European Lithium Ltd. · ASX:EUR
European Lithium — Investor Presentation (May 2017)
32 slides from European Lithium's investor presentation, May 5, 2017
Slide 1: Presentation May 2017
For personal use only Presentation May 2017
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by and is the sole responsibility of European Lithium Limited (the Company). It is not a disclosure document and For personal use only should not be considered as an offer or invitation to subscribe for, or purchase any securities in the
Slide 3: Investment Highlights
Investment Highlights For personal use only Central European project Experienced team EU Net importer Robust lithium market ● 100% owned lithium project in ● Directors have considerable ● Apart from small Iberian ● Lithium market has grown from Austria experience in resource project production for l
Slide 4: Development Road Map
Development Road Map* Q3 2017 Increase Resource For personal use only Q3 2017 Finalise PFS Complete H2 2018 Baseline/EIS/ H1 2018 Finalise DFS Permitting H2 2018 Fast track, proposed to commence production of DMS concentrate for EU glass-ceramic industry Q4 2019 / Operations proposed to commence for
Slide 5: Key Data
Key Data For personal use only Capital Structure Team Share Performance* Primary listing ASX: EUR Shares on issue: Board of Directors Also traded on Frankfurt and Berlin (PF8) 433.7 million Tony Sage Market Cap: AUD$25.3 million Non-Executive Chairman Free float1 = 156 million Paul Lloyd Share price
Slide 6: Lithium Battery Plants in Europe
Lithium Battery Plants in Europe Battery production for EV’s a key driver for Lithium demand For personal use only Northvolt (TBA, Sweden) Possible location Daimler Sweden Tesla (TBA, Europe) (Kamenz, Germany) Operational, proposed Propose expansion ‘Gigafactory 2’ EV assembly at Tilburg, Nissan Net
Slide 7: Wolfsberg Lithium Project
Wolfsberg Lithium Project For personal use only ● Located 270km SW of Vienna, Austria ● The 5 year term of the original exploration ● Good local infrastructure and sources of energy licences was extended by the mining authority nearby to 31 December 2019 and is renewable. The mining licence is held
Slide 8: Project History
Project History For personal use only 1981 1988 1991 Discovered by Minerex, an Austrian Austrian Government decided BBU was closed by the Austrian government company. Following not to develop the project and government and the Project was sold extensive exploration, technical and Minerex was closed.
Slide 9: Geology
Geology ● Substantial exploration and development work by ● A programme of underground twin hole drilling For personal use only previous owners include: and channel sampling under a comprehensive QA/QC protocol has verified the original data ● 17,000m of drilling / 1,400m of decline, drives and whic
Slide 10: Resources
Resources* For personal use only ● Substantial upgrade of previously declared resource completed: Type Million Tonnes Grade Li20 (%) ● Increase of 75% in JORC (2012) compliant Measured 2.86 1.28 resource tonnes Indicated 3.44 1.08 ● Contained Li2O at 73,799 tonnes is 33% greater than previous inferr
Slide 11: Resources Extension
Resources Extension* For personal use only ● Extension of the major identified veins in Zone 1 to RL1100m provides an Exploration Target** of 8 – 14 million tonnes at 1.1 to 1.2 % Li2O. ● Zone 2 has the potential to mirror the resource of Zone 1. ** Exploration Target - The potential quantity and gr
Slide 12: Project Topography
Project Topography For personal use only Lithium Deposit Wolfsberg Area Of Investigation Graphic: A. Pamsl Brandhöhe 1866m 5 1800m ZONE 2 ZONE 1 Adit (1574m asl) Amphibolite Micaschist Pegmatites (proven/estimated) Source: Company, Mine-it representation 11
Slide 13: Project Geology
Project Geology For personal use only Section through deposit Mineworkings – plan view Source: The spodumene depost at “Weinebene” Koralpe, Austria • Source: Company, prepared from Minerex data by Dr. Göd. by Dr.Göd, Mineralium Deposita 24, 270-278 (1989). • 12
Slide 14: Geology of Wolfsberg - plan
Geology of Wolfsberg - plan For personal use only Source: The spodumene depost at “Weinebene” Koralpe, Austria by Dr. Göd, Mineralium Deposita 24, 270-278 (1989). • 13
Slide 15: Metallurgy
Metallurgy For personal use only ● Earlier studies optimised with latest technology ● Rejection of waste from ROM with laser sorting ● DMS produces spodumene concentrate 5.3% Li2O for glass-ceramic use ● Flotation concentrate 6% Li2O for conversion to battery products ● Lithium carbonate >99.9% Li2O
Slide 16: Mining
Mining For personal use only ● Mine design based on current M&I resource ● Longitudinal long hole open stoping ● Mining 600ktpa for 13 years ● Production 7,100tpa LCE ● Potential expansion to 800ktpa mine capacity for 23 years and 11,000tpa LCE at full production Isometric view of mine development a
Slide 17: Pre-Feasibility Study
Pre-Feasibility Study Completion anticipated by end Q 3 2017 For personal use only ● SRK Consultants have completed a conceptual mine plan. This is based on the current measured and indicated resource of 6.3m tonnes at 1.17% Li2O. Long hole open stoping is considered the most appropriate mining meth
Slide 18: Development Strategy
Development Strategy For personal use only ● The Minerex data has been verified and an upgraded resource compliant to JORC Code “opportunities for fast (2012) has been declared track concentrate ● Increase resource by drilling down dip production” ● Establish a resource in Zone 2 ● Establish the mos
Slide 19: Consultants for Work Programme
Consultants for Work Programme For personal use only ● Geology Adviser - Dr Richard Göd (ex Chief Geologist Minerex) (Austria) ● Exploration Management – Technisches Büro für Geologie (Austria) ● Drilling contractor (underground) – Swietelsky (Austria) ● Drilling contractor (surface) – VA Erzberg (A
Slide 20: Estimated Development Timeline
Estimated Development Timeline For personal use only Work Programme Q3 16 Q4 16 Q2 17 Q3 17 H2 17 H1 18 H2 18 2019 2020 Re-listing on ASX PFS DFS Baseline/EIS/Permitting Construction Operations Fast track DMS 19
Slide 21: Material Lithium Projects in Europe
Material Lithium Projects in Europe 1. Keliber For personal use only • Finland • In PFS • No guidance on first production 2. Avalonia Lithium (Intl. Lithium & Jiangxi Ganfeng) • Ireland • Exploration 1 • No resource declared 3. SMP • Portugal • For local glass/ceramics 4. European Lithium 2 • Austri
Slide 22: Recent Industry News
Recent Industry News Northvolt could beat Tesla at Bringing a 'Gigafactory' to Europe March Northvolt announces ambitious plans to build a Gigafactory-like battery plant in the Nordic countries in three For personal use only 2017 years time. Tesla plans to choose Europe for ‘Gigafactory 2’ November
Slide 23: Appendices
For personal use only Appendices
Slide 24: Board of Directors and Management
Board of Directors and Management For personal use only Steve Kesler Tony Sage Paul Lloyd Malcolm Day CEO Non-executive Chairman Non-executive Director Non-executive Director ● Experienced mining ● Executive Chairman of ● Over 25 years of ● Experienced Surveyor executive with over 38 ASX listed Cape
Slide 25: Project Photographs
Project Photographs For personal use only 24
Slide 26: Main Sources of Lithium
Main Sources of Lithium For personal use only PROCESSING OPEX CAPEX OTHER Hard rock Mining, crushing, concentration, Typical operating Typically lower Less impurity roasting, leaching and crystallisation costs higher capex/t LCE than variation than to lithium carbonate brine projects brines which is
Slide 27: Lithium Applications
Lithium Applications For personal use only CURRENT APPLICATIONS NEW MARKETS CHEMICAL TECHNICAL Electric vehicles Batteries Glass Lubricants Ceramics Fixed energy storage with renewables Air Treatment Aerospace Aluminium smelting Li-Al alloys for aircraft Steel and Iron Pharmaceuticals castings 26
Slide 28: LCE in Batteries
LCE in Batteries For personal use only SMART PHONE LAPTOP TABLET TOYOTA PRIUS TESLA ROADSTER LONDON BUS 2-3g/battery 30-40g/battery 20-30g/battery 3.6kg/battery 40kg/battery 200kg/battery ● Lithium ion has captured nearly 100% of consumer electronics market ● Tesla aims to build its lithium ion batt
Slide 29: World Market - rechargeable lithium batteries
World Market - rechargeable lithium batteries For personal use only Growth in demand for rechargeable batteries will increasingly be driven by the automotive market which is expected to reach 67GWh in 2020 and 143.5GWh in 2025 Source: Roskill Lithium: Global Industry, Markets and Outlook to 2025 13t
Slide 30: Lithium Price
Lithium Price ● Pricing off-market For personal use only ● Pricing determined by product and specification for each consumer ● Pricing typically in LCE ● Battery grade lithium is highest purity and most expensive ● Technical grade lithium needs less processing and is cheapest ● The high case scenari
Slide 31: Demand
Demand For personal use only World Historical and Forecast consumption of lithium by end-use ● Majority of lithium continues to be used for lower value industrial applications (glass, ceramics etc.) ● Recent growth largely from rechargeable battery market (e.g. mobile phones, laptops) ● New technolo
Slide 32: Lithium Supply
Lithium Supply Production of lithium by country For personal use only ● Lithium supply totalled 168,000 LCE in 2012 ● Global supply is dominated by the “big four” that supply ~82% (Talison Lithium, SQM, Albemarle and FMC) ● Talison (now owned by Tianqui and Albermarle) is now largest supplier of Lit