Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Shareholder Meeting (November 2017)
31 slides from Sunrise Energy Metals's shareholder meeting presentation, Nov 1, 2017
Slide 1: Annual General Meeting Presentation
ANNUAL GENERAL MEETING PRESENTATION 1 NOVEMBER 2017
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared by the management of Clean TeQ Holdings Limited (the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The information is based on publicly a
Slide 3: Clean TeQ's Mission
CLEAN TEQ’S MISSION MISSION Apply our innovative, proprietary processing technologies to: 01 Produce metals that are highly geared to disruptive changes in technologies and markets, particularly in global energy and transport 02 Deliver water purification solutions for the world’s most challenging w
Slide 4: Company Overview
COMPANY OVERVIEW CAPITAL STRUCTURE SHARE PRICE PERFORMANCE ASX code CLQ $1.60 Share Price (27 October 2017) A$1.37 Shares 578.9 M $1.40 Options 41.7 M Performance Rights 6.6 M $1.20 Market Capitalisation (undiluted1) A$790 M $1.00 Cash @ 30 Sept 2017 A$62.9 M A$ per share Liabilities (Mar-18 notes)
Slide 5: Cathode Market
CATHODE MARKET CLEAN TEQ PA G E 4
Slide 6: Value Chain
VALUE CHAIN MULTIPLE STAGES RELIANT ON QUALITY RAW MATERIALS CLEAN TEQ PA G E 5
Slide 7: Chemistry by Market
CHEMISTRY BY MARKET DOMINANT CHEMISTRIES FOR EV REQUIRE NICKEL AND COBALT 16% 41% 10% 9% 24% 64ktpa 164ktpa 40ktpa 36ktpa 96ktpa LCO NCM NCA LMO LFP (Lithium-Cobalt-Oxide) (Nickel-Cobalt- (Nickel-Cobalt- (Lithium-Manganese- (Lithium-Iron- Manganese) Aluminium) Oxide) Phosphate) Still one of the high
Slide 8: Cathode is the Key to Cost
CATHODE IS THE KEY TO COST NICKEL AND COBALT PRICES DRIVE CELL COST Battery Production Raw Material Cost Metal Cost in Cathode Cost Breakdown Breakdown Active Material 100% 100% Housing and feedthrough ~5% of total Lithium cell raw 5% material cost 80% 80% Separator Manganese Electrolyte 60% 60% US$
Slide 9: Cobalt Market
COBALT MARKET COBALT FORECAST TO BE IN SIGNIFICANT DEFICIT IN THE FUTURE ▪ Battery chemicals dominate cobalt usage Cobalt Price (US$/lb) | 27.20 US$/lb | 16 October 2017 representing 78% of total demand in 2016 30 ▪ Cobalt has been one of the best performing 25 metals with prices increasing by ~160%
Slide 10: A Problematic Supply Chain
A PROBLEMATIC SUPPLY CHAIN MAJORITY OF CURRENT COBALT SUPPLY SOURCED FROM AFRICA “The majority of the cobalt is heading straight to China. Their global hold is huge.” Percentage of global cobalt production as 95% - CRU, May 2016 by-product from copper and nickel mining “While the occasional [analyst
Slide 11: Syerston Project
SYERSTON PROJECT SYERSTON PA G E 1 0
Slide 12: Recent Developments
RECENT DEVELOPMENTS STRONG MOMENTUM TOWARDS DEVELOPMENT OF SYERSTON ✓ Upgraded mineral resource confirming 30% increase in cobalt resource (relative to PFS) October 2017 march 2017 ✓ Announced binding five year offtake for 20% of production with Beijing Easpring August 2017 march 2017 ✓ Acquisition
Slide 13: Syerston Autoclaves
SYERSTON AUTOCLAVES CRITICAL EQUIPMENT SECURED ▪ Acquired from Vale for US$6.5m in July 2017 ▪ Significantly de-risk project development schedule ▪ Currently being shipped to Port Pirie, Australia SYERSTON PA G E 1 2
Slide 14: Syerston Project
SYERSTON PROJECT FULLY PERMITED DEVELOPMENT PROJECT LOCATED IN NSW ▪ The Syerston Project is 100% owned by Clean TeQ and located 350km west of Sydney ▪ Laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium ▪ Uniquely positioned as one of the largest and highest grade sources o
Slide 15: Known Geology
KNOWN GEOLOGY ONE OF AUSTRALIA’S LARGEST UNDEVELOPED NICKEL-COBALT RESOURCES ▪ Over 1,300 drill holes provide for strong geological Ore Reserves Estimate1 understanding of the resource Classification Mt Ni % Co % ▪ The resource is shallow (5m to 40m) and extends Proved 55 0.71 0.10 over a 2km horizo
Slide 16: Simple Low Risk Mining Operation
SIMPLE LOW RISK MINING OPERATION SIMPLE AND LOW COST OPEN-PIT MINING AT SHALLOW DEPTHS ▪ Shallow deposit allows for simple strip-mining method and is amenable to free digging, with minimal grinding and beneficiation ▪ The average strip ratio is 0.8x:1.0 (waste:ore) (i.e. there is more ore than waste
Slide 17: 2016 PFS Highlights
2016 PFS HIGHLIGHTS LARGE, LOW-COST AND WITH ATTRACTIVE ECONOMICS ▪ PFS completed in September 2016 and ✓ Nickel sulphate production1 85.1ktpa demonstrated highly favourable economics ✓ Contained nickel production1 18.7ktpa ▪ Processing of 2.5Mtpa ore over an initial 20- ✓ Cobalt sulphate production
Slide 18: 2016 PFS Highlights (cont.)
2016 PFS HIGHLIGHTS (CONT.) Q1 COST POSTION WITH MEANINGFUL EXPOSURE TO CO AND NI Production Profile1 Global Nickel C1 Cash Cost Curve3 LOM REVENUE2 After co-credits Spot prices 40 10.0 35 8.0 Metal equivalent content (ktpa) 30 55% 45% SYERSTON 6.0 PFS 25 Nickel price: US$4.30/lb 4.0 USD/lb 20 2.0 1
Slide 19: Offtake / Customer Strategy
OFFTAKE / CUSTOMER STRATEGY RECENTLY SECURED BINDING OFFTAKE AGREEMENT – SEEKING ADDITIONAL CONTRACTS IN 2017 / 2018 ▪ Clean TeQ’s has agreed a binding five year offtake with Beijing Easpring for 20% of future production Binding five-year offtake agreement for 20% of cobalt and ✓ nickel sulphate pro
Slide 20: Near-Term Objectives
NEAR-TERM OBJECTIVES FAST TRACKING SYERSTON’S DEVELOPMENT IS OUR PRIORITY 01 Complete the Definitive Feasibility Study in Q1 2018 02 Sign further offtake agreements with strategic counterparties during 2017/18 03 Continue progress towards fully financing Syerston 04 Optimise to accelerate developmen
Slide 21: Scandium
SCANDIUM A NEW GENERATION OF LIGHTWEIGHT ALLOYS ▪ Syerston is one of the world’s largest and Airbus Group’s Light-rider highest grade scandium resources ▪ Scandium is used to provide next generation lightweight aluminium alloys for key transportation markets ▪ Clean TeQ continues to promote the use
Slide 22: Fresh Water
FRESH WATER WAT E R PA G E 2 1
Slide 23: Fresh Water Scarcity
FRESH WATER SCARCITY THE ECONOMIC IMPERATIVE FOR TREATMENT AND RECYCLING WAT E R PA G E 2 2
Slide 24: Fresh Water Scarcity
FRESH WATER SCARCITY THE ECONOMIC IMPERATIVE FOR TREATMENT AND RECYCLING WAT E R PA G E 2 3
Slide 25: Water Markets
WATER MARKETS THE ECONOMIC IMPERATIVE FOR TREATMENT AND RECYCLING Municipal Effluent Treatment Power Wastewater Treatment Purify wastewater effluent to meet Purify highly polluted and hard to treat more stringent regulations and to wastewater. Regulations coming for allow reuse or disposal to the Ze
Slide 26: Delivering on Contracts
DELIVERING ON CONTRACTS HOYO JOINT VENTURE – CHINA ▪ Initial contract to build, own and operate a Clean TeQ CIF® water treatment plant to treat up to 13,000 tonnes of effluent per day for a 20-year period at a waste ▪ Design & engineering complete with construction expected to commence Q1 2018 MULTO
Slide 27: Technology
TECHNOLOGY TECHNOLOGY PA G E 2 6
Slide 28: Developing Our Core Capability
DEVELOPING OUR CORE CAPABILTY GRAPHENE – A REVOLUTIONARY MATERIAL ▪ Graphene is the new plastic ▪ Graphene is a revolutionary material for a wide variety of fields ▪ Graphene based products have potential for disrupting metals separation and water treatment markets TECHNOLOGY PA G E 2 7
Slide 29: Developing Our Core Capability
DEVELOPING OUR CORE CAPABILTY CONTINUED FOCUS ON IP DEVELOPMENT Graphene Adsorbents for Graphene Membranes for Hybrid Ion Exchange Water & Wastewater Municipal and Industrial Processes for Water & Metals Treatment Applications ▪ Targeting multi billion dollar ▪ Targeting multi-billion dollar ▪ Exten
Slide 30: Sam Riggall, Chief Executive Officer
Sam Riggall Clean TeQ Holdings Limited Chief Executive Officer 350 Collins Street Melbourne VIC 3000 M: +61 3 9797 6700 AUSTRALIA E: sriggall@cleanteq.com www.cleanteq.com CLEAN TEQ PA G E 2 9
Slide 31: Reserves and Resources
RESERVES AND RESOURCES COMPETENT PERSON CONSENTS The information in this document that relates to nickel-cobalt Mineral Resources from the 2016 Pre Feasibility Study is based on information compiled by Diederik Speijers and John McDonald, who are Fellows of The Australasian Institute of Mining & Met
Clean TeQ Holdings — Shareholder Meeting (November 2017) on 6ix