Core Lithium Ltd · ASX:CXO
Core Lithium — Diggers and Dealers 2019
28 slides from Core Lithium's conference presentation, Aug 5, 2019
Slide 1: Diggers and Dealers Presentation August 2019
For personal use only Diggers and Dealers Presentation August 2019
Slide 2: Important and Cautionary Notes
Important and Cautionary Notes For personal use only The information in this release that relates to metallurgy and metallurgical test work has been reviewed by Mr Noel O’Brien, The mineral tenements of the Company as described in this presentation are at various stages of exploration, and potential
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes For personal use only Competent Person Statements: ‘expect’,’intend’,’may’,’would’,’could’,’should’,’scheduled’,’will’,’plan’,’forecast’,’evolve’ and similar expressions. Persons The Mineral Resources and Ore Reserves underpinning the Production Target have been prepar
Slide 4: Australia's Next Lithium Producer
Australia’s Next Lithium Producer For personal use only Rapidly growing world demand needs Core’s low capex, low opex, low risk, high quality lithium • New producers in Australia have experienced high operating costs and difficulty sustaining customer quality • As a result new producers have cancell
Slide 5: Why is more spodumene needed?
Why is more spodumene needed ? For personal use only Medium and Long Term Supply/Demand Dynamics • Electric Vehicle v Internal Combustion Engine price parity by 2022 – inflexion point for extraordinary demand growth (UBS Data). • Global EV sales growth of 50% per annum. • Mainstream car manufacturer
Slide 6: Why is Core's high-quality lithium needed?
Why is Core’s high-quality lithium needed? For personal use only • Current new raw supply meeting volume needs in short term • But, • New producers in Australia have experienced high operating costs and difficulty sustaining customer quality • High Capex flotation process not meeting expected recove
Slide 7: Finniss Project Spodumene Concentrate: Core's Supply Chain Success Factors
Finniss Project Spodumene Concentrate: For personal use only Core’s Supply Chain Success Factors • Core’s Finniss Lithium Project meets the markets needs because of : • Lower Capex • Lower Transport and Operating Cost • Lower Technical Risk • High Quality / Lower Iron Lithium Concentrate • Higher Ma
Slide 8: Corporate Information
Corporate Information For personal use only Share Price Performance Last Twelve Months Capital Structure (as at 31-Jul-19) $0.07 20m Share Price ~A$0.045 $0.06 Shares on Issue 788.28M $0.05 15m Market Capitalisation A$35.5M $0.04 10m Options and Rights Unlisted 28.53M $0.03 Cash (30 June 19 + LRC ro
Slide 9: DFS Financial Highlights
DFS Financial Highlights For personal use only Definitive Feasibility Study Highlights Management Case Highlights • Confirms Finniss Lithium Project as robust, high-margin low- capex, lithium project Strong cashflow Rapid payback • DFS confirms low processing, mine, haulage and port costs High cashf
Slide 10: Prime Location and Valuable Infrastructure Available
Prime Location and For personal use only Valuable Infrastructure Available Aerial view of Darwin, the Port of Darwin and the Grants Lithium development Excellent Location and Infrastructure Advantages 10
Slide 11: Simple, Low Risk, DMS Process Produces High Quality Spodumene Concentrate
Simple, Low Risk, DMS Process Produces For personal use only High Quality Spodumene Concentrate High Quality Spodumene: Simple Dense Media Separation (DMS) Processing: ◼ 5.5-6.0% Li2O concentrate at +70% net recoveries • Low Fe <0.7% • Low Mica <1% • Low K2O <1% • Coarse product <1% <0.5mm, max 10mm
Slide 12: Significant Exploration Upside
Significant Exploration Upside For personal use only • Discoveries - Core’s exploration has discovered some of the highest-grade lithium in Australia, capable of producing quality spodumene concentrate • Numerous high-grade lithium pegmatite targets identified for additional resources from 500km2 co
Slide 13: Why Core is looking to continue to expand resources and reserves?
Why Core is looking to continue to expand resources and reserves ? For personal use only The recently completed Definitive Feasibility Study (DFS) clearly showed that additional mine life has a significant upside impact on the economics of Finniss. PROJECT VALUE DFS DFS + 2yrs DFS + 4yrs 13
Slide 14: Regional Drilling Results
Regional Drilling Results Prospect Hole_ID Summary_Intercept For personal use only Ah Hoys FRC074 12m @ 1.19% Li2O from 67m • CXO has RC tested 30 pegmatites to date: Ah Hoys SE FRC014 19m @ 0.68% Li2O from 89m BP31 FRC185 13m @ 0.74% Li2O from 109m Far West central FRC143 14m @ 1.35% Li2O from 77m
Slide 15: Offtake and Prepayment Agreements
Offtake and Prepayment Agreements For personal use only Offtake, Investment and Product Prepayment with some of China’s Largest Lithium Converters Core has established binding offtake and prepayment Key Binding Pre Payment and Offtake Terms agreement with Yahua and is also in the process of negotiat
Slide 16: Non-Binding Termsheet on Fine Lithium Product Adds to Finniss Revenue
Non-Binding Termsheet on Fine Lithium Product For personal use only Adds to Finniss Revenue Non-Binding Termsheet signed for sale of up to 200,000tpa of Fine Lithium • Indicative pricing of between $US55/t and US$65/t of FL • 200,000 to 250,000tpa FL forecast to be produced by Core as a by-product (
Slide 17: Darwin Port Heads of Agreement
Darwin Port For personal use only Heads of Agreement Core has agreement with Darwin Port to ship 250,000tpa of spodumene concentrate Darwin Port is Australia’s nearest port to China East Arm Wharf facilities at Darwin Port are well suited to handle potential future production from Core’s lithium pro
Slide 18: High Quality Project and Execution Team
High Quality Project and Execution Team For personal use only Key Service Providers Description Project Contribution ▪ Primero is a multi-disciplinary engineering group who specialise in the design, construction and commissioning of projects ▪ EPC and FEED contractor ▪ Offering services to the miner
Slide 19: Project Approvals
Project Approvals For personal use only Key Milestones and Highlights January 2019 Mineral Lease granted for Lithium Mining and Processing April 2019 Aboriginal Areas Protection Authority (AAPA) granted June 2019 NT EPA completes Assessment Process June 2019 Formal submission of Mine Management Plan
Slide 20: Moving Toward Production In 2020
Moving Toward Production In 2020 For personal use only 2019 2020 2021/22 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CY Mining Lease Feasibility Study Offtake and Customer Finance Environmental and Approvals FID Mining and Construction Stage 1 - Commissioning and Production Ramp-up Stage 2 - Pote
Slide 21: ASX Lithium Sector Comparison
ASX Lithium Sector Comparison For personal use only 3,168 Source: ASX Announcements and Company Reports 1 Costs & sales price for Galaxy, Altura, Pilbara &Alita from Jun-19 Quarter Reports. Production, costs, sales price for Core (from Apr-19 DFS), Liontown (from Jan-19 Scoping Study), Kidman (from
Slide 22: Background Slides
For personal use only Background Slides
Slide 23: Core Board of Directors
Core Board of Directors For personal use only Photo Name & Position Experience ◼ Stephen has 25 years’ experience as a geologist and as an executive in both the mining industry in Australia and internationally ◼ He has applied his Honours Degree in Geology and MBA as the founding Managing Director o
Slide 24: Proven High-Quality Management Team
Proven High-Quality Management Team For personal use only Stephen Biggins Managing Director ◼ Stephen has 25 years’ experience as a geologist and as an executive in both the mining industry in Australia and internationally ◼ He has applied his Honours Degree in Geology and MBA as the founding Managi
Slide 25: DFS: Low Capital Intensity
DFS: Low Capital Intensity For personal use only The Finniss Lithium Project is among the least capital intensive lithium projects in Australia. Total Start-Up and Life of Mine Capital Costs A$m % DMS Plant DMS Plant 33.8 33.1% 1.5% Mobilisation 2.8 2.7% 2.0% Mobilisation Site Establishment and Set
Slide 26: DFS: C1 Operating Cost FOB Estimates
DFS: C1 Operating Cost FOB Estimates For personal use only Reserve Case C1 Operating Costs FOB1 US$3.0/t A$/t US$/t2 US$5.3/t US$6.0/t Mining Costs - Contractor Mining Costs - Contractor 270.3 189.2 Mining Costs - Owner 24.5 17.2 US$79.4/t Mining Costs - Owner Processing 113.4 79.4 Hauling 8.5 6.0 P
Slide 27: Finniss Lithium Project Reserves and Resources
Finniss Lithium Project Reserves and Resources JORC (2012) Resource Table1 For personal use only Resources Ore Grade Contained Deposit Classification Mt LiO2 % LiO2 t Measured 1.09 1.48% 16,100 Indicated 0.82 1.54% 12,600 Grants Inferred 0.98 1.43% 14,000 Total 2.89 1.48% 42,700 Measured - - - Indic
Slide 28: For more information
For personal use only For more information: Core Lithium Stephen Biggins: +618 8317 1700 For broker and media enquiries: Cannings Purple Warrick Hazeldine: +61 417 944 616 Andrew Rowell: +61 400 466 226