Nemaska Lithium — Investor Presentation (February 2015)
26 slides from Nemaska Lithium's investor presentation, February 2015
Slide 1: Nemaska Lithium Corporate Presentation
Nemaska Lithium Corporate Presentation February 2015 Guy Bourassa President and CEO
Slide 2: Forward-looking Statements
Forward-looking Statements 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. Such forward-looking statements are subject to risks and uncertaint
Slide 3: Introducing the Best Lithium Hard Rock Project Globally
Introducing the Best Lithium Hard Rock Project Globally 3
Slide 4: Nemaska Lithium Overview
Nemaska Lithium Overview • Advanced lithium company with high-grade mining assets and patent pending processes to produce high purity lithium hydroxide and lithium carbonate using electrolysis. • Key asset: Whabouchi – a world class lithium deposit – North America’s richest hard rock lithium deposit
Slide 5: Nemaska Lithium Achieving Milestones
Nemaska Lithium Achieving Milestones Defines a World Class Deposit First NI 43-101 Compliant Resource Calculation in 2010, updated in 2011, updated in 2012 and 2014 Produces High Quality Product From Metallurgical Pilot Tests Produces 6% spodumene concentrate from Whabouchi in 2010 Produce
Slide 6: Nemaska Lithium Upcoming Milestones
Nemaska Lithium Upcoming Milestones • Achieve Market Penetration – Build a Phase 1 plant to: • Shorten time to market with product by producing lithium hydroxide and carbonate samples • Engage customers with product in advance of building the mine and commercial hydromet plant • Customer evaluation
Slide 7: Very Good Location and Jurisdiction
Very Good Location and Jurisdiction • Top ranked mining jurisdiction – Safe, Secure Location – Supportive Government that funds the exploration to development • Established infrastructure in place at mine site: – Affordable and available power – Knowledgeable workforce – Established lodging • Mine a
Slide 8: Excellent Infrastructure at Mine Site
Excellent Infrastructure at Mine Site 8
Slide 9: Minimal Environmental Impact - 2.2 to 1 Strip Ratio
Minimal Environmental Impact - 2.2 to 1 Strip Ratio Electricity Line 9
Slide 10: Grade is KING + Low levels of Mica, Sodium and Potassium
Grade is KING + Low levels of Mica, Sodium and Potassium Reserves Resources Category Tonnage (Mt)* Li2O (%) Category Tonnage (Mt)* Li2O (%) Open pit Proven 11.7 1.58 Measured 12.998 1.60 Probable 8.3 1.46 Indicated 14.993 1.54 Proven and probable 20.0 1.53 M+I 27.991 1.57 Underground Inferred 4.686
Slide 11: Mine Expansion Potential
Mine Expansion Potential • Optimal open Pit Design • Underground Mine expansion potential • 26 Year initial Mine Life • Competitive with all other spodumene producers 11
Slide 12: Valleyfield Strategic Location
Valleyfield Strategic Location • The hydromet plant located in Salaberry-de-Valleyfield, QC Perron Industrial and Port Park • Site selected for its excellent infrastructure: – serviced by two railway systems for both Canada and the USA – access to major sea port – pool of skilled workers from the Mo
Slide 13: Receive and Ship to Anywhere in the World
Receive and Ship to Anywhere in the World 13
Slide 14: Low Costs, Highest Quality
Low Costs, Highest Quality C$3,450/t US$3,105/t Remove Remove Remove impurities Lithium Fe, Al, Si, to ppb Hydroxide Ca, Mg Cu levels Monohydrate Lithium Primary Secondary Lithium Ion Membrane Sulfate Impurity Impurity Hydroxide Exchange Electrolysis Solution Removal Removal Solution C$4,190/t $US3,
Slide 15: Feasibility Study Highlights
Feasibility Study Highlights Expected Mine Life and pay back period 26 years with 3.7 years pay back period Life of Mine Revenue $6.9 Billion (average of $267M/yr for 26 yr) Cash Flow $3.4 Billion net of CAPEX (average of $151M/yr before initial CAPEX) Pre-Tax After tax NPV $924M 8% Discount $580M 8
Slide 16: Why Lithium Hydroxide?
Why Lithium Hydroxide ? 16
Slide 17: Impact of Tesla Gigafactory
Impact of Tesla Gigafactory (first of..) 17
Slide 18: EV Battery Pack Trends
EV Battery Pack Trends1 » Tesla Model S » Chevrolet Volt – 60 kWh – 16 kWh – Nickel cobalt aluminum (NCA) – LMO by LG Chem 18650 cells by Panasonic – Uses lithium carbonate/hydroxide – Uses lithium hydroxide – Estimated cost of cells: $9,600 – Estimated cost of cells: $25,000 – Estimated cost of pac
Slide 19: Few Newcomers & Less Capacity = Coming Shortage
Few Newcomers & Less Capacity = Coming Shortage SignumBox estimates adjusted by Nemaska to reflect expected lesser or delayed capacity by Newcomers and overstated Chinese Capacity for battery grade Lithium Hydroxide 19
Slide 20: Next Steps – Phase 1 Plant
Next Steps – Phase 1 Plant • Phase 1 plant (500 t/y lithium hydroxide and lithium carbonate) is designed be a module of the larger commercial hydromet plant – Off-take agreement with Clariant Canada Inc. for the sale of lithium hydroxide, including collaboration for regeneration of lithium sulfate r
Slide 21: Financing Options Mine and Hydromet Plant
Financing Options Mine and Hydromet Plant • Excellent NPV, IRR and payback period for this project • Currently in discussions with large end users looking to secure long term supply agreements – With FS results out we are in a position to further these discussions • Will contemplate debt and equity
Slide 22: Current Capital Structure (February 27, 2015)
Current Capital Structure (February 27, 2015) Shares outstanding 191 596 104 Warrants and options Options (average price $0.29 8 831 075 Warrants (average price $0.24) 41 911 155 Fully diluted 242 338 334 Distribution on a fully diluted basis Management ≈12 % Tianqi ≈8 % Institutional investors ≈30
Slide 23: Management and Board of Directors
Management and Board of Directors Guy Bourassa, President and CEO Mr. Bourassa is President and CEO since Nemaska’s inception in 2008. He brings more than 30 years of experience in the mining industry to this role. Among other things he was instrumental in identifying and negotiating the acquisition
Slide 24: Management and Board of Directors
Management and Board of Directors Paul-Henri Couture, Director Mr. Paul-Henri Couture has over 35 years of experience as a financial management and investment professional. He has held senior positions at the Caisse de dépôt and placement du Québec and at Sentient Asset Management Canada. During his
Slide 25: Conclusion – Why Nemaska
Conclusion – Why Nemaska Emerging leader in growing high value market segment - lithium hydroxide North America’s richest deposit, 2nd richest and largest in the world State of the art processes of producing lithium hydroxide and lithium carbonate - leading advantage over peers Production co
Slide 26: Thank you!
Thank you! Wanda Cutler, Investor Relations wanda.cutler@nemaskalithium.com www.nemaskalithium.com TSX-V NMX
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