Qem Limited · ASX:QEM
Qem — Investor Presentation (October 2018)
28 slides from Qem's investor presentation, Oct 25, 2018
Slide 1: Vanadium – the future of energy storage
For personal use only QEM Limited Vanadium – the future of energy storage INVESTOR PRESENTATION
Slide 2: Disclaimer
For personal use only Disclaimer 2
Slide 3: Investment Highlights
Investment Highlights For personal use only World Class Resource Simple and Clean Structure Management that Delivers Global Vanadium Deficit Growth Focused 3
Slide 4: Capital Structure
Capital Structure For personal use only IPO Completed and ASX Symbol: QEM Listed on the ASX Shares on Issue 100 million Market Cap (as at 23 October $17M 2018) Liquid Cash (as at 23 October 2018) $4.45M Major Shareholders Alignment Directors 24.5% Greenwich Global Pty Ltd 19.70% SkipTrak Pty Ltd 4.4
Slide 5: Board of Directors
Board of Directors For personal use only John Foley Daniel Harris David Fitch 5
Slide 6: Uses and Applications of Vanadium
ENERGY For personal use only STORAGE STEEL MANUFACTURING Uses Of Vanadium Vanadium - the future of energy storage Applications Of Vanadium AEROSPACE AUTOMOTIVE 6
Slide 7: Vanadium Outlook
Vanadium Outlook For personal use only Source: asianmetal.com 7
Slide 8: Julia Creek Project Overview
Julia Creek Project Overview For personal use only 8
Slide 9: Julia Creek Project
Julia Creek Project The Julia Creek Project provides opportunity for a world-class vanadium & oil shale mine For personal use only Key Facts Method Resource • Julia Creek Project comprises 3 • Given the resources are located very • 2018 Upgrade of total JORC exploration permits EPM25662, close to th
Slide 10: Key Figures
Key Figures For personal use only Over Up to Up to 1.7b 0.74% 3x Tonnes @ 0.34% V2O5 V2O5 In High Grade Intercepts Beneficiation Upgrade 10
Slide 11: Project Milestones
Project Milestones QEM is well progressed, Completed Stage 1 exploration For personal use only Year Description 2014 • Initial techno-economic report completed 2015 • Initial exploration complete with large JORC(2012) inferred resource target identified. • Positive metallurgy showing viability of pr
Slide 12: 2016 Scoping Study Highlights
Julia Creek Project 2016 Scoping Study Highlights For personal use only Globally significant project with large, high-grade JORC resource of >1,326 Mt (at time of study) Simple open pit design 16% site coverage Excellent infrastructure within project area - road, rail, water, gas, telecommunic
Slide 13: Julia Creek Project: High-grade resource in favorable jurisdiction
Julia Creek Project High-grade resource in favorable mining jurisdiction For personal use only Drilling shows ore depth from 37m to 104m Includes 39 core holes used to construct robust 3D resource model Deposit is shallow with favorable strip ratios as low as 2:1 and is suitable for open pit o
Slide 14: Planned Objectives for 2018-2019
Planned Objectives for 2018-2019 For personal use only 2018: IPO completed raised $5m. 2019: Stage 2 exploration and pre-feasibility studies. Stage 2 Explorations Pre-Feasibility Studies Expenditure • Landowner engagement & • Advance metallurgical & compensation mineralogical test work. • Environmen
Slide 15: Contact
For personal use only David Fitch Contact Executive Director david@qldem.com.au 0400 631 608 www.qldem.com.au 15
Slide 16: Appendix – Additional Information
For personal use only Appendix Additional Information
Slide 17: Appendix A – Resource Details
For personal use only Appendix A Resource Details 17
Slide 18: Julia Creek Summary of Mineral Resources as at May 2018
For personal use only Julia Creek Summary of Mineral Resources as at 31 May 2018 Mineral Resource Resource Class Strat Unit Mass (Mt) Average Thickness Total Insitu Density V2O5 (wt%) Cu (ppm) Mo (ppm) Ni (ppm) Zn (ppm) Overview (m) (gm/cc) CQL 811 3.39 2.12 0.38 242 247 226 1329 Inferred OSU 454 1.
Slide 19: Oil Yield
For personal use only Oil Yield The image shows cross section (with vertical exaggeration) of QEM’s oil deposit. Source: Measured Group 19
Slide 20: Appendix B – Vanadium Overview
For personal use only Appendix B Vanadium Overview 20
Slide 21: Vanadium Redox Batteries
For personal use only Vanadium Redox Batteries Strong worldwide focus on renewable energy storage is set to be a very strong driver of growth for vanadium. Vanadium outperforms its nearest competitor Key Drivers lithium. Renewable energy storage is set to be strongest key growth driver. • Government
Slide 22: Vanadium – Aerospace Industry
Vanadium – Aerospace Industry For personal use only Air transport is becoming more accessible to the global population. This is creating demand pressure for more aircraft and correspondingly, vanadium. • Increased aircraft are required to service larger Increasing aircraft deliveries will increase a
Slide 23: Vanadium – Automotive Industry
Vanadium – Automotive Industry For personal use only The rise of vanadium in the automotive industry is driven through i) changing preferences and ii) ‘light alloy’ benefits. Changing preferences ‘Light Alloy’ benefits • Changing consumer demands are driving the rise in • Due to vanadium’s character
Slide 24: Market Overview
Market Overview For personal use only Supply squeeze: global vanadium consumption exceeded supply by ~9,700t in 2017 Price increased DEMAND SUPPLY 320% since Jan 2017 The ~34% annual growth in the energy storage Regulatory change in China is putting further sector is expected to be a key vanadium pr
Slide 25: Market Supply-Demand trends
Market Supply-Demand trends For personal use only Despite supply increases, a market squeeze has arisen. Supply increases Failed to meet demand Supply has increased at ~10.3% CAGR Demand exceeded supply by ~9,700t from 2012-2017 Reference Roskill 2017 25
Slide 26: Strong Vanadium price growth
Strong Vanadium price growth For personal use only Vanadium was among the best performing commodities of 2016, 2017 & 2018. During March quarter 2017, the V₂O₅ price increased to a range of USD$5.40/lb and USD$5.80/lb at 31 March. By August 2017, the price increased to a range of USD $9.00/lb and US
Slide 27: Appendix C – Market Analysis
For personal use only Appendix C Market Analysis 27
Slide 28: Market Analysis - Comparables
Market Analysis - Comparables For personal use only Vanadium has outperformed other comparable resources, with momentum expected to continue. Vanadium Supply & Demand Outperformed Rivals • Increasing demand factors & lack of current supply • Vanadium price & demand has outperformed other substantiat