Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Market Eye 'Meet the CEO' webinar 2022
28 slides from Sunrise Energy Metals's conference presentation, May 12, 2022
Slide 1: Media Release
Media Release 12 May 2022 Sunrise Energy Metals Limited to present at Market Eye’s ‘Meet the CEO’ webinar Sunrise Energy Metals Limited (ASX: SRL) advises that CEO and Managing Director, Mr Sam Riggall, will be presenting at Market Eye’s virtual ‘Meet the CEO’ conference on Wednesday, 18 May 2022. A
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this news release may constitute “forward-looking statements or “forward- looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual r
Slide 3: Innovation in Battery Metals
Innovation in Battery Metals Sam Riggall – CEO & Managing Director May 2022
Slide 4: Cautionary statement
Cautionary statement Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, pe
Slide 5: Our Mission
Our Mission Delivering better solutions for a decarbonising planet 3
Slide 6: The Sunrise Project
The Sunrise Project Australia’s most advanced battery materials project – over A$250m invested to date and all key permits in place Fully integrated from ore to battery-grade sulphate Runs on 100% renewable power and manages waste responsibly First quartile C1 cash operating costs Options to incorpo
Slide 7: Development-ready
Development-ready Sunrise • Location: 350km west of Sydney in an Ni-Co-Sc established mining district deposit • Construction-ready: A$250M invested and all key permits and land secured • Extensive test work: piloting and hydromet test work completed, significantly de-risking the flowsheet • Infrastr
Slide 8: An unusual yet highly valuable ore body
An unusual yet highly valuable ore body Cobalt : Nickel Ratio in Nickel Hydromet Operations 0.250 • The Sunrise ore body is far 0.200 richer in cobalt than most lateritic ore bodies • It contains lower levels of 0.150 clay materials which improves handling properties and reduces 0.100 acid consumpti
Slide 9: Project economics
Project economics Strong Annual Production1 Robust Economics Rapid Payback Nickel: 21.3 ktpa NPV8: US$1.2 billion 5.1 years Cobalt: 4.4 ktpa IRR: 15.4% Exceptional Cash Flow Low Cash Cost Long Mine Life LOM EBITDA: US$10.8 billion Negative US$0.80/lb Ni after 50-year operation supported by Avg FCF (
Slide 10: Financing plan
Financing plan The large resource and strong economics supports a conventional project financing approach Four leading global banks have been appointed to arrange a project debt facility, targeting Bank debt ~50% of the project’s funding requirement from commercial debt Letter of support from Export
Slide 11: Russia has had an impact, but …
Russia has had an impact, but … • The Ukraine War has forced a global reassessment of supply chain risk, especially for nickel • Russia accounts for ~7% of world nickel production but ~20% of Class 1 nickel • So far Russian nickel remains unsanctioned 9
Slide 12: … supply chains were already precarious
… supply chains were already precarious Reputational Risk Operational Risk Over 50% of worlds nickel is from Indonesia, China and Russia 2020 2030 RoW China 24% China 20% 21% RoW 32% Canada 4% Australia 3% 22% Russia 3%4% 6% Japan Canada 6% Indonesia 44% 5% 5% Indonesia Australia Russia Japan Cobalt
Slide 13: Despite these supply risks, OEMs are investing heavily
Despite these supply risks, OEMs are investing heavily Forecast US EV Battery Capacity Others Lordstown (OH), 30GWh (2022) Glendale I (KY), 43GWh (2025) SKBA (GA), 21GWh (2022) Spring Hills (TN), 30GWh (2023) Storey Cty (NV), 35GWh (2016) Cell plants Lansing (MI), 30GWh (2025) Glendale II (KY), 43GW
Slide 14: Electrification makes vertical integration inevitable
Electrification makes vertical integration inevitable • We have been here before • Ownership of metal remains the only way to hedge both supply and price risk 12
Slide 15: A nickel target of 10 is possible
A nickel target of 10 is possible Carbon intensity of nickel production • Key design features of the Sunrise Project include: (kg CO2/Kg Nickel in sulphate) ✓ 100% renewable power for mine and processing plant Nickel Pig Iron (EAF) ✓ Water re-use from on-site water treatment facilitates Nickel Pig I
Slide 16: Why is nickel important?
Why is nickel important? Energy intensity (MJ/kg of contained metal) 700 • For nickel, different 592 production processes and 600 different products have 500 widely different emissions outcomes 400 324 • China’s plan to convert 300 ferronickel and/or nickel 236 pig iron to nickel sulphate 211 200 do
Slide 17: Scandium – the forgotten metal
Scandium – the forgotten metal • Sunrise collaborates with several industrial partners, across many industries Terran 1 3D-printed rocket Courtesy of Relativity Space • Sunrise will deliver a dependable, low-cost supply chain for both defense-related applications and emerging communications technolo
Slide 18: Why Sunrise?
Why Sunrise? Exposure to large • Growing demands for decarbonisation are leading to increased demand for batteries growing mega-trend • EV penetration set to grow 10x from 4% in 2020 to over 25% by 2030 • Other applications such as grid-scale energy storage will also provide strong demand growth The
Slide 19: Appendix
Appendix ° sunrise energy metals
Slide 20: Corporate snapshot
Corporate snapshot Sunrise Energy Metals Ltd Major shareholders ASX Code ASX:SRL OTCQX Code OTCQX:CTEQF 13.5% Shares on Issue 90.1M Robert Friedland Last Share Price (at 9 May 2022) A$3.12 11.8% Pengxin Mining Market Capitalisation A$281M 7.2% Fidelity Management & Research Cash (as at 31 March 2022
Slide 21: Electrification is a growing trend
Electrification is a growing trend EV Penetration to grow significantly1 Forecast Nickel Demand Growth1 Li Battery Demand Non-Battery Demand 80% 5000 4000 60% ktpa 3000 40% 2000 20% 1000 0% 0 2020 2025 2030 2035 2040 2020 2030 (f) EV's are more critical mineral intensive (kg/vehicle)2 Forecast cobal
Slide 22: Nickel laterite development is required to maintain supply
Nickel laterite development is required to maintain supply • Majority of new nickel mine supply is coming from laterite deposits, with Indonesian supply accounting for 85% growth • The mining sector has progressively built capability to successfully deliver hydromet nickel plants - Moa Bay, Coral Ba
Slide 23: Processing technology
Processing technology The Sunrise Project uses a hydrometallurgical processing circuit, coupled with an ion exchange system, to recover metals out of solution. The benefits of ion exchange are: • A smaller footprint than conventional metal extraction circuits (eg CCD/precipitation) • Reductions in c
Slide 24: Capital costs
Capital costs Capital Cost A$M $USM Pre-production capital cost estimated at AACE Class 3 at a Site Development Costs 28 20 p50 (-10/+15%) level of accuracy Mining Costs 35 25 Ore Leach Costs 413 289 At US$60k/t Ni-equivalent capacity, the construction capital Refinery Costs 271 190 of US$1.8bn benc
Slide 25: Operating costs
Operating costs Operating Costs (US$/lb Ni) Yr2-11 Yr2-25 Mining costs 0.84 0.76 Sunrise will be a first quartile nickel cash cost producer Processing costs 3.14 3.47 Admin & Site Overheads 0.18 0.21 Haulage & Port 0.15 0.14 Cobalt by-product credits contribute one-third of Project Total C1 Costs (b
Slide 26: Significantly advanced project
Significantly advanced project Significant project work and technical studies have identified the key development pathways and workstreams associated with the construction of the project. Project now advanced to funding stage with construction activity to commence once finance is secured Extensive p
Slide 27: Robust mine plan
Robust mine plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Ore MT 10.57 6.94 7.36 1.95 7.87 2.52 7.12 4.70 6.02 3.03 7.83 2.25 2.61 5.06 1.61 4.71 4.59 3.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Waste MT 2.00 9.43 4.06 3.64 9.05 3.13 8.47 3.88 6.30 4.98 7.97 3.17 8.75 8.3
Slide 28: Corporate Investors
Corporate Investors Ben Stockdale (CFO) Craig Sainsbury +61 3 9797 6700 craig.sainsbury@marketeye.com.au
Sunrise Energy Metals — Market Eye 'Meet the CEO' webinar 2022 on 6ix