Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Bloomberg / Benchmark Minerals World Tour NYC 2019
37 slides from Lake Resources N.l's conference presentation, May 6, 2019
Slide 1: Steve Promnitz, Managing Director
Steve Promnitz Managing Director ASX:LKE Bloomberg / Benchmark Minerals World Tour NYC 6 May 2019
Slide 2: Disclaimer
Disclaimer General Statement and Cautionary Statement This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings with sophisticated and professional investors, institutional investors and brokers and not any particular party. The information in this presen
Slide 3: At the Heart of the Lithium Triangle
At the Heart of the Lithium Triangle. Lake Resources is focused on the development of four lithium projects in the heart of the Lithium Triangle, which produces more than 50% of the world’s lithium (at the lowest cost). ASX:LKE SLIDE / 3
Slide 4: At the Heart of the Lithium Triangle
At the Heart of the Lithium Triangle. • Lake has the largest lease holdings of lithium in Argentina (200,000 ha). • Projects side-by-side with the lithium heavyweights. Neighbours’ market value ranges from $100m to $1,000m. • Developing a top 10 lithium brine resource while drilling next to the worl
Slide 5: Lithium demand
2500 Lithium demand First things first. 2018: 300 ‘000’s TONNES OF LITHIUM CARBONATE EQUIVALENT 2000 ‘000’s TONNES LCE Demand for lithium is 1500 forecast to increase 6x by 2030 due to EV’s & 1000 energy storage demonstrated by the >US$200 billion being 500 committed by automakers in electric vehicl
Slide 6: Lithium demand & supply
2500 Lithium demand & supply First things first. 2030: 2200 ‘000s TONNES OF LITHIUM CARBONATE EQUIVALENT 2000 ‘000’s TONNES LCE Demand is forecast to 1500 outpace supply. +717% increase vs 2018 estimates • Majors lower production forecasts; wet weather 1000 impacts • Hard rock production 500 not add
Slide 7: Lithium Gigafactory Growth
Lithium Gigafactory Growth >US$200 Bn invested in Gigafactories. From 3 Gigafactories in 2015 (148GWh) to 76 Gigafactories in 2028 (1713 GWh) <US$10Bn invested on new supply. “Can’t build 0.5 million EV battery packs without secure supply” Chris Berry, House Mountain Partners. Source: Benchmark Mine
Slide 8: Heart of Lithium Brine Supply
Heart of Lithium Brine Supply. Cauchari and The Lithium Triangle Olaroz produces more than 50% of the world’s lithium (at the lowest cost). Our projects are side- by-side with the heavyweights in the Livent (FMC) Lithium Triangle. ASX:LKE Kachi SLIDE / 8
Slide 9: Location, location
Location, location. In August 2018, SQM sold its stake in the Cauchari Project. China’s Ganfeng paid US$237 +160 million for 50%. Lake is drilling within 400m of this project - the world’s largest lithium brine resource. Livent (FMC) ASX:LKE SLIDE / 9
Slide 10: Location, location
Location, location. Nov 2018, Galaxy Resources sold northern part Sal De Vida project to South Korea’s Posco for US$280 million. LSC Lithium takeover C$111m by oil & gas company. Livent (FMC) Implies US$55-110 million per 1 million tonne LCE resource ASX:LKE SLIDE / 10
Slide 11: Broker notes
Broker notes. Significant further scalable potential…LKE could conceivably be a 100,000 tpa lithium producer. Buy/Target price of A$0.36 share. Oliver O’Donnell, VSA Capital (London/Shanghai) Nov2019 LKE’s projects located immediately adjacent to brine projects in production. Valuation LKE $0.77 per
Slide 12: Size of Lithium Brine Resources vs Market Value
Size of Lithium Brine Resources vs Market Value – Argentina brine companies 1.0 10 Neighbours’ market 0.9 9 value is up to 25x 0.8 8 Combined Resource Size Millions tonnes LCE that of Lake’s. 0.7 7 Market Value A$ Billions 0.6 6 0.5 Recent LKE price targets 5 from analyst reports 0.4 4 $0.36 to $0.7
Slide 13: Kachi Project
Kachi Project. Lease – 69,000ha Exploration target area ASX:LKE SLIDE / 13
Slide 14: Kachi Project
Kachi Project. Lease area equivalent to 11 x Manhattan Island. 11x Located in lowest part of ASX:LKE large drainage: 6,800 km2 SLIDE / 14
Slide 15: Kachi Project
Kachi Project. Exploration target area A JORC certified combined lithium resource of 4.4 million tonnes of LCE. 100% Lake owned. ASX:LKE SLIDE / 15
Slide 16: Kachi Project
1400 1,200 Maricunga Kachi Project. 1,000 Lithium Concentrate (mg/L) 800 Hombre Muerto Sal de Vida North 600 Olaroz 3Q Cauchari 23Mt Gallego Salar de PPG Los Angeles Salar de 400 Rincon Rincon Antofalla Lithium Centenario Ratones Kachi Target Kachi Lithium 8–17 Mt 200 Clayton Mariana Cauchari Valley
Slide 17: Kachi Project
Kachi Project. Large salt lake 20km x 15km Previously untested - now 15 drill holes Indicated Resource 1.0Mt LCE 290mg/L Inferred Resource 3.4Mt LCE 210mg/L K02 197mg/L Li K07 157mg/L Li K03 180-306mg/L Li Results: K08 326mg/L Li Good chemistry, low impurities K04 266mg/L Li ~320mg/L lithium (250-32
Slide 18: Kachi Project
Kachi Project. Deep basin - Large salt lake Resource defined in 12 months of drilling Geophysics indicates much larger potential Potential at depth and to south under cover ASX:LKE SLIDE / 18
Slide 19: Direct extraction. The game changer.
Direct extraction. The game changer. ASX:LKE SLIDE / 19
Slide 20: Conventional extraction
Conventional extraction. ARGENTINA Evaporation ponds – Atacama Example CHILE Atacama SQM, Albemarle ASX:LKE ASX:LKE SLIDE / 20
Slide 21: Conventional extraction: Evaporation ponds
Conventional extraction. Evaporation ponds ASX:LKE ASX:LKE SLIDE / 21
Slide 22: Direct extraction
Direct extraction. • Direct extraction pilot plant planned H2 2019 • Premium product for lithium hydroxide or Ion exchange • Increases grade to 25 -30,000 mg/L lithium lithium carbonate; low impurities • Doubles recoverable grade; smaller Lilac Solutions (Silicon Valley backed) • Increase recoveries
Slide 23: Direct extraction: Global cost curve
Direct extraction. Global cost curve SLIDE / 23 Source: Lilac Solutions; Costs Curve – Global Lithium LLC, Roskill, Neo-Lithium (NLC)
Slide 24: Cauchari Project
Cauchari Project. Ganfeng / Lithium Americas – World Class Resource Orocobre/ Advantage Lithium – Large Resource Lake Resources – Drilling Area ASX:LKE ASX:LKE SLIDE / 24
Slide 25: Cauchari Project
Ganfeng Cauchari Project. Advantage Lithium 23.0Mt LCE resource. Production 40,000tpa LCE scheduled 2020 Lake is currently drilling next to the world's largest defined lithium brine resource (23.0Mt LCE Ganfeng/LAC), plus 6.3 Mt LCE at Advantage Lithium Orocobre/Advantage Lithium. 34m Orocobre @ 741
Slide 26: Cauchari Project
Cauchari Project. Lake is currently drilling next to the next big producer Production 40,000 tpa LCE planned 2020 (Ganfeng/LAC) ASX:LKE ASX:LKE SLIDE / 26
Slide 27: Olaroz Project
Olaroz Project. Orocobre Production Plant Orocobre - Resource Lake Resources – Drilling Area ASX:LKE ASX:LKE SLIDE / 27
Slide 28: Olaroz Project
Olaroz Project. 30km likely extension. 30 Adjoins Orocobre production. km Target same aquifer Under alluvial cover Drill targets on basin margin after concept proved at Cauchari drilling ASX:LKE SLIDE / 28 SLIDE / 28
Slide 29: Pegmatites
Pegmatites. Past production – small scale. Opportunity for new pegmatite deposit using modern exploration technology. ASX:LKE ASX:LKE SLIDE / 29
Slide 30: Pegmatites
Pegmatites. Target: Large Scale Spodumene Deposits in Pegmatite Swarms. 150 km New Exploration Models in area of past production 150km long belt Large Area ~80,000 ha ASX:LKE SLIDE / 30
Slide 31: Timeline to production
2021/22 Timeline to 2020 • Kachi – Production production H2 2019 • DFS Kachi – Pre- Production • Kachi – initially 25,000tpa LCE; potential to expand to 100,000 tpa LCE Q1-Q2 2019 • Kachi PFS to show • Development funding for • Olaroz – Pre-production ? development options Kachi with offtake and 201
Slide 32: Path to uplift
Development Partners Path to uplift • Seeking downstream strategic Drill Cauchari Olaroz agreements. • Kachi PFS with conventional and direct extraction methods. PFS / Pilot Plant - Kachi • Drill Cauchari to extend high grade results next to major pre-production. • Globally low OPEX costs shown. • D
Slide 33: LKE Market Data and 52-week Price Chart
LAKE RESOURCES (ASX:LKE) LKE 52-week Price Chart Total Current Shares on Issue 388,326,803 Unlisted Bonus Options (4c) Jun 2019 Expiry 52,045,081 Unlisted Options (5c) Oct 2019 Expiry 5,052,083 Unlisted Options (5c) Feb 2022 Expiry 5,555,000 Notes Unsecured Jun 2020 Expiry ($0.73M Being retired by e
Slide 34: Leadership
Lake has extensive experience in the resources Leadership. sector with vast expertise in project acquisition, exploration and development. Steve Promnitz Stu Crow Nick Lindsay MANAGING DIRECTOR CHAIRMAN NON-EXEC NON-EXEC DIRECTOR Extensive project management experience in More than 25 years of exper
Slide 35: Mineral Resource Estimate
Mineral Resource Estimate. Table 1 Report Kachi Lithium Project - JORC Code 2012 Competent Person’s Statement – Kachi Lithium Brine Project The information contained in this ASX release relating to Exploration Results has been compiled by Mr Andrew Fulton. Mr Fulton is a Hydrogeologist and a Member
Slide 36: JORC Code 2012
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Slide 37: Contacts
Contacts. Steve Promnitz Managing Director steve@lakeresources.com.au www.lakeresources.com.au +61 2 9188 7864 ASX:LKE SLIDE / 37
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