European Lithium Ltd. · ASX:EUR
European Lithium — Investor Presentation (November 2016)
30 slides from European Lithium's investor presentation, Nov 21, 2016
Slide 1: Presentation November 2016
For personal use only Presentation November 2016
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by and is the sole responsibility of European Lithium Limited (the Company). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an induc
Slide 3: Investment Highlights
Investment Highlights For personal use only Central European project Experienced team EU Net importer Robust lithium market ● 100% owned lithium project in ● Directors have considerable ● Apart from small Iberian ● Lithium market has grown from Austria experience in resource project production for l
Slide 4: Development Road Map
Development Road Map* Q2 2017 Increase Resource For personal use only Q2 2017 Finalise PFS Complete H2 2018 Baseline/EIS/ H1 2018 Finalise DFS Permitting H2 2018 Fast track, proposed to commence production of DMS concentrate for EU glass-ceramic industry Q4 2019 / Operations proposed to commence for
Slide 5: Key Data
Key Data For personal use only Capital Structure Team Share Performance* Primary listing ASX: EUR Shares on issue: Board of Directors Also traded on Frankfurt and Berlin (PF8) 361.8 million Tony Sage Market Cap: AUD$25.3 million Non-Executive Chairman Free float1 = 156 million Paul Lloyd Share price
Slide 6: Lithium Battery Plants in Europe
Lithium Battery Plants in Europe Battery production for EV’s a key driver for Lithium demand For personal use only Daimler Tesla (TBA, Europe) (Kamenz, Germany) Operational, proposed Propose expansion ‘Gigafactory 2’ EV assembly at Tilburg, Nissan Netherlands, Operational & (Sunderland, UK) expandin
Slide 7: Wolfsberg Lithium Project
Wolfsberg Lithium Project ● Located 270km SW of Vienna, Austria ● The 5 year term of the original exploration For personal use only ● Good local infrastructure and sources of energy licences was extended by the mining authority nearby to 31 December 2019 and is renewable. The mining licence is held
Slide 8: Project History
Project History For personal use only 1981 1988 1991 Discovered by Minerex, an Austrian Austrian Government decided BBU was closed by the Austrian government company. Following not to develop the project and government and the Project was sold extensive exploration, technical and Minerex was closed.
Slide 9: Geology
Geology ● Substantial exploration and development work by ● A JORC Code (2004) compliant measured and For personal use only previous owners include: indicated resource was declared in 2012. However, because drill core, primary data and ● 17,000m of drilling / 1,400m of decline, drives and QA/QC prot
Slide 10: Resources
Resources ● Substantial upgrade of previously declared For personal use only resource completed: Type Million Tonnes Grade Li20 (%) ● Increase of 75% in JORC (2012) compliant Measured 2.86 1.28 resource tonnes Indicated 3.44 1.08 ● Contained Li2O at 73,799 tonnes is 33% greater than previous inferre
Slide 11: Project Topography
Project Topography For personal use only Lithium Deposit Wolfsberg Area Of Investigation Graphic: A. Pamsl Brandhöhe 1866m 5 1800m ZONE 2 ZONE 1 Adit (1574m asl) Amphibolite Micaschist Pegmatites (proven/estimated) Source: Company, Mine-it representation 10
Slide 12: Project Geology
Project Geology Section through deposit For personal use only Mineworkings – plan view Source: The spodumene depost at “Weinebene” Koralpe, Austria • Source: Company, prepared from Minerex data by Dr. Göd. by Dr.Göd, Mineralium Deposita 24, 270-278 (1989). • 11
Slide 13: Geology of Wolfsberg - plan
Geology of Wolfsberg - plan For personal use only Source: The spodumene depost at “Weinebene” Koralpe, Austria by Dr. Göd, Mineralium Deposita 24, 270-278 (1989). • 12
Slide 14: Metallurgy
Metallurgy ● Metallurgical test work in 1982-7 at North Carolina State University For personal use only ● PFS in 1987 ● Mining licence awarded in 2011 to then owners KMI ● Scoping study by Global Strategic Metals in 2011 ● Two 500 tonne bulk mine samples of each ore type at end 2013 ● Spodumene (lit
Slide 15: Development Strategy
Development Strategy ● The Minerex data has been verified and an For personal use only upgraded resource compliant to JORC Code “opportunities for fast (2012) has been declared track concentrate ● Increase resource by drilling down dip production” ● Establish a resource in Zone 2 ● Establish the mos
Slide 16: Consultants for Work Programme
Consultants for Work Programme ● Geology Adviser - Dr Richard Göd (ex Chief Geologist Minerex) (Austria) For personal use only ● Exploration Management – Technisches Büro für Geologie (Austria) ● Drilling contractor (underground) – Swietelsky (Austria) ● Drilling contractor (surface) – VA Erzberg (A
Slide 17: Estimated Development Timeline
Estimated Development Timeline Work Programme Q3 16 Q4 16 Q1 17 Q2 17 H2 17 H1 18 H2 18 2019 2020 For personal use only Re-listing on ASX PFS DFS Baseline/EIS/Permitting Construction Operations Fast track DMS 16
Slide 18: Material Lithium Projects in Europe
Material Lithium Projects in Europe 1. Keliber • Finland For personal use only • In PFS • No guidance on first production 2. Avalonia Lithium (Intl. Lithium & Jiangxi Ganfeng) • Ireland • Exploration 1 • No resource declared 3. SMP • Portugal • For local glass/ceramics 4. European Lithium 2 • Austri
Slide 19: Recent Industry News
Recent Industry News Tesla plans to choose Europe of ‘Gigafactory 2’ November Tesla announces acquisition of German engineering group, Grohmann Engineering and discusses plans to 2016 locate ‘Gigafactory 2’ in Europe, highly likely in Germany. For personal use only September European Lithium Limited
Slide 20: Appendices
For personal use only Appendices
Slide 21: Board of Directors and Management
Board of Directors and Management For personal use only Steve Kesler Tony Sage Paul Lloyd Malcolm Day CEO Non-executive Chairman Non-executive Director Non-executive Director ● Experienced mining ● Executive Chairman of ● Over 25 years of ● Experienced Surveyor executive with over 38 ASX listed Cape
Slide 22: Project Photographs
Project Photographs For personal use only 21
Slide 23: Main Sources of Lithium
Main Sources of Lithium For personal use only PROCESSING OPEX CAPEX OTHER Hard rock Mining, crushing, concentration, Typical operating Typically lower Less impurity roasting, leaching and crystallisation costs higher capex/t LCE than variation than to lithium carbonate brine projects brines which is
Slide 24: Lithium Applications
Lithium Applications For personal use only CURRENT APPLICATIONS NEW MARKETS CHEMICAL TECHNICAL Electric vehicles Batteries Glass Lubricants Ceramics Fixed energy storage with renewables Air Treatment Aerospace Aluminium smelting Li-Al alloys for aircraft Steel and Iron Pharmaceuticals castings 23
Slide 25: LCE in Batteries
LCE in Batteries For personal use only SMART PHONE LAPTOP TABLET TOYOTA PRIUS TESLA ROADSTER LONDON BUS 2-3g/battery 30-40g/battery 20-30g/battery 3.6kg/battery 40kg/battery 200kg/battery ● Lithium ion has captured nearly 100% of consumer electronics market ● Tesla aims to build its lithium ion batt
Slide 26: World Market - rechargeable lithium batteries
World Market - rechargeable lithium batteries For personal use only World Market for rechargeable lithium batteries by end-use 2002-2017 (MWh) Source: Roskill Lithium Market Outlook to 2017 12th Edition 2013 (“Roskill 2013”) 25
Slide 27: Lithium Price
Lithium Price For personal use only High forecast Base forecast Historic technical grade lithium price (CIF excl. China) Source: Roskill 2013 ● Pricing off-market ● Pricing determined by product and specification for each consumer ● Pricing typically in LCE ● Battery grade lithium is highest purity
Slide 28: Demand
Demand World Historical and Forecast consumption of lithium by end-use For personal use only 2002-2017 (t LCE) Optimistic Source: Roskill 2013 ● Majority of lithium continues to be used for lower value industrial applications (glass, ceramics etc.) ● Recent growth largely from rechargeable battery m
Slide 29: Demand Outlook
Demand Outlook For personal use only Source: Roskill 2013 ● Market has grown from ~60,000 tonnes LCE in 2000 to 150,000 tonnes LCE in 2012 and 200,000 tonnes LCE in 2015 ● Growth base rate 9.7% with high of 15.7% if rapid take up of EV’s ● Entire new markets are still at embryonic phase (e.g. fixed
Slide 30: Lithium Supply
Lithium Supply Production of lithium by country For personal use only 2000-2012 (LCE) Source: Roskill 2013 ● Lithium supply totalled 168,000 LCE in 2012 ● Global supply is dominated by the “big four” that supply ~82% (Talison Lithium, SQM, Albemarle and FMC) ● Talison (now owned by Tianqui and Alber
European Lithium — Investor Presentation (November 2016) on 6ix