Prospect Resources Ltd. · ASX:PSC
Prospect Resources — Junior Indaba 2019
24 slides from Prospect Resources's conference presentation, Jun 5, 2019
Slide 1: Arcadia A Game Changing Lithium Project
For personal use only Arcadia A Game Changing Lithium Project Junior Indaba Sam Hosack, Managing Director | 5 June 2019
Slide 2: Disclaimer
Disclaimer 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 its respective employees, agents or consultan
Slide 3: Overview & Highlights
Overview & Highlights Prospect Resources is Rapidly Developing the Arcadia Lithium Project Strategically + Flagship project is the 87%1 owned Arcadia Lithium Project located on the outskirts of Harare in For personal use only Focused Zimbabwe + Only listed lithium company that will produce both spod
Slide 4: Lithium, A Strategic Mineral
For personal use only Lithium, A Strategic Mineral
Slide 5: Lithium Market
Lithium Market Lithium Market Arcadia’s Two Primary Products Allow Us to Target 100% of Lithium End Users For personal use only 54% 25% 21% EV & Energy Glass & Industrial Storage Ceramics The rechargeable battery sector is Prospect’s low iron petalite Lithium has several industrial uses expected to
Slide 6: Historical supply of Lithium
Lithium Market Historical supply of Lithium For personal use only The global lithium market has historically been driven by use in the Glass & Ceramics, and industrial alloys and greases With the electric vehicle and energy storage revolution, demand has significantly increased and driven further in
Slide 7: Outstanding Lithium Demand Fundamentals
M a r k e t LPi tohsiiut m i o nM oa n r k Se ct a l e Outstanding Lithium Demand Fundamentals For personal use only Demand expected to more than triple over the next 6 years* 256.6kt(30.6%) Supply Deficit for fit for purpose lithium in 2020* By 2024, the supply deficit is expected to total the enti
Slide 8: Arcadia's Competitive Advantages
For personal use only Arcadia’s Competitive Advantages
Slide 9: Project Summary
Project Summary Africa’s Flagship Lithium Project - Global Top 10 Hard Rock Lithium Asset For personal use only Mine Hard Rock, Open Pit Ore Reserve 26.9Mt @ 1.31% Li2O Total Mineral 43.2Mt @ 1.41% Li2O (1% Cut off) Resources Strip Ratio 3.0:1 (including pre-strip) Products Spodumene (6% Li2O), Peta
Slide 10: Process Flowsheet: Conventional Hard Rock Processing
Process Flowsheet Conventional Hard Rock Processing For personal use only P eta lite R e c o v e r y 1 (Gravity) Average production of 216,000 tonnes Open Pit p.a. of high grade, low iron petalite ROM Ore Feed Crushing Stockpile HPGR concentrate (>4% Li2O) A r c a d i a Mine 2 Tantalum Recovery (Low
Slide 11: Economic Potential of One of the World's Leading Lithium Projects
Competitive Advantages Economic Potential of One of the World’s Leading Lithium Projects Capital Intensity 20,000 For personal use only Low CAPEX 15,000 Capital US$ 163M1 Intensity 10,000 5,000 (US$/tpa LCE)0 Piedmont, PLL Cinovec, EMH Pakeagama Lake, FL Mt Cattlin, GXY Manono, AVZ Kathleen Valley,
Slide 12: Positioned in the Large-scale and High Grade Category
C o m p ePtri o t ijveec tASduvm a nmt a rgye s Positioned in the Large-scale and High Grade Category for Global Lithium Hard Rock Assets Production Target Per Annum (kt) Grade Li2O eq. (2%) For personal use only 0 200 400 600 800 1,000 1,200 1,400 34% of Prospect’s annual average 0 0.5 1.0 1.5 2.0
Slide 13: Current Lithium Supply Chain
C o m p eSection t i t i v e AOne dvantages Current Lithium Supply Chain For personal use only Material Fu rt h er Co m p o n en t Finished Glass & Ceramics Pro d u cer Processing Co m p o n en t Tiles & Sanitary Cook-tops & Stoves Ware Petalite Concentrate >4% Li 2O Ceramics GlassCeramics Glass Met
Slide 14: Prospect's Market Diversification Advantage
C o m p eSection t i t i v e AOne dvantages Prospect’s Market Diversification Advantage Prospect’s For personal use only Material Fu rt h er Co m p o n en t Finished Glass & Ceramics Market Pro d u cer Processing Co m p o n en t Diversification Petalite Concentrate >4% Li 2O Ceramics Tiles & Sanitar
Slide 15: Established Infrastructure
Competitive Advantages Established Infrastructure For personal use only 35km from Zimbabwe’s capital city, Harare, close proximity to skilled & semi-skilled labour Beira 580km from Beira port by heavy haulage capable Beira Port roads 33KV interconnection with secured 20MVA capacity ( 15km from site)
Slide 16: Supportive Government
Com G op ve et irtni vmee nAtd v a n t a g e s Supportive Government For personal use only • Achieved National Project status • Secured Special Economic Zone status • Presidential opening of Arcadia at ground-breaking ceremony • 1 of 3 projects in the mining sector to be included in a Rapid Results
Slide 17: Contact
Contact Media For personal use only [email protected] Investors Nick Rathjen General Manager, Corporate Affairs [email protected] FOLLOW US 17
Slide 18: Additional Information
For personal use only Additional Information
Slide 19: Board of Directors
Appendix 1 Board of Directors For personal use only Hugh Warner Sam Hosack Zed Rusike Executive Chairman Managing Director Non-Executive Director A third generation Zimbabwean A qualified accountant and resident A capital markets professional with with over 15 years’ experience in of Zimbabwe. 25+ y
Slide 20: Management Team
Appendix 2 Management Team For personal use only Chris Hilbrands Mike Kitney Roger Tyler Consultant, Metallurgy, Process Chief Geologist Chief Financial Officer Design Mr Tyler has worked for over 33 Mr Hilbrands has worked as Chief years’ as a geologist and resource Mr Kitney is a practising metall
Slide 21: Corporate Summary
Appendix 3 Corporate Summary For personal use only ASX Code PSC Top Shareholders * % Shares Outstanding 2,046m Citicorp Nominees 12.94 Sinomine International Exploration 8.15 Market Capitalisation A$ 35m MBM Capital Partners 6.90 @30/05/2019 BNP Paribas Nominees 5.55 Current Share Price 1.7c Armoure
Slide 22: Arcadia DFS Financial Evaluation
Appendix 4 Arcadia DFS Financial Evaluation 1 Financial Summary Units Value Capital and Operating Costs Units Value For personal use only Average Annual Free Cashflow from operations US$M 104 Average life of mine cash operating cost (FOB) 1 US$/t conc 285 (pre-tax) Average Annual Free Cashflow from
Slide 23: Ore Reserve and Mineral Resource
Appendix 5 Ore Reserve and Mineral Resource For personal use only Arcadia Lithium Deposit Ore Reserve Estimate1 Category Tonnes Li2O (%) Ta2O5 (ppm) Li2O (t) Proven 8,000,000 1.36% 128 109,000 Probable 18,900,000 1.28% 127 242,000 TOTAL 26,900,000 1.31% 128 351,000 Arcadia JORC Mineral Resources Sta
Slide 24: Synopsis, Arcadia Lithium Project
A p p e n d i xA6p p e n d i x 5 Synopsis, Arcadia Lithium Project 2016 In June 2016, Prospect acquired a 70% interest in Arcadia. For personal use only In 2017, Arcadia was granted National Project Status by the Zimbabwe government. Significant mineral resources upgrades at the high grade Arcadia l