Ioneer Limited · ASX:INR
Ioneer — Resources Rising Stars Conference December 2019
28 slides from Ioneer's conference presentation, Dec 3, 2019
Slide 1: American Source of Lithium and Boron for a Sustainable Future
American Source of Lithium and Boron for a Sustainable Future Resources Rising Stars Conference December 2019 ASX: INR
Slide 2: Important notices and disclaimers
Important notices and disclaimers This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and The information in this presentation that relates to Expl
Slide 3: Corporate snapshot
Corporate snapshot Capital Structure Share price (As at 28 November 2019) Shares 1.68b Performance Rights and Options 54m Cash at 30 Sep 19 A$35m Net proceeds of Nov 19 placement A$38m Share price A$0.20 Shareholders (6 November 2019) Market capitalisation A$336m Directors and Management 8% Top 20 O
Slide 4: Rhyolite Ridge – What sets it apart from other lithium deposits?
Rhyolite Ridge – What sets it apart from other lithium deposits? • Lithium Carbonate: >20ktpa, expected to be largest producer in the US Lithium & Boron • Boric Acid: >170ktpa, expected to be third largest producer in the world • One of only two known large Li-B deposits globally • Simple acid leach
Slide 5: ioneer Board of Directors
ioneer Board of Directors James D. Calaway Alan Davies Patrick Elliott John Hofmeister Bernard Rowe Non-executive Non-executive Non-executive Non-executive Managing Director Chairman Director Director Director Former: Former: Former: Former: Non-exec chairman of CEO, Energy & Head of corporate Presi
Slide 6: Key partners
Key partners EPCM Evaporation Acid Plant Material Handling Acid Plant Controls Mining Pilot Plant Spent Ore Environment Leaching 6 ASX: INR
Slide 7: Project overview
ASX: INR Project overview Tesla Gigafactory Tonopah Albemarle's Silver Peak Mine Rhyolite Ridge Lithium-Boron Project CALIFORNIA
Slide 8: Key milestones achieved
Key milestones achieved Delivered Pre-Feasibility Study Upgraded lithium-boron Resource Constructed, developed and operated full simulation Pilot Plant Produced and delivered to customers high quality lithium carbonate and boric acid Largely completed DFS Advanced offtake & strategic partner discuss
Slide 9: Rhyolite Ridge PFS (October 2018)
Rhyolite Ridge PFS (October 2018) Lithium carbonate = 20kt p.a. Boric acid = 173kt p.a. Annual Annual Total Capex Revenue EBITDA $450m $599m $297m After-tax After-tax NPV IRR Cashflow (7% real): $6.6b $1.8b 28% Operating costs with boric acid credit places Rhyolite Ridge at bottom of the lithium cos
Slide 10: Rhyolite Ridge Resource Upgrade (June 2019)
Rhyolite Ridge Resource Upgrade (June 2019) June 2019 Oct 2018 June 2019 Upper Zone Measured + Measured + Measured Indicated Resource Indicated Resource Resource Tonnage mt 104.1 130.5 27.5 Lithium Grade ppm 1,700 1,597 1,900 Boron Grade ppm 12,800 14,091 17,800 Boric Acid to 7.5x 8.8x 10x Li Carbon
Slide 11: Pilot Plant – simulating commercial processes
Pilot Plant – simulating commercial processes Achieved key objectives Confirmed fundamental process flowsheet Enhancement testwork is near complete Identified opportunity for process enhancements Results of testwork very encouraging Produced high-quality lithium and boron products Changes being inco
Slide 12: Lithium carbonate quality confirmed
Lithium carbonate quality confirmed Typical Industry Rhyolite Typical Industry Compound or Element Units Specifications Ridge Specifications (Brine) (Spodumene) Lithium Carbonate (technical grade) % >99.0 >99.0 >99.0 Calcium ppm 381 350 400 Chloride ppm <10 200 200 Iron ppm 13 <20 35 Potassium ppm 1
Slide 13: DFS largely complete
DFS largely complete On track for delivery in Q120 Targeting 30% engineering completion in DFS Recent flowsheet enhancements being incorporated into engineering design Leach Vats Acid Plant Process Plant 13
Slide 14: Offtake & Strategic Partner Discussions
Offtake & Strategic Partner Discussions Active negotiations with potential strategic financial and offtake partners are continuing: • 20 partners toured the Pilot Plant • Discussions ongoing 30 product samples sent to potential customers around the world for evaluation: • >99.9% premium quality bori
Slide 15: Progress on Permitting
Progress on Permitting Completed environmental baseline studies over a two-year period Two main areas identified as requiring additional attention: • Socio-economic impacts of operation • A sensitive plant species Plan of Operation to be submitted in near future Routine anti-development opposition t
Slide 16: Lithium & boron markets
Lithium & boron markets 16 ASX: INR
Slide 17: Lithium - classed as a critical US mineral
Lithium - classed as a critical US mineral Rhyolite Ridge can supply US domestic lithium in a secure and sustainable manner Tesla Bipartisan American Mineral Security Act Battery Gigafactory introduced to complement Executive Target 50 GWh LG Chem Order on critical minerals. Battery Factory Target 1
Slide 18: Where are we in the cycle?
Where are we in the cycle? Goldman Sachs views now as an attractive entry point, as lithium prices appear to be approaching cash costs for the sector Source: Goldman Sachs Global Investment Research, October 2019 18 ASX: INR
Slide 19: Essential materials for a modern world
Essential materials for a modern world Borates ≈4% CAGR LCE ≈18% CAGR Lithium Boron Lithium essential to all types of electric Used in strengthened glass and vehicle (EV) batteries permanent magnets EV soon to be preferred vehicle Steady borate demand growth driven by Demand consistently underestima
Slide 20: Tipping point for mass adoption of EVs
Tipping point for mass adoption of EVs Lithium-ion battery cost reduction is an important catalyst for mass adoption of EVs Lithium pricing required at levels to incentivise rapid growth of lithium supply from 2023 Consistent lithium specifications increasingly important for battery cathodes Automak
Slide 21: Boron - a diverse material
Boron - a diverse material Broad range of essential uses mitigates reliance on single sector (~300) USA and China housing markets important drivers of demand Increasing demand from agriculture, solar, specialty glass and permanent magnets Demand currently ~2.1Mtpa of contained boric oxide (B2O3) equ
Slide 22: Boron co-product to offset operating costs
Boron co-product to offset operating costs Credit from boric acid revenue places Rhyolite Ridge in lowest quartile of lithium carbonate cost curve Lithium Carbonate Cost Curve - 2025 Source: Ord Minnett Estimates, Company Filings, Benchmark Minerals, Roskill (Cost includes Conversion Cost to Li2CO3,
Slide 23: Indicative Project schedule
Indicative Project schedule 2019 2020 2021 2022 2023 Milestones Deliver DFS Final Investment Decision First Production Pilot Plant Detailed (50%) Engineering Engineering Long Lead Items Construction Environmental State & Federal Permitting Process Boron & Lithium Marketing & Offtake Commercial Final
Slide 24: Rhyolite Ridge - Summary
Rhyolite Ridge - Summary • Lithium Carbonate: >20ktpa, expected to be largest producer in the US Lithium & Boron • Boric Acid: >170ktpa, expected to be third largest producer in the world • One of only two known large Li-B deposits globally • Simple acid leach process (no high temperature or high pr
Slide 25: Providing the materials for a sustainable & thriving planet.
Providing the materials for a sustainable & thriving planet. ASX: INR December 2019
Slide 26: Appendices
Appendices 26 ASX: INR
Slide 27: Pilot Plant
ASX: INR t Plant PRODUC T SAMPLED PRODUST SANPL1D DATE \THIUM CARB 27
Slide 28: June 2019 Mineral Resource Estimate
June 2019 Mineral Resource Estimate Lithium-Boron (Searlesite) Mineralisation (5,000ppm Boron Cut-off) Contained Tonnes Group Classification Tonnage Li B Li2CO3 H3BO3 Li2CO3 Boric Acid mt ppm ppm % % kt kt Measured 27.0 1,900 18,000 1.0 10.3 270 2,770 Upper Zone Indicated 42.0 1,750 17,150 0.9 9.8 4
ioneer — Resources Rising Stars Conference December 2019 on 6ix