Solitario Resources Corp. · AMEX:XPL
Solitario Resources — Investor Presentation (July 2021)
29 slides from Solitario Resources's investor presentation, July 2021
Slide 1: Corporate Presentation July 2021
Creating a Leading Zinc Explorer & Developer Corporate Presentation July 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, stat
Slide 3: Solitario Investment Proposition
Solitario Investment Proposition Major joint venture interests in two high-grade zinc development projects, ~12% Zn Eq. M&I resource = 2.5 billion lbs., Inferred = 2.1 billion lbs. Florida Canyon Zinc Project in Peru is a high- grade development asset held jointly with Nexa Resources S.A Lik Zinc Pr
Slide 4: Why Should You Care About Zinc?
Why Should You Care About Zinc? Stimulus Spending Has the Potential to Create $4 to $6 Trillion in Infrastructure Spending • Infrastructure Buildout Increased Demand for Steel • More Steel Significant Increase in Demand for Zinc Other Uses 40% Galvanization 60% Utilized in die-casting, 40% Utilized
Slide 5: World Class Partners
World Class Partners Partnering with well funded, leading zinc producers reduces costs, risk and capital requirements Florida Canyon Zinc Project held $1.1B Market Cap jointly with Nexa Resources S.A., 4th largest zinc producer with three underground zinc mines and large zinc smelter in Peru. $11.2B
Slide 6: Capital Structure
Capital Structure Current Price US$0.60/C$0.72 Market Cap ~US$35.1 Mil/C$42.1 Mil Shares Avg. Daily Vol. Outstanding 58.4 Mil NYSE/TSX (3month) 718K/7.8K Cash and Options 5.5 Mil Marketable $6.9 Mil Securities Fully Diluted 63.8 Mil Annual Burn Rate (excluding drilling) $1.3 Mil 52-Week High US$1.25
Slide 7: 52-Week Shareholder ROI
52-Week Shareholder ROI NYSE American: XPL | TSX: SLR | SolitarioZinc.com 7
Slide 8: Financially Responsible
Financially Responsible Overhead Disciplined Equity Dilution Disciplined 3-Year Net G&A Reduction of 46%* $1,400,000 $1,200,000 $1,000,000 No Equity Financing from Net G&A Costs $800,000 2011 through 2020! $600,000 $400,000 $200,000 $- 2018 2019 2020 Est *Excluding non-cash option expense NYSE Ameri
Slide 9: Exceptional Resource Growth
Exceptional Resource Growth (Lik and Florida Canyon - Solitario Attributable) 3.00 Measured & Indicated Inferred 2.50 906% 2.00 Billion Lbs. Zinc 49% 1.50 1.00 0.50 - 2017 2021 2017 2021 NYSE American: XPL | TSX: SLR | SolitarioZinc.com 9
Slide 10: Florida Canyon Zinc Project, Peru
Florida Canyon Zinc Project, Peru Joint ventured with Nexa Resources S.A. Advanced exploration project with $70 million in partner investments (526 drill holes; 134,416 meters) Preliminary Economic Assessment demonstrates robust economics Funded to Production 17,000-meter drilling program completed
Slide 11: Florida Canyon Significant Resource Increase
Florida Canyon Significant Resource Increase Inferred zinc-equivalent sulfide resource (“Zn-Eq”) up 105% from 2017 estimate Inferred Zn-Eq sulfide-mixed-oxide resource estimate up 64% from 2017 estimate. Total contained metal Measured & Indicated: 0.65 billion pounds Zn-Eq. Total contained metal – I
Slide 12: Florida Canyon Resource Increase
Florida Canyon Resource Increase 100% Attributed to Sulfide Resource Growth Sulfide - Contained Zinc Equivalent 3.00 • 2019 drilling significantly 105% Growth 2.50 10.9% increased the sulfide ZnEq resource 2.00 Billion Lbs. Zinc • The PEA demonstrates 1.50 that sulfide resources are 11.9% 1.00 ZnEq
Slide 13: Funded to Production
Funded to Production All future costs - drilling, PEA updates, pre-feasibility costs, community relations, environmental expenses, metallurgical studies, engineering & feasibility - will be funded by Nexa to earn its 70%-interest in the project. ü Solitario will not pay back any of these costs. Afte
Slide 14: Exploration Potential
Game Changing Exploration Potential Multiple exploratory targets have been identified immediately south, north, east and west of the Florida Canyon deposit with mineralized outcrops. ü Targets to the south appear to be extensions to the Florida Canyon mineralized corridor. ü Drill testing some of th
Slide 15: Florida Canyon Upside Considerations
Florida Canyon Upside Considerations Deposit(s) will likely grow significantly, as we explore surrounding targets in the area. This will likely increase annual throughput and extend mine life. Metallurgical testing will likely demonstrate higher recoveries (targeting an increase from 80% to 86%) and
Slide 16: Lik Zinc Project, Alaska
Lik Zinc Project, Alaska Lik Regional Map • Mining claims covering 6,075 acres located ~14 miles from Teck’s Red Dog Mine, in mining friendly jurisdication • 50/50 joint venture with Teck; Solitario is the operator Solitario Lik Project Claims • Large tonnage, high-grade, open-pittable Teck Mining C
Slide 17: Lik Project Resource
Lik Project Resource 100% Basis Indicated Inferred 4.54 B Lbs. 1.37 B Lbs. 11.37% ZnEq 11.66% ZnEq Solitario’s 50% Share Indicated Inferred 2.2 B Lbs. 0.69 B Lbs. 11.37% ZnEq 11.66% ZnEq Price assumptions for Zinc-Equivalent grade: Zinc $1.20/lb; Lead $1.00/lb; Silver $16.50/oz. NYSE American: XPL |
Slide 18: Lik Project, Alaska (proximity to Red Dog)
Lik Project, Alaska (proximity to Red Dog) Red Dog Mine Red Dog Mine iles 14 M Lik Project NYSE American: XPL | TSX: SLR | SolitarioZinc.com 18
Slide 19: 2021 Exploration Program
2021 Exploration Program* • 2,000+ feet core drilling program to test new exploration targets, extension of open pit resource and NW Expansion + + stacked ore bodies. + NE Shallow + ü Stacked ore bodies could + provide huge upside Stacked Ore Bodies potential • Surface geochemical + + sampling, indu
Slide 20: Lik PEA Economic Highlights
Lik PEA Economic Highlights (100% Basis) Strongly Leveraged to Zinc Price Zinc Price Sensitivity US$ 1.00/lb. US$ 1.10/lb. US$ 1.20/lb. US$ 1.30/lb. After Tax IRR 14.4 20 25.2 30 After Tax Payback (yrs) 4.5 3.4 2.8 2.4 After Tax NPV @ 8% US$ 99M US$ 195M US$ 291M US$ 386M PRODUCTION MINE LIFE • 234
Slide 21: Lik Typical Mineralized Intersections
Lik Typical Mineralized Intersections Length Hole No. From (m) To (m) Zn (%) Pb (%) Ag (g/t) (m) 5 54.56 78.79 24.23 19.72 6.27 126.5 16 80.16 94.49 14.33 21.67 7.01 230.4 21 129.54 135.33 5.79 7.07 1.88 8.6 24 40.87 50.14 9.27 11.09 1.44 51.1 38 45.90 63.76 17.86 8.13 1.80 48.0 38 70.53 87.75 17.22
Slide 22: Lik Joint Venture Considerations
Lik Joint Venture Considerations • Teck Resources is the third largest zinc producer in the world and operates the largest and most profitable zinc mine in the world - Red Dog. Red Dog is a core asset of Teck. Red Dog is a relatively easy 14-mile ore haul from Lik. • Red Dog production is subject to
Slide 23: Lik Upside Considerations
Lik Upside Considerations • Lik open pit resource has potential to grow by several million tons. • Potential for significant additional mineralization through deeper Lik mineralization exploited by underground mining methods, stacked mineralized horizons below Lik, and the north prospect area. • Pro
Slide 24: Summary
Summary ü Major joint venture interests in two high-grade zinc development projects, ~12% Zn Eq. M&I resource = 2.5 billion lbs., Inferred = 2.1 billion lbs. ü Florida Canyon Zinc Project in Peru is a high- grade development asset held jointly with Nexa Resources S.A ü Lik Zinc Project is a large-to
Slide 25: Contact Information
Contact Information Christopher Herald, President and CEO 4251 Kipling St., Suite 390 Wheat Ridge, Colorado 80033 303-534-1030 [email protected] Investor Relations Valerie Kimball Director, Investor Relations 720-933-1150 800-229-6827 [email protected] Transfer Agent Computershare Investor Se
Slide 26: Appendices
Lik Zinc Project, Alaska Florida Canyon Zinc Project, Peru Appendices NYSE American: XPL | TSX: SLR | SolitarioZinc.com 26
Slide 27: Management
Management § Christopher Herald, President, CEO & Director § Mr. Herald has served as Chief Executive Officer since June 1999, President since 1993, and a director of Solitario since 1992. Prior to its acquisition by Kinross Gold Corp., Mr. Herald also served in various capacities for Crown Resource
Slide 28: Board of Directors
Board of Directors § Brian Labadie, Chairman of the Board - Mr. Labadie has been a director of Solitario since June 2006 and Chairman since March of 2009. Mr. Labadie has in over forty years-experience in the mining industry including formal training and experience as a mining engineer including dev
Slide 29: Majors Acquire Undervalued Junior Zinc Assets
Majors Acquire Undervalued Junior Zinc Assets Buenaventura Mining Invests in Tinka Resources – December 2019 • Buenaventura Mining made an equity investment of C$16 million in Tinka Resources to acquire a 19.9% interest in Tinka (Ayawilca Zinc Project, Peru); Buenaventura paid an 83% premium to Tink
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