Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (November 2021)
20 slides from Ioneer's investor presentation, Nov 30, 2021
Slide 1: 2021 Macquarie WA Forum Investor Presentation
2021 Macquarie WA Forum Investor Presentation 30 September 2021
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: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price (As at 30 November 2021) SHARES OUTSTANDING 2.05b 30 November 2020 - 29 November 2021 $0.9000 PERFORMANCE RIGHTS AND OPTIONS OUTSTANDING 77.4m $0.8000 $0.7000 CASH BALANCE (30/09/2021) * excludes US$70m from Sibanye-Stillwater A$69.9m $0.6000 $0.5000
Slide 4: Milestones achieved this past year
Milestones achieved this past year Engineering • US$122-148 million in BOTTOM OF THE Lithium major work packages under LITHIUM COST CURVE negotiation Offtake • Work continuing with FOR END PRODUCTS Funding Agreement design increasing from 30% PRODUCED• Strategic AT SITE Partnership (DFS level) to 50
Slide 5: What next
What next LITHIUM OFF-TAKE FULLY PERMITTED - US focus - Federal permit - Strategic - Final Investment Decision US LISTING - Listing on Nasdaq PROJECT DEBT - Project Finance - ECA - Government support DETAILED ENGINEERING - Award of additional contracts - Construction ready Looking east over the Rhyo
Slide 6: Why ioneer
Why ioneer FULLY FUNDED TO FINAL EXPECTED LOWEST SIGNIFICANT UPSIDE INVESTMENT DECISION COST LITHIUM FROM LARGE PRODUCER RESOURCE BASE MOST ADVANCED COMMITMENT TO THE RIGHT TEAM TO LITHIUM PROJECT IN US SUSTAINABILITY DELIVER THE PROJECT Low emissions, energy & water Mining-friendly Nevada efficient
Slide 7: 1. Fully funded to final investment decision
1. Fully funded to final investment decision Project financing and sources of capital Project Debt Financing • Sibanye-Stillwater is direct funding ~60% of the DFS estimated capital Debt • ioneer and Sibanye-Stillwater working together to secure full debt financing to production for the Project • Di
Slide 8: 2. DFS (APR 2020) Project Economics
2. DFS (APR 2020) PROJECT ECONOMICS After-tax NPV (8% real): Unlevered After Tax IRR Annual Lithium Hydroxide: ~US$1.3B ~21% 22,000 Tonnes (Years 4-26) Annual Revenue Annual EBITDA Annual Boric Acid: US$422M US$288M 174,400 Split ~70% Lithium & 30% Boric Acid Tonnes (Years 1-26) Note: The DFS base c
Slide 9: 2. Most advanced lithium project in the US
2. Most advanced lithium project in the US ON TRACK TO BE CONSTRUCTION READY BY Q4 2022 BOTTOM OF THE LITHIUM COST CURVE FOR END PRODUCTS PRODUCED AT SITE ~50% DETAILED ENGINEERING COMPLETED. KEY CONTRACTS ARE BEING AWARDED FULL SIMULATION PILOT PLANT THROUGH TO Li CARBONATE AND HYDROXIDE ENVIRONMEN
Slide 10: 3. Expected lowest cost producer
3. Expected lowest cost producer All-in sustaining cash cost at the bottom of the cost curve 2019 LCE Cost Curve (US$/metric tonne) Global Producers Source: Roskill for all producing lithium brine and mineral operations shown on this cost curve, except for ioneer estimate sourced from the Rhyolite R
Slide 11: 4. Commitment to sustainability
4. Commitment to sustainability 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 implements best-in-class water utilization Low water usage while recycling the majority of wat
Slide 12: 5. Significant upside from large resource base
5. Significant upside from large resource base Opportunity to expand Resource with further drilling: • Resource open to south, north and east • Best grades and shallow intersections are to the south Large Mineral Resource Large Ore Reserve 146.5M Tonnes 60.0M Tonnes Total Ore Mined Long Life of Mine
Slide 13: 6. The right Board and Management team
6. The right Board and Management team Board of Directors Management Team BOTTOM OF THE LITHIUM COST CURVE JAMES D. CALAWAY ALAN DAVIES Executive Chairman Non-executive Director JAMES D. FOR END PRODUCTSBERNARD ROWE FORMER: FORMER: CALAWAY PRODUCED AT SITE Managing Director Non-exec chairman of Chie
Slide 14: 6. Surrounded by world-class partners
6. Surrounded by world-class partners BOTTOM OF THE EPCM LITHIUM COST CURVE Evaporation and Evaporation and Crystallization Crystallization Acid Plant FOR END PRODUCTS Ioneer Limited has invested >A$125m to date appraising PRODUCED AT SITE and developing the Project Material Handling Haulage System
Slide 15: Ideally positioned to serve the US supply chain
Ideally positioned to serve the US supply chain Demand • Eight US megafactories in the pipeline to 2024, three are already operational • Benchmark Minerals estimates that these megafactories will be producing 125GWh of LG CHEM IM3 Michigan New York cells by 2024 requiring ~107ktpa of lithium 20GWh 1
Slide 16: Clear path to completion
Clear path to completion Key Milestones Completed 2H21 1H22 2H22 2H24 BOTTOM OF THE LITHIUM COST CURVE FOR END PRODUCTS PRODUCED AT SITE ✓ DFS • Register of Notice • Construction ready • Anticipated • Mechanical of Intent (NOI) Record of completion ✓ Pilot Plant • Release equipment fabrication Decis
Slide 17: Contact information
Contact information Bernard Rowe Alex Cowie Matt Dempsey ioneer Ltd NWR Communications FTI Consulting Managing Director Investor & Media Relations Investor & Media Relations (Australia) (USA) T: +61 419 447 280 T: +61 412 952 610 T: +1 202 316 9609 E: browe@ioneer.com E: alexc@nmwcommunications.com.
Slide 18: Thank you
Thank you www.ioneer.com
Slide 19: Resources & Reserves
Resources & Reserves BOTTOM OF THE LITHIUM COST CURVE FOR END PRODUCTS PRODUCED AT SITE • Rhyolite Ridge total Ore Reserve almost quadrupled to 60 million tonnes (mt) • Approximately half of the Ore Reserve is classified as Proved • Boron grades increased by 26% in the total Ore Reserve, significant
Slide 20: Rhyolite Ridge process plant
Rhyolite Ridge process plant Sulphuric Evaporation/ Acid Plant Crystallization Sulphur Vat Leach Plant Supply Lithium Carbonate Circuit Power Plant Ore Handling/ Sizing and Storage Plant Utilities Boric Acid Circuit Reagents ioneer Investor Presentation www.ioneer.com 20