Renascor Resources Ltd · ASX:RNU
Renascor Resources — Shareholder Meeting (November 2019)
40 slides from Renascor Resources's shareholder meeting presentation, Nov 20, 2019
Slide 1: Annual General Meeting Presentation
Renascor Resources For personal use only Annual General Meeting Presentation 20 November 2019 David Christensen, Managing Director ASX: RNU
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may include statements that could be deemed "forward-looking" statements. Although Renascor Resources Limited (the "Company") believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are n
Slide 3: Section 1: Overview
For personal use only Section 1: Overview 3
Slide 4: Renascor Corporate Overview
Renascor Corporate Overview For personal use only Capital Structure Share Chart Shares on issue 1,159M Performance rights 12M Unlisted options (A$0.05 exp date Dec 19) 15M Share price (18 Nov 2019) $0.014 ASX : RNU Market Cap (at $0.014/sh) $16.2M Cash (30 September 2019) $1.8M Debt (30 September 20
Slide 5: 2019 Highlights
2019 Highlights ✓ Post-tax tax NPV10 of A$388m (or US$271m) and IRR of 33% For personal use only Definitive Feasibility ✓ Low operating LOM cost of A$508/t (or US$355/t), placing it within the first quartile of Study(1) international cost curve ✓ Start-up capex of A$114m (or US$79m) plus a mining pr
Slide 6: Section 2: Siviour Graphite Project - DFS
For personal use only Section 2: Siviour Graphite Project - DFS 6
Slide 7: Project Development Summary
Project Development Summary ▪ Siviour DFS completed in November 2019 Stage 1 Stage 2 LOM For personal use only considers two stages Parameters 1 Years 1 to 4 Years 5 to 10 40 years A$ US$ A$ US$ A$ US$ ▪ Stage 1: Average Annual Production 80ktpa 144ktpa 105ktpa o Production of 80ktpa, low operating
Slide 8: Siviour Graphite Deposit
Siviour Graphite Deposit High-grade portion of the Siviour Resource to be targeted in the initial phases of a 14 phase mining plan For personal use only Mineral Resource Estimate Resources TGC Contained Category (Mt) (%) Graphite (Mt) Measured 15.8 8.8% 1.4 Indicated 39.5 7.2% 2.8 Inferred 32.1 7.2%
Slide 9: Near-Surface, Flat-Lying Ore Body
Near-Surface, Flat-Lying Ore Body Siviour’s low operating cost is due in large part to shallow, horizontal orientation of a single massive ore For personal use only body that offers comparatively low mining costs This orientation facilitates a single shallow mining design that can be mined via conve
Slide 10: Mining Schedule
Mining Schedule Ore mined in years 1 to 10 is 98% Measured and Indicated Resource category For personal use only Processing Only Renascor ASX announcement 11 November 2019, p 16. Renascor Resources Ltd | ASX: RNU renascor.com.au 10
Slide 11: Production Schedule
Production Schedule Stage 1 throughput of 825ktpa, expanding in year 5 to 1,650kpta, for a 40-year life-of mine For personal use only Average processing grade during years 1 to 4 is 11% TGC, gradually decreases in years 5 to 27 from 9% TGC to 7% TGC, and from year 28 onwards 100% of the ore will be
Slide 12: Metallurgy
Metallurgy Metallurgical testing has established ability to produce high quality graphite products at low operating cost For personal use only using conventional (non-chemical, non-thermal) flowsheet1 Particle Size Stage-one Stage-two Flake Weight % Annual Annual Category Microns (µm) Mesh Productio
Slide 13: Low Operating Cost
Low Operating Cost First quartile operating costs globally in mining friendly South Australia for both Stage 1 and Stage 2 For personal use only Benchmark Mineral Intelligence, and Renascor announcement dated 11 November 2019, p 27. Renascor Resources Ltd | ASX: RNU renascor.com.au 13
Slide 14: Mine to Market
Mine to Market Established infrastructure in coastal South Australia provides low-cost, low-risk logistics For personal use only ▪ Siviour Project is strategically located: o 8km from major highway leading to established port o 12km from main electricity grid ▪ Land rights have been secured through
Slide 15: Project Approvals
Project Approvals Project is well advanced into approvals process For personal use only ▪ Mineral Lease granted o Consistent with Mineral Lease Application (MLA) ▪ Extensive environmental review completed o Three-year period of preparation and review of all potential environmental, social, economic
Slide 16: Strategic Engineering Partnership with Royal IHC
Strategic Engineering Partnership with Royal IHC For personal use only ▪ Landmark agreement with international EPC Royal IHC Worldwide Presence contractor, Royal IHC to accelerate development of Siviour ▪ $1 million committed by Royal IHC to undertake early project works, including metallurgical tes
Slide 17: In-principle Support from Dutch Export Credit Agency
In-principle Support from Dutch Export Credit Agency Up to ~60% of initial project capex is expected to qualify for Dutch ECA cover For personal use only ▪ Letter of Interest (LOI) received for ECA cover from Dutch Export Credit Agency Atradius, the Government of the Netherlands official ECA ▪ ECA s
Slide 18: Offtake Strategy and Status
Offtake Strategy and Status Aim is to negotiate offtake terms that support debt funding For personal use only ▪ Signed a non-binding MOU in April 2018 to provide graphite concentrates to China’s Qingdao Chenyang Graphite (“Chenyang”) o Chenyang is one of the largest graphite companies in the Qingdao
Slide 19: Section 3: The Graphite Market
For personal use only Section 3: The Graphite Market 19
Slide 20: Graphite and Batteries
Graphite and Batteries Graphite is a critical component in the supply of lithium-ion batteries For personal use only (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 20
Slide 21: Electric Vehicle Demand is Increasing
Electric Vehicle Demand is Increasing Increased demand for lithium-ion batteries is being driven by increasing uptake of Electric Vehicles For personal use only (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 21
Slide 22: Graphite Demand is Increasing
Graphite Demand is Increasing Increased graphite demand is being driven by accelerated demand for lithium-ion batteries For personal use only (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 22
Slide 23: Graphite Supply and Demand Forecast
Graphite Supply and Demand Forecast Graphite flake demand is forecast to exceed supply by 2023 For personal use only Start of projected supply shortage New supply needed to prevent supply shortage (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 23
Slide 24: Graphite Supply and Demand Balance -100 mesh
Graphite Supply and Demand Balance -100 mesh (-150μm) The greatest graphite supply deficit can be seen in the -100 mesh (-150μm) flake size For personal use only ▪ High demand for lithium ion battery anode manufacture is driving the supply deficit in the -100 mesh (-150μm) flake size ▪ Siviour DFS p
Slide 25: New Graphite Supply is Needed
New Graphite Supply is Needed China dominates current supply, but supply is restricted and unstable For personal use only ▪ Increased domestic demand o Graphite is becoming a strategically important mineral due in large part to its use in lithium- ion batteries ▪ Supply limitations o Issues with pro
Slide 26: Graphite Supply Forecast by Country
Graphite Supply Forecast by Country Future increases in graphite demand will need to be met by suppliers outside of China For personal use only (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 26
Slide 27: Advantage of New Graphite Supply from Australia
Advantage of New Graphite Supply from Australia Renascor offers competitive new supply from secure jurisdiction: Australia For personal use only ▪ In recent years, potential new supply has been dominated by large developments in East Africa ▪ Sovereign risk poses added challenge to securing developm
Slide 28: Section 4: Advanced Manufacturing - Spherical Graphite
For personal use only Section 4: Advanced Manufacturing - Spherical Graphite 28
Slide 29: Downstream Production of Spherical Graphite
Downstream Production of Spherical Graphite Siviour graphite concentrates can be upgraded to higher For personal use only value spherical graphite The graphite supply chain from mine to lithium-ion battery anode ▪ Spherical graphite is manufactured from graphite produced at mine site through a furth
Slide 30: Supply of Spherical Graphite Dominated by China
Supply of Spherical Graphite Dominated by China For personal use only China currently supply 100% of the natural flake graphite used in lithium ion battery anodes ▪ Non-Chinese battery suppliers are dependent on Chinese mines and Chinese spherical production for critical raw material ▪ Chinese suppl
Slide 31: Strong Growth Projections for Spherical Graphite
Strong Growth Projections for Spherical Graphite For personal use only Lithium-ion battery demand is driving projected increases in the demand for spherical graphite ▪ Projected compounded annual growth rates of up to 26% between 2015 and 2030 ▪ No current Non-Chinese supplier (Source: Benchmark Min
Slide 32: Renascor's Spherical Graphite PFS Demonstrates Opportunity
Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More Value from Siviour For personal use only ▪ Spherical graphite PFS shows potential for valued-added production of spherical graphite ▪ Leverages off key comparative advantages of Siviour mine, namely low-cost and low-sovereign
Slide 33: Section 5: Other Projects
For personal use only Section 5: Other Projects 33
Slide 34: Kaolin and Rare Earths
Kaolin and Rare Earths For personal use only Ungarra Kaolin ▪ Kaolin prospect defined by historical drilling and widespread kaolin sub-cropping near the township of Ungarra ▪ Scanning electron microscopy (SEM) has identified halloysite within the kaolinised granite Tumby Bay Rare Earths ▪ Rare earth
Slide 35: Section 6: Conclusions and Next Steps
For personal use only Section 6: Conclusions and Next Steps 35
Slide 36: Re-Rating Potential
Re-Rating Potential For personal use only Renascor has quickly advanced the development of Siviour since its discovery in 2016 and has potential to continue to climb the value curve. Market capitalisations as of 7 Nov 19 (source: ASX reports and publicly available price information) Renascor Resourc
Slide 37: Near-term Value Drivers
Near-term Value Drivers For personal use only ▪ Strong upcoming news flow expected to include: o Offtake; With the completion of DFS, there are plans to generate customer samples for potential offtake developments in 2020 o FEED; After the DFS release the Project advances to the FEED level engineeri
Slide 38: Timeline to Production
Timeline to Production For personal use only Renascor Resources Ltd | ASX: RNU renascor.com.au 38
Slide 39: Summary
Summary For personal use only ▪ Siviour DFS confirms a world-class graphite deposit ▪ One massive ore body offers consistent high-quality supply ▪ Globally competitive low-cost operations ▪ Staged project development offers fundable initial capex ▪ In-principle finance support from Dutch Export Cred
Slide 40: Renascor Resources Limited
For personal use only Renascor Resources Limited 36 North Terrace Kent Town, South Australia 5067 Phone: + 61 8 8363 6989 Email: info@renascor.com.au Website: www.renascor.com.au ASX Code: RNU
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