July 2015
Sourcing the raw materials of the future
ASX: SYA
Entitlement Issue Presentation
Entitlement Issue Presentation Sourcing the raw materials of the - - PowerPoint PPT Presentation
ASX: SYA Entitlement Issue Presentation Sourcing the raw materials of the future July 2015 Disclaimer COMPETENT PERSON STATEMENT The information in this report that relates to Exploration Results is based on information compiled by Mr Simon
July 2015
Sourcing the raw materials of the future
ASX: SYA
Entitlement Issue Presentation
Disclaimer
COMPETENT PERSON STATEMENT The information in this report that relates to Exploration Results is based on information compiled by Mr Simon Attwell, a Competent Person, and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Attwell is an employee of Attgold Pty Ltd (“Attgold”) which provides geological services to Sayona. Attgold is a financial beneficiary if Sayona exercises its option to purchase agreement over the East Kimberley Graphite project. Mr Attwell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Attwell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. FORWARD LOOKING STATEMENTS This presentation may contain certain forward looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond Sayona Limited’s control. Actual events or results may differ materially from the events or results expected or implied in any forward looking statement. The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward looking statements will be or are likely to be fulfilled. Sayona Limited undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation (subject to securities exchange disclosure requirements).The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Reference to Previous ASX Releases This presentation refers to the following previous ASX releases:
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and all material assumptions and technical parameters 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 been materially modified from the original market announcements.
Investment highlights
Strategic entry into the graphite market
graphite
TGC, jumbo and large graphite flakes, within a 20km strike length target horizon
Itabela, Brazil Board and management
the rapidly growing, high-value, technology and battery sectors
scale and pilot testing (38 tonnes processed into final concentrates)
Brazil is the world’s second largest producer of graphite, including large flake East Kimberley, Western Australia
Corporate snapshot
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Capital raising summary
EQUITY RAISING Non renounceable entitlement offer inclusive of accelerated shortfall component to raise approximately [$2.0m] if fully subscribed with approximately [x,00,000] new ordinary shares to be issued. Partially underwritten RETAIL ENTITLEMENT OFFER $[0.0] per share + free attaching listed option exercisable at $0.0 for every share subscribed to under the offer .[EXPIRY DATE} [% discount to current share price] [% discount to 10 day VWAP] [% discount to 30 day VWAP] Based on closing price $0.0 23rd July 2015 Retail entitlement offer period from July-July USE OF PROCEEDS Exploration East Kimberley project Itabela Project Due Diligence Working capital for Sayona Mining Ltd Expenses of the offer RANKING Shares will rank equally with existing shares Sayona is undertaking a $2.0 million (approx.) partially underwritten equity capital raising via a 1 for X accelerated non–renounceable entitlement offer, comprising an institutional accelerated component and a retail component
Capital structure post Entitlement issue
Assuming entitlement issue fully subscribed
Ordinary shares pre-raising 411.5 m
m] Total ordinary shares [m] ASX listed options @ [.0 cents] m] Market capitalisation @[ $0.0 per share] [A$m] Cash at bank *(Inclusive of June 30 balance of A$0.72m and after expenses of offer) A$2.6 m
Use of funds
A$ Use of Funds Capital raised pursuant to offering $2,055,000 Use of funds: Exploration expenditure#:
$1,200,000
$180,000 Total Projects $1,400,000 Working Capital $535,000 Expenses of the offer $120,000 Total Funds Used $2,055,000
Date Accelerated Offer Announce capital raising details (offer booklet, 3B) (pre open) TBC Accelerated Entitlement Offer (AEO) opens TBC Accelerated Entitlement Offer(AEO) closes TBC Announce outcome of AEO (pre-open) TBC Trading resumes on an ex-entitlement basis TBC Record Date for determining entitlements for the offer (by 7pm) TBC Settlement of AEO & Placement Shares TBC AEO shares issued and normal trading commences TBC Retail Offer Lodge retail offer document with ASX TBC Retail offer document and acceptance forms dispatched TBC Retail offer opens TBC Retail offer closes (14 days) TBC Retail shortfall settlement TBC Final allotment of shares (into investors holdings) / lodge updated Appendix 3B (if required) TBC Normal trading commences TBC Dispatch of holding statements TBC
SYA Accelerated Non-Renounceable Entitlement Offer Timetable
ASX: SYA THE EAST KIMBERLEY GRAPHITE PROJECT
The project is close to an export port and Asian markets
flake graphite province
Company snapshot
SYA’s strategy is to source and develop high purity flake graphite for use in the rapidly growing, green technology sectors
TECHNOLOGIES GROWTH NEW
SYA value proposition
Targeting proven, large flake, high purity graphite district – suitable for use in new green technology sectors Very low enterprise value compared to industry peers Major shareholders and Board have strong track record of successful investments Close proximity to target technology markets in Asia First world country with stable taxes and royalties Well established mining district with excellent infrastructure to support low costs
Share price re-rating driven by:
Realisation of East Kimberley project potential New acquisition opportunities Active stock promotion Strategic alliances
Market Capitalisation ($A million)
00 10 20 30 40 50 ASX TSX
Average Market Cap. of listed Graphite companies*
$32 m $23 m $12 m $574 m
Syrah
$16 m
*ASX Closing 28/07/15. Based on 15 companies, excluding Syrah. TSX Closing 27/07/15. Based on 7 companies
East Kimberley project location
Resource – 7.1Mt @ 4.73%TGC* Market cap – A$15 million
*www.lambooresources.com.au
Perfectly placed to supply Asian markets
ASIAN MARKETS
A major new graphite discovery
Jumbo and large flake size demonstrated
Geophysics highlights 20km structure
20 kilometres
Immediate focus on delineating drill targets
Itabela Graphite Project
STRONG PROJECT FUNDAMENTALS
13,316ha tenement package Located in a proven large flake graphite province Graphite qualities demonstrated through extensive bench and pilot test work (38 tonnes processed) Simple processing using proven, flotation technology Simple deposit geology Favourable logistics and infrastructure - ports, roads, labour, airport Itabela is an advanced staged graphite project with a substantial catalogue of drilling and extensive pilot scale test work The Company believes the project can be fast tracked towards production by completion of a Feasibility Study, permitting and securing off-take partners Itabela is extensively tested:
Itabela – strategically located within a proven graphite province
mines nearby
province outside of China with over 70 years of continuous large and jumbo flake production
largest producer of graphite in the world
Itabela Term Sheet
fund the acquisition price
finance options in Brazil
Targeting large flake graphite at Itabela SYA’s strategy is to source and develop high purity flake graphite for use in the rapidly growing, green technology sectors
Bench-scale testing of Itabela graphite
Pilot scale test work demonstrating recovery
Pilot scale test work
Itabela has been the subject of extensive metallurgical test work Simple process flow sheet
Tight, supportive ownership structure
million shares
DIRECTORS
CAPITALISATION
TOP 20
SHARES
Market cap Cash*
As at June 30 2015
SHAREHOLDERS TRADING EXCHANGE
Strong team with track record of success
Corey Nolan
Chief Executive Officer
Dan O’Neill
Managing Director
Allan Buckler
Non-Executive Director
James Brown
Non-Executive Director
§ 40 years of development and operating experience in the resources sector § Built large-scale mining operations in Australia and Indonesia § Former director and chief operations officer for New Hope Corporation § 35 years of operating experience in the resources sector § Significant coal development and operating experience including 22 years with New Hope Corporation § Managing Director of ASX listed lithium development company, Altura Mining Ltd § 35 years of resources industry experience § CPA and previously Company Secretary of companies including Orocobre Ltd (founding director), Elementos Ltd and ActivEx Ltd § 35 years of resources industry experience § Geologist with significant project development and public company experience § Founding director of lithium company, Orocobre Ltd
Paul Crawford
Executive Director
§ 23 years of resources industry experience § Strong combination of corporate and capital markets experience § Previously Managing Director of South American focused exploration company, Elementos Limited
Graphite Industry Overview … solution to global problems
CO2 NOX, CO
Graphite … solution to global problems
Why Graphite?
FORECAST DEMAND FOR GRAPHITE IN ELECTRIC VEHICLES TO INCREASE OVER 10 YEARS THE BATTERY MEGA FACTORIES ARE COMING
Source: seekingalpha.com
Graphite – a diverse and critical raw material
GRAPHITE IS EVERYWHERE GRAPHITE HAS UNIQUE PROPERTIES
Light Lubricity Strong Non-corrosive Heat resistant Conductive Lubricants Refractories Applications are growing Electronics New technologies Batteries
Key Graphite growth markets
Super- capacitors Graphene Lithium Ion Batteries Pebble Bed Nuclear Energy
Lithium Ion Battery Market
ELECTRIC/HYBRID VEHICLES SALES
Nuclear Power Super Capacitors
Graphene – the new super material*
* Requires further technical development to become commercial
Flake Graphite – the highest value product
DRIVEN BY NEW TECHNOLOGIES
LOW PURITY LOW PRICE LOW GROWTH
LUMP
FLAKE FLAKE GRAPHITE
AMORPHOUS
MEDIUM PURITY LOW MARKET FLAT GROWTH
GRAPHITE TYPES
HIGHEST PURITY HIGHEST PRICES LIMITED SUPPLY HIGHEST GROWTH
Sayona to target high-growth segments
www.sayonamining.com.au
ACN 091 951 978 Suite 68, 283 Given Terrace Paddington, Queensland, 4064 Brisbane, Australia Ph: +61 7 3369 7058 info@sayonamining.com.au