Ioneer Limited · ASX:INR
Ioneer — Goldman Sachs Annual Emerging Leaders Conference 2019
29 slides from Ioneer's conference presentation, Apr 3, 2019
Slide 1: Developing a major Lithium & Boron mine in the USA
For personal use only Developing a major Lithium & Boron mine in the USA, for an energy efficient future Goldman Sachs Annual Emerging Leaders Conference, Sydney 3rd April 2019 1
Slide 2: Important notices and disclaimers
Important notices and disclaimers This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and For personal use only The information in this report that
Slide 3: About ioneer (ASX:INR)
About ioneer (ASX:INR) For personal use only Shares Share Price (1 Apr 2019) Poised to become a responsible and profitable producer of the materials for an energy efficient future • Focused on developing the globally significant Rhyolite 1.47B A$0.17 Ridge Lithium-Boron Project in Nevada, USA Option
Slide 4: Recent achievements and milestones ahead
Recent Delivering a major lithium-boron mine in the USA achievements ✓ PFS completed in October 2018 – confirmed very low operating costs + For personal use only long life resource ✓ Boric acid – premium quality demonstrated by test work ✓ Infill drilling completed – improved grade and increased res
Slide 5: Rhyolite Ridge Lithium-Boron Project
Rhyolite Ridge Lithium-Boron Project For personal use only A globally significant lithium and boron deposit Significant USA supplier of critical Strategic location in Nevada, a tier one mining minerals jurisdiction & close to customer markets Two revenue streams, >30 year mine life, Large deposit of
Slide 6: Lithium – classed as a critical mineral by US Government
Lithium – classed as a critical mineral by US Government For personal use only Limited lithium supply • USA increasingly reliant on China for lithium battery supply Tesla Battery Gigafactory Target 35 GWh • USA working to ensure supplies of critical LG Chem minerals including lithium Battery Factory
Slide 7: Experienced Board with lithium-boron development expertise
Experienced Board with lithium-boron development expertise For personal use only James D. Calaway Alan Davies Patrick Elliott John Hofmeister Bernard Rowe Non-executive Non-executive Non-executive Non-executive Managing Director Chairman Director Director Director Former: Former: Former: Former: For
Slide 8: Project overview
Project overview For personal use only A searlesite resource that is different to other sedimentary lithium deposits - it is suitable for a simple acid leach process • Total Resource1 of 4.1 million tonnes lithium carbonate & 10.9 million tonnes boric acid • Including 121 million tonnes of lithium-b
Slide 9: Rhyolite Ridge cross section
Rhyolite Ridge cross section For personal use only Lithium-boron searlesite ore Lithium clay mineralisation Lithium-boron ore: • Outcrops over 3 km and dips gently to west • 20m to 40m thick and laterally consistent • Resource open to south, north and east 9
Slide 10: Rhyolite Ridge south basin
Rhyolite Ridge south basin For personal use only • Starter pit mined during first seven years South Basin prospective area • Current Resource provides mine life of >30 years • Recent drilling improves grade and strip ratio and extends mineralisation to the south • Opportunity to expand Resource with
Slide 11: PFS demonstrates robust project economics
PFS demonstrates robust project economics For personal use only Annual Revenue Total Capex Annual EBITDA $450M $599M $297M After-tax After-tax NPV IRR Cashflow (7% real): $6.6B $1.8B 28% Bottom of the Cost Curve Long Life Project • $1,796 per tonne of lithium • >30 years & expandable carbonate (with
Slide 12: Capex flexibility
Capex flexibility For personal use only 600 Capex optimisation opportunities: Site facilities $57 Contingency • The acid plant is a key capex driver 500 $68 • PFS demonstrated rapid payback of capital: 4 years Indirects 400 $111 • Recently announced US$60 million saving on sulphuric million US$ acid
Slide 13: Lowest operating cost
Lowest operating cost For personal use only Rhyolite Ridge to be at bottom of the lithium cost curve • PFS opex costs < $2,000/tonne lithium carbonate • Boric acid revenue at $700/tonne pays for most of (with boric acid credit) place Rhyolite Ridge at the site operating costs bottom of the cost curv
Slide 14: Funding flexibility & strategic partnering
Funding flexibility & strategic partnering For personal use only Multiple options to fund US$599M in capex 100% ownership ▪ Engaging with interested parties on potential: of asset o Lithium and/or boron offtake o Vendor and export credit finance Two o Acid plant (~30% of capex) option to finance sep
Slide 15: Key steps to production
Key steps to production For personal use only Indicative Timeline for Rhyolite Ridge* 2017 2018 2019 2020 2021 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 Key deliverables 2019: Pre Feasibility Study • Pilot plant to produce samples for customers Definitive Feasibility St
Slide 16: Lithium & boron – essential for a modern world
Lithium & boron – Lithium essential for a modern world For personal use only Electric Vehicles Energy Storage • Strong demand growth • Limited supply in North America • Sustainable materials essential for modern life Boron • Broad range of uses mitigates reliance on single sector • Major boron users
Slide 17: Global demand outlook
Global demand outlook Lithium and boron are key resources essential for modern life For personal use only Lithium: Source: Benchmark Mineral Intelligence, January 2019 ▪ Increased use of lithium batteries to drive demand growth ▪ Growth being driven by the electric vehicle revolution with secondary
Slide 18: Current progress & activities
Current progress & activities For personal use only • Strategic partner discussions ongoing • Fluor undertaking DFS then Engineering, Procurement, Construction Management • Engineering and trade-off studies advancing • Golder updating Mineral Resource and Ore Reserve • SNC Lavalin/DuPont engineering
Slide 19: Key partners
For personal use only ASX: INR Key partners
Slide 20: Summary & highlights
Summary & highlights 100% ownership of the globally significant lithium-boron searlesite resource at For personal use only Rhyolite Ridge Strategically located in a tier one mining ioneer is set to deliver a jurisdiction - Nevada, USA major lithium-boron mine in the USA Potential to fill USA lithium
Slide 21: Providing the materials for a sustainable & thriving planet
For personal use only Providing the materials for a sustainable & thriving planet. Bernard Rowe Ian Bucknell Managing Director Chief Financial Officer 21 ASX: INR
Slide 22: Appendix
For personal use only ASX: INR Appendix 22
Slide 23: Rhyolite Ridge ideally located to markets
Rhyolite Ridge ideally located to markets For personal use only Jadar Rhyolite Ridge Asia + North America = • >75% of boron demand • ~80% of lithium demand Lithium districts Boron deposits Lithium & Boron deposits Logistical advantage – transport costs important for all industrial minerals ASX: INR
Slide 24: Nevada – Tier 1 mining jurisdiction
Nevada – Tier 1 For personal use only Likely to benefit from the US Government’s renewed emphasis on domestic supplies of critical minerals • Tier 1 Mining Jurisdiction Looking south-east over Rhyolite Ridge South Basin • Excellent infrastructure with direct access to rapidly expanding American and
Slide 25: Processing
Processing For personal use only Using processing technologies proven at commercial scale ▪ On-site acid plant provides all of the steam and power required (+ circa 38MW surplus) ▪ Ore crushed to 25mm ▪ Ore vat leached at 50-60o C and at ambient pressure (similar to oxide copper) ▪ Boric acid crysta
Slide 26: Boric Acid Circuit
Boric Acid Circuit Material circuits Brine Brine Lithium Circuit For personal use only ▪ PLS into boric acid circuit to be circa: Slurry Boric Acid Boric Acid Boric Acid Crystallisation Centrifuges Dissolution / Product Drying Flotation Slurry Recrystallisation Centrifuges ▪ 50-60o C ▪ 0.05-0.10% Li
Slide 27: Lithium and boron conversion factors
Lithium and boron conversion factors For personal use only • Lithium and boron grades are fundamentally presented in parts per million (“ppm”) or percentages of each element in a given The conversion factors presented below are sample or estimate. calculated on the atomic weights and number of atoms
Slide 28: Commercial & Technical Team
Commercial & Technical Team: For personal use only Ian Bucknell Matthew Weaver Michael Le Page Yoshio Nagai Peter Ehren Chief Financial Officer Sr. VP Engineering & Commercial Sales & Business Lead Process Operations Director, Sales & Development Director Engineer Marketing Key experience: Key exper
Slide 29: October 2018 Mineral Resource Estimate
October 2018 Mineral Resource Estimate (1,050ppm Li Cut-off) Total Resource including Lithium-Only Mineralisation and Lithium-Boron (Searlesite) Mineralisation Contained Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium For personal use only Mt ppm ppm % % % kt kt kt I
ioneer — Goldman Sachs Annual Emerging Leaders Conference 2019 on 6ix