Prospect Resources Ltd. · ASX:PSC
Prospect Resources — 121 Africa Conference 2021
22 slides from Prospect Resources's conference presentation, Feb 1, 2021
Slide 1: ASX Announcement: Corporate Presentation February 2021
ASX ANNOUNCEMENT 1 February 2021 ASX.PSC FRA.5E8 XX November 2018 Corporate Presentation February 2021 For personal use only African lithium developer, Prospect Resources Limited (ASX: PSC, FRA:5EB) is pleased to advice that Nicholas Rathjen, Head of Corporate Development, will be presenting at the
Slide 2: Low Cost, High Purity Lithium
For personal use only LOW COST, HIGH PURITY LITHIUM 121 Africa February 2021 Nick Rathjen– Head of Corporate Development 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: Corporate Overview
Corporate Overview Corporate Summary Equity Listings ASX: PSC Low cost, high quality lithium development FRA: 5E8 Shares Outstanding (29/01/2021) 332m For personal use only Shares (F/D) 344m Share Price (29/01/2021) A$0.17 Top 10 largest hard rock lithium asset globally – with Market Capitalisation
Slide 5: 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 6: Arcadia Lithium Project
Arcadia Lithium Project Direct access to all essential services and infrastructure For personal use only • Operating in an established mining jurisdiction with over 100 years of mining history • Zimbabwe has the 2nd largest platinum and chrome deposits in the world and is the 5th largest producer of
Slide 7: Arcadia - Mining
Arcadia - Mining Strong project economics validating a transition to development For personal use only Ore Reserve Nov 2019 Category Tonnes (Mt) Li2O (%) Ta2O5 (ppm) Li2O (kt) Contained Ta2O5 • Open pit, near surface mining (Mlbs) Proved 11.3 1.28% 114 144 2.8 Probable 26.1 1.20% 124 314 7.2 • Low s
Slide 8: 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 9: 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 $450 US
Slide 10: Strong cashflow, delivering rapid payback
Arcadia Project Economics Strong cashflow, delivering rapid payback For personal use only 36 Months US$M Revenue and Net Cashflow (After Tax) 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 Production Commence 200
Slide 11: 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$10m equity investment in Prospe
Slide 12: Attractive Upside Valuation compared to Peers
Attractive Upside Valuation compared to Peers Peer group comprises advanced greenfield hard rock lithium projects For personal use only EV / Att. Reserve1 EV / % of Att. NPV (after-tax)1 2,000 350% 1,867 316% 1,800 300% 1,600 1,400 250% % of Att. NPV (after-tax) 1,200 200% A$ / LCE 1,000 150% 800 60
Slide 13: 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 EV target, it needs: • Half of the world’s 20
Slide 14: Lithium Market: market in deficit in 2021
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 15: Clear pathway to production
Clear pathway to production Staged development, producing of high purity products For personal use only ✓ Production of high purity samples for customers H1 CY2021 PILOT PLANT ✓ Optimise flowsheet and design for FEED ✓ Supplying samples to strategic corporates and potential offtake partners for thei
Slide 16: 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 17: 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 18: Appendix
For personal use only APPENDIX
Slide 19: Project parameters and assumptions
Appendix 1 Project parameters and assumptions For personal use only Mining and Production Cost Assumptions (US$/t) Processing Plant Size 2.4Mtpa Mining 97 Ore Reserve 37.4Mt Processing (inclusive crushing) 136 - Li2O grade (diluted) 1.22% - Ta2O5 grade (diluted) 121ppm General administration and sel
Slide 20: LoM Financials and Capital Expenditure
Appendix 2 LoM Financials and Capital Expenditure Life of Mine Financials Capital Cost Summary (US$ 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 21: 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 (29/01/2021) 56 535 346 949 705 Cash (A$m) 5.5 8.3 4.5 95.9 16.4 EV(A$m) 50.5 526.7 341.5
Slide 22: Mineral Resource Statement
Appendix 4 Mineral Resource Statement For personal use only Arcadia High Grade JORC Mineral Resource Statement- 1% Li2O Cut-off1 Category Tonnes Li2O % Ta2O5 ppm Li2O Tonnes Ta2O5 Mlbs Measured 10,200,000 1.45% 132 148,100 3.0 Indicated 27,200,000 1.39% 119 378,400 7.1 Inferred 5,800,000 1.45% 97 84