Neometals Ltd · ASX:NMT
Neometals — BAML Battery & Storage Forum (January 2019)
42 slides from Neometals's conference presentation, Jan 15, 2019
Slide 1: The evolution of lithium
The evolution of lithium ® BAML Battery & Storage Forum Presentation 15 January 2019 ASX Code: NMT OTC/Nasdaq Intl: RDRUY 1
Slide 2: Disclaimer
Disclaimer Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of
Slide 3: Who are Neometals?
Who are Neometals? Neometals is an Australian listed (ASX:NMT) project developer with a clear growth plan and strong balance sheet to maximise returns from its industrial mineral feedstocks of lithium, titanium and vanadium through downstream processing into high purity chemicals. NE Board Members M
Slide 4: Neometals Today
Neometals Today Integrated Lithium Business • Mt Marion Lithium Mine (13.8%) – Binding Sale Agreement for A$104M subject to FIRB and Chinese approvals Li • Lithium Refinery – completing Front End Engineering Study to convert our fixed-volume Spoduemene Offtake Option from Mt Marion into Lithium Hydr
Slide 5: Despite Lithium Price Deterioration/Normalisation?
Despite Lithium Price Deterioration/Normalisation? and Poor sector returns in CY18 Daily Change Total Total Turnover Name Open High Low Close Average % Volume Value % Value Tawana Resources NL (ASX... 0.4623 0.583 0.22 0.31 -32.94 395M 165M 700K 71.78 Kidman Resources Limited 1.88 2.48 0.825 1.09 -4
Slide 6: We have strong conviction in the long term lithium battery, EV and ESS thematic
We have strong conviction in the long term lithium battery, EV and ESS thematic + Ti/V = 6
Slide 7: Strong Balance Sheet, Loyal Shareholders
Strong Balance Sheet, Loyal Shareholders ASX: NMT OTC:RDRUY 12 Month Share Price Performance Shares on Issue1 m 543.9 0.60 14.0 Volume (m) Price (A$) Share Price (8-Jan-2019) A$ 0.235 0.55 12.0 Market capitalisation A$m 128.0 0.50 Cash (31-Dec-18) A$m 30.1 10.0 Debt (31-Dec-18) A$m - 0.45 8.0 Invest
Slide 8: Long-term Strategy
Long-term Strategy To develop a portfolio of 1 globally significant materials for a sustainable Li + Ti/V future Leverage operating cashflows to drive 2 innovative cost advantages and secure $ + + strong partners Into lower-risk, longer life, Over the last 3 financial years, Neometals has returned ~
Slide 9: Neometals – Integrated Lithium Business
Neometals – Integrated Lithium Business • Mt Marion Lithium Mine • Kalgoorlie Lithium Refinery Project • Zeolite Production from Refinery Waste Project • Lithium Ion Battery Recycling Project • Lithium Exploration Interests + Ti/V = 9
Slide 10: Sustainable Integrated Lithium Strategy
Sustainable Integrated Lithium Strategy Neometals’ integrated lithium strategy is based on (1) mining and producing spodumene concentrate, (2) refining spodumene to lithium compounds, and (3) recycling lithium batteries to recover battery metals. Sales Li-ion Battery • Downstream integration substan
Slide 11: Maximise Li unit value and reduce operating cost through innovation
Maximise Li unit value and reduce operating cost through innovation + Ti/V = 11
Slide 12: Vital to be cost-competitive as a supplier
Vital to be cost-competitive as a supplier + Ti/V = 12
Slide 13: Closing the lithium battery supply chain loop
Closing the lithium battery supply chain loop + Ti/V = 13
Slide 14: Upstream processing Mt Marion Lithium Mine
Upstream processing Mt Marion Lithium Mine Neometals 13.8% (currently under sale contract) + Ti/V =
Slide 15: Mt Marion Equity Divestment
Mt Marion Equity Divestment Highlights: • NMT to sell its Mt Marion equity to Ganfeng and Mineral Resources • ‘Life of Mine’ spodumene concentrate offtake option rights retained • Strategy to produce higher value lithium chemicals underpinned by certainty from proven feed supply • Balance sheet stre
Slide 16: Key Terms
Key Terms • Divestment comprises interrelated Sale and Offtake Agreements. Key terms as follows: • NMT has agreed to sell its 13.8% in the Mt Marion JV Company (Reed Industrial Minerals, “RIM”) for total cash consideration of A$104M (NMT carried tax losses A$115M) • Completion by 28 February at late
Slide 17: Downstream processing Kalgoorlie Lithium Refinery Project
Downstream processing Kalgoorlie Lithium Refinery Project Neometals 100% + Ti/V =
Slide 18: Kalgoorlie Lithium Refinery (KLR)
Kalgoorlie Lithium Refinery (KLR) Neometals is progressing technical and commercial feasibility of a lithium chemicals refinery in Kalgoorlie, with an initial production capacity of 10ktpa of LiOH. • Propose to utilise a modern, conventional direct- conversion sulphate process to produce battery qua
Slide 19: KLR Flythrough Video
KLR Flythrough Video https://youtu.be/CqlpCWY5e5M + Ti/V = 19
Slide 20: Strong Long-Term Supply Fundamentals
Strong Long-Term Supply Fundamentals Significant supply deficit expected to Emerge mid 20’s + Ti/V = 20
Slide 21: Project Timeline
Project Timeline Feasibility Study M+W Results Detailed FEED Engineering Construction** Commission** Study Results Offtake/Finance/ Design (*) FID MarQ 2018 JunQ 2019 FY 2020 FY’s 2021 2022 2023 (*) Subject to NMT Board Approval (**) Subject to FID + Ti/V = 21
Slide 22: Research & Development Zeolite from Leach Residue
Research & Development Zeolite from Leach Residue Neometals 100% + Ti/V =
Slide 23: Drivers for development
Drivers for development • Leach residue disposal, a component cost of LiOH opex – Cpresently used as a raw material for cement production or ceramics • Neometals has proved concept of producing commercially sought type of zeolite from LiOH leach residues at both CSIRO and QUT, Australian Provisional
Slide 24: Massive Global Market a multiple larger than lithium
Massive Global Market a multiple larger than lithium + Ti/V = 24
Slide 25: Commercialisation Plan
Commercialisation Plan M+W Cost Study Results PFS Type A Pilot Plant & Pilot Plant Commence Process Opt (*). Results FEED Study(*) Optimise Type A Product Dev Study Flowsheet Results MarQ 2018 JunQ 2019 SepQ 2019 DecQ 2019 MarQ 2020 (*) Subject to NMT Board Approval + Ti/V = 25
Slide 26: Research & Development Lithium Battery Recycling
Research & Development Lithium Battery Recycling Neometals 100% + Ti/V =
Slide 27: Drivers for development
Drivers for development Less than 5% of used Li-ion batteries are truly recycled, majority of competitors only recover base metals (40-50% overall yield) Electronics LCO Cathode contains 20% Cobalt + Ti/V = 27
Slide 28: Lithium Battery Recycling
Lithium Battery Recycling Neometals is developing a sustainable technology to economically recover critical metals from spent lithium ion batteries. • Regulation driving ethical sourcing and disposal of lithium ion batteries • Cobalt supply chain under stress - increased demand for batteries, high s
Slide 29: New multi-cathode recycling flowsheet
New multi-cathode recycling flowsheet Accelerated development of universal EV battery recycling flowsheet to meet market demand as NCA/NCM volumes accelerate, new flowsheet retains flexibility to also process LCO from consumer electronics, no LFP. + Ti/V = 29
Slide 30: Base metal recovery drives economics
Base metal recovery drives economics Lithium is recovered as by-product Scoping Study 2017 – 10 t/day (3,424 tpa) Feed of LCO batteries. (± 30% accuracy) Operating Costs US$4.45/lb Co (US$10k/t) Spot price US$25/lb Co (US$55k/t) Capex US$4.5M NPV12% pre-tax US$145M (spot price) Can be constructed an
Slide 31: Commercial scale Shredder Acceptance Testing Video
Neometals Commercial scale (50tpd feed) Shredder Acceptance Testing Video https://youtu.be/PJSMV3enSqg + Ti/V = 31
Slide 32: Project Timeline
Project Timeline Pilot Pilot Pilot Commence FEED Study/ Commercial Plant Plant Plant FEED Feasibility Plant (*) Canada Canada Canada Study Results & Fabrication / FID (*) Construct Comminution Leaching Purification Jan/Feb 19 Mar/April 19 May/Jun/July July 19 DecQ19 9 months 19 (*) Subject to FID Ru
Slide 33: Exploration Mt Edwards Lithium Project
Exploration Mt Edwards Lithium Project Neometals 100% + Ti/V =
Slide 34: Mt Edwards Lithium Project
Mt Edwards Lithium Project • Brownfields lithium exploration project • Located 80km south of Kalgoorlie, and 40km south of the Mt Marion lithium mine • Tenements cover area of 240km2 across the highly prospective Widgiemooltha Dome • Neometals exploration confirms the presence of multiple fertile li
Slide 35: Exploration Mt Holland Lithium Project
Exploration Mt Holland Lithium Project Neometals owns 36.5% of Hannans Limited + Ti/V =
Slide 36: Mt Holland (via 36% Hannans Ltd)
Mt Holland (via 36% Hannans Ltd – ASX:HNR) Location map showing Western Australian producing mines and exploration projects (sourced from publicly + Ti/V = available information 36
Slide 37: Mt Holland West and East Targets
Mt Holland West and East Targets Strategic ground holding adjacent to one of the worlds largest lithium deposits Awaiting assay results of Aircore (AC) drill program completed in Dec 2018 + Ti/V = 37
Slide 38: Ti/V: All the right elements
All the right elements 38
Slide 39: Lithium Tactical Plan – CY19
Lithium Tactical Plan – CY19 • Finalise LiOH FEED, advance Offtake/Partner and Approvals processes • Fast-track Commercialisation of Zeolite to align with LiOH project • Accelerate Partner/Feedstock and Approvals processes for LiB Recycling to align with Pilot/FEED program • Exploration for addition
Slide 40: Demerger Update
Demerger Update Neometals is still considering the demerger of its Barrambie Titanium-Vanadium Project (“Barrambie”) and associated technology assets into a new ASX-listed company. • No change to proposed demerger structure, timing is however under review • Mt Marion equity sale will reset some appr
Slide 41: Company Highlights
Company Highlights • Secure supply of globally relevant commodity feedstocks from Tier-one assets • Clear path to growth via vertical integration and innovative cost reduction strategy • Strong balance sheet to pursue growth – no change in strategy with sale of Mt Marion • History of de-risking deve
Slide 42: Thank you
Thank you www.neometals.com.au + Ti/V = 42
Neometals — BAML Battery & Storage Forum (January 2019) on 6ix