Ioneer Limited · ASX:INR
Ioneer — Shareholder Meeting (November 2019)
27 slides from Ioneer's shareholder meeting presentation, Nov 8, 2019
Slide 1: Annual General Meeting 8 November 2019
For personal use only Annual General Meeting 8 November 2019 Held at 10:am in the Boardroom Registry Offices Level 12, 225 George Street, Sydney NSW 2000
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 For personal use only The information in this report that
Slide 3: Purpose
Purpose For personal use only To provide the materials for a sustainable future & thriving planet To responsibly develop materials for an electrified future To be at the forefront of the USA’s domestic battery materials supply chain ASX: INR 3 3
Slide 4: Rhyolite Ridge – What sets it apart from other lithium deposits?
Rhyolite Ridge – What sets it apart from other lithium deposits? For personal use only • Lithium Carbonate: >20kt pa, largest producer in the US Lithium & Boron • Boric Acid: >170kt pa, third largest producer in the world • One of only two known large Li-B deposits globally • Simple acid leach proce
Slide 5: Rhyolite Ridge Lithium-Boron Deposit
Rhyolite Ridge Lithium-Boron Deposit For personal use only Outcrop ASX: INR 5
Slide 6: Key milestones achieved
Key milestones achieved For personal use only Delivered Pre-Feasibility Study Upgraded lithium-boron Resource Constructed, developed and operated full simulation Pilot Plant Produced and delivered to customers high quality lithium and boron material Largely completed DFS Advanced offtake & strategic
Slide 7: Rhyolite Ridge PFS (October 2018)
Rhyolite Ridge PFS (October 2018) For personal use only 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 bot
Slide 8: Rhyolite Ridge Resource Upgrade (June 2019)
Rhyolite Ridge Resource Upgrade (June 2019) For personal use only 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
Slide 9: Pilot Plant (March 2019 - current)
Pilot Plant (March 2019 - current) For personal use only 9
Slide 10: Pilot Plant – simulating commercial processes
Pilot Plant – simulating commercial processes For personal use only 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 produ
Slide 11: Lithium carbonate quality confirmed
Lithium carbonate quality confirmed For personal use only Rhyolite Typical Industry Typical Industry Compound or Element Units Ridge 1. Specifications (Brine) Specifications (Spodumene) Lithium Carbonate (technical grade) % >99.0 >99.0 >99.0 Calcium ppm 381 350 400 Chloride ppm <10 200 200 Iron ppm
Slide 12: DFS largely complete
DFS largely complete For personal use only On track for delivery in Q120 Targeting 30% engineering completion Recent flowsheet enhancements being incorporated into engineering design Leach Vats Acid Plant Process Plant 12
Slide 13: Offtake & Strategic Partner Discussions
Offtake & Strategic Partner Discussions For personal use only 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
Slide 14: Progress on Permitting
Progress on Permitting For personal use only Environmental baseline studies conducted over two-year period Two main areas identified as requiring additional attention: • Socio-economic impacts of operation • A sensitive plant species Final stages of baseline studies with Plan of Operation to be subm
Slide 15: Forward catalysts for the year ahead
Forward catalysts for the year ahead For personal use only Complete DFS engineering by Q120 and continue advancing post DFS, targeting completion of 50% engineering Finalise material offtakes for boron and lithium Conclude strategic partnering Undertake environmental review process 15
Slide 16: Questions? Thank you
Questions? For personal use only THANK YOU 16 16
Slide 17: Appendices
For personal use only ASX: INR Appendices 17
Slide 18: Corporate snapshot
Corporate snapshot For personal use only Capital Structure Share price (As at 7 November 2019) Shares outstanding 1.477B 7 November 2018 - 7 November 2019 $0.30 $0.25 Performance Rights and Options $0.20 54.0m outstanding $0.15 $0.10 $0.05 Cash balance (30/09/19) A$34.7m $- Share price ASX A$0.235 S
Slide 19: ioneer Board of Directors
ioneer Board of Directors For personal use only 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 & H
Slide 20: Essential materials for a modern world
Essential materials for a modern world For personal use only 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 co
Slide 21: Lithium - classed as a critical US mineral
Lithium - classed as a critical US mineral For personal use only 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 Order Target 35 GWh LG Chem on critical minerals. Ba
Slide 22: Where are we in the cycle?
Where are we in the cycle? For personal use only 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 22
Slide 23: Tipping point for mass adoption of EVs
Tipping point for mass adoption of EVs For personal use only 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 ba
Slide 24: Boron - a diverse material
Boron - a diverse material For personal use only 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
Slide 25: Boron co-product to offset operating costs
Boron co-product to offset operating costs For personal use only 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 include Conv
Slide 26: Key partners
Key partners For personal use only EPCM Evaporation Acid Plant Material Handling Acid Plant Controls Mining Pilot Plant Spent Ore Environment Leaching 26 ASX: INR
Slide 27: Thank you
For personal use only Providing the materials for a sustainable & thriving planet. Thank you. For more information please visit our website at www.ioneer.com or contact us via email on: info@ioneer.com Annual General Meeting - 2019 8 November 2019