Ioneer Limited · ASX:INR
Ioneer — Non-Deal Roadshow (July 2020)
30 slides from Ioneer's roadshow presentation, Jul 6, 2020
Slide 1: Investor Presentation: Virtual non deal US road show
INVESTOR PRESENTATION ASX:INR Virtual non deal US road show July, 2020 www.ioneer.com 1
Slide 2: Disclaimer, Forward Looking Statements and Competent Persons Statement
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 In respect of Mineral Resources and Ore Reserves referred to in this presentation and previ
Slide 3: World class lithium-boron project confirmed by comprehensive DFS
WORLD CLASS LITHIUM-BORON PROJECT CONFIRMED BY COMPREHENSIVE DFS ALL-IN SUSTAINED CASH COST AT THE BOTTOM OF THE LITHIUM COST CURVE WELL-DEFINED AND RELIABLE OPERATING COST LONG-LIFE RESOURCE WITH VERIFIED EXPANSION POTENTIAL U.S. ADVANTAGE AND LOW-RISK, MINING-FRIENDLY LOCATION IN NEVADA CLEAR PATH
Slide 4: Board of directors
JAMES D. CALAWAY BERNARD ROWE JULIAN BABARCZY Non-executive Chairman Managing Director Non-executive Director FORMER: IONEER: FORMER: Non-exec chairman of Managing Director Head of Australian Orocobre Ltd since August 2007 Equities, Regal Funds Management ALAN DAVIES PATRICK ELLIOTT JOHN HOFMEISTER
Slide 5: Management team
BERNARD ROWE IAN BUCKNELL KEN COON YOSHIO NAGAI MATT WEAVER Managing Director CFO & Company VP Human Resources VP Commercial Sales & Snr VP Engineering & Secretary Marketing Operations RESPONSIBILITIES: RESPONSIBILITIES: RESPONSIBILITIES: RESPONSIBILITIES: Finance HR Lithium & Boron Sales Engineerin
Slide 6: Capital Structure, Share price, Shareholders
Capital Structure Share price (As at 1 July 2020) $0.30 1 July 2019 - 1 July 2020 SHARES OUTSTANDING 1.68B $0.25 $0.20 PERFORMANCE RIGHTS AND 50m OPTIONS OUTSTANDING $0.15 $0.10 CASH BALANCE (31/03/20) A$53m $0.05 $- SHARE PRICE ASX A$0.125 1-Jul-19 1-Sep-19 1-Nov-19 1-Jan-20 1-Mar-20 1-May-20 1-Jul
Slide 7: DFS results: NPV, IRR, revenue, EBITDA, capex
After-tax NPV Unlevered After Annual After-tax (8% real): Tax IRR Cashflow ~US$1.27B ~21% US$193M Annual Revenue Annual EBITDA Estimated Capex US$422M US$288M US$785M The DFS base case lithium carbonate equivalent (LCE) prices averaged ~US$13,000/tonne and boric acid prices averaged US$710/tonne. Al
Slide 8: Annual production: lithium hydroxide, boric acid, mining
Annual Lithium Hydroxide: Annual Boric Acid: 22,000 174,400 Tonnes Tonnes Years 4-26 Years 1-26 Annual Lithium Carbonate Annual Mining: Equivalent: 2.53M 32,000 Tonnes Tonnes Years 1-26 Figures are in metric tonnes Figures calculated over average LOM Lithium Hydroxide production replaces Lithium Car
Slide 9: Large mineral resource, ore reserve and mine life
Large Mineral Large Ore Initial Mine Mine Life Resource1: Reserve1: life: Extension: 146.5Mt 60.0Mt 26 Years 82.7Mt Remaining Ore Mined Resource2 63.8Mt + Extension to Resource 1 For Mineral Resources and Ore Reserve referred to in this presentation, see Company announcement titled “Rhyolite Ridge O
Slide 10: Total revenue per tonne LCE and all-in sustaining cash cost
$23,135 Total Revenue in US$/tonne LCE $18,659 $14,173 Margin $9,924 Margin $8,961 $8,735 $8,861 ALL IN SUSTAINING CASH COST US$2,510 Assumed Lithium Price of $15,000/t Assumed Lithium Price of $11,000/t Product Cost $/t LCE (ex Co-Product) LCE Revenue Boric Acid Revenue Product Cost $/t LCE (ex Co-
Slide 11: 2019 LCE cost curve, global producers
10,000 2019 LCE Cost Curve (US$/metric tonne) Global Producers 9,000 8,000 7,000 6,000 US$ LCE 5,000 4,000 3,000 2,000 1,000 - 0 50 100 150 200 250 300 350 400 1,000 Metric Tonnes ioneer Brine Mineral Source: Roskill for all producing lithium brine and mineral operations shown on this cost curve, ex
Slide 12: Funds in place to support planned activities to end of 2021
Funds in place to support planned activities to the end of 2021 Aim is to be ‘shovel ready’ and permitted by Q2 2021 Goldman Sachs advising ioneer on strategic and financing alternatives DFS completion allows informed strategic funding discussions Strong interest despite challenging times , ioneer w
Slide 13: Rhyolite Ridge funding stack
Equity Equity Financing Vendor Financing Vendor Financing DebtDebt Rhyolite Ridge Rhyolite Funding Stack Ridge AdditionalPartner Tier 1 with Direct Investment Strategic Partner with Strategic Partners Funding in Project Direct investment in Stack Interested Additional Strategic Project Strategic Par
Slide 14: Strategic partnering
Strategic Partnering Processes Opportunity Next Steps Completed • 22ktpa BG LiOH over >26yrs • PFS data room since Jan 2019 • Finalise DFS data room • Bottom of lithium cost curve • Pre-DFS partner engagement • Continue selective partnering discussions • US location, most advanced • Site visits cond
Slide 15: Near-term timeline
Near-Term Timeline Q2 2020 Q3 2020 Q2 2021 Q3 2021 Q2 2023 ✓ Complete DFS • Complete • Major contracts in • Engineering • Mechanical financing plan negotiation Complete completion ✓ Execution Engineering • Award long lead • Complete • Begin concrete • Commission Services (EES) items financing constr
Slide 16: Lithium and boron demand
Lithium demand to grow at >20% CAGR to 2028 Boron demand to grow at ~4% CAGR to 2028 LITHIUM BORON • Essential to all types of EV batteries • Important material for clean technologies and • Conversion of green energy to base load power sustainability • Strong demand growth predicted to beyond 2040 •
Slide 17: U.S. Megafactories 2020-2024
U.S. Megafactories 2020-2024 US demand: • Seven US megafactories in the pipeline to 2024, three are already IM3 New York operational LG CHEM 15GWh Michigan 15GWh • Benchmark Minerals estimates that by 2024, TESLA, GIGAFATORY 1 LG CHEM/GM LORDSTOWN these megafactories Ohio Nevada 60GWh 10GWh will be
Slide 18: Battery supply chain: global share of production
Global share of production (%) in 2019 Stage One: Mining Stage Two: Chemical Processing / Refining Chemical Processing Mining Nickel 8% 0% 31% Cobalt 0% 0% 1% Nickel 13% 1% 65% Graphite* 1% 0% 65% Cobalt 17% 0% 82% Lithium 0% 1% 0% Graphite* 0% 0% 100% Manganese 0% 0% 0% Lithium 0% 4% 59% Stage Thre
Slide 19: EV sales forecast growth
• Forecast growth for this decade is dominated by China and Europe but other regions are starting to move • Europe is forecast to quickly catch and surpass China in total sales • US and Europe need alternative supply of lithium and other battery materials Source: UBS Research – Global Electric Vehic
Slide 20: Battery cost reduction and EV adoption catalysts
• Lithium-ion battery cost reduction is an important catalyst for mass adoption of EVs • Lithium pricing required at levels to incentivise rapid growth of lithium supply from 2023 • Consistent lithium specifications increasingly important for battery cathodes • Automakers moving to ensure lithium su
Slide 21: Global borates demand by end use
Global Borates Demand by End Use • Broad range of essential uses mitigates reliance on single sector Other • USA and China housing markets important drivers of demand Borosilicate LCD / TFT Glass • Increasing demand from agriculture, solar, 8% specialty glass and permanent magnets 19% 5% • Total glo
Slide 22: Nevada location and US demand
• Rhyolite Ridge’s location in Nevada is another key difference that sets the project apart • Nevada is a first rate, low risk, mining friendly jurisdiction with a long history of mining • Well-established infrastructure and labour force • Proximity to the Pacific coast strategically positions the P
Slide 23: Low emissions, low water usage, small mine footprint
Zero C02 power co-generated at site, Low emissions low greenhouse gas emissions. Project design implements best-in-class water utilization Low water usage while recycling the majority of water usage. Small mine footprint No evaporation ponds or tailings dams. Low Greenhouse Gas emissions: 0.19 tons
Slide 24: Surrounded by world class partners
SURROUNDED BY WORLD CLASS ioneer PARTNERS 4 > SNC+LAVALIN Acid Plant and antal Technologies; Acid Plant & EMERSON. \ (@ Automation Solutions Controls KEMETCO RESEARCH INC “a NewFields Spent Ore Pilot Plant KCA Leaching www.ioneer.com ) 24) 3EM STRATEGIES Environmental,
Slide 25: Contacts and DFS video
Bernard Rowe Jane Munday / Grace Altman Megan Moore ioneer Ltd FTI Consulting FTI Consulting Managing Director Investor & Media Relations Investor & Media Relations (Australia) (USA) T: +61 419 447 280 T: +61 488 400 248 / T: +1 917 208 9352 + 61 434 225 643 E: browe@ioneer.com E: jane.munday@fticon
Slide 26: Appendix A - Simple block flow diagram
ioneer APPENDIX A - SIMPLE BLOCK FLOW DIAGRAM Run-of-Mine Ore Crushing to under 20mm Sulphuric Acid Plant & Steam Turbine Suphuric Acid > for Leaching Vat Leaching Vat Leach Spent Ore Lithium Carbonate Packaging & Storage (Expansion) 6Vv20200053-107 yy, www.ioneer.com ) 2)
Slide 27: Rhyolite Ridge lithium hydroxide analysis
Rhyolite Typical Ridge Industry Analysis Specifications Lithium Hydroxide wt% 56.5 56.5 Sodium ppm 28 ≤ 30 Potassium ppm 12 ≤ 200 Iron ppm <1 ≤7 Boron ppm <1 ≤3 Calcium ppm <10 ≤ 250 Sulphate ppm <30 ≤ 300 Chlorine ppm <100 ≤ 100 Magnesium ppm <5 ≤5 Silica ppm 14 ≤ 20 Carbon Dioxide wt% 0.10 ≤ 0.35
Slide 28: Rhyolite Ridge boric acid analysis
Compound or Rhyolite Ridge Typical Industry Units Element Boric Acid Specifications Boric Oxide (B2O3) % >56.5 >56.25 Boric Acid (H3BO3) % >99.9 >99.9 Sulphate ppm <125 <250 Chloride ppm <1 <10 Iron ppm <5 <7 Calcium ppm 13 <50 Sodium ppm 43 <200 Chlorine ppm <5 <10 Lead ppm <10 <20 Arsenic ppm <10
Slide 29: Roskill: Annual price forecast for BG lithium hydroxide
Roskill: Annual price forecast for BG Lithium Hydroxide • The Roskill forecast shows lithium pricing at the bottom of the cycle with improved pricing forecast for 2023 to meet first production from Rhyolite Ridge • Benchmark Minerals Intelligence forecasts a similar price recovery • Current Benchmar
Slide 30: Rhyolite Ridge Ore Reserve increase
• Rhyolite Ridge total Ore Reserve almost quadrupled to 60 million tonnes (mt) • Approximately half of the Ore Reserve is classified as Proved • Boron grades increased by 26% in the total Ore Reserve, significantly lifting boric acid production • Ore Reserve provides 94% of tonnes in current 26-year