European Lithium Ltd. · ASX:EUR
European Lithium — Investor Presentation (November 2017)
34 slides from European Lithium's investor presentation, Nov 7, 2017
Slide 1: Corporate Presentation November 2017
For personal use only Corporate Presentation November 2017
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by and is the sole responsibility of European Lithium Limited (the Company). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an induc
Slide 3: Investment Highlights
Investment Highlights For personal use only Central European project Experienced team EU net importer Robust lithium market ● 100% owned lithium project in ● Directors have considerable ● Apart from small Iberian ● Lithium market has grown from Austria experience in resource project production for l
Slide 4: Development Road Map
Development Road Map* Q3 2017 Increase Resource (completed) For personal use only Q1 2018 Finalise PFS Complete Q1 2019 Baseline/EIS/ Q3 2018 Finalise DFS Permitting Q1 2019 Start Construction Operations proposed to commence for production of 2020 lithium carbonate/hydroxide for battery factories *
Slide 5: Key Data
Key Data For personal use only Capital Structure Team Share Performance* Primary listing ASX: EUR Shares on issue: Board of Directors Also traded in Germany on Frankfurt (PF8) and Vienna (ELI) 503.4 million Tony Sage Market Cap: AUD$27 million (share price $0.054) Non-Executive Chairman Free float1
Slide 6: Lithium Battery Plants in Europe
Lithium Battery Plants in Europe Battery production for EV’s a key driver for Lithium demand For personal use only Northvolt (Skelleftea, Sweden) Production 2020 Daimler Tesla (TBA, Europe) (Kamenz, Germany) Operational, proposed Propose expansion ‘Gigafactory 2’ EV assembly at Tilburg, Nissan Nethe
Slide 7: The beginning of the end for fossil fuels
The beginning of the end for fossil fuels Many major countries have announced an end to fossil fuel cars For personal use only ”EV’s have adopted lithium ion battery technologies as standard” ”EV market share growth is expected to accelerate as costs reduce and access increases” ” Batteries will pla
Slide 8: Wolfsberg Lithium Project
Wolfsberg Lithium Project For personal use only ● Located 270km SW of Vienna, Austria ● The 5 year term of the original exploration ● Good local infrastructure and sources of energy licences was extended by the mining authority nearby to 31 December 2019 and is renewable. The mining licence is held
Slide 9: Project History
Project History For personal use only 1981 1988 1991 Discovered by Minerex, an Austrian Austrian Government decided BBU was closed by the Austrian government company. Following not to develop the project and government and the Project was sold extensive exploration, technical and Minerex was closed.
Slide 10: Geology
Geology ● Substantial exploration and development work by ● A programme of underground twin hole drilling For personal use only previous owners include: and channel sampling under a comprehensive QA/QC protocol has verified the original data ● 17,000m of drilling / 1,400m of decline, drives and whic
Slide 11: Project Topography
Project Topography For personal use only Lithium Deposit Wolfsberg Area Of Investigation Graphic: A. Pamsl Brandhöhe 1866m 5 1800m ZONE 2 ZONE 1 Adit (1574m asl) Amphibolite Micaschist Pegmatites (proven/estimated) Source: Company, Mine-it representation 10
Slide 12: Project Geology
Project Geology For personal use only Section through deposit Mineworkings – plan view Source: The spodumene depost at “Weinebene” Koralpe, Austria • Source: Company, prepared from Minerex data by Dr. Göd. by Dr.Göd, Mineralium Deposita 24, 270-278 (1989). • 11
Slide 13: Geology of Wolfsberg - plan
Geology of Wolfsberg - plan For personal use only Location of new high grade drill intersections Source: The spodumene depost at “Weinebene” Koralpe, Austria by Dr. Göd, Mineralium Deposita 24, 270-278 (1989). • 12
Slide 14: Resources Extension
Resources Extension For personal use only surface/topography B B’ 1500m asl 1400m asl vein model P15-14 (Completed) 1300m asl vein outline/hull P15-17 1200m asl exploration extension (Completed) P15-11 P15-19 (Completed) (Completed) 1100m asl Representation of the current vein model and exploration
Slide 15: Resources
Resources* Type Million Tonnes Grade Li2O (%) • Deeper resource in Zone 1 increases For personal use only contained lithium by 50% from 182,000t LCE in Measured 2.86 1.28 M&I to 272,000t LCE in Total Indicated 3.44 1.08 M&I Total 6.30 1.17 Inferred 4.68 0.78 Total 10.98 1.00 *JORC Code (2012) resour
Slide 16: Resource Expansion Potential
Resource Expansion Potential For personal use only Location of deep drill holes P15-14 and P15-19 showing high grade intersections in amphibolite previously undrilled Resource expansion potential along strike in Zone 1 ZONE 1 AHP veins in Zone 1 still have potential extension to depth Drill holes P1
Slide 17: Metallurgy
Metallurgy ● Earlier studies optimised with latest technology For personal use only ● Rejection of waste from ROM with laser sorting ● Flotation concentrate 6.2% Li2O for conversion to battery products and European glass-ceramic ● Battery grade lithium carbonate >99.9% Li2CO3 produced by conventiona
Slide 18: Mining
Mining For personal use only ● Mine design based on current M&I resource ● Longitudinal long hole open stoping ● Mining 600ktpa for 13 years ● Production 7,100tpa LCE ● Potential expansion to 800ktpa mine capacity for 23 years and 11,000tpa LCE at full production Isometric view of mine development a
Slide 19: Pre-Feasibility Study
Pre-Feasibility Study Completion anticipated Q1 2018 For personal use only ● Detailed mine operating plan for permitting by Mining Authority ● Location and transport studies for processing plants ● Processing and infrastructure design ● Capex and Opex ● Marketing studies ● Environmental base line –
Slide 20: Development Strategy
Development Strategy ● The Minerex data has been verified and an upgraded For personal use only resource compliant to JORC Code (2012) has been "PFS completion declared anticipated Q1 ● Resources increased by drilling down dip 2018” ● Establish a resource in the high potential Zone 2 ● Establish the
Slide 21: Consultants for Work Programme
Consultants for Work Programme For personal use only ● Geology Adviser - Dr Richard Göd (ex Chief Geologist Minerex) (Austria) ● Exploration Management – Technisches Büro für Geologie (Austria) ● Drilling contractor (underground) – Swietelsky (Austria) ● Drilling contractor (surface) – VA Erzberg (A
Slide 22: Estimated Development Timeline
Estimated Development Timeline For personal use only Work Programme Q3 16 Q4 16 Q2 17 H2 17 H1 18 H2 18 Q1 19 H2 19 2020 Re-listing on ASX PFS DFS Baseline/EIS/Permitting Construction Operations * All dates are indicative, subject to change without notice and availability of finance 21
Slide 23: Material Lithium Projects in Europe
Material Lithium Projects in Europe 1. Keliber • Finland For personal use only • In PFS • No guidance on first production 2. Avalonia Lithium (Intl. Lithium & Jiangxi Ganfeng) • Ireland • Exploration 1 • No resource declared 3. SMP, Novo Litio, Savannah Resources • Portugal • For local glass/ceramic
Slide 24: Recent Industry News
Recent Industry News VW to build electric versions of all 300 models by 2030 September The world’s largest automaker commits to move away from combustion engines and CEO said 2017 For personal use only transformation of industry ‘unstoppable’. UK to ban sales pf petrol and diesel cars from 2040 in p
Slide 25: Appendices
For personal use only Appendices
Slide 26: Board of Directors and Management
Board of Directors and Management For personal use only Steve Kesler Dietrich Wanke Tony Sage Malcolm Day Stefan Müller CEO General Manager Non-executive Chairman Non-executive Director Non-executive Director ● Experienced mining ● Experienced Executive ● Executive Chairman of ● Experienced Surveyor
Slide 27: Project Photographs
Project Photographs For personal use only 26
Slide 28: Main Sources of Lithium
Main Sources of Lithium For personal use only PROCESSING OPEX CAPEX OTHER Hard rock Mining, crushing, concentration, Typical operating Typically lower Less impurity roasting, leaching and crystallisation costs higher capex/t LCE than variation than to lithium carbonate brine projects brines which is
Slide 29: Lithium Applications
Lithium Applications For personal use only CURRENT APPLICATIONS NEW MARKETS CHEMICAL TECHNICAL Electric vehicles Batteries Glass Lubricants Ceramics Fixed energy storage with renewables Air Treatment Aerospace Aluminium smelting Li-Al alloys for aircraft Steel and Iron Pharmaceuticals castings 28
Slide 30: LCE in Batteries
LCE in Batteries For personal use only SMART PHONE LAPTOP TABLET TOYOTA PRIUS TESLA ROADSTER LONDON BUS 2-3g/battery 30-40g/battery 20-30g/battery 3.6kg/battery 40kg/battery 200kg/battery ● Lithium ion has captured nearly 100% of consumer electronics market ● Tesla aims to build its lithium ion batt
Slide 31: World Market - rechargeable lithium batteries
World Market - rechargeable lithium batteries For personal use only Growth in demand for rechargeable batteries will increasingly be driven by the automotive market which is expected to reach 67GWh in 2020 and 143.5GWh in 2025 Source: Roskill Lithium: Global Industry, Markets and Outlook to 2025 13t
Slide 32: Lithium Price
Lithium Price ● Pricing off-market For personal use only ● Pricing determined by product and specification for each consumer ● Pricing typically in LCE ● Battery grade lithium is highest purity and most expensive ● Technical grade lithium needs less processing and is cheapest ● The high case scenari
Slide 33: Demand
Demand ● Majority of lithium continues to be used World Historical and Forecast consumption of lithium by end-use For personal use only for lower value industrial applications (glass, ceramics etc.) ● Recent growth largely from rechargeable battery market (e.g. mobile phones, laptops) ● New technolo
Slide 34: Lithium Supply
Lithium Supply Production of lithium by country For personal use only ● Lithium supply totalled 168,000 LCE in 2012 ● Global supply is dominated by the “big four” that supply ~82% (Talison Lithium, SQM, Albemarle and FMC) ● Talison (now owned by Tianqui and Albermarle) is now largest supplier of Lit
European Lithium — Investor Presentation (November 2017) on 6ix