Nh3 Clean Energy Limited · ASX:NH3
Nh3 Clean Energy — Investor Presentation (October 2019)
44 slides from Nh3 Clean Energy's investor presentation, Oct 11, 2019
Slide 1: Rare Earth Elements Business; Video & Presentation
ASX Announcement 11 October 2019 Rare Earth Elements Business; Video & Presentation Hexagon Resources Limited (ASX:HXG) would like to advise that Managing Director, Mike Rosenstreich features in a video interview discussing American Innovation Metals Inc. (AIM). AIM will be the vehicle for the incor
Slide 2: Next-Generation Energy Materials Start Here.
CONFIDENTIAL Hexagon Resources Limited US Downstream Rare-Earth Elements Investment Opportunity October 2019 Next-Generation Energy Materials Start Here.
Slide 3: Important Notices
Important Notices CONFIDENTIAL AND PROPRIETARY INFORMATION This presentation, including any supporting materials, is owned by Hexagon Resources Limited (or the “Company”) and/or its affiliates and is for sole use of the intended Hexagon Resources Limited audience or other intended recipients. This p
Slide 4: Rare-Earth Elements
Rare-Earth Elements • Rare-earth elements (REEs) comprise a relatively abundant group of 17 elements, including the 15 lanthanide elements on the periodic table, plus two other related elements, scandium and yttrium • The unique magnetic, electric, optical, and chemical properties of REEs have made
Slide 5: Rare-Earth Elements
Rare-Earth Elements REE separation to produce REOs – the key technical challenge • China dominates downstream REE separation, producing ~85% of global REO output • Solvent extraction (SX) is the dominant, industry-standard commercial processing method for REE separation • Highly capital-intensive du
Slide 6: REEs in an xEV
REEs in an xEV Glass and Mirrors Polishing Powder • Cerium The diverse uses of REEs in EVs illustrate how these important elements have permeated Fuel Additives diverse contemporary technologies • Cerium • Lanthanum UV Cut Glass • Cerium LCD Screen Headlight Glass • Europium • Neodymium • Yttrium •
Slide 7: REE Permanent Magnets
REE Permanent Magnets REE permanent magnets are essential non- substitutable components in many electric motor, generator and sensor applications, for defence, aerospace, medical, and numerous industrial and high-tech applications The most efficient motors require REE permanent magnets to convert el
Slide 8: Critical Applications for REEs
Critical Applications for REEs America’s manufacturing and defence industrial base requires a growing number of widely used specialised materials, including REEs and REE permanent magnets Defence & Renewable Electronics Fluid-Cracking Electric Aerospace Energy Catalysts Transportation 7
Slide 9: REEs in Green Energy
REEs in Green Energy REE Magnets Batteries Phosphors US DoD Lanthanum • • • Cerium • • • Praseodymium • • • Neodymium • • • Samarium • • Europium • • Terbium • • • Dysprosium • • Gadolinium • • Yttrium • • 8
Slide 10: The Problem
The Problem Praseodymium (Pr) metal 9
Slide 11: There is oil in the Middle East. There are rare earths in China.
“There is oil in the Middle East. There are rare earths in China. We must take full advantage of this resource.” Deng Xiaoping (1992) Paramount Leader of the People’s Republic of China
Slide 12: China's Dominance
China’s Dominance China controls 85% of global REE production without enforcing adequate environmental safeguards A rare-earth processing plant pollutes the air and produces hazardous waste in Baotou, Inner Mongolia, China Illegal and undocumented REE mining and production in China is a serious, ong
Slide 13: China's Dominance
China’s Dominance China’s domination of the REE market illustrates the dangerous interaction between Chinese economic aggression guided by its strategic industrial policies — and vulnerabilities and gaps in America’s manufacturing and defence industrial base China has strategically controlled the gl
Slide 14: Don't underestimate the Chinese capacity to counter-attack
“Don’t underestimate the Chinese capacity to counter-attack. Don’t say we didn’t warn you” The Chinese Communist Party (May 19, 2019) Published in the People’s Daily, the official newspaper of the Chinese Communist Party The above quote was in response to China’s use of REEs as bargaining leverage i
Slide 15: Military equipment firms in the United States will likely have their supply restricted
“Military equipment firms in the United States will likely have their supply of rare earths restricted” The Chinese Communist Party (June 17, 2019) Published in the Global Times, an official newspaper of the Chinese Communist Party A U.S. Air Force B-2 Spirit Stealth Bomber in flight. The B-2 Spirit
Slide 16: 100% US Reliance
100% US Reliance A matter of US Economic, Industrial and National Security: the US must reduce its REE downstream reliance on China The US was once largely self- sufficient in REEs, but over the past quarter century, China has emerged as the dominant global leader in REE production REEs are a focal
Slide 17: Bloomberg: the Battle for Rare Earths
Bloomberg Markets the Battle for Rare Earths Bloomberg News June 10, 2019, 717 PM EDT Updated on June 11, 2019, 250 AM EDT > Six state companies at heart of key government-run industry > Crucial sector shaping as the new battleground in trade war a The governmenthas ~ prepared steps to use its stran
Slide 18: The Solution
The Solution Samarium (Sm) metal 17
Slide 19: RapidSX Rare-Earth Separation
RapidSX™ Rare-Earth Separation RapidSX ™ Innovation Metals Corp (IMC) § Private Canadian company, founded to develop cost-effective separation processes for critical minerals (REEs, Lithium, Cobalt, Nickel) § World-renowned technical research and development expertise; partners and clients include p
Slide 20: RapidSX Rare-Earth Separation
RapidSX™ Rare-Earth Separation RapidSX ™ 19
Slide 21: The RapidSX technology is now ready for commercialisation
The RapidSX™ technology is now ready for commercialisation The RapidSX™ REE separation Pilot Plant in Mississauga, Ontario, Canada Photo: G&W, 2019 20
Slide 22: American Innovation Metals (AIM)
American Innovation Metals (AIM) IMC and Hexagon’s wholly owned US-based subsidiary, Energy Materials of America, LLC plan to form a joint venture — American Innovation Metals Inc. (AIM) — to commercialise the RapidSX™ Hexagon Resources Limited (ASX:HXG) downstream REE separation technology 49% 49%
Slide 23: American Innovation Metals (AIM)
American Innovation Metals (AIM) AIM is a de-risked downstream REE separation business, with RapidSX™ technology ready for commercialisation Hexagon has a binding Investment Agreement to acquire 49% of the RapidSX™ technology for REE separation through AIM § Investment is US$2M to build out a Commer
Slide 24: AIM's value is in the demonstrated ability of the RapidSX technology
AIM’s value is in the demonstrated ability of the RapidSX™ technology to separate REE concentrates into high-purity REOs REOs (clockwise from top center) praseodymium, cerium, lanthanum, neodymium, samarium, and gadolinium Photo: United States Geological Survey (USGS) 23
Slide 25: REO Global Market Value
REO Global Market Value In 2018, the total global REO 2018 Global REO Market Share by Value market was worth ~US$3.4 billion • Requiring REOs, REE permanent 49% magnets are the most significant and lucrative demand driver for the REE downstream, constituting ~60 to 70% of the value of the global REO
Slide 26: REE Supply Chain
REE Supply Chain Upstream Downstream Downstream Downstream Node 1 Node 2 Node 3 REE REE Separation REE REE-Containing Concentrate Production RapidSX ™ Metal & Alloy Making Final Products REE Mining & Primary REEs are separated to REOs refined into REE-containing Concentration produce individual REE
Slide 27: REE Supply Chain Outputs
REE Supply Chain Outputs ↑ UPSTREAM • REE Ores REE Mining/ • REE Mineral Concentrates Concentration • Mixed REE Chemical Concentrates ↓ DOWNSTREAM REE • Separated REE Oxides (REOs) Separation • Separated REE Chem Compounds RapidSX ™ ↓ DOWNSTREAM REE Metal & • REE Metals Alloy Making • REE Alloys ↓ D
Slide 28: Constraint is in the Downstream
Constraint is in the Downstream UPSTREAM There is no shortage of REE upstream concentrate REE Mining/ production/feedstock suppliers outside of China Concentration (USA, Australia, South America) REE separation is the supply-chain DOWNSTREAM REE constraint. Commercialising the Separation RapidSX™ te
Slide 29: Under-served Downstream Consumers
Under-served Downstream Consumers A selection of REE Metal & Alloy and REE Magnet Makers — outside of China Hitachi Metals America, Ltd. 28
Slide 30: RapidSX vs Conventional SX
RapidSX™ vs Conventional SX Conventional RapidSX ™ Solvent Extraction Performance & Efficiency Commercial Purity Yes Yes REE Recovery Rates High High The RapidSX™ technology dramatically reduces the number of REE separation Processing Time Rapid Slow stages in the SX chemical circuits by up Time to
Slide 31: RapidSX vs Conventional SX
RapidSX™ vs Conventional SX Why the RapidSX™ technology is superior to conventional SX Increased Separation Kinetics Reduced time to achieve desired transfer of metal(s) of interest, from one liquid phase to the other Low CAPEX Due to considerably reduced size, number of separation stages and result
Slide 32: American Innovation Metals (AIM)
American Innovation Metals (AIM) RapidSX™ commercialisation steps: • Construct a RapidSX™ REE separation Commercial Demonstration Plant (CDP) for US$1.5M (~6 months build time and ~3 months commissioning; ~9 months total) • Planned production capacity of 6,000–8,500 kg/mo REO (70–90 tpa) • Procure m
Slide 33: RapidSX CDP Timeline
RapidSX™ CDP Timeline RapidSX™ IP Protection Feedstock Agreements CDP Detailed Engineering CDP Construction CDP Commissioning CDP Operation RapidSX ™ Q4 2019 — Q1 2020 — Q2 2020 — Q3 2020 — Q4 2020 — Q1 2021 32
Slide 34: US Defense Production Act, Title III
US Defense Production Act, Title III The US Defense Production Act (DPA Title III) is the President’s primary authority to ensure the timely availability of private-sector resources for national defence DPA Title III provides unique economic authorities to mitigate industrial- base shortfalls and ex
Slide 35: US Defense Production Act, Title III
US Defense Production Act, Title III The five Presidential Determinations proclaimed domestic REE processing capabilities are essential to national defence and addressed: • HREE Separation * • LREE Separation * • REE Metals & Alloys • NdFeB Magnets • SmCo Magnets * The RapidSX™ technology is a prove
Slide 36: US Defense Production Act, Title III
US Defense Production Act, Title III DPA Title III actions stimulate private investment in production resources by reducing the risks associated with the capital expenditures required to establish the needed US production capacity. The program executes projects ranging from process improvement to pr
Slide 37: US Defense Production Act, Title III
US Defense Production Act, Title III In June 2019, the Defense Production Act Title III Office published a Request for Information (RFI) for “Light and/or Heavy Rare Earth Element Separation and Processing Production Capability” “Specifically, the DPA Title III Program Office is interested in input
Slide 38: US Defense Production Act, Title III
US Defense Production Act, Title III IMC submitted a response to the RFI from the Defense Production Act Title III Office. In addition to answering the specific questions requested in the RFI, IMC proposed the commercialisation of the RapidSX™ technology The DPA Title III program authorises the Fede
Slide 39: US Senate & Congressional Support
US Senate & Congressional Support Rare Earth Cooperative 21st Century Manufacturing Act Bill introduced by Sen. Marco Rubio (R-FL) and Rep. Scott Tipton (R-CO) 38
Slide 40: Hexagon Overview
Hexagon Overview ASX Code HXG Shares on Issue 291.8M Options on Issue 24.2M Share Price (10 Oct 2019) A$0.06 Market Capitalisation A$18M Debt nil Cash (30 June 19) A$4.2M 2 emerging Strong Share Register multi-faceted ENERGY MATERIALS • 25% Institutional holders (with Tribeca downstream OF AMERICA N
Slide 41: Energy Materials of America
Energy Materials of America Hexagon’s US business vehicle Energy Materials of America, LLC (EMA) is the holding entity for Hexagon’s two US-based energy- materials businesses: • Strong management and technical teams — comprising US-based, UK and Australian executives with significant graphite, REE a
Slide 42: Energy Materials of America
Energy Materials of America Made-in-USA Premium Energy Materials ENERGY MATERIALS OF AMERICA AMERICAN INNOVATION METALS Rare-Earth Elements (REEs) Graphite Battery/Energy Separation & Purification Materials & Industrial DOWNSTREAM RARE-EARTH ELEMENTS DOWNSTREAM GRAPHITE • Proven RapidSX™ REE separat
Slide 43: Contact
Contact Hexagon Resources Limited Mike Rosenstreich Managing Director info@hexagonresources.com +61 (08) 6244 0349 www.hexagonresources.com
Slide 44: Next-Generation Energy Materials Start Here.
Next-Generation Energy Materials Start Here.Neodymium (Nd) metal
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