Ioneer Limited · ASX:INR
Ioneer — RIU Resources Round-up 2019
28 slides from Ioneer's conference presentation, May 8, 2019
Slide 1: Rhyolite Ridge: American Source of Lithium & Boron
For personal use only Rhyolite Ridge American Source of Lithium & Boron for an Energy Efficient Future RIU Resources Round-up, Sydney - 8 May 2019 1 ASX: INR
Slide 2: Important notices and disclaimers
Important notices and disclaimers This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and For personal use only The information in this presentatio
Slide 3: Overview
Overview For personal use only ioneer is set to deliver a Shares Share Price (3 May 2019) major lithium-boron mine 1.47B A$0.19 in the USA Options (Unlisted) Market Cap 100%-owned Rhyolite Ridge: 47.4M A$270M • +30 year mine life, capable of producing: Performance Rights Cash (30 March 2019) • +20,0
Slide 4: Rhyolite Ridge Lithium-Boron Project
Rhyolite Ridge Lithium-Boron Project For personal use only Multi-generational source of lithium and boron Strategically located in a tier one Lithium is a key ingredient in lithium-ion mining jurisdiction - Nevada batteries which are Definitive Feasibility Study to be powering the electric vehic
Slide 5: Rhyolite Ridge video
Rhyolite Ridge video For personal use only This video is available on the ioneer YouTube Channel ASX: INR 5
Slide 6: PFS demonstrates robust project economics
PFS demonstrates robust project economics For personal use only Annual Revenue Total Capex Annual EBITDA $450M $599M $297M After-tax After-tax NPV IRR Cashflow (7% real): $6.6B $1.8B 28% Lithium carbonate = 20kt p.a. Boric acid = 173kt p.a. ASX: INR Note: The PFS base case used lithium carbonate sal
Slide 7: Lowest operating cost
Lowest operating cost For personal use only Rhyolite Ridge to be at bottom of the lithium cost curve • Operating costs ~ $1,800/tonne lithium carbonate • Acid plant provides all steam and power required (with boric acid credit) plus excess 38MW of green power for sale • Boric acid revenue at $700/to
Slide 8: Capex flexibility
Capex flexibility For personal use only 600 Capex optimisation opportunities: Other, $57 Contingency, • The acid plant is a key capex driver 500 $68 • PFS demonstrated rapid payback of capital: 4 years Indirects, 400 $111 • Recently announced US$60M saving on sulphuric acid million US$ plant from PF
Slide 9: Funding flexibility & strategic partnering
Funding flexibility & strategic partnering For personal use only Multiple options to fund US$599M in capex 100% Engaging with interested parties on potential: ownership o Lithium and/or boron offtake o Vendor and export credit finance o Option to finance acid plant (~30% of Two capex) separately p
Slide 10: Lithium – classed as a critical mineral by U.S. Government
Lithium – classed as a critical mineral by U.S. Government For personal use only Limited U.S. lithium supply • USA increasingly reliant on China for lithium battery supply Tesla Battery Gigafactory Target 35 GWh • Bipartisan American Mineral Security Act LG Chem introduced to complement Executive Or
Slide 11: Li-ion battery supply chain – U.S. import dependency
Li-ion battery supply chain – U.S. import dependency <1% <7% <1% 6% For personal use only U S Minerals Chemicals Components Cells Mined Manufactured Manufactured Manufactured A S I A <13% >50% >90% 90% Source: Benchmark Minerals, Deutsche Bank research, ioneer estimates for 2017 11
Slide 12: Lithium supply growth difficult to forecast
Lithium supply growth difficult to forecast For personal use only Capacity Consistently Overestimated Demand Consistently Underestimated Expected Capacity Forecast in 2012 of Total Lithium Market Demand Brine & Hard Rock versus Actual 2017 kT LCE kT LCE 1400 500 1200 2019 Estimate and 400 1000 Range
Slide 13: Lithium & boron – essential for a modern world
Lithium & boron – Lithium essential for a modern Demand growing at ≈20% p.a. world For personal use only Electric Vehicles Energy Storage • Strong demand growth • Limited supply in North America • Sustainable materials essential for modern life Boron • Broad range of uses mitigates Demand growing at
Slide 14: Rhyolite Ridge ideally located to markets
Rhyolite Ridge ideally located to markets For personal use only Jadar Rhyolite Ridge Asia + North America = • >75% of boron demand • ~80% of lithium demand Lithium districts Boron deposits Lithium & Boron deposits Logistical advantage – transport costs important for all industrial minerals ASX: INR
Slide 15: Milestones ahead
Milestones Delivering a major lithium-boron mine in the USA ahead Strategic partnerships – global investment bank running formal process For personal use only Fluor to complete DFS in Q3 2019 Pilot plant to test flowsheet and produce samples for customers Testwork and trade-off study on alte
Slide 16: Summary
Summary For personal use only ioneer is set to deliver a Rhyolite Ridge is a globally significant lithium-boron searlesite resource major lithium-boron mine in the USA Strategically located in a tier one mining jurisdiction - Nevada, USA 100%-owned Rhyolite Ridge: Leading project to become America’s
Slide 17: Providing the materials for a sustainable & thriving planet
For personal use only Providing the materials for a sustainable & thriving planet. Bernard Rowe Ian Bucknell Managing Director Chief Financial Officer 17 ASX: INR
Slide 18: Appendix
For personal use only ASX: INR Appendix 18
Slide 19: Experienced Board with lithium-boron development expertise
Experienced Board with lithium-boron development expertise For personal use only James D. Calaway Alan Davies Patrick Elliott John Hofmeister Bernard Rowe Non-executive Non-executive Non-executive Non-executive Managing Director Chairman Director Director Director Former: Former: Former: Former: For
Slide 20: Commercial & Technical Team
Commercial & Technical Team: For personal use only Ian Bucknell Matthew Weaver Michael Le Page Yoshio Nagai Peter Ehren Chief Financial Officer Sr. VP Engineering & Commercial Sales & Business Lead Process Operations Director, Sales & Development Director Engineer Marketing Key experience: Key exper
Slide 21: Key steps to production
Key steps to production For personal use only Indicative Timeline for Rhyolite Ridge* 2017 2018 2019 2020 2021 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 Key deliverables 2019: Pre Feasibility Study • Pilot plant to produce samples for customers Definitive Feasibility St
Slide 22: Nevada – Tier 1 Mining Jurisdiction
Nevada – Tier 1 For personal use only Likely to benefit from the US Government’s renewed emphasis on domestic supplies of critical minerals • Tier 1 Mining Jurisdiction Looking south-east over Rhyolite Ridge South Basin • Excellent infrastructure with direct access to rapidly expanding American and
Slide 23: Project overview
Project overview For personal use only A searlesite resource that is different to other sedimentary lithium deposits - it is suitable for a simple acid leach process • Total Resource1 of 4.1 million tonnes lithium carbonate & 10.9 million tonnes boric acid • Including 121 million tonnes of lithium-b
Slide 24: Rhyolite Ridge cross section
Rhyolite Ridge cross section For personal use only Lithium-boron searlesite ore Lithium clay mineralisation Lithium-boron ore: • Outcrops over 3 km and dips gently to west • 20m to 40m thick and laterally consistent • Resource open to south, north and east
Slide 25: Processing
Processing For personal use only Using processing technologies proven at commercial scale On-site acid plant provides all of the steam and power required (+ circa 38MW surplus) Ore crushed to 25mm Ore vat leached at 50-60o C and at ambient pressure (similar to oxide copper) Boric acid crysta
Slide 26: Boric Acid Circuit
Boric Acid Circuit Material circuits Brine Brine Lithium Circuit For personal use only PLS into boric acid circuit to be circa: Slurry Boric Acid Boric Acid Boric Acid Crystallisation Centrifuges Dissolution / Product Drying Flotation Slurry Recrystallisation Centrifuges 50-60o C 0.05-0.10% Li
Slide 27: Lithium and boron conversion factors
Lithium and boron conversion factors For personal use only • Lithium and boron grades are fundamentally presented in parts per million (“ppm”) or percentages of each element in a given The conversion factors presented below are sample or estimate. calculated on the atomic weights and number of atoms
Slide 28: October 2018 Mineral Resource Estimate
October 2018 Mineral Resource Estimate (1,050ppm Li Cut-off) Total Resource including Lithium-Only Mineralisation and Lithium-Boron (Searlesite) Mineralisation Contained Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium For personal use only Mt ppm ppm % % % kt kt kt I