Waratah Minerals Limited · ASX:WTM
Waratah Minerals — Battery Minerals — Investor Presentation (March 2017)
33 slides from Waratah Minerals's investor presentation, March 2017
Slide 1: Lithium Ion Battery anode PFS & Montepuez Graphite DFS
Lithium Ion Battery anode PFS & Montepuez Graphite DFS Integrated Purified Spherical Graphite (“PSG”) project demonstrates outstanding returns targeting renewable energy battery storage market MARCH 2017 Investor Presentation
Slide 2: Disclaimer & Competent Person Statement
Disclaimer & Competent Person Statement Statements and material contained in this Resource announcement exclusively for employee of RungePincockMinarco Presentation, particularly those regarding the Buffalo and Elephant deposits Limited (RPM) whom is the Competent possible or assumed future performa
Slide 3: Corporate Overview
Corporate Overview ASX: BAT Shares on Issue: 426M Market Cap: ~$40M (2) Cash in bank: $9.7M (1) Share Price: $0.093 (2) Trading Range (12 weeks): A$0.09- $0.14 Options on issue 50.8M unlisted (various terms) Major Shareholders Farjoy (12.6%), Mitchell Group (4.4%) and Contango (5.6%) Directors & Mgm
Slide 4: Corporate Snapshot
Corporate Snapshot Highly experienced Board David Flanagan Management Team Non Executive Chairman - BSc WASM with strong track record • 25 years resources industry experience in Australia, Africa and Asia • Experienced ASX Director ,Chairman and MD of ASX 100 company David Riekie • Proven capability
Slide 5: Montepuez Graphite Project - Rapid Progression
Rapid Progression 2014 2015 2016 2017 JUN M AR M AR FEB Montepuez Graphite High Grade Graphite Spherical Graphite Test Maiden Ore Reserve Project - Exploration Discovery at Mill Acquired in USA estimated at commenced Montepuez Project Montepuez Graphite JUL Project AU G OCT Results confirm scope to
Slide 6: Size of the prize +$60 billion world wide battery market
Size of the prize +$60 billion world wide battery market Lithium-ion battery (LiB) market expected to grow from US$10bil to +US$60Bil in the next 10 years LiB materials market is expected to make up +US$30bil of this number, up from US$1bil now Rapid growth in home storage, electric vehicle (lea
Slide 7: Proposed Mine Locations
Proposed Mine Locations • 2 graphite projects: Balama Central and Montepuez • Located in the Cabo Delgado province of Mozambique in East Africa • Significant graphite export operations/ capacity • Excellent logistics: only 260km to Pemba port via existing roads • Modern mining act and pro-mining gov
Slide 8: Montepuez Ore Reserves and Mineral Resources
Montepuez Ore Reserves and Mineral Resources Ore Reserve Estimate January 2017 for Buffalo and Elephant deposits is 41.4Mt @ 8.80% TGC for 3.64Mt of graphite reported at a cut-off grade of 4% TGC, supports 30 year mine life at 100,000tpa of high purity graphite concentrate. Total Mineral Resource Ja
Slide 9: Consolidated PSG PFS and Montepuez Graphite DFS
Consolidated purified spherical graphite (“PSG”) PFS and Montepuez Graphite DFS Consolidated Study Shows Very Strong Economic Outcomes from Integrated Operation Outstanding project economics - consolidated NPV10 of US$524 million and IRR of 36.2% Rapid payback period of 3 years Long mine life
Slide 10: Consolidated Key Study Findings
Consolidated Key Study Findings DFS on Montepuez PFS on PSG *** Graphite Project *** -20,000t of 99.99% PSG -100,000 tonnes of 96% Annual production -20,000t 96% recarburiser product purity graphite concentrate Life of Mine (LoM) / Life of *- Excludes National Ownership US$4,903 million US$2,156 mil
Slide 11: Mining to Processing to PSG
Mining to Processing to PSG DFS and PFS outcomes Output from mine Two products Two products generated from site (Mozambique) generated ex-mine downstream processing (USA) 60,000t Sold to flake DE FI NI TI VE F E AS I BI L ITY S TUDY (DF S ) market AS S UM E D ≈20,000t $7,500/T 99.99% TGC coated 100,
Slide 12: Process Flowsheet
Process Flowsheet Phase 1 – Mining & Export Phase 2 – SPG 12
Slide 13: Significant Value Enhancement Opportunities
Significant Value Enhancement Opportunities BAT management and advisors have already identified a range of value enhancement opportunities for DFS/ PFS • Number one sensitivity and value enhancing opportunity is the purification cost • Increasing the mine concentrate grade from 96% to 98% TGC reduce
Slide 14: Significant Upcoming Milestones to Drive Value
Significant Upcoming Milestones to Drive Value DFS on Balama Graphite Project Full Scale PSG Processing Plant Construction Undertaken Early 2018, Mine Construction Commences at Montpuez Project Long Lead Time Development Items Acquired for Montepuez Ministerial approval of mining leases Spherical Gr
Slide 15: Target offtake markets for graphite products
Target offtake markets for graphite products Asian and USA based offtake meetings confirm: • Markets seeking, “quality products at best/most competitive price point” • Product profiles need to match market needs (which remains dynamic) • Operations/methods must align with “green” graphite product
Slide 16: Market testing ongoing - Spherical Graphite Mill Pilot Plant in operation
Market testing ongoing - Spherical Graphite Mill Pilot Plant in operation - USA Spherical graphite is critical for production of anode ready material for LiB’s BAT is now capable of producing anode ready spherical graphite from its co-owned pilot plant facility located in the USA (refer to announc
Slide 17: Success with green energy purification delivers 99.99% TGC PSG
Success with green energy purification methods delivers 99.99%TGC Purified Spherical Graphite US pilot plant produces quality Spherical Graphite for purification Two different purification methods can successfully produce battery grade Purified Spherical Graphite (PSG) 99.99% TGC achieved via
Slide 18: Summary
Summary Already producing purified spherical graphite/anode material in USA Unique first mover advantage as the first ASX listed graphite play to release a PFS on the production of spherical graphite Strong Board and Management team Large, High Quality Resource Provides Operational Flexibili
Slide 19: Contact
Contact Cherie Leeden Managing Director Battery Minerals Limited E: cherie.leeden@batteryminerals.com www.batteryminerals.com 19
Slide 20: Appendices
Appendices Additional Information on market and PFS & DFS outcomes 20
Slide 21: Local initiatives
Appendix 1: Social+EHS Committed and making a continuing positive difference Local initiatives Opening and repair of water bores/wells Local school and education programs Repair of roads and schools Commitment to ongoing training of local labour and staff Government geologists training p
Slide 22: Size of the prize - $65 billion world wide battery market (2015)
Appendix 2: Size of the prize -$65 billion world wide battery market (2015) 22
Slide 23: The price disruption – natural graphite the commodity
Appendix 2: The price disruption – natural graphite the commodity 23
Slide 24: Pre-Feasibility Study on Lithium Ion Battery anode
Appendix 3: Pre-Feasibility Study (PFS) on Lithium Ion Battery anode endorses high value down-stream product PFS on PSG from Montepuez concentrate completed Total NPV enhanced by + US$377.1 million Annual production - 99.99% Spherical Graphite 20,000 tonnes Life of project gross revenue US$4,904 mil
Slide 25: Pre-Feasibility Study Pricing Assumptions
Appendix 3: Pre-Feasibility Study (PFS) Pricing Assumptions PFS on PSG from Montepuez concentrate Pricing assumptions PFS Revenue Morgan Stanley Avicenne Price Research Note (1) Energy (2) US$/t $/t $/t Coated Purified Spherical Graphite 7,500 9,319 10,000 – 15,000 •Morgan Stanley Research Note, Syr
Slide 26: Montepuez DFS confirms world leading Graphite Project
Appendix 4: Montepuez DFS confirms world leading Graphite Project Summary of Key Montepuez Graphite Project DFS outcomes LoM years (1) 30 Annual concentrate production tonnes 100,000t pa Total net revenue US$ 2,217 million Total EBITDA US$809 million Establishment capital cost estimate (pre-producti
Slide 27: Montepuez DFS Pricing Assumptions
Appendix 4: Montepuez DFS Pricing Assumptions Montepuez Graphite Project DFS pricing assumptions Flake Size Flake Size Average price Adjusted FOB Flake Size (mesh) (micron) USD$/t Pemba USD$/t Fine -100 +38 -106 628 539 Medium +100 +106 -180 902 813 Large +80 +180 -300 1065 976 Jumbo +50 +300 1529 1
Slide 28: Metallurgical Results - Exceptional and No Chemicals
Appendix 5: Metallurgical Results-Exceptional and No Chemicals • Flotation test work achieved 99.2% TGC purity without the use of any chemicals or thermal treatment • High graphite recovery achieved with coarse primary grind size • Beneficial flotation parameters create scope to reduce plant capital
Slide 29: Project Delivery Schedule
Appendix 6: Project Delivery Schedule DFS and PFS Project Implementation - Project Delivery Schedule 2017 2018 2019 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Montepuez Graphite Mine Definitive Feasibility Study Project Approvals Commencement Design Procurement Construction Commissioning Ramp Up P
Slide 30: Capital Cost Estimate Breakdown
Appendix 7: Capital Cost Estimate Breakdown Flake Graphite Concentrate Mine Facility Spherical Graphite Facility Establishment Capital - Summary (Montepuez, Mozambique) Capital Cost Summary (USA) Total USD Area Total USD % Spherical Graphite Process Plant $17,553,195 Mining $6,263,014 5.0% On-site i
Slide 31: Operating Cost Estimate Breakdown
Appendix 8: Operating Cost Estimate Breakdown Flake Graphite Operating Cost Summary (OPEX) COST Spherical Graphite US$/t product Operating Cost Summary (OPEX) Labour 50.53 COST Power 57.05 CATEGORY US$/t product Reagents & consumables 58.55 Purchase price 1078.00 Maintenance materials 13.67 Labour 1
Slide 32: Mining to Processing to PSG – smaller output, lower capex model
Appendix 9: Mining to Processing to PSG – Opportunity to investigate smaller output, lower capex model Output from mine Two products Two products generated site (Mozambique) generated ex-mine from downstream processing 10,000t Sold to flake Circa 50,000t market Lesser initial production to AS S UM E
Slide 33: Flake to SPG
Appendix 11: Flake to SPG Graphite Flake Very large Graphite SPG Product Coated SPG 10 to 15% TGC Flake 98/99% TGC 99.99% TGC 10 to 15% TGC 99.99%Lithium Ion Batteries - Powerpacks for • Home Storage, • Cars, and • Grid Storage Renewable Energy
Battery Minerals — Investor Presentation (March 2017) on 6ix