Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (November 2018)
45 slides from Neometals's investor presentation, Nov 19, 2018
Slide 1: Investor Presentation – November 2018
For personal use only All the right elements ® Investor Presentation – November 2018 ASX Code: NMT OTC/Nasdaq Intl: RDRUY + Ti/V = 1
Slide 2: Disclaimer
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 i
Slide 3: Who is Neometals Today?
Who is Neometals Today? For personal use only Neometals is an ASX-listed (ASX:NMT) industrial minerals and advanced materials project development company with a clear growth plan to move downstream and increase margins from its sustainable products and related technologies. Integrated Lithium Busine
Slide 4: Company Snapshot
Company Snapshot For personal use only ASX: NMT OTC:RDRUY 12 Month Share Price Performance Shares on Issue1 m 543.9 0.50 14.0 Volume (m) Price (A$) Share Price (15-Nov-18) A$ 0.235 12.0 Market capitalisation A$m 128.0 0.45 Cash (30-Sep-18) A$m 30.4 10.0 0.40 Debt (30-Sep-18) A$m - 8.0 Investments (3
Slide 5: Long-term Strategy
Long-term Strategy For personal use only Over the last 3 financial years, Neometals has returned ~A$28m in 3 consecutive dividends and ~A$6m in an on-market share buyback. To develop a portfolio of 1 globally significant materials for a sustainable Li + Ti/V future Leverage operating cashflows to dr
Slide 6: Barrambie Demerger
Barrambie Demerger For personal use only Neometals plans to demerge its Barrambie Titanium-Vanadium Project (“Barrambie”) and associated technology assets into a new ASX-listed company (“NewCo”). • Neometals to demerge Barrambie and non-lithium processing technology assets, subject to shareholder an
Slide 7: Why Demerge?
Why Demerge? For personal use only • Allows each Company to focus separately on distinct development strategies • Creates effective platform/s to unlock full value of assets • Capital markets gain clarity with simplified commodity focus and corporate structure/s • Integrated lithium business mature
Slide 8: Post-Demerger Structure Overview
Post-Demerger Structure Overview For personal use only Two focused entities will be created through the demerger. Simplified and focused corporate structures going forward Neometals Ltd (ASX:NMT) NewCo 13.8% 100% 100% 100% 36% 70% 100% Kalgoorlie Lithium Mount Lithium Lithium Barrambie Mount Marion
Slide 9: NewCo – Titanium & Vanadium
Ti/V For personal use only NewCo – Titanium & Vanadium + Ti/V = 9
Slide 10: Barrambie VTM Project
Barrambie VTM Project Ti/V For personal use only One of the highest grade hard-rock Titanium assets & one of the largest Vanadium projects globally • 100% Owned • Located 80km north-west of Sandstone, WA • A$30M spent to date, +1,000 RC/Diamond holes drilled for ~55,000m • Unique project with grade
Slide 11: Barrambie Flythrough
Barrambie Flythrough Ti/V For personal use only https://youtu.be/w-ndAfGSBeM + Ti/V = 11
Slide 12: Large scale project with distinct zones
Large scale project with distinct zones Ti/V For personal use only Distinct Zones and Co Products - Eastern and Central deposits are markedly higher grade for titanium and vanadium respectively + Ti/V = 12
Slide 13: Globally Significant Resource
Globally Significant Resource Ti/V For personal use only Refer to further information on this comparison data in slide 44 and the Announcement titled “Neometals Commences Update of Barrambie DFS” dated 16 November 2018 and available at + Ti/V = https://www.neometals.com.au/reports/848-20181116Barram
Slide 14: Products, Players & Applications
Products, Players & Applications Ti/V For personal use only + Ti/V = 14
Slide 15: Strong Long Term Demand And Supply Fundamentals
Strong Long Term Demand Ti/V And Supply Fundamentals For personal use only Source: Metal Bulletin (17-Jul-18), Industrial Minerals (19-Jul-18), TZMI Management Estimates 2018, TTP Squared (Jul-18) + Ti/V = 15
Slide 16: Strong V and Stable TiO2 Prices
Strong V and Stable TiO2 Prices Ti/V For personal use only Source: Metal Bulletin (17-Jul-18), Industrial Minerals (19-Jul-18), TZMI Management Estimates 2018, TTP Squared (Jul-18) + Ti/V = 16
Slide 17: Development Strategy
Development Strategy Ti/V For personal use only Updated DFS will evaluate the option to produce intermediate products (DSO and concentrates) in addition to fully integrated vanadium chemical production. Refer to accouncement titled “Barrambie Vanadium Project – DFS Completion and Outcomes” dated 5 M
Slide 18: Staged Development Optionality
Staged Development Optionality Ti/V For personal use only Phase 3 Construct Refinery and produce FeV or V2O5 Phase 2 • Longer-term cashflow from integrated vanadium chemical production Build concentrator and • Salt roast leach process produce concentrate • Full exposure to V pricing • Mining and con
Slide 19: DFS also considers fast-track DSO and concentrate export operations
DFS also considers fast-track DSO and concentrate export operations Ti/V For personal use only + Ti/V = 19
Slide 20: 2009 DFS Results
2009 DFS Results Ti/V For personal use only Average Annual Production Average Operating Costs 6,160 tonnes Vanadium <US$20/kg Vanadium As 7,700t of Ferrovanadium (FeV80) Lowest Quartile Containing 11,200t V2O5 equivalent Direct Construction Costs Mine Life A$456M 12 years Pre-commissoning, Owners Co
Slide 21: Cost Competitive
Cost Competitive Ti/V For personal use only + Ti/V = 21
Slide 22: Exploration Potential
Exploration Potential Ti/V For personal use only Exploration Target (as of April 2018) = 470-700Mt @ 0.3 - 0.5% V2O5 Refer to further information on this comparison data in slide 45 and announcement titled “Barrambie Project – Mineral Resource Estimate” dated 17 April 2018 and + Ti/V = available at
Slide 23: Indicative Project Milestones
Indicative Project Milestones Ti/V For personal use only DecQ18 2019/20 2020/21 2021/22 + Ti/V = 23
Slide 24: Neometals – Post Demerger Integrated Lithium Business
For personal use only Neometals – Post Demerger Integrated Lithium Business • Mt Marion Lithium Mine • Kalgoorlie Lithium Refinery Project • Lithium Ion Battery Recycling Project • Mt Edwards Lithium Exploration Project + Ti/V = 24
Slide 25: Integrated Lithium Strategy
Integrated Lithium Strategy For personal use only Neometals’ integrated lithium strategy is based on (1) mining and producing spodumene concentrate, (2) refining spodumene to lithium compounds, and (3) recycling lithium batteries to recover battery metals. Sales Li-ion Battery • Downstream integrati
Slide 26: Mt Marion Lithium Mine
Mt Marion Lithium Mine For personal use only The Mount Marion Lithium mine is a Tier 1, hard-rock lithium production mine located ~40km south west of Kalgoorlie, Western Australia. • Owned by Reed Industrial Minerals (“RIM”) Mt Marion Mineral Resource Estimate at 30 September 2018 • Ganfeng Lithium
Slide 27: Mt Marion Flythrough
Mt Marion Flythrough For personal use only https://youtu.be/bURbqLDeWs8 + Ti/V = 27
Slide 28: Kalgoorlie Lithium Refinery (KLR)
Kalgoorlie Lithium Refinery (KLR) For personal use only Neometals is progressing technical and commercial feasibility of a lithium chemicals refinery in Kalgoorlie, with an initial production capacity of 10ktpa of LiOH. • Propose to utilise a modern, conventional direct- conversion sulphate process
Slide 29: KLR Flythrough
KLR Flythrough For personal use only https://youtu.be/CqlpCWY5e5M + Ti/V = 29
Slide 30: Kalgoorlie Lithium Refinery
Kalgoorlie Lithium Refinery For personal use only • Proposed site located 5km from Kalgoorlie township, 70km by road from Mt Marion: - Neometals granted 2 year option to lease 40 hectare site (with provision for 2 year extension) - Nominal rents and rates • The City of Kalgoorlie-Boulder providing a
Slide 31: KLR Project Timeline
KLR Project Timeline For personal use only Partner/ M+W Feasibility Offtake & Design & FEED Study Results Final Construct** Commission** Study Results Investment Decision MarQ 2018 JunQ 2019 JuneQ 2019 FY 19/20/21 Mid CY21 (*) Subject to NMT Board Approval (**) Subject to FID + Ti/V = 31
Slide 32: Lithium Battery Recycling
Lithium Battery Recycling For personal use only Neometals is developing a sustainable technology to economically recover critical metals from spent lithium ion batteries. • Regulation driving ethical sourcing and disposal of lithium ion batteries • Urban mining opportunity to secure critical metals
Slide 33: 50tpd Shredder Acceptance Testing Video
50tpd Shredder Acceptance Testing Video For personal use only https://youtu.be/PJSMV3enSqg + Ti/V = 33
Slide 34: Battery Recycling Project Timeline
Battery Recycling Project Timeline For personal use only Pilot Pilot Pilot Commence FEED Commercial Plant Plant Plant FEED Study Plant (*) Canada Canada Canada Study Results & Fabrication / FID Construct Comminution Leaching Recovery Dec 19 Jan/Feb 19 Mar/April 19 April 19 July 19 FY’s 19 & 20 (*) S
Slide 35: Mt Edwards Lithium Project
Mt Edwards Lithium Project For personal use only • Brownfields lithium exploration project • Located 80km south of Kalgoorlie, and 40km south of the Mt Marion lithium mine • Tenements cover area of 240km2 across the highly prospective Widgiemooltha Dome • Historical exploration confirms the presence
Slide 36: Demerged Company Highlights
Ti/V Demerged Company Highlights For personal use only NewCo • Well funded with separate focus and dedicated management team • Potential near term revenue to finance integrated growth strategy • Advanced project with exceptional commodity market backdrop • Huge scale, high grades and mine location s
Slide 37: For personal use only
For personal use only 37 + Ti/V = + Ti/V =
Slide 38: Supporting Information
3 8 For personal use only SUPPORTING INFORMATION + Ti/V = 38
Slide 39: Neometals Board of Directors
Neometals Board of Directors For personal use only Steven Cole Chris Reed David Reed Natalia Streltsova Chairman Managing Director Non‐Executive Director Non‐Executive Director Steven has 35 years of Chris started in the mining David was a director and Natalia Streltsova is a PhD professional, corpo
Slide 40: Neometals Board of Directors Cont’d
Neometals Board of Directors Cont’d For personal use only Douglas Ritchie Les Guthrie Jennifer Purdie Non‐Executive Director Non‐Executive Director Non‐Executive Director Doug Ritchie is a senior resources Mr Guthrie B.Sc (Engineering industry executive with over 35 and Marketing) brings +40 years J
Slide 41: NewCo Executive Team
NewCo Executive Team Ti/V For personal use only Darren Townsend Paul Wallwork David Robinson Jason Carone CDO GM – Product Development GM – Metallurgy & IP Company Secretary & Marketing Darren is a Mining Paul has nearly 30 years New appointment Jason holds a Bachelor of Engineer with 20 years’ of e
Slide 42: Neometals Executive Team
Neometals Executive Team For personal use only Mike Tamlin Greg Hudson Jason Carone Gavin Beer Jeremy McManus COO GM ‐ Exploration CFO & Company Secretary GM – Process & Metallurgy GM – Commercial & IR Mike has over 35 years Greg has more than 18 Jason holds a Bachelor Gavin is a metallurgist with J
Slide 43: Barrambie JORC Mineral Resource
Barrambie JORC Mineral Resource Ti/V For personal use only + Ti/V = 43
Slide 44: Vanadium Deposit Comparison Data
Vanadium Deposit Comparison Data Ti/V Supporting Slide 13 For personal use only + Ti/V = 44
Slide 45: Barrambie JORC Exploration Target
Barrambie JORC Exploration Target Ti/V For personal use only + Ti/V = 45