Capital Metals Plc · LSE:CMET
Capital Metals — Investor Presentation (May 2022)
24 slides from Capital Metals's investor presentation, May 2022
Slide 1: Entering Development Phase on The Eastern Minerals Project, Sri Lanka
C A P I T A L ME T A L S Entering Development Phase on The Eastern Minerals Project, Sri Lanka High Grade Mineral Sands Project with Exceptional Economics MAY 2022
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation (the “Presentation”) has been prepared by No undertaking, representation, warranty or other assurance, the securities of the Company within the meaning of the Capital Metals Plc (“CMET” or “The Company”) express or implied, is made or given
Slide 3: Overview - Eastern Minerals Project
Overview - Eastern Minerals Project High grade mineral sands in Sri Lanka NEAR TERM PRODUCTION AND PATHWAY TO EARLY CASHFLOW Over 4 years of development and studies to date with four stage construction strategy Jaffna AMONG HIGHEST GRADE IN GLOBAL PEER GROUP 17.6% Total Heavy Minerals (THM) incl ilm
Slide 4: Exceptional Economics
Exceptional Economics Base case economics using long term price assumptions well below current prices and without taking into account potential resource extensions. NPV8 IRR NET PROFIT (post tax) (post tax) (over 10 years) US$155m 56% US$262m CAPEX AVERAGE PRODUCTION OPERATING COST (to positive cash
Slide 5: Corporate
Corporate AT A GLANCE SIGNIFICANT SHAREHOLDERS Market Cap GBP £13m* Brent Holdings Limited (Family office) 13.11% Share Price 7 p* Roman Resources Management Pty Ltd 7.63% Shares on Issue 189,103,432 Stanton Investments Ltd 6.70% 12 Month Range 6.5p – 15.96p KL Kepong International Limited 5.92% Chul
Slide 6: A Team To Deliver
A Team To Deliver International and local team with proven experience in mineral sands projects development Greg Martyr / Non- Executive Chairman Michael Frayne / CEO + Executive Director +25 years’ resource investment banking experience +25 years’ technical and commercial experience in resource sec
Slide 7: Roadmap to Production – Key Milestones
Roadmap to Production – Key Milestones Resource upgrade, drilling and studies – significant potential share price catalysts INITIAL DRILL RESULTS Confirmed higher OFFTAKE AGREEMENTS ENGINEERING grade and potential DESIGN Strategic offtakers for resource expansion Simple: gravity significantly unders
Slide 8: Eastern Minerals Project
Eastern Minerals Project High grade mineral sands High Grade JORC Resource Near Term Production Exploration Upside Stage 1 - mining rate of 0.55Mtpa to Mineralisation continues at depth 17.2mt at 17.6% THM (Total Heavy produce Heavy Mineral Concentrate Minerals) Drill intersections incl. Stage 2 - S
Slide 9: Mineral Sands Market
Mineral Sands Market Favourable product split Titanium Dioxide (TiO2) GDP Growth % of VALUE* TiO2 demand grows in line with GDP growth Garnet 12% Pigment accounts for 90% of demand Zircon 28% Ilmenite 1 Zircon 22 Ilmenite 41% Rutile 19% Pigment manufacture, titanium slag Opacifier in ceramic glazes,
Slide 10: Mineral Resource
Mineral Resource Good spread of revenues across product range Current resource only first 3m from surface 100% of project JORC Resource Resource THM THM ‘000t 5% Category ‘000t % THM cut-off High Grade of 17.6% THM Measured 5,819 19.9 1,159 Indicated 8,602 16.6 1,432 Inferred 2,791 16.0 446 2018 dril
Slide 11: Project Comparison – Grades and Slimes
Project Comparison – Grades and Slimes* Valuable Heavy Minerals % TiO2 Grade - % 16 12 14 10 12 10 8 8 6 6 4 4 2 2 0 TSL - SC STA - TZ BSE - KW STA STA - WA I-EB CML IMA I-MB KMR MRC BSE - MG I- SR 0 I-SL SFX DRX JAY I-PB ATR SAV I-AS ILU BSE TSL STA BSE - KW STA - TZ MRC I- SR STA - WA TSL - SC I-S
Slide 12: Extraction Process
Extraction Process Low CAPEX No Blasting and Continuous Rehabilitation Environmentally Responsible Mining STAGE 1 MINERAL SEPARATION PLANT (DRY WET PLANT - MINE SITE Heavy Mineral PLANT - OLUVIL PORT) Ore Mining Mine Feed Unit Concentrate (HMC) Silica sand returned for restoration Magnetic (HMC) Sto
Slide 13: Mineral Processing Plants – Wet Concentrator Plant (Stage 1)
Mineral Processing Plants – Simple Mining Four stage development process over 3.5 years, minimising CAPEX to cash flow positive WET CONCENTRATOR PLANT – MINE SITE (Stage 1) Located adjacent to the mine site Process: Clean silica sand returned to mine cell area Mine sand slurry spirals by gravity – n
Slide 14: Mineral Processing Plants – Mineral Separation Plant (Stage 2)
Mineral Processing Plants – Simple Mining MINERAL SEPARATION PLANT – OLUVIL PORT (Stage 2) Mineral Separation Plant proposed to be located at Oluvil Port Product separation into ilmenite, rutile, garnet and zircon using various techniques: Electrostatic Magnetic Particle size differences Additional
Slide 15: Regional Land Position Around Initial Mining Area
Regional Land Position Around Initial Mining Area Industrial Mining Licence (IML) Exploration Licence EL430 6 IML applications lodged New EL granted to extend the Project by 12 km to the north, Issue of first IML expected soon encompassing the Oluvil Port IMLs to be sought as per mine plan Exploratio
Slide 16: Oluvil Port and Infrastructure
Oluvil Port and Infrastructure Potential availability of the port may reduce cost of operations Oluvil Port 32km by road from wet plant at mine OLUVIL PORT Proposed Location for Unused commercial port – construction completed in 2013 Mineral Separation Plant Discussions with port authorities for por
Slide 17: ESG – Community
ESG – Community Assisting the community during Partnering local education and uplifting difficult times standards in the community Community engagement is the key to permitting International and local Large local workforce when consultants operations commence, opportunity to upskill, new technology M
Slide 18: ESG - Environment
ESG - Environment Environmental Impact Proposed 8 Week Use of recognised rehabilitation Assessment (EIA) + Studies Rehabilitation Cycles methods with local staff ensuring completed over 4 years skills transfer and sustainability Continuous monitoring of Progressive rehabilitation rehabilitated mine
Slide 19: Investment Case
Investment Case Mineral sands project in Sri Lanka A Geologically Advantageous Experienced Deposit Leadership Team Highly experienced Board and Very high 17.6% THM grades in-country team to bring the mine into production Exceptional Economics ESG and Infrastructure Close to port, existing PEA confir
Slide 20: x< Q = Lu) a. a. <
x< Q = Lu) a. a. <
Slide 21: High Grade for High Value
High Grade for High Value* Value per Resource Tonne Sand - US$/t* 70 60 50 Capital Metals in Situ Resource Value of $ 40 per tonne* 40 ( Before mining and processing ) 30 20 10 0 I-MB CML IMA ILU ATR I-EB SFX I-SL I-PB I- SR JAY DRX BSE- I-AS BSE STA-TZTSL-SC MRC TSL KMR SAV BSE - STA STA- MG KW WA
Slide 22: Sri Lanka
Sri Lanka Strategic Location in South Asia Sri Lanka is situated strategically in South Asia at the China crossroads of major shipping routes to South Asia, the Far East and the continents of Europe and America, making the country a convenient port of call for shipping lines and airfreight services.
Slide 23: Bulk Sample Test Work
Bulk Sample Test Work 4 Tons Bulk Sample Mulliyadi sample sites Downer (Mineral Technologies) facility in QLD Australia Clean sand with very low slimes and oversize Exceptional Spiral Results 90% Total Heavy Minerals >98% recovery of zircon, TiO2 and monazite minerals on two-stage spiral circuit Bul
Slide 24: Michael Frayne / CEO
For any information or inquiries Michael Frayne / CEO [email protected] +44 20 8142 3648 CAPITAL M ETALS