Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Noosa Virtual Conference 2020
22 slides from Lake Resources N.l's conference presentation, Jul 15, 2020
Slide 1: Clean High Purity Lithium - Noosa Virtual Conference
CLEAN For personal use only HIGH PURITY LITHIUM Noosa Virtual Conference Steve Promnitz - Managing Director 15 July 2020 ASX:LKE FRA:LK1 OTC:LLKKF
Slide 2: Disclaimer
Disclaimer For personal use only General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings Certain statements contained in this presentation, including information as to the future fina
Slide 3: Clean Technology – High Purity Lithium
Clean Technology – High Purity Lithium. For personal use only • Clean Technology – Simple adaptation of well-known water treatment method • Disruptive Direct Extraction with Lilac Solutions – Innovative, efficient lithium separation from salty water (brine); cost competitive vs traditional process •
Slide 4: Direct extraction – Clean Technology
Direct extraction – Clean Technology For personal use only Disruptive – No Evaporation or Mining New adaptation to known technology in water treatment • Efficient - lithium removed from brine; no evaporation • Faster, with higher recoveries • High Purity products – In demand • Cost Competitive and s
Slide 5: Sustainable Lithium. Responsibly Sourced
Sustainable Lithium. Responsibly Sourced For personal use only Solution for more sustainable lithium in EV’s • Electric Vehicle Makers, EU, Seek More Sustainable Lithium – Volkswagen, Daimler, EU – push for more responsible sourcing of battery materials (Reuters) • Direct Extraction is not mining an
Slide 6: Sustainable Lithium. ESG Targets for the Future – EU, UN
Sustainable Lithium. For personal use only ESG Targets for the Future – EU, UN EU UN ASX:LKE OTC:LLKKF SLIDE / 6
Slide 7: Direct extraction. Disruptive Technology
Direct extraction. Disruptive Technology (3 hrs to 30-60,000ppm vs 1-2 years) Ion Exchange Process For personal use only Saves time and money - Faster production. Recoveries doubled Lilac Solutions Lower impurities – Higher purity as only lithium is extracted. Sustainable solution – Brine reinjected
Slide 8: Direct extraction – Small Environmental Footprint
Direct extraction – Small Environmental Footprint For personal use only Lilac Direct Extraction Footprint vs Brine Evaporation Ponds (Atacama) and Hard Rock Mining (Greenbushes) Evaporation - Atacama Hard Rock - Greenbushes 15 km 5 km Direct Extraction - Kachi Direct Extraction: Returns ASX:LKE brin
Slide 9: Prime Location – Next to Large Producers
Prime Location – Next For personal use only to Large Producers. ATACAMA Tianqui/SQM Albemarle Lithium Triangle: 40% of world’s lithium production at the lowest cost. Lake’s Advancing Projects 5 largest producers all have operations ALB, SQM, LTHM + Tianqui, Ganfeng Ourhas Lake projects are side- a l
Slide 10: Major brine resource - Top10
For personal use only Major brine resource - Top10 4.4 Mt LCE Total Resource (1Mt LCE Indicated Resource; 3.4 Mt Inferred) PFS only uses 20% of resource Open at depth and laterally 11x 70,000 hectares of leases (11x Size of Manhattan Island)
Slide 11: Kachi Project - High Margin Pre-Feasibility Results
Kachi Project - High Margin Pre-Feasibility Results For personal use only • Long Life, High Value Project - 25 year production 25,500 tpa LCE**; US$1050 million project value* (NPV @ 8% discount rate, Pre-tax) • High Margin Lithium Production – • 55% Operating Margin; US$465 million EBITDA in 1st 3
Slide 12: Cost Competitive Direct Extraction
Cost Competitive Direct Extraction Consistent High Value Low Impurity Product For personal use only Direct Extraction Kachi Project Positioned at lower end of cost curve Brine – Lower Cost Hard Rock – Higher Cost ASX:LKE OTC:LLKKF Source: LKE announcements 9/1/2020, 14/01/2020; 10/12/2018 SLIDE / 12
Slide 13: Production Timeline
Production Timeline. For personal use only H1 - 2020 H2 – 2020 , H1 - 2021 High purity samples Kachi samples to battery makers for qualification Kachi direct extraction pilot purposes plant module – operating Kachi – finalise offtake and strategic partner Kachi PFS (Apr 2020) – discussions Robust ec
Slide 14: Share price chart and market data
LAKE RESOURCES (ASX:LKE , OTC:LLKKF) LAKE RESOURCES (ASX:LKE) 1 YEAR For personal use only Share price chart Total Current Shares on Issue 671,461,957 Listed Options (10c) Jun 2021 Expiry 52,512,693 Unlisted Options (4.6c) Oct 2022 Expiry 18,300,000 Unlisted Options (8c) Feb 2022 Expiry 5,555,000 Un
Slide 15: Orior Capital – Lake 'Incredibly Undervalued'
Orior Capital – Lake ‘Incredibly Undervalued’ For personal use only • Lake Undervalued vs Peers – Despite robust financial metrics, advantages of direct extraction & excellent lithium outlook, Lake trading at less than 2% of NPV vs competitors trading at around 20%; valuation of 29c per share • Comp
Slide 16: Market Value vs Size of Lithium Brine Resources
Market Value vs Size of Lithium Brine Resources – Argentina brine companies 1.0 10 For personal use only Significant Upside 0.9 9 Combined Resource Size - Million tonnes LCE 0.8 8 Lake $25m vs Peers 0.7 7 Direct Extraction – Pilot Plant Stage Market Value A$ Billions $50-120m market cap 0.6 6 0.5 5
Slide 17: Experienced. Lake has extensive development experience
Experienced. Lake has extensive development experience – For personal use only both at the board level and local management Steve Promnitz Stu Crow Nick Lindsay Robert Trzebski MANAGING DIRECTOR CHAIRMAN NON-EXEC NON-EXEC DIRECTOR NON-EXEC DIRECTOR Extensive project management More than 25 years of
Slide 18: Next Steps – Catalysts
Next Steps – Catalysts. For personal use only • Deliver high purity samples to off-takers – within weeks • Qualification process; Focus on Sustainability – • Capital cost, Opex reductions – Solar power, Staged development 10,000tpa • Definitive feasibility study DFS – complete mid 2021, Production 2
Slide 19: Clean High Purity Lithium - Unique Proposition
Clean High Purity Lithium - Unique Proposition. For personal use only • New Clean Technology for High Purity Lithium – Growing need • Responsibly Sourced & Sustainable - Growing demand from EV makers, EU guidelines, Battery makers – Enables a clean future and one of only new suppliers • 21st Century
Slide 20: Appendix - PFS Compelling Economics; High EBITDA Margin
PFS - Kachi. Appendix - PFS Compelling Economics; High EBITDA Margin For personal use only Cost Competitive; High Value Product Key Financial Parameters Values NPV8 (NPV @ 8% discount rate) Pre-tax US$1,052 million (A$1,660 million)* NPV8 (NPV @ 8% discount rate) Post-tax US$748 million (A$1,180 mil
Slide 21: Appendix – Mineral Resource – JORC Code 2012
Appendix – Mineral Resource – JORC Code 2012 For personal use only Kachi Lithium brine Project. KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resource Area, km2 17.1 158.3 175.4 Aquifer volume, km3 6 41 47 Brine volume, km3 0.65 3.2 3.8 Mean dr
Slide 22: Appendix – Table Report – JORC Code 2012
Appendix – Table 1 Report – JORC Code 2012. For personal use only ASX:LKE OTC:LLKKF SLIDE / 22 ASX: LKE SLIDE / 22