Slide 1: Siviour Graphite Project: Battery Anode Material Study Presentation
Renascor Resources Siviour Graphite Project: Battery Anode Material Study Presentation 2 July 2020 ASX: RNU David Christensen, Managing Director
Slide 2: Forward Looking Statements
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, such statements are n
Slide 3: Renascor's battery anode material project in the graphite supply chain
Renascor’s battery anode material project in the graphite supply chain Renascor is developing a vertically integrated operation consisting of a mine and concentrator plus a downstream operation to produce Purified Spherical Graphite (PSG) for sale to anode manufacturers Renascor Resources Ltd | ASX:
Slide 4: Highlights
Highlights Integration of battery anode material manufacturing operation with Renascor’s Siviour Graphite Project provides path to capitalise on electric vehicle (EV) growth Paradigm-shifting event is starting to impact graphite Strong influence on downstream market for PSG. Siviour is uniquely posi
Slide 5: Section 1: Graphite Market
Section 1: Graphite Market 5 5
Slide 6: Global EV growth is creating a paradigm-shifting event for battery minerals
Global EV growth is creating a paradigm-shifting event for battery minerals Start of a global mega trend that will drive demand for minerals needed for lithium-ion batteries EV sales as share of total cars We are here (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renasco
Slide 7: Graphite is an essential part of the transition to lithium-ion batteries
Graphite is an essential part of the transition to lithium-ion batteries Increasing amounts of natural graphite will be needed to meet projected lithium-ion battery growth We are here (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 7
Slide 8: Graphite Concentrates are only starting to become a battery mineral
Graphite Concentrates are only starting to become a battery mineral Battery demand is growing at 19% annually (versus 2% for other uses) 2028 Battery demand Other demand 2023 758,000 2018 2,049,000 139,000 694,000 666,000 554,000 Current use of Graphite By 2023, battery demand is By 2028, battery sh
Slide 9: EV momentum is stronger in market for Purified Spherical Graphite
EV momentum is stronger in market for Purified Spherical Graphite PSG is used exclusively in lithium-ion battery applications and thus provides more direct exposure to growth in the EV sector Purified Spherical Graphite Demand SOUTH AUSTRALIA (Source: Benchmark Mineral Intelligence) Renascor Resourc
Slide 10: China currently produces 100% of natural Purified Spherical Graphite
China currently produces 100% of natural Purified Spherical Graphite Graphite Concentrate feedstock obtained both domestically and internationally before being converted to PSG and used in China or exported to Japan and South Korea Emerging Emerging Existing and emerging anode markets Supplier Suppl
Slide 11: Renascor is a secure alternative source of PSG for anode makers
Renascor is a secure alternative source of PSG for anode makers Renascor offers a viable alternative to Chinese PSG supply through the first in-country mine and PSG operation outside of China Emerging Emerging Existing and emerging anode markets Renascor to mine and process Graphite Concentrates bef
Slide 12: Section 2: Battery Anode Material Study
Section 2: Battery Anode Material Study 12 12
Slide 13: Renascor's integrated battery anode material manufacturing operation
Renascor’s integrated battery anode material manufacturing operation Renascor is planning to be the first integrated, in-country mine and PSG operation outside of China Emerging SOUTH AUSTRALIA Emerging Anode customers Renascor Resources Ltd | ASX: RNU renascor.com.au 13
Slide 14: PSG sourced from Renascor's Siviour Graphite Deposit
PSG sourced from Renascor’s Siviour Graphite Deposit Siviour is unique in both its near-surface, flat-lying orientation and its scale as one of the world’s largest graphite Resources Mineral Resource Estimate Resources TGC Contained Category (Mt) (%) Graphite (Mt) Siviour’s shallow, horizontal orien
Slide 15: Graphite Concentrate feedstock at industry leading costs
Graphite Concentrate feedstock at industry leading costs Graphite Concentrate DFS confirms lowest quartile OPEX (Source: Benchmark Mineral Intelligence. See Renascor ASX announcement dated 11 November 2017, p 27) Renascor Resources Ltd | ASX: RNU renascor.com.au 15
Slide 16: Comparative advantage in PSG production
Comparative advantage in PSG production Renascor’s PSG production benefits from obtaining Siviour Graphite Concentrate feedstock at cost of production, rather than market price. This price difference has an exaggerated impact on PSG operating costs because only half of the Graphite Concentrates used
Slide 17: Battery Anode Material Study financial results
Battery Anode Material Study financial results Low OPEX drives high margins and strong cash generation Average annual LOM production of PSG 28,000t Life of mine/project 40 years Start-up capital cost of mine and concentrator A$114m US$79m Start-up capital cost of battery anode material operation A$9
Slide 18: Eco-friendly manufacturing process
Eco-friendly manufacturing process Two-step milling and purification process, using Siviour Graphite Concentrate as raw material feedstock Milling. Micronisation and spheronisation using conventional cascading milling equipment. Purification. China generally uses hydrofluoric acid. Renascor has adop
Slide 19: Commitment to technical development
Commitment to technical development Three years of intensive testing and process design in Australia, China and Germany to develop sustainable and commercially viable process Pilot plant micronisation and spheronisation at cascading mill manufacturer to achieve target yields of 50% and marketable si
Slide 20: Government funding support
Government funding support Strong government support expected to assist with on-going offtake discussions Letter of Support received for ECA cover from Export Finance Australia, Australia’s official ECA, for integrated mine and PSG operation Additional support for ECA cover from Dutch Export Credit
Slide 21: Timeline to production
Timeline to production Offtake commitment is key variable necessary to advance to a final investment decision. Results of the Battery Anode Material Study, together with customer sample material, are expected to assist on-going offtake discussions Renascor Resources Ltd | ASX: RNU renascor.com.au 21
Slide 22: Next steps
Next steps Strong news flow expected for second half of 2020 Offtake and finance discussions with potential end-users of Siviour graphite products (including both PSG and Graphite Concentrates) Preparation of additional customer samples of Siviour PSG Advanced mineral processing tests, including opt
Slide 23: Renascor Resources Limited
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