Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — BMO Capital Markets 28th Annual Global Metals & Mining Conference 2019
30 slides from Sunrise Energy Metals's conference presentation, Feb 25, 2019
Slide 1: ASX/TSX Announcement
ASX/TSX Announcement 25 February 2019 Investor Presentation MELBOURNE, Australia – Clean TeQ Holdings Limited (Clean TeQ or Company) (ASX/TSX:CLQ; OTCQX:CTEQF) is pleased to advise that Co-Chairman Mr Robert Friedland and Managing Director and CEO Mr Sam Riggall will be presenting at the BMO Capital
Slide 2: ASX/TSX:CLQ
in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected change
Slide 3: Clean TeQ Sunrise: Critical raw materials for the battery revolution
Clean TeQ Sunrise Critical raw materials for the battery revolution BMO Global Metals & Mining Conference CLQ 24 - 27 February 2019
Slide 4: Cautionary statement
Cautionary statement Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, pe
Slide 5: Our vision is to empower the clean revolution
Our vision is to empower the clean revolution Critical raw materials for electric vehicles and energy storage • Advancing development of the Clean TeQ Sunrise nickel, cobalt and scandium project in NSW, Australia • Clean TeQ Sunrise will produce critical raw materials for the rapidly growing lithium
Slide 6: The battery revolution
The battery revolution Driving raw material demand
Slide 7: Electric vehicles around the corner
Electric vehicles around the corner 12 Dec 2018, Electrive 5 Feb 2019, Reuters 9 Jan 2019, Bloomberg 31 Jan 2019, Electrive 5 Feb 2019, S&P Global 5 Feb 2019, Mining.com 7 Feb 2019, Electrive 12 Dec 2018, Electrek 31 Jan 2019, VentureBeat 23 Jan 2019, Reuters 17 Jan 2019, Car and Driver 11 Dec 2018,
Slide 8: Megafactories being built now
Megafactories being built now Significant increase in Li-ion battery capacity from 2018 to 2028 • Benchmark Mineral Intelligence is tracking 70 megafactories currently under construction – 46 based in China – In October 2017, only 17 under construction • Megafactories will make Li-ion batteries with
Slide 9: Supply of battery raw materials will be challenged
Supply of battery raw materials will be challenged New sources of nickel and cobalt are required Projected megafactory demand Global EV sales projections (at 100% utilization) 1,000 18 90 928 900 16 80 800 14 70 Raw material demand (kt) 700 12 60 Millions of vehicles 600 10 50 495 500 19x 8 40 400 6
Slide 10: Largest demand pull from China
Largest demand pull from China Emissions controls legislation driving the agenda • The shift to New Energy Vehicles (NEV) is here! EV vs. total passenger vehicle sales – NEV mandate is effective in 2019 8% • Credit based system targeting: 10% EV (2019), 12% (2020) 7.3% 7% • EV subsidies based on veh
Slide 11: Nickel sulphate capacity needs to grow
Nickel sulphate capacity needs to grow • Electric vehicles are heavy consumers of nickel sulphate Significant nickel supply growth needed – Vale irrespective of battery chemistry 250 • Next generation lithium ion batteries will be more nickel Requires a new Sudbury + Voisey’s Bay + PTVI intensive Ni
Slide 12: Cobalt supply is highly constrained
Cobalt supply is highly constrained • Majority of global cobalt sourced from DRC presenting Cobalt Production – Global Rankings major supply risk for end users – Security of supply – Auditability of supply chain • 95% of production comes as a by-product of copper or nickel production – Higher cobalt
Slide 13: Scandium for a new generation of lightweight alloys
Scandium for a new generation of lightweight alloys • Sunrise is one of the world’s largest and highest grade Airbus Group’s Light-rider scandium resources • Scandium is used to provide next generation lightweight aluminium alloys for key transportation markets • Clean TeQ continues to promote the u
Slide 14: Critical raw materials
Critical raw materials For the battery revolution
Slide 15: Advanced development project in Central NSW
Advanced development project in Central NSW • 100% owned by Clean TeQ • Laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium • One of the largest and highest grade sources of cobalt outside Africa • Located 350 km west of Sydney in an established mining region • Significant i
Slide 16: Primary drivers to success
Primary drivers to success Mineralogy Flowsheet Location • Near surface deposit with • Clean iX® - continuous ion • Fully auditable, non-DRC maximum depth of 40 metres exchange technology provides supply lowest cost path to battery- • High cobalt grades relative to ready products • Access to rail, r
Slide 17: Fully permitted and development ready
Fully permitted and development ready STUDIES Definitive Feasibility Study completed in June 2018 PERMITS Approved 2.5 Mtpa project from NSW Government WATER Secured 3.2 GLpa water allocation INFRASTRUCTURE Road and rail access in place POWER Power and gas in close proximity PILOT PLANT Successful p
Slide 18: 2018 Definitive Feasibility Study
2018 Definitive Feasibility Study Outstanding economic and technical outcomes 5 6 7 * Refer to endnotes. Clean TeQ Sunrise | BMO Global Metals & Mining Conference, 24 - 27 February 2019 16
Slide 19: Strong free cash flow generation
Strong free cash flow generation • Clean TeQ Sunrise is forecast to deliver: DFS free cash flow profile (US$M) – US$14 billion in revenue8 800 8,000 – LOM EBITDA of US$8.6 billion 600 6,000 – Average annual EBITDA of US$344 million 400 4,000 Revenue Breakdown 200 2,000 3% 2% - - (200) (2,000) (400)
Slide 20: Competitive operating cost position
Competitive operating cost position US$/lb Ni US$/lb Ni before credits after credits Lowest quartile cash costs Mining $1.14 $1.14 Processing $3.33 $3.33 Haulage & port $0.07 $0.07 General & $0.14 $0.14 administration Cobalt credits ($5.60) Scandium credits (assumes sales ($0.36) capped at 10 tpa) A
Slide 21: Significant community and social benefits
Significant community and social benefits • Strong community benefits over life of mine including: – Long-term employment – Significant infrastructure upgrades – Increased tax revenue – Government royalties payable Clean TeQ Sunrise | BMO Global Metals & Mining Conference, 24 - 27 February 2019 19
Slide 22: Next steps
Next steps Engineering, financing, offtake & delivery
Slide 23: Project engineering & design underway
Project engineering & design underway MCC selected as a key project delivery partner • Fixed-price EPC contract with MCC – Covering engineering, procurement and on-site construction for process plant scope • MCC built, own and operate Ramu nickel-cobalt mine in Indonesia • Front-end-engineering and
Slide 24: Comprehensive project financing package
Comprehensive project financing package Project debt, strategic partnership & offtake • Mandated Lead Arranger (MLA) group for project debt facility – Industrial Commercial Bank of China (ICBC), National Australia Bank, Societe General and Natixis • US$500 million indicative debt commitments receive
Slide 25: Our key project partners
Our key project partners Well-aligned for successful project delivery Debt financing Project delivery Offtake Product end-use ICBC appointed to the Heads of Agreement signed Binding five-year offtake Landmark agreement with Mandated Lead Arranger with MCC in August 2018 for an agreement for 20% of c
Slide 26: Appendix
Appendix
Slide 27: Corporate overview
Corporate overview Capital Structure Major Shareholders3 ASX/TSX code CLQ Robert Friedland 12.9% Ordinary shares1 746.3M Pengxin International 12.4% Unlisted options1 12.8M FMR LLC 6.9% Performance rights1 8.3M AustralianSuper 6.3% Cash at bank (31 December 2018) $117.4M Market capitalisation2 (undi
Slide 28: Competent and qualified persons consents
Competent and qualified persons consents The information in this presentation that relates to Mineral Resources is based on information compiled by Mr Lynn Widenbar, a member of the Australasian Institute of Mining and Metallurgy. Mr Widenbar is a full- time employee of Widenbar and Associates. Mr W
Slide 29: Endnotes
Endnotes 1. Class 1 Nickel refers to products with a nickel content of 99% or more, including electrolytic nickel, pellets briquettes, granules, rondelles, and powder/flakes. 2. Estimated marginal cost of production per kilogram refined scandium oxide based on 10 tonne per annum production. 3. Based
Slide 30: Clean TeQ Holdings Limited contact details
P: +61 3 9797 6700 E: info@cleanteq.com Clean TeQ Holdings Limited 12/21 Howleys Rd Notting Hill VIC 3168 Australia www.cleanteq.com
Clean TeQ Holdings — BMO Capital Markets 28th Annual Global Metals & Mining Conference 2019 on 6ix