Neometals Ltd · ASX:NMT
Neometals — Shareholder Meeting (November 2021)
50 slides from Neometals's shareholder meeting presentation, Nov 30, 2021
Slide 1: Minerals and Materials for a Sustainable Future
For personal use only MINERALS AND MATERIALS FOR A SUSTAINABLE FUTURE Neometals Annual General Meeting November 30, 2021 ASX Code: NMT OTC/Nasdaq Intl: RDRUY Frankfurt: 9R9 Authorised for release by Christopher Reed, Managing Director of Neometals Ltd
Slide 2: Disclaimer
DISCLAIMER Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the For personal use only Company and its associated entities and their activities current as at the date of this document. The information contained i
Slide 3: Executive Summary
EXECUTIVE SUMMARY Neometals innovatively develops opportunities in minerals For personal use only and advanced materials essential for a sustainable future • Our growing team identifies ands secures opportunities, builds value, removes risk and attracts partners to develop projects and return value
Slide 4: What's Happened Since Last AGM
WHAT’S HAPPENED SINCE LAST AGM Strong returns, development success, commercial success – For personal use only poised! Total Widgie Nickel Ltd Annual TSR over Shareholder demerger via last 5 yrs 35% vs Return return of capital XAO at 11.4%1 366% Staff count up Second +$120M in cash ~20% Sustainabili
Slide 5: Board and Management Team
BOARD AND MANAGEMENT TEAM For personal use only Steve Cole David Reed Dr Natalia Streltsova Chris Reed Doug Ritchie Dr Jennifer Purdie Les Guthrie Chair Managing Director / CEO Jason Carone Michael Tamlin Paul Wallwork Darren Townsend Company Secretary / COO GM – Marketing and CDO CFO Product Develo
Slide 6: Corporate Dashboard
CORPORATE DASHBOARD For personal use only ASX: NMT OTC:RDRUY Shares on Issue1 m 548.4 12 Month Share Price Performance Share Price (26-Nov-21) A$ 1.05 1.20 16,000 Market cap (26-Nov-21) A$m 575.4 14,000 Cash (30-Sep-21) 2 A$m 83.5 1.00 12,000 Debt A$m - Volume (‘000s) 0.80 Investments 10,000 A$m 38.
Slide 7: Sustainability
SUSTAINABILITY Neometals is committed to optimising finite resources with circular For personal use only practices to benefit society and the environment for a sustainable future • All projects, particularly EU, focused on materials for decarbonisation and the clean energy revolution • Further – to
Slide 8: ESG in Practice
ESG IN PRACTICE ESG parameters woven into policy, systems, procedures – core business For personal use only 8
Slide 9: Unparalleled Exposure to Elements Essential to the Energy Transition Megatrend
UNPARALLELED EXPOSURE TO ELEMENTS ESSENTIAL TO THE ENERGY TRANSITION MEGATREND For personal use only 2050 Annual Demand from Energy Technologies as Percentage of 2018 Production 600% Neometals Exposure 500% Lithium-Ion Battery Recycling Business (Primobius 50:50 JV) 400% Vanadium Recovery Business (
Slide 10: Core Projects Overview
For personal use only Lithium-Ion Battery Recycling Project (Feasibility / Demo Plant Stage, 50:50 Incorporated JV) Vanadium Recovery Project (Pre-Feasibility Stage, Co-operation towards a 50:50 Incorporated JV) Vanadium Recovery LiB Recycling Barrambie Titanium and Vanadium Project (100% NMT, Produ
Slide 11: Battery Energy Storage Market Backdrop for EV/ESS Sectors
For personal use only BATTERY ENERGY STORAGE MARKET BACKDROP FOR EV/ESS SECTORS 11
Slide 12: All Batteries Wear Out and Recycling Volumes Mirror Production
WE ARE CERTAIN ALL BATTERIES WEAR OUT AND RECYCLING VOLUMES MIRROR PRODUCTION ON LAGGED BASIS For personal use only 12
Slide 13: EV Sales and Penetration Rate Forecasts
EV SALES AND PENETRATION RATE FORECASTS ARE SUPPORTED BY ALL MAJOR AUTO OEMS PHASING OUT ICE For personal use only 13
Slide 14: What Happens to Prices When Supply Fails to Keep Up With Demand
WHAT HAPPENS TO PRICES WHEN SUPPLY FAILS TO KEEP UP WITH UNFATHOMABLE DEMAND GROWTH For personal use only 14
Slide 15: Need to Address the Emerging Carbon Shock of EVs
NEED TO ADDRESS THE EMERGING ‘CARBON SHOCK’ OF EV’S For personal use only Source: De Correspondent, 14/7/17. Elsevier, LCA for hydrometallurgical recycling of mixed LiB & NiMH waste, 30/3/21. Ivl Report, Lithium-ion Vehicle Battery Production, November 2019 15
Slide 16: Eco-Friendly LIB Recycling Is a Key Sustainable Solution
ECO-FRIENDLY LIB RECYCLING IS A KEY SUSTAINABLE SOLUTION For personal use only HYDROMETALLURGICAL Raw Material CO2 Savings – Traditional Mining vs Pyromet and Hydromet RECYCLING Battery Recycling HAS THE LOWEST CARBON FOOTPRINT Source: Duesenfield 16
Slide 17: New EU Battery Regulations
NEW EU BATTERY REGULATIONS Needed to address the disconnect between the current For personal use only state of the EV materials supply chain and the future ambitions of the auto OEM,and consumers with a focus on ESG principles EU Lithium Market Forecasts ‒ Security of raw material supply ‒ CO2 footp
Slide 18: Li Ion Battery Recycling Project
For personal use only LI ION BATTERY RECYCLING PROJECT 50:50 JV with SMS group – ‘Primobius GmbH’ 18
Slide 19: Commercialisation Partner to Leverage Strengths of Both Partners
COMMERCIALISATION PARTNER TO LEVERAGE STRENGTHS OF BOTH PARTNERS For personal use only ✓ Leading ESG credentials ✓ Best in class plant design for metallurgical equipment and plants ✓ Proprietary battery recycling process ✓ Strong on-the-ground European presence ✓ Significant chemicals processing exp
Slide 20: Aiming to Be Recycler of Choice for Cellmakers and Carmakers
AIMING TO BE RECYCLER OF CHOICE FOR CELLMAKERS AND CARMAKERS For personal use only 20
Slide 21: Hydromet Refining for LIB Cathode Precursors
HYDROMET REFINING FOR LIB CATHODE PRECURSORS For personal use only Source: Benchmark Minerals Intelligence 21
Slide 22: Our Proprietary Recycling Process
OUR PROPRIETARY RECYCLING PROCESS Being demonstrated in Hilchenbach Germany 21/22 For personal use only • 85% Recycling Efficiency to date aiming to improve • Ni+Co Sulphates (+80% Rev$) meet Chinese cathode specs • Tailings is fertiliser feedstock 22
Slide 23: Engineering Cost Study Estimates May 2021
ENGINEERING COST STUDY ESTIMATES MAY 2021 - AACE CLASS 4 (±25%) For personal use only Based on Pilot Plant at SGS Canada in 2019/20 Operating Costs CAPITAL US$M DIRECTS US$ 1,560/t Feed Infrastructure Civil 9 Land and Buildings 34 Front End 6 Hydromet 24 Utilities 12 Installation 11 S Sub-Total Dire
Slide 24: Robust Economics Across Major EV Battery Chemistries
ROBUST ECONOMICS ACROSS MAJOR EV BATTERY CHEMISTRIES For personal use only Revenue by Recovered Elements in 1 Tonne of Batteries Recoverable Revenue per Tonne of Batteries (US$/t)(1) 16,000 14,000 12,000 10,000 8,000 6,000 Class 4 ECS 4,000 Opex of US$1,560/t 2,000 - 2021 2021 2021 2021 LCO NMC 111
Slide 25: EU Forecast to Be 2nd Largest LIB Production Hub in 2030
EU FORECAST TO BE 2ND LARGEST LIB PRODUCTION HUB GLOBALLY IN 2030 For personal use only 25
Slide 26: EU Second Largest Target Market for Battery Recycling
EU SECOND LARGEST TARGET MARKET FOR BATTERY RECYCLING For personal use only Notes: 1. April 2021 vs Sept 2021 Total Addressable Market (TAM) Forecast. Units are tonnes of lithium-ion batteries available for recycling / year 2. Sources: Benchmark Mineral Intelligence (“BMI”) Li-Cycle market intellige
Slide 27: Primobius Is the Scalable Recycling Solution Required by Western Cell Producers
PRIMOBIUS IS THE ENVIRONMENTALLY FRIENDLY AND SCALABLE RECYCLING SOLUTION REQUIRED BY WESTERN CELL ‘PRODUCERS’ For personal use only Major European LIB Recycling Facility Capacities Capacity (ktpa) Long term potential 200.0 Focus of ongoing studies 18.0 10.0 ✓ 7.0 7.0 6.0 5.0 3.7 3.2 3.0 2.5 2.0 1.5
Slide 28: Commercial 10tpd Shredding Plant & Refinery Demonstration
COMMERCIAL 10TPD SHREDDING PLANT & REFINERY DEMONSTRATION For personal use only 28
Slide 29: Flexible Business / Revenue Models
FLEXIBLE BUSINESS / REVENUE MODELS For personal use only • Primobius to responsibly process production scrap or EOL 1 Principal batteries for a fee. Customer option to purchase all products under offtake agreement 2 Partnership • Primobius to build and operate recycling plant(s) both share economic
Slide 30: Primobius With a Speed to Market Advantage
PRIMOBIUS WITH A SPEED TO MARKET ADVANTAGE For personal use only Accelerated market Initial entry underway Commercial Stage 10tpd Shredder 50tpd Integrated* 50tpd Integrated* Integrated* Shredding & Shredding & Shredding & Shredding Refining Refining Refining Plant Type Black Mass BGMS BGMS BGMS Pro
Slide 31: Primobius Lithium-Ion Battery Recycling Project – Highlights
PRIMOBIUS LITHIUM-ION BATTERY RECYCLING PROJECT – HIGHLIGHTS For personal use only Auto OEMs and Batterymakers Require a Li-B Recycling Solution 1 Global volume of ‘end of life’ LIBs available for recycling expected to grow at 18.8% per annum over the next ~10 years Environmentally Friendly Process
Slide 32: Vanadium Recovery Project
For personal use only VANADIUM RECOVERY PROJECT Co-operation towards a 50:50 Incorporated JV with Critical Metals Ltd 32
Slide 33: First Vanadium Recovery Opportunity in Pori, Finland
FIRST VANADIUM RECOVERY OPPORTUNITY IN PORI, FINLAND For personal use only Initial Vanadium Recovery Project – Pori, Finland • Secured +2Mt of high-grade vanadium-bearing by-product (“Slag”) stored at 3 steel mills in Sweden and Finland from Scandinavian steel giant SSAB. • Neometals funding evaluat
Slide 34: SSAB Slag Feedstock Secured for ~10 Years
SSAB SLAG FEEDSTOCK SECURED FOR ~10 YEARS WITH VANADIUM PRICE LINKED AGREEMENT For personal use only Luleå (SSAB) Slag stored +630kt Boden Vanadium Grade V2O5 +4% Luleå Raahe Contained V2O5 +25,000t Raahe (SSAB) Slag stored +360kt Net Slag Added 100ktpa Pori V recovery plant Vanadium Grade V2O5 +3%
Slide 35: MOU With City of Pori for Vanadium Recovery Plant Site
MOU WITH CITY OF PORI, FINLAND FOR VANADIUM RECOVERY PLANT SITE For personal use only o City of 86,000 inhabitants with a long history as a hydrometallurgical centre of excellence o Access to a ‘build-ready’ 20 hectare industrial-zoned site adjacent to the deep water, year-round port with rail acces
Slide 36: Patented Hydrometallurgical Recovery Process Method
PATENTED HYDROMETALLURGICAL RECOVERY PROCESS METHOD For personal use only Neometals Vanadium Recovery Process • EU provisional patent pending for hydrometallurgical process to recycle stockpiled slag, sequester CO2, extract vanadium and recycle other products • Conventional equipment configured in u
Slide 37: Successful PFS Result With Expected FID by Year-End 2022
SUCCESSFUL PFS RESULT WITH EXPECTED FID BY YEAR-END 2022 For personal use only Fully funded to FID Class 5 Throughput Products Opex Scoping Rate 30 Jun Study 2020 Class 4 Prefeasibility Positive study 30 Jun Study will form the 2021 basis for 200,000tpa 13.43M Ibs p.a. US$4.25/Ib decision to form Hi
Slide 38: Potential Lowest Quartile Cost Vanadium Pentoxide Producer
POTENTIAL LOWEST QUARTILE COST VANADIUM PENTOXIDE PRODUCER For personal use only Vanadium Cost Curve 2021 Source: TTP Squared – Cost Curve, Neometals Management – Vanadium Recovery Project Cost Estimate Please refer to ASX announcement 21 April 2021 titled “Vanadium Recovery Project – Positive Cost
Slide 39: Assessing a Pipeline of Feedstocks and MOU for Second Plant in Sweden
ASSESSING A PIPELINE OF POTENTIAL FEEDSTOCKS AND MOU FOR SECOND POTENTIAL PLANT IN SWEDEN For personal use only Potential Slag Processing Capacity • Memorandum of ktpa understanding with H2GS to supply slag to potential 1,000 Boden site • Potential to begin production in line with 800 commercial pro
Slide 40: Vanadium Recovery Business – Investment Highlights
VANADIUM RECOVERY BUSINESS – INVESTMENT HIGHLIGHTS For personal use only Attractive outlook for Vanadium 1 Forecast supply / demand imbalance for Vanadium with demand upside from new lithium vanadium battery cathode chemistries Environmentally Friendly European Supply of Vanadium 2 Higher-purity V2O
Slide 41: Barrambie Titanium and Vanadium Project
For personal use only BARRAMBIE TITANIUM AND VANADIUM PROJECT 100% Neometals 42
Slide 42: Barrambie Overview
BARRAMBIE OVERVIEW For personal use only ✓ 100% owned ✓ Tier 1 jurisdiction ✓ Granted mining lease ✓ EPA approval ✓ >A$35M spent to date in exploration / evaluation (inc. 55,000m of drilling) ✓ Established a large resource base ✓ Evaluated a number of flowsheets and now focused on recovery of value
Slide 43: The Opportunity: Growing Chinese Demand for Chloride Pigment Feedstock
THE OPPORTUNITY: GROWING CHINESE DEMAND FOR FEEDSTOCK SUITABLE FOR CHLORIDE PIGMENT For personal use only Chloride Feedstock Supply Demand and Chloride Ilmenite Price(1) ‘000 TiO2 Units US$ / Tonne FOB, nominal 5,000 400 4,500 350 4,000 300 3,500 250 3,000 2,500 200 2,000 150 1,500 100 1,000 50 500
Slide 44: The Solution: Processing Pathways to Commercialisation
THE SOLUTION: PROCESSING PATHWAYS TO COMMERCIALISATION For personal use only Solution 1 Solution 2 45
Slide 45: The Strategy: Secure Strong Partners
THE STRATEGY: SECURE STRONG PARTNERS For personal use only • Conditional MOU signed for 50:50 operating JV with leading Ti-V Research Institute IMUMR • IMUMR has Chinese national mandate to develop upstream supply chains for strategic industries. China is half of global titanium pigment production •
Slide 46: Next Steps
NEXT STEPS: • Finalising Cl.4 PFSs – Primero and For personal use only Sedgman EPC to benchmark future BOO(T) negotiations • Construct and commission 5tpd mobile spiral plant at former Menzies State Battery (pictured) • Process crushed product and transport to Perth, containerize and ship to China •
Slide 47: Indicative Timeline
INDICATIVE TIMELINE For personal use only 48
Slide 48: Security Opportunity
SECURITY OPPORTUNITY For personal use only Strong balance sheet, Green critical materials no debt – can fund for Europe – big developments to near- exposure to new energy term FIDs megatrend Consistent strategy - Resource efficiency for partnering to reduce risks circular economy and realise returns
Slide 49: Thank You
For personal use only THANK YOU PLEASE VISIT NEOMETALS.COM.AU 50
Slide 50: Mineral Resource Estimate
MINERAL RESOURCE ESTIMATE For personal use only Global Mineral Resource as at 17 April 2018(1) Classification Tonnes (M) TiO2 (%) V2O5 (%) Indicated 187.1 9.61 0.46 Inferred 93.0 8.31 0.40 Total 280.1 9.18 0.44 High Grade V2O5 Mineral Resource at (0.5% V2O5 cut-off)(2) Classification Tonnes (M) TiO2