Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals

Page created by Jamie Vaughn
 
CONTINUE READING
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
TSXV: STS | OTCQB: STSBF

Santa Cruz
Graphite Project
Road To Production in 2022
 July 2019 Corporate Presentation
“Fundamental Value in a Premier Battery Metals Jurisdiction”

                                    Corporate Presentation: September 2021
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Cautionary and Forward-Looking Statements

This presentation includes certain statements that constitute “forward-looking statements”, and      the extent any forward-looking statements constitute future-oriented financial information or
“forward-looking information” within the meaning of applicable securities laws (“forward-            financial outlook, such statements are being provided to describe the current anticipated
looking statements” and “forward-looking information” are collectively referred to as “forward-      potential of the Company and readers are cautioned that these statements may not be
looking statements”, unless otherwise stated). These statements appear in a number of places         appropriate for any other purpose, including investment decisions. Forward-looking statements
in this presentation and include statements regarding our intent, or the beliefs or current          speak only as of the date those statements are made. Except as required by applicable law, we
expectations of our officers and directors. Such forward-looking statements involve known and        assume no obligation to update or to publicly announce the results of any change to any
unknown risks and uncertainties that may cause our actual results, performance or                    forward-looking statement contained or incorporated by reference herein to reflect actual
achievements to be materially different from any future results, performance or achievements         results, future events or developments, changes in assumptions or changes in other factors
expressed or implied by such forward-looking statements. When used in this presentation words        affecting the forward- looking statements, except as required by law. If we update any one or
such as “believe”, “anticipate”, “estimate”, “project”, “intend”, “expect”, “may”, “will”, “plan”,   more forward-looking statements, no inference should be drawn that we will make additional
“should”, “would”, “contemplate”, “possible”, “attempts”, “seeks” and similar expressions are        updates with respect to those or other forward-looking statements. You should not place undue
intended to identify these forward-looking statements. Forward-looking statements may relate         importance on forward-looking statements and should not rely upon these statements as of any
to the Company’s future outlook and anticipated events or results and may include statements         other date. All forward-looking statements contained in this presentation are expressly qualified
regarding the Company’s future financial position, business strategy, budgets, litigation,           in their entirety by this cautionary statement.
projected costs, financial results, taxes, plans and objectives. We have based these forward-
looking statements largely on our current expectations and projections about future events and       Confidential Material - This document contains confidential and private material that shall not
financial trends affecting the financial condition of our business. These forward-looking            be re-transmitted to other parties that not its original addressee. All information contained
statements were derived utilizing numerous assumptions regarding expected growth, results of         herein are for informative purposes and shall not be regarded as an offer, solicitation for any
operations, performance and business prospects and opportunities that could cause our actual         financial transaction nor a valuation or commitment of financial / technical performance.
results to differ materially from those in the forward looking statements. While the Company
considers these assumptions to be reasonable, based on information currently available, they         Cautionary Note: This PEA is considered by STS to meet the requirements of a Preliminary
may prove to be incorrect. Accordingly, you are cautioned not to put undue reliance on these         Economic Assessment as defined by Canadian Securities Administrators' National Instrument 43-
forward-looking statements. Forward-looking statements should not be read as a guarantee of          101 ("NI 43-101") Standards of Disclosure for Mineral Projects. The economic analysis contained
future performance or results.                                                                       in the technical report is based, in part, on Inferred Resources (as defined in NI 43-101) and is
                                                                                                     preliminary in nature. Mineral Resources that are not Mineral Reserves do not have
To the extent any forward-looking statements constitute future-oriented financial information        demonstrated economic viability. There is no guarantee that all or any part of the Mineral
or financial outlooks, such statements are being provided to describe the current anticipated        Resource will be converted into a Mineral Reserve. Inferred Resources are considered too
potential of the Company and readers are cautioned that these statements may not be                  geologically speculative to have mining and economic considerations applied to them and to be
appropriate for any other purpose, including investment decisions. Forward-looking statements        categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drilling
are based on information available at the time those statements are made and/or                      will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral
management's good faith belief as of that time with respect to future events, and are subject to     Resources. Mineral Resources that are not Mineral Reserves do not have demonstrated
known and unknown risks and uncertainties, including those risks and uncertainties outlined          economic viability. There is no certainty that the reserve's development, production and
under “Risk Factors” in our most recent AIF, that could cause actual performance or results to       economic forecasts on which the PEA is based will be realized.
differ materially from those expressed in or suggested by the forward-looking statements. To

    TSXV: STS | OTCQB: STSBF                                                www.southstarbatterymetals.com                                                                                      2
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
South Star Mining Highlights
Key Company Highlights
 •   Management team with proven track record of taking
     projects into production & operations in Brazil

 •   Plant construction planned for H2 2021

 •   Current market capitalization only 2.5% of project NPV
     (pre-financing)

 •   Strong graphite demand in Brazil: high-tech battery market as
     well as steel-making, foundries, lubricants, electronics and
     automotive industries

 •   Graphite uses include: lithium-ion batteries, graphene, fire
     resistant insulation and coatings and construction materials

 •   Two-phased approach to minimize risks and intelligently
     allocate capital for shareholder value:
        ✓ Phase 1 – 5,000tpy Concentrate Pilot Plant
        ✓ Phase 2 – 25,000tpy Concentrate Plant                      Industrial      US$500 to US$2,500
                                                                     graphite        per tonne
 •   Low CAPEX (
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Santa Cruz Graphite Project Advantages

                                           KEY PROJECT HIGHLIGHTS

            Santa Cruz project situated
            in second largest flake graphite
                                                                  LARGE &
            producing district in the world                    EXTRA-LARGE               “The larger the flake size,
            • 14% of global production in 2018                 graphite flakes             the higher the price!”

                                   GEOLOGY, EXPLORATION & RESOURCES

                                                                                          Large Geologic Upside
                                                                                              of project unexplored Entire
    NI 43-101 PFS & updated
    Resource Estimate completed
                                               Open-pit deposit within
                                               13,000 ha property
                                                                                95%           land package mineralized according
                                                                                              to Brazilian Mining Authority

                                                                                    Open at depth & along strike
                                                                                          10-15   Drill-ready targets

                                               METALLURGY & PROCESS

                                                                   Excellent large flake ore            Additional tests yielded
                                       Produced quality                                                   high purity, battery
     Completed bench scale             concentrates and                  Approximately                     quality products
     & 30 tonne pilot plant           marketable flake sizes
     testing programs
                                                                         65% of ore
                                      95-99% Cg                          > 80 Mesh                     Low impurities & Highly
                                                                                                         crystalline structure

 TSXV: STS | OTCQB: STSBF                      www.southstarbatterymetals.com                                           4
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
STS Share Information

   Stock Information as of August 30, 2021
   Cap Table (000s)*
   Total Outstanding        77,419

   Warrants @ $0.06         5,600     (Exp 05/2024)

   Warrants @ $0.15         25,015    (Exp 02/2024)

   Options @ $0.15          90        (Exp 06/2024)

   Options @ $0.30          900       (Exp 05/2022)

   Options @ $0.45          600       (Exp 07/2023)

   Options @ 0.055          2,660     (Exp 08/2025)

   Options @ 0.25           120       (Exp 04/2023)
   Fully Diluted            112,404
   Market Cap @ CAD $0.16   $12,4 M

“Graphite demand just for battery storage is expected to grow 494% by 2050 to a total demand of 4.6Mt.
    That doesn’t even consider growth coming from industrial or other high tech uses like graphene or
       expandable. It is one of the principal critical metals that will require the most investment. ”

     TSXV: STS | OTCQB: STSBF              www.southstarbatterymetals.com                       5
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Corporate Structure

•     South Star Battery Metals Corp. is a public company
      traded on the Toronto Venture Stock Exchange under                     South Star Battery
      the symbol STS and on the OTCQB under symbol                             Metals Corp.
      STSBF.                                                                    (TSXV: STS)
•     Brasil Graphite Corp. is a wholly owned subsidiary
      incorporated in the Cayman Islands.                                          100%
•     Brasil Grafite Mineração Ltda. (“BGSA”) is a is a wholly
      owned exploration and development company
      focused on developing the Santa Cruz Graphite Project                  Brasil Grafite Corp.
      (“Project”) in the state of Bahia, Brazil.

•     BGSA owns 100% of the Santa Cruz Graphite Project.                           100%

                                                                               Brasil Grafite
                                                                              Mineração Ltda

                                                                                   100%

                                                                                 Santa Cruz
                                                                              Graphite Project

    TSXV: STS | OTCQB: STSBF                      www.southstarbatterymetals.com                    6
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Leadership Team
BOARD OF DIRECTORS

                                               Dave McMillan
                                                  Chairman

                                                Priscila Costa
 Richard Pearce           Eric Allison                              Dan Wilton               Marc Leduc
  Exec. Director          Exec. Director
                                                    Lima           Indep. Director       Indep. Director
                                                Indep. Director

MANAGEMENT
                                               Richard Pearce
                                               President & CEO

                                                                           CHF Capital
                   Eric Allison               Samantha Shorter
                                                                             Markets
                   Business Dev.                     CFO
                                                                        Investor Relations

 TSXV: STS | OTCQB: STSBF                  www.southstarbatterymetals.com                                  7
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Investment Highlights
   Phase 1 Construction Ready

                                 Mining Friendly District                               Open Pit Mining & No Drill & Blast
                      With 80 + years of graphite production
                                                                                        With Low Strip Ratio

                                                                                                      Simple, Proven Flowsheet
          Experienced Management                                                                      & Technology
           Proven Mine & Plant Builders

                                                                    Simple
                                                                   Operations
            Excellent Infrastructure
With gas, electric and excellent logistics
                                                                                                         No Tailings Dam
                                                                                                         With small environmental footprint

                      Fully Permitted & Licensed
                                                                                        Ready for Construction
                               Environmental & mining

       TSXV: STS | OTCQB: STSBF                                www.southstarbatterymetals.com                                          8
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Investment Highlights
Phase 1 Derisked
                      All licenses &              Stepping                                    Low OPEX
   Proven tested     permits are valid        into production              Low           in proven producing
  process circuit      & up-to-date              in phases          environmental risk          district

                                                   MIDDLE

       Low                                                                                   Low capital
  geological risk                                                                             intensity

                            LOW                                              HIGH
                                              PROJECT RISK

   Established
   utilities and                    Supply                      Supply chain              Projected increase
  infrastructure                  imbalance                     diversification               In demand

 TSXV: STS | OTCQB: STSBF                www.southstarbatterymetals.com                                        9
Santa Cruz Graphite Project - Road To Production in 2022 "Fundamental Value in a Premier Battery Metals Jurisdiction" - South Star Battery Metals
Santa Cruz Graphite Project
Phase 1 Construction Ready

INFRASTRUCTURE COMPETITIVE ADVANTAGES

Excellent Infrastructure

                                                     Major port      Experienced
                             Power, gas,
  1.3km                       water all
                                                     of Ilheus is
                                                   270km away via     workforce
   from paved                within 5km             paved federal      nearby
     highway                                          highways

  TSXV: STS | OTCQB: STSBF          www.southstarbatterymetals.com                 10
ESG & Sustainability
ESG & Sustainable Production is part of our Corporate DNA

      ENVIRONMENTAL                     +             SOCIAL                     +            GOVERNANCE
✓ Renewable sources provide 80% of      ✓ First major industry in the region         ✓ Review, evaluate and update
  Brazilian energy generation           ✓ Committed to responsible, equitable          regularly governance policies
✓ Low cost, tax-incentive solar power     hiring practices in partnership w/         ✓ 2 Independent Directors
  project being studied                   community/municipality                     ✓ Executive management primarily
✓ Sustainable tailings management       ✓ Phase 1 - 60-65 Est. Direct Jobs             lives in Brazil and is on-site and
  with filtered tailings/dry stack      ✓ Phase 1 – 350 Est. Indirect Jobs             hands - on
✓ Effective water management & low      ✓ Phase 2 - 120-125 Est Direct Jobs          ✓ TSX and OTC listing
  freshwater demand with process        ✓ Phase 2 – 700 Est. Indirect Jobs           ✓ Audited financials
  water recirculated                    ✓ Committed to provide community             ✓ Compensation tied to ESG
✓ Waste characterized as inert/non-       training & educational opportunities         performance
  dangerous                             ✓ Focus on worker safety w/                  ✓ Committed to joining key industry
✓ Low strip ratio                         compensation tied to performance             organizations and ESG frameworks
✓ Low vegetation suppression for        ✓ Committed to transparency and open         ✓ Committed to transparency and
  project construction (
Global Markets
                        Projected Large Increase in Graphite Demand
• Brazil has large internal demand for natural graphite (80-90kt/p.a.)
• Graphite has many uses outside of battery metals
    • High tech, graphene, military, etc…

•    Natural graphite has advantages over synthetic:
      • Lower cost
      • Smaller environmental impacts
      • Easier to scale
      • Higher energy density

• Need 10-15 new mines by 2025 to meet 2x
  demand

    TSXV: STS | OTCQB: STSBF          www.southstarbatterymetals.com     12
Global Markets
                                      Graphite Demand is in a Perfect Storm
                            2018 to 2050   For Battery Metals Supply
                                                                                                            2050 Demand Kt
                                Growth % (t)
                                                                              Aluminum                                                             5,583
   Graphite                                                   494%
    Lithium                                                   488%              Graphite                                                   4,590
      Cobalt                                               460%                    Nickel                                2,268
     Indium                           231%                                        Copper                        1,378
 Vanadium                           189%                                             Lead                781
      Nickel                99%                                              Manganese                   694
       Silver             56%
                                                                                   Cobalt               644
Neodymium             37%
                                                                                  Lithium             415
        Lead         18%
       Moly          11%                                                      Chromium                366
 Aluminum            9%                                                       Vanadium            138
     Copper          7%                                                              Moly        33
Manganese         4%                                                                Silver       15
 Chromium        1%                                                         Neodymium            8
        Iron     1%
                                                                                Titanium         3
   Titanium      0%
                                                                                  Indium         1.73
                0%        100% 200% 300% 400% 500% 600%
                                                                                             0          1,000    2,000     3,000   4,000   5,000   6,000
Source: 2020 World Bank - Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition 2DS Scenario

      TSXV: STS | OTCQB: STSBF                             www.southstarbatterymetals.com                                                     13
Global Battery Market
                       Brazil - Premier Battery Metals Jurisdictions
• Brazil is largest graphite producer of high-quality graphite outside of China with 80+ years of
  continuous production and 3rd most important country in EV Battery Supply Chain.

          Graphite Supply 2020                                  EV Supply Chain Ranking
              by Country                                              By Country
  TSXV: STS | OTCQB: STSBF            www.southstarbatterymetals.com                            14
Santa Cruz World-Class Flake Sizes

Representative Santa
Cruz Graphite Project                                        Flake Percentage +80 Mesh
Concentrates

Mesh Size (#)   Distribution        %Cg

    30#              4%             95%

    50#             32%             95%

    80#             27%             97%

    140#            17%             97%

   -140#            20%             97%

                Recovery 88%

+50 mesh with 98% Cg and +99.9% Cg
concentrates were also produced during
testing.

63% of concentrates contained jumbo to large
flakes (+30, +50 and +80 mesh).

  TSXV: STS | OTCQB: STSBF                     www.southstarbatterymetals.com            15
2019 Santa Cruz Update Resource Estimate*

The 2019 updated Resource Estimate shows strong geologic
potential and continuity of high-quality graphite
mineralization in friable, easily mined, weathered materials.
New areas with at-surface mineralization were discovered,
and the deposit is open both along strike and at depth.

 Santa Cruz Graphite
 2019 Mineral Resources Update
 Summary*

                           Tonnage                       C                   In-situ Graphite
    Category
                              (t)                       (%)                          (t)
    Measured              3,947,550                    2.40                       94,740
    Indicated            10,955,570                    2.25                       246,500
    Total M&I            14,903,100                    2.29                       341,240
     Inferred             7,911,450                    2.32                       183,550

* Cautionary Note: This updated resource estimate is considered by STS to meet the requirements of a
resource and reserve estimate technical report as defined by Canadian Securities Administrators' National
Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any
part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered
too geologically speculative to have mining and economic considerations applied to them and to be
categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drilling will be
required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources.

    TSXV: STS | OTCQB: STSBF                                               www.southstarbatterymetals.com   16
2020 Santa Cruz Preliminary
Feasibility Study*
 The financial analysis in 2020 PFS shows very favourable and
 robust results that highlight the Santa Cruz Project’s advantages in                                                                           Santa Cruz Graphite
 the graphite sector.                                                                                                                           Mineral Reserves Summary*
Key Financial Results
                                                                                                                                                   Mineral                                                                             In-situ
  Post-tax NPV5%                                                                        US$ 81,200,000                                                                           Tonnage                          Cg
                                                                                                                                                   Reserve                                                                            Graphite
  Post-tax all Equity IRR                                                               35% p.a.                                                   Estimate
                                                                                                                                                                                      (t)                        (%)                        (t)
  Post-Tax Free Cash Flow (LOM)                                                         US$129M
                                                                                                                                                     Proven                     3,989,635                       2.49                    99,340
  Payback Period                                                                        4 years
                                                                                                                                                   Probable                     8,318,795                       2.35                   195,490
                                                                                                                                                  Total P&P                    12,308,500                       2.40                   295,400
Key Parameters
  Mining Method                                                      Open Pit
  Process/Metallurgy                                                 Milling & Flotation
  Life of Mine                                                       12 years
  Annual Production (years 1-2):                                     5,000 t p.a.
  Annual Production (year 4-11):                                     25,000 t p.a
  Capital Costs – Phase 1                                            US$ 7,300,000
  Capital Costs – Phase 2                                            US$ 27,200,000
  Avg. Operating Costs(LOM):                                         US$ 396 per tonne of conc.
   Avg. Weighted Price:                                               US$ 1287/t
* Cautionary Note: This PFS is considered by STS to meet the requirements of a Preliminary Feasibility Study as defined by Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. The economic
analysis contained in the technical report is based, in part, on Inferred Resources (as defined in NI 43-101) and is preliminary in nature. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that
all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined
in NI 43-101). Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources. There is no certainty that the reserve's development, production and economic forecasts on which the PEA is
based will be realized.

     TSXV: STS | OTCQB: STSBF                                                                   www.southstarbatterymetals.com                                                                                                                    17
STS Value Proposition

• Currently Undervalued When Compared to Peer Group
      Enterprise Value / T of Cg                 Enterprise Value as % of NPV

  TSXV: STS | OTCQB: STSBF    www.southstarbatterymetals.com               18
STS Value Proposition

• Low CAPEX and First Quartile OPEX In a District with 80+ Years of Continuous
  Operations
 Capital Intensity US$/T of Capacity                      OPEX US$/T

 TSXV: STS | OTCQB: STSBF    www.southstarbatterymetals.com              19
STS Value Proposition

• Low CAPEX and High Return on Investments
                                                                             CAPEX vs IRR (ATAX)
               450
                                                ZEN

               400
                                           GPH
                                                                                                            Net Present Value
               350
                                                                                                            per Share
               300                                           NOU
                                                                                                                 MNS
CAPEX - US$M

               250                              LLG                                                         Outstanding: C$2.52
                                                                                                            Fully Diluted: C$2.13
               200

                                  SRG                        RNU     EGR
                                              FMS
               150                                                            WWR
                            NGC
                                                         TON
                                                               BEM              BKT
               100
                                                      NEXT           GPX

                                              LML
               50                       VRC                    STS

                -
                     0.0%               20.0%                        40.0%              60.0%       80.0%         100.0%       120.0%
                                                                                      IRR - ATAX

     TSXV: STS | OTCQB: STSBF                                                www.southstarbatterymetals.com                             20
STS Value Proposition

 • Compelling Value Proposition with Construction Ready Project
                                                                                   Study Phase Vs. Market Cap
                                       1000
                                                                                                                                                NOU

                                                                                                                    TLG
Market Cap (Log $M Xchange Currency)

                                                                                                                                                EGR
                                                                                                                                                MNS         NEXT
                                                                                       WWR                         SVM

                                       100                                                                                                      BKT
                                                                                                                                                FMS
                                                                                        GPH                                                                 WKT BAT
                                                             CY         GRAT                                                                    SRG
                                                                                                                                          RNU              VRC
                                                                                                                                                           NG
                                                      LMR                                       CVE                          HXG
                                                                        BSM             BEM
                                                            GEM
                                        10                  EGA         LION
                                                             SJL                                              STS Ph 1&2                                              STS Ph 1

                                         1
                                              0                    TR
                                                                    1                         PEA
                                                                                               2                       PFS
                                                                                                                        3                             FS
                                                                                                                                                       4                 Licensed
                                                                                                                                                                              5 &
                                                                                                    Study Phase                                                         Detailed Eng
                                                        Market Cap < C$20M     C$20M < Market Cap < C$50M   C$50M < Market Cap < C$100M   Market Cap > C$100M

                                       TSXV: STS | OTCQB: STSBF                        www.southstarbatterymetals.com                                                            21
Why South Star?
Near-term graphite producer with responsible and sustainable production, committed to tangible,
long-term benefits for employees, communities, and stakeholders.

                          ✓ PFS NI43-101 & updated
        Santa Cruz          Resource                             Time           ✓ Expanding demand in
         Project          ✓ Pilot plant testing
                                                                                  Brazil
                            completed
                                                                                ✓ Growing Li-Ion battery
                          ✓ High proportion of large
                                                                                  market
                            flakes
                                                                                ✓ New markets developing
                          ✓ 1st Quartile OPEX
                                                                                ✓ First production by
                          ✓ Low CAPEX
                                                                                  the end of 2022
                          ✓ Robust economics
                          ✓ Large geological upside

                          ✓ Mining friendly
          Brazil            jurisdiction                          Team          ✓ Management &
         Location         ✓ Great infrastructure                                  Directors hold ~25%
                          ✓ Great logistics                                     ✓ Experienced mine
                          ✓ Prolific graphite                                     builders, operators and
                            producing region                                      financiers
                          ✓ Experienced workforce                               ✓ Decades of experience
                          ✓ Large internal market for                             in Brazil
                            graphite in Brazil                                  ✓ ESG is in our DNA

  TSXV: STS | OTCQB: STSBF               www.southstarbatterymetals.com                                 22
TSXV: STS | OTCQB: STSBF

For more information,
please contact:

Richard Pearce
CEO/President

CHF Capital Markets (Canada IR)
Iryna Zheliasko, Manager
Phone: 416 868 1079 x 229
Email: iryna@chfir.com

RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: southstar@rbmilestone.com

Mr. Dave McMillan, Chairman
Email: davemc@telus.net

Email: info@southstarbatterymetals.com
Web: www.southstarbatterymetals.com
Twitter: @southstarbm
Facebook: @southstarbatterymetals
LinkedIn: @southstarbatterymetals

Suite 1200 - 750 West Pender Street      R. Barão do Triunfo, 612 – Cj 2210
Vancouver, British Columbia              Brooklin Paulista – São Paulo SP
Canada, V6C 2T8                          Brasil, 04602-002
APPENDIX 1 - PHASE 1 PROJECT DETAILS
 (5,000 TPY PILOT PLANT)
  20 Year Mine Life with Terminal Value

TSXV: STS | OTCQB: STSBF   www.southstarbatterymetals.com   24
Path to Production – Macro Schedule
                                                    2021 Key Milestones

                                                    ▪   Secure Offtake/Supply Agreement
                                                    ▪   Complete Debt/Equity Finance for
                                                        Phase 1
                                                    ▪   Begin Construction within 2-3
                                                        months of financing
                                                    ▪   10-12 month construction schedule

 TSXV: STS | OTCQB: STSBF   www.southstarbatterymetals.com                           25
PHASE 1 – LICENSING & PERMITTING
• Environmental Permit Approved for 4 Years

• Mining License Approved for 3 Years by ANM on Dec 31, 2020
• Phase 1 Operations are fully licensed
• Permits and licenses can be renewed

  TSXV: STS | OTCQB: STSBF   www.southstarbatterymetals.com    26
PHASE 1 – ROBUST FINANCIAL METRICS & POTENTIAL RETURNS
      • 12-month Construction Schedule
      • Currently Trading at 4% of Phase 1 NPV or 2% of Phase 1+2 NPV
      • Target Valuation in 24-36 Months
         • C$50M = US$36M
         • Conservative Approach to Valuation
              • Comparables (6-8x EBITDA)
              • 75% Phase 1 NPV or 44% of Phase 1 + 2 NPV
NPV5%                                        US$ 30,9M
NPV5% + Terminal Value                       US$ 51,8M
IRR                                          32% p.a.
Cash Flow (LOM)                              US$62M
Payback Period (From Construction Kickoff)   3.4 years

Mining Method                                Open Pit
Process/Metallurgy                           Milling & Flotation
Life of Mine (LOM)                           20 years
Annual Production (years 1):                 3,000 t p.a.
                                                                           • Graphite amounts to over 95% of anode
Annual Production (years 2):                 5,000 t p.a.
                                                                             material for commercial battery
Annual Production (year 3-20):               6,000 t p.a
                                                                             technologies
Capital Costs – Phase 1                      US$ 7,300,000
                                                                           • No substitutes on the horizon
Avg. Operating Costs(LOM):                   US$ 546 per tonne of conc.
Avg. Weighted Price:                         US$ 1287/t                    Source: Benchmark Mineral Intelligence

      TSXV: STS | OTCQB: STSBF                              www.southstarbatterymetals.com                          27
You can also read