Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Investor Presentation (July 2015)
36 slides from Sunrise Energy Metals's investor presentation, July 2015
Slide 1: Entitlement Offer Presentation July 2015
Clean TeQ Holdings Limited (ASX: CLQ) Entitlement Offer Presentation July 2015 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, OR TO US PERSONS
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information This presentation has been prepared by Clean TeQ Holdings Limited (CLQ, Clean TeQ or Company) in relation to the pro-rata non-renounceable offer of new Clean TeQ Holdings Limited ordinary shares under section 708AA of the Corporations Act 2001 (Cth). The presenta
Slide 3: Table of Contents
Table of Contents Section Contents Page Section 1 Investment Highlights 4 Section 2 Entitlement Offer Overview 5 Section 3 Entitlement Offer Timetable 7 Section 4 Company Overview 8 Section 5 Clean TeQ Metals 14 Section 6 Syerston Scandium Project 21 Section 7 Clean TeQ Water 31 Section 8 Key Risk F
Slide 4: Investment Highlights
Clean TeQ | Investment Highlights INNOVATIVE PLATFORM TECHNOLOGY • Continuous Ion Exchange Platform Technology – intellectual property 100% owned by CLQ SYERSTON SCANDIUM PROJECT (100% owned by CLQ) • Potential to develop the world’s first primary supply of Scandium • Positive scoping study results
Slide 5: Entitlement Offer Overview
Clean TeQ | Entitlement Offer Overview Clean TeQ Holdings Limited (ASX:CLQ) is undertaking an approximate $6.6 million (before costs) underwritten equity capital raising through a non-renounceable 1 for 10 entitlement offer (Entitlement Offer) of fully paid ordinary shares in Clean TeQ (New Shares).
Slide 6: Uses of Proceeds
Clean TeQ | Uses of Proceeds Funds raised from the Entitlement Offer, together with other funds the Company has access to, will be used to progress the development of CLQ’s 100% owned Syerston Scandium Project in NSW including: • Metallurgical test-work to confirm the optimal process for leaching of
Slide 7: Entitlement Offer Timetable
Clean TeQ | Entitlement Offer Timetable Event Date Announcement of the Entitlement Offer Monday, 27 July 2015 Shares traded on an “ex” entitlement Wednesday, 29 July 2015 Record Date for eligibility to participate in the Entitlement Offer Friday, 31 July 2015 Despatch of Entitlement Offer Booklet an
Slide 8: Corporate Overview
Clean TeQ | Corporate Overview Issued Capital Cash and Debt ASX code CLQ Cash* $3.3 M Shares (pre-issue) 368.8 M Short Term Debt $1.2 M Options 20.0 M Long Term Debt (promissory note) $3.0 M Performance Rights 1.7 M Fully Diluted Capital (pre-issue) 390.5 M Share Price Chart (A$/share) Share Price 2
Slide 9: Board and Management
Clean TeQ | Board and Management CHAIRMAN & CEO - Sam Riggall EXECUTIVE DIRECTOR AND CIO - Peter Voigt Sam is a graduate in law and commerce and an MBA from Peter is a graduate in chemistry and has a MAppSc from Royal Melbourne University. He was previously Executive Vice President Melbourne Institu
Slide 10: Business Unit Overview
Clean TeQ | Business Unit Overview Metals The Company’s Clean-iX® Continuous Ion Exchange technology is an innovative process for the extraction and purification of a range of valuable metals from slurries and solutions that are not amenable to conventional separation. Utilising its proprietary tech
Slide 11: Continuous Ion Exchange Milestones
Clean TeQ | Continuous Ion Exchange Milestones Year Milestone 1989 CLQ founded with a focus on biological air pollution control 1989-2000 Company grows to become largest odour control company in Australia 2000 Company acquires worldwide exclusive license for continuous ion exchange technology from R
Slide 12: Clean-iX Continuous Ion Exchange
Clean-iX® | Continuous Ion Exchange Ion exchange has been used for many decades to separate and recover soluble elements including heavy metals. The process utilises resin (plastic) beads which are chemically engineered with a customised ionic charge. The ionic charge of the resin, when introduced i
Slide 13: Clean-iX Continuous Ion Exchange
Clean-iX® | Continuous Ion Exchange Continuous Ion Exchange involves the continuous counter-current flow of chemically charged resin beads through solutions and slurries in specially designed columns. Targeted elements are adsorbed onto the beads, which are then pumped into separate columns where th
Slide 14: Clean TeQ Metals | Clean iX
Clean TeQ Metals | Clean iX® Clean-iX® combines the processes of: Metals Recovered with Clean-iX®: • Leaching • Extraction • Elution/Desorption Key Advantages: • Higher metal recovery • High selectivity for target metals, reducing system size and reagents • Multiple metal products produced from one
Slide 15: Scandium | The Next Strategic Metal
Scandium | The Next Strategic Metal • Scandium (Sc) commonly marketed as Scandium Oxide (Sc2O3). • Sc is abundant in Earth’s crust but rare to find concentrated occurrences for economic extraction. • Scandium’s value as an alloy of aluminium has been well understood for decades. • Scandium can play
Slide 16: Al-Sc Alloys | Next Generation Materials
Al-Sc Alloys | Next Generation Materials Grain Refinement: Aluminium-Scandium (Al-Sc) alloy physical characteristics: • Grain refinement: smaller evenly shaped grains for increased strength • Superplasticity: Al-Sc alloys can be subjected to higher stresses to form more complex shapes • Precipitatio
Slide 17: Scandium Alloys | Aerospace and Automotive
Scandium Alloys | Aerospace and Automotive Commercial Aerospace Commercial Automotive New Airplanes to be delivered by 2032: New Light Vehicles 2010-2015 (millions of units): 2015 Total: 75M (Source: Boeing) Total: 35,280 Average Aluminium content per aircraft: • Boeing: 51 tonnes • Airbus: 43 tonne
Slide 18: Solid Oxide Fuel Cells | Energy Production
Solid Oxide Fuel Cells | Energy Production • Solid Oxide Fuel Cells (SOFC’s) convert gas into electricity, heat and water. • SOFC’s use hard ceramic materials as the electrolyte – normally yttrium-stabilised zirconium. • Sc-stabilised zirconium electrolyte allows for operation at much lower temperat
Slide 19: Scandium Alloys | Additive Layer Manufacturing
Scandium Alloys | Additive Layer Manufacturing 3D printed part (EADS-Airbus): • Al-Sc alloys are already used for Additive Layer Manufacturing (3D printing) of component parts utilising computer aided design. • Complex geometries and unique shapes formed to minimising waste and reduce cost of produc
Slide 20: Scandium | Supply Chain Challenges
Scandium | Supply Chain Challenges • Sourced as a by-product or from stockpiles - no current sources of primary mine supply. • Due to limited supply and high production costs, total global consumption ranges from 10- 12tpa. • Supply is heavily fragmented, as by-product streams generally only contain
Slide 21: Syerston | Scandium Project
Syerston | Scandium Project There are a number of things which need to occur for the Scandium market to grow significantly: 1) Reliable supply over decades – current sources of supply are highly fragmented and large volumes are not available. 2) Lower Sc2O3 pricing - low grades/concentrations of exi
Slide 22: Syerston | Project Location & History
Syerston | Project Location & History The Syerston Project consists of: • An Exploration License (EL 4573); • Mining Lease Applications (MLA 113, 132, 139, 140, 141 & 162 [limestone deposit]); • Freehold land over portion of project area; • Established bore field south of Project; and • Project deve
Slide 23: Syerston | Project Geology
Syerston | Project Geology • Shallow resource amenable to low cost open cut mining. • High grade zones for selective mining in early years of operation. • Potential resource upgrade through assaying shallow depths. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITE
Slide 24: Syerston | Scandium Mineral Resource
Syerston | Scandium Mineral Resource Syerston Scandium Mineral Resource Estimate (2012 JORC) Classification Tonnage, Sc Grade, Sc Sc2O3 Cut-off Category Mt ppm Tonnes Equiv Tonnes* Measured 1.1 411 465 712 Sc Indicated 17.9 424 7,570 11,583 >300ppm Inferred 6.4 386 2,480 3,795 Total 25.4 414 10,516
Slide 25: Syerston | Scandium Mineral Resource
Syerston | Scandium Mineral Resource • Other scandium sources range from 10-100ppm Sc. • Scandium production from these sources are limited by: • Throughput of material • Relative operating costs to recover low-grade material • The Syerston project has grades 6-30 times conventional scandium sources
Slide 26: Syerston | Scoping Study Flowsheet
Syerston | Scoping Study Flowsheet Scoping Study Report May 2015: • Mineral Resource Model and Mine Pit Model completed by OreWin Pty Ltd • Metallurgical testwork completed internally and at ALS Metallurgy in Perth on Syerston samples • Capital and operating cost estimate by CPC Project Design Pty L
Slide 27: Syerston | Scoping Study
Syerston | Scoping Study Parameter Assumption / Output • Robust project economics for long term scandium production. Resource Base used for Mine Measured & Indicated Resource Processing Plant Throughput 64,000tpa (1.28Mt over 20 years) • Conservative Sc2O3 price Processing Plant Average Feed Grade (
Slide 28: Syerston | Scoping Study
Syerston | Scoping Study Capital Cost Estimate Operating Cost Estimate COST AUD$ per USD$ per Plant Area Cost Centre AUDM$ p.a. (AUD$M) kg Sc2O3 kg Sc2O3 1 Beneficiation & Leach Feed $2.2 Variable Costs High Pressure Acid Leach (HPAL) $25.8 Mining $1.1 $25 $20 Resin-In-Pulp (RIP) $3.0 Reagents $8.6
Slide 29: Syerston | Fast Track Development Path
Syerston | Fast Track Development Path Eastern borefield Sufficient resource definition for Feasibility Study (Measured & Indicated) - Includes high grade zones for first years of operation. Development Consent in place, with Mining Lease Applications (MLA) currently over project area. • Includes al
Slide 30: Syerston | Indicative Development Timeline
Syerston | Indicative Development Timeline Year 2014 2015 2016 2017 Stage Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Initial Resource Statement √ Metallurgical Bench Scale Testwork √ √ Scoping Study √ √ Feasibility Study Piloting Feasibility Study Offtake Agreement Negotiations Project Funding Design &
Slide 31: Clean TeQ Water | Technology
Clean TeQ Water| Technology Features: • Moving Ionic (CIF®) or Non-ionic (MPA®) resin bed • Resin and water flow adjustable • Fully automatic operation • Uses low cost easily available chemicals • Tolerates suspended solids without fouling • Resin continuously cleaned and regenerated • Modular const
Slide 32: Clean TeQ Water | Strategic Partnerships
Clean TeQ Water | Strategic Partnerships China Department of Shanghai Water Three Gorges Municipal Conservation Corporation Authority 9% 70% 21% SIDRI China JV Chinese SIDRI/CLQ Market • Clean TeQ and Shanghai Investigation Design Research Institute (SIDRI) signed a Heads of Agreement to form a join
Slide 33: Key Risk Factors
Clean TeQ | Key Risk Factors Potential investors should be aware that there are risks associated with investing in CLQ. Some risks are beyond the control of CLQ and its Directors and Management and may have a material impact on CLQ’s future operating and financial performance, and/or financial posit
Slide 34: Key Risk Factors cont'd
Clean TeQ | Key Risk Factors cont’d Key Risk Details CLQ’s Syerston Scandium Project is at pre-development stage. If CLQ decides to proceed to production, the process of developing and constructing the project will be subject to many uncertainties, including the timing and cost of construction, the
Slide 35: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. New Zealand T
Slide 36: Contact Information
Contact Information Ferntree Business Park 2 Acacia Place Notting Hill, Victoria, 3168 Australia Tel : +61 3 9797 6700 Email: info@cleanteq.com Web: cleanteq.com For more information about Clean TeQ please contact: Ben Stockdale, CFO or Melanie Leydin, Company Secretary NOT FOR RELEASE, PUBLICATION
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