Core Lithium Ltd · ASX:CXO
Core Lithium — Investor Presentation (July 2021)
32 slides from Core Lithium's investor presentation, Jul 26, 2021
Slide 1: Australia's Next Lithium Producer
Australia’s Next Lithium Producer Definitive Feasibility and Scoping Studies Investor Presentation 26 July 2021
Slide 2: Important and Cautionary Notes
Important and Cautionary Notes This presentation has been prepared by Core Lithium Ltd (“Core”, “Company”) and provides a general overview of the Forward‐looking Statements Company and its strategy. This presentation does not purport to be all-inclusive or to contain all the information that you or
Slide 3: Australia's Next Lithium Producer
Australia’s Next Lithium Producer At the forefront of new global lithium production ▪ Australia's most advanced new lithium mining project, 88km by sealed road to Darwin Port ▪ Construction-ready, Low-risk in Tier 1 Jurisdiction with Government approvals in place ▪ Binding offtake with Yahua (75ktpa
Slide 4: Core's Corporate Strategy
Core’s Corporate Strategy Create value and contribute to the global energy transformation through growth and vertical integration Stage 1 Stage 2 Stage 3 • Construct Finniss lithium mine and • Produce and market begin production of spodumene lithium fines by-product3 concentrate1 • Develop downstrea
Slide 5: Development of Finniss is Well Timed!
Development of Finniss is Well Timed! Core is construction-ready, with current prices at US$850/t and a significant supply deficit forecast Spodumene Prices (US$/t, 6% Li2O, CFR)3 Lithium Chemical Market Balance (kt LCE)2 Lithium prices are up strongly in 2021: Lithium market is in a state of “perpe
Slide 6: Delivering Value and Growth
Delivering Value and Growth Stage 2 Potential Expansion + The Finniss Lithium Project has strong economics with valuation upside Stage 3 Potential Lithium Hydroxide Stage 1 DFS + Extension SS* Stage 1 DFS + incl. Lithium By-Product Extension Scoping Study (ESS)* Stage 1 DFS* Pre-Tax NPV8 Pre-Tax NPV
Slide 7: Corporate Information
Corporate Information Share Price (Last 12 Months) Capital Structure $0.40 150m Share Price (as at 21 July 2021) A$0.235/sh 120m Shares on Issue 1,174.1M $0.30 90m Market Capitalisation ~A$276M $0.20 60m Unlisted Options and Performance Rights 127.8M $0.10 30m Cash (31 March 2021) A$41M $0.00 0m Ent
Slide 8: Experienced Board & Management Team
Experienced Board & Management Team Experienced management team with development and operational mining experience and skills Greg Stephen Heath Malcolm Blair Simon English Biggins Hellewell McComas Duncan Iacopetta Non-Executive Chairman Managing Director Non-Exec Director Non-Exec Director Chief O
Slide 9: ASX Listed Peers - Market Capitalisation
Australia’s Next Lithium Producer ASX Listed Peers - Market Capitalisation (A$m) 5,000 3,000 On the path to production… 2,000 1,000 - Pilbara Orocobre Galaxy Liontown Piedmont Vulcan Ioneer AVZ Sayona Core Prospect European Infinity Minerals Resources Resources Lithium Energy Minerals Mining Lithium
Slide 10: Stage 1 DFS Results
Stage 1 DFS Results Strong project economics, low start-up capex and globally competitive operating costs Ore Mined Mine Life First Production Average Production 7.4Mt @ 1.3% Li2O 8 years 2022 173ktpa @ 5.8% Li2O Start-Up Capex1 Commodity Price2 C1 Operating Costs3 Pre-Tax Free Cash Flow A$89m US$74
Slide 11: Stage 1 Extension Scoping Study
Stage 1 Extension Scoping Study Increased production and a further 2 year potential mine life extension with inclusion of Inferred Resources Extension Scoping Study based on mining of Inferred Resources Concentrate Production (kt) at Grants, BP33, Carlton and Hang Gong Extension 193 Metric DFS2 Scop
Slide 12: This Is Just the Beginning …
This Is Just the Beginning … The recently announced Exploration Target has the potential to significantly add Mineral Resource tonnes, and support further extensions and potential Stage 2 Expansion of Finniss Concentrate Production (kt) Million tonnes Li2O (%) Exploration Low High Low High Target 9.
Slide 13: Significant Exploration and Expansion Upside
Significant Exploration and Expansion Upside Well-funded and with recent acquisitions to accelerate Reserve and Resource growth, and potential Stage 2 capacity expansion Ore Reserves Grants BP33 7.4Mt Carlton Hang Gong Mineral Resources Grants - BP33 - Carlton - Significant 14.7Mt Hang Gong - Sandra
Slide 14: Simple DMS Process & High Quality Concentrate
Simple DMS Process & High Quality Concentrate Simple processing means lower cost and low start-up risk Simple DMS (gravity) produces high quality product Grants Open Cut Mine ✓ +99% of lithium is spodumene ✓ Large spodumene crystals liberate at 6mm coarse crush ✓ Simple mineralogy – dense spodumene
Slide 15: Lithium Fines By-Product Upside Potential
Lithium Fines By-Product Upside Potential Lithium fines by-product potentially reduces opex and provides a waste stream management solution Lithium Fines Scoping Study – Stand-alone Economics Fines Price (FOB)1 US$65/t Production Rate 110,000tpa C1 Operating Costs2 US$21/t Grants Open Cut Mine Initi
Slide 16: Low Capital Intensity & Low Risk
Low Capital Intensity & Low Risk One of the world’s most capital-efficient lithium mining projects Start-up Capital Intensity (US$/tpa)1,2 Rose (Ontario) 2,157 Kathleen Valley (WA) 1,251 Authier (Quebec) 835 Manono (DRC) 779 Mina do Barroso (Portugal) 777 James Bay (Quebec) 739 Goulamina (Mali) 445
Slide 17: Close to Darwin Port & Capital City Infrastructure
Close to Darwin Port & Capital City Infrastructure Infrastructure advantages means lower operating and capital costs ▪ Darwin Port is 88km by sealed road – Australia’s closest port to China Middle Arm ✓ Binding agreement with Darwin Port to export up to 250ktpa of conc. Potential LiOH Plant ✓ Existi
Slide 18: Potential to Join Tesla Supply Chain
Potential to Join Tesla Supply Chain Yahua recently signed a 5-year battery-grade lithium hydroxide supply deal with Tesla ▪ Core has binding offtake to supply 75,000tpa to Yahua for 4 years (approximately 40% of Core’s Stage 1 production)1 ▪ Yahua recently announced a production expansion from 20,0
Slide 19: ESG Credentials in Focus
ESG Credentials in Focus Core is committed to operating in a safe and sustainable manner, which means operating responsibly. • Lithium production has a fundamental role to play in shaping the global energy future, as we transition to a low carbon economy • We prioritise the health and safety of our
Slide 20: The Core Lithium Advantages
The Core Lithium Advantages Our Finniss Lithium Project presents a range of ESG advantages Small operational Aligned Scope 1 and 2 Reduced Scope 3 Hydropower energy Contributing to a low- footprint emissions emissions storage carbon energy future A combination of open cut and Finniss aligns well whe
Slide 21: Government Support
Government Support Major Project Status (MPS) for the Finniss Lithium Project is another major milestone Federal Government Support • Major Project Status - Finniss is of strategic significance to Australia • Federal financing support opportunities in the form of: ✓ Major Projects Facilitation Agenc
Slide 22: $6M Federal Grant to Produce Battery Grade LiOH
$6M Federal Grant to Produce Battery Grade LiOH Test work on spodumene concentrate from Finniss has produced battery-grade lithium hydroxide (LiOH) • Core recently awarded $6 million Modern Manufacturing Initiative (MMI) Grant by the Australian Federal Government • Follows successful conversion test
Slide 23: Indicative Project Timeline
Indicative Project Timeline 2021 2022 2023 2024 +2025 H2 H1 H2 CY CY CY Stage 1 Concentrate Production DFS release Offtake and finance FID Construction Ramp-up to commercial production Stage 2 Potential Concentrate Production Expansion Resource drilling Feasibility study and approvals Construction a
Slide 24: Appendices
El LITHIUM Appendices © OC) WN corelithium.com.au | ASX CXO
Slide 25: Stage 1 Economic Outcomes of Studies (Cumulative)
Stage 1 Economic Outcomes of Studies (Cumulative) Stage 1 DFS + Stage 1 DFS + Metrics Stage 1 DFS Extension Scoping Study + Extension Scoping Study Li Fines Scoping Study Mine Life 8 years 10 years 10 years Based on Roskill Price Forecasts1 C1 Operating Costs2 US$364/t US$372/t US$349/t3 AISC4 US$44
Slide 26: Stage 1 DFS: Mine Plan
Stage 1 DFS : Mine Plan Ore Mined (kt) & Grade (%) 1,500 3.0% 1,326 2.6% 1,177 1,200 1,101 1,088 2.2% 900 849 842 1.8% 1.48% 1.47% 1.32% 1.25% 1.4% 1.13% 1.11% 600 1.40% 1.41% 553 507 1.0% 0.6% 300 0.2% - -0.2% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Grants OP Grants UG BP33 UG Carlton UG Hang Gong
Slide 27: Stage 1 DFS: Capital Costs
Stage 1 DFS: Capital Costs Core is developing one of the world’s most capital-efficient lithium projects Total Initial Capital Cost1 A$m LOM Non-Sustaining Capital Costs (A$m)2 DMS Plant 37.9 100 Start-Up Capital 90 88.9 Power & Water Supply 7.5 80 Hang Gong Pre-Strip TSF & Water Management 6.4 70 M
Slide 28: Stage 1 DFS: Operating Costs (FOB)
Stage 1 DFS: Operating Costs (FOB) Competitive operating costs ensure healthy operating margins LOM Average Unit Operating Costs US$/t1 Spodumene Price4 vs. C1 Operating Costs2 & AISC3 (US$/t, FOB) OP Mining Costs 106 1,000 UG Mining Costs 133 800 Processing 103 Haulage & Logistics 12 Strong cash ma
Slide 29: Experienced Team to Deliver a Simple Project
Experienced Team to Deliver a Simple Project High Quality Project and Execution Team 29
Slide 30: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves JORC (2012) Resource and Reserves Mineral Ore Reserves Classification Ore Grade Contained Classification Ore Grade Contained Resources Deposit Mt LiO2 % LiO2 Kt Deposit Mt LiO2 % LiO2 t Open pit Measured 1.96 1.50 29,500 Proved 1.8 1.5 26.4 Indicated 0.60 1.50 9,00
Slide 31: Capex Intensity Benchmarking – Data Sources
Capex Intensity Benchmarking – Data Sources • Rose Lithium-Tantalum: As per 13 July 2021 Company Presentation “Company Investor Presentation (July 2021) (pg 35) and as per 29 November 2017 TSX announcement “Rose Lithium-Tantalum Project - Feasibility Study NI 43 101 Technical Report” (pg 200) • Kath
Slide 32: Thank you
Thank you Authorised for release by the Board of Core Lithium Ltd For more information: Stephen Biggins, Manager Director : +61 8 8317 1700 Core Lithium Ltd Level 1, 366 King William Street, Adelaide For broker and media enquiries: Fraser Beattie: +61 421 505 557 Cannings Purple