Slide 1: Benchmark World Tour 2018 - Finniss Lithium Project
For personal use only BENCHMARK WORLD TOUR 2018 FINNISS LITHIUM PROJECT September 2018 ASX:CXO ASX:CXO
Slide 2: Disclaimer
DISCLAIMER The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and Metallurgy and is boun
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes Cautionary Statement: The PFS results are based upon the updated Grants Mineral Resource of 8 May 2018 (ASX announcement 8 May 2018). The Mineral Resource contains Indicated and Inferred material (see Table 5 in section 3.1 below – 37% Inferred material and 63% Indicat
Slide 4: Core Exploration on Pathway to Production
CORE EXPLORATION For personal use only ON PATHWAY TO PRODUCTION ✓ Finniss Project is unlocking a new lithium rich province in the Bynoe Pegmatite Field, near Darwin ✓ Low risk, conventional, open pit mining operation with simple metallurgy ✓ Favourable project characteristics gives rise to high marg
Slide 5: Countdown to First Lithium Production
COUNTDOWN TO FIRST LITHIUM For personal use only PRODUCTION PFS Resource Upgrades Pre Payment Finance & Offtake Feasibility Study Environmental & Approvals FID Mining & Construction June Sept Dec Mar June 2018 2018 2018 2019 2019 CORE EXPLORATION ASX:CXO
Slide 6: Grants Pre-Feasibility Study Highlights
GRANTS PRE-FEASIBILITY STUDY For personal use only HIGHLIGHTS ▪ CXO on pathway to low-capex lithium concentrate production near Darwin - targeting late 2019 ▪ Preliminary Feasibility Study (PFS) only models development of Grants deposit only ▪ PFS delivers strong financial outcomes: ▪ Capital Cost o
Slide 7: For personal use only
rfront EastArm Porte \ a GRE & Fm 2 Middle Arm Industrial’e — FOr personal a
Slide 8: Grants Deposit Pre-Feasibility Study Key Metrics
For personal use only Grants Deposit Pre-Feasibility Study Key Metrics CORE EXPLORATION ASX:CXO
Slide 9: Company Information
Company Information For personal use only Shares Price A$ ~$0.045 Shares on issue ~633.5M Market cap ~$32M Cash (30/6/2018) ~$8M Enterprise Value ~$20M Directors Management Stephen Biggins Blair Duncan Managing Director ex SAU, IVR General Manager Development Greg English Dr David Rawlings Non-Execu
Slide 10: Finniss Lithium Project PFS Overview
FINNISS LITHIUM PROJECT For personal use only PFS OVERVIEW Potentially best logistics chain to Asia of any Australian lithium project ▪ One of Australia's highest grade lithiumresources ▪ Grants is close to grid power, gas and rail infrastructure ▪ 88km haul route to Darwin Port is on all NT Governm
Slide 11: Exceptional Economics: Finniss PFS Operating Margins
EXCEPTIONAL ECONOMICS For personal use only FINNISS PFS OPERATING MARGINS ✓ Competitive, low operating costs ✓ Strong margins in a range of price environments Operating Costs A$/t US$/t1 1000 Operating Costs Operating Margin 900 Mining 208.7 156.5 800 Processing 71.2 53.4 700 Hauling 11.5 8.6 57% 68
Slide 12: Low Capex: Finniss PFS Capital Costs
LOW CAPEX For personal use only FINNISS PFS CAPITAL COSTS ✓ Among the least capital intensive Australian lithium projects Capital Costs AUD M USD M1 Mobilisation Mobilisation 1.7 1.3 Site Establishment Site Establishment 0.5 0.4 Groundwater Management Groundwater Management 0.9 0.6 Mine Development
Slide 13: Proposed Site Layout Grants Deposit
PROPOSED SITE LAYOUT For personal use only GRANTS DEPOSIT Mining of spodumene containing pegmatite using simple open pit mining methods ▪ Conventional open pit mining ▪ Drill & blast ▪ Excavate, load & haul ▪ Crush and screen circuit ▪ 3-Stage crush ▪ DMS (gravity separation) plant ▪ 5.5 % Li2O conc
Slide 14: Strong Cash Generation: Finniss PFS Cash Flows
STRONG CASH GENERATION For personal use only FINNIS PFS CASH FLOWS $200 ✓ $53.5 million capex will deliver close to $170 million in free cash over 26 months $150 ✓ Rapid payback <12 months Cumulative Cash Flows (AUD M) $100 ✓ sources that may be delineated within the Finniss Project Does not factor
Slide 15: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL For personal use only FEASIBILITY STUDY IN PROGRESS PFS focussed on Grants only, BP33 to be considered as part of 2018 Feasibility Study ▪ Significant upside potential through addition of other ore sources within the Finniss Project ▪ The incremental value of additional
Slide 16: Binding Lithium Offtake and US$20M Pre-Payment
BINDING LITHIUM OFFTAKE For personal use only AND US$20M PRE-PAYMENT Core has signed a binding offtake and US$20 million pre-payment agreement with Yahua ▪ Binding offtake and pre-payment agreements signed with Yahua (8B yuan market cap) ▪ Yahua is one of China’s largest lithium producers ▪ Offtake
Slide 17: Lithium Offtake and US$35M Pre-Payment
LITHIUM OFFTAKE For personal use only AND US$35M PRE-PAYMENT Core has signed a non-binding Term Sheet with Shandong Ruifu Lithium Co Ltd ▪ Up to 150,000 tonnes lithium concentrate offtake per year from Core’s Finniss Lithium Project ▪ Ruifu is one of China’s largest lithium hydroxide and carbonate p
Slide 18: 2018 Metallurgical Testwork
2018 METALLURGICAL TESTWORK For personal use only TARGETING HIGHER RECOVERIES New test work produces 6.1% Li2O concentrate Concentrate PFS New Results at 69% recovery Grade (Li2O) 5.0% 5.5% 6.1% ▪ Recent metallurgical testwork shows a strong improvement in the assumptions (2017) utilised in the PFS,
Slide 19: 2018 Drilling: Finniss Project
2018 DRILLING For personal use only FINNISS PROJECT Targeting substantial resource growth ▪ Upcoming exploration and aggressive drill programs in 2018 to target growth in the resource base to support a long-life lithium production hub at Finniss Project ▪ Core’s exploration has discovered some of th
Slide 20: 2018 Drilling: Grants Expanding
2018 DRILLING For personal use only GRANTS EXPANDING 67M @ 1.6% intersection outside resource ▪ Multiple new high-grade lithium intersections outside the Mineral Resource at Grants include: ▪ 67m @ 1.57% Li2O from 191m in FRC151 ▪ Including 16m @ 2.17% Li2O ▪ And 12m @ 2.08% Li2O ▪ 45m @ 1.72% Li2O
Slide 21: 2018 Drilling: BP33 Expanding
2018 DRILLING For personal use only BP33 EXPANDING 55M @ 2.0% spodumene pegmatite drill intersection ▪ Wide and high-grade lithium assays returned from drilling at BP33 prospect delivers spodumene intersection amongst the best in Australia: ▪ 75m @ 1.68% Li2O from 210m*; including: ▪ 55m @ 1.97% Li2
Slide 22: 2018 Drilling: Resource Growth Potential
2018 DRILLING For personal use only RESOURCE GROWTH POTENTIAL New high grade hits demonstrate potential to grow resources ▪ Intersections at Carlton Prospect include: ▪ 16m @ 1.79% Li2O from 84m (NRC015) ▪ 21m @ 0.89% Li2O from 113m (NRC027) ▪ Drill results at Hang Gong highlights potential for shal
Slide 23: Project Infrastructure Advantage
PROJECT INFRASTRUCTURE ADVANTAGE For personal use only ✓ Potentially best logistics chain to China of any Australian lithium project ✓ Darwin Port located close to Grants ✓ 88km route is on all Northern Territory Government roads licensed for road trains ✓ Bitumen (blacktop) all the way ✓ Grants is
Slide 24: Darwin Port Agreement
DARWIN PORT AGREEMENT For personal use only Core has agreement with Darwin Port to ship 1Mtpa of spodumene ▪ Darwin Port is Australia’s nearest port to China ▪ East Arm Wharf facilities at Darwin Port are well suited to handle potential future production from Core’s lithium projects ▪ Heads of Agree
Slide 25: ASX Lithium Sector Comparative Market Capitalisations
ASX LITHIUM SECTOR For personal use only COMPARATIVE MARKET CAPITALISATIONS 1,600 Producers 1,400 Market Capitalisation (AUD M) Explorers/Developers 1,200 (17-Sep-2018) 1,000 800 600 400 200 - MIN PLS GXY ORE AJM TAW* NMT* GSC KDR AGY AVZ PLL BGS PSC SYA EMH CXO INF *TAW 50%, NMT 14% CORE EXPLORATIO
Slide 26: CXO & ASX Lithium Sector
CXO & ASX LITHIUM SECTOR For personal use only 1st Quartile Project High Grade – 1st Quartile ✓ 1.4% Li O 2 Low capital intensity – 1st Quartile ✓ A$4,500/tpa concentrate Attractive operating costs – 1st Quartile ✓ US$230 C1/t concentrate CORE EXPLORATION ASX:CXO
Slide 27: Core Exploration on Pathway to Production
CORE EXPLORATION For personal use only ON PATHWAY TO PRODUCTION ✓ Finniss Project is unlocking a new lithium rich province in the Bynoe Pegmatite Field, near Darwin ✓ Low risk, conventional, open pit mining operation with simple metallurgy ✓ Favourable project characteristics gives rise to high marg
Slide 28: Thank You
THANK YOU For personal use only For more information: Stephen Biggins Managing Director +61 8 7324 2987 For broker and media enquiries: Warrick Hazeldine +61 417 944 616 Andrew Rowell +61 400 466 226 Cannings Purple