Core Lithium Ltd · ASX:CXO
Core Lithium — Shareholder Meeting (November 2019)
25 slides from Core Lithium's shareholder meeting presentation, Nov 28, 2019
Slide 1: AGM Presentation
For personal use only AGM Presentation 28 November 2019
Slide 2: Important and Cautionary Notes
Important and Cautionary Notes For personal use only The information in this release that relates to metallurgy and metallurgical test work has been reviewed by Mr Noel O’Brien, The mineral tenements of the Company as described in this presentation are at various stages of exploration, and potential
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes For personal use only Competent Person Statements: ‘expect’,’intend’,’may’,’would’,’could’,’should’,’scheduled’,’will’,’plan’,’forecast’,’evolve’ and similar expressions. Persons The Mineral Resources and Ore Reserves underpinning the Production Target have been prepar
Slide 4: Australia's Next Lithium Producer
Australia’s Next Lithium Producer For personal use only Core positioned to be Australia’s next Lithium Producer, developing one of Australia’s most capital efficient and low- cost lithium projects • World demand for lithium batteries and Electric Vehicles continues to grow YoY • Core’s Finniss Lithi
Slide 5: Corporate Information
Corporate Information For personal use only Share Price Performance Last Twelve Months Capital Structure (as at 31-Aug-19) $0.07 20m Share Price ~A$0.04 $0.06 Shares on Issue ~790M $0.05 15m Market Capitalisation ~A$32M $0.04 10m Options and Rights Unlisted 31.1M $0.03 Cash (30 September 2019) A$7.1
Slide 6: Why is more spodumene needed?
Why is more spodumene needed? For personal use only Medium and Long-Term Lithium Demand Increasing • Electric Vehicle (EV) v Internal Combustion Engine (ICE) price parity by 2022/23 – this will be significant inflexion point for extraordinary demand growth • Mainstream car manufacturers bringing for
Slide 7: Why is Core's high-quality lithium needed?
Why is Core’s high-quality lithium needed? For personal use only • Current raw lithium supply meeting volume needs in short term • But, • New producers in Australia have experienced high operating costs and difficulty sustaining customer quality • High Capex flotation process not meeting expected re
Slide 8: Finniss Project Spodumene Concentrate: Core's Supply Chain Success Factors
Finniss Project Spodumene Concentrate: For personal use only Core’s Supply Chain Success Factors • Core’s Finniss Lithium Project meets the markets needs because of : • Lower Capex US$51M • Lower Transport and Operating Cost C1 Cash Opex US$300/t • High Revenue approx. ($US110,000,000 per year) • Pr
Slide 9: DFS April 2019
DFS April 2019 For personal use only DFS is Project Snapshot - Project continuing to evolve and grow • DFS Confirms Finniss Lithium Project as robust, high-margin Management Case Highlights low-capex, lithium project • Only A$76M Capex to produce 175,000tpa production Strong cashflow Rapid payback (
Slide 10: Prime Location and Valuable Infrastructure Available
Prime Location and For personal use only Valuable Infrastructure Available Aerial view of Darwin, the Port of Darwin and the Grants Lithium development Excellent Location and Infrastructure Advantages 10
Slide 11: Darwin Port Heads of Agreement
Darwin Port For personal use only Heads of Agreement Core has agreement with Darwin Port to ship 250,000tpa of spodumene concentrate Darwin Port is Australia’s nearest port to China East Arm Wharf facilities at Darwin Port are well suited to handle potential future production from Core’s lithium pro
Slide 12: Grants Lithium Project – First in line at Finniss
Grants Lithium Project – First in line at FINNISS For personal use only Grants Lithium Project – General Layout Grants Lithium Project - DMS Plant High Quality Spodumene Concentrate 12
Slide 13: High Grade Reserves + Efficient DMS Process = High Quality Spodumene Concentrate
High Grade Reserves + Efficient DMS Process = For personal use only High Quality Spodumene Concentrate Concentrate Quality • 5.5-6.0% Li2O concentrate • +70% net recoveries 13
Slide 14: Offtake and Prepayment Agreements
Offtake and Prepayment Agreements For personal use only Offtake, Investment and Product Prepayment with some of China’s Largest Lithium Converters Binding Offtake for 75,000tpa of spodumene Key Binding Pre Payment and Offtake Terms representing approx. 40% of Core’s 175,000tpa production capacity Pr
Slide 15: New Non-Binding Termsheet on Fine Lithium
New Non-Binding Termsheet on Fine Lithium For personal use only Product Adds to Finniss Revenue Non-Binding Term sheet signed for sale of up to 200,000tpa of Fine Lithium • Indicative pricing of between $US55/t and US$65/t of FL • 200,000 to 250,000tpa FL forecast to be produced by Core as a by-prod
Slide 16: Currently Drilling to Expand Reserves and Resources
Currently Drilling to Expand Reserves and Resources - For personal use only Significant Upside • Current and Future Drilling Programs leading to multiple Mineral Resource increases & substantial upgrades in 2019 and beyond • Pipeline of high-grade lithium targets that form the basis of its resource
Slide 17: BP33 Drilling Update
Expanding Resource and Reserves For personal use only BP33 Drilling Update • Thick drill intersections of high-grade spodumene pegmatite highlight a consistent quality of the lithium orebody at BP33 • RC drill intersections include: • 52m @ 1.28% Li2O from 77m FRC212: • including 23m @ 1.85% Li2O fr
Slide 18: Carlton Drilling Update
Expanding Resource and Reserves For personal use only Carlton Drilling Update • Wide intersections of spodumene pegmatite from all completed RC drillholes at the Carlton Prospect in recent Mineral Resource growth drilling at Finniss • All pegmatite intersections greater than 30m • The two deepest ho
Slide 19: Carlton Drilling Update
Expanding Resource and Reserves For personal use only Carlton Drilling Update • All pegmatite intersections greater than 30m: • 35m Spodumene Pegmatite (NRC151) • 34m Spodumene Pegmatite (NRC152) • 31m+ Spodumene Pegmatite (NRC154) • 36m Spodumene Pegmatite (NRC156) • 44m Spodumene Pegmatite (NRC157
Slide 20: Mine Studies and Resource/Reserve Upgrades Underway
Mine Studies and Resource/Reserve Upgrades Underway Toward Increasing Mine Life For personal use only • DFS clearly showed that additional mine life has significant upside economics • Core has resource and reserve expansion drilling underway • Mining studies also in progress toward significantly inc
Slide 21: The Journey Toward Construction In 2020
The Journey Toward Construction In 2020 For personal use only Core’s Project Development and Approvals Progress 2020 construction timeline adapting to fit best market dynamics 2020 2019 Substantial Reserve and 2019 Final regulatory Resource and approval steps Feasibility 2019 NT EPA Additional Study
Slide 22: Positioned to be Australia's Next Lithium Producer
Positioned to be Australia’s For personal use only Next Lithium Producer High grade 1.4% Best logistics chain 01 lithium Mineral 04 Excellent infrastructure and Reserve located 25km from Darwin, close to Asian customers Low risk Offtake and funding 02 Conventional open pit 05 Offtake (with price flo
Slide 23: For broker and media enquiries
For personal use only For broker and media enquiries: Cannings Purple Warrick Hazeldine: +61 417 944 616 Andrew Rowell: +61 400 466 226
Slide 24: Appendix
For personal use only Appendix
Slide 25: Finniss Lithium Project Reserves and Resources
Finniss Lithium Project Reserves and Resources JORC (2012) Resource Table1 For personal use only Resources Ore Grade Contained Deposit Classification Mt LiO2 % LiO2 t Measured 1.09 1.48% 16,100 Indicated 0.82 1.54% 12,600 Grants Inferred 0.98 1.43% 14,000 Total 2.89 1.48% 42,700 Measured - - - Indic