Core Lithium Ltd · ASX:CXO
Core Lithium — Diggers & Dealers 2018
27 slides from Core Lithium's conference presentation, Aug 6, 2018
Slide 1: Diggers & Dealers: Finniss Lithium Project
For personal use only DIGGERS & DEALERS FINNISS LITHIUM PROJECT August 2018 ASX:CXO ASX:CXO
Slide 2: Disclaimer
DISCLAIMER For personal use only The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes Cautionary Statement: The PFS results are based upon the updated Grants Mineral Resource of 8 May 2018 (ASX announcement 8 May 2018). The Mineral Resource contains Indicated and Inferred material (see Table 5 in section 3.1 below – 37% Inferred material and 63% Indicat
Slide 4: Grants Pre-Feasibility Study Highlights
Grants Pre-Feasibility Study Highlights For personal use only • CXO on pathway to low-capex lithium concentrate production near Darwin - targeting late 2019 • Development of the high grade (1.5%) Grants deposit only modelled in the PFS • Preliminary Feasibility Study (PFS) delivers strong financial
Slide 5: For personal use only
rfront EastArm Porte \ a GRE & Fm 2 Middle Arm Industrial’e — FOr personal a
Slide 6: Grants Deposit Pre-Feasibility Study Key Metrics
For personal use only Grants Deposit Pre-Feasibility Study Key Metrics CORE EXPLORATION ASX:CXO
Slide 7: Company Information
Company Information For personal use only Shares Price A$ ~$0.05 Shares on issue ~633.5M Market cap ~$32M Cash (30/6/2018) ~$8M Enterprise Value ~$24M Directors Management Stephen Biggins Blair Duncan Managing Director ex SAU, IVR General Manager Development Greg English David Rawlings Chairman AXE,
Slide 8: Finniss Lithium Project
Finniss Lithium Project For personal use only Core’s dominant position in this emerging lithium province • First mover advantage • One of Australia's highest grade lithium resources • Over 100 historic pegmatite occurrences • Large area ~500km2 of tenements • Granted Mining Lease over historic pegma
Slide 9: Proposed Site Layout
Proposed Site Layout For personal use only CORE EXPLORATION ASX:CXO
Slide 10: Capital Costs
Capital Costs For personal use only Capital Estimate – A$’000 Mobilisation $ 1,943 Site Establishment $ 562 Groundwater Management $ 55 Mine Development (Clear & grub) $ 997 Demobilisation $ 948 Rehabilitation $ 584 DMS Plant $ 20,046 TSF $ 1,725 Sustaining Capital $ 2,300 Pre-production Capital $ 2
Slide 11: Operating Costs
Operating Costs For personal use only Operating Unit Costs Mining Costs Mining Costs – Contractor $ 186.17 Mining Costs – Owner $ 22.53 Sub-total $ 208.70 Processing $ 71.19 Hauling $ 11.47 General & Administration $ 8.00 Port Costs $ 7.50 A$ 306.86 / t conc. Total Unit Operating Cost US$ 230.15 / t
Slide 12: Exceptional Economics
Exceptional Economics For personal use only $1,000.00 • Globally competitive, low operating costs $900.00 provide the framework for strong SPODUMENE CONCENTRATE PRICE (US$/T) $800.00 $700.00 68% 68% operating profits Operating Margin of $600.00 $500.00 57%57% Operating US$616/tMargin conc. of US$616
Slide 13: Strong Cash Generation
Strong Cash Generation For personal use only • $53.5 million capex will deliver close to $170 million in free cash over 26 months • Rapid payback <12 months • Does not factor in any upside from processing additional ore sources the may be delineated within the Finniss Project CORE EXPLORATION ASX:CX
Slide 14: Significant Upside Potential
Significant Upside Potential For personal use only • PFS focussed on Grants only • Significant upside potential through addition of other ore sources within the Finniss Project • The incremental value of additional ore sources is very high given no need for additional process plant infrastructure •
Slide 15: Countdown to First Lithium Production
Countdown to First Lithium Production For personal use only PFS Feasibility Study Financing & Offtake Environmental & Approvals FID Mining & Construction June Sept Dec Mar June 2018 2018 2018 2019 2019 CORE EXPLORATION ASX:CXO
Slide 16: Binding Lithium Offtake and US$20M Pre-Payment
BINDING LITHIUM OFFTAKE For personal use only AND US$20M PRE-PAYMENT Core has signed a binding offtake and US$20 million pre-payment agreement with Yahua • Binding offtake and pre-payment agreements signed with Yahua ($2B market cap) • Yahua is one of China’s largest lithium producers • Offtake agre
Slide 17: US$35 Million Pre-Payment and Concentrate Offtake
US$35 MILLION PRE-PAYMENT For personal use only AND CONCENTRATE OFFTAKE Core has signed a non-binding Term Sheet with Shandong Ruifu Lithium Co Ltd • Up to 150,000 tonnes lithium concentrate offtake per year from Core’s Finniss Lithium Project • Ruifu is one of China’s largest lithium hydroxide and
Slide 18: Improved Recovery of High-Grade Lithium in Metallurgical Results
IMPROVED RECOVERY OF For personal use only HIGH-GRADE LITHIUM IN METALLURGICAL RESULTS PFS New Results Concentrate 5.0% 5.5% 6.1% Grade (Li2O) • Recent metallurgical testwork shows a strong improvement in the Recovery 76% 79% 69% assumptions (2017) utilised in the PFS, with up to 79% lithium recover
Slide 19: 2018 Drilling Targeting Substantial Resource Growth
2018 DRILLING For personal use only TARGETING SUBSTANTIAL RESOURCE GROWTH • Upcoming exploration and aggressive drill programs in 2018 to target growth in the resource base to support a long-life lithium production hub at Finniss Project • Core’s exploration has discovered some of the highest grade
Slide 20: Grants Expanding: 67m @ 1.6% Intersection Outside Resource
GRANTS EXPANDING For personal use only 67M @ 1.6% INTERSECTION OUTSIDE RESOURCE • Multiple new high-grade lithium intersections outside the Mineral Resource at Grants include: • 67m @ 1.57% Li2O from 191m in FRC151 • Including 16m @ 2.17% Li2O • And 12m @ 2.08% Li2O • 45m @ 1.72% Li2O from 188m in F
Slide 21: BP33 Expanding: 55m @ 2.0% Spodumene Pegmatite Intersection
BP33 EXPANDING 55M @ 2.0% SPODUMENE For personal use only PEGMATITE DRILL INTERSECTION • Wide and high-grade lithium assays returned from drilling at BP33 prospect delivers spodumene intersection amongst the best in Australia: • 75m @ 1.68% Li2O from 210m*; including: • 55m @ 1.97% Li2O from 230; •
Slide 22: New Shallow Dipping, High Grade Stacked Pegmatite Targets
NEW SHALLOW DIPPING, For personal use only HIGH GRADE MULTIPLE STACKED PEGMATITE TARGETS • Alternate mining scenarios • Drilling of these new spodumene pegmatite targets at start of 2018 dry season • Also many more pegmatites to revisit and test on large 500km2 project area in 2018, including recent
Slide 23: Project Infrastructure Advantage
PROJECT INFRASTRUCTURE ADVANTAGE For personal use only Potentially best logistics chain to China of any Australian lithium project Darwin Port located close to Grants 88km route is on all Northern Territory Government roads licenced for road trains Bitumen (black top) all the way Grants is close to
Slide 24: Darwin Port Agreement
DARWIN PORT AGREEMENT For personal use only CORE HAS AGREEMENT WITH DARWIN PORT TO SHIP 1MTPA OF SPODUMENE • Heads of Agreement signed with Darwin Port in respect of potential export of lithium products from Grants • Agreement provides Core with capacity to export up to 1Mtpa of spodumene direct shi
Slide 25: ASX Lithium Sector Comparative Market Cap
ASX LITHIUM SECTOR COMPARATIVE MARKET CAP For personal use only $3.3bn $1.5bn $1.5bn $1.4bn $1,000 $900 Market Cap (millions) 30/06/18 $800 $700 $600 $500 $400 $300 $200 $100 $- MIN ORE PLS GXY AJM KDR GSC TAW NMT BGS SYA PSC PLL EMH LTR CXO EVZ NLI PLY CORE EXPLORATION ASX:CXO
Slide 26: Finniss Lithium Project on Pathway to Production
Finniss Lithium Project on Pathway to Production For personal use only • Core’s development of the Finniss Project is unlocking a new lithium rich province in the Bynoe Pegmatite Field, near Darwin, NT • Preliminary Feasibility Study (PFS) now completed, and Definitive Feasibility Study (DFS) schedu
Slide 27: Thank You
THANK YOU For personal use only For more information: Stephen Biggins Managing Director +61 8 7324 2987 For broker and media enquiries: Warrick Hazeldine +61 417 944 616 Andrew Rowell +61 400 466 226 Cannings Purple