Neometals Ltd · ASX:NMT
Neometals — Non-Deal Roadshow (March 2018)
72 slides from Neometals's roadshow presentation, Mar 22, 2018
Slide 1: Presentation – US/UK Roadshow – March 2018
For personal use only All the right elements ® Presentation – US/UK Roadshow – March 2018 ASX Code: NMT OTC/Nasdaq Intl: RDRUY 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: For personal use only
3 For personal use only + = + =
Slide 4: Long-term Strategy
Long-term Strategy For personal use only Returned $30M in dividends/buyback over last 3 years + = 4
Slide 5: We have the Human and Financial Resources to execute
We have the Human and Financial Resources to execute For personal use only ASX CODE: NMT OTC:RDRUY 12 MONTH SHARE PRICE Last close (7 Mar‐18) A$ 0.355 Shares on issue M 543.5 0.60 Market capitalisation A$M 193 Net Cash (31‐Dec‐17) A$M 40 0.50 Receivables/Investments A$M 23 0.40 0.30 MAJOR SHAREHOLDE
Slide 6: For personal use only
6 For personal use only + = + =
Slide 7: We entered into the Lithium Industry at the start of the megatrend in 2009
We entered into the Lithium Industry at the start of the megatrend in 2009 For personal use only 7
Slide 8: Aim to develop the most sustainable, highest-margin lithium business
Aim to develop the most sustainable, highest-margin lithium business For personal use only + = 8
Slide 9: Integrate - Get down cost curve; Scale up – Organic growth
1. Integrate - Get down cost curve 2. Scale up – Organic growth For personal use only + = 9
Slide 10: Upstream processing: Lithium Concentrate
Upstream processing For personal use only Lithium Concentrate + = 10
Slide 11: Mt Marion
Mt Marion World’s largest lithium concentrator For personal use only + = 11
Slide 12: Mt Marion – World Class Operation
Mt Marion – World Class Operation 450kt concentrates pa (cont ~55kt LCE) For personal use only • 1H FY18 EBITDA A$52M (100% basis) • 1H FY18 Profit A$7.35M (NMT share) • NMT shareholder loan A$8.2M • NMT holds 13.8% equity • Large Resource – 78Mt* • Open at depth/along strike • Processing 2.4Mtpa •
Slide 13: Strong Operating Partner
Strong Operating Partner For personal use only Australia’s largest contract minerals processor Operate mine-to-port on BOO basis No upfront capital cost to NMT Minimum production levels (~50ktpa LCE) Fixed rate mining and processing costs + = 13
Slide 14: Outstanding Offtake Agreement
Outstanding Offtake Agreement For personal use only China’s largest, most diverse lithium producer Life-of-Mine, Take-or-pay Offtake Agreement From 1 July moving to transparent Lithium Carbonate/Lithium Hydroxide linked formula, with floor price protection – US$841/t CIF for SepQ Letter of C
Slide 15: Mt Edwards (100% NMT)
Mt Edwards (100% NMT)* Brownfields Exploration Project For personal use only • Fertile LCT pegmatites present • 240 km2 of tenure and mineral rights • Excellent sealed road/rail/energy infrastructure • Multiple Historic Nickel Mines with remnant mineralisation (*) Subject to completion. Refer to NMT
Slide 16: Mt Edwards Central Area Targets
Mt Edwards Central Area Targets For personal use only + = 16
Slide 17: Mt Holland Lithium Project
Mt Holland Lithium Project (via 36% Hannans Ltd – ASX:HNR) For personal use only Location map showing Hannans 100% owned tenure. Refer to ASX:HNR Announcement “ Hannans – Mt Holland Lithium” released on 16 January 2018. Location map showing Western Australian producing mines and exploration projects
Slide 18: Downstream processing: WA-based LiOH Project
For personal use only Downstream processing WA-based LiOH Project Neometals 100% Mt Marion Offtake Option for min 12.37% spodumene concentrates
Slide 19: Build a secure LiOH supply for the Western cathode/battery/car makers
Build a secure LiOH supply for the Western cathode/battery/car makers For personal use only
Slide 20: Build a sustainable cost-competitive supply for Western battery supply chain
Build a sustainable cost-competitive supply for Western battery supply chain For personal use only 7 t of Spodumene Concentrate per tonne of LiOH Local Processing means: • No road transport to port • No port/shipping costs • No VAT (17%) on import into China
Slide 21: Commercialisation Plan
Commercialisation Plan For personal use only • Local plant to minimise transport from Mt Marion 7t spodumene concentrate needed for 1t of LiOH • Utilise local natural gas, sulfuric acid and workforce • Conventional flowsheet -Remove technology risk – speed to market Vendor FEED Study Test work & *&
Slide 22: Potential growth options
Potential growth options For personal use only + = 22
Slide 23: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP (5 US Prov. Pats) Exclusive licence to commercialise + =
Slide 24: Less than 5% Li-ion batteries are recycled
Less than 5% Li-ion batteries are recycled Co For personal use only Typically = 20% Co + = 24
Slide 25: Demo Plant Schematic and Study Results
Demo Plant Schematic Co and Study Results For personal use only Scoping Study Results (± 30% accuracy) • Operating Costs US$4.45/lb Co (US$10k/t) • Spot price US$25/lb Co (US$55k/t) • Capex US$4.5M • Pilot Plant being commissioned. • Can be constructed and commissioned in 42 weeks + = 25
Slide 26: Commercialisation Plan
Commercialisation Plan Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 26
Slide 27: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 27
Slide 28: Globally Significant Ti Resource
Globally Significant Ti Resource For personal use only Resource based on 1,000 RC & Diamond holes to 60m below surface. Drilled to +250mbs + = 28
Slide 29: Just scratched the surface
Just scratched the surface For personal use only Government Seismic Survey indicates intrusion extends ~4km below surface + = 29
Slide 30: Evaluating potential for Direct Shipping Ore and Toll-concentration in China
Evaluating potential for Direct Shipping Ore and Toll-concentration in China For personal use only + = 30
Slide 31: Dual Track Evaluations
Dual Track Evaluations For personal use only Conventional Process Neomet Process Barrambie Geraldton Barrambie Geraldton China – Ti China - Toll China – Ti China - Toll Slag Concentrator Hydrolysate Concentrator Ti Pigment Ti Pigment + = 31
Slide 32: Neomet Process: Product Efficiency
Neomet Process: 3 Product Efficiency For personal use only Strong EPC & OEM Strategic Alliance + = 32
Slide 33: Successful evaluation of Neomet Process will disrupt the Ti industry
Successful evaluation of Neomet Process will disrupt the Ti industry For personal use only Increased Scale of Test work + Increasing Accuracy of Engineering studies = Lowering Opex + = 33
Slide 34: Commercialisation Plan
Commercialisation Plan For personal use only Met and Pilot Scale Pilot Scale DSO/Toll Exploration Beneficiation Hydromet Concentrate/ Drilling Test work Test work and/or Results for Neomet Neomet DFS Evaluation* Decisions* DecQ 17 MarQ 18 SepQ 18 DecQ 18 Offtake/Partner Selection Process (*) Subject
Slide 35: Investment Proposition
For personal use only 35 Investment Proposition + = 35
Slide 36: Lithium: Cash, cashflow & growth options
Lithium : Cash, cashflow & growth options For personal use only 03 02 Increasing quality (and revenue) of 01 production from Mt Marion + Cashflows from ~A$40M Cash plus ~A$23M in receivables and 13.8% Mt Marion + Downstream conversion to LiOH. investments + = 36
Slide 37: Titanium: the big one
Titanium : the big one For personal use only 03 02 01 Commence DFS + Successful completion of + Obtain Strong Partners Completed PFS Pilot Plant to Commercialise + = 37
Slide 38: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 02 Secure partners 01 Successful to commercialise Secured Strong Partners for + completion of Pilot Plant for - Li Battery + - Li Battery Recycling - Brine IP & ELi Neomet Process Recycling + = 38
Slide 39: Thank you
For personal use only Thank you www.neometals.com.au + = 39
Slide 40: Supporting Information
For personal use only 40 SUPPORTING INFORMATION 40
Slide 41: Corporate
For personal use only 41 Corporate + = 41
Slide 42: Tactical Plan – FY18
Tactical Plan – FY18 For personal use only • Increase offtake quality to all 6% Li2O and revenues through plant upgrade • Advance local LiOH project with vendor testwork, offtake and partner selection processes. • Fast-track evaluation of recycling process pending Mini-Max Test work. • Fast-track ev
Slide 43: Board of Directors
Board of Directors For personal use only Steven Cole Chris Reed David Reed Natalia Streltsova Doug Ritchie Chairman Managing Director Non‐Executive Director Non‐Executive Director Non‐Executive Director Steven has 35 years of Chris started in the mining David was a director and Natalia Streltsova is
Slide 44: Executive Team
Executive Team For personal use only Mike Tamlin Darren Townsend Jason Carone Paul Wallwork Eileen Hao COO CDO CFO & Co Sec GM Marketing GM China Mike has over 35 years Darren is a Mining Jason . holds a Bachelor of Paul has nearly 30 years of Eileen has 22 years experience, including over Engineer
Slide 45: Consultant Team
Consultant Team For personal use only Darren Wates Dr Bryan Smith Clay Gordon Dr Yatendra Sharma Mike Spratt General Counsel Geologist Geologist PM ‐ Lithium PM ‐ Titanium Darren has over 15 years’ Bryan has over 45 years’ Clay . obtained a Bachelor Yatendra holds a PhD in Michael is a Metallurgist
Slide 46: Operating Structure
Operating Structure For personal use only + = 46
Slide 47: Mt Marion Lithium Operation
Mt Marion For personal use only Lithium Operation Neometals 13.8% through Reed Industrial Minerals Pty Ltd + = 47
Slide 48: Mine Production/Guidance
Mine Production/Guidance* For personal use only Mt Marion Project H2 FY17 H1 FY18 6% Tonnes exported 000 WMT 50.0 109.0 4% Tonnes exported 000 WMT 66.0 93.0 Total Tonnes exported (100%) 000 WMT 116.0 202.0 Revenue A$/WMT 782.9 808.9 C1 costs A$/WMT 570.9 474.9 Total expenses A$/WMT 658.0 548.4 EBITD
Slide 49: Mineral Resource Estimate
Mineral Resource Estimate Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 Inferred
Slide 50: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP (3 US Prov. Pats) Exclusive licence to commercialise + =
Slide 51: Closing the loop: Recycle and re-use
Closing the loop:Recycle and re-use Co For personal use only + = 51
Slide 52: Flow Sheet
For personal use only 52 Flow Sheet + = Co
Slide 53: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 53
Slide 54: Neomet Process: Product Efficiency
Neomet Process: 3 Product Efficiency For personal use only Strong EPC & OEM Strategic Alliance + = 54
Slide 55: Why Titanium Hydrolysate?
Why Titanium Hydrolysate? For personal use only + = 55
Slide 56: Mineral Resource Estimate
Mineral Resource Estimate Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transition 8.7
Slide 57: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost A$ 549 million [1 (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)
Slide 58: Research & Development
For personal use only Research & Development + =
Slide 59: Our Approach
Our Approach For personal use only • R&D Projects must : • address real market opportunity, • create a sustainable competitive advantage • Have strong business case • Conduct Engineering Cost Studies asap to not waste time/money + = 59
Slide 60: Lithium Titanate R&D
For personal use only Downstream processing Lithium Titanate R&D Neometals 100% + =
Slide 61: Superior Anode Material for EV
Superior Anode Material for EV For personal use only + = 61
Slide 62: Research & Development Plan
Research & Development Plan For personal use only Produced Cycle testing Optimisation Cycle testing LTO at in commercial Testwork at in larger CSIRO pouch-cell CSIRO format (18650) Li-ion battery Li-ion battery JunQ 17 SepQ 17 DecQ 17 JunQ 18 (*) Subject to Board Approval + = 62
Slide 63: Direct Extraction of LiCl from Brine
For personal use only Downstream processing Direct Extraction of LiCl from Brine 100% Neometals + =
Slide 64: Replace Evaporation with faster, friendlier LiCl recovery process
Replace Evaporation with faster, friendlier LiCl recovery process For personal use only + = 64
Slide 65: Direct Extraction via Adsorption
Direct Extraction via Adsorption For personal use only • Pat pending Titanate adsorbent • Quick load/strip cycle – 30mins • Complete rejection of sodium • High recovery of Lithium 53-79% • Returns water to salar, no evaporation • Next Step - Proof of Scale + = 65
Slide 66: Direct Conversion of LiCl to LiOH
For personal use only Downstream processing Direct Conversion of LiCl to LiOH Neometals 70% Mineral Resources Ltd 30% + =
Slide 67: Patented ELi Process - conversion of LiCl to LiOH from any source
Patented ELi Process - conversion of LiCl to LiOH from any source For personal use only IP • 1 Granted patent (AU) • 18 Pats pending + = 67
Slide 68: Gamechanger for LiOH from brine production
Gamechanger for LiOH from brine production For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 68
Slide 69: Technology Licensing
For personal use only Technology Licensing Neomet Process Neometals - 25% of sub-licencing royalties + =
Slide 70: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, in use commercially for treating refractory copper-gold concentrates. Neometals Laboratory in Montreal First sublicence issued in SeptQ 17 + = 70
Slide 71: Commercialising technology with leading industry partners
Commercialising technology with leading industry partners For personal use only + = 71
Slide 72: Project Development Phasing
Project Development Phasing For personal use only Laboratory scale set up (above) Pilot scale up (below) + = 72