Nemaska Lithium — Investor Presentation (April 2019)
33 slides from Nemaska Lithium's investor presentation, April 2019
Slide 1: Corporate Presentation April 2019
Corporate Presentation April 2019
Slide 2: Forward-looking statement
• During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to its projects, business strategy and plan, which could be construed as forward-looking. • Undue reliance should not be placed on such forward-looking statements, including but not limited to
Slide 3: Corporate Overview
Corporate Overview Project under • Nemaska is building its Whabouchi mine and Shawinigan electrochemical plant in Quebec, construction Canada. • Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the Vertically integrated raw material at Whabouchi mine to t
Slide 4: Project Financing of CAD 1.1B Completed
Project Financing of CAD 1.1B Completed Equity CAD 454M • A 94M private placement from world-leader SoftBank Group Corp. SoftBank also has a right of first offer to purchase up to 20% of lithium salts produced from Shawinigan. • A 80M private placement with Ressources Québec • A 280M public offering
Slide 5: Nemaska Lithium Project Overview
Nemaska Lithium Project Overview • One of North America’s largest spodumene deposits located in the Eeyou Istchee James Bay region, Canada • 33 years initial mine life. • Expected to produce 213,000 tonnes/y of 6.25% (Li2O) spodumene concentrate Reserve Overview Fully-Integrated Lithium Producer Cat
Slide 6: Whabouchi Mine | Construction Progress as of Nov. 14, 2018
Whabouchi Mine | Construction Progress as of Nov. 14, 2018 Administrative Office Concentrator Concentrate Dome Thickener & Process Water Tank Fine Ore & Residue Foundations Dome Foundation E-House Foundation Primary Crusher Foundation & Retaining Wall 6
Slide 7: Whabouchi Mine | Construction Progress as of April 1st, 2019
Whabouchi Mine | Construction Progress as of April 1st, 2019 7
Slide 8: Whabouchi Mine | Construction Progress as of April 1st, 2019
Whabouchi Mine | Construction Progress as of April 1st, 2019 Primary, secondary and tertiary crushers, ore sorting building, fine ore and tailings dome and crusher equipment 8
Slide 9: Whabouchi Mine | Construction Progress
Whabouchi Mine | Construction Progress Construction – interior of concentrator 9
Slide 10: Whabouchi Mine | Construction Progress
Whabouchi Mine| Construction Progress Vibrating screen Magnetic separator 10
Slide 11: Electrochemical Plant | Existing Buildings in Shawinigan
Electrochemical Plant | Existing Buildings in Shawinigan Hydroelectric Power Plant Electrochemical Plant Detailed engineering underway Phase 1 Plant Commissioned in Q1-2017 and in production 11
Slide 12: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress Reservoir foundation and mezzanine floor in building 80 12
Slide 13: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress Installation of piles inside and outside building 80 13
Slide 14: Electrochemical Plant | Construction Progress
Electrochemical Plant | Construction Progress Foundation and structural reinforcement in building 67 14
Slide 15: Other assets in Shawinigan, Quebec
Other assets in Shawinigan, Quebec Phase 1 plant Operating since February, 2017 Administrative office Moved in December 2018 15
Slide 16: Project Economics Key Figures
Project Economics Key Figures Expected Mine Life and Payback Period Yearly Average Production 33 years Whabouchi Mine with 2.9 year (2 year**) payback period (after-tax) ≈ 213,000 tonnes of concentrate (6.25% Li2O) Average Cost Per Tonne | Spodumene Concentrate Shawinigan Electrochemical Plant ≈ 23,
Slide 17: A Unique Process | Whabouchi Mine & Electrochemical Plant
A Unique Process | Whabouchi Mine & Electrochemical Plant 17
Slide 18: Demonstrated Quality
Demonstrated Quality LiOH.H2O Produced From Spodumene in Demonstration plant Purity Compares Advantageously with Competition Typical Nemaska Elements Battery Grade Demonstrated “ We have completed our analysis on on Market(1) Quality(2) the first product sample received from LiOH, wt% (min) min 56.5
Slide 19: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Hydroxide Cost Curve 2021E USD per tonne lithium hydroxide Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium 19 Technical and battery grades; SQM, Albemarle and FMC costs assume lithium carbonate procured interna
Slide 20: The Lithium Market
NEMASKA LITHJUM The Lithium Market
Slide 21: Lithium Uses 2016 and 2026E
Lithium Uses 2016 and 2026E Uses of Lithium in 2016 Uses of Lithium in 2026E Glass Air treatment Other Polymer 1% Primary 0% 2% 1% battery… Greases Air treatment 2% 2% Glass-ceramics Primary battery 3% Rechargeable 2% Other battery Ceramics 9% 42% 3% Metallurgical powders 4% Glass 5% Total demand Po
Slide 22: Lithium Demand Per Product 2016 - 2031
Lithium Demand Per Product 2016 - 2031 22 Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018
Slide 23: Pricing Outlook
Pricing Outlook Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide 21 000 20 200 900 850 19 000 18 800 19 000 790 17 800 800 17 050 16 700 17 000 700 15 700 15 500 700 14 750 15 000 13 900 14 100 630 USD per tonne USD per tonne 13 183 610 600 12 750 590 13 000
Slide 24: New Lithium Development Projects
New Lithium Development Projects Estimates made prior to announcement of SQM and ALB’s deal with CORFO Source: Roskill Global Industry, Markets and Outlook to 2026 24
Slide 25: Megafactories Driving Demand for Lithium
Megafactories Driving Demand for Lithium +10x in Expected Lithium Demand from Megafactories between 2017 – 2028E 24 000 260 000 tonnes battery grade tonnes battery grade LCE consumption LCE consumption per year in 2016 per year expected in 2021 World capacity in 2017 : 145 GWh Total pipeline capacit
Slide 26: Our Team
NEMASKA LITH]UM Our Team
Slide 27: Board of Directors
Board of Directors • Over 30 years as a mechanical engineer and senior executive. • Chief Executive Officer, President and • Former President & COO at Bombardier’s Director at Stornoway Recreational Products division and EVP of • Prior to that, he was with G Services Miniers Bombardier Transportatio
Slide 28: Senior Management
Senior Management • President & CEO of Nemaska since inception in 2008. Guy Bourassa(1) • Over 33 years of mining experience. President & CEO, Director • Currently a director of Nouveau Monde Graphite and Monarques Gold Corporation. • CFO of Nemaska since inception in 2008. Steve Nadeau • Over 20 ye
Slide 29: Construction and Operation Team
Construction and Operation Team • Cumulates nearly 30 years of experience in the construction and project development fields in the mining industry and he is known for the expertise he acquired while working on the implementation of major industrial Ronald Bougie projects. Vice-president, • Held the
Slide 30: Technical Team
Technical Team • Professional engineer with over 20 years of experience in the metallurgical Jean-François industry and the lithium battery industry. Magnan • Author/inventor of several patents in the rechargeable lithium battery Technical Manager industry. Bertin Ouellet • Professional chemical eng
Slide 31: Capital Structure | March 31, 2019
Capital Structure | March 31, 2019 Shares outstanding 847 584 338 Options (average exercise price $0.95) – May 2019 to March 2024 36 799 900 Warrants (average exercise price $1.50) – July 2019 29 274 823 Fully Diluted 913 659 061 Distribution (estimated) Management and employees ≈ 6% Ressources Québ
Slide 32: Project Summary | Key investment takeaways
Project Summary | Key investment takeaways Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction 1 2 3 4 5 Near term To become a Unique location Proven commercial low cost World-class and process of production producer of producer of counterparties processing process lit
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