Advancing a world class lithium deposit and an emerging nickel-PGE-gold ASX : LTR |MAY 2020 project
Important Information Forward Looking Statements The Information in this report that relates to Exploration Results for the Kathleen Valley Project This Presentation may include statements that could be deemed “forward -looking statements” . is extracted from the ASX announcements “ Liontown set for interim resource upgrade at Although the Company believes the expectations expressed in such forward-looking Kathleen Valley as drilling intersects further thick, high-grade mineralised zones” released on statements are based on reasonable assumptions, such statements are not guarantees of the 5 th February 2020 which is available on www.ltresources.com.au. future performance and actual results or developments may differ materially from those expected in the forward-looking statements or not take place at all. The Information in this report that relates to Exploration Results for the Moora Project is No offer to sell or invitation to buy extracted from the ASX announcements “Initial phase of exploration completed at 100%-owned This Presentation is not, and should not be considered to, constitute any offer to sell, or Moora Nickel Project, located north-east of Perth in Western Australia” released on the 16 th April 2020 and “Strong gold, PGE, nickel and copper anomalism returned from initial fieldwork solicitation of an offer to buy, any securities in Liontown Resources Limited, and no part of this completed at 100%-owned Moora Project, WA“ released on 13 th May 2020 which are available Presentation forms the basis of any contract or commitment whatsoever with any person. Liontown Resources Limited does not accept any liability to any person in relation to the on www.ltresources.com.au. distribution or possession of this Presentation from or in any jurisdiction. The Information in this report that relates to Mineral Resources for the Buldania Project is Disclaimer extracted from the ASX announcement “Liontown announces maiden Mineral Resource Whilst care has been exercised in preparing and presenting this Presentation, to the maximum Estimate for its 100%-owned Buldania Lithium Project, WA” released on the 8 th November extent permitted by law, Liontown Resources Limited and its representatives: 2019 which is available on www.ltresources.com.au. • make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Presentation; The Company confirms that it is not aware of any new information or data that materially • accept no responsibility or liability as to the adequacy, accuracy, completeness or affects the information included in the original market announcements and that all material reasonableness of this Presentation; and assumptions and technical parameters underpinning the estimates in the relevant market • accept no responsibility for any errors or omissions from this Presentation. announcements continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not Competent Person Statement been materially modified from the original market announcements. The Information in this report that relates to Mineral Resources for the Kathleen Valley Project is extracted from the ASX announcement “Kathleen Valley confirmed as a world-class lithium deposit as Mineral Resource increases to 156Mt @ 1.4% Li 2 O” released on the 11 th May 2020 which is available on www.ltresources.com.au. The Information in this report that relates to Ore Reserves and Pre-Feasibility Study (PFS) for the Kathleen Valley Project is extracted from the ASX announcements “Kathleen Valley Pre - Feasibility Study confirms potential for robust new long- life open pit lithium mine in WA” released on 2 nd December 2019 which is available on www.ltresources.com.au. MAY 2020 | 2
Liontown Overview World class resource • Kathleen Kathleen Valley Lithium Project 156Mt @ 1.4% Li 2 O & 130ppm Ta 2 O 5 Valley • 80% Measured and Indicated • Potential long life (>25 years) mine • Significant opportunities to build on • previous positive PFS: Moora Ni-Cu- PGE -Au Project Access higher grades earlier o Tantalum by-product o Updated PFS due Q3/Q4 2020 • W E S T E R N A U S T R A L I A Moora Project • Pipeline Emerging Ni-Cu-PGE-Au province o Projects Largely unexplored o Strong early results o Buldania Project • KALGOORLIE ~15Mt @ 1.0% Li 2 O o Exploration upside PERTH o All Projects - 100% owned • Low Risk Buldania Stable, investor friendly jurisdiction • Lithium Project Established, modern infrastructure • The latest Kathleen Valley resource confirms Liontown as a major player in the battery metals space
Kathleen Valley Lithium- Tantalum Project WESTERN AUSTRALIA 100%
Hard Rock Lithium Operations and Advanced Projects A globally significant lithium resource 3.00 Li2O Grade % Greenbushes Kathleen Valley May 2020 (Talison/Albermarle) 2.50 SEP JUL 2018 2019 Mt Holland 2.00 (WES / SQM) Grota de Pilgangoora Cirilo (Sigma) Mt Marion (Min (Pilbara Minerals) Res / Ganfeng) 1.50 Finnis (Core) 1.00 Wodgina (Min Res /Albermarle) Piedmont Lithium Pilgangoora (Altura) Resources Mt 0.50 0 50 100 150 200 250 300 World Wide (excl. Africa)| Spodumene Dominant | Tonnes x Grade | Li 2 O Only Refer to Appendix on Slide 23 for Peer Comparison Information including Resource Classifications MAY 2020 | 5
May 2020 MRE – 108% growth in tonnes and 119% growth in contained lithium 80% Measured and Indicated W E N S 1,700m Cut-off Resource Million Ta 2 O 5 Li 2 O% Li 2 O% Category Tonnes (ppm) Measured 20 1.3 140 600m 0.55 Indicated 105 1.4 130 600m Inferred 32 1.3 110 Total 156 1.4 130 W E 1200m Cut-off Li 2 O% Mt Li 2 O% Ta 2 O 5 (ppm) 0.4 158 1.34 128 0.55 156 1.35 128 0.6 155 1.35 128 600m 0.8 148 1.39 129 1.0 130 1.45 131 1.2 100 1.56 132 May 2020 MRE 1.4 64 1.70 131 July 2019 MRE/ Dec 2019 PFS * Tonnages and grades have been rounded to reflect the relative uncertainty of the estimate. Inconsistencies are due to rounding. MAY 2020 | 6
2019 MRE v 2020 MRE – Grade / Tonnage Comparison An increase in grade and tonnes Mt Li 2 O Grade % 180 1.80 160 1.70 1.70 140 120 1.60 1.56 1.61 100 1.50 1.45 80 1.48 1.39 60 1.40 1.35 1.35 1.34 1.38 40 1.30 1.31 20 1.28 1.28 1.27 0 1.20 1 2 3 4 5 6 7 0.4 0.55 0.6 0.8 1.0 1.2 1.41.4 Cut-off Li 2 O % Mt 2019 Mt 2020 Li2O% 2019 Li2O% 2020 MAY 2020 | 7 Refer to Slide 7 for Mineral Resource – Li 2 O Cut-off Grades
December 2019 PFS Key Metrics | Open-pit mining and lithium only Based on Jul 2019 MRE – 74.9Mt @ 1.3% Li 2 O A$ SC6.1: Mining: Reserve: Life of Mine Total Free Cash 295Ktpa 2Mtpa 50Mt @ 1.2% Li 2 O 26 years Flow +$1.9B NPV 1 $507M IRR 25.1% Payback Period ~4 YEARS $564/t conc. Opex 2 ( US$406/t conc. ) (excl. Ta credits) Ave. Strip Ratio 7.7:1 A$960/t Ave. SC6 Price 3 (US$690/t) Capex $240M 1 8% (real). 2 Operating costs include all mining, processing, transport, state and private royalties, freight to port, port costs and site administration and overhead costs. 3 Source: Roskill 2019 and Liontown base case related party and arms length prices 2024 -2040 (See Appendix 2 for proposed flowsheet). MAY 2020 | 8
The Opportunities Investigate underground / 1 open pit mining New, larger MRE will underpin an Access higher grades sooner • updated PFS Reduce opex by : • Lowering mine dilution o W E 1200m Increasing concentrate production o Shorten payback • 2 Second Product Stream Develop tantalum flow sheet • Process Improvements 3 May 2020 Block Model Investigate simpler Whole-Ore Flotation • verses industry standard DMS-Flotation <1.5% Li 2 O process flowsheet 1.5 – 2.0% Li 2 O >2.0% Li 2 O Potential to: 4 Downstream Potential Liontown has engaged Lycopodium Minerals Long life operation with potential to • who, along with the assistance of highly attract strategic partner reputable and experienced consultants, will ensure a high standard of work Existing infrastructure provides significant • head start MAY 2020| 9
While EV adoption rates will be temporarily delayed by The rise of lithium batteries COVID-19, the longer-term fundamentals remain strong continues January 2020: China extends subsidies on EV’s EU rules begin – heavily penalising carmakers on CO 2 emissions. Feb 2020: Kathleen Valley production UK commits to banning sales of new has the flexibility to align petrol and diesel cars by 2035 – 5 with the forecast rise in years earlier than previous target lithium demand Plans to ban petrol cars in 12 major European capitals starting as early as 2030 Source: Benchmark Mineral Intelligence Lithium Forecast – April 2020 COVID-19 2020: In Europe, Jan-Feb 2020 EV sales were 140,000 units - a~6% penetration rate compared to ~ 2% in 2019 At the peak of China’s COVID -19 closures in Feb, EV penetration rose 3.2% Tesla’s share price remains strong – up 95% in 2020, reaching high of +400% over the last nine months Source: Benchmark Minerals, INTELLIGENCE SPECIAL REPORT, April 2020 MAY 2020 | 10 Source: Benchmark Mineral Intelligence Lithium Forecast – April 2020
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