources Ltd (“Prospect Resources or the Company”) or
Slide 4: Lithium Market: EV Adoption accelerating
Lithium Market EV Adoption accelerating For personal use only • China and Europe leading the way. Europe set to become the largest EV market for 2021 • UK sales have accelerated following emissions policy and EV subsidy. In order for the UK to meet their 2035 EV target of 3m EV’s sold per annum, it
Slide 5: Lithium Market: market in deficit in 2021 without further investment
Lithium Market Without further investment, the market is in deficit in 2021 For personal use only Million LCE tonnes Shortage of long-term supply 4.0 EV achieves ICE cost parity 2 • Existing operational supply only 3.5 Arcadia’s targeted commencement of operation Demand in place to meet demand to 20
Slide 6: Corporate Overview
Corporate Overview Corporate Summary Equity Listings ASX: PSC Low cost, high quality lithium development FRA: 5E8 Shares Outstanding (1/3/2021) 332m For personal use only Shares (F/D) 344m Share Price (1/3/2021) A$0.175 Top 10 largest hard rock lithium asset globally – with Market Capitalisation (1/
Slide 7: Board of Directors and Executives
Board of Directors and Executives Lithium, project development and African mining experience For personal use only The team comprises a matrix of expertise across technical, corporate, project development, offtake and mine operations Experience across major miners operations both in Africa and globa
Slide 8: Arcadia Lithium Project
Arcadia Lithium Project Direct access to all essential services and infrastructure • Operating in an established mining jurisdiction with over 100 For personal use only years of mining history • Zimbabwe has the 2nd largest platinum and chrome deposits in the world and is the 5th largest producer of
Slide 9: Arcadia - Mining
Arcadia - Mining Strong project economics validating a transition to development For personal use only Ore Reserve Category Tonnes (Mt) Li2O (%) Ta2O5 Li2O (kt) Contained • Open pit, near surface mining (ppm) Ta2O5 (Mlbs) Proved 11.3 1.28% 114 144 2.8 Probable 26.1 1.20% 124 314 7.2 • Low strip rati
Slide 10: Arcadia - Definitive Feasibility Study
Arcadia - Definitive Feasibility Study Strong project economics validating a transition to development For personal use only Operating Parameters Units Value Life of Mine Modelled (All Open Pit) Years 15.5 The financial outcomes of the DFS Plant Throughput Mtpa 2.4 Average Lithia Head Grade % 1.22 p
Slide 11: Arcadia Project Economics: Competitive Advantage
Arcadia Project Economics Competitive Advantage Competitive cost of production throughout lithium cycle For personal use only Spodumene hard rock total cost curve $800 $686 $700 Arcadia is positioned to be the lowest quartile $600 spodumene producer: $505 $500 • Upper quartile ore head grade $450 US
Slide 12: Tier one partners secured
Tier one partners secured Offtake agreements in place across Europe & Asia For personal use only Offtake Agreements in place: • 7 year offtake agreement for: • 40,000tpa of 6% spodumene concentrate; • 112,000tpa of 4% petalite concentrate; and • US$10m pre-payment • A$10m equity investment in Prospe
Slide 13: Attractive Upside Valuation compared to Peers
Attractive Upside Valuation compared to Peers Peer group comprises advanced greenfield hard rock lithium projects For personal use only EV / Att. Reserve1 EV / % of Att. NPV (after-tax)1 1,600 300% 1,413 1,400 250% 239% 1,200 % of Att. NPV (after-tax) 200% 1,000 A$ / LCE 800 150% 114% 600 100% 400 7
Slide 14: Clear pathway to production and updated Feasibility
Clear pathway to production and updated Feasibility Staged development, producing of high purity products For personal use only ✓ Production of high purity petalite samples for customers H1 CY2021 DMS PILOT PLANT ✓ Optimise flowsheet and design for FEED ✓ Revised Feasibility Study for staged growth
Slide 15: Summary
Summary • DFS completed For personal use only Africa’s most advanced • Fully permitted lithium project • Offtake Partners • Pathway to ramping up production • Top 10 Largest Global Hard Rock Lithium Asset Tier 1, low cost deposit • Mineral Resource 72.7Mt @1.11% Li2O and 119ppm Ta2O5 with a Long Lif
Slide 16: Contact Us
CONTACT US For personal use only Nick Rathjen General Manager, Corporate Development Mobile: +61 405 730 041 Email: [email protected] www.prospectresources.com.au
Slide 17: Appendix
For personal use only APPENDIX
Slide 18: Project parameters and assumptions
Appendix 1 Project parameters and assumptions For personal use only Mining and Production Cost Assumptions (US$/t) Processing Plant Size 2.4Mtpa Mining 97 Ore Reserve 37.4Mt Processing (inclusive crushing) 136 - Li2O grade (diluted) 1.22% - Ta2O5 grade (diluted) 121ppm General administration and sel
Slide 19: LoM Financials and Capital Expenditure
Appendix 2 LoM Financials and Capital Expenditure Life of Mine Financials Capital Cost Summary (US$ Thousands) For personal use only Average Annual Free Cash Flow from Operations (post-tax) US$101M Mine Development Cost (Sub Total) 4 816 Average first 5 years Annual Free Cashflow from operations US$
Slide 20: Valuation peer group
Appendix 3 Valuation peer group For personal use only Company Prospect Resources AVZ Minerals Core Lithium Piedmont Lithium Liontown Ticker PSC AVZ CXO PLL LTR Exchange ASX ASX ASX ASX ASX Market Capitalisation (01/03/2021) 58 520 263 1,200 798 Cash (A$m) 5.5 8.3 4.5 95.9 16.4 EV(A$m) 50.5 526.7 341
Prospect Resources — Investor Presentation (March 2021) on 6ix