Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Corporate Update (October 2021)
37 slides from Lake Resources N.l's corporate update, Oct 26, 2021
Slide 1: Direct Lithium Extraction & Project Finance - Kachi Lithium Project Webinar
26 October 2021 ASX:LKE | FRA:LK1 | OTC:LLKKF Direct Lithium Extraction & Project Finance Kachi Lithium Project - Webinar Steve Promnitz - Managing Director, Lake Resources
Slide 2: Disclaimer
Disclaimer General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings with sophisticated and Certain statements contained in this presentation, including information as to the future fin
Slide 3: World's cleanest lithium
World’s cleanest lithium. Four lithium projects in heart of the Lithium Triangle. Large leaseholding 2,200km2 (550,000 acres) World’s five largest producers all have equity in operations in the Lithium Triangle. Lake’s flagship project ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 3
Slide 4: Lake Resources - World's Cleanest Lithium
Lake Resources - World’s Cleanest Lithium. 99.97% • CLEANER LITHIUM – Lake’s 99.97% purity product - far lower impurities vs 99.5% battery grade lithium carbonate. Higher purity lithium = higher battery performance. • CLEANER TECHNOLOGY: Lilac direct lithium extraction – High Purity lithium carbonat
Slide 5: Process and ESG Benefits – Cleaner Technology
Process and ESG Benefits – Cleaner Technology Process – Lilac’s Ion Exchange Direct Lithium Extraction ESG benefits – Low Carbon, Low Land & Water Use ASX: LKE OTC: LLKF SLIDE / 5
Slide 6: Direct Lithium Extraction: Cleaner technology
Direct Lithium Extraction 1st Century technology Lilac Solutions - Cleaner technology Lilac direct extraction displaces evaporation process Brine in – Lithium chloride out • High purity • Faster process • High recovery 21st Century technology • Sustainable – No brine heating • Cost competitive – Dur
Slide 7: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller environment footprint – Low Land use - Lower water use – No brine depletion Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (1km2) Brine Returned to Source All Brine Evaporated Source: SQM / ALB presentations 2020; 170km2 for c.80,0
Slide 8: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller environment footprint – Lower land use Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (<1km2) <1km2 wide 170km2 Source: SQM / ALB presentations 2020; 170km2 for c.80,000 tpa LCE. Lake/Lilac/Hatch estimates inASX: PFS LKE (excluding
Slide 9: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller carbon footprint – Lower greenhouse gases Kg CO2e/kg product Li Hydroxide LCE from Hard Rock Spodumene Li Carbonate LCE from Brine 14 - 18.2 4-5 Li Carbonate LCE from Lake/Lilac DLE Also expected to be low Note: Hard Rock = Spodumene converted to Lithium Hydrox
Slide 10: Sustainable lithium CO2e/kg lithium product
Sustainable lithium 20 CO2 e Footprint Lake / Lilac DLE method Lithium Production CO2e/kg lithium product 15 • Low CO2 footprint 10 Lake / Lilac • Low water usage DLE method 5 • Low land use 0 Production type: Hard Rock Evaporation DLE Hard Rock to Li Hydroxide Brine Evaporation to Li Carbonate Brin
Slide 11: Project – Large, Scalable - On Path to Production
Project – Large, Scalable - On Path to Production Lilac Solutions – Earn-in to Project & Tech sector backers Kachi Project – Top 10 Lithium Brine Resource - Scalable, as Control Entire Basin – Upside - Expansion study to 51,000 tpa LCE ASX: LKE OTC: LLKF SLIDE / 11
Slide 12: Partnership - Lilac Solutions + Kachi Project
Partnership- Lilac Solutions + Kachi Project Aligns Climate Tech with Upstream Lithium Supply • Lilac to Earn in to Kachi Project up to max 25% stake – via performance based milestones § Initial 10% - Lilac funds completion of testing of its technology for the Kachi Project § Further 10% - Lilac fun
Slide 13: Lilac Solutions – Lead Investors
Lilac Solutions – Lead Investors Successful Tech Investor Backing with EV supply chain participants – Recent US$150m investment ASX: LKE OTC: LLKF SLIDE / 13
Slide 14: Kachi project
Kachi project. Large, scalable resource 25 years production uses 20% of resource. • Drilling to upgrade resource for expansion; resource open laterally and at depth • Kachi lease – 740 sq km (185,000 acres) • One of 10 largest brine resources globally – total JORC resource 4.4Mt LCE • Production 25,
Slide 15: Kachi Project
FMC/Livent (80km to Nth) Orocobre - Galaxy POSCO Producing since 1997 (110km to Nth East) (120km to Nth East) Evaporation ponds 4.1 Mt LCE Resource 4.1 Mt LCE Resource 17,000tpa LCE Paid US$280m Lithium Carbonate Lithium Hydroxide Kachi Project. Lease – 74,000ha Exploration Target Lease area 8Mt – 1
Slide 16: Kachi project proposed plant design
Kachi project Proposed plant design One building with Ion Exchange Modules Replaces 20-30km2 of Evaporation Ponds ~500m Warehouse, reagents Chlor Alkali Plant Bagging Plant and storage Impurity Removal Direct Extraction (Lilac IX Plant) and water treatment F E A D C G B Lithium Production Eluate Con
Slide 17: Clearer pathway
Expansion Study* Clearer pathway (to Double Production to 51,000tpa) Simple production scale-up - Modular 51,000tpa LCE Production Scale (PFS) (50+ Modules) Lilac Pilot / 25,500tpa Demo Plant (1-2 Modules) LCE ~10tpa LCE 1000 hours * Note: Expansion Study requires drilling (underway) to upgrade more
Slide 18: Market needs 10x to 18x more lithium production by 2030
Market needs 10x to 18x more lithium production by 2030. Battery mega-factory growth 247 battery factories planned for 2030 151 operating by end 2021 247 • Lithium added to critical raw materials 240 list for the first time in 2020 210 180 • Lithium-ion batteries represent one of 150 151 the 21st Ce
Slide 19: Project Finance – Robust Project Support
Project Finance – Robust Project Support Robust Project – PFS Results - High cashflow, High margin Debt Finance – 70% Indicative – Long term, Low interest - Support from UK and Canada govt ECA’s Solid Equity Position – LKE cash position with Lilac commitment ASX: LKE OTC: LLKF SLIDE / 19
Slide 20: Kachi PFS metrics
Kachi PFS metrics Compelling economics Pre-Feasibility Study results Mineral Resource* (Indicated) Annual production Li2CO3 Annual EBITDA Project life Expansion Study Underway 1.01Mt 25,500tpa US$260m 25+ years 51,000tpa# CAPEX Cash cost Annual operating costs Project Finance US$544m US$4,178/t US$1
Slide 21: Direct extraction: Premium price – very high margin
Direct extraction Premium price – very high margin Lake premium grade LCE price US$17,000 - 25,000/t Lake’s direct US$4,100/t extraction Opex Margin Brine - US$3,750 – Margin Battery grade LCE price evaporation 4,200/t US$13,000 – 20,000/t Technical grade LCE price US$8,000 - 12,500/t Hard rock US$4
Slide 22: Lake's high purity lithium tested and proven in batteries
Clearer pathway Lake’s high purity lithium tested and proven in batteries Lake Lithium Carbonate High Purity Lake’s lithium carbonate demonstrated in batteries • Lake's product - premium battery quality • Performs like Tier 1 products in NMC622 batteries • Only 50-60% of lithium production is batter
Slide 23: Kachi Project Finance Support
Kachi Project Finance Support UK Export Finance & Canada EDC – Export Credit Agencies Support Expression of Interest - Funding to ~70% of Total Required – including Expansion Project Finance CAPEX Debt Duration UK Export Finance provided ~70% debt## US$544m 10-11 years* Expression of Interest to sup
Slide 24: Corporate snapshot
Corporate snapshot Funded to FID Share price Cash 30 June 2021 Half year share price chart A$0.73 US$0.55 A$26m ~A$60m Target Oct’21 25 Oct 2021 (10 day VWAP) 52 week high $0.94c, low $0.05c US$19.2m option convert Shares on issue Debt 1.21bn Zero Market capitalisation Unlisted Options A$880m 35.7m
Slide 25: Timeline – to Production; Other Catalysts
Timeline – to Production; Other Catalysts Timeline – FID mid next year Catalysts - Completion of studies; Offtake agreements - Other Projects ASX: LKE OTC: LLKF SLIDE / 25
Slide 26: Project Production Timeline
Project Production Timeline 2021 – Q2, 2022 2021 – Q2, 2022 2021 – Q2, 2022 Q3,Q4 2022 DFS Demonstration Financing Construction / ESIA Plant Production Definitive Feasibility Q1,2022 Demo Plant Onsite Project Finance Mid-Late 2022 Approvals/ Study 2021-22 Samples in Batteries Export Credit Agencies
Slide 27: Clean Independent Producer Benefits
Clean Independent Producer Benefits Few Independent Producers Unallocated Offtake in High Demand Lake to become an Independent Producer • Most producers tied to either China’s battery supply chain or tied to one offtaker potentially at long term lower pricing without flexibility • Market needs scala
Slide 28: Underinvestment in new supply. Price moving up.
Underinvestment in new supply. Price moving up. Lithium battery demand 247 Megafactories operating at 100% capacity (4.5 TWh) • Lithium carbonate prices have tripled over past year 3,000,000 Lithium Battery Demand: 2030 Tonnes per annum • 8 to 18 times more lithium production 2,000,000 needed by 203
Slide 29: Cauchari project / Olaroz Project
Cauchari project / Olaroz Project Next lithium projects through development Cauchari - Identical lithium brines as adjoining Ganfeng/ Lithium Americas development Lake’s brines being tested for direct lithium extraction Cauchari and Olaroz - Scoping study and resource drilling planned for 2021/22 Ga
Slide 30: Cauchari Project
Cauchari Project. Next to world's largest lithium brine resource:- Plant under Construction 23.0 Mt LCE (Ganfeng LAC) * 6.3 Mt LCE (Orocobre). Ganfeng LAC -production 2022 at 40,000 tpa LCE, expanding to 60,000 tpa LCE Ganfeng paid US$397million for 50% 6.3 since Aug 2018 – 2020 (debt + equity) ASX:
Slide 31: Olaroz Project
Olaroz Project. 30km likely extension. Source: Jujuy Registro Grafico; Company disclosures SLIDE / 31
Slide 32: Leadership
Leadership Board has extensive background in resources sector, backed by experienced on-site team in Argentina. Steve Promnitz Stu Crow Dr Nicholas Lindsay Dr Robert Trzebski Sra Amalia Saenz CEO & MANAGING DIRECTOR CHAIRMAN NON-EXEC EXEC TECHNICAL DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR Extens
Slide 33: Significant Upside
Significant Upside Lithium Developer Peers Market Value vs Brine Resource • Lake Trading ~35% NPV8 (w/o expansion) Developers Lake Resources Brine Resource Mt LCE vs Peers 60-100+% NPV8 1800 Standard Lithium 1600 SLI:NYSE • Lake Market Value A$880m 1400 14 vs DLE Peers at A$2200m (SLI.NYSE) 12 1200
Slide 34: Cleaner Lithium for an Electric World
CLEANER LITHIUM FOR AN ELECTRIC WORLD • World’s highest purity lithium • Technology-led direct extraction • Major ESG benefits • New independent clean producer – at scale Steve Promnitz - Managing Director steve@lakeresources.com.au +61 2 9188 7864 lakeresources.com.au ASX: LKE OTC: LLKKF SLIDE / 34
Slide 35: Appendices
Appendices ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 35
Slide 36: Mineral Resource (JORC Code 2012) Kachi Project
Mineral Resource (JORC Code 2012) Kachi Project Lithium carbonate equivalent (LCE) Indicated Inferred Total Resource Lake Lithium Carbonate High Purity 1.0Mt 3.4Mt 4.4Mt KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resource Area, km 2 17.1 158
Slide 37: JORC Code 2012 Appendix - Kachi Project
JORC Code 2012 Appendix 1 - Kachi Project ASX: LKE OTC: LLKKF SLIDE / 37
Lake Resources N.L. — Corporate Update (October 2021) on 6ix