PMET Resources Inc. · TSX:PMET
PMET Resources — Patriot Battery Metals — Technical Presentation (August 2024)
41 slides from PMET Resources's technical presentation, Aug 22, 2024
Slide 1: Shaakichiuwaanaan - North America's Next Lithium Powerhouse
For personal use only Shaakichiuwaanaan - North America’s Next Lithium Powerhouse PEA Presentation 22 August 2024
Slide 2: Important Information: Cautionary Statements
IMPORTANT INFORMATION CAUTIONARY STATEMENTS AND INFORMATION ABOUT PEA respect to updating the Inferred Mineral Resources to Indicated Mineral Resources with Shaakichiuwaanaan Project; the estimation or realization of mineral reserves and infill drilling; the preliminary economic assessment, notably
Slide 3: Important Information: Qualified Persons
IMPORTANT INFORMATION QUALIFIED/COMPENTENT PERSONS information in the form and context in which it appears. performance, by eliminating the impact of non-operational or non-cash items. The independent Qualified Person (as such term is defined in NI 43-101, for the estimate in the PEA is Todd McCrack
Slide 4: PEA Overview
For personal use only 1 PEA Overview 4 TSX: PMET ASX: PMT OTCQX: PMETF WB: R9GA PMET
Slide 5: PEA Overview
SHAAKICHIUWAANAAN - PEA PRESENTATION PEA Overview PEA highlights the Shaakichiuwaanaan1 Project as a potential North American lithium power house For personal use only Preliminary Hybrid Mine Plan PEA Shows the Phased Funding Strategy Upside Economics Stage 1 open-pit Potential to Development Strong
Slide 6: PEA Highlights
SHAAKICHIUWAANAAN - PEA PRESENTATION PEA Highlights For personal use only After-Tax NPV8% Real After-Tax IRR Stage 1 Net Capex Payback Period C$2.9 Billion 34% C$640 Million 2 3.6 Years (US$2.2 Billion) (US$487 Million) Estimated break-even spodumene 1 US$1,375/t (SC5.5 FOB Bécancour) price (SC6) of
Slide 7: Patriot's Phased Development Strategy
SHAAKICHIUWAANAAN - PEA PRESENTATION Patriot’s Phased Development Strategy For personal use only Downstream (Opportunity) Stage 2 (Expansion Phase) Future downstream opportunity (Not included in the PEA) Provides increased access to North American Stage 1 and European lithium supply chains ~800ktp
Slide 8: High-grade Mining Potential
SHAAKICHIUWAANAAN - PEA PRESENTATION High-grade Mining Potential CV5 Long Section Highlighting the High-Grade Nova Zone For personal use only • Selectively targeting high-grade mining areas has the potential to reduce costs during periods of lower lithium pricing, improving optionality of the mine
Slide 9: High-grade Mining Potential
SHAAKICHIUWAANAAN - PEA PRESENTATION High-grade Mining Potential For personal use only • A hybrid approach provides significant flexibility, allowing UG Cross-Section Nova Zone Stope Tonnes and Li2O% Grade access to higher-grade zones as needed, which is essential for maximizing Project value while
Slide 10: Key Opportunities
SHAAKICHIUWAANAAN - PEA PRESENTATION Key Opportunities Optimize early access to the Nova Zone - Providing access to the Project Schedule Optimization - Streamline project schedules For personal use only potential in high-grade feed and lower operating costs and refine the staged approach to opti
Slide 11: Global Positioning of Hard Rock Lithium Assets
SHAAKICHIUWAANAAN - PEA PRESENTATION Global Positioning of Hard Rock Lithium Assets Spodumene Concentrate Production (ktpa SC5.5) For personal use only 1,600 Production - Current Production Capacity Production - Planned Expanded Capacity Development PMET 1,400 4th largest hard rock lithium product
Slide 12: Largest Resource in the Americas
SHAAKICHIUWAANAAN - PEA PRESENTATION Largest Resource in the Americas For personal use only Li2O Resource by Tonnes and Grade 80.1 Mt at 1.44% Li2O Indicated 1.80% Production Development PMET 62.5 Mt at 1.31% Li2O Inferred 4.88 Mt contained LCE 1.60% Shaakichiuwaanaan PAK + Spark Grota do Cirilo 1.4
Slide 13: Mine Plan Overview
For personal use only 2 Mine Plan Overview
Slide 14: Strategically Located
SHAAKICHIUWAANAAN – PEA PRESENTATION Strategically Located For personal use only James Bay Region, Quebec Tier 1 mining jurisdiction with established mining workforce Proximity to North American lithium and EV value chain IRA compliant; grants and government debt available Shaakichiuwaanaan CA
Slide 15: Anticipated Production Profile
SHAAKICHIUWAANAAN - PEA PRESENTATION Anticipated Production Profile For personal use only Spodumene Production (kt SC5.5) Steady state annual production of 800ktpa SC5.51 1,000 800 600 400 200 – Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19
Slide 16: Detailed Project Metrics
SHAAKICHIUWAANAAN - PEA PRESENTATION Detailed Project Metrics Financials Results Unit C$ US$ For personal use only Long term price assumption (SC5.5) $/t 1,809 1,375 After-Tax NPV 8% (real) $/t 2,937 2,232 After-Tax IRR % 34 Payback Period year 3.6 Capex C$ US$ Stage 1 total capex $M 7611 579 Expans
Slide 17: Mineral Resource
SHAAKICHIUWAANAAN - PEA PRESENTATION Mineral Resource • The PEA is underpinned by the CV5 Spodumene Pegmatite Oblique view of the CV5 Spodumene Pegmatite Block Model For personal use only component of Shaakichiuwaanaan’s updated Mineral (classified material unconstrained) (not to scale) Resource Est
Slide 18: Mining
SHAAKICHIUWAANAAN - PEA PRESENTATION Mining Mt For personal use only 8.0 • Hybrid mine plan which aims to use both open pit OP Ore Mined and underground (UG) mining methods OP and UG anticipated to account for 56% and 44% 7.0 UG Ore Mined of ore mined, respectively • UG benefits relative to open pit
Slide 19: Processing and Recovery
SHAAKICHIUWAANAAN - PEA PRESENTATION Processing and Recovery For personal use only • Simple DMS-only processing plant • Phased approach could see the installation of a 2.5Mtpa processing plant in Stage 1 and another 2.5Mpta processing plant to run in parallel in Stage 2 • The conceptual processing f
Slide 20: Infrastructure
SHAAKICHIUWAANAAN - PEA PRESENTATION Infrastructure For personal use only • Power – Low-carbon footprint, low-cost and mainly renewable electricity sourced from Hydro-Québec – PEA estimated power cost $0.05/kWHr – The electrical substation will be located at approximately 55 km south of the Hydro-Qu
Slide 21: Infrastructure Upside, La Grande Alliance
SHAAKICHIUWAANAAN - PEA PRESENTATION Infrastructure Upside, La Grande Alliance For personal use only • Road between Renard Mine and the Trans-Taiga1 – During Years 6-15 of LGA plan, a proposed road extension between the Renard Mine and the Trans-Taiga Road is envisioned – This key piece of infrastru
Slide 22: Operating Expenditure
SHAAKICHIUWAANAAN - PEA PRESENTATION Operating Expenditure For personal use only • Low-cost potential mining profile Operating costs C$/t US$/t1 Access to near surface mineralization Low strip ratio of 3.7 (LOM) Mining 305 232 Hybrid mining - open pit and underground flexibility Processing 99
Slide 23: Capital Expenditure
SHAAKICHIUWAANAAN - PEA PRESENTATION Capital Expenditure Combined • Staged Approach: Capital Expenditure Units Stage 1 Stage 2 For personal use only Phases General C$M 142 9 151 Looks to leverage potential cash flows from Mine and Stockpiles C$M 148 30 178 Stage 1 to fund expansion, which could re
Slide 24: Project Economics
For personal use only 2 Project Economics 24 TSX: PMET ASX: PMT OTCQX: PMETF WB: R9GA PMET
Slide 25: NPV Sensitivity to Commodity Price
SHAAKICHIUWAANAAN - PEA PRESENTATION NPV Sensitivity to Commodity Price NPV (C$M) and Spodumene Price (US$/t real SC6, FOB Bécancour) For personal use only $4,971 $4,572 $4,165 $3,756 $2,937 $3,350 $2,521 $2,095 $1,655 $1,207 $749 $241 -$302 -$888 SC5.5 $642 $733 $825 $917 $1,008 $1,100 $1,192 $1,28
Slide 26: EBITDA Sensitivity to Commodity Price
SHAAKICHIUWAANAAN - PEA PRESENTATION EBITDA Sensitivity to Commodity Price Annual EBITDA (C$M) Av Years 4-18 and Spodumene Price (US$/t real SC6, FOB Bécancour) For personal use only $1,324 $1,231 $1,137 $1,043 $856 $950 $762 $669 $575 $481 $388 $294 $200 $107 SC5.5 $642 $733 $825 $917 $1,008 $1,100
Slide 27: Sensitivity Analysis
SHAAKICHIUWAANAAN - PEA PRESENTATION Sensitivity Analysis Project economics remain robust under various scenarios For personal use only After-tax NPV(8%) C$2,937m Discount Rate 2,305 3,763 10% / 6% FX 2,368 3,621 +10% / (10%) Commodity price 2,310 3,553 (10%) / +10% Head Grade 2,389 3,479 (10%) / +1
Slide 28: Indicative Return Profile
SHAAKICHIUWAANAAN - PEA PRESENTATION Indicative Return Profile EBITDA (C$M), Total Capital Costs (C$M) and EBITDA Margin (%)1 For personal use only 2,500 Revenue Total Capital Costs EBITDA EBITDA Margin 80% 65% 70% 2,000 64% 62% 61% 62% 62% 63% 61% 60% 60% 60% 60% 59% 61% 58% 58% 56% 60% 1,500 50% 5
Slide 29: Funding Strategy & Timeline
For personal use only 3 Funding Strategy & Timeline 29 TSX: PMET ASX: PMT OTCQX: PMETF WB: R9GA PMET
Slide 30: Potential Funding Strategy
SHAAKICHIUWAANAAN - PEA PRESENTATION Potential Funding Strategy For personal use only Equity Indicative Funding Strategy (C$m) • Strong inbound interest from a range of tier 1 lithium supply chain participants regarding potential investment, offtake and downstream partnerships Debt / Government Prog
Slide 31: Focus on Execution & Value Creation
SHAAKICHIUWAANAAN - PEA PRESENTATION Focus on Execution & Value Creation Straightforward nature of Project in terms of geology, pegmatite geometry, mining methodology and For personal use only processing, supports advancing towards a Feasibility Study with FID targeted in 2027 Maiden Mineral F
Slide 32: Mining Approval Process
SHAAKICHIUWAANAAN - PEA PRESENTATION Mining Approval Process For personal use only Project Description Environmental Impact Assessment Report • Baseline Data collection (2 years) Impact Benefit Agreement • Project guidelines • Alternatives Assessment (Commitments to Local Communities) • Preferred Pr
Slide 33: Investment Highlights
SHAAKICHIUWAANAAN - PEA PRESENTATION Investment Highlights For personal use only Economic Large Resource Simple Processing Tier 1 Jurisdiction Experienced Potential Mineral Resource is the Simple DMS-only process Canada, and Quebec in Management Supports a possible largest known in the could allow p
Slide 34: Appendix: Corporate Snapshot
For personal use only Appendix Corporate Snapshot
Slide 35: Proven Management Team with a Track Record of Value Creation
PROVEN MANAGEMENT TEAM WITH A TRACK RECORD OF VALUE CREATION Investor Relations For personal use only Ken Brindsen Natacha Alex Eastwood Darren L. Alix Drapack Greg Barfoot Bradley Seward Olivier B.Eng. (Mining), Garoute BEc, LLB Smith P.Eng., MBA, ICD.D M.Eng., MBA Vice President, Caza-Lapointe MAU
Slide 36: Corporate Snapshot
CORPORATE SNAPSHOT Trading Update Shareholder Register For personal use only $20.00 9.0 3% 8.0 4% 3% 0% 5% 7.0 $15.00 19% 15% 36% 6.0 Volume (mm) 5.0 51% C$/sh $10.00 20% 4.0 23% 3.0 21% $5.00 Other 2.0 Australia Canada HNW/family office 1.0 Institutional United States UK $0.00 - Retail Corporate Eu
Slide 37: Corporate Snapshot
CORPORATE SNAPSHOT Trading Update Analyst Coverage For personal use only Pro-Forma Equity Raise CAD (m) Basic Shares Outstanding 141.1 Dilutive Securities 11.1 Fully Diluted Shares 152.2 Market Cap (as of Aug 21st) : $658 Cash (as of June 30th) $102 Potential Cash from FDITM Options & other $6.1 37
Slide 38: Appendix: Notes Peer Comparison
For personal use only Appendix Notes Peer Comparison 38 TSX: PMET ASX: PMT OTCQX: PMETF WB: R9GA PMET
Slide 39: Notes Peer Comparison Information – Resources (Slide 12)
N O T E S P E E R COMPARISON INFORMATION – RESOURCES (SLIDE 12) Reserves (Mt LCE) Resources (Mt LCE) — Inclusive of Reserves Company Project Stage Information Source(s) Proven Probable Total Reserves Measured Indicated Inferred Total Resources AVZ Minerals Manono (75%) Feasibility 2.0 2.0 4.0 4.0 11
Slide 40: Notes Peer Comparison Information – Production Capacity (Slide 11)
N O T E S P E E R COMPARISON INFORMATION – PRODUCTION CAPACITY (SLIDE 11) Name Ticker Project Name Stage Degree of Study Price Assumption (US$/t SC6) Mine Life Information Source - Current Production Capacity Information Source - Planned Expanded Capacity Pilbara Minerals PLS Pilgangoora Production
Slide 41: Patriot Battery Metals
For personal use only PATRIOT BATTERY METALS +1 (604) 279 8709 [email protected] patriotbatterymetals.com
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