Secure Property Development & Investment Plc · LSE:SPDI
Secure Property Development & Investment — Bacanora Lithium — Investor Presentation (November 2020)
20 slides from Secure Property Development & Investment's investor presentation, November 2020
Slide 1: Developing a World Class Lithium Project
Developing a World Class Lithium Project Corporate Presentation Q4 2020
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION The content of information contained in this presentation (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any
Slide 3: Index
INDEX The lithium market Sonora project summary Location and geology Pilot plant and process Lithium cost curve and Sonora operating costs Community and people 2 CORPORATE PRESENTATION
Slide 4: Corporate Strategy
CORPORATE STRATEGY Lithium Goal to become an international lithium production company with a portfolio of global projects Project Location SONORA LITHIUM Plant & Process PROJECT, MEXICO 44% INVESTMENT IN ASIA Market: Asia ZINNWALD LITHIUM PLC Market: Europe Lithium cost curve Market Ticker Market Ca
Slide 5: Overview: Sonora Lithium Project
OVERVIEW: SONORA LITHIUM PROJECT Lithium AIM listed company focused on building a 35,000 tpa lithium carbonate operation at Sonora in Mexico Large Lithium Deposit Project Experienced Management 8.8 Mt of LCE resources at Sonora, open-pit Track record in mine development and mining * with ~250 year r
Slide 6: Outcropping Lithium Deposits - Combined Width Over Metres
OUTCROPPING LITHIUM DEPOSITS - COMBINED WIDTH OVER 40 METRES Lithium Project Location Plant & Process Lithium cost curve Community 5 CORPORATE PRESENTATION
Slide 7: Sonora Leases – Exploration Upside
SONORA LEASES – EXPLORATION UPSIDE Lithium 100,000 ha Project Location Line of strike 20 years life mine Plant & Process 7km Lithium cost curve 50 years Community 6 CORPORATE PRESENTATION
Slide 8: Conventional Processing Route Tested with Pilot Plant in Mexico
CONVENTIONAL PROCESSING ROUTE TESTED FOR 4 YEARS WITH PILOT PLANT IN MEXICO PRODUCING 99.9% LITHIUM Lithium Open-pit mining Project Trommel and screen Location Sulphate (Na2SO4) roast to produce Li2SO4 Plant & Process Evaporation and precipitation Lithium Cost Curve Soda Ash (Na2CO3 ) addition SX an
Slide 9: Feasibility Study in Numbers
FEASIBILITY STUDY IN NUMBERS Lithium Stage 1 Av. Operating costs Initial Construction Capital Cost of >4,000 $/t Li₂CO₃ Project $420M ( ~3,500/t net of K₂SO₄ credits) Pre-tax Post Tax Location NPV8 of $1.25B NPV8 of $802M NPV0 of $3.4B NPV0 of $2.37B (based on $11,000/t Li₂CO₃ ) (based on $11,000/t
Slide 10: Commercialising Sonora
COMMERCIALISING SONORA Lithium Ganfeng, Hanwa and RK providing long term offtake and debt support ▪ Ganfeng Lithium Investment and Off-take: Project ▪ Strategic 25.8% investment at the Corporate level ▪ Lithium offtake for 50% Stage 1 production ▪ FOB contract for battery grade lithium carbonate at
Slide 11: Peer Analysis: Estimated Industry Cost Curve Post 2025
PEER ANALYSIS: ESTIMATED INDUSTRY COST CURVE POST 2025 Lithium Favourable position on cost curve Project Location Plant & Process Lithium Cost Curve Community Source:(*Canaccord April 2018, BCN 43-101) 10 CORPORATE PRESENTATION
Slide 12: Environment, Safety and Governance
ENVIRONMENT, SAFETY AND GOVERNANCE Lithium • Compliance with local and international standards Project Environmental • Life of Mine rehabilitation strategy underway • Project design results in zero discharge site Location • Workforce will comprise >85% Sonora local residents • Support of local commu
Slide 13: Board
BOARD Mark Hohnen – Executive Chairman Peter Secker – Chief Executive Officer ▪ Extensive international business experience in wide range of industries ▪ Mining Engineer with almost 40 years experience in the resources including mining and exploration, property, investment, software and industry agr
Slide 14: Management
MANAGEMENT Janet Blas Ms. Blas is a certified public accountant who has held a number of senior financial roles, with over 15 years experience in CFO the resources sector, including Group Chief Financial Officer and Executive Director of Gemfields plc. Mr. Carter has over 22 years of lithium carbona
Slide 15: Investment Case
INVESTMENT CASE Transitioning from lithium explorer to lithium developer Large lithium deposit, Company-making Conventional sulphate low strip ratio, with assets with US$1.7Bn processing route permits in place NPV Fast-Growing End Japanese trading house Markets and Chinese lithium major as strategic
Slide 16: Ganfeng: An Active Partner
GANFENG: AN ACTIVE PARTNER to play active role in Sonora’s development and commercialisation: Cornerstone investment by top tier global lithium producer Access to Ganfeng’s engineering database and design team Conduct review of current EPC engineering design focused on reducing the US$420m capital c
Slide 17: Sonora Feasibility Study: Positive Economics
SONORA FEASIBILITY STUDY: POSITIVE ECONOMICS Feasibility Study Key Indicators Construction Capital Costs (rounded to nearest US$’000) Feasibility Study Key Indicators Value Category FS Estimate Stage 1 FS Estimate Stage 2 Pre-tax Net Present Value ($ 000) 1,253,027 (US$000) (US$000) Pre-tax IRR (%)
Slide 18: Key Data
KEY DATA Market AIM Ticker: BCN MARKET CAP: ~£85M (as of 16.11.20) Gangfeng Lithium (25.83%) NOMAD Cairn Financial M&G Investment Funds (19.90%) Advisers LLP Hanwa Co., LTD (5.53%) Igneous Capital Limited (4.43%) Broker Citigroup/ D&A Income Limited (2.12%) Canaccord Other (49%) Genuity 17 CORPORATE
Slide 19: Zinnwald Lithium Project
ZINNWALD LITHIUM PROJECT Strategic asset located in close proximity to a thriving market for lithium and energy products ▪ 44% equity investment in Zinnwald Lithium PLC (m/c ~£15m) ▪ 35km from Dresden on the Czech Republic border in an historic granite hosted Sn/W/Li belt ▪ Historically mined for ti
Slide 20: Contact
CONTACT Bacanora Lithium plc Peter Secker / Janet Blas E: [email protected] www.bacanoralithium.com Tavistock Financial PR Jos Simson / Emily Moss / Oliver Lamb T: +44 (0) 20 7920 3150 E: [email protected] www.tavistock.co.uk 19 CORPORATE PRESENTATION
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