Slide 1: Australia's Newest Lithium Miner
AUSTRALIA’S NEWEST LITHIUM MINER Equity Raising Presentation Gareth Manderson (CEO) 16 August 2023 corelithium.com.au | ASX CXO Not for release to US wire services or distribution in the United States
Slide 2: Important & Cautionary Notes
IMPORTANT & CAUTIONARY NOTES This presentation has been prepared by Core Lithium Ltd (“Core” or the “Company”) in reliability or reasonableness of this presentation; investment decision. These risks, together with other general risks applicable to all investments connection with a proposed equity ra
Slide 3: Important & Cautionary Notes (cont.)
IMPORTANT & CAUTIONARY NOTES (CONT.) ASX Listing Rule 5 Requirements and Competent Person Statements information about Core, the Offer or that a prospective investor or purchaser may require in an exchange rate of 0.70 AUD/USD. evaluating a possible investment in Core or acquisition of New Shares. T
Slide 4: Introduction
1 INTRODUCTION corelithium.com.au | ASX CXO
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW Core is undertaking a A$100m Placement and A$20m SPP in order to provide additional financial flexibility during Finniss ramp up, whilst also funding BP33 early works, ongoing sustaining capital and a targeted regional exploration program • Core is raising A$100 million – A$1
Slide 6: Core – Our Value Proposition
CORE – OUR VALUE PROPOSITION 1 Achieved first production in under five years from maiden resource discovery by pursuing a ‘Minimum Viable Project’ strategy 2 Leveraged to near-term pricing – Australia’s newest producing lithium mine which is located 88km from Darwin Port Currently operating the Gran
Slide 7: Corporate Overview
CORPORATE OVERVIEW Core Lithium remains focused on ramping up the flagship Finniss Lithium Project - with first production achieved Q1 CY23 – and has a portfolio of other prospective exploration assets Finniss Lithium (100%) Commodity: Li ~80-90kt FY24 production ~88km Distance to Darwin Port Offtak
Slide 8: Executive Team to Drive Next Growth Phase
EXECUTIVE TEAM TO DRIVE NEXT GROWTH PHASE Alongside the completion of executive appointments, Core has finalised the registration of the new Perth office Chief Executive Officer Gareth Manderson Strategy leadership and value creation 30 years experience building high-performing teams and leading min
Slide 9: Core Milestones
CORE MILESTONES TRACK RECORD OF ACHIEVING MILESTONES PURSUING SUSTAINED GROWTH Jan: First revenue $20.1m Mar: BP33 Resource more than doubled. Additional 18.5kt conc. FY24 focus areas: offtake with Yahua Deliver FY24 production and cost guidance Apr: $20.1m pre payment1 and Deliver Finniss productiv
Slide 10: The Finniss Lithium Project
THE FINNISS LITHIUM PROJECT Waste Rock Dump (WRD) BP33, ~5km away Tailings Storage Facility within WRD Run of Mine (ROM) Pad Mine Water Dam 1 Dense Media Separation (DMS) Plant Raw Water Dam Grants Open Pit Inundation Bund Crushing Infrastructure Admin Building Sediment Basin 2 corelithium.com.au |
Slide 11: Equity Raising Overview
2 EQUITY RAISING OVERVIEW corelithium.com.au | ASX CXO
Slide 12: Overview of Equity Raising
OVERVIEW OF EQUITY RAISING Core is conducting a A$100m fully underwritten institutional placement and up to $20m SPP at an offer price of A$0.40/sh • Core Lithium is conducting the Offer to raise up to A$120 million (before costs), comprising – An underwritten institutional placement of 250 million
Slide 13: Uses of Proceeds
USES OF PROCEEDS Equity raise will provide financial flexibility during Finniss ramp-up and accelerate funding for near-term growth initiatives BP33 early works ($45 – 50m) Sources of funds A$m • BP33 early works funding of $45 – 50m to complete development of the covered box cut, improved Fully und
Slide 14: Pro Forma Financial Position
PRO FORMA FINANCIAL POSITION Additional equity capital will provide Core sufficient liquidity and working capital Balance sheet overview Shares (m) Cash (A$m) Overview of upcoming cashflow movements • Core’s cash balance as at 31 July 2023 of $127 million is lower than the 30 June Cash (as at 31 Jul
Slide 15: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE Event Date1 Placement Trading halt 16 August 2023 Launch of Offer and ASX release of Investor Presentation 16 August 2023 Trading halt lifted and announcement of completion of Placement 17 August 2023 Settlement of Placement Shares 21 August 2023 Allotment of Plac
Slide 16: Operational Update
3 OPERATIONAL UPDATE corelithium.com.au | ASX CXO
Slide 17: Q4 FY23 Highlights
Q4 FY23 HIGHLIGHTS O P E R AT I O N S • Quarterly spodumene production of 14,685t (FY23: 18,274t) • C1 unit cost of A$902/t (FY23: $1,230/t) • Maiden 5,500t spodumene concentrate shipment in April and second SALES & 13,100t shipment in early July1 MARKETING • 5,423dmt spodumene concentrate sales @ a
Slide 18: Industry Leading Partners and Commercial Update
INDUSTRY LEADING PARTNERS AND COMMERCIAL UPDATE Core has world-class lithium customers, with spodumene cargoes meeting customer specification requirements to date Long-term offtakes secured Recent offtake developments • Offtake market conditions continue to remain tight given the scarcity of lithium
Slide 19: Finniss Operational Update
FINNISS OPERATIONAL UPDATE Ramp up continuing to progress with maiden spodumene concentrate shipment departing Darwin port during the quarter Management commentary Quarterly Operating Performance • Core achieved total spodumene production of 14,685 tonnes at a 5.35% Li2O Q3 FY23 Q4 FY23 grade with p
Slide 20: Finniss Operational Update (cont.)
FINNISS OPERATIONAL UPDATE (CONT.) The Finniss plant has operated for a short period of time, on a campaign basis Management commentary Core spodumene product and DMS plant • The DMS plant had its second quarter in operation following construction completion and first concentrate produced in Februar
Slide 21: Finniss Performance Improvement Initiatives
FINNISS PERFORMANCE IMPROVEMENT INITIATIVES Several short to medium term improvement projects are underway to optimise operations and enhance recoveries Improvement projects and fines sales Improvement projects • The Finniss plant has run for a short period of time, on a campaign Trial sales of fine
Slide 22: Sale of Lithium Bearing Fines Now Underway
SALE OF LITHIUM BEARING FINES NOW UNDERWAY Core is undertaking a process to commercialise its fines product Management commentary Fines excavation currently underway • To help address the lower recoveries in the near-term, the potential for lithium fines to become a saleable by-product has been iden
Slide 23: FY2024 Guidance
FY2024 GUIDANCE 80,000 – 90,000 tonnes Core provides its first guidance as an operator Spodumene concentrate production • FY24 production guidance is between 80,000t and 90,000t of spodumene concentrate at a C1 cost of between $1,165 to $1,250 per tonne1 90,000 – 100,000 tonnes Concentrate sales – K
Slide 24: BP33 Update
BP33 UPDATE Significant work underway as BP33 approaches FID in Q1 2024 • BP33 is the cornerstone asset which underpins the broader business – Located in proximity to the Finniss primary concentrator only ~5km away – Mineral Resource more than doubled to 10.1Mt @ 1.48% Li2O in March 20231 – Mining e
Slide 25: Carlton Update
CARLTON UPDATE Drilling and study work also underway at the Carlton deposit • Current resources of 6.18Mt @ 1.38%, increased from July 2022 estimate of 4.04Mt at 1.30% Li2O* • Drilling has confirmed the down-plunge continuity of the spodumene-bearing pegmatite deposit a further ~200m down plunge • D
Slide 26: Core's FY24 Exploration Program
CORE’S FY24 EXPLORATION PROGRAM Track record of resource growth at low cost with existing deposits open at depth Overview of exploration program Finniss Resource growth Cumulative Resources (Mt) • FY24 exploration spend is expected to be approximately ~$25 million Mt / $M Cumulative Exploration Spen
Slide 27: North Finniss: Our Exploration Focus
NORTH FINNISS: OUR EXPLORATION FOCUS Close proximity deposits provide a long-term future for Finniss • Numerous underexplored pegmatites • During the quarter there was 9,581m of mine development and exploration drilling undertaken at BP33, Carlton and Lees • 1,529m testing new prospects • At the end
Slide 28: Regional Exploration Targets
REGIONAL EXPLORATION TARGETS Large tenement holdings prospective for lithium at Anningie, Barrow Creek and Shoobridge • Fieldwork to commence in 2024 • Ground holdings with swarms of Pegmatite dykes and sills • Historical pegmatite related tin-tantalum mines and workings • Encouraging surface sampli
Slide 29: Project Pipeline and Sustaining Growth
PROJECT PIPELINE AND SUSTAINING GROWTH Strong pipeline of organic growth opportunities to drive Core’s next phase of growth Near-term priority Project Discovery Resource Definition Development Production / Extension Grants Production until late CY2025 Resources: 2.91Mt @ 1.47% Li2O Progress open pit
Slide 30: Our Priorities for FY24
OUR PRIORITIES FOR FY24 • Deliver Core’s Critical Risk Management program and focus on safe operations OPERATIONAL • Achieve FY24 spodumene production guidance of 80,000 to 90,000 tonnes DELIVERY • Execute Finniss performance improvement initiatives, including improving lithia recoveries and mining
Slide 31: A Additional Information
A Additional information corelithium.com.au | ASX CXO
Slide 32: Finniss Mineral Resources
FINNISS MINERAL RESOURCES Mineral Resource Estimate for the Finniss Lithium Operation (0.5% Li2O cut-off) Measured Indicated Inferred Total Mineral Resource Tonnes Li2O Tonnes Li2O Tonnes Li2O Tonnes Li2O Li2O (Mt) % (Mt) % (Mt) % (Mt) % Contained Metal (kt) Grants* 1.93 1.50 0.61 1.49 0.37 1.27 2.9
Slide 33: B Key Risks
B KEY RISKS corelithium.com.au | ASX CXO
Slide 34: Key Risks
KEY RISKS Risks specific to Core Production and The prospects of the Company should be considered in light of the risks, opportunities, expenses and difficulties frequently encountered by companies at a similar stage of production and development. Core's initiatives to improve its production perform
Slide 35: Key Risks
KEY RISKS Risks specific to Core (cont’d) Production, cost and The ability of Core to achieve production targets or meet operating and capital expenditure estimates on a timely basis cannot be assured. The assets of Core, as any others, are subject to uncertainty and unexpected technical, geographic
Slide 36: Key Risks
KEY RISKS Risks specific to Core (cont’d) Future capital The future capital requirements of Core will depend on many factors including its business development activities. Core believes its available cash and the net proceeds of the Offer should be adequate to fund the BP33 early works, FY24 plant o
Slide 37: Key Risks
KEY RISKS Risks specific to Core (cont’d) Underwriting risk Core has entered into a placement and underwriting agreement with the Lead Managers under which the Lead Managers have agreed to fully underwrite the Placement, subject to the terms and conditions of that agreement (Underwriting Agreement).
Slide 38: Key Risks
KEY RISKS Other risks specific to the industry Operating risk Mining operations generally involve a high degree of inherent risk and uncertainty. Such operations are subject to all the hazards and risks normally encountered in the exploration, development and production of lithium and other mineral
Slide 39: Key Risks
KEY RISKS Other risks specific to the industry (cont’d) Environmental risk The operations and proposed activities of Core are subject to Australian laws and regulations concerning the environment. The costs of complying with these laws and regulations may impact the development of economically viabl
Slide 40: Key Risks
KEY RISKS General economic risks Economic risk General economic conditions, movements in interest and inflation rates, the prevailing global commodity prices and currency exchange rates may have an adverse effect on Core's exploration, development and production activities, as well as on its ability
Slide 41: Key Risks
KEY RISKS General economic risks (cont’d) Accounting standards Accounting standards may change. This may affect the reported earnings of Core and its financial position from time to time. Core has previously and will continue to assess and disclose, when known, the impact of adopting new accounting
Slide 42: C Offer Jurisdictions
C OFFER JURISDICTIONS corelithium.com.au | ASX CXO
Slide 43: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in an
Slide 44: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC Act”). The New Shares are not being offered or sold in New Zealand (or allotted with a view to be
Slide 45: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2
Slide 46: Core Lithium Ltd contact details
Core Lithium Ltd Level 9, 2 Mill Street, Perth, WA, 6000 INVESTOR ENQUIRIES Natalie Worley Investor Relations +61 8 8317 1700 MEDIA ENQUIRIES Gerard McArtney Account Manager +61 421 505 557 Cannings Purple Authorised for release by the Board of Core Lithium Ltd corelithium.com.au | ASX CXO