Nemaska Lithium — Investor Presentation (April 2016)
35 slides from Nemaska Lithium's investor presentation, Apr 19, 2016
Slide 1: How to profit from the booming lithium markets
How to profit from the booming lithium markets TSX-V NMX and OTCQX – NMKEF April 19, 2016 Constituent of the S&P/TSX Venture Select
Slide 2: Forward-looking Statements
Forward-looking Statements During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to the Company’s projects, business strategy and plan, which could be construed as forward-looking. Such forward-looking statements are subject to risks and uncertaint
Slide 3: Nemaska Lithium Overview
Nemaska Lithium Overview 1. Nemaska Lithium has a World Class Lithium Asset: Whabouchi Spodumene Mine – 2nd richest and largest deposit in the world with 27.3 MT Proven and Probable Reserves for an initial 26 years mine life - potential to increase, average grade 1.53% Li2O – Federal and Provincial
Slide 4: Lithium Supply, Demand and Price Forecast
Lithium Supply, Demand and Price Forecast
Slide 5: Lithium Demand Expected to Outstrip Supply
Lithium Demand Expected to Outstrip Supply 100,000t of new lithium carbonate equivalent (LCE) needed by 2021 5
Slide 6: Megafactories Pushing on Demand for Lithium
Megafactories Pushing on Demand for Lithium • Total new capacity of 87 GWh should require an additional 70,000t to 100,000t of LCE by 2021, this supply currently does not exist. 6
Slide 7: Lithium Hydroxide and Carbonate Prices Expected to Increase
Lithium Hydroxide and Carbonate Prices Expected to Increase Price forecast trend for battery-grade lithium hydroxide and lithium carbonate (US$/t CIF) Hydroxide Carbonate 2015 8,640 5,575 2016 9,473 6,292 2017 9,892 6,854 2018 10,210 7,410 2019 10,750 7,750 2020 11,115 8,115 2021 11,495 8,495 2022 1
Slide 8: Lithium Production is Limited
Lithium Production is Limited 4 major producers of lithium globally 8 8
Slide 9: New Production From Existing Brines Limited
New Production From Existing Brines Limited • Chile – Producers - SQM & Albemarle – Chilean govt. recently authorized Albemarle to increase production capacity – Partial lift of the moratorium on issuance of new permits announced – Possibly 2 new exploration permits to be issued to Codelco • Argenti
Slide 10: New Production From Existing Hard Rock Unlikely
New Production From Existing Hard Rock Unlikely • Australia/China – Producer – Talison and Chinese Transformers – Talison jointly owned by Tianqi Lithium (51%) and Albemarle (49%) – Tianqi currently at maximum transformation capacity – Mine output capacity increase unlikely for a few years 10 10
Slide 11: Lithium New Comers to Meet New Demand
Lithium New Comers to Meet New Demand Nemaska Lithium 3 (Canada) 28,000 t LCE Lithium projects permitted Lithium Americas/ Neometal/ Ganfeng SQM globally today (Argentina) 17,000 t LCE (Australia) 20,000 t LCE 11 11
Slide 12: Project Infrastructure, Reserves & Resources and Proprietary Process
Project Infrastructure, Reserves & Resources and Proprietary Process
Slide 13: Quebec, Very Good Location and Jurisdiction
Quebec, Very Good Location and Jurisdiction • Mine and concentrator located in Eeyou Istchee James Bay region, 300km North of Chibougamau • 1.1MT/y ore • 213kt/y 6% Li2O concentrate • 185 employees • Transport by road and rail (CN) Chibougamau • 18-24 rail cars/3days Shawinigan • 6 trucks/day • 15 e
Slide 14: Excellent Infrastructure at Mine Site
Excellent Infrastructure at Mine Site 14
Slide 15: Grade is KING + Low levels of Mica, Sodium and Potassium
Grade is KING + Low levels of Mica, Sodium and Potassium Reserves Resources Category Tonnage (Mt)* Li2O (%) Category Tonnage (Mt)* Li2O (%) Open pit Proven 11.7 1.58 Measured 12.998 1.60 Probable 8.3 1.46 Indicated 14.993 1.54 Proven and probable 20.0 1.53 M+I 27.991 1.57 Underground Inferred 4.686
Slide 16: Hydromet Plants existing buildings in Shawinigan, Quebec
Hydromet Plants existing buildings in Shawinigan, Quebec Commercial Plant Phase 1 Plant Artist rendition to modify existing site and buildings 16
Slide 17: Phase 1 Plant - Layout
Phase 1 Plant - Layout Artist rendition to modify existing site and buildings 17
Slide 18: Nemaska Added Value: Produce Directly LiOH•H2O
Nemaska Added Value : Produce Directly LiOH•H2O Concentrate C$2,693/t *US$ 2,154/t Calcination Remove Remove Remove impurities Lithium Fe, Al, Si, to ppb Hydroxide Ca, Mg Roast with Cu levels Monohydrate sulphuric acid Lithium Primary Secondary Lithium Ion Membrane Sulfate Impurity Impurity Hydroxid
Slide 19: Feasibility Study Highlights, Sensitivity Analysis, Financing Options – Plan Nord
Feasibility Study Highlights, Sensitivity Analysis, Financing Options – Plan Nord
Slide 20: 2016 Feasibility Study Highlights
2016 Feasibility Study Highlights Expected Mine Life and pay back period 26 years with 2.4 year pay back period Life of Mine Revenue $9.2 Billion (US$7.4 B) (average of $354M/yr for 26 yrs) Pre-Tax After tax Undiscounted Cash Flow $6.2 Billion (US$4.9 B) $3.9 Billion (US$3.1 B) (average of $260M/yr
Slide 21: Nemaska Lithium – LiOH Lowest Cost Producer
Nemaska Lithium – LiOH Lowest Cost Producer NMX Lithium Hydroxide Cost 21
Slide 22: Supportive Quebec Government
Supportive Quebec Government • Investor in Nemaska since its inception through various exploration and development funds • “Plan Nord” program to support the development of resources in Northern Quebec (North of 49th parallel) • Special fund of $1B to take direct equity positions (up to 20%) in comp
Slide 23: Business Plan and Market Penetration Strategy
Business Plan and Market Penetration Strategy
Slide 24: Nemaska Lithium Business Plan
Nemaska Lithium Business Plan • Achieve Market Penetration While Building Commercial Plant – Build and operate a Phase 1 Production Plant to: • Engage customers with product in advance of commercial production to qualify the product • Total budget of $38M arranged – ($13M in grant from SDTC, $3M in
Slide 25: Conclusion, Capital Structure, Management and Board of Directors
Conclusion, Capital Structure, Management and Board of Directors
Slide 26: Conclusion – Why Nemaska Lithium
Conclusion – Why Nemaska Lithium • Given the forthcoming shortage in lithium hydroxide supply, Nemaska Lithium is perfectly timed to enter the chain of supply • Phase 1 production plant is a sound decision, significantly reduces funds required and de-risk start up of commercial production • Permitte
Slide 27: Capital Structure (April 18, 2016)
Capital Structure (April 18, 2016) Shares outstanding 217,173,915 Options (average exercise price $0.51) 14,901,725 Warrants (average exercise price $0.28) 22,221,915 Fully Diluted 254,297,555 Distribution on a fully diluted basis Management ≈14 % Tianqi ≈8 % Retail, Institutional and Funds ≈78 %
Slide 28: Leading Technical Team
Leading Technical Team Jean-François Magnan, Eng. M.Sc. Technical Manager Mr. Magnan is a professional engineer with more than 20 years of experience in the metallurgical industry. During his career, he held several positions within the lithium industry including: R&D Advisor, R&D Project Manager, C
Slide 29: Experienced Management and Board
Experienced Management and Board Guy Bourassa, President and CEO, Board of Directors Mr. Bourassa is President and CEO since Nemaska’s inception in 2008. He brings more than 30 years of experience in the mining industry to this role. Among other things he was instrumental in identifying and negotiat
Slide 30: Board of Directors
Board of Directors François Biron, Director Mr. François Biron is a senior professional mining engineer with 40 years of experience in the mining industry. His extensive experience in mining operations has been developed through acting in several senior site-based positions with well-known internati
Slide 31: Board of Directors (continued)
Board of Directors (continued) René Lessard, Director Mr. Lessard was the Sales Manager of Campagna Motors Inc. from September 2008 to October 2009. From October 2004 to October 2007, he was a sales manager of T-Rex Vehicles Inc. From February 2001 to July 2004, he was the Sales Manager of Distribut
Slide 32: Appendix: RB Energy Comparison
Appendix RB Energy Comparison
Slide 33: Main Differences Between Whabouchi Mine and Quebec Lithium Project
Main Differences Between Whabouchi Mine and Quebec Lithium Project (according to respective FS) Ore Grade 55% higher at Whabouchi : Whabouchi 1.46% Li2O QLI 0.94% Li2O Stripping ratio 2.5 time lower at Whabouchi: Whabouchi 2.2/1 QLI 5.5/1 Dilution far greater at QLI: QLI has over 50 narrow veins com
Slide 34: Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison
Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison Sources: Sources: Met-Chem Canada, 2014 Technology Management Group, 2012, Feasibility Feasibility Study on the Whabouchi Lithium Deposit Study Updated, NI 43-101 Technical Report and Hydromet Plant NI 43-101, June 2014 Quebec Lithium Project
Slide 35: Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison
Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison Sources: Sources: Technology Management Group, 2012, Feasibility Met-Chem Canada, 2014 Study Updated, NI 43-101 Technical Report Feasibility Study on the Whabouchi Lithium Deposit Quebec Lithium Project, La Corne Township and Hydromet Plant N