Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — BMO Capital Markets 26th Global Metals & Mining Conference 2017
30 slides from Sunrise Energy Metals's conference presentation, Feb 27, 2017
Slide 1: Clean TeQ Presentation – BMO Capital Markets Conference
Australian Securities Exchange & Media Announcement Clean TeQ Holdings Limited (ASX: CLQ) 27 February 2017 Clean TeQ Presentation – BMO Capital Markets Conference Co-Chairman of Clean TeQ Holdings Limited (ASX:CLQ) (Clean TeQ or Company) Mr Robert Friedland and Co-Chairman and CEO Sam Riggall will b
Slide 2: Syerston Project: Nickel and Cobalt Sulphate for the Lithium-Ion Battery Industry
SYERSTON PROJECT NICKEL AND COBALT SULPHATE FOR THE LITHIUM-ION BATTERY INDUSTRY SAM RIGGALL, CEO BMO GLOBAL METALS AND MINING CONFERENCE 2017
Slide 3: Disclaimer
DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared by the management of Clean TeQ Holdings Limited (the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The information is based on publicly a
Slide 4: Corporate Overview
CORPORATE OVERVIEW Issued Capital Cash and Debt ASX code CLQ Cash @ 31 Dec 2016 A$15.5 M US OTC market (OTCQX Best) CTEQF Liabilities (Mar-18 notes) A$3.0 M Shares 478.8 M Share Price (A$/share)2 Options 48.0 M Performance Rights 4.9 M Share Price (23 Feb 2017) A$0.80 52-week Trading Range A$0.12 -
Slide 5: The Electric Revolution
THE ELECTRIC REVOLUTION SSY Y EER RSS TO T ON N PA PA G GEE 44
Slide 6: Automakers Are Now Responding
AUTOMAKERS ARE NOW RESPONDING EV’S ARE MOVING TO THE MAINSTREAM VW BMW DAIMLER TESLA RENAULT NISSAN- MITSUBISHI Forecasting sales of Forecasting Ten new EV models Tesla 3 was the Will catapult to 2 to 3 million pure 100,000 x-EV sales by 2025 supported most successful world’s largest auto EV’s by 20
Slide 7: Battery Pack Costs Are Falling
BATTERY PACK COSTS ARE FALLING ECONOMIES OF SCALE AND THE EXPERIENCE CURVE Battery Costs Are Falling ($/kWh) Cell average EV systems average 1600 20%pa 1400 1200 1000 800 Last five years has seen 20% pa cost reduction in 600 12%pa EV battery pack systems 400 At the current rate of improvement, EV dr
Slide 8: New Battery Capacity Is Coming
NEW BATTERY CAPACITY IS COMING ALREADY ~US$20B OF COMMITTED INVESTMENT Tesla is important, but the real growth story is in China China is now pushing for an aggressive California- style Zero Emission Vehicle (ZEV) program: 8% EV by 2018, 12% by 2020 Given a 1% EV adoption rate in China today, that t
Slide 9: How Is the Supply Chain Responding? It's Building, Fast
SANYO, JAPAN, 2010 NISSAN, USA, 2013 TESLA, USA, 2017 INVESTMENT IN NEW BATTERY CAPACITY IS VERY LARGE AND REAL SAMSUNG, CHINA, 2015 LG CHEM, CHINA, 2015 LG CHEM, USA, 2013-15 HOW IS THE SUPPLY CHAIN RESPONDING? IT’S BUILDING, FAST… SYERSTON PA G E 8
Slide 10: Cathode Market
CATHODE MARKET SYERSTON PA G E 9
Slide 11: Cathode – The Key to Cost
CATHODE – THE KEY TO COST NICKEL AND COBALT PRICES DRIVE CELL COST Raw Materials Manufacturing Costs Producer Margin Raw Material Cost Breakdown Metal Cost in Cathode Active Material 100% 100% Housing and feedthrough Lithium ~4% of total cell cost 5% 80% Separator 80% Manganese Electrolyte Cobalt 60
Slide 12: Chemistry by Market
CHEMISTRY BY MARKET DOMINANT CHEMISTRIES FOR EV REQUIRE NICKEL AND COBALT 39% 22% 11% 19% 9% 41ktpa 23ktpa 12ktpa 20ktpa 9ktpa LCO NCM NCA LMO LFP (Lithium-Cobalt-Oxide) (Nickel-Cobalt-Manganese) (Nickel-Cobalt-Aluminium) (Lithium-Manganese-Oxide) (Lithium-Iron-Phosphate) Still one of the highest Ex
Slide 13: Nickel & Cobalt Sulphate
“The main determinants on the cost of the cell are the NICKEL & COBALT SULPHATE price of the nickel in the form that we need it … and the cost of the synthetic graphite with silicon oxide coating.” - Elon Musk, Tesla CEO The EV battery industry requires metal to be supplied as salts, usually as sulp
Slide 14: Cathode Demand Forecast
CATHODE DEMAND FORECAST IMPLICATIONS FOR RAW MATERIAL DEMAND Cathode Raw Material Demand (‘000 tonnes) Use of nickel and cobalt dominant LCO NCM NCA LMO LFP chemistries is accelerating in China 713 18% CAGR Of the 10 top selling Chinese EV’s using Contained Metal: Nickel: ~175ktpa LFP chemistry, six
Slide 15: Cobalt: A Problematic Supply Chain
COBALT A PROBLEMATIC SUPPLY CHAIN “The majority of the cobalt is heading straight to China. Their global hold is huge.” - CRU 2016 Percentage of cobalt produced globally as by-product from 95% copper and nickel mining Percentage of global cobalt production originating in the 65% Democratic Republic
Slide 16: Children Mining Coltan, Kivu Region, DRC
PHOTO CAPTION CHILDREN MINING COLTAN, KIVU REGION, DRC “While the occasional [analyst] questions the availability of enough lithium or flake graphite to satisfy soaring demand from the battery industry, everybody has overlooked or ignored the most critical mineral constraint – Cobalt. It’s a truly g
Slide 17: Cobalt Price
COBALT PRICE RISING QUICKLY FROM HISTORIC LOWS Cobalt was one of the best performing metals in 2016, with price increasing ~50% over the year Significant upside in the event of supply disruption At Syerston cobalt is co-product, not by-product: cobalt is ~45% of Syerston’s revenues at today’s spot m
Slide 18: Syerston Project
SYERSTON PROJECT SYERSTON PA G E 1 7
Slide 19: Syerston Project Overview
SYERSTON ORE SYERSTON PROJECT OVERVIEW Syerston is a laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium, located 350km west of Sydney and 100% owned by Clean TeQ Uniquely positioned as one of the largest and highest grade sources of cobalt outside Africa Syerston will be th
Slide 20: Mineral Resource: Low Mining Risk
MINERAL RESOURCE LOW MINING RISK Over 1,300 drill holes to define a significant nickel / cobalt / scandium resource The resource is shallow (5m to 40m) and extends over a 2km horizon; simple and low risk strip- mining Mining accounts for a small fraction of total cash operating costs NICKEL MINERALI
Slide 21: Syerston – A Premier Cobalt Project Outside Africa
COBALT PROJECTS SYERSTON – A PREMIER COBALT PROJECT OUTSIDE AFRICA Undeveloped Global Cobalt Resources (excl Africa) 120,000 0.10 Contained Co in Reserves and M&I Resource (tonnes) Syerston is a globally significant cobalt 100,000 (numbedrs on bars reflect grade, %Co) resource, in a listed vehicle,
Slide 22: 2016 Prefeasibility Study
2016 PREFEASIBILITY STUDY LARGE, LOW-COST AND WITH HIGH COBALT CREDITS 26-28 GWh p.a.# 500,000 Electric Vehicles p.a.* Definitive Feasibility Study due for completion in Q4 2017 Significant scandium credits modelled separately # Assumes NCA chemistry with Ni and Co content by wt% within cathode acti
Slide 23: Scandium – A Case Study
Scandium – a case study Airbus Group’s Lightrider: the world’s first 3D printed electric bike Aluminum-scandium frame makes it lighter and stronger The bike weighs 35kg, contains a 6kWh battery, has a top speed of 80km/h and a range of 60km The most effective way to increase an EV’s range and perfor
Slide 24: Next Steps
NEXT STEPS SSY Y EER RSS TO T ON N PA PA G GEE 2233
Slide 25: Project Is Development Ready
PROJECT IS DEVELOPMENT READY KEY PERMITTING COMPLETED STUDIES INFRASTRUCTURE EIS POWER & GAS WATER Prefeasibility Study All key infrastructure is Environmental Impact Power and gas are The Project has a completed, with available, including Statement completed within close proximity 3.2GLpa water Def
Slide 26: Syerston Pilot Plant
PILOT PLANT SYERSTON PILOT PLANT Clean TeQ has a large scale pilot plant located in Perth, Western Australia to simulate the entire leaching and RIP extraction process at scale A pilot campaign in 2016 processed ~50 tonnes of Syerston ore to produce nickel and cobalt sulphate samples for customer sa
Slide 27: Syerston Sample Production
SAMPLE PRODUCTION SYERSTON PURIFICATION CIRCUIT Good progress is being made on purification of nickel and cobalt eluate to battery-grade specification Next steps are crystallisation and assays SYERSTON PA G E 2 6
Slide 28: Investment Takeaways
INVESTMENT TAKEAWAYS One of the Located in an Significant Key Forty year largest cobalt established scandium permitting in mine life deposits mining district upside place outside Africa in Australia SYERSTON PA G E 2 7
Slide 29: Reserves and Resources: Competent Person Consents
RESERVES AND RESOURCES COMPETENT PERSON CONSENTS The information in this document that relates to nickel-cobalt Mineral Resources is based on information compiled by Diederik Speijers and John McDonald, who are Fellows of The Australasian Institute of Mining & Metallurgy and employees of McDonald Sp
Slide 30: Contact
CONTACT Sam Riggall Co-Chairman & CEO Clean TeQ Holdings Limited 12/21 Howleys Road Notting Hill VIC 3168 AUSTRALIA www.cleanteq.com M: +61 3 9797 6700 E: sriggall@cleanteq.com SYERSTON PA G E 2 9
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