Diatreme Resources (DRX) Corporate Presentation summary

Market opportunity and demand

• High purity, low iron silica sand is in strong global demand, driven by solar PV and specialty glass markets.

• Global silica sand market projected to grow from US$22.9B in 2022 to US$32.1B by 2028, with a 5.6% CAGR.

• Solar PV industry is a major driver, with 70% of a solar panel made from high purity silica glass.

• China’s demand for PV-grade silica sand is rapidly increasing, with consumption expected to reach 31.68Mt in 2025.

• Supply constraints in Asia due to environmental restrictions are tightening the market.

Projects and resources

• Diatreme holds one of the world’s purest silica sand portfolios, with a total mineral resource of 402Mt at >99.3% SiO2.

• Two flagship projects: Northern Silica Project (235Mt) and Galalar Project (75.5Mt), both in North Queensland.

• Western Resource Area adds 91.7Mt at >99.36% SiO2.

• Northern Silica Project targets production of 121Mt over 25 years, with first output aimed for 2026/7.

• Galalar Project is expected to support future production at Northern Silica.

Financials and economics

• Market capitalisation of A$126m as of July 2024; share price A$0.027.

• Debt facility of A$34m, with repayment due May 2025.

• Northern Silica Project’s Stage 1 CAPEX is A$356m, with a pre-tax NPV of A$1.41B and IRR of 33%.

• Average annual sales revenue projected at A$391m, with an operating margin of A$299.4m.

• Sibelco invested $35m for 26.8% of Diatreme’s silica projects, supporting a strong cash position.