Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (April 2020)
21 slides from Ioneer's investor presentation, Apr 30, 2020
Slide 1: Rhyolite Ridge Definitive Feasibility Study Announcement
INVESTOR PRESENTATION Rhyolite Ridge Definitive Feasibility Study Announcement ASX:INR April, 2020 www.ioneer.com 1
Slide 2: Disclaimer 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: James D. Calaway and Bernard Rowe
James D. Calaway Bernard Rowe Non–Executive Chairman Managing Director www.ioneer.com 3
Slide 4: Compelling Project Economics Confirmed by Comprehensive DFS
COMPELLING PROJECT ECONOMICS CONFIRMED BY COMPREHENSIVE DFS ALL-IN SUSTAINED CASH COST AT THE BOTTOM OF THE GLOBAL 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 TO CO
Slide 5: DFS Financial 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$710/tonne. Al
Slide 6: 2019 LCE Cost Curve
10,000 2019 LCE Cost Curve (US$/metric tonne) 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, except for ioneer e
Slide 7: Historical Price Volatility | 5 Years
Historical Price Volatility | 5 Years 31.5% 28.1% 24.9% 20.0% 15.9% 14.6% 14.5% 12.8% 7.6% Met Coal Oil Natural Gas Nickel Lithium¹ Copper Zinc Aluminum Boron ioneer market study conducted as part of DFS. Source: Bloomberg www.ioneer.com 7
Slide 8: Margin per tonne LCE and All-In Sustaining Cash Cost
$23,135 US$/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-Product) LCE reve
Slide 9: Annual Production Estimates
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 10: Rendered Engineering Model
Rendered Engineering Model Sulphuric Evaporation/ Lithium Carbonate Acid Plant Vat Leach Plant Crystallization Circuit Ore Handling/ Sizing and Storage Power Plant Sulphur Lithium Hydroxide Supply Circuit (Year Four) Reagents Plant Utilities Boric Acid Circuit www.ioneer.com 10
Slide 11: Large Mineral Resource, Large Ore Reserve, Long Life of Mine
Large Mineral Large Ore Long Life of Resource1: Reserve1: Mine: 146.5M 60.0M 63.8M Tonnes Tonnes Ore Mined Over 26 Years 1 For Mineral Resources and Ore Reserve referred to in this presentation, see Company announcement titled “Rhyolite Ridge Ore Reserve Increased 280% to 60 million tonnes” dated 30
Slide 12: U.S. Advantage and Low-Risk, Mining Friendly Jurisdiction
U.S. ADVANTAGE AND LOW-RISK, MINING ioneer FRIENDLY JURISDICTION @ @ Tesla Gigafactory Reno NEVADA San Francisco Rhyolite Ridge Project www.ioneer.com ) 2)
Slide 13: Capex Growth: PFS to DFS Estimate
GROWTH DFS Final 800 Growth Estimate Spent Freight, Ore etc. 775 VAT & Storage $12 Tank Facility $17 EVP/CRZ Lining 750 Pkg $10 DFS Increase $18 725 NEW SCOPE Estimate Millions US$ Sales Tax & + New Commissioning Scope $33 Mine 700 Equipment & Sulphur Trailers $28 $785 675 Impurity Removal 1 Power $
Slide 14: Operating Cost and Recovery Improvements
Operating Cost Per Lithium Carbonate Total Annual Tonne Decreased: Recovery Increased Improvement: US$8 From: US$30M Annual Savings 82%-85% To the Bottom Line Approximately: Savings Approximately: US$20M US$10M 1 See Company announcement titled “Outstanding Results from Rhyolite Ridge Pre-Feasibilit
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) begin items financing
Slide 16: Surrounded by World Class Partners
SURROUNDED BY WORLD CLASS ioneer PARTNERS ( >) SNC+LAVALIN Acid Plant and antal Technologies; Acid Plant & EMERSON. \ (@ Automation Solutions Controls KEMETCO RESEARCH INC “a NewFields Spent Ore Pilot Plant KCA Leaching 3EM STRATEGIES Environmental, www.ioneer.com ) 16)
Slide 17: 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 18: Lithium Total Demand and Total Supply
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 Rhyolite Ridge Begins Production 1,000,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total Demand Total Supply Source: Benchmark Mineral Intelligence 2020 www.i
Slide 19: Ample funding in place through at least 2021
Ample funding in place through at least 2021, ensuring Project timeline DFS completion allows informed acceleration of strategic funding process Strong financial position and completion of DFS enables ioneer to manage through the global COVID-19 environment ioneer remains committed to achieving fair
Slide 20: Question & Answer
ioneer QUESTION & ANSWER
Slide 21: Contact details
Bernard Rowe Jane Munday / Grace Altman ioneer Ltd Megan Moore 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: E: E: browe@ioneer.com jane.munday@fti