Neometals Ltd · ASX:NMT
Neometals — Diggers & Dealers 2016
46 slides from Neometals's conference presentation, Aug 1, 2016
Slide 1: Diggers Presentation
For personal use only Diggers Presentation ASX Code: NMT August 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 unfranked div – April ‘16 A$5M/5% on market buyback 3
Slide 4: Corporate Details
Corporate Details For personal use only ASX CODE: NMT OTC:RDRUY 12 MONTH SHARE PRICE Last close (20‐July‐2016) A$ 0.395 60 Shares on issue m 563 50 40 Market capitalisation A$m 222 30 Net Cash (30‐June‐2016) A$m 79.2 20 Enterprise value A$m 143 10 0 DIRECTORS/MANAGEMENT Jul-15 Oct-15 Jan-16 Apr-16 J
Slide 5: Operating structure
Operating structure For personal use only Neometals Ltd (ASX:NMT) LITHIUM TITANIUM Under sale contract 13.8% 70% 100% 100% Reed 43.1% 30% 30% Reed Reed Alphamet Australian Industrial Mineral Advanced Exploration Management Titanium Minerals Resources Ltd Materials Pty Ltd Pty Ltd Pty Ltd Pty Ltd Pty
Slide 6: For personal use only
6 For personal use only + = + =
Slide 7: Demand Fundamentals
Demand Fundamentals For personal use only + = 7
Slide 8: Demand Growth - Electric Vehicles
Demand Growth - Electric Vehicles For personal use only + = 8
Slide 9: Demand Growth – Stationary Storage
Demand Growth – Stationary Storage For personal use only + = 9
Slide 10: Demand Fundamentals – Price Inelasticity
Demand Fundamentals – Price Inelasticity For personal use only + = 10
Slide 11: Supply Fundamentals
Supply Fundamentals For personal use only Brines have larger Capex/lead times of +5 years Chinese converters have lead times of 1 year + = 11
Slide 12: Strong demand – constrained supply
Strong demand – constrained supply For personal use only + = 12
Slide 13: Lithium Concentrate Prices
Lithium Concentrate Prices For personal use only
Slide 14: LT Demand Fundamentals
LT Demand Fundamentals For personal use only + = 14
Slide 15: Mt Marion Lithium Project
For personal use only Mt Marion Lithium Project 13.8% Neometals Ltd 43.1% Ganfeng Lithium 43.1% and Operator Mineral Resources Ltd (ASX:MIN) + = 15
Slide 16: 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 + = 16
Slide 17: 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$20M Letter of Credit (100% payment on shipping) Ability for MIN/Neometals to take equity share of produc
Slide 18: Flythrough
For personal use only 18 Flythrough + =
Slide 19: Deposit
For personal use only 19 Deposit 1 + =
Slide 20: Site layout
For personal use only 20 Site layout + =
Slide 21: Crushing & Screening
Crushing & Screening For personal use only + = 21
Slide 22: Beneficiation
For personal use only 22 Beneficiation + =
Slide 23: Mt Marion Resource – July '16
Mt Marion Resource – July ‘16 60.5 Mt @ 1.36% Li2O at 0.3% Li2O cut-off For personal use only Figure may not sum due to rounding Significant figures do not imply an added level of precision + = 23
Slide 24: Project milestones
Project milestones For personal use only Commence Commence First Commence Crushing Coarse Shipment Fines Circuit Circuit Q2 CY16 Q3 CY16 Q4 CY16 Q1 CY17 New Updated Maiden Final Resource Resource Reserve Resource July 2016 Aug 2016 Sep 2016 Oct 2016 + = 24
Slide 25: Downstream processing
For personal use only Downstream processing Lithium Hydroxide (LiOH) 70% Neometals Ltd 30% Mineral Resources Ltd
Slide 26: Strategy
For personal use only Strategy
Slide 27: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 27
Slide 28: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 28
Slide 29: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 29
Slide 30: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only PFS FS Life of Plant (LOP) 20 years 20 years Pre-production Capital cost US$ 83 million* US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 63 million US$ 82 million Pre-tax Internal Rate of Return 94% 51% Pre-tax NPV (12% real di
Slide 31: Commercialisation Plan
Commercialisation Plan For personal use only FEED (FEL4) Complete Pilot Plant & Final Feasibility Hydromet & Investment Study Electrolysis* Decision* July 2016 2016/17 Dec 2017 (*) Subject to RAM Board Approval + = 31
Slide 32: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Plant FEED Study Commence Completed On ROM & Final Conversion Feasibility Concentrates* Investment Mt Marion Study Decision* Offtake** July CY16 FY 2017 Dec 2017 2020 (*) Subject to RAM Board Approval (**) Subject to FID + = 32
Slide 33: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 33
Slide 34: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 34 Sources: Company Reports
Slide 35: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 35 Sources: Company Reports
Slide 36: 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/Con & Purification Fine Pigment Pigment Cost Cost US$1,214/t US$2,100 - US$572/t 2,300/t Mini-pilot scale testing in
Slide 37: Licenced low-cost Technology
Licenced low-cost Technology For personal use only + = 37
Slide 38: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 38 Sources: Company Reports
Slide 39: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost [1 A$ 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 40: 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 + = 40
Slide 41: Investment Proposition
For personal use only 41 Investment Proposition + = 41
Slide 42: Lithium : Cash and cashflow
Lithium : Cash and cashflow For personal use only 03 02 Potential to further expand 01 13.8% share of production and/or ~A$78M plus Production + increased cashflows from new production + value-add through conversion to commencing level-400,000tpa LiOH Q4-2016 + = 42
Slide 43: Titanium : A growth story for 2017
Titanium : A growth story for 2017 For personal use only 03 01 02 Demonstrate Pigment Quality Demonstrated Technical + Demonstrated Economic + & Obtain Strong Partners Feasibility Viability to Commercialise + = 43
Slide 44: Thank you
For personal use only Thank you www.neometals.com.au + = 44
Slide 45: Mineral Resource Estimate
Mineral Resource Estimate for the Mt Marion Lithium deposit, as at July 2016, for a block cut‐off grade of 0.3% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 18.5 1.38 1.09 Area 4 0.9 1.24 1.03 Area 6 7.0 1.22 1.09 Indicated Total 26.4 1.33 1.09 Infe
Slide 46: Mineral Resource Estimate
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