Renascor Resources Ltd · ASX:RNU
Renascor Resources — Investor Presentation (December 2019)
29 slides from Renascor Resources's investor presentation, Dec 5, 2019
Slide 1: Renascor Resources: Developing a World-Class Australian Graphite Project
Renascor Resources Developing a World-Class Australian Graphite Project 5 December 2019 Investor Presentation Equity Raising ASX: RNU
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may include statements that could be deemed "forward-looking" statements. Although Renascor Resources Limited (the "Company") believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are n
Slide 3: Section 1: Introduction
Section 1: Introduction 3
Slide 4: Company Overview
Company Overview ▪ Minerals exploration and development company with a portfolio of assets in key minerals districts in South Australia ▪ Focused on development of core asset, the Siviour Graphite Project in South Australia, into a world- class graphite mining operation ▪ Project hosts one of the wo
Slide 5: Investment Highlights
Investment Highlights ✓ Perfectly positioned to help meet the graphite supply gap arising from inability of existing Future supply gap supply to meet demand driven by lithium-ion battery demand ✓ One of the world’s largest graphite Resources Low cost, world class ✓ Flat-lying deposit orientation dri
Slide 6: Section 2: Equity Raise Summary
Section 2: Equity Raise Summary 6
Slide 7: Equity Raising Structure
Equity Raising Structure Placement Shares The issue price is 1.1c per fully paid ordinary share (“Placement Price”). & price Placement of new fully paid ordinary shares (“New Shares”) to raise $1.4m (“the Placement”) Placement Capacity The Company intends to issue up to 125,727,273 fully paid ordina
Slide 8: Pro Forma Capital Structure
Pro Forma Capital Structure Item Current Maximum Share Chart Placement - 1.4m 0.060 60 SPP - 0.5m Total Raising - 1.9m 0.050 50 Total Shares Issued - 171m Volume (Million shares) 0.040 40 Price (A$/share) Cash 1.8m (30-Sep) 3.7m Shares on Issue 1,159m 1,330m 0.030 30 Performance Rights 12m 12m Optio
Slide 9: Indicative Timetable
Indicative Timetable Key Events December 2019 Trading Halt 8:30am Tues, 3rd Placement Book Opens 10am Tues, 3rd Placement Book Closes 5pm Wed, 4th SPP Record Date 7pm Wed, 4th Allocations advised 8pm Wed, 4th Announce Placement & SPP, Trading Halt Lifted 10am Thurs, 5th SPP Offer Opens, SPP Offer Do
Slide 10: Section 3: Project Summary
Section 3: Project Summary 10
Slide 11: Project Development Summary
Project Development Summary ▪ Siviour DFS completed in November 2019 Stage 1 Stage 2 LOM considers two stages Parameters 1 Years 1 to 4 Years 5 to 10 40 years A$ US$ A$ US$ A$ US$ ▪ Stage 1: Average Annual Production 80ktpa 144ktpa 105ktpa o Production of 80ktpa, low operating Throughput run of mine
Slide 12: Low Operating Cost
Low Operating Cost First quartile operating costs globally in mining friendly South Australia for both Stage 1 and Stage 2 Benchmark Mineral Intelligence, and Renascor announcement dated 11 November 2019, p 27. Renascor Resources Ltd | ASX: RNU renascor.com.au 12
Slide 13: Siviour Graphite Deposit
Siviour Graphite Deposit High-grade portion of the Siviour Resource to be targeted in the initial phases of a 14 phase mining plan Mineral Resource Estimate Resources TGC Contained Category (Mt) (%) Graphite (Mt) Measured 15.8 8.8% 1.4 Indicated 39.5 7.2% 2.8 Inferred 32.1 7.2% 2.6 Total 87.4 7.5% 6
Slide 14: Metallurgy
Metallurgy Metallurgical testing has established ability to produce high quality graphite products at low operating cost using conventional (non-chemical, non-thermal) flowsheet1 Particle Size Stage-one Stage-two Flake Weight % Annual Annual Category Microns (µm) Mesh Production Production Jumbo +30
Slide 15: Graphite Supply and Demand Balance -100 mesh (-150μm)
Graphite Supply and Demand Balance -100 mesh (-150μm) The greatest graphite supply deficit can be seen in the -100 mesh (-150μm) flake size ▪ High demand for lithium ion battery anode manufacture is driving the supply deficit in the -100 mesh (-150μm) flake size ▪ Siviour DFS product specification i
Slide 16: Advantage of New Graphite Supply from Australia
Advantage of New Graphite Supply from Australia Renascor offers competitive new supply from secure jurisdiction: Australia ▪ In recent years, potential new supply has been dominated by large developments in East Africa ▪ Sovereign risk poses added challenge to securing development capital and offeri
Slide 17: Mine to Market
Mine to Market Established infrastructure in coastal South Australia provides low-cost, low-risk logistics ▪ Siviour Project is strategically located: o 8km from major highway leading to established port o 12km from main electricity grid ▪ Land rights have been secured through purchase option Renasc
Slide 18: Project Approvals
Project Approvals Project is well advanced into approvals process ▪ Mineral Lease granted o Consistent with Mineral Lease Application (MLA) ▪ Extensive environmental review completed o Three-year period of preparation and review of all potential environmental, social, economic and technical aspects
Slide 19: Offtake Strategy and Status
Offtake Strategy and Status Aim is to negotiate offtake terms that support debt funding ▪ Signed a non-binding MOU in April 2018 to provide graphite concentrates to China’s Qingdao Chenyang Graphite (“Chenyang”) o Chenyang is one of the largest graphite companies in the Qingdao area of China’s Shand
Slide 20: Section 4: Advanced Manufacturing - Spherical Graphite
Section 4: Advanced Manufacturing - Spherical Graphite 20
Slide 21: Downstream Production of Spherical Graphite
Downstream Production of Spherical Graphite Siviour graphite concentrates can be upgraded to higher value spherical graphite The graphite supply chain from mine to lithium-ion battery anode ▪ Spherical graphite is manufactured from graphite produced at mine site through a further milling and purific
Slide 22: Supply of Spherical Graphite Dominated by China
Supply of Spherical Graphite Dominated by China China currently supply 100% of the natural flake graphite used in lithium ion battery anodes ▪ Non-Chinese battery suppliers are dependent on Chinese mines and Chinese spherical production for critical raw material ▪ Chinese supply under stress as stri
Slide 23: Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More Value from Siviour
Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More Value from Siviour ▪ Spherical graphite PFS shows potential for valued-added production of spherical graphite ▪ Leverages off key comparative advantages of Siviour mine, namely low-cost and low-sovereign risk See Renascor ASX
Slide 24: Section 5: Conclusions and Next Steps
Section 5: Conclusions and Next Steps 24
Slide 25: Re-Rating Potential
Re-Rating Potential Renascor has quickly advanced the development of Siviour since its discovery in 2016 and has potential to continue to climb the value curve. Market capitalisations as of 7 Sep 19 (source: ASX reports and publicly available price information) Renascor Resources Ltd | ASX: RNU rena
Slide 26: Near-term Value Drivers
Near-term Value Drivers ▪ Strong upcoming news flow expected to include: o Offtake; With the completion of DFS, there are plans to generate customer samples for potential offtake developments in 2020 o FEED; After the DFS release the Project advances to the FEED level engineering o Regulatory; Miner
Slide 27: Timeline to Production
Timeline to Production Renascor Resources Ltd | ASX: RNU renascor.com.au 27
Slide 28: Summary
Summary ▪ Siviour DFS confirms a world-class graphite deposit ▪ One massive ore body offers consistent high-quality supply ▪ Globally competitive low-cost operations ▪ Staged project development offers fundable initial capex ▪ In-principle finance support from Dutch Export Credit Agency ▪ In paralle
Slide 29: Renascor Resources Limited
Renascor Resources Limited 36 North Terrace Kent Town, South Australia 5067 Phone: + 61 8 8363 6989 Email: info@renascor.com.au Website: www.renascor.com.au ASX Code: RNU
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