Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Resources Rising Stars Summer Series 2019
53 slides from Waratah Minerals's conference presentation, Feb 12, 2019
Slide 1: Battery Minerals Limited
Battery Minerals Limited Resources Rising Stars Summer Series February 2019 1 1
Slide 2: Board, Management and Capital Structure
Board Management Share Price for last 12 months Jeff Dowling Ben Vanroon Non-Exec Chairman Chief Operating Officer David Flanagan Nick Day Managing Director Chief Financial Officer Brett Smith Nick Stephens Non Exec Director Head of Marketing Naomi Scott Capital Structure Gilbert George Non Exec Dir
Slide 3: Graphite in Electric Vehicles - VW
Graphite in Electric Vehicles- VW
Slide 4: Benchmark Intelligence - Megafactory Capacity - Oct 2018
Benchmark Intelligence - Megafactory Capacity - Oct 2018
Slide 5: Benchmark Minerals Intelligence – Megafactory Capacity
Benchmark Minerals Intelligence – Megafactory Capacity Oct 18
Slide 6: Anode Material By Type
Anode Material By Type • Chinese markets have grown consumption of Natural graphite in anode production to circa 35%. We expect this to grow as a proportion as new projects come on line and successfully compete with synthetic graphite and migrate towards the successful technologies being deployed in
Slide 7: Flake Supply - Demand Balance
Benchmark Minerals Intelligence Flake Supply - Demand Balance 7
Slide 8: Graphite Price Forecast - Benchmark Mineral Intelligence
Graphite Price Forecast - Benchmark Mineral Intelligence Balama Central Project Basket Price BAT Montepuez Project Basket Price
Slide 9: Montepuez Graphite Project - Phase 1
Montepuez Graphite Project - Phase 1 Montepuez Graphite Project 1 (First Module) Capex to complete 4 US$39.5 M C1 Opex (concentrate/t first 10yrs) US$361/t Grade processed 11% TGC (12% for first 18yrs) Plant Type and Scale Modular, ~500ktpa Projected Payback <2 years EBITDA per annum1 >US$30 Mpa Met
Slide 10: Montepuez Graphite Project - Resources & Reserves
PrMontepuez Graphite Project - Resources & Reserves Montepuez Graphite Project1 November 2018 Ore Reserve Estimate Deposit Ore type Ore (Mt) TGC (%) Weathered 3.58 8.31 Buffalo Fresh 16.80 10.06 Subtotal 20.38 9.75 Weathered 2.41 8.39 Elephant Fresh 19.41 8.87 Subtotal 21.82 8.82 Weathered 5.98 8.34
Slide 11: Buffalo Deposit - RC Grade control - complete
Buffalo Deposit - RC Grade control - complete
Slide 12: Elephant Deposit - RC Grade control - complete
Elephant Deposit - RC Grade control - complete
Slide 13: Mine to Market Value Chain
Mine to Market Value Chain • Metallurgical testwork completed in China at Beijing General Research Institute of Mining and Metallurgy • Simple modular construction – easy expansion • Flowsheet is conservative and flexible to allow for economic product optimisation • Equipment selected is tried and t
Slide 14: Project Satellite Image
Elephant Deposit Buffalo Deposit Plant Site Camp Warthog Prospect Tailings dam Haul Road Project Satellite Image 4
Slide 15: Tailings Storage Facility (TSF) - Wall Complete
Tailings Storage Facility (TSF) - Wall Complete
Slide 16: Plant Site Earthworks - Complete
Plant Site Earthworks - Complete Primary Crusher Mine Services Area Plant Offices, Workshops and Laboratory Milling Area Drying and Product Stores Process Plant 7
Slide 17: Construction and Operations Camp - Complete
Construction and Operations Camp - Complete • 100 man construction camp completed in March 2018 • 100 man permanent camp completed mid November 2018 Construction and Operations Camp - Complete • 100 man construction camp completed in March 2018 • 100 man operations camp completed mid November 2018
Slide 18: Pemba Port
Pemba Port • Port Allocation approved: at Pemba Port for 100,000tpa of graphite concentrate • Pemba Port: 8-12m deep berthing water, capacity 3 – 4Mtpa cargo and goods • Vessels : Geared. 30,000t to 40,000 vessels, Container and break bulk facilities • Shipping Route: Vessel availability as required
Slide 19: Montepuez Project Main Camp - Complete
Montepuez Project Main Camp - Complete 6
Slide 20: Balama Central Graphite Project - Feasibility Study
Balama Central Graphite Project - Feasibility Study Balama Central Graphite Project Feasibility Study Dec 2018 Annual graphite production 58,000pa Capex (pre-production) US$69.4 M Opex (concentrate/t first 8 yrs) US$363/t Grade Processed 12.5% TGC Plant Type and Scale Modular, ~550ktpa Projected Pay
Slide 21: Balama Central Graphite Project - Feasibility Study
Balama Central Graphite Project - Feasibility Study Total Mineral Resource 2 Domain Type Tonnage TGC Cont. Graphite Mt % kt Weathered 3.2 15.7 498 High Grade GS1 Primary 9.1 15.7 1,429 (>10% TGC) Sub-Total 12.3 15.7 1,927 Weathered 4.2 6.9 288 Medium Grade (6 Primary 16.4 6.9 1,142 to 10% TGC) Sub-T
Slide 22: Concentrate Production TPA
Battery Minerals - Production Profile Montepuez Montepuez Montepuez Montepuez Addition of Balama Balama Central 1 250,000 Stage 2 and Central1 Stage 2 Ramping $1,600.00 First Exports Ramping Up Stage 2 and Stage 2 and Beyond Ramping Up To 50,000 TPA Balama Stage 1 Balama Stage 1 Up To 200,000 TPA 20
Slide 23: Purification and Spheroidisation Testwork
Purification and Spheroidisation Testwork • Testwork programme undertaken by Urbix Montepuez flake identified with high crystallinity, ultra low Boron content, unique flake morphology and URBIX Purification technology together opening potential • Progress todate new markets • Purification success wi
Slide 24: Community Engagement - on track
Community Engagement - on track 9
Slide 25: Next Steps
Next Steps 1. Complete Montepuez project finance 2. Complete detailed engineering and procurement 3. Award remaining construction contracts 4. Urbix, Anode and other downstream ScopingStudy 5. Construct process plant and remaining infrastructure 6. Start mining processing and exporting 7. Investigat
Slide 26: Appendices
Appendices • Current Projects Summary • Mineral Resources, Reserves, • Board and Management • Lithium ion Batteries • Disclaimer • Competent person statements
Slide 27: Montepuez project Summary
27 Montepuez project Summary Element Description Process Engineering “Lowest Risk” modular design philosophy. DFS + VES + Detailed engineering and advanced execute commenced. Crushing plant already on site and commissioned. Construction Construction has started. 100 person village constructed and co
Slide 28: BMI - Montepuez Basket Price Jan to Dec
BMI - Montepuez Basket Price Jan 16 to Dec 18 Montepuez Graphite Project ▪ Higher Fines flake product ▪ Robust basket price of circa US$1,064/t1 Balama Central Battery Minerals - Flake Graphite Concentrate Sizing Flake size Flake size % of Flake size TGC grade (mesh) (micron) concentrate Fine -100 M
Slide 29: Balama Project Summary
29 Balama Project Summary Element Description Process Engineering “Lowest Risk” modular design philosophy. Concept Study, Scoping Study, Feasibility Study complete. Production Mining fleet and plant design structured for conservative delivery of required tonnages. Project 58ktpa, XXX/t OPEX, XXX/t c
Slide 30: BMI - Balama Central Basket Price Jan to Dec
BMI - Balama Central Basket Price Jan 16 to Dec 18 Balama Central Graphite Project ▪ Higher Jumbo and Large flake product ▪ Higher basket price of circa US$1,106/t1 Balama Central Battery Minerals - Flake Graphite Concentrate Sizing Flake size Flake size % of Flake size TGC grade (mesh) (micron) con
Slide 31: Balama Central Deposit
BATTERY MINERALS Balama Central Deposit 25 metres [gi BATTERY il ne ate 4 MINERALS puare camunep S | soot. - ‘ alama Graphite Project . aon LennoxResource ff Sg a Section esses] | asrrocowmaimnee |] = J] SOCHONS aazal 5 | BATTERY
Slide 32: Balama Feasibility Site Layout
Balama Feasibility Site Layout Lapa River Namiticu River
Slide 33: Balama Central Project Site Layout
Balama Central Project Site Layout
Slide 34: Offtake with Key Graphite Processors in China & USA
Offtake with Key Graphite Processors in China & USA Group Term / Description Comments Amount Qingdao Guangxing 3 years One of China’s largest graphite groups Annual production: Electronic Materials 10ktpa Researches & develops, manufactures and sells graphite products including spherical graphite, f
Slide 35: Project Summary
Project Summary Project Description Status Montepuez Graphite • Produce 50,000tpa @ >96% • DFS, VES, Detailed eng. , Camp, Roads and plant site CPL Oct 2018 Project stage 1 TGC • Tailings Dam wall and earthworks will be complete by December 2018, 50,000tpa, planning • BMI Basket price FOB Moz provid
Slide 36: Montepuez CAPEX
Montepuez CAPEX Total Capex Spent to Date Remaining Capex Area USD$ USD$ USD$ Process Plant and Power 28,129,000 4,160,000 23,969,000 Mining Equipment and Light Vehicles 4,378,000 72,000 4,306,000 Camp infrastructure and fit-out 3,108,000 3,108,000 0 Earthworks, Tailings Storage Facility and Water S
Slide 37: Montepuez - Flake Graphite Concentrate Sizing
Montepuez - Flake Graphite Concentrate Sizing Montepuez – LOM Flake Graphite Concentrate Sizing Flake size Flake size (mesh) Flake size (micron) % of concentrate TGC grade Fine -100 Mesh 0 - 150 57.1% 96% Medium +100 Mesh +150 -180 11.3% 96% Large +80 Mesh +180 -300 20.7% 96% Jumbo +50 Mesh +300 11.
Slide 38: Montepuez - Ore Reserve Estimate
Montepuez - Ore Reserve Estimate Montepuez Graphite Project - November 2018 Ore Reserve Estimate Deposit Ore type Class Ore (Mt) TGC (%) Weathered Probable 3.58 8.31 Buffalo Fresh Probable 16.80 10.06 Subtotal Probable 20.38 9.75 Weathered Probable 2.41 8.39 Elephant Fresh Probable 19.41 8.87 Subtot
Slide 39: Balama Central CAPEX
Balama Central CAPEX BALAMA CENTRAL CAPEX US$ Process Plant 20,893,575 Non-Process Infrastructure 7,709,246 Mining 8,171,160 EPCM 3,200,000 Owner's Costs 9,221,324 RAP 4,132,600 Non-Mining Mobile Fleet 1,939,648 TSF and Bulk Water Storage 6,838,080 Freight 1,786,170 Contingency 4,126,083 Owner's Con
Slide 40: Balama Central - Opex Weathered
Balama Central - Opex Weathered Summary of Weathered Ore Operating Ct Estimate Opex Proportion of Category US$/y US$/t product Total Opex Labour 3, 260,031 56.09 14.6% Power 4,581,540 78.82 20.6% Reagents & Consumables 4,051,021 69.69 18.2% Maintenance Materials 615,404 10.59 2.8% G&A 2,349,312 40.7
Slide 41: Balama Central - Opex Fresh
Balama Central - Opex Fresh Opex Summary of Weathered Ore Operating Cost Estimate Proportion of Category US$/y US$/t product Total Opex Labour 3,260,031 56.09 12.8% Power 4,581,540 78.82 18.0% Reagents & Consumables 4,051,021 69.69 15.9% Maintenance Materials 615,404 10.59 2.4% G&A 2,349,312 40.72 9
Slide 42: Balama Central - Flake Graphite Concentrate Sizing
Balama Central - Flake Graphite Concentrate Sizing Product Description Size Fraction Weathered Fresh Jumbo +300 µm 9.5% 26.0 Coarse +180 µm 5.3% 7.4 Medium +150 µm 22.5% 22.0 Fines -150 µm 62.7% 44.62
Slide 43: Balama Central Project Reserves
Balama Central Project Reserves Probable Ore Reserve Estimate (6% TGC cut-off grade) Pit Ore type Ore (Mt) TGC (%) Lennox Weathered 3.36 11.09 Fresh 8.19 11.70 Total 11.55 11.52 Byron Weathered 2.08 10.18 Fresh 6.02 10.49 Total 8.11 10.41 Total Weathered 5.44 10.74 Fresh 14.21 11.19 Total 19.66 11.0
Slide 44: Balama Central Project Resources
Balama Central Project Resources Total Mineral Resource Domain Type Tonnage TGC Cont. Graphite Mt % kt Weathered 3.2 15.7 498 High Grade GS1 Primary 9.1 15.7 1,429 (>10% TGC) Sub-Total 12.3 15.7 1,927 Weathered 4.2 6.9 288 Medium Grade Primary 16.4 6.9 1,142 (6 to 10% TGC) Sub-Total 20.6 6.9 1,430 T
Slide 45: Group Mineral Resource Statement
Group Mineral Resource Statement Total Mineral Resource As of October 2018 for the Montepuez and Balama Central Projects is 152.6Mt @ 8.5% TGC for 13.03Mt of graphite reported at a 2.5% and 6% TGC cut-off respectively. Battery Minerals Group Mineral Resource Estimate1 (2.5% - Montepuez, 6% - Balama
Slide 46: UBS on Graphite Supply Deficit by 2022
UBS on Graphite Supply Deficit by 2022 Deficit Surplus Surplus Deficit Deficit Deficit -34kt +29kt +16kt -106kt -263kt -385kt
Slide 47: UBS Top Commodity Picks - September 2018
UBS Top Commodity Picks - 27 September 2018 UBS says an additional 1.1Mt of Graphite Supply (of Graphite Concentrate) is needed by 2025 which equals to another 3 Syrah Resources (350,000tpa) – UBS 27 Sept 2018
Slide 48: Billion Dollar Opportunity from Graphite
Billion Dollar Opportunity from Graphite $Billion Opportunity from Graphite
Slide 49: Graphite in EVs
Graphite in EV’s CS - Graphite in EVs
Slide 50: Credit Suisse top predictions about your future car
Credit Suisse top 10 predictions about your future car by 2040 1. 1 in 4 cars will be Powered by Batteries: 1/3 of production and 1/4 of cars on the road will be electric by 2040. Europe to power up faster than the US. 2. Electric cars will be the most cost savvy option: You will save about 100 doll
Slide 51: Leadership - Board
Leadership - Board Jeff Dowling Non-Exec Chairman Jeff has over 6 ½ years experience as a nonexecutive chairman Paul Glasson Non Exec Director (based in China) Mr Glasson is a highly regarded China and non-executive director, and over 30 years experience with Ernst and Young, predominantly strategy
Slide 52: Leadership - Executive Management
Leadership - Executive Management Nick Stephens Head of Marketing Nick Stephens has extensive global commercial and leadership Ben Van Roon Chief Operating Officer After graduating from the WA School of Mines in 1996, experience from over 25 years in the resources industry. Mr Stephens graduated fro
Slide 53: Forward Looking Statements
Forward Looking Statements • Statements and material contained in this Presentation, particularly • The information in this report that relates to Battery Minerals’ • Battery Minerals confirms that it is not aware of any new those regarding possible or assumed future performance, resources or Minera
Waratah Minerals — Resources Rising Stars Summer Series 2019 on 6ix