Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Investor Presentation (January 2021)
33 slides from Lake Resources N.l's investor presentation, Jan 19, 2021
Slide 1: Clean High Purity Lithium
CLEAN HIGH PURITY LITHIUM For personal use only Uniquely Meets Demand with Clean Technology Steve Promnitz - Managing Director 19 January 2020 Update ASX:LKE FRA:LK1 OTC:LLKKF
Slide 2: Disclaimer
Disclaimer For personal use only General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings Certain statements contained in this presentation, including information as to the future fina
Slide 3: Clean Technology – No Mining – High Purity
Clean Technology – No Mining – High Purity For personal use only • Clean Technology – Direct Extraction by Partner, Lilac Solutions – Efficient lithium separation from brine; backed by Bill Gates-led Breakthrough Energy fund • High Purity Lithium - 99.97% purity battery quality lithium carbonate: Ka
Slide 4: Solution to EV & Cathode/Battery Maker Demand
Solution to EV & Cathode/Battery Maker Demand For personal use only Key Demand – Consistently high purity & more sustainable • #1 High Purity Battery Materials - to avoid performance issues – Low impurities are being sought in battery materials to ensure reliable battery performance • #2 Responsibly
Slide 5: Demand Growth for Sustainable Lithium Supply
Demand Growth for Sustainable Lithium Supply 18 times more Lithium Production by 2030; Underinvestment in new supply; Price moving up For personal use only Lithium Carbonate Price Increasing Need 18x more Lithium Production by 2030 Recent spot China price increase US$8,500-10,000/t 1st time lithium
Slide 6: Direct extraction - Clean, Efficient
Direct extraction - Clean, Efficient For personal use only Re-engineered well-known technology in water treatment • Efficient – just lithium removed from brine • Faster – days not months or years • Higher recoveries than evaporation • High purity – because only lithium removed • Cost competitive wit
Slide 7: Direct extraction. Replaces Evaporation Ponds with Ion Exchange Modules
Direct extraction. Replaces Evaporation Ponds with Ion Exchange Modules Ion Exchange Process For personal use only Simple Process – Repeated every 2.5 hours Lilac Solutions Simple Flowsheet to produce lithium carbonate To produce Concentrate vs 12-24 mths 30-60,000 PPM TANK BRINE RETURNED WITHOUT CH
Slide 8: De-Risked Processing; Simple Production Scale-up
De-Risked Processing; Simple Production Scale-up For personal use only Direct Extraction Lithium – Direct Extraction Lithium – Lilac Pilot Plant Module Lilac Production Scale Pilot to Production Pilot 1-2 modules ASX:LKE OTC:LLKKF Production Scale SLIDE / 8 50+ modules Modules here are not an exampl
Slide 9: Direct extraction - Small Environmental Footprint - 90% less
Direct extraction - Small Environmental Footprint - 90% less For personal use only Lilac Direct Extraction Footprint vs Brine Evaporation Ponds (Atacama) and Hard Rock Mining (Greenbushes) Evaporation - Atacama Hard Rock - Greenbushes 15 km 5 km Direct Extraction - Kachi Direct Extraction: Returns A
Slide 10: High Purity
High Purity For personal use only 99.97% Purity Lithium Carbonate Produced from Kachi project brines After processing in Lilac direct extraction pilot module • Battery Grade considered to be 99.5% • Kachi samples have very low impurities (60x less than 99.5% battery grade) • Simple flowsheet; cost –
Slide 11: Low Impurities - Premium Pricing - Cost Competitive
Low Impurities - Premium Pricing - Cost Competitive For personal use only Direct Extraction Kachi Project Positioned at lower end of cost curve Lithium Carbonate Pricing Range Brine – Lower Cost Hard Rock – Higher Cost ASX:LKE OTC:LLKKF SLIDE / 11 Source: LKE announcements 20/10/2020, 14/01/2020
Slide 12: Prime Location – Large Producers
Prime Location – For personal use only Large Producers. ATACAMA Tianqui/SQM Albemarle Lithium Triangle: 40% of world’s lithium production at the lowest cost. Lake’s Advancing Projects 5 largest producers all have operations CAUCHARI Orocobre ALB, SQM, LTHM + Tianqui, Ganfeng JV Ourhas Lake projects
Slide 13: Major brine resource - Top10
For personal use only Major brine resource - Top10 4.4 Mt LCE Total Resource (1Mt LCE Indicated Resource; 3.4 Mt Inferred) 25 yrs production uses 20% resource 74,000 hectares of leases (185,000 acres; size of NYC) 12x PFS 2020 DFS/ESIA 2021 Production 25,500tpa 2024
Slide 14: Kachi - Advantages: Large, Clean, Expandable
Kachi - Advantages: Large, Clean, Expandable For personal use only • Large: 4.4 million tonne LCE. • Expandable: Open laterally; Open at depth • Clean: Brine low in impurities • Long Life, High Value: 25 year production 25,500 tpa LCE; US$1050 million project value • Cost Competitive: Operating cost
Slide 15: Kachi - High Margin Pre-Feasibility Results
Kachi - High Margin Pre-Feasibility Results For personal use only • Long Life, High Value Project - 25 year production 25,500 tpa LCE**; US$1050 million project value* (NPV @ 8% discount rate, Pre-tax) • High Margin Lithium Production – • 55% Operating Margin; US$465 million EBITDA in 1st 3 years* •
Slide 16: DFS Commenced - Direct extraction
DFS Commenced - Direct extraction For personal use only Production Plant Design with Lilac Solutions Direct Extraction Technology Definitive Feasibility Study Commenced – Using Solar Hybrid power F E A D C G B Area Description A Direct extraction (Lilac IX plant) ASX:LKE B C Eluate concentration Imp
Slide 17: Lake's Clean Lithium into Batteries
Lake’s Clean Lithium into Batteries Novonix - Process underway For personal use only Novonix - battery technology leader (ASX:NVX; OTCQX:NVNXF) Tier 1 firms - Panasonic, CATL, Samsung, SK, LG Chem, Bosch, Honda, Dyson Work with Dr Jeff Dahn at Dalhousie Uni - a ground breaking "name" in the battery
Slide 18: Production Timeline
Production Timeline. For personal use only Exploration / PFS / Pilot Plant DFS / Construction / Lab Testing High Purity Lithium Demonstration Plant Production 2016 Area pegged 2019/20 PFS – High 2021 DFS / ESIA 2022 Finalise Financing 2018 Major Resource Margin Project 2021 Demo Plant Onsite 2022 Ap
Slide 19: Share price and market data
LAKE RESOURCES (ASX:LKE , OTC:LLKKF) LAKE RESOURCES (ASX:LKE) For personal use only 1 YEAR Share price chart Total Current Shares on Issue 835,428,624 Listed Options (10c) Jun 2021 Expiry 52,512,693 Unlisted Options (8c) Feb 2022 Expiry 5,555,000 Unlisted Options (9c) Jul 2021 Expiry 15,000,000 Mark
Slide 20: Lake $75m vs Peers
For personal use only Lithium Producers Recently Uplifted Developers rising Lake Resources LKE LAC Lake $75m vs Peers vs Standard (SLL) Direct Extraction USA SLL vs Lithium Americas (LAC) Pre-Production Argentina $200-450m market cap NLC vs Neo Lithium (NLC) Development Argentina Trading at 7%NPV vs
Slide 21: Clean High Purity Lithium - Unique Proposition
Clean High Purity Lithium - Unique Proposition. For personal use only • New Clean Technology for High Purity Lithium – Growing need • Responsibly Sourced & Sustainable - Lake uniquely positioned to satisfy demand for high quality battery material more responsibly sourced without mining. Enables a cl
Slide 22: Appendix
Appendix For personal use only Clean High Purity Lithium www.lakeresources.com.au ASX:LKE OTC:LLKKF SLIDE / 22 ASX: LKE SLIDE / 22
Slide 23: Kachi Project – Size Matters
For personal use only Kachi Project – Size Matters.
Slide 24: PFS - Kachi Compelling Economics; High EBITDA Margin
PFS - Kachi Compelling Economics; High EBITDA Margin For personal use only Cost Competitive; High Value Product Key Financial Parameters Values NPV8 (NPV @ 8% discount rate) Pre-tax US$1,052 million (A$1,660 million)* NPV8 (NPV @ 8% discount rate) Post-tax US$748 million (A$1,180 million)* IRR pre-t
Slide 25: Direct extraction. Ion Exchange Process - Lilac Solutions
Direct extraction. Ion Exchange Process - Lilac Solutions For personal use only ASX:LKE OTC:LLKKF SLIDE / 25
Slide 26: High Purity Lithium – From Pilot to Production
High Purity Lithium – From Pilot to Production For personal use only Pilot Stage Lilac Pilot Plant Module Lithium Carbonate - Hazen Cathode/ Battery - Novonix Pilot Stage Direct Extraction Lithium Chloride Underway in 2020 Continues 2021 Demonstration On Site H2 2021 Plant Stage ASX:LKE Production O
Slide 27: Sustainable Lithium - In demand
Sustainable Lithium - In demand For personal use only Electric Vehicle Makers want more sustainable battery materials in EV’s • Electric Vehicle Makers, EU Seek More Sustainable Lithium – Volkswagen, Daimler, BMW, EU want more responsible sourcing of battery materials; ESG (environmental, social, go
Slide 28: Direct extraction - Small Environmental Footprint
Direct extraction - Small Environmental Footprint For personal use only Brine Evaporation smaller CO2 footprint than hard rock; Lilac Direct Extraction reduces water impact ASX:LKE OTC:LLKKF Source: SQM SLIDE / 28
Slide 29: Sustainable Lithium
Sustainable Lithium. For personal use only ESG Targets for the Future – EU, UN EU UN ASX:LKE OTC:LLKKF SLIDE / 29
Slide 30: Cauchari Project
For personal use only Lake results show: Cauchari Project. • Similar brines & similar high grades Lake project adjoins • Alongside Ganfeng/ Lithium Americas Orocobre and Ganfeng/ 40,000tpa LCE in construction Lithium Americas Ganfeng/LAC Resource – 23Mt LCE @ 581mg/L lithium Lake – 506m Brine zone O
Slide 31: Lake has extensive development experience. Leadership.
Lake has extensive development experience. Leadership. Full team in country for 5 years. For personal use only Steve Promnitz Stu Crow Nick Lindsay Robert Trzebski MANAGING DIRECTOR CHAIRMAN NON-EXEC TECHNICAL DIRECTOR NON-EXEC DIRECTOR LEADING DFS STUDY Extensive project management More than 25 yea
Slide 32: Appendix – Mineral Resource – JORC Code 2012
Appendix – Mineral Resource – JORC Code 2012 For personal use only Kachi Lithium brine Project. KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resource Area, km2 17.1 158.3 175.4 Aquifer volume, km3 6 41 47 Brine volume, km3 0.65 3.2 3.8 Mean dr
Slide 33: Appendix – Table Report – JORC Code 2012
Appendix – Table 1 Report – JORC Code 2012. For personal use only ASX:LKE OTC:LLKKF SLIDE / 33 ASX: LKE SLIDE / 33
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