Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (May 2017)
61 slides from Neometals's investor presentation, May 15, 2017
Slide 1: The Evolution of Lithium
For personal use only The Evolution of Lithium ™ Investor Presentation 15 May 2017 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: Corporate
3 For personal use only Corporate + = 3
Slide 4: Human & Financial Resources
Human & Financial Resources For personal use only ASX CODE: NMT OTC:RDRUY 18 MONTH SHARE PRICE Last close (12‐5‐2017) A$ 0.265 60 Shares on issue M 560 50 Market capitalisation A$M 148 40 30 Net Cash (at 31‐3‐2017) A$M 53.5 20 Receivables/Investments A$M 16.5 10 0 DIRECTORS/MANAGEMENT Jan-16 Apr-16
Slide 5: Operating structure
Operating structure For personal use only Neometals Ltd (ASX:NMT) SALE PROCESS LITHIUM TITANIUM 13.8% 70% 100% 100% 100% 43.1% Reed Reed Australian Mineral Advanced Urban Mining Alphamet Industrial Management Titanium Resources Ltd Minerals Materials Pty Ltd Pty Ltd Pty Ltd Pty Ltd Pty Ltd Ganfeng 2
Slide 6: For personal use only
6 For personal use only + = + =
Slide 7: Investment Thematic – Conservative Exposure to Energy Storage Revolution
Investment Thematic – Conservative Exposure to Energy Storage Revolution For personal use only 6X Growth 7
Slide 8: Leading Cathode Producer – X Growth
Leading Cathode Producer – 6 X Growth For personal use only Source: Umicore May 2017 8
Slide 9: Focus on Li-Ion Battery Commodities
Focus on Li-Ion Battery Commodities For personal use only 9
Slide 10: Our Positions in the Supply Chain
Our Positions in the Supply Chain For personal use only 10
Slide 11: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug ’16 A$5M/5% on market buyback 11
Slide 12: Tactical Plan - FY17
Tactical Plan - FY17 For personal use only • Negotiated increased output and offtake pricing. Running sale process for stake in Mt Marion • Advancing local LiOH project in parallel with equipment vendor testwork, offtake and partner selection processes. • Fast-track evaluation of proprietary recycli
Slide 13: For personal use only
For personal use only 13 + = + =
Slide 14: Evolution of our Lithium Business
Evolution of our Lithium Business For personal use only • Commercialise Mt Marion • Evaluating local Conventional Downstream Processing • Co-developed, Evaluated, Patented New ELi® Process • Co-developed, Evaluated, Patent Pending ELi ® for brines • Testing and Evaluating Lithium-Ion Battery
Slide 15: Mt Marion Lithium Operation
For personal use only Mt Marion Lithium Operation Sale process underway for remaining 13.8% equity + = 15
Slide 16: World's largest lithium concentrator
World’s largest lithium concentrator For personal use only + = 16
Slide 17: Globally Significant Operation – 400kt concentrates
Globally Significant Operation – 400kt concentrates (~50kt LCE) For personal use only + = 17
Slide 18: Outstanding Offtake Agreement
Outstanding Offtake Agreement For personal use only China’s largest, most diverse lithium producer Life-of-Mine, Take-or-pay Offtake Agreement From 1 July moving to transparent Lithium Carbonate/Lithium Hydroxide linked formula, with floor price protection Letter of Credit (100% payment on i
Slide 19: Downstream processing WA-based LiOH Project
For personal use only Downstream processing WA-based LiOH Project
Slide 20: Lithium users want LiOH/Li2CO3 from spodumene converted outside China
Lithium users want LiOH/Li2CO3 from spodumene converted outside China For personal use only
Slide 21: Commercialisation Plan
Commercialisation Plan For personal use only • Locate plant in WA to minimise transport, 7t spodumene concentrate needed for 1t of Lithium Hydroxide • Utilise local spodumene (Share of Mt Marion or Third Party), natural gas, reagents and staff • Use Sulfate/Caustic Flowsheet from leading Lithium equ
Slide 22: Potential Site Evaluation
Potential Site Evaluation For personal use only • Hatch benchmarking Capex/Opex for 3 locations: Kalgoorlie, Kwinana and Port Hedland • NMT has 70% beneficial interest in PLA45/3003 which covers the Pilgangoora Tin-Tantalum Plant and Workshop, and historic tailings • Adjacent tenure contains Pilbara
Slide 23: Downstream processing: ELi Process
For personal use only Downstream processing ELi Process™ Neometals 70% Mineral Resources Ltd 30% + =
Slide 24: Competitive advantage from Patented Technology for production of LiOH
Competitive advantage from Patented Technology for production of LiOH For personal use only + = 24
Slide 25: ELi potentially levels playing field for western hard rock developers
ELi potentially levels playing field for western hard rock developers For personal use only Business model is to deploy/co-invest in partnership with and/or licence to integrated hard- rock developers in return for equity/royalty stream. + = 25
Slide 26: ELi potentially slashes brine-based LiOH opex vs conventional causticising
ELi potentially slashes brine-based LiOH opex vs conventional causticising For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 26
Slide 27: Downstream processing: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP, Exclusive licence + =
Slide 28: Lithium Battery Recycling Strategy
Lithium Battery Recycling Strategy Co For personal use only Exploiting cost advantage in recovery of Cobalt from Lithium Cobalt Batteries in Consumer Electronics to develop a low-risk, long-life, high-margin operation with strong partners. Estimated < 5% Recyled + = 28
Slide 29: Closing the loop: Recycle and re-use
Closing the loop:Recycle and re-use Co For personal use only + = 29
Slide 30: Initial test work and Scoping Study on Consumer Electric Batteries
Initial test work and Scoping Study Co on Consumer Electric Batteries - LCO For personal use only + = 30
Slide 31: Scoping Study Results
Scoping Study Results Co For personal use only (± 30% accuracy) Operating Costs US$4.45/lb Co (US$10k/t) Spot price US$25/lb Co (US$55k/t) Capex US$4.5M Proceeding to pilot plant – Q3 ‘17 Can be constructed and commissioned in 42 weeks + = 31
Slide 32: Constructing Pilot Plant to process Typical EV Battery Cells
Constructing Pilot Plant to process Co Typical EV Battery Cells - NMC For personal use only + = 32
Slide 33: Project Development Phasing
Project Development Phasing Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 33
Slide 34: Commercial Plant Schematic
Commercial Plant Schematic Co For personal use only Incoming Materials Feed preparation and Purification and Finished digestion Crystallisation Product Residue Disposal Reagent Storage Plant footprint approx. 30m x 50m + = 34
Slide 35: Commercialisation Plan
Commercialisation Plan Co For personal use only + = 35
Slide 36: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 36
Slide 37: Strong demand/supply fundamentals
Strong demand/supply fundamentals For personal use only The titanium pigment industry is 10x as large as the lithium compound industry. Growth = GDP Globally declining grades and quality Cost push price inflation + = 37
Slide 38: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 38 Sources: Company Reports
Slide 39: Globally Significant Ti Resource
Globally Significant Ti Resource For personal use only + = 39
Slide 40: Neomet Process: Product Efficiency
Neomet Process: 3 Product Efficiency For personal use only Strong EPC & OEM Alliance + = 40
Slide 41: Neomet Process: Patented, low-cost
Neomet Process: Patented, low-cost For personal use only + = 41
Slide 42: Why Titanium Hydrolysate?
Why Titanium Hydrolysate ? For personal use only
Slide 43: Evaluating potential for Direct Shipping Ore and Toll-concentration in China
Evaluating potential for Direct Shipping Ore and Toll-concentration in China For personal use only + = 43
Slide 44: Potential Fast-Track Configurations
Potential Fast-Track Configurations For personal use only Direct Ship Concentrate Barrambie Geraldton Barrambie WA – Toll Concentrator China - China - Toll China - China Geraldton Neomet Concentrator Neomet Ti Pigment Ti Pigment + = 44
Slide 45: Commercialisation Plan
Commercialisation Plan For personal use only Met Sample Pilot Scale Pilot Scale DSO/Toll Drilling and Beneficiation Hydromet Concentrate/ Updated Test work Test work Offtake and/or Pre-feasibility for DSO for Ti (OH)4 Ti (OH)4 JV Study Evaluation Evaluation* Decisions* Q2 2017 Q3 2017 Q4 2017 Q1 201
Slide 46: Research & Development
Research & Development For personal use only • Lithium-Titanate (LTO) has surface area of +100m2/g vs 3m2/g for Carbon = superfast charging = minutes not hours • The Lithium-titanate nanocrystals are superstrong/stable/safe with effective lives of +40 years of daily cycling + = 46
Slide 47: Research & Development
Research & Development For personal use only • We think Lithium-Titanate (LTO) will become the anode of choice for EV and conventional stop-start engines. Apparently so to do Porsche and Johnson Controls/Toshiba. + = 47
Slide 48: Research & Development Plan
Research & Development Plan For personal use only Cycle testing Produce Cycle testing Produced in coin-cell LTO using in larger LTO at Li-ion battery Barrambie/ format (18650) CSIRO in USA Mt Marion Li-ion battery* product* Q2 2017 Q2 2017 Q3 2017 Q4 2017 (*) Subject to Board Approval + = 48
Slide 49: Technology Licensing
For personal use only Technology Licensing Neomet Process Neometals - 25% of royalty revenues + =
Slide 50: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, used commercially for treating refractory copper-gold concentrates, adapted for titanium concentrates. + = 50
Slide 51: Commercialising technology with leading industry partners
Commercialising technology with leading industry partners For personal use only + = 51
Slide 52: Project Development Phasing
Project Development Phasing For personal use only Neometals Testing Facility in Montreal Laboratory scale set up (above) Pilot scale up (below) + = 52
Slide 53: Investment Proposition
For personal use only 53 Investment Proposition + = 53
Slide 54: Lithium: Cash, cashflow & growth options
Lithium: Cash, cashflow & growth options For personal use only 03 02 Potential to downstream 01 process LiOH. ~A$53.5M Cash plus ~A$16.5M in receivables and + Cashflows from 13.8% Mt Marion Or Potential Sale + Licence ELi to brine/hard rock producers. Li-Ion Battery investments Recycling Project +
Slide 55: Titanium: A growth story for 2018
Titanium : A growth story for 2018 For personal use only 03 Demonstrate 02 DSO/concentrate 01 & Ti(OH)4 Quality. Demonstrated Technical + Demonstrated Economic + Obtain Strong Partners Feasibility Viability to Commercialise + = 55
Slide 56: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 01 02 Obtained Strong Partners for + Commenced third party testing + Obtain Strong Partners to Commercialise Neomet Process -Neomet Process ELi/LiB Recycling + = 56
Slide 57: Thank you
For personal use only Thank you www.neometals.com.au + = 57
Slide 58: Mineral Resource Estimate
Mineral Resource Estimate Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 Inferred
Slide 59: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only FS Life of Plant (LOP) 20 years Pre-production Capital cost US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 82 million Pre-tax Internal Rate of Return 51% Pre-tax NPV (12% real discount rate) US$ 481 million Payback of capital
Slide 60: Mineral Resource Estimate
Mineral Resource Estimate Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transition 8.7
Slide 61: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost [1 A$ 549 million (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)