Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Noosa Conference 2021
37 slides from Lake Resources N.l's conference presentation, Nov 12, 2021
Slide 1: Direct Lithium Extraction & Project Finance – Kachi Lithium Project
12 November 2021 ASX:LKE | FRA:LK1 | OTC:LLKKF For personal use only Direct Lithium Extraction & Project Finance Kachi Lithium Project Steve Promnitz - Managing Director, Lake Resources
Slide 2: Disclaimer
Disclaimer For personal use only General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings with sophisticated and Certain statements contained in this presentation, including informatio
Slide 3: World's cleanest lithium
World’s cleanest lithium. For personal use only Four lithium projects in heart of the Lithium Triangle. Large leaseholding 2,200km2 (550,000 acres) World’s five largest producers all have equity in operations in the Lithium Triangle. Lake’s flagship project ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 3
Slide 4: Lake Resources - World's Cleanest Lithium
Lake Resources - World’s Cleanest Lithium. For personal use only 99.97% • CLEANER LITHIUM – Lake’s 99.97% purity product - far lower impurities vs 99.5% battery grade lithium carbonate. Higher purity lithium = higher battery performance. • CLEANER TECHNOLOGY: Lilac direct lithium extraction – High P
Slide 5: Process and ESG Benefits – Cleaner Technology
Process and ESG Benefits – Cleaner Technology For personal use only Process – Lilac’s Ion Exchange Direct Lithium Extraction ESG benefits – Low Carbon, Low Land & Water Use ASX: LKE OTC: LLKF SLIDE / 5
Slide 6: Direct Lithium Extraction
Direct Lithium Extraction 1st Century technology Lilac Solutions - For personal use only Cleaner technology Lilac direct extraction displaces evaporation process Brine in – Lithium chloride out • High purity • Faster process • High recovery 21st Century technology • Sustainable – No brine heating •
Slide 7: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller environment footprint – Low Land use - Lower water use – No brine depletion For personal use only Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (1km2) Brine Returned to Source All Brine Evaporated Source: SQM / ALB presentations 2
Slide 8: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller environment footprint – Lower land use For personal use only Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (<1km2) <1km2 wide 170km 2 Source: SQM / ALB presentations 2020; 170km2 for c.80,000 tpa LCE. Lake/Lilac/Hatch estimates in
Slide 9: Delivers a Cleaner Environment – Lower greenhouse gases
Delivers a Cleaner Environment Smaller carbon footprint – Lower greenhouse gases For personal use only Kg CO2e/kg product Li Hydroxide LCE from Hard Rock Spodumene Li Carbonate LCE from Brine 4-5 14 - 18.2 Li Carbonate LCE from Lake/Lilac DLE Also expected to be low Note: Hard Rock = Spodumene conve
Slide 10: Sustainable lithium
Sustainable lithium 20 For personal use only CO2 e Footprint Lake / Lilac DLE method CO2e/kg lithium product 15 Lithium Production • Low CO2 footprint 10 Lake / Lilac • Low water usage DLE method 5 • Low land use 0 Production type: Hard Rock Evaporation DLE Hard Rock to Li Hydroxide Brine Evaporatio
Slide 11: Project – Large, Scalable - On Path to Production
Project – Large, Scalable - On Path to Production For personal use only Lilac Solutions – Earn-in to Project & Tech sector backers Kachi Project – Top 10 Lithium Brine Resource - Scalable, as Control Entire Basin – Upside - Expansion study to 51,000 tpa LCE ASX: LKE OTC: LLKF SLIDE / 11
Slide 12: Partnership - Lilac Solutions + Kachi Project
Partnership- Lilac Solutions + Kachi Project Aligns Climate Tech with Upstream Lithium Supply For personal use only • Lilac to Earn in to Kachi Project up to max 25% stake – via performance based milestones ▪ Initial 10% - Lilac funds completion of testing of its technology for the Kachi Project ▪ F
Slide 13: Lilac Solutions – Lead Investors
Lilac Solutions – Lead Investors Successful Tech Investor Backing with EV supply chain participants – Recent US$150m investment For personal use only ASX: LKE OTC: LLKF SLIDE / 13
Slide 14: Kachi project. Large, scalable resource
Kachi project. Large, scalable resource For personal use only 25 years production uses 20% of resource. • Drilling to upgrade resource for expansion; resource open laterally and at depth • Kachi lease – 740 sq km (185,000 acres) • One of 10 largest brine resources globally – total JORC resource 4.4M
Slide 15: Kachi Project
FMC/Livent (80km to Nth) Orocobre - Galaxy POSCO Producing since 1997 (110km to Nth East) (120km to Nth East) Evaporation ponds 4.1 Mt LCE Resource 4.1 Mt LCE Resource 17,000tpa LCE Paid US$280m Lithium Carbonate Lithium Hydroxide For personal use only Kachi Project. Lease – 74,000ha Exploration Tar
Slide 16: Kachi project proposed plant design
Kachi project Proposed plant design For personal use only One building with Ion Exchange Modules Replaces 20-30km2 of Evaporation Ponds ~500m Warehouse, reagents Chlor Alkali Plant Bagging Plant and storage Impurity Removal Direct Extraction (Lilac IX Plant) and water treatment F E A D C G B Lithium
Slide 17: Expansion Study
Expansion Study* Clearer pathway (to Double Production to 51,000tpa) Simple production scale-up - Modular For personal use only 51,000tpa LCE Production Scale (PFS) (50+ Modules) Lilac Pilot / 25,500tpa Demo Plant (1-2 Modules) LCE ~10tpa LCE 1000 hours * Note: Expansion Study requires drilling (und
Slide 18: Market needs 10x to 18x more lithium production by 2030
Market needs 10x to 18x more lithium production by 2030. For personal use only Battery mega-factory growth 247 battery factories planned for 2030 151 operating by end 2021 247 • Lithium added to critical raw materials 240 list for the first time in 2020 210 180 • Lithium-ion batteries represent one
Slide 19: Project Finance – Robust Project Support
Project Finance – Robust Project Support For personal use only Robust Project – PFS Results - High cashflow, High margin Debt Finance – 70% Indicative – Long term, Low interest - Support from UK and Canada govt ECA’s Solid Equity Position – LKE cash position with Lilac commitment ASX: LKE OTC: LLKF
Slide 20: Kachi PFS metrics
Kachi PFS metrics Compelling economics For personal use only Pre-Feasibility Study results Mineral Resource* (Indicated) Annual production Li2CO3 Annual EBITDA Project life Expansion Study Underway 1.01Mt 25,500tpa US$260m 25+ years 51,000tpa# CAPEX Cash cost Annual operating costs Project Finance U
Slide 21: Direct extraction – Premium price, very high margin
Direct extraction Premium price – very high margin For personal use only Lake premium grade LCE price US$17,000 - 25,000/t Lake’s direct US$4,100/t extraction Opex Margin Brine - US$3,750 – Margin Battery grade LCE price evaporation 4,200/t US$13,000 – 20,000/t Technical grade LCE price US$8,000 - 1
Slide 22: Clearer pathway – high purity lithium tested in batteries
Clearer pathway Lake’s high purity lithium tested For personal use only and proven in batteries Lake Lithium Carbonate High Purity Lake’s lithium carbonate demonstrated in batteries • Lake's product - premium battery quality • Performs like Tier 1 products in NMC622 batteries • Only 50-60% of lithiu
Slide 23: Kachi Project Finance Support
Kachi Project Finance Support UK Export Finance & Canada EDC – Export Credit Agencies Support For personal use only Expression of Interest - Funding to ~70% of Total Required – including Expansion Project Finance CAPEX Debt Duration UK Export Finance provided ~70% debt## US$544m 10-11 years* Express
Slide 24: Corporate snapshot
Corporate snapshot Funded to FID For personal use only Share price Cash 30 June 2021 Half year share price chart A$0.90 US$0.70 A$46m ~A$63m 30 Oct’21 5 Nov 2021 (10 day VWAP) 52 week high $1.18c, low $0.05c US$35m Shares on issue Debt 1.2bn Zero Market capitalisation Unlisted Options A$1100m 26m 30
Slide 25: Timeline – to Production; Other Catalysts
Timeline – to Production; Other Catalysts For personal use only Timeline – FID mid next year Catalysts - Completion of studies; Offtake agreements - Other Projects ASX: LKE OTC: LLKF SLIDE / 25
Slide 26: Project Production Timeline
Project Production Timeline For personal use only 2021 – Q2, 2022 2021 – Q2, 2022 2021 – Q2, 2022 Q3,Q4 2022 DFS Demonstration Financing Construction / ESIA Plant Production Definitive Feasibility Q1,2022 Demo Plant Onsite Project Finance Mid-Late 2022 Approvals/ Study 2021-22 Samples in Batteries E
Slide 27: Clean Independent Producer Benefits
Clean Independent Producer Benefits Few Independent Producers For personal use only Unallocated Offtake in High Demand Lake to become an Independent Producer • Most producers tied to either China’s battery supply chain or tied to one offtaker potentially at long term lower pricing without flexibilit
Slide 28: Underinvestment in new supply. Price moving up.
Underinvestment in new supply. Price moving up. For personal use only Lithium battery demand 247 Megafactories operating at 100% capacity (4.5 TWh) • Lithium carbonate prices have tripled 3,000,000 over past year Lithium Battery Demand: 2030 Tonnes per annum • 8 to 18 times more lithium production 2
Slide 29: Cauchari project / Olaroz Project
Cauchari project / Olaroz Project Next lithium projects through development For personal use only Cauchari - Identical lithium brines as adjoining Ganfeng/ Lithium Americas development Lake’s brines being tested for direct lithium extraction Cauchari and Olaroz - Scoping study and resource drilling
Slide 30: Cauchari Project
Cauchari Project. For personal use only Next to world's largest lithium brine resource:- Plant under Construction 23.0 Mt LCE (Ganfeng LAC) * 6.3 Mt LCE (Orocobre). Ganfeng LAC -production 2022 at 40,000 tpa LCE, expanding to 60,000 tpa LCE Ganfeng paid US$397million for 50% 6.3 since Aug 2018 – 202
Slide 31: Olaroz Project
For personal use only Olaroz Project. 30km likely extension. Source: Jujuy Registro Grafico; Company disclosures SLIDE / 31
Slide 32: Leadership Board background in resources and Argentina
Leadership Board background in resources and Argentina. New COO. On site team being expanded for construction For personal use only Steve Promnitz Stu Crow Dr Nicholas Dr Robert Sra Amalia Gautam CEO & MANAGING CHAIRMAN Lindsay Trzebski Saenz Parimoo DIRECTOR NON-EXEC EXEC TECHNICAL NON-EXEC DIRECTO
Slide 33: Significant Upside
Significant Upside For personal use only Lithium Developer Peers Market Value vs Brine Resource • Lake Trading ~50% NPV8 (w/o expansion) Developers Lake Resources Brine Resource Mt LCE vs Peers 60-100+% NPV8 1800 Standard Lithium 1600 SLI:NYSE • Lake Market Value A$1100m Lake 14 1400 vs DLE Peers at
Slide 34: Cleaner Lithium for an Electric World
CLEANER LITHIUM FOR AN ELECTRIC WORLD For personal use only • World’s highest purity lithium • Technology-led direct extraction • Major ESG benefits • New independent clean producer – at scale Steve Promnitz - Managing Director steve@lakeresources.com.au +61 2 9188 7864 lakeresources.com.au ASX: LKE
Slide 35: Appendices
Appendices For personal use only ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 35
Slide 36: Mineral Resource (JORC Code 2012) – Kachi Project
Mineral Resource (JORC Code 2012) Kachi Project For personal use only Lithium carbonate equivalent (LCE) Indicated Inferred Total Resource Lake Lithium Carbonate High Purity 1.0Mt 3.4Mt 4.4Mt KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resour
Slide 37: JORC Code 2012 Appendix - Kachi Project
JORC Code 2012 Appendix 1 - Kachi Project For personal use only ASX: LKE OTC: LLKKF SLIDE / 37