Nemaska Lithium — Investor Presentation (May 2018)
32 slides from Nemaska Lithium's investor presentation, May 2018
Slide 1: Corporate Presentation May 2018
Corporate Presentation May 2018
Slide 2: Forward-looking statement
• 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. Forward- • Such forward-looking statements are subject to risks and uncertainties that could
Slide 3: Investment Highlights
Investment Highlights • Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the raw material Vertically integrated at Whabouchi mine producing a high quality spodumene concentrate which is then transported and supplies lithium project the Electrochemical Pla
Slide 4: Nemaska Lithium | Company Overview
Nemaska Lithium | Company Overview Nemaska Lithium's Accomplishments to Date Next Steps Construction and development of 10,000 tonnes bulk sample producing commercial operations targeting(1) 1 ~1,100 tonnes spodumene concentrate ✓ Start commercial production of spodumene @ 6.25% (Li2O) concentrate i
Slide 5: Nemaska Project Overview
Nemaska Project Overview 1. One of North America’s largest spodumene deposits located in the Eeyou Istchee James Bay region, Canada • High grade NI 43-101 spodumene reserve of 37 Mt @ 1.4% (Li2O). • Expected to produce 213,000 tonnes on average of spodumene concentrate @ 6.25% (Li2O). • 11,000 tonne
Slide 6: Senior Management and Board of Directors
Senior Management and Board of Directors Senior Management Board of Directors • President & CEO of Nemaska since inception in • Guy 2008. Michel Baril(2) Over 30 years as a mechanical engineer and senior executive. Bourassa(1) Chairman • Currently serves as a Director at Raymor Industries Inc. • Ove
Slide 7: Technical and Operations Team
Technical and Operations Team Technical Team Construction and Operations Team • Professional engineer with over 20 years of experience • Senior mechanical engineer in the industrial field with over 30 Jean-François in the metallurgical industry and the lithium battery Yves years of significant exper
Slide 8: Capital Structure (May 14, 2018)
Capital Structure (May 14, 2018) Shares outstanding 402,018,577 Options (average exercise price $0.76) – August 2018 to March 2023 15,949,484 Warrants (average exercise price $1.49) – July 2019 30,825,635 Fully Diluted 448,793,696 Distribution on a fully diluted basis Management and employees ≈8 % R
Slide 9: Streaming Agreement | USD 150 million
Streaming Agreement | USD 150 million About Orion Mine Finance • Orion Mine Finance is an alternative investment manager with USD 3.9 billion under management and specializes in providing flexible and comprehensive capital solutions to global mining companies. • Orion Mine Finance has a seasoned tea
Slide 10: SoftBank Private Placement | CAD 99 million
SoftBank Private Placement | CAD 99 million About SoftBank • The SoftBank Group (TOKYO:9984) is a Japanese global technology player that aspires to drive the information revolution with a market capitalization of USD 78 billion and an enterprise value of USD 202 billion. • SoftBank makes investments
Slide 11: Lithium Uses 2016 and 2026E
Lithium Uses 2016 and 2026E Uses of Lithium in 2016 Uses of Lithium in 2026E Glass Air treatment Other Polymer 1% Primary 0% 2% 1% battery… Greases 2% Glass-ceramics 3% Air treatment Ceramics 2% Primary battery 3% Rechargeable 2% battery Other 9% 42% Metallurgical powders 4% Glass 5% Total demand Ex
Slide 12: Gigafactories Driving Demand for Lithium
Gigafactories Driving Demand for Lithium 10x in Expected Lithium Demand from Gigafactories between 2016 – 2021E 24 260 ‘000 tonnes battery grade LCE consumption ‘000 tonnes battery grade LCE consumption per per year in 2016 year expected in 2021 325 37 38 34 34 5 4 5 4 15 27 GWh per year 34 34 167 1
Slide 13: Pricing Outlook
Pricing Outlook Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide 21 000 20 200 900 850 19 000 18 800 19 000 790 17 800 800 17 050 16 700 17 000 700 15 700 15 500 700 14 750 15 000 13 900 14 100 630 USD per tonne USD per tonne 13 183 610 600 12 750 590 13 000
Slide 14: Supply Outlook
Supply Outlook New Lithium Development Projects(1) Lithium Supply(2) • In response to the large increase in demand there are several new lithium development projects in the pipeline • In response to increased lithium demand, new lithium supply has come online predominantly from spodumene concentrate
Slide 15: 2018 Feasibility Key Figures
2018 Feasibility Key Figures Expected Mine Life and Payback Period Yearly Average Production 33 years Whabouchi Mine with 2.9 year payback period (after-tax) ≈ 213,000 tonnes of concentrate (6.25% Li2O) Shawinigan Electrochemical Plant Average Cost Per Tonne - Spodumene Concentrate ≈ 23,000 tonnes o
Slide 16: Whabouchi Mine | Mine Site Infrastructure
Whabouchi Mine | Mine Site Infrastructure Mine Overview • The Whabouchi Mine in Nemaska lies in close proximity to a network of powerlines with two hydro-electric power stations within 20 km. Hudson Bay • Whabouchi Mine located next to Route du Nord, which connects to Chibougamau and James Bay Road.
Slide 17: Whabouchi Mine | Reserves and Deposit
Whabouchi Mine | Reserves and Deposit Reserve Overview Whabouchi Deposit Category Tonnage (Mt) Li2O (%)(1) Open pit Proven and probable 24 1.53% Underground Proven and probable 13 1.16% Combined Proven and probable 37 1.40% Whabouchi Mine Simulation of how the Whabouchi Mine will look like once it i
Slide 18: Whabouchi Mine | Mining
Whabouchi Mine | Mining The Whabouchi Mine will operate Open Pit Mine Design by Phase • The Whabouchi Mine will operated as a conventional open- pit, truck and shovel, drill and blast operation. • A 24-year mine life open pit and extension to 33 years via underground operation. • Run-of-mine 1.03 mi
Slide 19: Whabouchi Mine | Processing
Whabouchi Mine | Processing Processing Overview Whabouchi Concentrator Flow Sheet • Processing at the Whabouchi Mine is straightforward and conventional: – targeted initial production Q3 2019; – life-of-mine recovery of 85.3% spodumene; – simple crushing and sorting circuit consisting; – low and hig
Slide 20: Logistics | From Deposit to Customer
Logistics | From Deposit to Customer Whabouchi Chibougamau Shawinigan ~300 km from Whabouchi to Chibougamau ~555 km from Chibougamau to Shawinigan Concentrator Truck Train Plant • Producing 6.25% (Li2O) • The concentrate will be • Concentrate is loaded onto • Railcars will enter the site spodumene c
Slide 21: Electrochemical Plant | Existing Buildings in Shawinigan
Electrochemical Plant | Existing Buildings in Shawinigan Hydroelectric Power Plant Electrochemical Plant Anticipated commissioning Q3-2020 Phase 1 Plant Commissioned in Q1-2017 and in production 21 Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018
Slide 22: Shawinigan Electrochemical Plant | Flowsheet
Shawinigan Electrochemical Plant | Flowsheet Comments Shawinigan Electrochemical Plant Flow Sheet • The Shawinigan Electrochemical Plant process for the conversion of spodumene concentrate to lithium compounds is a patented proprietary process of Nemaska: – thermal conversion; – acid baking and leac
Slide 23: Nemaska to Produce a High Quality Hydroxide
Nemaska to Produce a High Quality Hydroxide Lithium Hydroxide Grade Comparison Purity Specifications Product Market specifications(1) NMX LiOH grade Specifications Nemaska Lithium 57,5 % LiOH, wt% 54.8 - 56.5 57.5 Ca, mg/kg 10 – 100 <1 FMC Corporation 56,5 % Na, mg/kg 20 – 500 < 20 K, mg/kg 10 – 250
Slide 24: Nemaska's Concentrate Hydroxide and Carbonate Cost Advantages
Nemaska’s Concentrate Hydroxide and Carbonate Cost Advantages Concentrate Costs for Nemaska vs. Competitors (all US$) US$ Costs for Nemaska vs. Competitors – Hydroxide US$ Costs for Nemaska vs. Competitors – Carbonate 14
Slide 25: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Hydroxide Cost Curve 2021E Lithium Carbonate Cost Curve 2021E USD per tonne USD per tonne lithium lithium hydroxide carbonate • Nemaska lithium is expected to be the lowest cost producer of lithium • Nemaska Lithium is expected to be on the middle of the
Slide 26: Derisking Initiatives | Phase 1 Plant Proves Methodology
Derisking Initiatives | Phase 1 Plant Proves Methodology • USD 49 million of equity already invested in the construction of the mine(1) • 1,100 tonnes of spodumene concentrate already produced. WHABOUCHI • 6.25% (Li2O) spodumene concentrate already MINE delivered to the Shawinigan Electrochemical Pl
Slide 27: Capital Expenditure Forecast by Project Quarter
Capital Expenditure Forecast by Project Quarter 160 Whabouchi Mine 700 Electrochemical Plant 616 140 136 Cummulative Project 600 118 120 500 100 81 86 400 USD million USD million 66 81 76 80 300 46 56 60 51 60 200 40 33 55 53 53 17 100 20 40 14 4 29 33 12 16 14 1 0 3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 28: Construction Schedule
Construction Schedule(1) 2018 2019 2020 Whabouchi Mine Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Engineering(2) Procurement(2) Manufacturing(2) Delivery Construction(2) Pre-operational verification Ramp up and commercial production Shawinigan Electrochemical Plant Engineering(2) Procurement(2) Manufacturi
Slide 29: Cashflow Overview from Feasibility Study
Cashflow Overview from Feasibility Study(1) 450 8 000 After tax cash flow Tax Cumulative after-tax cashflow (secondary axis) 350 6 000 250 4 000 150 2 000 50 USD million USD million - (50) (2 000) (150) (4 000) (250) (6 000) (350) (450) (8 000) Project Year (1) For a detailed overview of the cash fl
Slide 30: Quality Offtake Partners Secured
Quality Offtake Partners Secured Johnson Matthey FMC Pricing Mechanisms • Johnson Matthey is a global • FMC is a U.S. chemical • The pricing mechanisms for lithium specialty chemicals company. manufacturing company based in carbonate prices, depending on the Philadelphia, Pennsylvania, United contra
Slide 31: Project Summary | Key investment takeaways
Project Summary | Key investment takeaways Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction 1 2 3 4 5 Near term To become the Unique location Proven commercial lowest cost World-class and process of production producer of producer of counterparties processing proces
Slide 32: Nemaska Lithium
NEMASKA LITH]UM