Quantum Graphite Ltd · ASX:QGL
Quantum Graphite — Investor Presentation (April 2022)
26 slides from Quantum Graphite's investor presentation, Apr 28, 2022
Slide 1: Uley 2 Highlights Q1 2022
DARY LOGO QUANTUM GRAPHITE ULEY 2 HIGHLIGHTS Q1 2022 EV Li-ion Long Batteries Duration Battery Storage Thermal QGL: THE FUTURE OF GRAPHITE… Management European Investor Presentation April 2022 www.quantumgraphite.com
Slide 2: About Quantum Graphite Limited
About Quantum Graphite Limited Board of Directors Capital Structure Bruno Ruggiero, Chairman Shares on Issue (on a fully diluted basis) approx. Sal Catalano, Managing Director 321 million. Bob Osmetti Top 50 Shareholders >75%. David Trimboli Board represents approximately >40% shareholding. Key Tech
Slide 3: Uley 2, Phase 1 At a Glance
ULEY 2, PHASE 1 AT A GLANCE.
Slide 4: At a glance… large resource province
At a glance… large resource province 560000 565000 6150000 6150000 ML 5561 ML 5562 RL 66 RL 67 ULEY 560000 565000 EL 6224 6150000 6150000 ML 5561 ML 5562 HOMESTEAD RL 66 6145000 6145000 RL 67 ULEY EL 6224 HOMESTEAD 6145000 6145000 SALT LAKE SALT LAKE KACEY KACEY 6140000 6140000 6140000 6140000 LEGEN
Slide 5: At a glance… immediate expansion options
At a glance… immediate expansion options Excluding the other mineralised envelopes (within EL 6224) the Uley 2 Project is a multi-generation project. Priority 1 Short Term Ore Reserve extension • Uley 2 South 50m • Infill drilling at Uley 3 (area bordered by blue dotted line) Priority 2 Medium Term
Slide 6: At a glance… Uley 2 Phase 1, low cost, high spec producer
At a glance… Uley 2 Phase 1, low cost, high spec producer Uley 2 Mining Study and Feasibility delivers strong financial metrics Total undiscounted cash flow A$310.5million* Crusher feed 500,000 tonnes per annum Graphitic carbon grade 11.89% Graphitic carbon recovery 84% Concentrate purity >97% graph
Slide 7: At a glance… Uley Phase 1, processing and production
At a glance… Uley 2 Phase 1, processing and production Comprehensive met results confirm historical high quality ROM ore crushing production mix • Medium to Extra-Large Flake - 75% of overall production of gC. Closed circuit single • Very clean geochemistry, no stage SAG grinding Manufacture of dele
Slide 8: The Graphite Market – Crystal Ball Gazing
THE GRAPHITE MARKET – CRYSTAL BALL GAZING
Slide 9: Benchmark Mineral Intelligence… today, seems about right
Benchmark Mineral Intelligence… today, seems about right • Anode has now emerged Flake Long Term Demand Forecast as dominant market for 9,000 2025 2030 2035 8,700 natural flake. 7,500 2.4M tonnes 4.3M tonnes 8.7M tonnes 7,773 6,854 • Overall production of 6,000 6,035 natural flake must double to ‘00
Slide 10: Credit Suisse… a little more bullish
Credit Suisse… a little more bullish • Structural deficit at least Demand outstrips supply in both a high and low case from 2025 but likely earlier. 8,000 Demand and supply of battery-anode graphite 7,000 • High probability that deficit may exceed forecasts 6,000 given unreliability of historical fo
Slide 11: Critical metrics… these are the numbers to watch
Critical metrics… these are the numbers to watch • Anode raw material Natural vs synthetic graphite demand - high case synthetic to natural flake 8,000 market share currently set at 2:1. 7,000 • Over the next 12-18 months 6,000 Graphite demand (ktonnes) natural flake will increase 5,000 from 1/3 ano
Slide 12: Short term… this is what we’re facing
Short term… this is what we’re facing • 10% deficit this year largely 2022E vs 2025E forecasted surplus/deficit shows a sustained covered by inventories, manageable deficit for graphite used in Li-ion batteries impact on price. 10% 4% 5% • Significant higher prices will emerge 5% 3% well before fore
Slide 13: CSPG, Anode production ex China… unlikely without partnerships
CSPG, Anode production ex China… unlikely without partnerships • China is overwhelmingly the dominant producer. • Current anode production estimated at 700,000 tonnes of which China represents approximately 610,000 tonnes. • New capacity under construction will increase China’s capacity by approxima
Slide 14: Other growth segments… expandables, foils, etc.
Other growth segments… expandables, foils, etc. • Non EV long term growth Expandable Graphite Demand Forecast of natural flake demand Expandable graphite demand forecast, 2015-2040 driven by higher end thermal management 200,000 applications. 150,000 • Growth in expandables +6% tonnes forecast at ap
Slide 15: QGL EV market takeaways… tread carefully downstream
QGL EV market takeaways… tread carefully downstream, choose partners wisely • Anode market (and natural flake) is moving to structural deficit within the next 30 months • China remains the overwhelming producer of tier 1 and tier 2 quality anode material • China’s development of additional capacity
Slide 16: The Graphite Market Meets the Electricity Market
THE GRAPHITE MARKET MEETS THE ELECTRICITY MARKET - QGL’S ELEPHANT IN THE ROOM
Slide 17: If it quacks like a duck… negative prices
If it quacks like a duck… the whacky world of negative prices • In February 2008, an enterprising team of analysts at the US Department of Energy’s National Renewables Energy Laboratory (NREL) published a prophetic piece of research which foreshadowed the logical outcomes associated with adding incr
Slide 18: And the loss of inertia… conjuring up inertia is tough
And the loss of inertia… conjuring up inertia is tough • The result is the loss of inertia, i.e., grid stability/reliability evaporates. Our toolbox is very limited: ― Grid operators regularly curtail renewables (okay for large scale installations but rooftop solar a presents challenges); r ti ne ―
Slide 19: And there’s more… Australia’s Net Zero by 2050 Plan
And there’s more… Australia’s Net Zero by 2050 Plan • Australia has embarked on a plan to decarbonise by 2050 (Net Zero Plan). If emissions reductions milestones are to be met, electricity generation will have to be extended beyond its current uses to cover most of the energy required in transport a
Slide 20: The puzzle of an emissions free grid… summing up the challenges
The puzzle of an emissions free grid… summing up the challenges • Current renewables generation • Continued penetration of numbers renewables limited by: ― 20% of NEM load ― Operational and ― 35% of generation capacity BUT regulatory hurdles due to intermittency ― 2.4 million solar PV systems delive
Slide 21: The Solution… Long Duration Energy Storage
The Solution… Long Duration Energy Storage • LDES delivers dispatchable generation, maintains grid stability and enables the acceleration of renewables penetration within the grid 1600 IMPACT OF SUNLANDS TECHNOLOGY • QGL joint venture partner Sunlands Co.’s 1400 LDES technology uniquely positions it
Slide 22: Long Duration Energy Storage... size of the market
Long Duration Energy Storage... size of the market • IRENA estimates the market to according to IRENA’s Paris Agreement-aligned Figure 3: Installed TES capacity projections according to IRENA’s Paris Agreement-aligned grow 20x within the decade Transforming Energy Scenario Co • Following Glasgow (CO
Slide 23: Quantum Sunlands Partnership… economics
Quantum Sunlands Partnership… economics • The Quantum Sunlands Partnership (QSP) is the exclusive manufacturer of the natural flake thermal storage media required by Sunlands Co.’s energy Superior Economics storage cells Operational and Sustainable Control Performance • This is big business – compar
Slide 24: Where to from here…
Where to from here… Quantum Graphite Limited Quantum Sunlands Partnership • Complete offtake negotiations and conclude • Complete TU Freiburg test work binding agreements • Construct thermal energy storage cell pilot • Complete financing of Uley 2 including funding • Conclude negotiations with key i
Slide 25: Questions...
QUESTIONS...
Slide 26: Disclaimer
QUANTUM GRAPHITE Disclaimer This presentation includes certain statements that may be deemed forward-looking statements. All statements ln these presentation materials (other than statements of historical facts) which address future production, reserve potential, exploration activities and events or
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