Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — BMO Capital Markets 29th Annual Global Metals & Mining Conference 2020
45 slides from Sunrise Energy Metals's conference presentation, Feb 25, 2020
Slide 1: ASX/TSX Announcement: Investor Presentations
ASX/TSX Announcement 25 February 2020 Investor Presentations MELBOURNE, Australia – Clean TeQ Holdings Limited (Clean TeQ or Company) (ASX/TSX:CLQ; OTCQX:CTEQF) is pleased to advise that Managing Director and CEO Mr Sam Riggall will be presenting at the BMO Capital Markets 29th Annual Global Metals
Slide 2: Sunrise Battery Materials Complex
Sunrise Battery Materials Complex Building a sustainable supply chain for electric vehicles BMO Metals & Mining Conference February 2020 CLQ
Slide 3: Cautionary statement
Cautionary statement Certain statements in this presentation 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 4: Decarbonisation – the industrial challenge of this century
Decarbonisation – the industrial challenge of this century Metals are the new oil – for electrical generation, storage, distribution and light-weighting To scale - area represents global market value of the commodity Li Graphite Clean TeQ | BMO Metals & Mining Conference - February 2020 3
Slide 5: Reinventing the supply chain
Reinventing the supply chain Raw materials are the most vulnerable part of the EV supply chain ACTIVE PACKS RECYCLE REFINING CELLS MINING MATERIALS / REUSE Supply Chain Foundations 1. Secure 2. Low cost 3. Sustainable - Geology - Chemistry - Brand / reputation - Geography - Metal prices - Life cycle
Slide 6: Supply Chain Foundations
Supply Chain Foundations 1. Secure 2. Low cost 3. Sustainable - Geology - Chemistry - Brand / reputation - Geography - Metal prices - Life cycle assessment Clean TeQ | BMO Metals & Mining Conference - February 2020 5
Slide 7: Ore reserves and production rates
Ore reserves and production rates Metal markets area function of geological scarcity and demand Implied 30-Year Reserve Life as Multiple of Current Production 14.0 7.0 4.1 1.9 1.3 1.1 1.0 Li C Al Co Mn Cu Ni Source: USGS; Bernstein Source: Global Battery Alliance, WEF; McKinsey analysis Clean TeQ |
Slide 8: Reserve depletion rates
Reserve depletion rates Projected EV stock by 2050 will have a huge impact on ore reserve depletion rates To scale - area represents global market value of the commodity “Every project that has a name – we still don’t have enough. These are growth rates the mining industry has never seen before. The
Slide 9: Development timeframes
Development timeframes Building new nickel / cobalt capacity takes time 6 Development Time for Existing PAL Operations Years “These are markets that Gordes (Turkey) 6 Years really need consistent Taganito (Philippines) Discovery to DFS 7 Years investment – mines Goro (New Caledonia) DFS to first pro
Slide 10: Battery materials are geographically concentrated
Battery materials are geographically concentrated Concentration increases supply risk Cobalt Mine supply DRC 72% Refined Production China 65% Nickel Mine supply Indo/Phil 39% Russia 12% Refined Production China 29% Russia 23% Lithium Mine supply Australia 62% Chile 18% Refined Production China 54% C
Slide 11: Supply Chain Foundations
Supply Chain Foundations 1. Secure 2. Low cost 3. Sustainable - Geology - Chemistry - Brand / reputation - Geography - Metal prices - Life cycle assessment Clean TeQ | BMO Metals & Mining Conference - February 2020 10
Slide 12: Battery pack costs are declining rapidly…
Battery pack costs are declining rapidly… Cost parity with ICEs is approaching fast ACTIVE USE AND RECYCLE MINING REFINING CELLS PACKS SERVICE MATERIALS / REUSE CELL PRODUCTION PACK ASSEMBLY ~$100/kWh ~$50/kWh 2010 PACK PRICE 2019 PACK PRICE Learning Rate of ~20% pa ~$1,000/kWh ~$150/kWh Source: Int
Slide 13: … but the benefits from economies of scale will diminish
… but the benefits from economies of scale will diminish Forecasting ICE-parity by middle of this decade The largest contributing factors to battery pack unit cost reductions have been: Economies of scale in production Increased energy density (chemistry) Economies of scale will taper over comin
Slide 14: Cathode chemistry has trade-offs
Cathode chemistry has trade-offs Cobalt thrifting – a case study in shifting risk Metal Cost in Cathode Active Material (CAM), $/kWh [kg metal in a 50kWh battery pack] Benefits in chemistry, however, 35.00 Higher energy density but increased manufacturing complexity come with other trade-offs: - Lif
Slide 15: Metal price volatility - a significant risk
Metal price volatility - a significant risk Unless OEMs manage metal price volatility, cost competitiveness is rapidly eroded Cell Cost Breakdown ($/kWh) LME Nickel Price (NMC811) Price Scenarios Cost of Ni + Co 80,000 Real 2020 USD/tonne High: $75,307 1. Spot $13.00 / kWh ($15k/t Ni, $39k/t Co) 70,
Slide 16: Supply Chain Foundations
Supply Chain Foundations 1. Secure 2. Low cost 3. Sustainable - Geology - Chemistry - Brand / reputation - Geography - Metal prices - Life cycle assessment Clean TeQ | BMO Metals & Mining Conference - February 2020 15
Slide 17: New supply chains create brand and reputation risk
New supply chains create brand and reputation risk Moral hazard: should these risks be contracted out to third party agents? Brand, Reputation & ESG Child labour and slavery Water depletion or contamination Carbon footprint Submarine tailings Deforestation disposal Extra-territorial law suits Clean
Slide 18: Carbon – a life cycle analysis of CO2 intensity
Carbon – a life cycle analysis of CO2 intensity EVs must be designed around the battery if they are to deliver benefits to society Raw materials (mining and processing) in the battery leave the biggest CO2 footprint on the supply chain Risk, but also the largest opportunity OEMs need measurable carb
Slide 19: Nickel and cobalt – why they are so important
Nickel and cobalt – why they are so important The carbon footprint of the battery pack is determined by mining/refining process routes…. ACTIVE PACKS MINING REFINING CELLS MATERIALS TOTAL 84 - 183 40 -139 21 kgCO2e/kWh 20 kgCO2e/kWh 2 kgCO2e/kWh kgCO2e/kWh kgCO2e/kWh 4.1 – 8.8 t CO2e per vehicle Sou
Slide 20: Strategic procurement matters
Strategic procurement matters … where nickel and cobalt make up between one-quarter and two-thirds of total pack emissions MINING REFINING kg CO2e / kWh Ni+Co as % of total Process and feedstock for Ni+Co pack emissions Nickel Sulfide Pyromet 20 25% High Pressure Acid Leach (HPAL) 34 35% 40 -139 Fer
Slide 21: Sunrise Integrated Battery Complex
Sunrise Integrated Battery Complex A template for industry-leading emissions and cost performance across the cathode supply chain
Slide 22: Large, low cost, long-life (and in Australia)
Large, low cost, long-life (and in Australia) Manhattan, NY Clean TeQ | BMO Metals & Mining Conference - February 2020 21
Slide 23: The focus is battery chemicals (metal salts and beyond)
The focus is battery chemicals (metal salts and beyond) Cobalt Sulphate Scandium Oxide Clean TeQ | BMO Metals & Mining Conference - February 2020 22
Slide 24: Sunrise – a breakdown of CO2e hotspots
Sunrise – a breakdown of CO2e hotspots Integrating renewable power at Sunrise reduces carbon by circa 30% 110% 100% 90% 80% Indicator Unit Value Sunrise (Imported Power) 70% Per kg Ni metal produced kg CO2 e/kg 17.2 60% Per kg Co metal produced kg CO2 e/kg 45.4 Option to eliminate one-third of Per k
Slide 25: The vision for Sunrise and Central NSW
The vision for Sunrise and Central NSW Integrated precursor / cathode production, renewable generation and recycling Renewable Power: The Central-West Renewable Energy Zone (REZ) will add 3GW of new solar generation capacity to Sunrise’s 3GW doorstep Linking Li – Ni - Co: The east-west national rail
Slide 26: Clean TeQ Holdings Limited contact details
P: +61 3 9797 6700 E: info@cleanteq.com Clean TeQ Holdings Limited 12/21 Howleys Rd Notting Hill VIC 3168 Australia www.cleanteq.com
Slide 27: A focus on nickel in electric vehicle batteries
A focus on nickel in electric vehicle batteries Understanding cost and the carbon footprint BMO Metals & Mining, February 2020 CLQ Sam Riggall, CEO
Slide 28: Cautionary statement
Cautionary statement Certain statements in this presentation 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 29: Decarbonisation – the industrial challenge of this century
Decarbonisation – the industrial challenge of this century Metals are the new oil – for electrical generation, storage, distribution and light-weighting To scale - area represents global market value of the commodity Li Graphite Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020
Slide 30: Nickel - mind the gap
Nickel - mind the gap Where will battery-grade nickel come from? Implies 6% pa CAGR in Class 1 Nickel compared to 0.5% pa average over the past 20 years Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020 4
Slide 31: Nickel - ore styles and ore genesis
Nickel - ore styles and ore genesis The economics of laterite and sulfide development rely on very different considerations, but…. Laterite ore Grade Sulfide ore Acid By-products Energy Cost Scarcity Pyromet (RKEF): Hydromet (PAL): Pyromet (smelt+refine): FeNi, NPI MSP, MHP, sulfate eluate Matte, LM
Slide 32: Good nickel sulfide resources are geologically scarce
Good nickel sulfide resources are geologically scarce …laterites will need to do most of the heavy lifting to meet stainless and EV demand The world is increasingly dependent on nickel laterite ores Nickel sulfide resources are geologically scarce and insufficient to support forecast EV growth
Slide 33: Feedstocks – many routes to nickel (and cobalt) sulfate
Feedstocks – many routes to nickel (and cobalt) sulfate Cost and complexity are a function of impurity loads in the feedstock Nickel Pig Iron FerroNickel MHP MSP (Class 2) (Class 2) (Intermediate) (Intermediate) 8 - 16% Ni 20 - 25% Ni ~40% Ni / 1.5% Co ~60% Ni / 4.0% Co Matte Sunrise Eluate LME Ni S
Slide 34: Can FeNi and NPI plug the gap?
Can FeNi and NPI plug the gap? Impurities increase conversion costs to nickel / cobalt sulfate Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020 8
Slide 35: Carbon – a life cycle analysis of CO2 intensity
Carbon – a life cycle analysis of CO2 intensity EVs must be designed around the battery if they are to deliver benefits to society Raw materials (mining and processing) in the battery leave the biggest CO2 footprint on the supply chain Risk, but also the largest opportunity OEMs need measurable carb
Slide 36: Carbon accounting for the battery supply chain
Carbon accounting for the battery supply chain The carbon footprint of the battery pack is determined largely by mining/refining process routes…. ACTIVE PACKS MINING REFINING CELLS MATERIALS TOTAL 84 - 183 40 -139 21 kgCO2e/kWh 20 kgCO2e/kWh 2 kgCO2e/kWh kgCO2e/kWh kgCO2e/kWh 4.1 – 8.8 t CO2e per ve
Slide 37: Importance of nickel and cobalt
Importance of nickel and cobalt … where nickel and cobalt make up between one-quarter and two-thirds of total pack emissions MINING REFINING kg CO2e / kWh Ni+Co as % of total Process and feedstock for Ni+Co pack emissions Nickel Sulfide Pyromet 20 25% High Pressure Acid Leach (HPAL) 34 35% 40 -139 F
Slide 38: Nickel sulfate process routes
Nickel sulfate process routes The environmental promise of EVs depends greatly on procurement strategy Source: See note on previous page. Sunrise emissions based on renewable electricity supply. Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020 12
Slide 39: Sunrise Integrated Battery Complex
Sunrise Integrated Battery Complex A template for industry-leading emissions and cost performance across the cathode supply chain
Slide 40: Sunrise Battery Materials Complex
Sunrise Battery Materials Complex Manhattan, NY Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020 14
Slide 41: Sunrise Battery Materials Complex
Sunrise Battery Materials Complex Cobalt Sulphate Scandium Oxide Clean TeQ | BMO 29th Global Metals & Mining Conference, 23-26 Feb 2020 15
Slide 42: GHG intensity of Clean TeQ Sunrise
GHG intensity of Clean TeQ Sunrise Understanding the Sunrise emission hot spots Indicator Unit Value Total Sunrise Project, cradle to gate t CO2e/year 571,457 - scope 1 emissions t CO2e/year 265,577 - scope 2 emissions t CO2e/year 165,844 - scope 3 emissions t CO2e/year 140,036 Nickel carbon intensi
Slide 43: Breakdown of CO2e releases for Sunrise
Breakdown of CO2e releases for Sunrise Integrating renewable power at Sunrise reduces carbon by circa 30% 110% 100% 90% 80% Indicator Unit Value Sunrise (Imported Power) 70% Per kg Ni metal produced kg CO2 e/kg 17.2 60% Per kg Co metal produced kg CO2 e/kg 45.4 Option to eliminate one-third of Per k
Slide 44: The vision for Sunrise and Central NSW
The vision for Sunrise and Central NSW Integrated precursor / cathode production, renewable generation and recycling Renewable Power: The Central-West Renewable Energy Zone (REZ) will add 3GW of new solar generation capacity to Sunrise’s 3GW doorstep Linking Li – Ni - Co: The east-west national rail
Slide 45: Clean TeQ Holdings Limited contact details
P: +61 3 9797 6700 E: info@cleanteq.com Clean TeQ Holdings Limited 12/21 Howleys Rd Notting Hill VIC 3168 Australia www.cleanteq.com
Clean TeQ Holdings — BMO Capital Markets 29th Annual Global Metals & Mining Conference 2020 on 6ix