Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (January 2023)
38 slides from Ioneer's investor presentation, Jan 11, 2023
Slide 1: Investor Presentation
Investor Presentation 11 January 2023 Providing Material for a Sustainable & Thriving Planet
Slide 2: Disclaimer
Disclaimer This presentation has been prepared as a summary only and does not contain all information about ioneer Ltds Competent Persons Statement (ioneer or the Company) assets and liabilities, financial position and performance, profits and losses, prospects, In respect of Mineral Resources and O
Slide 3: Content
Content Engineering rendering of the Rhyolite Ridge Processing Plant 1 IONEER OVERVIEW 2 LITHIUM & BORON MARKETS 3 RHYOLITE RIDGE PROJECT 4 MOVING FORWARD ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 3
Slide 4: Ioneer Overview
1 Ioneer Overview ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 4
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure ASX Share Price (As at January 2023) SHARES OUTSTANDING 2.10B 6 January 2022 - 6 January 2023 $0.900 $0.800 PERFORMANCE RIGHTS AND OPTIONS OUTSTANDING 34.0M $0.700 $0.600 CASH BALANCE US$77.0M $0.500 $0.400 SHARE PRICE ASX A$0.410 $0.300 $0.200 $0.100 ADR PRICE N
Slide 6: Proven, Experienced Team
Proven, Experienced Team Board of Directors Management Team JAMES D. CALAWAY ALAN DAVIES JAMES D.BOTTOM OF THE BERNARD ROWE Executive Chairman Non-executive Director CALAWAYLITHIUM COST CURVE Managing Director FORMER: FORMER: Non-exec chairman of Chief Executive, Energy & FOR END PRODUCTS Executive
Slide 7: Best in Class Partners
Best in Class Partners We have invested >US$115m BOTTOM OF THEto date appraising & developing the CURVE Project EPCM Evaporation and LITHIUM COST Crystallization Acid Plant FOR END PRODUCTS PRODUCED AT SITE Material Haulage We have sought best in class advisors Handling System Power and Fluor led th
Slide 8: Lithium & Boron Markets
2 Lithium & Boron Markets ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 8
Slide 9: Global Lithium Market Trends
Global Lithium Market Trends Demand growth coupled with supply shortages driving higher prices Lithium Demand Driven by Growth in EVs Underinvestment in Lithium Supply Increasing Demand Short Supply Global lithium demand (LCE kt) Widening deficit in lithium market Source: Company data, Benchmark Min
Slide 10: Forecast U.S. Lithium Market
Forecast U.S. Lithium Market Rhyolite Ridge is ideally positioned to serve the U.S. EV market +1 OTHER PLANT With location TBC Gigafactory capacity (demand) Forecast GWh No. Demand Gigafactories Est. LCE ktpa 2021 Actual 56 4 IM3 LGES 2026 F/C 588 26 504 2031 F/C 965 26 827 Panasonic/Tesla LGES/GM S
Slide 11: Changing Political Narrative
Changing Political Narrative “The Future of Vehicles is Electric”: President Biden Touts EVs in remarks on Infrastructure (Forbes breaking News 22/10/2022) https://www.youtube.co/watch?v=Rdz2K1HHUc A key area of focus of the DOE Loan Program Office is to “increase the availability of the critical mi
Slide 12: Boron – A Climate Transition Super Material
Boron – A Climate Transition Super Material1 The 5th Element of Decarbonisation1 Estimated Growth in Annual Boron Demand • Boron has exposure to several key climate technologies – HEV and EVs – Insulation Materials that reduce energy use – Agriculture as a micronutrient supporting sustainable farmin
Slide 13: Boron Market
Boron Market Global Borates Demand by End Use The Boric Acid Market Other • Uses: Broad range of essential uses • Demand: Borosilicate LCD / Glass TFT – Increasing demand from agriculture, solar, specialty glass 8% and permanent magnets for EVs 19% 5% – U.S. worlds 2nd largest boric acid market (23%
Slide 14: Rhyolite Ridge Project
3 Rhyolite Ridge Project ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 14
Slide 15: Rhyolite Ridge Lithium-Boron Project
Rhyolite Ridge Lithium-Boron Project INR Highlights • Most advanced Li Project in the Fact Sheet1 US Location Nevada, USA • World-Scale Resource Project Stage Bankable Feasibility Study (April, 2020) • Unique lithium-boron deposit Products Li2CO3, LiOH, B • 26+ year mine life with significant Resour
Slide 16: Rhyolite Ridge Location
Rhyolite Ridge Location Location • Esmeralda County, NV • 25km west of Albemarle’s Silver Peak lithium mine • Tier-one mining jurisdiction • On federal land with no competing land use • Proximal to U.S. auto industry allowing shorter logistics supply chain • Close to San Francisco and LA Ports • One
Slide 17: Most Advanced Lithium Project in the US
Most Advanced Lithium Project in the US PERMITTING: Two of three key permits awarded PERMITTING: Began final stage of federal permitting process (NEPA) in December 2022 upon publication of Notice of Intent regarding the Mine Plan of Operations submitted to the BLM BINDING OFFTAKE AGREEMENTS: Complet
Slide 18: Commitment to Sustainability
Commitment to Sustainability Position close to end markets creates an ESG benefit due to shorter supply chains • Majority of on-site power will be met with CO2-free Low Emissions energy production, low greenhouse gas emissions. • Mobile equipment meets Tier 4 EPA standards • Project design implement
Slide 19: Community Relations
Community Relations At ioneer we are committed to: Making a positive impact on the global environment and that starts with the support of the local community and tribal nations Responsible development that is protective of the environment and respectful of the views of all community stakeholders Ong
Slide 20: Moving Forward
4 Moving Forward ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 20
Slide 21: Our Primary Goals to Reach a Final Investment Decision
Our 4 Primary Goals to Reach a Final Investment Decision BOTTOM OF THE 1 2 3 LITHIUM4COST CURVE To sign FOR END PRODUCTS binding To be To be PRODUCED AT SITE To be fully construction offtakes fully funded ready in permitted that support engineering debt The white hill at Rhyolite Ridge, showing the
Slide 22: Lithium Offtake
Lithium Offtake Lithium Offtake Status Lithium Offtake Strategy • Offtakes signed with Ford, PPES (Toyota & 2,600 tpa Panasonic JV) and EcoPro Tech Grade ~20,600 tpa Ford • Focused on U.S. EV Supply chain LiCO 7,000 tpa • Support funding – Minimum volumes PPES 4,000 tpa – 3 to 5 year tenor – Index b
Slide 23: Boron Offtake
Boron Offtake Target of 80% production under offtake achieved Boric Acid Offtake PRODUCTION VS OFFTAKE • Boric acid sales & distribution network Binding Offtake Non-binding Offtake Remaining Offtake substantially complete 180 • Boric acid sales help underpin potential 160 debt 140 120 • Sold all of
Slide 24: Project Funding
Project Funding Funding Strategy • Existing Cash: funds Capex spend to FID US$’M • Equity funding: Sibanye-Stillwater directly funding US$490m of the capex for 50% equity of Rhyolite Ridge Project • Debt funding: Debt o The JV is aiming to jointly secure full debt financing for the Project from eith
Slide 25: Detailed Engineering
Detailed Engineering Engineering Status • Majority of key contracts awarded • >60% detailed engineering complete • Continuing engineering effort is focused on further decreasing execution risk through: – Releasing further engineering and vendor packages/contracts for bid/award – Preparing an updated
Slide 26: Rhyolite Ridge Process Plant
Rhyolite Ridge Process Plant Sulphuric Evaporation/ Acid Plant Crystallization Vat Leach Plant Sulphur Supply Ore Handling/ Sizing and Storage Lithium Carbonate Circuit Power Plant Plant Utilities Boric Acid Circuit Reagents ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR
Slide 27: Permitting & Environmental
Permitting & Environmental Permitting Overview - Status of Key Permits Permitting Process Permit Agency Status Class II Air Quality Permit Nevada Division of Issued in June 2021 Environmental Protection Water Pollution Control Nevada Division of Issued in July 2021 Permit Environmental Protectio
Slide 28: Key Milestones
Key Milestones Milestone Estimated Timing1 US Listing on Nasdaq Completed Lithium offtake agreements Completed Resubmission of the Mine Plan of Completed Operations NOI Publication Completed Conclusion of Stage 3 of DOE Loan 1Q 2023 Application Process (Due Diligence Stage and Term Sheet Negotiation
Slide 29: Why Ioneer
Why Ioneer THE RIGHT COMMODITIES Lithium carbonate and boric acid THE RIGHT LOCATION Positioned to serve the U.S. EV battery supply chain AN EXPERIENCED TEAM With a proven track record NEAR TERM NEWSFLOW Debt, Permitting CLEAR PATH TO PRODUCTION Plug in to the Future ioneer Investor ioneer Investor
Slide 30: Contact Information
Contact Information www.ioneer.com ir@ioneer.com ioneer Investor ioneer Investor Presentation Presentation : IONR ASX : INR www.ioneer.com www.ioneer.com 30
Slide 31: Appendix
Appendix Providing Material for a Sustainable & Thriving Planet
Slide 32: Resources & Reserves
Resources & Reserves Metric Li B Equivalent Equivalent Equivalent Equivalent Tonnes Grade Grade Grade Grade contained contained (Mt) (ppm) (ppm) Li2Co3 H3BO3 Tonnes Tonnes (%) (%) Li2Co3 H3BO3 BOTTOM (kt) OF THE (kt) Mineral Resources LITHIUM COST CURVE Measured Resource 39.0 1,700 14,550 0.9 8.3 FO
Slide 33: History of Ioneer's Ownership of Rhyolite & Development Schedule
History of Ioneer’s Ownership of Rhyolite & Development Schedule Timing of permitting key driver to development time line 2016 2017 2018 2019 2020 2021 2022 2023 2024 Acquired initial First production of Reserves & Production of Conclude Stage Anticipated interest in Project Boric Acid R
Slide 34: Tiehm's Buckwheat
Tiehm’s Buckwheat Endangered Species Act (ESA) Considerations The protection and conservation of Tiehm’s buckwheat is and always has been a central part of Ioneer’s environmental planning and approvals process for the Project. Ioneer has long anticipated the listing of Tiehm’s buckwheat under the ES
Slide 35: US Listing on Nasdaq
US Listing on Nasdaq US Listing Strategy • INR believes: – Rhyolite Ridge is a strategic asset for US lithium supply security – US investors have demonstrated an increasing interest in “electrification" – Provides opportunity for wider participation in Ioneer share ownership from North American inve
Slide 36: Comparison of Li-B (Searlesite) Core and Li-only (Clay) Core
Comparison of Li-B (Searlesite) Core and Li-only (Clay) Core Li-B (Searlesite) Resource* Li-only (clay) 170M tons at: 1,650ppm Li, 14,100 ppm B Including 90M tons at: 1,850ppm Li, 17,050 ppm B BLM submitted mine plan of BLM submitted mine plan of operations contemplates mine operations contemplates
Slide 37: Li-B (Searlesite) Before and After Acid Leaching
Li-B (Searlesite) Before and After Acid Leaching Before Leach After Leach Li-B (Searlesite) mineralisation before acid leach Li-B (Searlesite) mineralisation after acid leach Searlesite ore easy and less expensive to wash, de-water and dispose of leach residue ioneer Investor ioneer Investor Present
Slide 38: Li-only (Clay) Mineralisation Before and After Acid Leaching
Li-only (Clay) Mineralisation Before and After Acid Leaching Before Leach After Leach Li-only (Clay) mineralisation before acid leach Li-only (Clay) mineralisation after acid leach Clay ore is difficult and more expensive to wash, de-water and dispose of leach residue ioneer Investor ioneer Investor