Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (September 2021)
29 slides from Ioneer's investor presentation, Sep 16, 2021
Slide 1: US$490 Million Investment and Strategic Partnership with Sibanye-Stillwater
US$490 MILLION INVESTMENT AND STRATEGIC PARTNERSHIP WITH SIBANYE-STILLWATER 16 September, 2021 www.ioneer.com
Slide 2: Summary Information and Competent Persons Statement
Summary Information Competent Persons Statement This presentation has been prepared as a summary only and does not contain all the information In respect of Mineral Resources and Ore Reserves referred to in this presentation and about ioneer Ltd’s (“ioneer or the Company”) assets and liabilities, fi
Slide 3: www.ioneer.com
To the maximum extent permitted by law, no person owes any duty or liability (whether in tort, contract, equity or otherwise) or responsibility for any direct or indirect loss, cost, damage or liability (whether foreseeable or not) by any person acting on any information within this presentation reg
Slide 4: Agenda
1 Transaction Overview 2 Sibanye-Stillwater Placement Details 3 Sibanye-Stillwater Overview 4 Rhyolite Ridge Overview 5 Appendix: Summary of Transaction Terms & Key Agreements www.ioneer.com 4
Slide 5: Transaction Overview
TRANSACTION OVERVIEW www.ioneer.com
Slide 6: Asset Ownership Structure: JVCo Rhyolite Ridge
Sibanye Stillwater Limited (“Sibanye- Asset Ownership Structure Stillwater”) to contribute US$490 million of direct funding for 50% economic and voting interest in a newly formed joint venture (“JVCo”) ioneer will contribute 100% of the South Basin for a 50% interest in JVCo. ioneer will 50% (Operat
Slide 7: Announcement of strategic partner is the culmination of an 18 month process
Announcement of strategic partner is the culmination of an 18 month process ioneer believes Sibanye-Stillwater is the right partner for ioneer and Rhyolite Ridge Established US operator, First class ESG credentials Leading international miner with three integrated and commitment to with extensive ex
Slide 8: Transformational strategic investment highlights the quality of Rhyolite Ridge
Transformational strategic investment highlights the quality of Rhyolite Ridge and ioneer’s future as a major lithium and boron producer in the US Sibanye-Stillwater is a US$10 billion1 international mining company, with existing US operations and a proven track record in operating and developing la
Slide 9: Transaction Summary
• Sibanye-Stillwater to contribute US$490 million of direct funding (the “Commitment Amount”) into JVCo for a 50% interest and ioneer will contribute the rights to the Rhyolite Ridge Project for a 50% interest (the “JV Transaction”) • Sibanye-Stillwater and ioneer will both hold the same class of eq
Slide 10: Indicative Transaction Timetable
Event Date Announcement of Strategic Partnership with Sibanye-Stillwater 16 September 2021 Notice of Extraordinary General Meeting to approve Sibanye-Stillwater Placement By 20 September 2021 sent to shareholders Extraordinary General Meeting to approve Sibanye-Stillwater Placement 21 October 2021 A
Slide 11: Sibanye-Stillwater Placement Details
SIBANYE-STILLWATER PLACEMENT DETAILS www.ioneer.com
Slide 12: Placement Structure and Size
• Sibanye-Stillwater Placement to raise US$70 million Placement Structure and Size • 145.9 million ordinary shares will be issued subject to shareholder approval for the purpose of ASX Listing Rule 7.1 • The issue price per share under the Sibanye-Stillwater Placement is $0.655 per share, being equa
Slide 13: Sibanye-Stillwater Placement will assist in accelerating construction of Rhyolite Ridge
Sibanye-Stillwater Placement will assist in accelerating construction of Rhyolite Ridge Sources of Funds Uses of Funds1 Fund the costs necessary to advance the Proceeds from Sibanye-Stillwater Placement US$70.0m US$15.1m Project to commencement of construction Fund long lead items and other capital
Slide 14: Sibanye-Stillwater Overview
SIBANYE-STILLWATER OVERVIEW www.ioneer.com
Slide 15: Sibanye-Stillwater is a unique, diversified, international, precious metals Group
Sibanye-Stillwater is a unique, diversified, international, precious metals Group Americas assets European assets US PGM Stillwater mine (100%) US$10bn Market Capitalisation Reserves: 15.9Moz 2E 16% East Boulder mine (100%) LITHIUM (LiOH) Keliber project (17.3%) 26% >80,000 Number of Employees & Con
Slide 16: Green metals strategy complementary to existing commodity exposure
Green metals strategy complementary to existing commodity exposure • Pivoting into green metals through the combination of PGM’s, recycling, 2021 – Sandouville (Ni) 3 28 27 25 tailings re- Li Ni Co Mn Graphite treatment, battery 2021 – Keliber (LiOH) Lithium Nickel Cobalt Manganese metals and uraniu
Slide 17: Sibanye-Stillwater strives to operate responsibly in the way they do business
Sibanye-Stillwater strives to operate responsibly in the way they do business • Re-included in the FTSE Russell ESG index of The Good Neighbor Agreement, pioneered the JSE by Sibanye-Stillwater’s US PGM operations, • Annual Rand Water awards recently marked 20 years of environmental — Recognised as
Slide 18: Rhyolite Ridge Overview
RHYOLITE RIDGE OVERVIEW www.ioneer.com
Slide 19: Developing Highly Strategic U.S. Lithium Project
Developing Highly Strategic U.S. Lithium Project World Class Committed to Right Location Asset Sustainability • Strong project economics • Expected to be one of the • Poised to become a major resilient across a wide range first major lithium suppliers U.S supplier of critical of commodity prices in
Slide 20: ioneer is focused on the development of a highly strategic U.S. lithium project
ioneer is focused on the development of a highly strategic U.S. lithium project Capital Structure (As at 15 Sep 2021) Project Highlights SHARES OUTSTANDING 1.90B Tesla Gigafactory Imperium3 PERFORMANCE RIGHTS Target 100 GWh Target 15 GWh AND OPTIONS 69.3m OUTSTANDING LG Chem CASH BALANCE A$83.1m Tar
Slide 21: Rhyolite Ridge DFS economics
Annual Lithium After-tax NPV Unlevered After Hydroxide: (8% real): Tax IRR 22,000 ~US$1.3Bn ~21% Tonnes Years 4-26 Annual Boric Annual Revenue Annual EBITDA Acid: US$422M US$288M 174,400 (Split ~70% Li & 30% B) Tonnes Years 1-26 Note: The DFS base case lithium carbonate equivalent (LCE) prices avera
Slide 22: ioneer does not expect to require additional equity funding to reach production
Assuming shareholder approval for the Sibanye-Stillwater Placement, ioneer does not expect to require additional equity funding to reach Rhyolite Ridge production Project Debt Financing Debt • Sibanye-Stillwater direct funding less than or equal to 60% of the DFS estimated capital • ioneer will work
Slide 23: Key Milestones
Key Milestones Completed 2H21 1H22 2H22 2H24 ✓ DFS • Register of Notice • Construction ready • Anticipated • Mechanical of Intent (NOI) Record of completion ✓ Pilot Plant • Release equipment Decision (ROD) • Announce strategic fabrication • Commission plant ✓ Water Rights partner • Fully permitted •
Slide 24: www.ioneer.com
EPCM Evaporation and Evaporation and Crystallization Crystallization Acid Plant Material Handling Haulage System Automation Solutions Controls Mining Pilot Plant Spent Ore Environmental Leaching www.ioneer.com 24
Slide 25: Appendix: Summary of Transaction Terms & Key Agreements
APPENDIX: SUMMARY OF TRANSACTION TERMS & KEY AGREEMENTS www.ioneer.com
Slide 26: Summary of Transaction Terms
• ioneer will contribute the Project for a 50% interest in JVCo • Sibanye-Stillwater will provide the Commitment Amount of US$490 million in direct funding to the Project for a 50% interest in JVCo subject to the satisfaction of conditions precedent Partnership Structure • Sibanye-Stillwater will su
Slide 27: Steering Committees, Governance and Transfer Rights
• Both parties agree to establish a Marketing Committee, a Technical Committee and an ESG Committee which will Steering Committees meet on a prescribed and/or ad hoc basis Project Finance • Sibanye-Stillwater also commits to assist JVCo in obtaining favourable terms with respect to any reclamation b
Slide 28: Contacts
James D. Calaway / Matt Dempsey Jane Munday Bernard Rowe ioneer Ltd FTI Consulting FTI Consulting Executive Chairman / Investor & Media Relations Investor & Media Relations Managing Director (USA) (Australia) T: +1 713 818 1457 T: +1 202 316 9609 T: +61 488 400 248 T: +61 419 447 280 E: jcalaway@ion
Slide 29: Thank You
THANK YOU. Providing the materials for a sustainable & thriving planet. For more information please contact: info@ioneer.com www.ioneer.com