Savannah Resources Plc · LSE:SAV
Savannah Resources — Investor Presentation (March 2020)
26 slides from Savannah Resources's investor presentation, March 2020
Slide 1: Europe's Leading Conventional Lithium Project
Europe’s Leading Conventional A N E N E R G Y M E TA L S G R O U P Lithium Project SAVANNAH RESOURCES PLC CORPORATE PRESENTATION – March 2020
Slide 2: Disclaimer
DISCLAIMER The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Corporate Snapshot
C O R P O R AT E S N A P S H O T KEY DATA SHAREHOLDER ANALYSISii MARKETS AIM, FWB, SWB TICKER – ALL MARKETS SAV SHARE PRICEi 1.2p MARKET CAPi £15.6m SHARES IN ISSUEi 1,297,459,820 CASHii £3.5m (£0 debt) OPTIONS/WARRANTSi 74,874,428 AVERAGE EXERCISE PRICE 6.7p RELATIVE SHARE PRICE PERFORMANCEiii Alit
Slide 4: Status Update - Progress Made in 2019 & 1Q 2020
S TAT U S U P D AT E - P R O G R E S S M A D E I N 2 0 1 9 & 1 Q 2 0 2 0 Mina do Barroso, Portugal – Lithium: Assumed sole ownership – acquired the residual 25% stake in an all share transaction which valued the project at c.US$48m in Jun-19 Commercialisation advanced – Negotiating lithium & co-
Slide 5: Status Update - Mina do Barroso
S TAT U S U P D AT E - M I N A D O B A R R O S O Commercialisation progressing well Lithium offtake: Currently in advanced offtake negotiations for majority of spodumene concentrate produced and working towards definitive agreement (significant achievement against challenging lithium market back
Slide 6: Status Update - The Li Market in 2019 & Q1 2020
S TAT U S U P D AT E - T H E L I M A R K E T 2 0 1 9 & Q 1 2 0 Positive: • 2019 Li chemical demand +14.6% (+41kt LCE) y-o-y at 305kt LCEi • US$17.4bn estimated funding secured by e-mobility companies in 2019ii • 2019 Global EV sales +9% y-o-y to 2.26m (2.5% market share vs. 2.2% in 2018)iii • Global
Slide 7: Status Update - Long Term Li Market Outlook
S TAT U S U P D AT E - L O N G T E R M L I M A R K E T O U T L O O K ii, iii Lithium Chemical Supply/Demand & Spodumene price forecast Substantial long term growth expected in Li demand: Global EV sales forecast to rise from 2.3m in 2019 to c.10m in 2025i driving a 3x increase in total lithium che
Slide 8: Status Update - European Lithium Market
S TAT U S U P D AT E - E U R O P E A N L I T H I U M M A R K E T i • c.70% CAGR in EV sales 2010-19, and major EV growth centre in 2019 with 590k EVs sold (3.4% mkt share)i • The EU’s European Battery Alliance launched its Business Investment Platform (BIP) in 2019 to accelerate investments in the L
Slide 9: EU EV Market - Needs Its Own LIB Supply Chain
E U E V M A R K E T - N E E D S I T S O W N L I B S U P P LY C H A I N Auto LIB Demand 2020: c.46 GWhi 2025: c.176 GWhi 2030: c.215 GWhi LIB plant Capacity 2019: c.18 GWhii Key: 2025: >198 GWhiii Potential SAV 2030: >274 GWhiii customers End users Independent suppliers of battery Li cell/battery/pac
Slide 10: Mina do Barroso - Lithium Project Overview
MINA DO BARROSO - LITHIUM PROJECT OVERVIEW Source: Company Photograph Source: Company *Pending exploration licence applications Mina do Barroso is one of four highly Savannah acquired a 75% interest in the In June 2019 Savannah exercised an prospective lithium tenements covering Portuguese Li portfo
Slide 11: Mina do Barroso - Key Deposits and Targets
M I N A D O B A R R O S O - K E Y D E P O S I T S A N D TA R G E T S Mina do Barroso features multiple lithium deposits across the 30 year c-100 Mining Leasei Pegmatite quarrying taking place on Block A Source: Company photograph The acquisition of the additional Aldeia Mining Lease Application grou
Slide 12: Mina do Barroso - Conceptual Site Layout
M I N A D O B A R R O S O - C O N C E P T U A L S I T E L AYO U T Conceptual plant design 12
Slide 13: Mina do Barroso - Good Government Support
MINA DO BARROSO – GOOD GOVERNMENT SUPPORT Above: Portuguese Secretary of State for Energy, João Galamba (3rd from left) visiting the Mina do Barroso project in 2019 Right: Savannah receiving the UK Department of International Trade’s Overseas Direct Investment Award for Portugal, 2019 13
Slide 14: Project Timeline - Mina do Barroso
PROJECT TIMELINE – MINA DO BARROSO 2019 Targets achieved Acquisition of 2020 Targets 2018 Targets achieved outstanding 25% EIA & Mine Plan 3 increases made to stake in project to submission & JORC Resource become 100% approval owner Strategic Positive Scoping 4th and 5th lithium partners
Slide 15: Additional Upside - Mozambique
ADDITIONAL UPSIDE - MOZAMBIQUE M U TA M B A H E AV Y M I N E R A L S A N D S World class project with significant scale being developed in partnership with Rio Tinto One of the largest undeveloped, globally significant, mineral sands projects Three, 25-year, mining concessions awarded in Dec-19
Slide 16: Mozambique - Mutamba in Numbers
M O Z A M B I Q U E - M U TA M B A I N N U M B E R S M AY 2 0 1 7 S C O P I N G S T U D Y BY T Z M I S H O W S P O T E N T I A L F O R A L O N G L I F E , R O B U S T P R O J E C T 30 years 451Mt at 6% THM 100% Basis Life of mine (LOM) Mining inventory US$4.23i billion US$152 million Initial CAPEX L
Slide 17: Additional Upside - Oman
ADDITIONAL UPSIDE - OMAN B L O C K 4 & 5 C O P P E R P R O J E C T S – S T R AT E G I C R E V I E W U N D E R W AY Majority stake in two large exploration blocks on the copper rich Semail ophiolite belt Two low capex, high-grade copper mines planned to initiate cash flow Central processing plant
Slide 18: The Investment Case - Europe's Leading Conventional Lithium Project
THE INVESTMENT CASE - EUROPE’S LEADING CONVENTIONAL LITHIUM PROJECT Owner/operator of the 100% owned Mina do Barroso Lithium Project in Portugal - Western Europe’s largest spodumene lithium discovery…and growing! Strategically located close to the EU’s fast-growing lithium ion battery production
Slide 19: Appendix
APPENDIX Source: Company Photograph 19
Slide 20: The Executive Team
THE EXECUTIVE TEAM DAVID ARCHER - CEO Over 30 years’ mining experience Outstanding track record of successful public company development – resources, telecommunications, oil & gas CEO of ASX quoted Savage Resources - developed from small IPO to a major, mid-tier mining group with a market cap
Slide 21: Mina do Barroso - The Project in Numbers
MINA DO BARROSO - THE PROJECT IN NUMBERSi The June 2018 Scoping Study by Hatch demonstrated Mina do Barroso’s economic viability Operating parameters and assumptions Financial & economic outcomes Mineable open pit resource 14.4Mt @ 1.07% Li2O Revenue (LoM; Avg pa) ii US$1,555m; US$140m LoM Stripping
Slide 22: Mina do Barroso - Co-Product Credits
MINA DO BARROSO - CO-PRODUCT CREDITS Testing has shown tailings stream from the lithium concentrator has significant commercial value + Co-products from the Li concentrator tail include: High purity feldspar & quartz and a bulk, mixed feldspar-quartz stream + Commercial test work has shown that: + T
Slide 23: Mina do Barroso - The Li Resource Has Grown Rapidly
M I N A D O B A R R O S O – THE LI RESOURCE HAS GROWN RAPIDLY 50 Mineral Resource Exploration Target Range 45 Potential Project Mineral Inventory Range 40 35 30 (Mt) 25 20 15 10 5 May Dec Feb May Sep Apr May 2017 2017 2018 2018 2018 2019 2019 Cautionary Statement: The potential quantity and grade of
Slide 24: Mina do Barroso - Large Resource + Growth Potential
M I N A D O B A R R O S O - LARGE RESOURCE + GROWTH POTENTIAL Spodumene is the primary Li2O bearing mineral, with trace or low amounts (~1%) of Li2O also present within eucryptite and petalite, both lithium aluminosilicate minerals, similar in structure to spodumene. Trace epidolite (lithium beari
Slide 25: Lithium Mining in Portugal - The Industry Exists
LITHIUM MINING IN PORTUGAL - THE INDUSTRY EXISTS - AND MOVING TO 5TH PLACE Portugal is already the world’s 10th largest lithium miner in 2018, and the largest in Europe 2018 Mine Like Australia, lithium production in Portugal is solely from Rank Country production hardrock, and principally pegmati
Slide 26: Savannah
SAVANNAH www.savannahresources.com [email protected] @SavannahRes
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