Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (February 2016)
42 slides from Neometals's investor presentation, Feb 24, 2016
Slide 1: Investor Presentation
For personal use only Investor Presentation ASX Code: NMT February 2016 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: Our Strategy
Our Strategy For personal use only To generate multiple, long term cashflow streams that we can share with our shareholders 2 cent return announced today A$5M/5% on market buyback 3
Slide 4: Corporate Details
Corporate Details For personal use only ASX Code:Price NMT OTC: NMTUY (AU cents) ASX Code: NMT OTC: RDRUY 30 Last close ( 12 Dec 2014 ) $ 0.036 Last close (23 Feb 2016) A$0.245 25 20 Shares on issue 559 M Shares on issue M 499.4 15 Cash (30 Sept 2014) $m 11.7 Cash (31 Dec 2015)(*) A$31.1 M 10 5 Incl
Slide 5: Group structure
Group structure For personal use only Neometals Ltd (ASX:NMT) 26.9% 100% 70% Process Minerals Int’l 30% Reed Reed 30% Process Minerals Int’l Pty Ltd (Mineral Industrial Advanced Minerals Materials Pty Ltd (Mineral Resources Ltd) Pty Ltd Pty Ltd Resources Ltd) 43.1% Jiangxi Ganfeng Lithium Co., Ltd M
Slide 6: Board and management structure
Board and management structure For personal use only • Disciplined, cohesive and engaged board/management group • Move to best practice CG structure • Steven Cole now Independent Chairman • David Reed remains Non-executive Director • Recruit up to 2 additional independent NED’s • Lean CEO/CFO/COO ma
Slide 7: For personal use only
For personal use only 7 + = + =
Slide 8: Demand Fundamentals
Demand Fundamentals For personal use only + = 8
Slide 9: Demand Fundamentals
Demand Fundamentals For personal use only + = 9
Slide 10: Supply Fundamentals
Supply Fundamentals For personal use only Brine based exports Q2 2015 SQM 29% ALB 29% FMC 35% SignumBOX (Exports) + = 10
Slide 11: Strong demand – constrained supply
Strong demand – constrained supply For personal use only
Slide 12: Supply Fundamentals
Supply Fundamentals For personal use only + = 12
Slide 13: Mt Marion Lithium Project
For personal use only Mt Marion Lithium Project 26.9% Neometals Ltd 43.1% Ganfeng Lithium 30% and Operator Mineral Resources Ltd (ASX:MIN) + = 13
Slide 14: Project Strategy
Project Strategy For personal use only Mt Marion Lithium Integrated Lithium Lithium Mine Hydroxide Plant Producer with Partner(s) Operated by MIN Ganfeng Offtake + = IN CONSTRUCTION PATENTED DFS UNDERWAY + = 14
Slide 15: Strong Operating Partner
Strong Operating Partner For personal use only Australia’s largest contract minerals processor Operate mine-to-port on BOO basis No upfront capital cost to NMT Certainty of construction and production timing Minimum production levels Fixed rate mining and processing costs + = 15
Slide 16: Strong Offtake Partner
Strong Offtake Partner For personal use only China’s leading, most profitable lithium producer Life-of-Mine, Take-or-pay Offtake Agreement At Market Price with floor price protection US$20M Letter of Credit (100% payment on shipping) Ability for MIN/Neometals to take equity share of produc
Slide 17: Range of Potential Option Exercise Outcomes
Range of Potential Option Exercise Outcomes For personal use only Neometals MIN exercise call 13.8% equity +US$19.65M to MIN exercise put 34% equity GLF call lapse -US$10.9M + = 17
Slide 18: Flythrough
For personal use only 18 Flythrough + =
Slide 19: Site layout
For personal use only 19 Site layout + =
Slide 20: Site photo - Feb
Site photo - 11 Feb For personal use only + = 20
Slide 21: Lithium Concentrate Prices
Lithium Concentrate Prices For personal use only + = 21
Slide 22: Near-term milestones
Near-term milestones For personal use only + = 22
Slide 23: Downstream processing
For personal use only Downstream processing Lithium Hydroxide (LiOH) 70% Neometals Ltd 30% Mineral Resources Ltd
Slide 24: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 24
Slide 25: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 25
Slide 26: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 26
Slide 27: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Plant (LOP) 20 years Pre-production Capital cost * US$ 83 million [1 Average Annual Pre-tax Net Cashflow US$ 63 million Pre-tax Internal Rate of Return 94% Pre-tax NPV (12% real discount rate) US$ 321 million Payback of capi
Slide 28: Commercialisation Plan
Commercialisation Plan For personal use only Complete Pilot Plant FEED (FEL4) Definitive Hydromet & & Final Feasibility Electrolysis* Investment Study Decision* JuneQ 16 2016/17 2017 (*) Subject to RAM Board Approval + = 28
Slide 29: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 29
Slide 30: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 30 Sources: Company Reports
Slide 31: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 31 Sources: Company Reports
Slide 32: Project Strategy
Project Strategy For personal use only Mine, Concentrate Produce Titanium Integrated Titanium and Truck Pigment with Producer Titanium Industry Partner Concentrate + = + = 32
Slide 33: Licenced low-cost Technology
Licenced low-cost Technology For personal use only Competitors Input Price US$1,000/t X1.2t Final Final Chlorination Product ROM Chlorination Product Rutile & Purification Fine Ore & Purification Fine Pigment Pigment Cost Cost US$1,214/t US$2,100 - US$572/t 2,300/t Mini-pilot scale testing in Cana
Slide 34: Licenced low-cost Technology
Licenced low-cost Technology For personal use only + = 34
Slide 35: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost [1 A$ 549 million (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)
Slide 36: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Scale Completed Beneficiation Definitive Final Pre-feasibility & Hydromet Feasibility Investment Study Test work * Study * Decision * Aug 2015 2016/17 2017/18 Attract JV Partner (*) Subject to Board Approval + = 36
Slide 37: Investment Proposition
37 For personal use only Investment Proposition + = 37
Slide 38: Lithium : Cash and cashflow
Lithium : Cash and cashflow For personal use only 03 02 Potential to expand 01 Potential for production and/or ~A$68M plus Production + US$19.65M from option exercise plus 13.8% share + value-add through conversion to commencing of production LiOH mid-2016 cashflows + = 38
Slide 39: Titanium : A growth story for 2016/17
Titanium : A growth story for 2016/17 For personal use only 03 01 02 Demonstrated Technical + Demonstrated Economic + Obtain Strong Partners Feasibility Viability to Commercialise + = 39
Slide 40: Thank you
For personal use only Thank you www.neometals.com.au + = 40
Slide 41: Mineral Resource Estimate – Mt Marion
Mineral Resource Estimate for the Mt Marion Lithium deposit, as at September 2015, for a block cut‐off grade of 0% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe2O3 % Indicated Area 1 4.43 1.46 1.32 Area 2 1.30 1.47 1.60 Area 2W 3.39 1.48 1.24 Area 4 0.94 1.25 1.36 Indicated
Slide 42: Mineral Resource Estimate – Barrambie
Mineral Resource Estimate for the Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transit