Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Investor Presentation (June 2019)
33 slides from Sunrise Energy Metals's investor presentation, June 2019
Slide 1: Sunrise Battery Materials Complex Corporate Presentation
Sunrise Battery Materials Complex Critical raw materials for a battery revolution CORPORATE PRESENTATION CLQ June 2019
Slide 2: Cautionary statement
Cautionary statement Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, pe
Slide 3: Our vision is to empower the clean revolution
Our vision is to empower the clean revolution Critical raw materials for electric vehicles and energy storage • Advancing development of the Sunrise Battery Materials Complex – a nickel, cobalt and scandium project in NSW, Australia • Sunrise is a strategic asset in the lithium-ion battery supply ch
Slide 4: Clean TeQ commences partnering process for Sunrise
Clean TeQ commences partnering process for Sunrise • As announced on 4 June 2019, Clean TeQ has commenced a partnering process for its wholly-owned Sunrise Battery Materials Complex (“Sunrise”) US$1,491MILLION Sunrise development capex • The announcement followed numerous in-bound enquiries from a r
Slide 5: 1. Market overview
1. Market overview A battery revolution is expected to drive raw materials demand
Slide 6: Electric vehicles around the corner
Electric vehicles around the corner 12 Dec 2018, Electrive 5 Feb 2019, Reuters 9 Jan 2019, Bloomberg 31 Jan 2019, Electrive 5 Feb 2019, S&P Global 5 Feb 2019, Mining.com 7 Feb 2019, Electrive 12 Dec 2018, Electrek 31 Jan 2019, VentureBeat 23 Jan 2019, Reuters 17 Jan 2019, Car and Driver 11 Dec 2018,
Slide 7: Megafactories being built now
Megafactories being built now Significant increase in Li-ion battery capacity from 2018 to 2028 • Benchmark Mineral Intelligence is tracking 70 megafactories currently under construction – 46 based in China – In October 2017, only 17 under construction • Megafactories will make Li-ion batteries with
Slide 8: Supply of battery raw materials will be challenged
Supply of battery raw materials will be challenged New sources of nickel and cobalt are required Projected megafactory demand Global EV sales projections (at 100% utilization) 1,000 18 90 928 900 16 80 800 14 70 Raw material demand (kt) 700 12 60 Millions of vehicles 600 10 50 495 500 19x 8 40 400 6
Slide 9: Largest demand pull from China
Largest demand pull from China Emissions controls legislation driving the agenda • The shift to New Energy Vehicles (NEV) is here! EV vs. total passenger vehicle sales – NEV mandate is effective in 2019 8% • Credit based system targeting: 10% EV (2019), 12% (2020) 7.3% 7% • EV subsidies based on veh
Slide 10: Nickel sulphate capacity needs to grow
Nickel sulphate capacity needs to grow • Electric vehicles are heavy consumers of nickel sulphate Significant nickel supply growth needed – Vale irrespective of battery chemistry 250 • Next generation lithium ion batteries will be more nickel Requires a new Sudbury + Voisey’s Bay + PTVI intensive Ni
Slide 11: There is a global shortage of battery-grade nickel
There is a global shortage of battery-grade nickel Battery-grade nickel supply deficit Trend towards nickel-rich battery chemistries Nickel-centric batteries 300 Balance (kt) 25 LFP LMO NCA NiMH NMC111 NMC532 NMC622 NMC811 Price (US$/lb, real) 250 100% 20 200 Nickel price (US$/lb, real) 80% 150 15 B
Slide 12: Cobalt supply is highly constrained
Cobalt supply is highly constrained • Majority of global cobalt sourced from DRC presenting Cobalt Production – Global Rankings major supply risk for end users – Security of supply Mine Country 2018 est. tonnes – Auditability of supply chain Mutanda DRC 27,300 • 95% of production comes as a by-produ
Slide 13: Scandium for a new generation of lightweight alloys
Scandium for a new generation of lightweight alloys • Sunrise is one of the world’s largest and highest grade Airbus Group’s Light-rider scandium resources • Scandium is used to provide next generation lightweight aluminium alloys for key transportation markets • Clean TeQ continues to promote the u
Slide 14: 2. Sunrise snapshot
2. Sunrise snapshot A strategic asset in the battery materials supply chain
Slide 15: Advanced development project in Central NSW
Advanced development project in Central NSW • Sunrise Battery Materials Complex • 100% owned by Clean TeQ • Laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium • One of the largest and highest grade sources of cobalt outside Africa • Located 350 km west of Sydney in an estab
Slide 16: Project highlights
Project highlights One of the largest Low first quartile A simplified flow Positioned to Stable and low risk Project team has nickel and cobalt position on the sheet direct to address global nickel mining jurisdiction worked on several resources outside of nickel cost curve battery precursor and cob
Slide 17: Sunrise is a strategic battery minerals asset
Sunrise is a strategic battery minerals asset Fully-integrated1 producer of nickel and cobalt sulphate Global nickel sulphate production Global cobalt production (thousand tonnes nickel sulphate) (thousand tonnes contained cobalt) 150 30 120 24 90 18 60 12 30 6 - - Umicore Umicore Korea Norilsk Jinc
Slide 18: Primary drivers to success
Primary drivers to success Mineralogy Flowsheet Location • Near surface deposit with • Clean iX® - continuous ion • Fully auditable, non-DRC maximum depth of 40 metres exchange technology provides supply lowest cost path to battery- • High cobalt grades relative to ready products • Access to rail, r
Slide 19: Sunrise is unique among nickel / cobalt laterite projects
Sunrise is unique among nickel / cobalt laterite projects • Sunrise’s shallow deposit allows for simple strip mining Cobalt to nickel ratio Australian laterite projects and existing operations • Unique among nickel laterite projects due to its high 0.25 cobalt content relative to nickel. Post by-pro
Slide 20: Advantages from mine to product
Advantages from mine to product Clean TeQ flowsheet Process designed and built for next generation of EV batteries High Nickel & Leach Concentration Ore Cobalt Slurry Nickel / Cobalt Sulphates Solution Removes intermediate processing steps, providing the HPAL Ion Exchange Purification / SX lowest co
Slide 21: Fully permitted and development ready
Fully permitted and development ready STUDIES Definitive Feasibility Study completed in June 2018 PERMITS Approved 2.5 Mtpa project from NSW Government WATER Secured 3.2 GLpa water allocation INFRASTRUCTURE Road and rail access in place POWER Power and gas in close proximity PILOT PLANT Successful p
Slide 22: 2018 Definitive Feasibility Study
2018 Definitive Feasibility Study Outstanding economic and technical outcomes 5 6 7 5. Full information regarding the Definitive Feasibility Study is contained in the technical report titled “Sunrise Nickel Cobalt Project, New South Wales, Australia NI 43-101 Technical Report” dated 25 June 2018 and
Slide 23: Strong free cash flow generation
Strong free cash flow generation • Clean TeQ Sunrise is forecast to deliver: DFS free cash flow profile (US$M) – US$14 billion in revenue8 800 8,000 – LOM EBITDA of US$8.6 billion 600 6,000 – Average annual EBITDA of US$344 million 400 4,000 200 2,000 Revenue Breakdown - - Sc Amsul (200) (2,000) 3%
Slide 24: Competitive operating cost position
Competitive operating cost position US$/lb Ni US$/lb Ni Lowest quartile cash costs before after credits credits Mining $1.14 $1.14 Processing $3.33 $3.33 Haulage & port $0.07 $0.07 G&A $0.14 $0.14 Cobalt credits ($5.60) Scandium credits ($0.36) Amsul credits ($0.18) Total C19 cash cost $4.68 ($1.46)
Slide 25: Significant community and social benefits
Significant community and social benefits • Strong anticipated community benefits over life of mine including: – Long-term employment – Significant infrastructure upgrades – Increased tax revenue – Government royalties payable Sunrise | Corporate Presentation - June 2019 25
Slide 26: 3. Next steps
3. Next steps Development milestones to first production
Slide 27: Project engineering & design underway
Project engineering & design underway MCC selected as a key project delivery partner • Fixed-price EPC contract with MCC – Covering engineering, procurement and on-site construction for process plant scope • MCC built, own and operate Ramu nickel-cobalt mine in PNG • Front-end-engineering and Design
Slide 28: Comprehensive project financing package
Comprehensive project financing package Project debt, strategic partnership & offtake • Mandated Lead Arranger (MLA) group for project debt facility – Industrial Commercial Bank of China (ICBC), National Australia Bank, Société Générale and Natixis • US$500 million indicative debt commitments receiv
Slide 29: Our key project partners
Our key project partners Well-aligned for successful project delivery Debt financing Project delivery Offtake Product end-use ICBC appointed to the Heads of Agreement signed Binding five-year offtake Landmark agreement with Mandated Lead Arranger with MCC in August 2018 for an agreement for 20% of c
Slide 30: Appendix
Appendix
Slide 31: Corporate overview
Corporate overview Capital Structure Major Shareholders3 ASX/TSX code CLQ Robert Friedland 12.9% Ordinary shares1 746.5M Pengxin International 12.4% Unlisted options1 12.8M FMR LLC 7.8% Performance rights1 8.3M AustralianSuper 6.3% Cash at bank (31 March 2019) $99.7M Market capitalisation2 (undilute
Slide 32: Ore Resources and Reserves
Ore Resources and Reserves Where a Competent Person has previously issued the written consent to the inclusion of their findings in a report, a company re-issuing that information to the Public, whether in the form of a presentation or a subsequent announcement, must state the report name, date and
Slide 33: Clean TeQ Holdings Limited contact details
P: +61 3 9797 6700 E: info@cleanteq.com Clean TeQ Holdings Limited 12/21 Howleys Rd Notting Hill VIC 3168 Australia www.cleanteq.com
Clean TeQ Holdings — Investor Presentation (June 2019) on 6ix