Solaris Resources (TSX:SLS) — Investor Presentation

0:03 Good afternoon, and welcome to the SOLARIS RESOURCES INC investor presentation. Throughout this recorded meeting, investors will be in listen only mode. Questions are encouraged. It could be submitted anytime by the q and a tab situated on the right hand corner of your screen. Just simply type in your question and press send. Company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Matthew Rollinson, CEO, and Richard Hughes, CFO.

0:34 Good afternoon. Good afternoon, everybody, and welcome to the presentation today. I'm Matthew Roninson, CEO and President of SOLARIS RESOURCES. By professional background, I'm a chartered accountant and MBA, and over the past twelve years I've been with the Glencore Group with my most recent position being Head of Business Development for copper. Certainly understand the world of development assets and the Wurrinsa project I've closely tracked for the past four years. It certainly is stand out in terms of what it looks like and respects its Tier one, its global scale, its near term multi generational copper porphyry deposits with no attachments to a major. And that is fundamental to any equity investor. Additionally, from a strategic perspective, we are transitioning the company from an exploration play to a mid cap development mining company in exploration phase.

1:30 We're not giving up on the exploration mandate, and we certainly understand that the two sixty square kilometers of ground that we do own offer large prospecting opportunities for the company going forward, but we will be delivering upon the de risking milestones in the future for the investors. It's a global scale resource in the Southeastern Corridor Of Ecuador. We're talking about 4,200,000,000 tonnes at 0.33% copper equivalent grade. It's a high grade ore body at surface, and a very low strip ratio profile over the fifty five year life of mine. The strip ratio profile is consistent over the life of mine and we'll touch on that in a couple of slides further, but certainly offers massive flexibility from a mine planning perspective.

2:16 Again, there are no attachments to any major. It's one of the very few copper projects globally without the attachment to a major. We additionally have the social license to operate. We have multiple impacts and benefits agreements that have been signed with the local communities that own the ancestral lands. Just the recent one was signed in 2024. Municipal, provincial and federal government endorsements are also prevalent for a project like this. There are robust economics in terms of the project. This project sits in both, as I said, tier one and first quartile from a cash cost perspective, and the low capital intensity is something fundamental to this asset.

3:03 Ecuador is a favorable mining jurisdiction. It's an open economy with one of the lowest combined taxes and royalties in Latin America. In addition, we have a very experienced team with diverse skill sets covering all critical elements required at this stage of the SOLARIS development.

3:23 As mentioned to you before, we have the resource summary on the left hand side of the screen at 4,200,000,000 tons with a copper equivalent grade of 0.33%. You have to overlay that grade with the strip ratio profile that rivals no one else in the industry. It's a global resource with over fifty years life of mine. There's also simple metallurgy. It's high recoveries for both copper and the byproducts, free from delirious elements. And that is fundamental to the marketing of the product in the future, where it can be blended as a concentrate into the global markets. We have an MRE update in quarter two of twenty twenty five, where we drilled more than 75 kilometers during 2024, as well as encompassing recent infill drilling from this year. So we would have drilled the 180 kilometers in the ore body.

4:20 So it's very well known. As mentioned to you before, the average copper production is very large scale in terms of what it represents from a global audience perspective. Only eight of the top 30 greenfield projects of scale have no attachment to majors, and that is fundamental when you look across the chart on the right hand side of the screen. The Wirinza project certainly is stand out from that perspective, and from a potential partnering perspective in the future that does provide us with large term flexibility to ensuring that we have the right partner to drive this project forward.

4:58 As mentioned to you, Wirinza boasts one of the lowest strip ratio profiles globally, driving significant cost savings and environmental benefits. The advantages of a low strip ratio profile is that we have minimal overburden, it's high graded surface, provides massive flexibility to the mine plan, optimization opportunities, and low mining costs in terms of CapEx and OpEx. As you will see from a waste to all strip ratio profile, it's 0.5 to one within the first twenty one years, and 0.9 for the full life of mine. The medium strip ratio profile is two times, so you have to look at it from a relative grade perspective and what that means in terms of its positioning against other major development projects globally.

5:50 You'll also see that the on the chart in the bottom right, you'll see the ore body sits very, very close to the surface. And the first four phases of the life of mine are opened with minimal pre strip.

6:06 One it's also the ore body in Wawrinsa is one of the lowest capital intensity projects globally. It has a very low strip ratio profile as alluded to before. There's substantial existing infrastructure in and around this project. We have water, which is unique in terms of its profiling. We have obviously a low cost of energy and power, we're very close to the project, a low cost of labor, it's high grade at surface and low elevation. The elevation ranges between 1,500 to 2,000 meters above sea level. And again, the project can access a low cost of diesel. It's conventional open pit mining, which is also fundamental.

6:55 And Wahrinza, the capital intensity is in the top 10 lowest amongst among all copper projects of scale globally at 19,000 per ton of copper.

7:10 From an Ecuadorian perspective, it's a world class geography. There's been ten years of continuous pro mining policy in country. There have been tier one deposits that have been permitted and in production today, represented by FDN as well as Mirador. There's rapid permitting regimes,

7:30 major projects have been permitted within a year, and two new projects have been permitted within 2024. As mentioned to you before, primary infrastructure is prevalent within the country. We've got good access to highways and ports, power grids, low elevation, water and low low cost of labor. We do have an investment protection agreement in place with a freeze until 2066 around tax and regulatory.

7:59 International security guarantees are also in place. It's a US denominated economy, with raw material exports being the key component for this country's economy. FTAs have been signed with both China, The US and Canada.

8:16 And impacts and benefits agreements, as I mentioned to you before, have recently been updated in 2024. We've got consent from the communities and endorsement by the government, and favorable tax and royalty regimes are combined with as one of the lowest in Latin America.

8:35 There's a seamless process for stakeholder endorsement on this project, and the past two weeks, the team and I went out to sites, and we met with various different stakeholders, and that included the leaders of the SHORA centers, and the owners of the ancestral land, the mayor of the Canton, the governor of the Marona Santiago province, and the ministers of energy, mines, and minister of environment, and all their vice ministers. I can say that there is genuine stakeholder support for this project in ensuring the advancements of this project into the future. As mentioned to you before, there are precedents for the rapid permitting regimes within the country.

9:13 You'll see that the Fruta Del Norte project was permitted within a year, the Kurupampa project within two years, and we certainly have built in some buffers in terms of our next phase of our life and development of this project. We submitted the EIA in August,

9:30 the general election will have the second round in April 2025, we hope to have the EIA and technical approval during the second quarter of twenty twenty five, and the exploitation agreements in hand within the first half of twenty twenty six. And that is fundamental to all the shareholders, in terms of driving the value forward in the next phase of this project's life cycle.

9:54 As mentioned to you before, we've done 180 kilometers of drilling into the ore body. We certainly understand this ore body and what it represents. During 2025, we have important milestones to deliver upon. We have an IPA update during quarter one of twenty twenty five. We have the EIA technical approval,

10:15 which should be approved by the government within the first half of twenty twenty five. The MRE update will be provided in the first half of twenty twenty five, and then the PFS study will be provided to the market in quarter three of this year. The spin out will continue to be a focus of the team, but we understand that value around delivering these milestones is fundamental as a first pass.

10:44 The exploitation agreements should be in hand by the first half of twenty twenty six, and early works to begin to commence during the second half. The feasibility study will commence during the quarter four of twenty twenty six, 2025 and into 2026. So we'll have a construction ready decision by the end of twenty twenty six. So these are the ingredients of further de risking, that the team is very focused on delivering, and ensuring that we work tirelessly to drive value to shareholders in encompassing and delivering these milestones.

11:19 As mentioned to you before, we sit in the Southeastern Corridor of Ecuador, very close to Mirador and Fruta Del Norte. This is a well established mining geography, very close to the Peruvian border, and the communities have seen the success of mining over the past couple of years, with these two phenomenal mines in place and providing benefits to the communities and all stakeholders.

11:44 From a regional and district level potential, the Wirinta cluster has two sixty square kilometers of land encompassed. The central and east deposits are is where the MRE is located, and certainly many prospecting areas located within the cluster. San Carlos and Penacas sits external to the cluster and owned by Eco Corriente, and certainly provides further M and A opportunities for

12:13 the SOLARIS group. So very highly prospective in terms of what it represents, and the future focus will be on the Northwest deposit, which is outside the MRE, but definitely can be expanded for major pit expansion.

12:30 As mentioned, the senior management team is fundamental to the success of the next phase of development for this project. We have a diverse skill sets covering all critical elements required at this stage of the project. We have proven track record of success in mining, extensive operational expertise within Latin America, expertise within corporate finance and structuring, and again very familiar with the SOLARIS assets. And our team has been working around these assets for some time, or been associated with these assets for some time.

13:07 From a capital structure perspective, the organization remains listed on the TSX, as well as the New York Stock Exchange. We have diluted stocks and options outstanding of 169,000,000, available liquidity of 68,000,000 and a market cap today of $669,000,000 Management and insiders account for 41% of the share distribution, institutions own 40% and free float 19%.

13:34 We spent about around $200,000,000 to date on cumulative investments on the ore body and social side. We have deep alignment with the shareholders and a real culture of ownership within the entire management team. And everyone is driving value in the same direction,

13:53 and ensuring that we do deliver upon these milestones for the equity shareholders and ensure that there is value there. So I'd like to hand back to Paul and take further questions. Thank you very much.

14:12 Fantastic, thank you very much indeed for your presentation. Ladies and gentlemen, do please continue to submit your questions just using the Q and A tab situated in the top right hand corner of your screen. Just while the team take a few minutes to review those questions submitted today, I'd like to remind you recording the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. Let me just bring your cameras up there guys and open your mics.

14:35 Give me one second, there we go. Good afternoon to you. If I may, as you can see, we've received a number of questions throughout today's presentation. And if I could, Richard, just ask you to read out those questions where appropriate to do so. Either take the question or pass it to Matthew and I'll pick up from you at the end. Great, thank you Paul. First question for you, what made you leave Glencore to join SOLARIS and did you know the asset before joining?

15:03 Yeah, Richard, I think that's quite a simple answer. I firmly believe in the asset quality and the cluster that WARIS RESOURCES does provide to the equity investor base. I've been tracking this project for a long time when I was at Glencore for the past four years, as mentioned in the presentation. And the value proposition is fundamental. Today we trade at a 0.2 times PNAV and you know the value accretive steps that mentioned in the presentation are real and

15:31 deliverable. So we trade at a press multiple and it's the ambition of the team to make sure that we do get that up and the share price is reflective of reality and you know we'll work tirelessly to deliver upon that. As mentioned before, the team that we do have on hand is fully equipped to deliver upon that and ensure that we do restore value to shareholders and ensure that that through milestone delivery is there.

16:04 Thank you. Next question. With new management, is there a new strategy and if so, why and how will it differ from before?

16:15 Yeah Richard, I think on that question there's definitely not a new strategy that's being deployed. I think it's obviously the Writza project's matured naturally to allow ourselves to develop the next phase of its life. 3,000,000,000 tons of resource is fundamental. It's a large regional player and making sure that we deliver upon the next phase of its journey and de risking ultimately is what we as a team need to deliver upon. We certainly haven't lost the focus on the exploration side of things.

16:49 Currently we do have two teams for example working on field expeditions at this point in time. So there's a large focus on that, but the real focus of this team is around value accretion, focus on the 3,000,000,000 tonnes that we own today,

17:02 know you know various different cutoffs as mentioned before we own you know 4,000,000,000 tonnes at 0.33%. Ensuring that we do deliver upon that and accrete value is fundamental to the shareholder base. And again as I said before, I firmly believe that we trade at a very depressed multiple and the value proposition here is very large. Thank you. Next question: Have you completed the immigration and are you looking to continue conversations with Chinese parties?

17:35 So just on the first part I can confirm we have now completed our immigration from Canada, so that piece is done. I'll let Matt take the second part. Yeah I think on that point guys I think it's important to note that we're not in advanced conversations with any partners or Chinese at this point in time. Obviously from the immigration, Richard as you said, that we've just immigrated and we formally you know shifted the focus. You know I think the value proposition is large for ourselves and shareholders around the table and ensuring that we do accrete value to a certain level before we look for ultimately partnership. I don't deny the fact that partnership could be sought at the appropriate time, but right now I think we as a team need to focus around PNAV accretion and driving those multiples to an appropriate level and in that process people are going to talk. I can't deny the fact that people are already talking considering the fact that we have immigrated, But again I think we have got a job to do to the shareholders and make sure that that value is there and fully encompassed before we do anything.

18:44 Thank you. Next one, given your balance sheet do you think we will need to partner with someone to get warrants are built and if so what would the ideal partnership look like? So just touching on the balance sheet, as Matt referenced in the presentation, had $68,000,000 of liquidity at the end of Q3, so we've got a reasonable cash balance at present and we've got a number of levers that we can pull to finance the project in the near term. I think looking to the longer term of actually building building the assets, I think there's certainly partnership will be something you know to look at further down the line. But Matt do you want to touch on the second piece? Yeah I agree with you Richard, I think partnership will be looked at. Mean strategically we would like obviously a partner with a balance sheet with expertise that can move these projects forward.

19:35 And again, I think the impetus to move it forward ultimately. So the right deal structure is vital. So the ingredients of partnership is very critical to ourselves as shareholders and management team, as to who we see as a partner, when we select as a partner, and how we can ensure that we do deliver this project by 2030, which is the ambition to get to bring it. Thank you. You said you were on-site recently. Could you provide more color on the social situation and how you manage relationships on the ground? Yeah Richard, I think you know we've been up to site twice I've been up to site twice already and certainly met all the major stakeholders.

20:22 You know the company does have a participatory model which is inclusive of the company, the government, the communities and encompassing SOLARIS too. And you really can see the money before we spent $217,000,000 in terms of drilling and social attributes here. You can see the benefits to the communities flowing through. But really the stakeholder audience here is very positive on this project. They really want to see the benefits of this project and they really want to see this being developed. Our INC and as I said, owners of the Warrants and Yarvi communities, you know, they are very important stakeholders to this project. So are many of the other stakeholders in the area, all the way up to the government.

21:11 But all I can say is that the audience here is very, very focused on delivery of this project. We as a team certainly do not overlook that social license to operate side. It's fundamental to ourselves and we continue to drive that agenda on a daily basis and ensuring that those relations are intact and continue for the long term here, because they strategic partners of ours in this project. Thank you. What is your view on the copper market during 2025 and beyond? Yeah, think that's a good question. Think the copper market's very buoyant market at the end of the day. I think you know you've got, if you looked at the market as a holistic view, you've got what 22,700,000 tonnes of mined copper that's consumed on an annual basis.

22:01 If you apply 3% demand growth to that, which is conservative, that's 700,000 tonnes of supply that needs to come on an annual basis. I certainly do not see that supply coming online on an annual basis, because that's you know compounded ultimately. So I think you know if you looked at it, world should be in a deficit of plusminus 300 to 350,000 tonnes in 2025, which is the mental to the thesis. So you know again very important. I think the other points to look at is exchange traded stocks and they're very low at this point in time, below the sixty five day average moving targets. And again, I think the other point to think about is where TCRCs are trading at this time. We have seen it go negative already in 2025.

22:53 Benchmark settled at twenty one point two point one. It's indicative of market is absorbing copper concentrates. And we haven't seen any smelter shutdown in China. So it's again very, very positive in terms of what the outlook like for investor thesis. I'm very, very positive around what it is, but I think we also have to look at it quite conservatively from the perspective of the trade tariffs and I think there is some market nerves around that, but hopefully that settles down shortly because the supply demand fundamentals are what drives the Thank you. Why haven't you published any drilling results yet, and when can we expect to see some results?

23:40 Yeah I think that's a good question. I think as mentioned before, the focus has really been on the completion of the infill drilling required for the 2025 updates, which we will publish to the market in the first half of this year, middle of this year we'll publish that. So during January we did 10,000 meters of infill drilling. As I said before in the previous question that we haven't forgotten about the exploration opportunities here at hand on the two sixty square kilometers of package. It's fundamental to understand it. We've got teams working on it and we will pass results to the market as and when required. We're not going to publish results on drilling weekly. There'll be very credible results and the market will understand that when they are published. But the focus will be around delivery of the project.

24:33 Thank you. Next question, when will the spinout happen? I'll take that one. So we obviously see value in our broader portfolio of non core exploration assets and the spinout is something that's been touched on in the presentation and by the previous team, and it's something we will look at in due course, but for the time being certainly advancing the Wawrinsa project is the number one priority for the new team. Next question. Do you have a schedule for the project, the exploration phase, design, development, production and closure, and do you forecast any issues with acid water generation? Yeah Richard, as I mentioned before in the presentation, going through the pre feasibility studies at the moment.

25:21 ASENCO and IPESOL are driving those studies forward. Certainly all aspects of the studies are being encompassed in that and we'll get to the market in quarter three. So those questions are all wrapped up in the studies, in the pre feasibility studies, and you will have a view of that in quarter three. Great, thank you. Next question. I'll ask two questions together on the same topic here and you've touched on some of these elements earlier. With the disappointment from the recent election, what could be the ramifications on the mining industry if Daniel Nabois loses the runoff? Is Louisa Gonzales pro mining?

26:06 The second question on a similar topic, how would SOLARIS deal with a potential Gonzales presidency? Yeah, think that's a good question guys. I think at the end of the day, both Gonzales, you know, Luisa and Nabo are very, very supportive of the extractive industry. That's been fundamental to their campaigns as you've seen, and you know both the Mirador mine and the Fruta Del Norte mine was permitted and built under the Korea government. So from our perspective and dealing with many stakeholders who operate in the country, yes we've got views, but at the end of the day I don't think it's going to fundamentally change what the extractive industry looks like in Ecuador, nor will the regimes change in terms of what this does represent. I think we're fairly positive on both sides of the equation and we certainly haven't aligned ourselves with one or the other.

27:00 So we'll watch and see when the election and how it plays out. But certainly both candidates are very supportive of the election. Thank you. Next question. How are management going to work on social relationships compared to the previous management team? Well Richard, just the previous management team did a fantastic job around the social relationships and we stepping in to obviously strengthen that and to continue strengthening it. Our stakeholder audience here very real to ourselves, the social license to operate is fundamental to the success of this project. You know that participant mining model is fundamental to our success. We make sure that you know the communities are part of this project.

27:47 This is a project for Ecuador and by Ecuador and we continuously say that and mining is for the good of all. And you know for us in ensuring the success of this project, we believe that the stakeholder audience is fundamental and on a daily basis we make sure that the social license to operate is not impeded. Great. Thank you. So next question, just regarding the previous, Zidjin transaction that was announced last year. Could the Zidjin deal be completed now? Do you have any current interest from Zidjin? Look I'm not going to talk to the current interests. The deal could be you know entered into today.

28:33 As mentioned before, we as a management team and for the shareholder audience, it's very important to understand the partner, the balance sheet and the impetus to moving it forward. And the impetus to moving it forward is around the shareholder structure, right? And the structure is very important to ourselves. So they've got to have enough time to move this project forward and deliver it by 2030. So I think with those three ingredients, we could look towards a partnership. You know, we have significant value in this project. You know, people are talking to ourselves, but you know we've got to keep our heads down, I can't look outside the window, I've got look and we've got to keep driving value for the shareholder base. Great, thank you. I think we've got time for just one more. So final question, what are the next catalysts to drive value for the business?

29:24 Yeah, think Richard, I think it's been quite clear through the presentation today as to the key value levers that we do have. The EIA was submitted in August last year, obviously receipt of the permits in the middle of this year. We'll have the MRE update to the market in middle of the year too, and then you know Q3, back end of Q3 we'll have the PFS. And then we move towards the export permits which we hope to have in hand you know during the first half of twenty twenty six. And that's a mental catalyst for shareholder value and construction ready decision ultimately at the back end of twenty twenty six. So those strategic levers that I'm very focused on and ensuring that the team focus on that and deliver that.

30:14 And that's really our focus. Great, thanks Matt. That's the end of the question list. I'll just hand back to Paul to conclude. Super. Richard, Matthew, thank you very much indeed for asking those questions you can from investors. In course, further questions that come through can be reviewed by the company and published on the Investor Meet company platform. Just before redirecting investors to provide their feedback, which is particularly important to you and the team, Matthew, could I just ask you for a few closing comments, please? Yeah, think thanks, Paul. I think the Wiritsa project is very unique in terms of what it does offer the investor base. This is a regional play, multi generational play in a tier one geography and certainly very unique in all aspects. So with that, I would like to thank you to everyone for joining today and look forward to be in touch.

31:02 Fantastic. Matthew, Richard, thanks indeed for updating investors today. Can I please ask investors not to close this session? We automatically redirect it to provide your feedback in order the team can better understand your views and expectations. It's only take a few moments to complete, and that was greatly valued by the company. On behalf of the management team of SOLARIS RESOURCES INC, we'd like to thank you for attending today's presentation, and good afternoon.