Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Investor Presentation (February 2020)
18 slides from Prospect Resources's investor presentation, Feb 3, 2020
Slide 1: Arcadia Lithium Project Updated Definitive Feasibility Study
For personal use only Arcadia Lithium Project Updated Definitive Feasibility Study February 2020 ASX: PSC I FRA:5E8
Slide 2: Disclaimer
Disclaimer Caution Regarding Forward Looking Information For personal use only 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 3: Company Overview
Company Overview Leading Africa in the battery minerals revolution For personal use only + Listed on the Australian (ASX: PSC) and Frankfurt (FRA: 5E8) exchanges Strategically Focused + Battery minerals company with a focus on lithium in and around Zimbabwe + Flagship project is the 87%1 owned Arcad
Slide 4: Arcadia, a game changing lithium project
Arcadia Lithium Project Arcadia, a game changing lithium project For personal use only • 7th largest global hard rock lithium asset • Fully permitted to commence production • Strong project economics to drive returns for shareholders • Diversified markets across Europe, North America and North Asia
Slide 5: Arcadia Lithium Project: Updated DFS
For personal use only Arcadia Lithium Project: Updated DFS
Slide 6: Updated DFS: Highlights
DFS Highlights Updated DFS: Highlights For personal use only • Average Annual EBITDA (First 5 years) US$168M Significantly improved Page 7 • CAPEX US$162M, including EPCM cost provision & 14% contingency1 project economics • Pre-tax NPV10 US$710M2 • 7th Largest Global Hard Rock Lithium Asset Optimis
Slide 7: Significantly Improved Project Economics
Significantly Improved Proj ect Economics A tier one project delivering strong returns Annual EBITDA ( First 5 Years) Updated DFS Nov 20191 Change2 5 years average For personal use only 250 Average Annual 195 200 177 181 EBITDA (first 5 years) 99% increase 161 168 US$168M (Previously US$84M) 150 127
Slide 8: Strong cashflow delivering rapid payback
Significantly Improved Proj ect Economics Strong cashflow delivering rapid payback US$M Revenue and Net Cashflow (After Tax) For personal use only 36 Months 400 1600 36 Months 1400 Annual Revenue & Net Cashflow US$M 300 18 Months Cumulative Net Cashflow US$M 1200 200 1000 800 100 600 0 400 Productio
Slide 9: Robust project economics – conservative assumptions
Significantly Improved Proj ect Economics Robust project economics – conservative assumptions US$710M NPV10 (pre-tax) Base Case For personal use only Lithium concentrate base case price (-/+20%) 401 1,019 Operating cost base case (+/- 20%) 563 857 Lithium recovery base case (-/+ 10%) 581 840 Capital
Slide 10: Consistent, long life supply with high margin
Significantly Improved Proj ect Economics Consistent, long life supply with high margin 400,000 1,200 For personal use only 350,000 961 1,000 904 300,000 860 Life of Mine operating costs: Revenue & Operating Cost (US$/t) 845 769 Spodumene US$268/t 758 800 250,000 748 Petalite Low Iron US$428/t Petal
Slide 11: Optimised Ore Reserve Estimate and Extended Life of Mine
Optimised Ore Reserve Estimate and Extended Life of Mine Staged open pits, large scale production For personal use only Ore Reserve Nov 2019 Contained Ta2O5 Category Tonnes (Mt) Li2O (%) Ta2O5 (ppm) Li2O (kt) (Mlbs) Proved 11.3 1.28% 114 144 2.8 Probable 26.1 1.20% 124 314 7.2 TOTAL 37.4 1.22% 121 4
Slide 12: Conventional mining & processing techniques
Optimised Ore Reserve Estimate and Extended Life of Mine Conventional mining & processing techniques Processing Flow Global lithium recoveries 55.2% with conservative assumptions For personal use only Petalite (Dense Media Separation) 1 Average production of 122,000 tonnes p.a. Open Pit ROM Ore Feed
Slide 13: Without further project financing, the market is in deficit by 2021
Exceptional Growth Opportunities Without further project financing, the market is in deficit by 2021 For personal use only Million LCE tonnes Shortage of long term supply1 4.0 • Existing operational supply EV achieves ICE cost parity 3 only in place to meet demand 3.5 Arcadia’s targeted commencement
Slide 14: Petalite's Competitive Advantage
Exceptional Growth Opportunities Petalite’s Competitive Advantage Processing Flow For personal use only • Petalite is a lithium aluminium phyllosilicate mineral with chemical formula LiAlSi4O10 and occurs in lithium bearing pegmatites. • Petalite is unique for its thermal properties; as it has a ver
Slide 15: Arcadia's products penetrate 100% of lithium end users
Exceptional Growth Opportunities Arcadia’s products penetrate 100% of lithium end users Expected average Price ratio relationship 2 For personal use only Lithium Market End Users1 Products 17% • Technical grade Petalite Ultra-low Iron has a 61% price premium Glass Petalite 1.61 over chemical grade 6
Slide 16: Continuity and security of supply to a supply constrained market
Exceptional Growth Opportunities Continuity and security of supply to a ‘supply constrained’ market For personal use only Chemical Grade Ultra-Low Iron Spodumene & Petalite Petalite (Technical Grade) Ultra-Low Iron Petalite Chemical Versus Carbonate as feedstock • One of two ultra-low iron Converter
Slide 17: Path forward to becoming a lithium industry leader
Africa’s most advanced lithium project Path forward to becoming a lithium industry leader Financial Close For personal use only I Updated DFS Nov 2019 I 17
Slide 18: Contact Us
For personal use only Media [email protected] CONTACT US Investors & Customers Nick Rathjen General Manager, Corporate Affairs Email: [email protected] www.prospectresources.com.au 18
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