Pure Energy Minerals Ltd. · TSXV:PE
Pure Energy Minerals — Investor Presentation (July 2015)
42 slides from Pure Energy Minerals's investor presentation, July 2015
Slide 1: Corporate Presentation
Corporate Presentation July 2015 Positioned to be a strategic lithium supplier to the US and global clean tech sector Clayton Valley, NV www.pureenergyminerals.com TSX-V: PE XETRA: A111EG OTCQB:HMGLF 1
Slide 2: Cautionary Statement
Cautionary Statement Certain statements contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include,
Slide 3: Overview
Overview Growth Market for Clean Technology Demand is forecasted to outstrip supply by 2020 driven by battery manufacturing Clayton Valley Project - Strategic Location for a Rare Resource 8000 acre claim interest with NI43-101 compliant inferred resource estimate of 816,000 metric tons lithium c
Slide 4: Market Snapshot – Demand Outlook
Lithium Market Snapshot – Demand Outlook Supply-Demand Scenarios (Credit Suisse, 2014) 2015 2020 Lithium has experienced significant market growth: Strategic element related to energy • CAGR in lithium demand estimated at 12% to 2020 security, the green economy and global • Demand outstrips supply b
Slide 5: Market Snapshot – Pricing
Lithium Market Snapshot – Pricing Pricing for lithium products are negotiated directly with the buyers and published by the producers Pricing has tripled since 2003 • Pricing continues to increase in step with demand • Recent price hikes announced by the major producers for 2015 (approx. +10%) 5
Slide 6: Market Snapshot – Producers
Lithium Market Snapshot – Producers Commercial lithium production comes from Majority of production is from countries with two sources: brine (primarily) and rock geopolitical risk Four companies produce >80% of global lithium China -14% Lithium Hub – 4% Brines and Pegmatite (est. ) Clayton Eastern
Slide 7: Market Snapshot – Usage
Lithium Market Snapshot – Usage Estimated Lithium Demand 2013 Others Medicine 8% 3% Polymers 3% Air Conditioning Batteries 36% Lithium Carbonate Content 4% Lithium Carbonate Application Metallurgy Content (grams) 7% Greases Ceramics Mobile Phone 1.7 13% and Glass 26% Smart Phone 2.1 Tablet 19 Growth
Slide 8: Market Snapshot - Demand
Lithium Market Snapshot - Demand By 2020, Global lithium ion battery manufacturing capacity is expected to grow by factor of 10 (Navigant Research, 2013). Tesla/Panasonic Gigafactory - US$5B investment in Nevada plant capable to produce 50 GWh/y of batteries by 2020 (located 3.5 hours drive from C
Slide 9: Market Snapshot – Demand Outlook
Lithium Market Snapshot – Demand Outlook “Demand to be robust: Driven by power storage demand (everything from power tools and handheld devices to electric vehicles), the global lithium industry should, we believe, enjoy a CAGR of roughly 12% through the end of the decade (starting in the mid/high s
Slide 10: Brine Advantage
Lithium Brine Advantage Lithium brine outpaces hard rock and clay sources on cost, sustainability and permitting with recent technological advancements in processing. Lithium carbonate sells for approximately $6000 per ton 10
Slide 11: Developers - Peer Group
Lithium Developers - Peer Group MCap Country Project(s) Stage Deposit Type Company US$M Hard Rock Altura Mining Limited Australia Pilgangoora Reserves Development Hard Rock 12.9 Avalon Rare Metals Inc. Canada Separation Rapids Pre-Feasibility Hard Rock 26.7 Critical Elements Corporation Canada Rose
Slide 12: Developer Comparable – Value Case Study
Lithium Developer Comparable – Value Case Study Western Lithium (WLC) Share Pricing in CAD 2.50 14,000 Scoping study results released Commencement 12,000 2.00 of pre-feasibility study Drill program commenced 10,000 Resource update 1.50 Thousands Drilling supports 8,000 historic resource Results of p
Slide 13: Project Overview
Project Overview Location • 8,000 acre placer mineral claim block located in Clayton Valley, Nevada adjacent to the Silver Peak Lithium Mine operated by Albemarle (world’s largest producer) Tesla Gigafactory Resource • NI43-101 compliant inferred resource estimate of 816,000 metric tons (July, 2015)
Slide 14: Project Overview
Project Overview Silver Peak Lithium Mine (Albemarle) Silver Peak Mine Pure Energy Claim Interests • Regional lithium production commenced in 1967 at the Silver Peak Mine • Silver Peak Mine is the only active lithium mine in North America, purchased in 2015 by Albemarle 14
Slide 15: Project Overview - Geology
Project Overview - Geology • Clayton Valley surrounded by highly Li-enriched Tertiary rhyolitic tuffs and Li-bearing sediments; combined with active geothermal systems • Li has been mobilised from these sources and deposited into a closed elongated basin that extends for approximately 26 km • Basin
Slide 16: Project Overview - Geology
Project Overview - Geology • The basin is bounded to the east by a steep normal fault system toward which basin strata thicken • The valley acts like a large, tilted bathtub, and is infilled with a mixture of loose sediments (clay to gravel size), tuff and some evaporites (salt 4000’ (approx.) beds)
Slide 17: Project Overview - Resource
Project Overview - Resource Shallow basin infill CV-1 Pure Energy’s 8,000 acre claim area encompasses Rodinia SPD-9 the deepest parts of the basin (up to 1,500 m thick). Rodinia SPD-8 Lithium values in brine range from 24ppm to CV-2 400ppm. Pumping test completed in April 2015 at 150 gpm Deep basin
Slide 18: Resource
Resource • Basin beneath the Pure Energy claim area is deeper than that in the Albemarle area • Total volume of the basin in Pure’s claim area is approximately 2-3 times the volume of that beneath the Albemarle production zone – greater areal extent and deeper • Current abstraction is shallow – e.g.
Slide 19: Recent Highlights
Recent Highlights The most comprehensive geophysics program ever conducted in Clayton Valley – gravity survey, seismic and downhole geophysics. Downhole geophysics CV-1, Jan 2015 Seismic data collection, Feb 2015 19
Slide 20: Recent Highlights
Recent Highlights Completion of CV-1 and drilling CV-2 Feb/Mar 2015 Seismic data processing, Mar 2015 20
Slide 21: Conventional Processing Technology
Conventional Processing Technology Evaporation ponds and processing plant • Slow • Weather dependent • Massive footprint with high CAPEX • Poor use of resources • Massive residual salt waste = ongoing liability Need to improve! 21
Slide 22: Technology Development
Technology Development Currently evaluating a number of novel technologies with established strategic partners Tenova Bateman and POSCO. Target specifications include (greyed text indicates conventional tech): • Faster – 8 hrs vs. 1-2 years • Better use of resource - >99% Li extraction vs. 40%-50% L
Slide 23: Permitting
Permitting Pure is working with BEC Environmental, a respected consulting firm based in Nevada, to assist with permitting, consultation and regulatory obligations. Exploration Stage • Streamlined BLM permitting process (Intent to Operate) allows for the development of 1-2 wells at any given time; ‘r
Slide 24: Management Team
Management Team • Robert Mintak, CEO – Robert has over 25 years experience in executive administration, and leadership in a variety of industries, including several private and public lithium exploration companies. Robert is a founding director of Pure Energy Minerals with an in-depth understanding
Slide 25: Technical Advisor
Technical Advisor Prof. LeeAnn Munk, World’s Leading Lithium Brine Expert • Prof. Munk is a global expert in the geochemical origin and development of lithium–rich brines • Conducted research in Clayton Valley and South America – very familiar with Clayton Valley • Professor at the University of Ala
Slide 26: Summary
Summary Market Growth market in lithium - CAGR of 12% to 2020 driven by clean tech/green technologies Resource NI43-101 Inferred resource estimate of 816,000 metric tons of lithium carbonate equivalent Very rare resource in a strategic location – located next the only producing lithium mine in
Slide 27: Contact
Contact Robert Mintak, CEO robert@pureenergyminerals.com Pure Energy Minerals Limited Alexi Zawadzki, VP Business Development a.zawadzki@pureenergyminerals.com 355 Burrard St, Vancouver, BC V6C 2G8 604-608-6620 Scott Koyich, Investor Relations www.pureenergyminerals.com skoyich@briscocapital.com 1-4
Slide 28: Capital Markets Snapshot
Capital Markets Snapshot (TSXV:PE; XETRA: AHG ) Capital Structure (23nd July 2015) Shares on issue 53,701,445 Options 3,810,0006 Warrants ($0.15) 9,110,871 (expire May-Sept 2017) Warrants ($0.24) 3,128,233 (expire Dec 31, 2016) Warrants ($0.30) 11,300,125 (expire June 19, 2016) Warrant capital poten
Slide 29: Appendix I – Lithium Market
Appendix I Appendix I Lithium Market 29
Slide 30: Market Snapshot - Supply
Lithium Market Snapshot - Supply Lithium supply is limited: • Limited number of known economically extractable lithium resources – many located in areas of high geopolitical risk • Global production highly concentrated: ~76% of world supply comes from Chile (SQM and Rockwood), Argentina (FMC Corp) ,
Slide 31: Market Snapshot - Demand
Lithium Market Snapshot - Demand Grid storage is an important way to store energy generated by renewables for use when renewables are not available. This market is expected to grow: In 2013, California created a mandate pursuant to Bill 2514 calling for 1,325 megawatts of energy storage projects t
Slide 32: Market Snapshot – Demand Forecasts
Lithium Market Snapshot – Demand Forecasts What the oligarchy says about demand: Rockwood: Current producers face challenges: “I think that, worldwide, the demand for lithium products will • SQM volume down over 20% (prices up 12%) in 2013, probably grow by 15% to 20%. The issue for Rockwood is no a
Slide 33: Market – Global Identified Resources
Lithium Market – Global Identified Resources Russia Canada 1M Serbia 1M 1M USA 5.5M China 5.4M Congo 1M Bolivia 9M Chile Australia Argentina 7.5M 1.7M 6.5M Global Identified Lithium Resources (in tons) Resources whose location, grade, quality, and quantity are known or estimated from specific geolog
Slide 34: Market Snapshot – Grades and Price
Lithium Market Snapshot – Grades and Price Industrial Technical Battery EV EV Plus Grade Grade Grade Grade Grade <99.0% LC 99.0% LC 99.5% LC 99.9% LC >99.9% LC Price US$6,500/t Price US$8,500/t Price US$15,500/t 75% of Battery 15% of Battery 10% of Battery Market Market Market • Battery-grade lithiu
Slide 35: Market Snapshot – Supply and Recycling
Lithium Market Snapshot – Supply and Recycling Source: Argonne National Laboratory • Lithium recycling is expected to balance out virgin lithium material by 2030 onwards. • Recycling of electric vehicle batteries could provide 50 percent of the lithium requirement for new batteries by 2040 (Gaines,
Slide 36: Market Snapshot – Tesla Gigafactory
Lithium Market Snapshot – Tesla Gigafactory The Gigafactory is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013. • Tesla Motors and Panasonic announced they will build its “Gigafactory” - one
Slide 37: Lithium – Emerging Applications in Alloys
Lithium – Emerging Applications in Alloys Space-X Falcon 9 structure uses Li-Al alloy. Bombardier C-Series aircraft uses Li-Al alloy in fuselage. 37
Slide 38: Appendix II – Lithium Processing
Appendix I Appendix II Lithium Processing Technology Development Tenova Bateman Technologies 38
Slide 39: Technology Development
Technology Development Lithium Hydroxide Process Ca-Mg removal is expensive. Mg:Li Ratios that are less than 2:1 are preferred (Clayton Valley Mg:Li <2:1) Lithium brine Conversion Mg and Ca Lithium Hydroxide to Cathode removal Concentration Conversion Lithium waste/by-product Material Lithium Hydrox
Slide 40: Technology Development
Technology Development Tenova Bateman LiSX Advantages: 40
Slide 41: Technology Development
Technology Development Tenova Bateman LiSX Advantages (con’t): 41
Slide 42: Technology Development
Technology Development Tenova Bateman LiSX lithium extraction typical plant footprint (schematic): Compact and simple, the LiSX process uses infrastructure common to typical solvent extraction facilities 42
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