Nemaska Lithium — Investor Presentation (June 2014)
23 slides from Nemaska Lithium's investor presentation, June 2014
Slide 1: Nemaska Lithium Corporate Presentation
Nemaska Lithium Corporate Presentation June 2014 Guy Bourassa President and CEO
Slide 2: Forward-looking Statements
Forward-looking Statements During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to the Company’s projects, business strategy and plan, which could be construed as forward-looking. Such forward-looking statements are subject to risks and uncertaint
Slide 3: Introducing the Best Lithium Hard Rock Project Globally
Introducing the Best Lithium Hard Rock Project Globally 6/9/2014 3
Slide 4: Nemaska Lithium Overview
Nemaska Lithium Overview • Advanced lithium development company with high-grade mining assets and patent pending processes to produce high purity lithium hydroxide and lithium carbonate using electrolysis. • Key asset: Whabouchi – a world class lithium deposit – North America’s richest hard rock lit
Slide 5: Nemaska Lithium Achieving Milestones
Nemaska Lithium Achieving Milestones Defines a World Class Deposit First NI 43-101 Compliant Resource Calculation in 2010, updated in 2011, updated in 2012 and 2014 Produces High Quality Product From Metallurgical Pilot Tests Produces 6% spodumene concentrate from Whabouchi in 2010 Produce
Slide 6: Nemaska Lithium Upcoming Milestones
Nemaska Lithium Upcoming Milestones • Achieve Market Penetration – Shorten time to market with product by building a Phase 1 Plant to produce lithium hydroxide samples – Engage customers with product in advance of building the mine and commercial hydromet plant – Customer evaluation can take up to 1
Slide 7: Location Location Location!!!!!
Location Location Location!!!!! • Top ranked mining jurisdiction – Safe, Secure Location – Supportive Government that funds the exploration to development • Established infrastructure in place at mine site: – Affordable and available power – Knowledgeable workforce – Established lodging • Mine and c
Slide 8: Excellent Infrastructure at Mine Site
Excellent Infrastructure at Mine Site 8
Slide 9: 2.2 to 1 Strip Ratio - Minimal Environmental Impact
2.2 to 1 Strip Ratio - Minimal Environmental Impact Electricity Line 6/9/2014 9
Slide 10: Grade is KING!!! – Low Mica, Sodium, Potassium
Grade is KING!!! – Low Mica, Sodium, Potassium Reserves Resources Category Tonnage (Mt)* Li2O (%) Category Tonnage (Mt)* Li2O (%) Open pit Proven 11.7 1.58 Measured 12.998 1.60 Probable 8.3 1.46 Indicated 14.993 1.54 Proven and probable 20.0 1.53 M+I 27.991 1.57 Underground Inferred 4.686 1.51 Prove
Slide 11: Lowest Cost Spodumene Concentrate - $189/t
Lowest Cost Spodumene Concentrate - $189/t • Optimal open Pit Design • Underground Mine expansion potential • 26 Year initial Mine Life • Competitive with all other spodumene producers 2014-06-09 11
Slide 12: Valleyfield Strategic Location
Valleyfield Strategic Location • The hydromet plant located in Salaberry-de-Valleyfield, QC Perron Industrial and Port Park • Site selected for its excellent infrastructure: – serviced by two railway systems for both Canada and the USA – access to major sea port – pool of skilled workers from the Mo
Slide 13: Receive and Ship to Anywhere in the World
Receive and Ship to Anywhere in the World 13
Slide 14: Low Costs, Highest Quality
Low Costs, Highest Quality C$3,450/t Remove Remove Remove impurities Lithium Fe, Al, Si, to ppb Hydroxide Ca, Mg Cu levels Monohydrate Lithium Primary Secondary Lithium Ion Membrane Sulfate Impurity Impurity Hydroxide Exchange Electrolysis Solution Removal Removal Solution C$4,190/t Lithium Carbonat
Slide 15: Feasibility Study Highlights
Feasibility Study Highlights Expected Mine Life 26 years Life of Mine Revenue $6.9 Billion (average of $267M/yr for 26 yr) Pre-Tax Cash Flow $3.4 Billion net of CAPEX (average of $151M/yr before initial CAPEX) Pre-Tax NPV 8% Discount (base case) $924 Million Pre-Tax Internal Rate of Return (IRR) 25.
Slide 16: Growing Demand for Lithium Hydroxide
Growing Demand for Lithium Hydroxide “Lithium Hydroxide’s importance is going to be bigger in the future for its use as active cathode material in batteries for high power applications. That means that the lithium hydroxide market is going to be much important than lithium carbonate, since its capac
Slide 17: Lithium Consumption by Application
Lithium Consumption by Application x3 x2 x 60 x7 x 15 Secondary = rechargeable; Primary = non rechargeable 17
Slide 18: Next Steps – Phase 1 Plant
Next Steps – Phase 1 Plant • Phase 1 plant (500 t/y lithium hydroxide and lithium carbonate) is designed be a module of the larger commercial hydromet plant – Off-take agreement with Clariant Canada Inc. for the sale of lithium hydroxide, including collaboration for regeneration of lithium sulfate r
Slide 19: Current Capital Structure (June 1st, 2014)
Current Capital Structure (June 1st, 2014) Shares outstanding 166,733,574 Warrants and Options Options (average price $0.36) 6,452,075 Warrants (average price $0.27) 33,409,390 Fully Diluted 206,595,039 Distribution of outstanding Shares Management 2% Tianqi 12% Institutional 28% Retail 58% 19
Slide 20: Management and Board of Directors
Management and Board of Directors Guy Bourassa, President and CEO Mr. Bourassa is President and CEO since Nemaska’s inception in 2008. He brings more than 30 years of experience in the mining industry to this role. Among other things he was instrumental in identifying and negotiating the acquisition
Slide 21: Management and Board of Directors
Management and Board of Directors Paul-Henri Couture, Director Mr. Paul-Henri Couture has over 35 years of experience as a financial management and investment professional. He has held senior positions at the Caisse de dépôt and placement du Québec and at Sentient Asset Management Canada. During his
Slide 22: Conclusion – Why Nemaska
Conclusion – Why Nemaska Emerging leader in growing high value market segment - lithium hydroxide North America’s richest deposit, 2nd richest and largest in the world State of the art processes of producing lithium hydroxide and lithium carbonate - leading advantage over peers Production co
Slide 23: Thank you!
Thank you! Guy Bourassa, President and CEO guy.bourassa@nemaskalithium.com www.nemaskalithium.com TSX-V NMX