Renascor Resources Ltd · ASX:RNU
Renascor Resources — Investor Presentation (June 2019)
34 slides from Renascor Resources's investor presentation, Jun 20, 2019
Slide 1: Rapidly developing a world-class Australian graphite project
Investor Presentation, June 2019 David Christensen, Managing Director For personal use only Rapidly developing a world-class Australian graphite project
Slide 2: Forward Looking Statements
For personal use only Forward Looking Statements This Presentation may include statements that could be deemed "forward-looking" statements. Although Renascor Resources Limited (the "Company") believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,
Slide 3: Section 1: Overview
For personal use only Section 1: Overview 3
Slide 4: Renascor's Siviour Graphite Project
For personal use only Renascor’s Siviour Graphite Project A world class asset poised for production New supply Looming graphite supply gap projected due to lithium-ion battery needed growth Siviour is one of the world’s largest graphite resources World class Flat-lying orientation drives low O
Slide 5: Renascor Corporate Overview
For personal use only Renascor Corporate Overview Capital Structure Share Chart Shares on issue 1,153M 5.0 35.0 Performance rights 18M Volume Close Price Listed options 114.76M 4.5 30.0 Unlisted options 15M 4.0 Share price (19 June 2019) $0.022 25.0 Volume (M) 3.5 Market Cap (at $0.022/sh) $25.4M 3.
Slide 6: Section 2: The Graphite Market
For personal use only Section 2: The Graphite Market 6
Slide 7: Graphite Demand is Increasing
For personal use only Graphite Demand is Increasing Increased demand is being driven by accelerated use of graphite in lithium-ion batteries Graphite is a critical component in the supply of lithium-ion batteries (Source: Volkswagen Investor/Analyst Conference presentation dated 2 July 2018) Renasco
Slide 8: Graphite Supply and Demand Forecast
For personal use only Graphite Supply and Demand Forecast Large shortfalls are projected Demand is forecast to exceed supply by 2023 from 2025 – even after accounting for projected new supply Start of projected supply shortage New supply needed to prevent supply shortage (Source: Benchmark Mineral I
Slide 9: New Graphite Supply is Needed
For personal use only New Graphite Supply is Needed China dominates current supply, but market is restricted and unstable Increased domestic demand Graphite is becoming a strategically important mineral due in large part to its use in lithium-ion batteries Supply limitations Issues with product cons
Slide 10: Advantage of New Graphite Supply from Australia
For personal use only Advantage of New Graphite Supply from Australia In recent years, potential new supply has been dominated by large developments in East Africa Sovereign risk poses added challenge to securing development capital and offering secure, long- term supply Renascor offers competitive
Slide 11: Section 3: The Siviour Graphite Project
For personal use only Section 3: The Siviour Graphite Project 11
Slide 12: Siviour Project Overview
For personal use only Siviour Project Overview 83ktpa of graphite concentrates in Stage One(1) Location of Siviour: Production Target production start in 2021. Reserve & Mineral Resource: 87.4Mt at 7.5% TGC for 6.6Mt of contained graphite(2). Resource Ore Reserve: 45.2 Mt at 7.9% TGC for 3.6
Slide 13: Siviour Reserves and Resources
For personal use only Siviour Reserves and Resources Siviour is among the world’s largest high-grade flake graphite deposits One massive ore body, offering consistent supply of high-quality graphite Open along strike to the north and south, with the potential become a substantially larger Contained
Slide 14: Australian Graphite Resources
For personal use only Australian Graphite Resources The scale of the Siviour graphite resource is unique in Australia Australian Graphite Deposits – Contained Graphite (Measured + Indicated Resources) (Mt) Note: The data in the graph above are compiled based on publicly available information from gr
Slide 15: Near-Surface, Flat-Lying Ore Body
For personal use only Near-Surface, Flat-Lying Ore Body Siviour’s low OPEX* is due in large part to shallow, horizontal orientation of a single massive ore body that offers comparatively low mining costs * Renascor ASX announcement dated 3 May 2019, pp 3 and 19. Renascor Resources Ltd | ASX: RNU ren
Slide 16: Low OPEX
For personal use only Low OPEX Lowest quartile operating costs globally in mining friendly Australia Cash cost of production per tonne of product Note: The operating cost estimates in the graph above are compiled based on publicly available information from graphite development companies that are in
Slide 17: Metallurgy
For personal use only Metallurgy Metallurgical testing has established ability to produce high quality graphite products at low OPEX using conventional (non-chemical, non-thermal) flowsheet* Particle Size Flake Annual Microns Percentage Category Mesh Production (µm) Jumbo >300 +48 4% 3,050t 180 to -
Slide 18: Mine to Market
For personal use only Mine to Market Established infrastructure in coastal South Australia provides low-cost, low-risk logistics Project located 8km from major highway leading to established port 12km from main grid Land rights secured through purchase option Renascor Resources Ltd | ASX: RNU renasc
Slide 19: Mineral Lease
For personal use only Mineral Lease Mineral Lease granted Consistent with Mineral Lease Application (MLA) Extensive environmental review Three-year period of preparation and review of all potential environmental, social, economic and technical aspects of the Siviour Graphite Project Development on s
Slide 20: Strategic Engineering Partnership with Royal IHC
For personal use only Strategic Engineering Partnership with Royal IHC Landmark agreement with international Royal IHC Worldwide Presence EPC contractor, Royal IHC to accelerate development of Siviour $1 million committed by Royal IHC to undertake early project works, including metallurgical test wo
Slide 21: In Principle Support from Dutch Export Credit Agency
For personal use only In Principle Support from Dutch Export Credit Agency Letter of Interest (LOI) received for ECA cover from Dutch Export Credit Agency Atradius, the Government of the Netherlands official ECA Up to ~60% of initial project capex is expected to qualify for Dutch ECA cover ECA suppo
Slide 22: Development Summary
For personal use only Development Summary Renascor is working towards a staged-DFS Parameters(1) Stage-one Years 1 to 3 Stage-two expansion case Years 4 to 40 Stage-one production of 83ktpa which has 83ktpa 145ktpa (years 4 to 10) relatively low projected operating costs of Annual Production A$477/t
Slide 23: Offtake Strategy and Status
For personal use only Offtake Strategy and Status Aim is to negotiate offtake terms that support debt funding Signed a non-binding MOU in April 2018 to provide graphite concentrates to China’s Qingdao Chenyang Graphite (“Chenyang”) Chenyang is one of the largest graphite companies in the Qingdao are
Slide 24: Section 4: Advanced Manufacturing: Spherical Graphite
For personal use only Section 4: Advanced Manufacturing: Spherical Graphite 24
Slide 25: Downstream Production of Spherical Graphite
For personal use only Downstream Production of Spherical Graphite Siviour graphite concentrates can be upgraded to higher The graphite supply chain from mine to lithium-ion value spherical graphite battery anode Spherical graphite is manufactured from graphite produced Stage 1 – Graphite concentrate
Slide 26: Supply of Spherical Graphite Dominated by China
For personal use only Supply of Spherical Graphite Dominated by China China currently supply 100% of the natural flake graphite used in lithium ion battery anodes Non-Chinese battery suppliers are dependent on Chinese mines + Chinese spherical production for critical raw material Chinese supply unde
Slide 27: Spherical Graphite Prices are Increasing
For personal use only Spherical Graphite Prices are Increasing Increase in EV and battery storage penetration are driving increases in spherical graphite prices (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 27
Slide 28: Renascor's Spherical Graphite PFS Demonstrates Opportunity
Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More For personal use only Value from Siviour Spherical graphite PFS shows potential for valued- added production of spherical graphite Leverages off key comparative advantages of Siviour mine: low-cost and low-sovereign risk See R
Slide 29: Section 5: Conclusions and Next Steps
For personal use only Section 5: Conclusions and Next Steps 29
Slide 30: Re-rating Potential
For personal use only Re-rating Potential Renascor has quickly advanced the development of Siviour since its discovery in 2016 and has potential to continue to climb the value curve. Market capitalisation as of 18 June 2019 Renascor Resources Ltd | ASX: RNU renascor.com.au 30
Slide 31: Near-term Value Drivers
For personal use only Near-term Value Drivers Strong upcoming news flow expected to include: DFS; Siviour DFS expected to be completed next quarter. Offtake; With completion of PFS and dispatch of customer samples, potential for additional offtake developments in 2019. Regulatory; Mineral Lease gran
Slide 32: Project Timeline
For personal use only Project Timeline Renascor Resources Ltd | ASX: RNU renascor.com.au 32
Slide 33: Summary
For personal use only Summary Siviour is a new discovery of a world-class graphite deposit One massive ore body offers consistent high-quality supply Globally competitive: Low OPEX and CAPEX* Finance support from Dutch Export Credit Agency Mining-friendly Australia * Renascor ASX announcement dated
Slide 34: Renascor Resources Limited contact details
For personal use only Renascor Resources Limited 36 North Terrace Kent Town, South Australia 5067 Phone: + 61 8 8363 6989 Email: info@renascor.com.au Website: www.renascor.com.au ASX Code: RNU
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