Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (May 2023)
35 slides from Neometals's investor presentation, May 16, 2023
Slide 1: Barrambie Titanium Project – Sunrise for the Sleeping Giant
For personal use only Barrambie Titanium Project “Sunrise for the Sleeping Giant” Investor Presentation 16 May 2023 ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 2: Disclaimer
Disclaimer Summary information Not financial product advice or offer This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information This document is for information purposes only and is not a prospectus, product disclosure statement or other offer docu
Slide 3: Agenda
Agenda For personal use only Introduction Titanium Market The Project: Barrambie The Development Approach The Team ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 3 neometals.com.au
Slide 4: Barrambie Investment Proposition
Barrambie Investment Proposition 1 Strong Demand/Supply Fundamentals for Titanium • Securing access to large, high grade chloride feedstock is a strategic imperative to downstream users. For personal use only • Completed Commercial-scale smelting trials with partner Jiuxing to prove use of Barrambie
Slide 5: Titanium Market
For personal use only Titanium Market ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 6: Uses and Sources of Titanium
Uses and Sources of Titanium Titanium pigment (paint, paper, plastics) primary use. Ilmenite is the primary feedstock source For personal use only Welding (flux) 5% Titanium Metal 5% Titanium Pigment 90% ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 6 neometals.com.au
Slide 7: Demand
Demand China’s transition from sulphate to chloride pigment needs more high-quality feedstocks like titanium slag and synthetic rutile For personal use only Titanium Demand by Feedstock • China, which is half of world pigment production is converting it from sulphate to chloride process to reduce ir
Slide 8: Supply
Supply World supply of high-quality mineral sands in decline – slags from smelted ilmenites set benchmark prices For personal use only Titanium Feedstock Supply by Product • Global 2022 titanium supply/demand balanced at ~8.6 million TiO2 units • Global supply expected to remain relatively flat at ~
Slide 9: Smelting ilmenites (slag) is the only solution
Smelting ilmenites (slag) is the only solution Emerging structural Chloride and Sulphate Deficits – Barrambie is a proven chloride-slag feedstock For personal use only Titanium Feedstock Market Balance • Commercial scale smelting trials have proven use of Barrambie concentrate into high-grade titani
Slide 10: Pricing
Pricing Strong LT price trend for Chloride and Sulphate Feedstocks For personal use only Chloride Feedstock Supply China Imported Sulphate Ilmenite Demand Balance and Ilmenite Price Volume and Price ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 10 neometals.com.au
Slide 11: The Project - Barrambie
For personal use only The Project - Barrambie ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 12: Barrambie Background
Barrambie Background A truly world class development opportunity • The world’s 2nd highest-grade hard-rock titanium asset For personal use only • 100% owned by Neometals through Australian Titanium Pty Ltd located in Tier 1 Jurisdiction with excellent infrastructure • >$40m invested in exploration a
Slide 13: Mineral Resource Estimate and Ore Reserve
Mineral Resource Estimate and Ore Reserve Long, Wide, Deep – Layered Intrusion For personal use only Mineral Resource Estimate Tonnes Classifi-cation TiO2 (%) V2O5 (%) (Mt) Indicated 187.1 9.61 0.46 Inferred 93.0 8.31 0.40 Total 280.1 9.18 0.44 Ore Reserve Estimate The Ore Reserve is within the Mine
Slide 14: Products
Products Proven through extensive bulk mining and piloting For personal use only • The primary product to be recovered from Barrambie direct shipping ore (DSO) and mixed gravity concentrate (MGC) is ilmenite • Barrambie ilmenite contains low levels of CaO, MgO, Cr2O3, U & Th and compares favourably
Slide 15: Development Approach
For personal use only Development Approach ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 16: Barrambie Development Path
Barrambie Development Path Long-life concentrate export operation supplying worlds largest titanium market For personal use only ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 16 neometals.com.au
Slide 17: Capital-light Execution Strategy
Capital-light Execution Strategy Contract open-pit mining, contract crushing and screening (DSO) For personal use only Milling and Gravity Concentration under BOOT or EPCM (MGC) ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 17 neometals.com.au
Slide 18: Staged Development Approach
Staged Development Approach Early contractor engagement process with NRW/Primero for contract mine-to-port solution For personal use only 1- DSO 2 - MGC 3 - LTR - Potential Future Option Direct Shipping Ore Mixed Gravity Concentrate Ilmenite & Fe/V Concentrate • Mining and Crushing • Mining and Crus
Slide 19: Robust Economics @ Floor Prices
Robust Economics @ Floor Prices For personal use only For full details refer to Neometals ASX release dated 15 May 2023 titled ““Barrambie PFS and Ore Reserve Update” ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 19 neometals.com.au
Slide 20: Offtake Term Sheet with China's leading Ti slag producer
Offtake Term Sheet with China’s leading Ti slag producer Take-or-Pay, Market Linked Pricing, Fixed Floor Price with upwards CPI adjustment For personal use only • MoU signed with Jiuxing Titanium Materials Co. Ltd Summary of Key Offtake Parameters (“Jiuxing”) in 2021* Term Years 5 • Jiuxing Term She
Slide 21: Outstanding Smelting Trial Results by Jiuxing
Outstanding Smelting Trial Results by Jiuxing Chloride Grade Titanium Slag produced with blends of Barrambie MGC For personal use only • Smelting trial run by offtake partner Jiuxing Titanium Chloride grade Titanium slag quality Materials at production facility in Liaoning, China Indicative Chinese
Slide 22: Mining operations will stockpile high V Central Bands
Mining operations will stockpile high V Central Bands Free call option on leading battery material for stationary energy storage For personal use only Vanadium Demand by End Use, 2023-2040 • The mine plan focusses on extracting the high- titanium Eastern Band at Barrambie, significant volumes of hig
Slide 23: MOU with Australian Vanadium Ltd
MOU with Australian Vanadium Ltd Evaluating infrastructure sharing and co-production of V from downstream processing Barrambie concentrates For personal use only Location of AVL Processing Plant • The Barrambie project can produce an iron/vanadium concentrate co-product from LTR separation of an ilm
Slide 24: Indicative Timeline and Newsflow
Indicative Timeline and Newsflow Continue to grow resource, de-risk and develop For personal use only H1 2023 H2 2023 H1 2024 H1 2025 H1 2026 Complete Formal Offtake Commence DFS for Year 1 DSO operation MGC operations Project Strategy / Agreement* for CMB/ MGC commence Corporate Structure DSO/MGC R
Slide 25: The Team
For personal use only The Team ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 26: Proven mine developers and operators
Proven mine developers and operators For personal use only Greg Evans Casper Adson Darren Townsend Les Guthrie Corporate Finance Chartered Chemical Engineer Mining Engineer Mechanical Engineer Greg has 25+ years experience in Casper is an experienced chemical Darren is a Mining Engineer with 25+ Les
Slide 27: Join us as we develop the worlds second largest hard-rock mine
For personal use only Join us as we develop the worlds second largest hard-rock mine with the largest, market- linked offtake term with floor prices... wait haven’t we done this before? ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 28: Barrambie Investment Highlights
Barrambie Investment Highlights 1 Strong Demand/Supply Fundamentals for Titanium • Securing access to large, high grade chloride feedstock is a strategic imperative to downstream users. For personal use only • Completed Commercial-scale smelting trials with partner Jiuxing to prove use of Barrambie
Slide 29: Appendices
For personal use only Appendices ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 neometals.com.au
Slide 30: Robust Economics @ Floor Prices
Robust Economics @ Floor Prices Summary of Key Parameters from PFS Update Financial Model For personal use only Life of Mine (LOM) Years 13.2 LOM Ore Mined Mt 27.6 LOM Waste Mined Mt 106.0 LOM Strip Ratio (waste: ore) 3.8 Average CMB Plant Feed Rate Mtpa 2.18 Average Titanium Head Grade % TiO2 22.3
Slide 31: Mineral Resource Estimate
Mineral Resource Estimate Classification Domain Oxidation Tonnes (Mt) TiO2 (%) V2O5 (%) Indicated Central Strongly oxidised 112.6 6.71 0.44 For personal use only Weakly oxidised 28.1 7.21 0.47 Fresh 6.8 6.47 0.40 Central sub-total 147.5 6.80 0.45 Eastern Strongly oxidised 26.4 19.68 0.50 Weakly oxid
Slide 32: CMB Plant Flowsheet
CMB Plant Flowsheet For personal use only ASX: NMT | AIM: NMT | OTC: RDRUY | DEU: 9R9 32 neometals.com.au
Slide 33: Capital Cost Estimate
Capital Cost Estimate Capital A$M Incremental Capex Phase Product (A$M) Mining DSO 1.0 Mtpa DSO 78.1 For personal use only Mobilisation, Site establishment & Pre-Strip 4.1 MGC 1.23 Mtpa MGC 137.2 DSO Direct Field Cost 16.4 Contractors Indirects 2.8 Offsite Infrastructure 26.8 Owner’s Costs 13.3 Cont
Slide 34: Operating Cost Estimate & Sensitivity Analysis
Operating Cost Estimate & Sensitivity Analysis A$/t A$/t Opex A$M feed product For personal use only Mining Mining ex-pit 588.1 21.3 39.6 Incremental ore rehandle 11.3 0.4 0.8 CMB CMB Processing Plant 482.8 17.5 32.5 MGC transport to Geraldton Port11 934.5 33.9 63.0 Port storage, ship loading, inter
Slide 35: Approvals and Permits Timeline
Approvals and Permits Timeline All key project approvals are on track For personal use only Environmental Small Operations DSO Works MGC Works Approvals Mining Proposal Approvals Approvals Ministerial Statement Up to 49 kt, to provide For 1.2 MTPA Crush customer samples / Screen operation Includes E