Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Earnings Presentation (December 2023)
25 slides from Lake Resources N.l's earnings presentation, Dec 19, 2023
Slide 1: Kachi Phase One DFS Results Investor Presentation
Kachi Phase One DFS Results Investor Presentation December 19, 2023
Slide 2: Disclaimer
Disclaimer General Statement and Cautionary Statement This presentation has been prepared by Lake Resources N.L. (Lake) for information purposes and not any particular party. The information in this presentation is based upon public information and internally developed data and reflects prevailing c
Slide 3: Kachi Phase One DFS Highlights
Kachi Phase One DFS Highlights • Post-tax NPV of $2.3 billion and IRR of 21% Investment Highlights • Annual average EBITDA of $635 million ($ USD) • $1.38 billion of Capex1 • $6.05 / kg LCE of Opex • Total resource estimated at more than 10.6 Mt LCE, a globally significant resource2 • Defined and de
Slide 4: Execution of Phase One DFS
Execution of Phase One DFS Announcement of de-risked project plan Construction of plants with total target capacity of 50,000 tpa achieved in 2x25,000 tpa phases2 Further drilling revealed higher lithium grades and Kachi Phase One DFS completed12; - Each phase made of two trains 12,500 tpa large v
Slide 5: Lithium Market Balance
Lithium Market Balance While the lithium market as a whole may not reach sustained deficit until 2031, the battery grade market is anticipated to be significantly tighter Deficits could emerge in the near term, and extend to ~1Mt LCE by 2040, with Kachi’s anticipated ~25Ktpa of Phase One battery g
Slide 6: Lithium Price Forecast
Lithium Price Forecast Wood Mackenzie Battery Grade Lithium Carbonate Price ($USD/tonne) Wood Mackenzie Annual Price Forecast for Battery Grade Lithium Carbonate Near Term Average Price Forecast Period Average Price $40,000 $35,000 $31,253 $30,000 $25,000 $20,427 $20,000 $15,000 $10,000 $5,000 $0 20
Slide 7: Commitments from Operational Update
Commitments from Operational Update Reservoir Completion of Phase One DFS Field Test Work (end of pumping) Completed Groundwater Model Lithium Carbonate Demo Plant Completion of demo plant test work Power Power solution defined Engaged Goldman Sachs as Financial Adviser to Kachi Project; F
Slide 8: Comparison: Phase One DFS vs. Operational Update
Comparison: Phase One DFS vs. Operational Update Kachi Phase One DFS confirms expectations from June 2023 Operational Update Phase One DFS vs. June Op Update ($USD) Sensitivity Check Phase One DFS vs. June Op Update ($USD) $7.10/kg $1.50B $2.1 B $2.0 B DFS Phase One Economic $1.38B Model sensitivity
Slide 9: Strong Community and Government Engagement
Strong Community and Government Engagement Looking forward to building relationship with recently elected Federal government. Continued strong relationship with Catamarca government. Monthly meetings with local government and community to provide status updates of Kachi Project. Emphasis on
Slide 10: Kachi Project Phase One DFS Highlights
Kachi Project Phase One DFS Highlights 10
Slide 11: >10.6 million tonnes LCE Mineral Resource
>10.6 million tonnes LCE Mineral Resource Kachi M&I resource Resource expansion from June 2023 update1: estimate increased ■ Measured resource has 250% since June 2023 increased from 2.2 to 3.0 million tonnes LCE 10.6 ■ Indicated resource has 8.1 increased from 0.72 to 4.3 million tonnes LCE 3.3 ■ I
Slide 12: Maiden Ore Reserve Statement
Maiden Ore Reserve Statement Reserve Years Lithium LCE Average Category (Tonnes) (Tonnes) Lithium (mg/l) Proved 1 3,600 18,900 259 Proved 2-7 28,500 151,400 257 Probable 8-25 85,400 454,100 245 Total 1-25 117,400 624,400 ■ Globally Significant Resource: The mine plan produces 806k tonnes LCE (allowi
Slide 13: Demo Scope – Ready for Deployment
Phase One DFS Demo Scope – Ready for Deployment DLE – Lilac Solutions Ion Exchange • On-site demo plant operated in campaigns from October 2022 to November 2023 o Over 5.2 million litres of Kachi brine successfully processed o During continuous operations >90% uptime o 200,000 litres of lithium chlo
Slide 14: Demo Scope – Battery Grade by Design
Phase One DFS Demo Scope – Battery Grade by Design Balance of Plant – Saltworks Technologies • 120,000 litres processed in 3 batches in Canada o All batches achieved battery grade lithium purity target (>99.5%) o Up to 99.9% purity achieved o Independent validation of results o Data produced to supp
Slide 15: Scope of the Phase One DFS Work Completed
Scope of the Phase One DFS Work Completed Basis of Design o Conservative assumptions (205 mg/L vs. 245 mg/L minimum average) Heat & Material Balance (HMB) o Confirmed >75% lithium recovery Process flowsheet Process plant 3-D model Wellfield layout and well design Numerical reservoir mode
Slide 16: Exceptional Financial Results
Exceptional Financial Results Targeted project financial results1 ($USD) ($USD) Units Period DFS Result Phase One DFS Financial Outputs Lithium Carbonate Revenue $M Life of Mine 20,700 Phase One – 25 ktpa LCE Lithium Carbonate Revenue $M Annual Average 827 Production Target2 EBITDA2 $M Life of Mine
Slide 17: Sensitivity Analysis
Sensitivity Analysis The Kachi Project is resilient to Opex and Capex factors Post-Tax NPV8 Sensitivities Chart (-15% / +15%; Base $2,333M) Post-Tax IRR Sensitivities Chart (-15% / +15%; Base 20.9%) ($USD) ($USD) Lithium Price Lithium Price 28.0% 27.8% 14.4% 12.8% ($28.1k - $33.0k - $38.0k) ($28.1k
Slide 18: Kachi Development Timeline
Kachi Development Timeline Ready to move into 2024 - plan consistent with June 2023 Operational Update
Slide 19: Next Steps
Kachi | Project —-_sBvaggas arr Next Steps
Slide 20: Next Twelve Months
Next Twelve Months Strategic Partner Process for Kachi Process initiated, led by Goldman Sachs Project Offtake Commencement of negotiations to secure binding offtake agreements, in tandem with strategic partnering process The submission of the Environmental and Social Impact Assessment (“EIA”)
Slide 21: Positioned for Success
Positioned for Success Credible, Achievable and De-risked Robust and competitive NPV and IRR Compelling Project Economics Completion of Phase One DFS allows Lake to open a data room and engage with strategic investors, potential offtakers, and debt providers Ore Reserve constrained by plant ca
Slide 22: Thank you!
Thank you!
Slide 23: Appendix
Appendix 23
Slide 24: JORC update resource table note
Note: This table has been directly extracted from the JORC update announced on 22 November 2023. Lake Resources N.L. confirms that it is not aware of any information that materially affects the information included in Lake’s JORC update announced on ASX on 22 November 2023 and all material assumptio
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Definitions Note: These financial definitions are alternative performance measures that are not defined or specified under IFRS or AASC standards and for which there are no generally accepted reporting formats EBITDA = Earnings before Interest, Taxes, Depreciation and A
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