Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Lithium & Battery Metals Conference (March 2019)
20 slides from Prospect Resources's conference presentation, Mar 20, 2019
Slide 1: Arcadia: Globally unique lithium project
For personal use only Arcadia Globally unique lithium project Lithium & Battery Metals Conference ASX: PSC Sam Hosack, Managing Director I 20 March 2019
Slide 2: Disclaimer
For personal use only Disclaimer 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 its respective employees, agents or consultan
Slide 3: Agenda
For personal use only COMPANY • Overview Fibreglass Alloys • Geology and Mining Project • Processing • Infrastructure and Logistics • Lithium End Users Market • Lithium Supply Chain • Lithium Market Environment • Zimbabwe EV Energy Storage Activity • Timetable Glass-Ceramics Consumer Electronics 3 3
Slide 4: Overview
Overview For personal use only Emerging Lithium and Battery Minerals Company _____________________ Strategically Focused • Flagship project is the 87%1 owned Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe Globally Unique • Only listed lithium producer that will produce both S
Slide 5: Geology & Mining
For personal use only Geology & Mining _____________________ Total Ore Reserve1 Li2O Proven Ore Reserve 8Mt@ 1.36% 26.9Mt @1.31% Li2O Li2O Probable Ore Reserve 18.9Mt@ 1.28% Total Mineral Resource2 43.2Mt @1.41% Li2O Li2O Measured Resource 10.2Mt@ 1.45% Conventional open pit mine Strip ratio 3:1 (In
Slide 6: Conventional Hard Rock Processing
For personal use only Conventional Hard Rock Processing Strong lithium recovery, product to industry specifications _____________________ Spodumene Recovery Tantalum Recovery Petalite Recovery (Flotation) (Low/High intensity magnetic) (Gravity) Average production of 212,000 tonnes Average Production
Slide 7: Infrastructure and Logistics
For personal use only Infrastructure and Logistics Arcadia’s geographic location provides strategic advantages ____________________ Access to critical infrastructure Beira • 33KVA interconnection with secured capacity (<3km’s from site) Beira • Surplus groundwater available • Close proximity to skil
Slide 8: Lithium Market End Users
For personal use only Lithium Market End Users Arcadia’s products are suitable for multiple end use industries _____________________ Other Air Treatment Primary Batteries Polymers 7% EV & Energy Storage 54% 2% The rechargeable battery sector is 2% expected to increasingly dominate lithium Industrial
Slide 9: Lithium Supply Chain
Lithium Supply Chain For personal use only Diversified premium products gaining exposure to both mature and growing markets _____________________ 9
Slide 10: Lithium Market: Supply and Demand
For personal use only Lithium Market Supply and Demand _____________________ 256.6kt (30.6%) • Lithium Demand is expected to grow at 22% Supply Deficit p.a. until 2025. (This equates to demand more than tripling over the next 6 years) • The supply/demand for fit-for-purpose lithium is expected to mo
Slide 11: Zimbabwe's Economic Recovery
For personal use only Zimbabwe’s Economic Recovery Established mining jurisdiction and supportive government _____________________ New government that is “Open for business” Government support in place: • US$10m Export Finance Facility from Reserve Bank of Zimbabwe • Achieved National Project status
Slide 12: Project Implementation
For personal use only Project Implementation Path forward to financing, development and production _____________________ 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D DFS FUNDING UPDATE REGULATORY APPROVALS MINING CONTRACTO
Slide 13: Investment Highlights
For personal use only Investment Highlights Positioned to lead the next generation of Lithium producers _____________________ NPV ORE RESERVE MINERAL RESOURCE US$533M AU$750M 26.9Mt @1.31% Li2O 43.2Mt @1.41% Li2O LOW AVERAGE OPERATING MINE LIFE ANNUAL COST EBITDA US$278/t AU$392/t 12 Years US$109M A
Slide 14: Contact Us
For personal use only FOLLOW US CONTACT US Investors Media Nick Rathjen [email protected] General Manager, Corporate Affairs [email protected] 14
Slide 15: Appendix A - Prospect Resources Overview
For personal use only Appendix A - Prospect Resources Overview Corporate Summary _____________________ Market Data Share Price Graph Market Announcements Shares Outstanding 2,046m 2019 05 Mar Arcadia project economics update Market Capitalisation (A$) @19/03/2019 35m 28 Feb Arcadia approved for Spec
Slide 16: Appendix B - Board of Directors
For personal use only Appendix B - Board of Directors _____________________ _____________________ Hugh Warner B.Eco Sam Hosack B.Eng (Hon), MBA, GAICD Duncan (Harry) Greaves B.Sc (Agriculture) Executive Chairman Managing Director Executive Director • Mr Warner is a capital markets • Mr Hosack is a t
Slide 17: Appendix C - Arcadia DFS Financial Evaluation
For personal use only Appendix C - Arcadia DFS Financial Evaluation 1 Outcomes from the Definitive Feasibility Study position the company to move into development _____________________ Operation Parameters Units Value Financial Summary Units Value Life of mine modelled (All open pit) Years 12 Averag
Slide 18: Appendix D - LoM Financials and Capital Expenditure
For personal use only Appendix D - LoM Financials and Capital Expenditure1 Strong lithium and tantalum recovery to industry specifications _____________________ Life of Mine Financials US$M Capital Costs Summary US$M Life of Mine Revenue (excl. Ta credits) 2,934 Mine development cost 5.00 Operating
Slide 19: Appendix E – Offtake Partner
For personal use only Appendix E – Offtake Partner Sinomine Resource Group _____________________ Offtake Agreement Details • Offtake Agreement for approx. 30% of annual production over mines first 7 year’s: • 40,000tpa of Spodumene Concentrate (6% Li 2O) or approx. 19% of the LOM average annual prod
Slide 20: Appendix F – Ore Reserve and Mineral Resource
For personal use only Appendix F – Ore Reserve and Mineral Resource _____________ Arcadia Lithium Deposit Ore Reserve Estimate1 Category Tonnes Li2O (%) Ta2O5 (ppm) Li2O (t) Ta2O5 (Mlbs) Proven 8,000,000 1.36% 128 109,000 2.2 Probable 18,900,000 1.28% 127 242,000 5.3 TOTAL 26,900,000 1.31% 128 351,0
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