company presentation - low emission and technology ... · company presentation - low emission and...

16 November 2016

Company Announcements Office Australian Securities Exchange Limited Electronic Lodgement system

Company Presentation - Low Emission and technology Minerals Conference

Plymouth Minerals Limited (“Company”) is pleased to attach a copy of the presentation given at the Low

Emission and technology Minerals Conference in Perth 15-16 November 2011. This presentation focuses

on the Companies highly advanced lithium assets in Spain. The Company also holds 100% interest in two

large, high quality potash Projects in Gabon. Further details regarding exploration and development in

Gabon will be provided shortly to the market.

Yours faithfully

Adrian Byass

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European Lithium Supply for the European Market

Low Emission and Technology Minerals Conference

November 2016

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For Consideration

This presentation has been prepared by Plymouth Minerals Ltd “Plymouth”. This document contains background information about Plymouth current at the date ofthis presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations andperform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in thispresentation.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation orrecommendation in relation to the purchase or sales of shares in any jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financialcircumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particularinvestments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities involve risks which include(among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, Plymouth, its officers, employees, agents and advisors do not make any representation or warranty, express or implied, as tothe currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in thispresentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise are accepted.

This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptionswhich are outside the control of Plymouth. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given theseuncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at thedate of issue of this presentation. Subject to any continuing obligations under applicable law, Plymouth does not undertaken any obligation to update or revise anyinformation or any of the forward looking statements in this presentation or any changes in events, conditions, or circumstances on which any such forward lookingstatement is based.

Competent Persons Statement

Competent Person Statement: The information in this report related to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled byMr A Byass, B.Sc Hons (Geol), B.Econ, FSEG, MAIG an employee of Plymouth Minerals Limited. Mr Byass has sufficient experience relevant to the style of mineralisationand type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the AustralasianCode for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves. Mr Byass consents to the inclusion in the report of the mattersbased on this information in the form and context in which it appear.

The Foreign Resource estimation provided is historical in nature and not reported in accordance with the JORC 2012 Code. A competent person has not done sufficient work to classify the

historical estimates as mineral resources or ore reserves in accordance with the JORC 2012 Code. It is uncertain that following evaluation and/or further exploration work that the historical

estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC 2012 Code. Refer to ASX announcement 15 July 2016.

Disclaimer

Plymouth Minerals Limited ASX: PLH | 2

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Introduction to Plymouth Minerals Limited (ASX: PLH), Lithium

High Value Lithium Project, Experienced People, Spanish Partner, Well-funded, Near Term Production


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European lithium demand has no internal suppliers!

Our High Value Lithium Project is located in the mining friendly part of Spain

Our lithium project is advanced and will benefit from near term production

We are partnered with Sacyr – a large IBEX 35 Listed, +$Billion Company

Well funded with A$8.5m cash at bank and low Enterprise Value of A$16m

10 years of mine permit, exploration, offtake, development in Europe and

our team won the European Mining and Metals “Deal of the Year” (2013)

Plymouth will be a key lithium producer for European markets

The Plymouth Lithium Opportunity


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PLYMOUTH MINERALS IS EXPOSED TO TWO COMPANY MAKING ASSETS

Lithium in Spain, Europe

Earning 75% for ~A$6 million with security of having up to 4 years to do so (plan to accelerate)

Historical mining area

Extensive historical work produced positive feasibility study to directly produce lithium carbonate end product

Near term production potential

Broad zones of high grade from shallow depths

Amenable to open pit optimisation

First class partner and infrastructure

Lithium Asset in Spain – Very Valuable!

Potash in Gabon, Africa

Drill proven

Pre-JORC potash assets with good grade

Shallow depth

Close to port and market


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Capital Structure

ASX code PLH

Share price 17.5c

Shares on issue 139 million

Options on issue (exercisable between 14-35c by Q2 2018)

16.5 million *

Performance shares on resource and PFS hurdles for potash

25 million (JORC resource and PFS)

Market capitalisation EV

$24.4 million $16 million

Cash balance $8.5 million

Debt Nil

Major Shareholders

Corporate Overview

(*) 4M @ 35c strike pending approval at 2016 AGM


Board & Management

(11%)

Institutional (8%)

Top 20 (~58%)

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PLH

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Years of European Resources Experience

Board Overview

Adrian Byass

Geologist, industry-experienced Board member, debt & equity raising success, mine development specialist

EricLilford

Mining Engineer, African operational experience, banking and mining professional +25 years

Humphrey Hale

Geologist, metals and minerals mining expertise, extensive European mine experience, MD (WLF) 7 years

Christian Cordier Accountant, African resources sector investment expert, board experienced

David Valls European/African resources experience, country manager

John Sanders Resources expert, notably potash (ex-MD, ELM, now K2P)


Plymouth team – 10 years of mine permit, exploration, offtake, development in Europe in multiple companies

European Mining and Metals “Deal of the

Year” (2013)

Large (+$200 million) project financing

Syndicated bank debt facilities

Government subordinated bank debt facilities

AIM listings

Project permitting and planning permissions

Offtake agreements (European consumers)

Commercial, acquisition, drilling and

government liaison strengths with high calibre

in-country staff – Spain since 2013

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Lithium – The Opportunity

European demand has no internal suppliers!


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Source: Industrial Metals www.indmin.comSource: 911metallurgist.com

Currently battery technology accounts for 35%of lithium usage, up from 20% 10 years ago

The bulk of future demand increase is driven by rechargeable battery requirements

Lithium-ion batteries are the global standard with massive investment by manufacturers and users ensuring dominance and demand into the future

Near term production will be rewarded

35%

32%

9%

5%

4% 1%14%

Lithium market in 2016

BatteriesCeramics and glasslubricating greasesAir treatmentPolymerAluminiumOther

Lithium – the opportunity


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Source: Industrial Metals www.indmin.comSource: 911metallurgist.com

Currently battery technology accounts for 35%of lithium usage, up from 20% 10 years ago

The bulk of future demand increase is driven by rechargeable battery requirements

Lithium-ion batteries are the global standard with massive investment by manufacturers and users ensuring dominance and demand into the future

Near term production will be rewarded

35%

32%

9%

5%

4% 1%14%

Lithium market in 2016

BatteriesCeramics and glasslubricating greasesAir treatmentPolymerAluminiumOther

Lithium – the opportunity


Equivalent impact of 15ktpa LCE production San JoseThe market will absorb this and more

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• 1st wave On-going

Already existing and developing: The compact and efficient

rechargeable lithium-ion batteries for smartphones and tablets.

• 2nd wave Building momentum

The growing market of plug-in electric vehicles, EVs, as

alternative cars.

• 3rd wave R & D before commercialisation

The high-capacity storage battery units with large scale

energy storage will revolutionise electricity grids.

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Rechargeable batteries - 3 PhasesF

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Electric Vehicles (EVs)• The registration of EVs has multiplied by

up to four times in the last three years• The development of hybrids and full

electric cars in Europe is the target• European countries and industry are

taking lithium ion batteries as the global standard for the next car generation

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For Example - More than 230 cities banned polluting cars in their centres

Bonus up to 10,000 € for the purchase of an electric or hybrid car.

Bonus up to 4,000 € for the purchase of an electric or hybrid car.

Phase 2 – EVs, Phase 3 – Energy Storage

Household and grid storage• In less than 10 years, 97% of storage

batteries will be lithium batteries, representing 6% of the global battery market

• There are 25 notable battery applications within the storage sector

• New projects for households, companies

Store during the day, use during the night

“The challenge is to increase existing storage capacities and increase efficiencies.”

EU Directorate-General of Energy, 2016

Always thinking about potential consumers and partners

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Source: Deutsche Bank, United States Geological Society, company data 13

Lithium World Overview

Status – a handful of converters control 80% of the world’s LCE production. Feedstock production is dominated by 2 regions

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Consider the importance of supply certainty

European demand has no effective internalsuppliers yet, it has historical producers

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Lithium World Overview

Source: Deutsche Bank, United States Geological Society, company data

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• Strong government and publicimpetus over use anddevelopment of lithium batteryenergy storage by industryleaders.

• Security of supply and tailor-made product specs is important.

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Phase 2

Lithium consumption in Europe

BMW GmbH in activity + 2020Samsung in activityA123 System 2016Daimler 2017LG Chem 2017Samsung 2018

PlymouthSan Jose Project

The “Made in Europe” Story

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Phase 2

Development Projects

1. European Lithium PFS – entering DFS

2. European Metals PFS

3. International Lithium Exploration

4. Rio Tinto Scoping

5. Keliber PFS

6. SMP Production -glass and ceramics

7. Plymouth Minerals PFS

8. Dakota Exploration

PlymouthSan Jose Project

Europe is well placed to become a significant LCE producer thanks to past mining and known resources

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Plymouth Minerals’ Lithium Operation in Spain


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Spanish tenure type Australian equivalent Period (min-max) Maximum size (km2)

Comment

Exploration Permit nil 1-2 years 300 No active surface works –mapping, remote sensing etc.

Investigation Permit*

Exploration Licence

3-9 years 90 Can allow drilling and bulk sampling

ExploitationConcession

Mining Licence 30-90 years 30 Mining and treatment

Mining Regulation in Spain

*San Jose – Granted Investigation Permit

Permit key aspects

1) Regulated by the Mining Act2) No Federal involvement in permit (exploration and exploitation) in decision making for

San Jose.3) San Jose project is under the supervision of the Extremadura Mining Department.4) Land Ownership – regulated by the Mining Act with provision for state acquisition to

accelerate development. Clear Court procedure for land acquisition if required.


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Stage Milestone Ownership

Plymouth at its election can acquire 50% of San Jose through

Stage 1(prior to

December 2017)

Complete and submit initial economic appraisal (ASX Scoping Study equivalent) and expend €1.5

million (A$2.2 million) in exploration

50% Plymouth

Plymouth at its election can acquire a further 25% and increase to 75% of San Jose through

Stage 2(within 3 years of

completion of Stage 1)

Complete Feasibility Study and expend a minimum of €2.5 million (A$3.7 million) in exploration (total

€4.0 million to reach 75%)

75% Plymouth

Image (left) shows the San Jose historical processing plant buildings. This dated to

underground tin mining operations (ceased). This process facility and portion

of the hill in background showing prior mine disturbance are located within

proposed optimised open pit as reported in historical Feasibility Studies

• 25% tax rate• Zero royalties

San Jose Joint Venture


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Valoriza Mineria Senior Management team

$200 million facility with Macquarie Bank for project development

Valoriza Mineria – wholly owned by SACYR Formed in 2014 2015 - $200M Line of Credit with Macquarie

Expanding into mining in their backyard with strategic partnerships

Joint Venture with Lundin Mining (Cu) Joint Venture with Plymouth Minerals Limited

(Li)

IBEX 35, +$Billion market capitalisationMajor international construction and water

treatment operations

100%

Sacyr - Top tier partners

Construction and water treatment

Mining


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Lithium - Earning 75% of a lithium deposit in Spain

Highly advanced, near-term start potential – 2019 potential start

1985-91 positive historical feasibility study, +$10M expended already

Process flow sheet solution to saleable lithium carbonate (LCE)

Spain - excellent infrastructure – no royalty and 25% tax rate

Outcomes of study High confidence foreign

resource - 8.4km drilling

High-grade zones, +1.1Mt LCE foreign resource

Process flow sheet Low risk, low cost, bulk

mine open-pit likely Open at depth and to

north In expanding

(European) markets

San Jose Lithium Deposit


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Resource Area – San Jose

Plymouth earning 75%

Caceres

1km

All tenure has been applied for and is included in the JV agreement between Sacyr (VM) and Plymouth

Original tenureAdditional tenure


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Historic Feasibility Study: Highly advancedfeasibility work 1985-1991 – conducted;

1.1Mt LCE contained – 1% Li2O High confidence foreign resource - 8.4km drilling High-grade zones, +1.1Mt LCE LCE (battery grade) ~US$7-10,000/t Bulk sample for met test work – process flow sheet Low risk, low cost, bulk mine deposit open-pit likely Open at depth and to north In expanding (European) markets

The 1993 summary of the Feasibility Study report stated “Sufficient tests have been carried out to be certain of the process in general, the recoveries of the metal and sulphuric acid and

the commercial quality of the products obtained.” (Banco Exterior de Espana, BEX, 1993)

Drill pattern and cross section location Cross section – mineralisation from surface Cross section and old infrastructure San Jose

Foreign Resources and Mining Study


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$3.66 $9.55

$17.68 $27.44

$39.64

$77.37

$120.04

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

European Lithium Dakota Minerals Plymouth Core exploration Lithium Australia European Metal Neometals

Resource identified

Metallurgical testing?

Flow sheet?

Feasibility study?

Saleable Lithium Product?

Peer Comparison

EV (A$m) of ASX Lithium Players


Ente

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Source ASX as at 7/11/16

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$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

EuropeanLithium

Plymouth(Lithium)

DakotaMinerals

Plymouth Lithium PowerInternational

ProspectResources

LithiumAustralia

GlobalGeoscience

EuropeanMetal

PilbaraMinerals

Enterprise Value

Plymouth ASX.PLH Lithium only

Pilbara, ASX.PLS (m/cap $583M)

Source ASX as at 7/11/16

Plymouth Full Valuation (lithium and potash)

PLH market capitalisation $24M and EV $16M with lithium and potash. Market capitalisation and EV halved ($8M) to show lithium-only valuation

Peer Comparison


ASX Listed Companies

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Why is this such a good project?

Clear Pathway – 100% JV ownership, supportive government, top tier

partner, Plymouth earning 75% sole election

Tonnes in ground – +1Mt LCE and open - high value foreign resource

Simple Mining Method - open pit, outcrops at surface, bulk mining

Process – historical pathway, confirmation work underway

Market – existent and growing, political support to assist

High volume of work commenced


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Environmental baseline (commenced – 12 months)

Process flow sheet (commenced – regular output)

Drill for JORC (Q4 2016, carry into 2017)

Initial Resource (Q1 2017)

PFS (Q3 2017)

Earn Stage 1 – initial 50% (Q3 2017)

Start DFS Stage 2 (Q4 2017)

Consistent and value

adding news-flow

Lithium News-flow


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Thank you

Plymouth Minerals Limited

T: +61 8 6461 6350 (AUS)

A: Level 1, 329 Hay Street, Subiaco,

WA Australia, 6008

W: www.plymouthminerals.com

INVESTORS:

Adrian Byass

Executive Chairman

P: +61 410 305 685

E: [email protected]

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mailto:[email protected]

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