Nemaska Lithium — Investor Presentation (January 2019)
38 slides from Nemaska Lithium's investor presentation, January 2019
Slide 1: Corporate Presentation January 2019
Corporate Presentation January 2019
Slide 2: Forward-looking statement
• During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to its projects, business strategy and plan, which could be construed as forward-looking. Forward- • Such forward-looking statements are subject to risks and uncertainties that could cause res
Slide 3: Corporate Overview
Corporate Overview Fully Funded Project • Nemaska is fully funded for project construction plus one year of working capital following the under construction closing of CAD 1.1 B. • Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the Vertically integrated
Slide 4: Project Financing of CAD 1.1B
Project Financing of CAD 1.1B Equity CAD 454M • A 94M private placement from world-leader SoftBank Group Corp. SoftBank also has a right of first offer to purchase up to 20% of lithium salts produced from Shawinigan. • A 80M private placement with Ressources Québec • A 280M public offering through a
Slide 5: Nemaska Lithium Project Overview
Nemaska Lithium Project Overview • One of North America’s largest spodumene deposits located in the Eeyou Istchee James Bay region, Canada • 33 years initial mine life. • Expected to produce 213,000 tonnes/y of 6.25% (Li2O) spodumene concentrate Reserve Overview Fully-Integrated Lithium Producer Cat
Slide 6: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Administrative Office Construction Camp Concentrator Concentrate Dome Thickener & Process Water Tank Fine Ore & Residue Foundations Dome Foundation E-House Foundation Primary Crusher Foundation & Retaining Wall 6
Slide 7: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Process water tank and foundation of the thickener 7
Slide 8: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Concentrate dome, concentrator and process water tank 8
Slide 9: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Primary crusher foundation and fine ore and tailings dome 9
Slide 10: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Construction camp and maintenance garage 10
Slide 11: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Construction – interior of concentrator 11
Slide 12: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Construction – process and fire protection tank 12
Slide 13: Electrochemical Plant | Existing Buildings in Shawinigan
Electrochemical Plant | Existing Buildings in Shawinigan Hydroelectric Power Plant Electrochemical Plant Anticipated commissioning Q3-2020 Phase 1 Plant Commissioned in Q1-2017 and in production 13
Slide 14: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress 14
Slide 15: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress Removal of the concrete slab – east of building 67 – and preparation for installation of kiln 15
Slide 16: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress Installation of piles in building 80 16
Slide 17: Administrative Office | Construction Complete
Administrative Office | Construction Complete Moved in December 2018 17
Slide 18: Construction Schedule
Construction Schedule 2018 2019 2020 Whabouchi Mine Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Engineering(1) Procurement(1) Manufacturing(1) Delivery Construction(1) Pre-operational verification Ramp up and commercial production Shawinigan Electrochemical Plant Engineering(1) Procurement(1) Manufacturing
Slide 19: Capital Expenditures as of October 27, 2018
Capital Expenditures as of October 27, 2018 All amounts are in Canadian dollars Expenditures and commitments as of October 27, 2018 To date Estimate at Estimate to Variance Description Budget completion complete To date Commitments Incurred (EAC) Whabouchi mine Site 303.6M 177.3M 115.9M 143.9M 321.2
Slide 20: Project Economics Key Figures
Project Economics Key Figures Expected Mine Life and Payback Period Yearly Average Production 33 years Whabouchi Mine with 2.9 year (2 year**) payback period (after-tax) ≈ 213,000 tonnes of concentrate (6.25% Li2O) Average Cost Per Tonne | Spodumene Concentrate Shawinigan Electrochemical Plant ≈ 23,
Slide 21: A Unique Process | Whabouchi Mine & Electrochemical Plant
A Unique Process | Whabouchi Mine & Electrochemical Plant 21
Slide 22: Nemaska Purity Hydroxide Compares Well
Nemaska Purity Hydroxide Compares Well Lithium Hydroxide Grade Comparison Purity Comparison LiOH grade Market NMX Nemaska Lithium 57.5% Product specifications(1) Specifications LiOH, wt% 54.8 - 56.5 57.5 FMC Co rp oration 56.5% Ca, mg/kg 10 – 100 <1 Na, mg/kg 20 – 500 < 20 K, mg/kg 10 – 250 < 10 Alb
Slide 23: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Hydroxide Cost Curve 2021E USD per tonne lithium hydroxide Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium 23 Technical and battery grades; SQM, Albemarle and FMC costs assume lithium carbonate procured interna
Slide 24: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Carbonate Cost Curve 2021E USD per tonne lithium carbonate Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium 24 Note: Battery and technical grades: Includes direct carbonate production from raw materials (brine a
Slide 25: The Lithium Market
NEMASKA LITHJUM lithium The 3 Lithium i Market 6.941
Slide 26: Lithium Uses 2016 and 2026E
Lithium Uses 2016 and 2026E Uses of Lithium in 2016 Uses of Lithium in 2026E Glass Air treatment Other Polymer 1% Primary 0% 2% 1% battery… Greases Air treatment 2% 2% Glass-ceramics Primary battery 3% 2% Rechargeable Other battery Ceramics 9% 42% 3% Metallurgical powders 4% Glass 5% Total demand Po
Slide 27: Lithium Demand Per Product 2016 - 2031
Lithium Demand Per Product 2016 - 2031 27 Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018
Slide 28: Pricing Outlook
Pricing Outlook Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide 21 000 20 200 900 850 19 000 18 800 19 000 790 17 800 800 17 050 16 700 17 000 700 15 700 15 500 700 14 750 15 000 13 900 14 100 630 USD per tonne USD per tonne 13 183 610 600 12 750 590 13 000
Slide 29: Gigafactories Driving Demand for Lithium
Gigafactories Driving Demand for Lithium 10x in Expected Lithium Demand from Gigafactories between 2016 – 2021E tonnes battery grade 24 000 tonnes battery grade LCE consumption 260 000 LCE consumption per year expected in 2021 per year in 2016 325 37 38 34 34 5 4 5 4 15 27 34 GWh per year 34 167 183
Slide 30: Pricing Outlook
Pricing Outlook New Lithium Development Projects (1) (1) Estimates made prior to announcement of SQM and ALB’s deal with CORFO Source: Roskill Global Industry, Markets and Outlook to 2026 30
Slide 31: Our Team
NEMASKA LITH]UM Our Team
Slide 32: Board of Directors
Board of Directors • Over 30 years as a mechanical • Chief Executive Officer, President and engineer and senior executive. Director at Stornoway • Former President & COO at • Prior to that, he was with G Services Bombardier’s Recreational Products Miniers Inc., Canadian Royalties and division and EV
Slide 33: Senior Management
Senior Management • President & CEO of Nemaska since inception in 2008. Guy Bourassa(1) • Over 33 years of mining experience. President & CEO, Director • Currently a director of Nouveau Monde Graphite and Monarques Gold Corporation. • CFO of Nemaska since inception in 2008. Steve Nadeau • Over 20 ye
Slide 34: Technical Team
Technical Team • Professional engineer with over 20 years of experience in the metallurgical Jean-François industry and the lithium battery industry. Magnan • Author/inventor of several patents in the rechargeable lithium battery Technical Manager industry. Bertin Ouellet • Professional chemical eng
Slide 35: Construction and Operation Team
Construction and Operation Team • Senior mechanical engineer in the industrial field with over 30 years of Yves Painchaud significant experience in major construction sites in Québec. Construction Project • Held various management positions over his career and has managed and Manager supervised his
Slide 36: Capital Structure | November 30, 2018
Capital Structure | November 30, 2018 Shares outstanding 847 134 338 Options (average exercise price $0.95) – January 2018 to November 2023 35 329 400 Warrants (average exercise price $1.49) – July 2019 30 825 635 Fully Diluted 913 289 373 Distribution (estimated) Management and employees ≈ 6% Resso
Slide 37: Project Summary | Key investment takeaways
Project Summary | Key investment takeaways Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction 1 2 3 4 5 Near term To become the Unique location Proven commercial lowest cost World-class and process of production producer of producer of counterparties processing proces
Slide 38: 38
38
Nemaska Lithium — Investor Presentation (January 2019) on 6ix