Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (June 2018)
42 slides from Ioneer's investor presentation, Jun 13, 2018
Slide 1: Equity Raising Presentation June 2018
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX: GSC Equity Raising Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 13 June 2018 ASX: GSC 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer IMPORTANT: You must read the following before continuing. This presentation has been prepared by Global Geoscience Limited (ABN 76 098 564 606) (and / or its subsidiaries, as the context requires, “Company”, “Global Geoscience” or “GSC”) in relation to an institutiona
Slide 3: Important Notice and Disclaimer (continued)
Important Notice and Disclaimer (continued) Non-IFRS Financial Measures Investors should also be aware that certain financial data included in this presentation may be "non‐IFRS financial information" under Regulatory Guide 230 Disclosing non‐IFRS financial information published by the Australian Se
Slide 4: Important Notice and Disclaimer (continued)
Important Notice and Disclaimer (continued) Investment risk An investment in New Shares is subject to investment and other known and unknown risks, some of which are beyond the control of Global Geoscience, including possible delays in repayment and loss of income and principal invested. The Company
Slide 5: Equity Raising to Maintain Momentum of Rhyolite Ridge Delivery
Equity Raising to Maintain Momentum of Rhyolite Ridge Delivery Large and strategically located lithium-boron resource – owned 100% Unconstrained pit contains 87Mt of Li-B mineralisation – indicating potential mine life of >20 years at 4Mtpa The Global NOT FOR DISTRIBUTION OR RELEASE IN THE UNITE
Slide 6: Equity Raising Overview
Equity Raising Overview Institutional Placement to professional and sophisticated investors (Equity Raising or Placement) by Global Geoscience Limited (Company or GSC) to raise up to approximately A$53 million (before NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Offer Structure and transac
Slide 7: Sources and Uses of Funds from the Capital Raising
Sources and Uses of Funds from the Capital Raising Sources of Funds NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Capital raising will: Proceeds from Capital Raising A$53m Total A$53m Strengthen Balance Sheet Accelerate development of large, Uses of Funds US$m A$m3 globally relevant Li-B reso
Slide 8: Equity Raising Timetable
Equity Raising Timetable Event Date (2018)¹ NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Trading Halt Wednesday 13 June Announcement of Completion of Equity Raising Pre Market Open, Thursday 14 June Trading Halt Lifted, Trading Recommences Pre Market Open, Thursday 14 June Settlement of New
Slide 9: Overview
NOT FORDISTRIBUTION NOTFOR ORRELEASE DISTRIBUTIONOR THEUNITED INTHE RELEASEIN STATES UNITEDSTATES Overview Company and Project
Slide 10: Overview of Global Geoscience
Overview of Global Geoscience Capital Structure Summary Project Location NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Pre-Raising Pro-Forma Shares 1,339m 1,470m Options (unlisted) 58.1m 58.1m Performance Rights (unlisted) 1.5m 1.5m Cash (as at 31 March 2018) A$33.6m >A$85.0m Share Price A$0.
Slide 11: Investment Highlights
Investment Highlights Highly Experienced Team $ High Quality Resource and Attractive Product Mix NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Globally significant and strategically located lithium and boron resource Bernard Rowe 10+ years mining executive experience Managing Director Favoura
Slide 12: Indicative Timeline for Development
Indicative Timeline for Development* PFS remains on track for release in Q3 2018 – will provide expected project economics using flowsheet which has been settled following recently completed trade off study Following submission of environmental baseline studies, GSC is increasingly confident that Rh
Slide 13: Extensive Range of Funding Options Available for Rhyolite Ridge
Extensive Range of Funding Options Available for Rhyolite Ridge Rhyolite Ridge owned 100% by GSC Full No private royalties Unencumbered Located in mining-friendly legal jurisdiction - Nevada NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Ownership Potential for investment benefits flow
Slide 14: Recently Completed - Phase of PFS
Recently Completed - Phase 1 of PFS Study Area Selection Key Advantages NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Lower operating and capital cost option Vat Leach More controlled and faster leach Leach Method vs Higher concentrations of Lithium and Boron in PLS Heap and Tank Less
Slide 15: Quality Technical & Commercial Team
Quality Technical & Commercial Team >30 years experience working on both small and large-scale operations and development Matthew Weaver projects at BHP, Rio Tinto and Newmont, as well as for several smaller mining companies Senior VP Engineering and Operations » Extensive project development and ac
Slide 16: District Scale Potential Large 100%-owned mining claims
District Scale Potential Large 100%-owned mining claims • Sediment-hosted lithium-boron deposit • Similar mineralisation in two basins • Mineralisation outcrops over 3 km NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES strike length North Basin - 38 wide-spaced holes • 100% Federal (BLM) land w
Slide 17: Site Layout Overview
Site Layout Overview Site designed to take advantage of topography NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Layout allows initial open pit expansion Planned surface disturbance of <1 square mile Small footprint is important for Environmental Assessment (“EA”) approval process ASX: GSC 17
Slide 18: Low-Risk Open Pit Mining
Low-Risk Open Pit Mining Pit Shell Constrained Unconstrained Mining Rate Mtpa 3-4 >4 South Basin Resource with Potential Pit Outlines Tonnage of Mineralisation Mt 26 87 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Potential Mine Life Years 6-9 21 Strip Ratio t:t 3.9 5.8 Grade - Lithium ppm 1
Slide 19: Simple Processing
Simple Processing NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Heap and vat leach processing of Lithium-Boron mineralisation successfully demonstrated Lithium and boron recoveries of >90% to PLS Load Vat leaching Wash Unload Maint. Rapid leach times at ambient temperature Substantially lower
Slide 20: Lithium & Boron at Rhyolite Ridge
Lithium & Boron at Rhyolite Ridge Lithium Carbonate Boric Acid NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Target Target Cash Costs: Cash Costs: $3,500- $400- Potential Products of 4,500/t High 500/t Large Li + B ~Equal Producer Recoveries Sale Value Lithium Boric Acid Total Carbonate High-
Slide 21: A leading source of lithium…
A leading source of lithium… As the most advanced lithium project in the United States, Lithium Carbonate Equivalent Consumption - 2026 Rhyolite Ridge is ideally placed to meet the forecast increase in lithium demand NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES LCE consumption forecast to ex
Slide 22: …and a globally important new source of borates
…and a globally important new source of borates Borate market dominated by two suppliers Global Borates Demand GSC is uniquely positioned to become a welcomed third supplier Cumulative kt B2O3 equivalent NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Global borates market size c.US$3bn per ann
Slide 23: Key Advantages of Rhyolite Ridge
Key Advantages of Rhyolite Ridge Rhyolite Ridge Advantage NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES USA supplier of critical minerals Integral to energy efficient future Nevada location Mining friendly & close to markets Large deposit Long mine life, expandable Shallow, thick & flat lying
Slide 24: Delivering First Major Lithium Mine in the United States
Delivering First Major Lithium Mine in the United States Doubling of mineral resources NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Excellent metallurgy test results delivered Simple processing option defined Appointment of highly experienced board and management team Phase 1 PFS r
Slide 25: Appendix
NOT FORDISTRIBUTION NOTFOR ORRELEASE DISTRIBUTIONOR THEUNITED INTHE RELEASEIN STATES UNITEDSTATES Appendix
Slide 26: Using Processing Technologies Proven at Commercial Scale
Using Processing Technologies Proven at Commercial Scale NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES On-site acid plant provides all of the steam and power required Vat leaching to be done at 50-60oC and at ambient pressure (similar to oxide copper) Boron will be separated first from the PL
Slide 27: Preliminary Boric Acid and Li Carbonate Circuits
Preliminary Boric Acid and Li Carbonate Circuits Boric acid circuit similar to Rio’s Boron NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES California mine Li2CO3 circuit similar to Li brine operations PLS coming into evaporators to be circa: o 50-60oC o 0.05-0.10% Li / 5.0-5.5% boric acid Heati
Slide 28: Strong and Sustained Development Momentum
Strong and Sustained Development Momentum 0.55 S&P ASX 300 Index Inclusion 0.50 Upcoming catalysts: NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Positive Vat Leach Testwork Crystallisation testwork to 0.45 generate lithium and boron PFS Engineer Amec Appointed product specifications 0.40 Pha
Slide 29: Board with Expertise for Li-B Development
Board with Expertise for Li-B Development NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES James D. Calaway | Non-Exec Chairman Bernard Rowe | Managing Director Former non-exec chairman of Orocobre Ltd Qualified geologist with over 25 years international Track record in building junior companies
Slide 30: Favourable Characteristics for Vat Leaching
Favourable Characteristics for Vat Leaching Unique mineralogy enables: For vat leaching at a 25mm crush: NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Rapid leach times: <7 days to recover >90% Li & B to PLS Moderate acid consumption: <400kg per tonne of rock Sample after column leach test 90
Slide 31: Rhyolite Ridge - Mineral Resource Estimate
Rhyolite Ridge - Mineral Resource Estimate Contained Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium % % % NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Mt ppm ppm kt kt kt October 2017 Mineral Resource Estimate (1,050ppm Li Cut-off) Indicated 147.7 1,900 7,70
Slide 32: Key Risks
Key Risks There are a number of factors, specific to Global Geoscience and of a general nature, which may affect the future operating and financial performance of Global Geoscience and the industry in which it operates. This section discusses some of the key risks associated with an investment in sh
Slide 33: Key Risks (continued)
Key Risks (continued) Production and cost estimates Global Geoscience has prepared a range of target cash costs for its operations. No assurance can be given by the Company that such targets will be achieved. NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Capital costs may be affected by unexp
Slide 34: Key Risks (continued)
Key Risks (continued) Operational risks Mining operations generally involve a high degree of inherent risk and uncertainty. Such operations are subject to all the hazards and risks normally encountered in the exploration, development and production of lithium carbonate, boric acid and other mineral
Slide 35: Key Risks (continued)
Key Risks (continued) Commodity prices and foreign exchange Global Geoscience’s revenues will in time be exposed to fluctuations in the prices for the minerals it produces including the price of lithium carbonate and boric acid. Volatility in these prices creates revenue uncertainty and requires car
Slide 36: Key Risks (continued)
Key Risks (continued) Environmental risk Global Geoscience’s operations and activities are subject to environmental laws and regulations. As with all mining operations and exploration and development projects, Global Geoscience’s operations may substantially impact the environment or cause exposure
Slide 37: Key Risks (continued)
Key Risks (continued) Insurance and uninsured risks Although Global Geoscience maintains insurance to protect against certain risks in such amounts as it considers to be reasonable, its insurance is unlikely to cover all the potential risks associated with its operations and insurance coverage may n
Slide 38: Key Risks (continued)
Key Risks (continued) Underwriting risk Global Geoscience expects to enter into an underwriting agreement with the underwriter, who expects to manage and fully underwrite the Placement, subject to certain terms and conditions. If certain conditions are not satisfied or certain events occur, the unde
Slide 39: Selling Restrictions
Selling Restrictions This document does not constitute an offer of new ordinary shares (“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 out
Slide 40: Selling Restrictions (continued)
Selling Restrictions (continued) 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 Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong
Slide 41: Selling Restrictions (continued)
Selling Restrictions (continued) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 20
Slide 42: Important Notices and Disclaimers
Important Notices and Disclaimers This presentation has been prepared as a summary only and does not contain all Competent Persons Statement information about Global Geoscience Limited’s (“Global” or “the Company”) assets and liabilities, financial position and performance, profits and losses, prosp