Aeon Metals — Argus Metals Week 2019
17 slides from Aeon Metals's conference presentation, Feb 27, 2019
Slide 1: Argus Metals Week: Copper/Cobalt and the Battery Market Disruptor
ARGUS METALS WEEK: Copper/Cobalt and the Battery Market Disruptor 27 February 2019
Slide 2: Important Information; Competent Persons Statement
IMPORTANT INFORMATION This document has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors. This document is not a prospectus and should not be considered an offer or an invitation to acquire sh
Slide 3: Lithium Ion Battery Industry Is Preparing for Massive Growth
LITHIUM ION BATTERY INDUSTRY IS PREPARING FOR MASSIVE GROWTH The advent of electric vehicles (EVs) and Build out of lithium ion battery capacity from 2018 to 20281: the emergence of battery energy storage has sparked a wave of lithium ion battery megafactories being built. ~70 lithium-ion battery me
Slide 4: Cobalt Demand 4 Fold
COBALT DEMAND 4 FOLD Lithium-ion Battery Megafactory Raw Demand Electric Vehicle Sales at 100% utilisation rate Tit bits: Even without EV demand, cobalt is a tight market Largest single use of cobalt is in smartphones (not EV’s) Only 10% of cobalt is currently consumed in EV’s Market timeline for co
Slide 5: Cobalt Geology & Processing
COBALT GEOLOGY & PROCESSING Cobalt is relatively common in the Earth’s crust BUT it is not found in its ‘native’ form in nature, and it is relatively rare to find in economically exploitable concentrations. Difficult to find Difficult to extract (process) and hence grade an influence: • lower recove
Slide 6: Cobalt Supply
COBALT SUPPLY Cobalt’s supply side is unique. Overreliance on the Democratic Republic of Congo (DRC) on the supply side cannot be avoided. Currently, the DRC is responsible for ~70% of mined cobalt units. Given this is one of the few supply regions across the world where existing mines can creep cap
Slide 7: World Cobalt Production
WORLD COBALT PRODUCTION Source: USGS, CDI, SNL, RFC Ambrian AEON METALS | ASX:AML 7
Slide 8: Cobalt Projects
COBALT PROJECTS Producers dominated by DRC. Developers short list • Sulphides • long lead times. • High grades • Low grades No new discoveries. No new discoveries. Development Companies Main Listing Aeon Metals Ltd Australia Ardea Resources Ltd Australia Clean TeQ Australia Cobalt Blue Holdings Ltd
Slide 9: Australian Cobalt Comparables
AUSTRALIAN COBALT COMPARABLES 0.18 Walford Creek Cu Lode [AML] Laterite deposit 0.16 Walford Creek Cu Lode+Co Peripheral [AML] Sulphide deposit Millenium, Qld [GMEC] KNP Co zones, WA [ARL] Syerston, NSW [CLQ] Bubble size is according to the cobalt metal content 0.14 Mutooroo, SA [HAV] 0.12 Cobalt Gr
Slide 10: Copper Supply & Demand
COPPER SUPPLY & DEMAND Copper a ~23mtpa market. Historical copper demand linked to power and urban growth. EV demand (and infrastructure – recharging poles) and potential supply kick up? • A current internal combustion vehicle uses about 22kg of copper in average. A battery EV may use ~83kg, with pl
Slide 11: Copper Supply
COPPER SUPPLY Reserve Levels of Operating Mines Top 20 Mines By Production Top 15 mines = 223Mt Reserves = 9yrs Las Bambas only new large development since 2007 cutbacks Source: RFC Ambrian, S&P Global Market Intelligence No new large discoveries since??????? AEON METALS | ASX:AML 11
Slide 12: Australian Copper Comparables
AUSTRALIAN COPPER COMPARABLES Copper Equivalent Grade (% Cu Eq.) Cobar, GLEN Cu= 5.5% Copper Mines and Projects from Australian Companies 6.0 5.0 Thalanga, RVR Cu= 0.9% Underground DeGrussa, SFR Cu= 4.1% OP + UG 4.0 Sulphur Springs, VXR Cu= 1.4% Open Pit Walford Creek Cu, AML Cu= 1.14% 3.0 Mallee Bu
Slide 13: A World-Class Copper-Cobalt Project
A WORLD-CLASS COPPER-COBALT PROJECT 100% AML owned Walford Creek Project The highest grade significant cobalt deposit in Australia Material upside along +20km strike HISTORICAL DRILLING ~88,420m ▪ 1989-1996: WMC 93 holes (DD/RC) = 16,100m ▪ 2004-2006: Copper Strike 30 holes (RC) = 3,500m ▪ 2010-2012
Slide 14: Current Resources (Feb 2019)
CURRENT RESOURCES (Feb 2019) 2. See Appendix 2 for assay results AEON METALS | ASX:AML 14
Slide 15: Metallurgical Testwork in Progress
METALLURGICAL TESTWORK IN PROGRESS Refining metallurgical process parameters set out in the 18 April 2017 Cobalt Roasting Scoping Study: • Concentrator – Cu, Pb, Zn conc • Roaster – Co & Ag product, Sulphuric Acid Metallurgical teswork program designed by engineering consultant Wood plc 1.6t materia
Slide 16: Indicative Project Parameters
INDICATIVE PROJECT PARAMETERS Feasibility items (Mining, Metallurgy, Environmental, Infrastructure/Logistics) in progress utilising first class, respected consultants. Indicative Project Parameters based on Roasting Scoping Study1 utilising 1.25mtpa Run-of-Mine Ore and subject to future modular expa
Slide 17: Conclusion; Thank You
CONCLUSION Massive lithium-ion battery growth is here Lack of project discovery due to limited exploration expenditure for both copper and coablt. Exploration not working. Geology and processing of cobalt vs capital costs – HPAL vs sulphides Lack of cobalt projects outside DRC Ore to market chain “c