Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — IPO Roadshow (July 2015)
18 slides from Aqua Metals's IPO roadshow presentation, Jul 6, 2015
Slide 1: How AquaRefining can change the $22 billion lead industry
How AquaRefining can change the $22 billion lead industry Dr. Stephen Clarke Chairman and Chief Executive Officer July 2015 Filed Pursuant to Rule 433 Registration Statement No. 333 - 204826 Issuer Free Writing Prospectus dated July 6, 2015 Relating to Preliminary Prospectus dated June 25, 2015
Slide 2: Safe Harbor
This presentation contains forward - looking statements concerning Aqua Metals, Inc . , including statements regarding the prospects for the lead acid battery recycling industry, the future of lead acid battery recycling via traditional smelters, the Company’s development of its commercial lead acid
Slide 3: Executive Summary
3 Executive Summary • Lead is a growing $22B market opportunity • Lead acid batteries are critical to many high growth industries • Smelting is antiquated, polluting, and costly • AquaRefining makes high purity lead at a lower cost, without pollution • We intend to use this to fundamentally change t
Slide 4: Lead acid batteries dominate the storage market
LAB 96% Li - ion 4% Lead acid batteries dominate the storage market ( GWh /year) LAB Li-ion NiMH Other LABs are the world’s most recycled consumer product, but conventional recycling does not produce ultra - pure lead Primary lead mines, the main source of ultra - pure lead, are becoming depleted Le
Slide 5: Today, all LABs are recycled through smelting, a dirty and expensive process
5 Today, all LABs are recycled through smelting, which is a dirty and expensive process Three large US smelters have recently been shut down due to pollution and non - compliance. • Inefficient: Lead processed at 1400 ƒ F, often with dirty fuels • Unscalable: Can’t turn off; needs to process ≈400T/d
Slide 6: AquaRefining makes lead recycling clean, efficient, scalable and cost effective
6 AquaRefining TM makes lead recycling clean, efficient, scalable and cost effective • Efficient: Will use far less energy than smelting, and no dirty fuels • Scalable: Modular system supports multiple reduced transport costs • Pure: Produces ultra - pure lead • Clean: No toxic byproducts or lost le
Slide 7: We have proven AquaRefining at full scale
7 We have proven AquaRefining at full scale Single full - size electrolyzer Key Milestones • Large pilot electrolyzer operating since October 2013 • Process, materials and electrolyte proven • Full scale electrolyzer operating since January 2015 • ~40 times increase in throughput over pilot and 7,00
Slide 8: AquaRefining delivers substantially lower refining and waste costs
8 Smelting AquaRefining Lead Recovery Waste Transport Overhead Breaking Used LABs AquaRefining delivers substantially lower refining and waste costs Comparative Recycling Costs
Slide 9: We can be commercially viable at a much smaller scale than smelters
• We can be commercially viable at a much smaller scale than smelters • AquaRefineries can be profitable at 40T/day output -- smelters need 400T/ day • High margins, modular equipment and environmental friendliness mean we need less capital and can be located closer to the supply of batteries • We h
Slide 10: TRIC is near a large underserved population and has favorable regulations
TRIC is near a large underserved population and has favorable regulations 10 Smelter First AquaRefinery : TRIC • Potential partner on - site • Access to population of 32M within 8 hour drive • Growing hub for data centers and cleantech • Excellent infrastructure, talent and logistics • Low electrici
Slide 11: We are ready to break ground in TRIC immediately post-IPO
11 We are ready to break ground in TRIC immediately post - IPO TRIC AquaRefinery blueprint TRIC AquaRefinery CAD rendering Key Points • Our planned capacity is 80T/day • Capital cost $ 28.5mm: $14mm building, $6.5mm breaking, $8mm AquaRefining • 11.7 acre site purchased; ready to start construction
Slide 12: We can shift our sales model to respond to market conditions
12 We can shift our sales model to respond to market conditions and customer demand All numbers in 000s • IRR assumes years 5+ are equal to year 4 • Year 1 begins immediately post - IPO • Begin lead production in month 9 • Reach full scale of 80T/day in month 15 • 100% tolling in month 9; ramp to 75
Slide 13: Our next step will be to build AquaRefineries across the US and beyond
Our next step will be to build AquaRefineries across the US and beyond We intend to build AquaRefineries in Europe and other favorable locations around the world. First site: TRIC Potential next sites Smelter Potential AquaRefinery 13
Slide 14: Protecting our intellectual property is a central part of our business plan
Protecting our intellectual property is a central part of our business plan • We have an IP “greenfield” opportunity in front of us • Smelting is a millennia - old technology that has seen little recent innovation • We came at the problem from an electrochemical perspective, which is unique to this
Slide 15: • Dr. Stephen Clarke, Chairman and Chief Executive Officer • 20 years experience in
15 • Dr. Stephen Clarke, Chairman and Chief Executive Officer • 20 years experience in disruptive technologies for advanced batteries • Led a successful IPO on London Stock Exchange’s Alternative Investment Market • Head of Manufacturing Engineering at Rolls Royce plc. • Selwyn Mould , Chief Operati
Slide 16: • Mark Slade • Former Board Member of the London Metal Exchange • Former
16 • Mark Slade • Former Board Member of the London Metal Exchange • Former CEO of MAREX Financial (co - founded with Marathon Asset Management) • Former Board Member of the Futures and Options Association • Stanley Kimmel • Experience in large - scale design/build projects in metals and related ind
Slide 17: Capitalization table
Security Current (1) Post - IPO Common Stock Currently Outstanding 4,361,641 4,361,641 Promissory Note with interest through 6/30/15 2,501,237 2,501,237 Options Outstanding (2) 559,547 559,547 Options Reserved for Future Issuance 804,089 804,089 Warrants Outstanding (3)(4) 686,491 1,286,491 Common S
Slide 18: The issuer has filed a registration statement (including a prospectus) with the SEC for
18 The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates . Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete infor