Pure Energy Minerals Ltd. · TSXV:PE
Pure Energy Minerals — Cathodes 2017
20 slides from Pure Energy Minerals's conference presentation, Oct 9, 2017
Slide 1: There Is Room for Innovation in the Lithium Supply Chain
THERE IS ROOM FOR INNOVATION IN THE LITHIUM SUPPLY CHAIN Presented at Cathodes 2017 – Newport Beach, CA OCTOBER 9, 2017
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Certain statements contained in this presentaHon, including all statements that are not historical facts, contain forward-looking statements and forward-looking informaHon within the meaning of applicable securiHes laws. Such forward-looking statements or informaHon include, but
Slide 3: Cautionary Statement (cont.)
CAUTIONARY STATEMENT (cont.) Among other factors, the Company’s inability to complete further mineral resource and mineral reserve esHmates; the inability to complete the PEA Technical Report or a subsequent feasibility study; the inability to anHcipate changes in brine volume or grade due a number
Slide 4: Lithium Batteries – A Meeting Place for Strange Bedfellows
LITHIUM BATTERIES – A MEETING PLACE FOR STRANGE BEDFELLOWS A Convergence among Resources, Tech, Energy, and Manufacturing 4
Slide 5: Lithium Hydroxide Pricing Model from Benchmark Mineral Intelligence
LITHIUM HYDROXIDE PRICING MODEL FROM BENCHMARK MINERAL INTELLIGENCE A Dynamic Pricing Model: What are some implicaJons for current and future margins? Avg Net Margin Specialty Chem: 12%* Avg. Net Margin Metals Mining: 14%** * - Investopedia ** - StaCsta 5
Slide 6: Our Product Drives Us to New Technology
OUR PRODUCT DRIVES US TO NEW TECHNOLOGY The Spotlight on Lithium Requires Improvements in Efficiency, Timeline to ProducHon, and Sustainability The Costs of Lithium Baceries are being Forced Lower – the Supply Chain is not Immune Junior Companies Breaking New Ground: Last 3 New Mines Came from Juniors
Slide 7: The Technology Cycle
THE TECHNOLOGY CYCLE “Conven;onal Wisdom” – New Technology propagates too fast to help early adopters Plateau FermentaHon Period TECHNOLOGICAL STATE-OF-THE-ART Major Breakthrough TIME Source: Bartos, 2003 7
Slide 8: SX-EW Copper Earns Market Share in the US: 1970-2000
SX-EW COPPER EARNS MARKET SHARE IN THE US: 1970 - 2000 Slower adop;on than many new technologies – perhaps due to high CapEx barriers PERCENTAGE OF TOTAL US COPPER PRODUCTION 40 35 30 TECH BREAKTHROUGH: 25 FLEXIBLE SOLVENTS TECH BREAKTHROUGH: 20 NO REFINING NEEDED 15 SX-EW RAMP-UP 10 IN CHILE 5 MAJO
Slide 9: Traditional Lithium Brine Extraction
TRADITIONAL LITIUM BRINE EXTRACTION ENVIRONMENT: Intense water CLAYTON VALLEY, USA consumpHon Albemarle EvaporaHon Ponds LONG LEAD TIME: 25 km2, 6,000 acres Up to 2 Years for 5 km EvaporaHon ConcentraHon 5 km SALAR DE ATACAMA, CHILE SQM, Albemarle EvaporaHon Ponds INEFFICIENT: 53 km2, 13,000 acres L
Slide 10: Clayton Valley, Nevada – A Home to an Old Producer and New Potential
CLAYTON VALLEY, VALLEY NEVADA NEVADA––AHOME PRODUCTIVE TO AN OLD DISTRICT PRODUCER AND NEW POTENTIAL World-Class Infrastructure Power Lines, Roads, and North America’s Only Lithium Producer… 10
Slide 11: Pure Energy Consolidates Clayton Valley
PURE ENERGY CONSOLIDATES CLAYTON VALLEY EXPANDED PURE ENERGY CLAIMS: Original Claims: 9,600 ACRES North Expansion: 5,500 ACRES South Expansion: 9,500 ACRES TOTAL: 24,600 ACRES ACQUIRED FROM LITHIUM X Clayton Valley West and North Original Pure Energy Claims Albemarle Silver Peak Mine High Priority E
Slide 12: Is There a Better Way? Rapid Beneficiation Through Solvent Extraction
IS THERE A BETTER WAY? A POTENTIAL BREAKTHROUGH TECHNOLOGY RAPID BENEFICIATION THROUGH SOLVENT EXTRACTION 12
Slide 13: Is There a Better Way? Phase Separation and Nanofiltration
IS THERE A BETTER WAY? A POTENTIAL BREAKTHROUGH TECHNOLOGY PHASE SEPARATION …NANOFILTRATION LARGE SCALE USE OF MEMBRANES: …WATER TREATMENT & FOOD PREP …PURIFICATION OF HYDROCARBONS …CHEMICAL POLISHING 13
Slide 14: A Preliminary Flowsheet Developed with Partners
A PRELIMINARY FLOWSHEET DEVELOPED WITH PARTNERS LiP™ LiSX™ LiEL™ No Real Time EvaporaJon Recovery Ponds 14
Slide 15: Clayton Valley Project – Proposed Lithium Plant Using 21st Century Technology
CLAYTON VALLEY PROJECT – PROPOSED LITHIUM PLANT USING 21ST CENTURY TECHNOLOGY Key Economic Indicators (Currency in US $) Ader Tax - Net Present Value (8% Discount) $264 million Ader Tax - Internal Rate of Return (IRR) 21% Average Annual ProducHon (Lithium Hydroxide) 10,300 tonnes Average Annual Prod
Slide 16: A First Pass Estimate of Construction Costs
A FIRST PASS ESTIMATE OF CONSTRUCTION COSTS DescripJon of Capital Costs US $ Basin AcHviHes $ 29 M Plant FaciliHes & Equipment $ 100 M Infrastructure & UHliHes $ 30 M Direct Costs $ 159 M Indirect Costs* $ 34 M ConHngency $ 56 M Owner’s and Other Costs** $ 48 M Total IniJal Capital Costs $ 297 M Sus
Slide 17: First Pass Estimate of Direct Operating Costs
FIRST PASS ESTIMATE OF DIRECT OPERATING COSTS – VERY ENCOURAGING Unit Cost Unit Cost DescripJon of Steady State OperaJng Costs (US $) % of Total LiOH·H2O LCE Labor $ 427 /t $ 485 /t 14 Power $ 394 /t $ 447 /t 12 OperaHng Supplies & Services $ 2,227 /t $ 2,528 /t 69 Maintenance Supplies $ 169 /t $ 19
Slide 18: New Tech = High Margins
NEW TECH = HIGH MARGINS 200 180 KEY ASSUMPTIONS: 160 140 100% Equity Financing 120 ProducJon Ramp-up over ~15 months: MILLIONS (USD) 100 4,100 tonnes LiOHH2O in 2021 80 10,800 tonnes LiOHH2O in 2022 60 11,400 tonnes LiOHH2O in 2023 REVENUE 40 ConstrucJon Commencing in 2019 DIRECT COSTS 20 NON-OPE
Slide 19: A New Management Team with the Right Experience to Deliver
A NEW MANAGEMENT TEAM WITH THE RIGHT EXPERIENCE TO DELIVER PAUL ZINK WALTER WEINIG Chief Financial Officer MSc, CPG, PPM Paul has more than 35 years experience in project finance, VP Projects & Permi<ng financial analysis, strategic Walter has nearly 30 years of planning, royalHes, mergers and experienc
Slide 20: Contact – Patrick Highsmith, President & CEO
TSXV:PE OTCQB:PEMIF Patrick Highsmith, President & Chief Execu2ve Officer p.highsmith@pureenergyminerals.com 303.668.3264 20 www.PureEnergyMinerals.com