Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (March 2021)
40 slides from Ioneer's investor presentation, Mar 4, 2021
Slide 1: Equity Raising Presentation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only March, 2021 PRESENTATION EQUITY RAISING www.ioneer.com 1
Slide 2: Important Notice and Competent Persons Statement
For personal use only IMPORTANT: You must read the following before continuing. Competent Persons Statement This presentation has been prepared by ioneer Ltd (ABN 76 098 564 606) (and / or its subsidiaries, In respect of Mineral Resources and Ore Reserves referred to in this presentation and previou
Slide 3: Non-IFRS measures and forward-looking statements
For personal use only Such information and financial measures (including EBITDA) do not have a standardised meaning dependence on commodity prices, availability of funding, impact of inflation on costs, exploration prescribed by Australian Accounting Standards (“AAS”) or International Financial Repo
Slide 4: Reliance on third party information; Joint Lead Managers
For personal use only Reliance on third party information Joint Lead Managers and advisors The views expressed in this presentation contain information that has been derived from publicly None of the Joint Lead Managers, nor any of their or the Company’s respective advisers or any of NOT FOR DISTRIB
Slide 5: Swap Agreements
For personal use only Swap Agreements In connection with the Placement, one or more investors may elect to acquire an economic NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES interest in the New Shares (“Economic Interest”), instead of subscribing for or acquiring the legal or beneficial intere
Slide 6: Equity Raising Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only EQUITY RAISING SUMMARY www.ioneer.com 6
Slide 7: Offer Structure and Size
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES • Fully underwritten institutional placement (“Equity Raising” or “Placement”) to professional and sophisticated investors to raise A$60.0 million (the “Offer”) Offer Structure • The Placement of approximately 158 million ord
Slide 8: Equity Raising will assist in accelerating construction of Rhyolite Ridge
For personal use only Equity Raising will assist in accelerating construction of Rhyolite Ridge NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising will: Sources of Funds Uses of Funds Advance detailed engineering Proceeds from Capital Raising A$60.0m (~60%) and vendor engineering to
Slide 9: Indicative timetable
For personal use only Event Date (2021) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ioneer enters trading halt Wednesday 3 March Announcement of Placement Thursday 4 March Placement bookbuild Thursday 4 March Announcement of the outcome of Placement 10:00am, Friday 5 March Trading halt lift
Slide 10: Rhyolite Ridge Project Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only RHYOLITE RIDGE PROJECT OVERVIEW www.ioneer.com 10
Slide 11: Developing Highly Strategic U.S. Lithium Project
For personal use only Developing Highly Strategic U.S. Lithium Project NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES World Class Committed to Right Location Asset Sustainability • Strong project economics • Expected to be one of the first • Poised to become a major resilient across a wide ran
Slide 12: DFS project economics
For personal use only Annual Lithium NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES After-tax NPV Unlevered After Hydroxide: (8% real): Tax IRR 22,000 ~US$1.3B ~21% Tonnes Years 4-26 Annual Boric Annual Revenue Annual EBITDA Acid: US$422M US$288M 174,400 (Split ~70% Li & 30% B) Tonnes Years 1-
Slide 13: 2020 LCE all-in sustaining cash cost curve
For personal use only 2020 LCE All-in sustaining cash cost curve (US$/metric tonne) global producers NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES $10,000 ioneer Brine Mineral $9,000 $8,000 $7,000 $6,000 US$ LCE $5,000 $4,000 $3,000 $2,000 $1,000 $0 0 100 200 300 400 1,000 Metric Tonnes Note:
Slide 14: Boric acid credit offsets lithium cost
For personal use only Assuming US$11,000/tonne Lithium Carbonate and US$710/tonne Boric Acid NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES $18,000 $16,000 $14,000 Margin: $12,000 Lithium Revenue: US$8,490 US$11,000 $10,000 $8,000 All-in sustaining cash cost: US$2,510 $6,000 $4,000 Boric Acid
Slide 15: Targeting first lithium offtake agreement in 1H 2021
For personal use only Targeting first lithium offtake agreement in 1H 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Lithium Offtake Strategy Status Update ioneer is targeting the following: • Continuing to advance discussions with several • Diversified cathode battery manufacturers and T
Slide 16: Production vs offtake; Asian distributor territories
For personal use only PRODUCTION VS OFFTAKE ASIAN DISTRIBUTOR TERRITORIES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Binding Offtake Non-binding Offtake Remaining Offtake 250 200 Boric Acid '000 Mt 150 100 50 0 1 2 3 4 5 6 7 8 9 10 Production Year Boric Acid Sales: • Five-year Binding Bori
Slide 17: Large mineral resource and ore reserve
For personal use only Large Mineral Large Ore NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Resource Reserve Sedimentary Basin 146.5M 60.0M Process Plant OPEN Tonnes Tonnes Total Ore Resource Area Long Life Mined Overburden of Mine Storage 63.8M Over 26 Years OPEN Tonnes Spent Ore Storage Qua
Slide 18: On track to be construction ready by Q4 2021
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ON TRACK TO BE CONSTRUCTION READY BY Q4 2021 ~50% ENGINEERING COMPLETED FOLLOWING RELEASE OF DFS IN EARLY 2020 FULL SIMULATION PILOT PLANT THROUGH TO Li CARBONATE AND HYDROXIDE ENVIRONMENTAL BASELINE STUDIES COMPLETED AND ACC
Slide 19: Lithium demand anticipated by 2030
For personal use only >300ktpa of Lithium demand anticipated by 2030 – to supply the world’s 2nd largest car fleet NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES U.S. Demand: • Eight U.S. megafactories in the pipeline to 2024, three are already operational • Benchmark Minerals estimates that t
Slide 20: Commitment to sustainability
For personal use only Majority of on-site power will be met with CO2-free energy Low emissions production, low greenhouse gas emissions. Mobile NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES equipment meets Tier 4 EPA standards. Project design implements best-in-class water utilization Low wat
Slide 21: Project funding through strategic partnering, debt and equity
For personal use only Project funding through a combination of strategic partnering, debt and equity US$’m NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Mine $13.6m Project Financing Update Equity • Strategic partnership is central to the funding solution and currently in advanced discussions
Slide 22: 2021 development timeline
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Q1 21 Q2 21 Q3 21 Q4 21 Q4 23 • Expected Permit • Major contracts in • Major contracts in • Anticipated Record • Mechanical Issuances: negotiation negotiation of Decision (ROD) completion o Water Pollution • Register of Notic
Slide 23: Project contractors and technology partners
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES EPCM Evaporation and Crystallization Acid Plant Material Handling Haulage System Automation Solutions Controls Mining Pilot Plant Spent Ore Environmental Leaching www.ioneer.com 23
Slide 24: Board of Directors and Management Team
For personal use only Board of Directors Management Team NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES JAMES D. CALAWAY ALAN DAVIES Executive Chairman Non-executive Director BERNARD ROWE FORMER: FORMER: Managing Director Non-exec chairman of Chief Executive, Energy & Orocobre Ltd Minerals of
Slide 25: Contacts
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Bernard Rowe Jane Munday / Megan Moore Grace Altman ioneer Ltd FTI Consulting FTI Consulting Managing Director Investor & Media Relations Investor & Media Relations (Australia) (U.S.) T: +61 419 447 280 T: +61 488 400 248 / T
Slide 26: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only KEY RISKS www.ioneer.com 26
Slide 27: Key risks: future milestones
For personal use only There are a number of factors, specific to the Company and of a general nature, which may affect Future milestones the future operating and financial performance of the Company and the industry in which it operates. As the Company progresses the development of its Rhyolite Ridg
Slide 28: Key risks: counterparty and reserves estimates
For personal use only The Company is also exposed to counterparty risk in respect of its customers or suppliers failing to The determination of Ore Reserves includes estimates and assumptions about a range of fulfil their contractual obligations. This risk may be heightened as a result of COVID-19 a
Slide 29: Key risks: opposition and operational risks
For personal use only Routine anti-development opposition to the Rhyolite Ridge Project has surfaced, as the Center for Depending on the outcome of the NSF and FWS reviews and the 2020 Complaint, or if similar Biological Diversity (“CBD”) filed a Complaint for Declaratory and Injunctive Relief (“Com
Slide 30: Key risks: tax, customs and product markets
For personal use only Tax and customs risk advancements in technologies and the uses and potential uses of lithium carbonate and boric acid, and the demand for the applications for which lithium carbonate and boric acid may be The Company is subject to taxation and other imposts in Australia and the
Slide 31: Competition; dependence on key management
For personal use only Competition Dependence on key management personnel The Company competes with other companies, including major mineral exploration and The Company is dependent upon a number of key management personnel. The loss of the NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES product
Slide 32: Insurance; global economic conditions
For personal use only Insurance and uninsured risks Global economic conditions Although the Company maintains insurance to protect against certain risks in such amounts as it Economic conditions, both domestic and global, may affect the performance of the Company. NOT FOR DISTRIBUTION OR RELEASE IN
Slide 33: Interest rate risk; accounting standards
For personal use only Interest rate risk The effect of these risks is difficult to predict and any combination of one or other of the above may have a material adverse effect on the Company. The Company has a limited ability to insure The Company’s exposure to interest rate risk, which is the risk t
Slide 34: Selling Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only SELLING RESTRICTIONS www.ioneer.com 34
Slide 35: Selling restrictions: Canada
For personal use only This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except t
Slide 36: Selling restrictions: Hong Kong
For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong), nor has it NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES been authorised
Slide 37: Selling restrictions: Switzerland
For personal use only Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES nor any
Slide 38: Summary of Underwriting Termination Events
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only EVENTS SUMMARY OF UNDERWRITING TERMINATION www.ioneer.com 38
Slide 39: Underwriting termination events
For personal use only ioneer has entered into an agreement with the Joint Lead Managers, under which the Joint Lead • any of the following events occur: Managers will fully underwrite the Placement. If certain conditions are not satisfied or certain customary termination events occur, the Joint Lead
Slide 40: Thank You
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES THANK YOU. Providing the materials for a sustainable & thriving planet. For more information please contact: info@ioneer.com www.ioneer.com