CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
INDABA PRESENTATION CAPE TOWN | FEBRUARY 2017 AIM:SAV
A MULTI-COMMODITY PORTFOLIO WITH NEAR AND MID TERM PRODUCTION
CORPORATE PRESENTATION OCTOBER 2017 AIM:SAV
PRODUCTION LITHIUM MINERAL SANDS INVESTMENT 2 Disclaimer - - PowerPoint PPT Presentation
INDABA PRESENTATION CORPORATE PRESENTATION CAPE TOWN | FEBRUARY 2017 OCTOBER 2017 AIM:SAV AIM:SAV CORPORATE A MULTI-COMMODITY PORTFOLIO WITH NEAR COPPER AND MID TERM PRODUCTION LITHIUM MINERAL SANDS INVESTMENT 2 Disclaimer CORPORATE
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
INDABA PRESENTATION CAPE TOWN | FEBRUARY 2017 AIM:SAV
CORPORATE PRESENTATION OCTOBER 2017 AIM:SAV
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
CORPORATE
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 this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. The information contained in this document does not purport to cover all matters that may be relevant for the purposes of considering whether or not to make any prospective investment and is not intended to provide, and should not be relied upon, for accounting, legal or tax advice. This Presentation is supplied to you solely for information. The information contained in this Presentation has been prepared by Savannah Resources plc (the "Company"). The Presentation and any further confidential information made available to any recipient, either orally or in writing, must be held in complete confidence and documents containing such information may not be reproduced, used or disclosed without the prior written consent of the Company. The Presentation shall not be copied, published, reproduced or distributed in whole or in part, to any other person, for any purpose at any time. The information contained in the Presentation is not intended to be viewed by, or distributed or passed on (directly or indirectly) to, and should not be acted upon by any class of person other than (i) qualified investors (within the meaning of the Prospectus Directive 2003/71/EC) and (ii) investment professionals falling within Article 19(5) and high net worth companies, unincorporated associations and partnerships and trustees of high value trusts falling within Article 49(2) respectively of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (or persons to whom it may otherwise be lawfully communicated) (together "Relevant Persons"). Persons who are not Relevant Persons should not attend the Presentation or rely on or act upon the matters communicated at the Presentation. By accepting the Presentation, you agree to be bound by these restrictions. The Presentation does not constitute an admission document, prospectus or listing particulars relating to the Company or the Enlarged Group; it has not been approved by the London Stock Exchange or the Financial Conduct Authority, nor does it constitute or form part of any offer, invitation, inducement or commitment to, sell, issue, or any solicitation of any such offer or invitation to subscribe for, underwrite or buy, any shares in the Company or any of its affiliates to any person in any jurisdiction, nor shall it nor any part of it, nor the fact of its distribution form the basis of, or be relied on in connection with, or act as any inducement to enter into any contract or investment decision in relation thereto. No undertaking, assurance, representation or warranty, express or implied, is made or given by or on behalf of the Company, Northland Capital Partners Limited (“Northland”) or finnCap or any of their respective existing or proposed members, agents, affiliates, representatives, advisers, employees or directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document and no responsibility or liability is accepted by any such person for any loss however arising from any use of, or reliance on, or in connection with, this Presentation or its contents or otherwise arising in connection therewith. Notwithstanding this, nothing in this paragraph shall exclude liability for any such undertaking, assurance, representation or warranty made fraudulently. Certain statements in the Presentation are forward-looking statements, and the Presentation itself has been based upon a number of assumptions, forecasts and projections of the Company which by their nature are forward looking. Forward-looking statements are typically identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "potential", "anticipate", "plans" or "assumes" or similar expressions, or by discussions of strategy that involve risk and uncertainties. By their nature, forward-looking statements, assumptions, forecasts and projections involve a number of risks and uncertainties, and in some cases are based on estimates and incomplete information, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements
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CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
CORPORATE
Mozambique Heavy Mineral Sands Project
agreement
and DFS
Oman Copper Project
mines to initiate cashflow
Near-term milestone/value drivers & near and mid term mineral production
Portugal Lithium Project
Europe
move to feasibility studies Corporate
resulting from cash investments
KEY DATA MARKET AIM TICKER SAV SHARE PRICE1 5.625p MARKET CAP1 £30.17 million SHARES ON ISSUE1 561,417,154 SHAREHOLDERS Al Marjan Limited – 29.17% David Archer – 5.64% Rémy Welschinger – 4.04%
1as at 9.10.17
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
CORPORATE
COPPER LITHIUM INVESTMENT MINERAL SANDS
COPPER - OMAN Mining targeted to commence H1 2018 LITHIUM – PORUGAL Development decision to be made late 2018 MINERAL SANDS – MOZAMBIQUE Development decision late 2019
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
CORPORATE
Maqbool Sultan Non-Exec Director David Archer Chief Executive Officer Imad Sultan Non-Exec Director Matthew King Chairman
Manohar Shenoy Alternate for Maqbool Ali Sultan Murtadha Sultan Alternate for Imad Sultan
Exploration and development managers
Durair A’Shaikh General Manager Business Development Oman Michael McGarty Chief Financial Officer
Paul O’Donoghue Country Manager, Mozambique Lithium Commercial Director TBC
Dale Ferguson Technical Director
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
Aarja Zuha Lasail Bayda Salahi 1 – gold Gaddamah - copper and gold
51% interest earning up to 65%
Mahab 4 - 1.51Mt at a grade of 2.1% copper for 31,500t of contained copper Maqail South – 0.16Mt at a grade of 3.8% copper
65% interest
BLOCK 4
408km²
BLOCK 5
598km²
Strategy: Targeting a resource inventory to support high margin, low cost, copper/gold
Highly prospective asset portfolio covering 1,006 km²
✓ Metallurgically simple ores ✓ Medium to high-grade deposits ✓ Power ✓ Port ✓ Roads ✓ Low Fuel Cost
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
Copper mining targeted to commence H1 2018
Additional metallurgical test work and the development
a detailed mine design and production plan for the two mines being undertaken Economic evaluations are well advanced into the potential development of a combined open pit and underground mining and treatment operation to produce a high-quality copper concentrate
Maqail South – OPEN PIT MINING
✓ Environmental Impact Assessment submitted March 2017 ✓ Regulatory approval or "No Objection" received from five Ministries for the Maqail South Licence application to date
Underground mining is more expensive than open pit mining but has benefits
impacts on neighbours
smaller
manage
Mahab 4 – UNDERGROUND MINING
✓ Environmental Impact Assessment application submitted May 2017 ✓ Regulatory approval or "No Objection" received from four Ministries for the Mahab 4 Licence application to date
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
multiple mine development
concentrate for shipment to export markets
being reviewed by the Ministry of Environment and Climate Affairs ('MECA'). Our strategy has received in principle approval from MECA in that they have confirmed that it is worthy to be considered for licencing
from other high-grade copper deposits adding further potential upside
proposed TSF and copper concentrator / processing plant – received approval in principle from the Ministry of Environment and Climate Affairs ('MECA') subject to studies and test work being presented
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
Mineral Inventory 0.5% Cu Cut-off Grade Deposit Category Tonnes Cu Au Ag Cu Au Ag T % g/t g/t Tonnes Ounces Ounces Mahab 4 Indicated 930,000 2.8 0.2 8.6 26,000 6,000 256,000 Inferred 610,000 0.9 0.1 2.7 5,000 2,000 52,000 Maqail South Inferred 160,000 3.8 0.1 2.4 6,000 1,000 12,000 Total 1,700,000 2.2 0.2 5.9 37,000 9,000 320,000
Savannah’s Oman projects contain defined Mineral Resources of 1.7Mt at 2.1% Cu
Chalcopyrite identified as the sole copper bearing mineral, which is likely to lead to a simple, quick and relatively low cost flotation process Favourable processing costs as Mahab 4 resource appears to be relatively soft and requires relatively low primary milling power requirements Relatively low equipment liner and grinding media wear due to low abrasion rates Potential recoveries of around 95% at moderate grind sizes Saleable copper concentrate of over 23% can be achieved with recoveries over 90% with gold and silver credits Strong interest by copper off-takers and potential to also produce a product Additional test work is now underway to refine the process, further improve recoveries and overall copper concentrate grades
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
2017
2018
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
global battery grade lithium production lithium (second
vehicles (‘EVs’) and battery storage solutions
lithium carbonate equivalent (‘LCE’) products, so European manufacturers import 100% of their requirements
plant in Germany. Others are under way in Sweden, Hungary and Poland*
heavy and very expensive…I think that will lead to regional production and it needs to be in large facilities to make it economically viable.”*
wants to bring together an Airbus-style consortium of leading European companies to develop battery technology**
to $40bn by 2025 as electric cars become commonplace, according to Goldman Sachs**
The lithium revolution has started in Europe but where is Europe’s lithium supply?
Portugal has the potential to become Europe’s largest long term supplier of battery grade LCE products
* Source: https://www.ft.com/content/44589a00-582d-11e7-80b6-9bfa4c1f83d2 ** Source: https://www.ft.com/content/3260d4fc-a53f-11e7-9e4f-7f5e6a7c98a2
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
Portugal: Lithium Project
to be the first significant lithium concentrate producer in Europe: Granted mining lease over a number of lithium (spodumene) deposits mining in Portugal - low-cost setting and stable country
1,024km2 in northern Portugal*
>6% Li2O, clean, low iron lithium (spodumene) concentrate can be produced
exploration drilling undertaken by previous
Resource drilling, mapping and sampling underway to define an initial Mineral Resource
port
European Lithium Project With Near-Term Production Target
Advancing Mina do Barroso to take become the first significant lithium concentrate producer in Europe
Acquisition in May 2017
Acquired a 75% interest in actual and contingent assets over four project areas with over 1,024km2 of tenure including*: one granted mining lease (5.42km2), and nine pending exploration licence applications*
Cash (AUD $m) SAV Shares Initial Consideration 1.0 20m Deferred Consideration 1** 1.5 20m Deferred Consideration 2*** 1.5 20m
If all deferred consideration is paid the total consideration would equate to AUD$10.1m (£5.8m) based on SAV share price on 24.05.17 * Of the 1,024km2 Project area relating to the pending applications: 348km2 is on track for government approval and 670km2 is currently subject in part to overlapping exploration licence applications from third parties ** JORC compliant resource of 7.5Mt at no less than 1% Li2O *** JORC compliant resource of additional 7.5Mt at no less than 1% Li2O
Deep water port in Porto, Portugal
*Source: Google Earth
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
High grade, clean, low iron, spodumene lithium deposit with 30-year mining concession
NOA or Souto da Cerdeira Alto do Cortico Carvalha Da Bacora Campo de Futebol Pinheiro Grandao or Fechas Piegro Negro Reservatorio or Chamica
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
battery grade concentrate is spodumene - this has the highest lithium content of the various minerals and has the highest density, making it relatively straightforward to process and recover
and development so far because:
lithium minerals; this means that concentrate transport and downstream processing costs can be minimised
gravity methods as its SG is likely to be significantly different to the surrounding waste rock
carbonate mine spodumene
Source: finnCap note ‘Lithium – what’s good and what’s not so good’, September 2017
Commonly targeted lithium minerals Mineral Max Li content (%) Specific Gravity Spodumene 3.73 3.1-3.2 Jadarite 3.16 2.45 Petalite 2.27 2.4 Lepidolite <3.51 2.8-2.9 Zinnwaldite <1.59 2.9-3.0 Hectorite 0.54 2-3
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
Grandao, Reservatorio and NOA – and further drilling underway
200m strike length together with good down dip extensions
200m strike length in a large, near surface, sub horizontal pegmatite body:
down dip
drilling at Reservatorio and Grandao with a view to defining a Mineral Resource by the end of 2017
licence area
scheduled to commence shortly. This is aimed at providing the required data for a scoping study
Close-up of coarse-grained spodumene from the Mina do Barroso tenement
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
Approvals
nucleos
lithium processing; this process is expected to take in the order of 6-8 months as the changes are an amendment to the existing approvals
Work underway to define a JORC resource in the near term with first production targeted for Q4 2019
POTENTIAL DEVELOPMENT TIMETABLE - MINA DO BARROSO
2017 2018 Activity Sept Oct Nov Dec Jan Feb March April May June July Aug Sept Oct Nov Dec
Exploration RC/Diamond Drilling Inferred JORC Resource First Pass Metallurgy Scoping Study RC/Diamond Drilling Indicated JORC Resource Feasibility Metallurgy Feasibility Study RC/Diamond Drilling Measured JORC Resource Licensing Amendments Processing Plant Approval Financing Development Decision
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM Company Project Location Project Status Mining Licence? Good infrastructure? Spodumene? London listed? Market cap (£m)*
Galaxy Resources Mount Cattlin Australia Production ✓ ✓ ✓ 720 Neometals Mount Marion
**13% interest
Australia Production ✓ ✓ ✓ 118 Pilbara Minerals Pilgangoora Australia Construction ✓ ✓ ✓ 707 Plymouth Minerals San Jose Spain Feasibility ✓ 16 Novo Litio Lusidakota Portugal Exploration ✓ 13 Bacanora Minerals Sonora Mexico Feasibility ✓ 105 Kodal Minerals Boungouni Mali Drilling ✓ ✓ 17 European Metals Cinovec Czech Republic Feasibility ✓ ✓ 64 European Lithium Wolfsberg Austria Feasibility ✓ ✓ ✓ 15 Savannah Mina do Barroso Portugal Drilling
✓ ✓ ✓ ✓
30
Savannah is the ONLY London-listed lithium project with a spodumene deposit and infrastructure links
*Market Caps provided as at 9 October 2017
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS COPPER
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
Positive price indications for ilmenite:
and steady price increases through 2017 as a result
and reductions in supply
accelerating from late 2016 for sulphate ilmenite
& Cristal
development
product streams; titanium dioxide minerals – in the form of ilmenite, rutile and leucoxene; and zircon
most usually in beach environments by concentration due to the specific gravity of the mineral grains
USES
highly refractive and ultraviolet light absorbing product, which is commonly used in paints, plastics, paper, textiles and inks
the production of opacifiers, which are used in surface glazes and pigments
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
Mozambique: The Mutamba Project World Class Heavy Mineral Sands Project
Joint Venture Rio Tinto
completion – COMPLETED
completion – UNDERWAY
completion
Rio Tinto Joint Venture focussed on early development
Indicated and Inferred Mineral Resource of 4.4 Bt tonnes at 3.9% THM
zircon
The Resource Infrastructure
from the port of Inhambane
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
Robust Economic Development Project - May 2017 Scoping Study Highlights:
Initial LOM of 30 years with mining inventory
US$4.23 billion LOM revenue forecast Capex of US$152 + US$74 million EPC/contingency Further optimisation possible through the feasibility phases
PEER COMPARISON TABLE (Million Tonnes) Total Heavy Minerals % Valuable THM % Mineral Estimate Peer Group Company Operation Country Ilmenite Rutile Zircon Total Resource Kenmare Moma *** Mozambique 6,472 2.90% 2.40% 0.10% 0.16% 2.66% Savannah Resources Mutamba* Mozambique 4,400 3.90% 2.30% 0.05% 0.11% 2.46% Mineral Deposits Grand Cote** Senegal 1,915 1.40% 1.01% 0.04% 0.15% 1.19% World Titanium Resources Ranobe Madagascar 959 6.10% 4.40% 0.14% 0.34% 4.89% Base Resources Kwale Kenya 147 3.5% 2.00% 0.46% 0.21% 3.5% Bluejay Mining Dundas Greenland 23 34.5% 8.8% N/A N/A N/A Reserves Kenmare Moma *** Mozambique 1,564 3.30% 2.70% 0.06% 0.18% 2.94% Mineral Deposits Grand Cote** Senegal 1,294 1.50% 1.08% 0.04% 0.16% 1.28% World Titanium Resources Ranobe Madagascar 161 8.20% 5.93% 0.20% 0.45% 6.58% Base Resources Kwale Kenya 91 4.3% 2.49% 0.56% 0.26% 4.3%
Notes to above table: Source - referenced companies’ websites * Mineral Estimates on 100% basis. Company has 20% interest, earning up to 51% interest ** Mineral Estimates on 100% basis. Company has 45% interest.*** Reserve not included in resource
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
* Approval required from both Savannah and Rio Tinto ✓ Scoping Study – completed ✓ Commence Pre-Feasibility Study – underway ✓ Pilot plant test work construction – underway ✓ Community Engagement programme
relationships with the communities in which we operate, supporting regional development, and ensuring high standards of social and environmental compliance
to conduct environmental studies for the Mutamba and Chilubane Projects
2017
2018
2019
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS MINERAL SANDS
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS INVESTMENT
Strategy to build a diversified, mid-tier mining group with a strong pipeline of projects particularly focussed on energy metals World class heavy minerals sands project in Mozambique being developed in partnership with Rio Tinto aiming to meet global titanium feedstock supply shortfall in the 2020s Lithium deposits in Portugal can play a strategic role in the development of an integrated Lithium/EV value chain in Europe Copper mining in Oman on track to commence in H1 2018 Highly skilled development team with proven track record of mine development and investment success Building the value of the company with high tempo activity across project portfolio Cornerstone 29.9% shareholder
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS INVESTMENT
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
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CFO Michael McGarty
Board of Directors Matthew King – Chairman David Archer – CEO Dale Ferguson – Technical Director Maqbool Sultan – NED (Alternate – Manohar Shenoy) Imad Sultan – NED (Alternate – Murtadha Sultan)
Key Board and Executive Business Development Admin & Finance Exploration, Development and field activities
CEO David Archer Group Financial Accountant Belen Madronal Legal Officer James Robson Finance Director, Oman Partha Vasevudan Outsourced Services Technical Director Dale Ferguson Exploration and Development Manager, Oman David Price Exploration and Development Team, Oman Exploration and Development Manager, Mozambique Dean Wadsworth Manager of Geology and Laboratory Teams Fahamo Ussene Geology and Laboratory Teams Project Geologist, Portugal Cristina Lourenço Exploration and Development Team Mozambique Country Manager Paul O’Donoghue Human Resources and Officer Manager Samira Faquir Admin and Camp Support Teams Legal Counsel and Government Relations Monteiro Suege Manager of Finance Lucas Macie Finance Team Strategic Support Business Development Manager, Oman Dr Durair A’Shaikh Commercial Director Lithium TBC Government Relations Director, Portugal Adriano Barros Executive Admin Assistant Lee Bromfield Country Manager, Portugal Joao Barros Outsourced services
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
finnCap research note: lithium – what’s good and what’s not so good
Source: finnCap note ‘Lithium – what’s good and what’s not so good’, 12 September 2017
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS LITHIUM
finnCap research note: lithium – what’s good and what’s not so good
Source: finnCap note ‘Lithium – what’s good and what’s not so good’, 12 September 2017
CORPORATE COPPER LITHIUM INVESTMENT MINERAL SANDS
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www.savannahresources.com info@savannahresources.com