Kingston Resources Ltd. · ASX:KSN
Kingston Resources — Shareholder Meeting (July 2016)
33 slides from Kingston Resources's shareholder meeting presentation, Jul 4, 2016
Slide 1: EGM Presentation July 2016
25-27 25-27 Jewell Jewell Parade Parade North North Fremantle, Fremantle, Western Western Australia Australia 6159 6159 For personal use only ACN ACN 009 009 148 148 529 529 T: +61 8 9336 6619 T: +61 8 9336 6619 www.kingstonresources.com.au www.kingstonresources.com.au EGM Presentation July 2016
Slide 2: Disclaimer
Disclaimer For personal use only Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Kingston Resources Limited (“KSN”) and its projects, are forward looking statements. Such forward looking statem
Slide 3: Corporate Snapshot – Post Settlement
Corporate Snapshot – Post Settlement For personal use only CAPITAL STRUCTURE (post Completion) KEY PERSONNEL Shares on issue 660,269,985 shares Chairman Anthony Wehby Market capitalisation (@ A$0.023 per share) A$15.3m Managing Director Andrew Corbett BE(Hons) MBA Cash on hand A$6m Chief Geological
Slide 4: Corporate Highlights
Corporate Highlights For personal use only • Experienced management team • Australian exploration and mining focus • Primary focus on Lithium • Positive lithium outlook with strong underlying demand • Diverse portfolio of attractive lithium tenements – Highly prospective geological settings – Adjace
Slide 5: Board and Management
Board and Management For personal use only Anthony Wehby – Chairman • Anthony was a founding director and is now Chairman of Aurelia Metals Ltd, an ASX listing mining company, in his role he has overseen the progression of the company from exploration through to production. Prior roles include Chair
Slide 6: Metals exploration company with a strong focus on Lithium
For personal use only “Metals exploration company with a strong focus on Lithium” “Targeting Lithium exploration drilling by Q3 CY16 Rapid work programs & exploration timeline” 6
Slide 7: Australian Location Advantage
Australian Location Advantage For personal use only MWh Li Ion Battery Capacity (2015) 60,000 Planned 50,000 Commissioned / Under construction 40,000 30,000 20,000 10,000 0 China Korea Japan US Europe RoW Source : CEMAC 7
Slide 8: Australian Lithium Projects
Australian Lithium Projects For personal use only Mt Cattlin Bynoe and Wingate • Close to an established • Attractive new exploration lithium mine region for Lithium • Excellent infrastructure • Close to capital city and setting port • Multiple known target • Historical tin and tantalum pegmatites p
Slide 9: 2016 Lithium program of work
2016 Lithium program of work For personal use only CY 16 - Q2 CY 16 – Q3 CY16 – Q4 Surface work and Mt Cattlin Stage 1 drilling Stage 1 drilling geophysics Surface work Greenbushes Preparation work geochem Bynoe + Surface work and Surface work Wingate geophysics geophysics Surface work North Arunta
Slide 10: Mt Cattlin
Mt Cattlin For personal use only • Priority Exploration target with targets identified Deep Purple South • Historical sampling confirms significant lithium up to 4.48% Li2O * • Excellent regional infrastructure • Neighbouring Mt Cattlin Mine, 14 km NE. Resource 16.4mt @ 1.08% Li2O ** • Galaxy Resour
Slide 11: Mt Cattlin geophysical review
Mt Cattlin geophysical review For personal use only • Geophysical review has highlighted multiple pegmatite targets • Targets along strike from known lithium bearing pegmatites • Deep Purple South target area known to contain anomalous lithium, with rock chips containing up to 4.48% Li2O* • Targets
Slide 12: Greenbushes
Greenbushes For personal use only • Geochemical anomaly exploration target • Requiring modern exploration to fully evaluate • Neighbouring Greenbushes mine, the largest hard rock lithium mine globally. Resource 118.4 @ 2.4% Li20 * • Strategic regional asset * Ingham, P.; Brett, A.; White, I.; Jackso
Slide 13: Bynoe & Wingate
Bynoe & Wingate For personal use only • Significant tenure package covering over Bynoe 400 km2, within the Litchfield Pegmatite Belt Pegmatite Field • Bynoe tenements are 30km South-West of Darwin • Wingate tenements are 170km South-West of Darwin • Significantly under explored in recent times and b
Slide 14: Bynoe
Bynoe For personal use only • Overlays part of the Bynoe pegmatite field which has hosted many historical tin and tantalum deposits • Excellent infrastructure – 30 km from city of Darwin and Port Darwin • Scale to be a large producing pegmatite belt • Multiple pegmatites identified from early stage
Slide 15: Wingate
Wingate For personal use only • Historical tin workings within the tenement, part of the Buldiva tin field • Gold workings also present within the project area, and to the southwest • Known pegmatite targets identified in NTGS data • Previous work has provided promising indicators for the presence o
Slide 16: North Arunta
North Arunta For personal use only • Seven tenements are located within the Barrow Creek Pegmatite Field and the Alcoota Pegmatite Region Barrow Creek Project • Multiple historic workings for tin, tantalum and tungsten • Historic and current exploration has built a strong case for lithium potential
Slide 17: Barrow Creek, Utopia & Spotted Wonder
Barrow Creek, Utopia & Spotted Wonder For personal use only 17
Slide 18: Copper Exploration
Copper Exploration For personal use only • Six Mile Hill: eastern margin of the Gawler Craton and straddles the boundary between the Spencer Domain and the Olympic Domain. • Cootanoorina: Exploration targeting IOCG mineralisation, eastern edge of the Gawler Craton within the Peake-Denison Domain. •
Slide 19: A brief history of Li-ion battery technology
A brief history of Li-ion battery technology For personal use only • 1970’s-80’s foundational R&D done in Britain, US, Japan • 1985 Asahi Kasei Corporation produces first Li-ion battery • 1991 Sony launches first Li-ion battery for consumer electronics • 1990’s other Japanese follow • 1990’s other n
Slide 20: Recent global EV news
Recent global EV news For personal use only • Dec 2015: Ford investing $4.5b in electrified vehicle solutions, adding 13 new electrified vehicles to its fleet by 2020. • Jan 2016: China’s BYD tops global EV sales in 2015 • Jan 2016: China announces target for 5m EV sales by 2020, (2015 ~380k) • Jan
Slide 21: Lithium market snapshot
Lithium market snapshot For personal use only Production by Company 2015 Other 14% 2015 ~ Demand 175kt LCE FMC 10% SQM 17% Batteries Other Tianqi 23% 35% 24% Albermarle 32% 0% 20% 40% Production by Country 2015 Other 3% Grease 9% Zimbabwe 3% China 7% Argentina 11% Ceramics & Glass Chile 35% 32% Aust
Slide 22: Historical demand growth by end use
Historical demand growth by end use For personal use only Source : Fox Davies, Roskill 22
Slide 23: Current demand outlook
Current demand outlook For personal use only Lithium demand forecast (LCE t) 800,000 700,000 600,000 12% CAGR 500,000 400,000 300,000 8% CAGR 200,000 100,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Broker 3 Consultant Broker 2 Broker 1 Broker 4 Broker 5 Company 1 Consultant 2 A
Slide 24: Current supply outlook
Current supply outlook For personal use only Lithium supply scenario (LCE t) 350,000 300,000 Demand at 10% CAGR Mount Cattlin JV 250,000 Mount Marion JV 200,000 Albemarle brine exp Orocobre Phase 1 150,000 Current Production 100,000 50,000 0 2014 2015 2016 2017 2018 2019 2020 More supply needed to a
Slide 25: Supportive pricing outlook
Supportive pricing outlook For personal use only • Contracted price market with quarterly and annual pricing • Spot market is not reflective of average market price • Opaque pricing market • Despite price rises, lithium represents only 2-3% of battery cost Source : Global Lithium LLC, Benchmark 25
Slide 26: Rapidly expanding Li-Ion battery market
Rapidly expanding Li-Ion battery market For personal use only Since 2000 • Mobile phones – powered by Li-Ion moved from 200 million units to 1.8 b units • Laptops moved from close to zero Li-Ion batteries to over 230 m Li-Ion powered units in 2014 • Tonnes of Li-Ion cathode reached over 100,000 tonn
Slide 27: Lithium-ion battery demand strength
Lithium-ion battery demand strength For personal use only • Li-ion battery CAGR +20% since 2004 • Overall battery market share still 90% lead acid, Li-ion only 10%. • Global battery market U$60b in sales and growing at CAGR 5% since 1990. • Key drivers of Li-Ion demand to date have been – Mobiles –
Slide 28: Battery production investment goes beyond Tesla
Battery production investment goes beyond Tesla For personal use only Source : Benchmark Mineral Intelligence 28
Slide 29: Lithium ion battery – Growth drivers
Lithium ion battery – Growth drivers For personal use only Consumption Regulation Battery costs and technology Source Avicenne 2015, Tesla 29
Slide 30: Global EV range is rapidly expanding
Global EV range is rapidly expanding For personal use only International vehicle manufacturers Chinese vehicle manufacturers Manufacturer Model Manufacturer Model Audi A3 etron, others in development BAIC EV200, EV150/160, C50 BMW i3, i8, Active Series BYD E6, Qin Chevrolet Volt, Spark Changan Fudo
Slide 31: China to dominate the future of EVs
China to dominate the future of EVs For personal use only Source : Deuteche Bank, MIIT 31
Slide 32: Energy Storage Systems (ESS) minor impact to date
Energy Storage Systems (ESS) minor impact to For personal use only date, potential to drive the next phase of growth. Global installed capacity of ESS batteries Source GS, BNEF 32
Slide 33: Peer Group Analysis
Peer Group Analysis For personal use only Share Price Market Cap Lithium Resource Grade Li2O Primary Company Name ASX Symbol (A$) (A$m) (mt) (Li2O%) (mt) Commodity Mineral Resources MIN $8.35 $1,560 10.0 1.39 0.14 Li, Fe Orecobre ORE $4.77 $999 1.72 Li Pilbara Minerals PLS $0.58 $666 80.2 1.26 1.01