Lithium Universe Limited · ASX:LU7
Lithium Universe — Investor Presentation (February 2025)
36 slides from Lithium Universe's investor presentation, Feb 18, 2025
Slide 1: Closing
For personal use only CLOSING
Slide 2: Mine, supply and demand: no current lithium converters
For personal use only No current lithium converters Only 100 Ktpa planned MINE SUPPLY DEMAND No lithium refining experience +40 companies Quebec +20 battery manufacturers >500Mt +1% Li2O resource 1,000GW by 2028 Canada, Brazil, Africa 850,000t LCE per year
Slide 3: The Lithium Gap: Current Conversion
For personal use only THE LITHIUM GAP CURRENT CONVERSION
Slide 4: The Lithium Gap
DOWNSTREAM | REGULATION For personal use only • Cut Chinese battery material reliance • Chinese firms ordered to exit • Trade war with US • Canada on-shoring objective hasn’t changed THE LITHIUM GAP
Slide 5: Problems Filling the Gap
PROBLEMS FILLING THE GAP For personal use only • Many failures, technical difficulties • Existing Lithium producers Experienced Operators • Relative young industry • Complex chemical business Proven Technology
Slide 6: Challenges with Lithium Conversion Plants Today
For personal use only CHALLENGES WITH LITHIUM CONVERSION PLANTS TODAY
Slide 7: Failed Canadian Li Projects
FAILED CANADIAN Li PROJECTS For personal use only North American Lithium Nemaska Lithium • Shutdown 2015 • DFS completed 2018 • Spent circa CAD 250m • Spent CAD 411 m • Produced 109 t LC • Failed to start up 2019 THE COMPETITION
Slide 8: Troubled LiOH Plants
TROUBLED LiOH PLANTS For personal use only Tianqi Kwinana LiOH Albemarle Kemerton LiOH Alkaline Pressure Leach • 8 Years so far • 5 years so far • New Technology • Capital Cost Blowout • Still <20% of design rate • Unproven • > A$1 billion • Shut trains 2,3,4 • 1995 Greenbushes 5Ktpa • Care and Main
Slide 9: Why Have These Projects Failed?
WHY HAVE THESE PROJECTS FAILED? For personal use only • Nearly all the expertise is in China • Lack of operating supervision – design • Cultural transfer a problem • Chinese batch Western continuous Our Lithium Dream Team are Operators DESIGN
Slide 10: The Lithium Dream Team
THE LITHIUM DREAM TEAM For personal use only Terry Stark Roger Pover John Loxton John Sobolewski Head of Mining Head of Processing Head of Li Refinery Chief Financial Officer Ex Galaxy GM Operations Ex Galaxy Plant Manager Ex Hatch Li Carb Plant Ex Galaxy CFO & Co Sec
Slide 11: Dream Team Track Record
DREAM TEAM TRACK RECORD Jiangsu Li Carbonate Plant For personal use only 2 Years to Commercial Production Ground Start of Project Breaking Construction Completion 21 Feb 2010 1 May 2010 6 Dec 2011 6 May 2012 (19 months) (6 months Commissioning) • Capital Cost – US$120 m • At design rate 20,000 tpa •
Slide 12: Jiangsu Lithium Carbonate Plant
For personal use only Jiangsu Lithium Carbonate Plant
Slide 13: Closing the Lithium Conversion Gap
For personal use only CLOSING THE LITHIUM CONVERSION GAP
Slide 14: Closing the Lithium Gap: Bécancour Lithium Refinery
CLOSING THE LITHIUM GAP BÉCANCOUR LITHIUM For personal use only REFINERY • Replicate the success at Jiangsu • 18,270 tpa green BG lithium carbonate plant • Bécancour, Quebec’s Battery Hub • Same flow sheet, same equipment, same suppliers
Slide 15: Good Location
GOOD LOCATION Z fs) ® © A aN «<. HIGHWAY CLOSE TO \ INFRASTRUCTURE \ - * le PORT FACILITIES
Slide 16: Good Location
GOOD LOCATION For personal use only 30,000 Spodumene Shipments Bécancour Lithium Refinery THE LITHIUM REFINERY
Slide 17: Lithium Refinery Flow Sheet
LITHIUM REFINERY FLOW SHEET Sulphuric Acid For personal use only Cooler Calciner Cooler Sulphating Hydrated Alpha Kiln Hydrated Beta Lime Spodumene Spodumene Lime Spodumene Ball Milling Water Filter Process Liquor Leaching Polishing Wash Tank Filter Mg Ca Water Alumina Precipitation Precipitation So
Slide 18: Becancour Lithium Refinery
For personal use only BECANCOUR LITHIUM REFINERY THE LITHIUM REFINERY
Slide 19: Robust Process
ROBUST PROCESS For personal use only • Refinery to process all types of spodumene • Sampled - international sources of spodumene • Imports while Canadian Li industry develops • Achieve battery grade specs 99.5% Li2CO3 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour
Slide 20: Robust DFS
BECANCOUR LITHIUM REFINERY STRONG POSITIVE For personal use only ROBUST DFS 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 21: Conservative Price Forecast
BECANCOUR LITHIUM REFINERY CONSERVATIVE For personal use only PRICE FORECAST SC6 US$1,170/t LC $20,970/t 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 22: Net Present Value
BECANCOUR LITHIUM REFINERY NET PRESENT VALUE 8% For personal use only US$ 718 MILLION 1. LU7 ASX Announcement Feb 25 – “Definitive Feasibility Study”
Slide 23: IRR and Payback
BECANCOUR LITHIUM REFINERY IRR PAYBACK For personal use only 21% 3.9 YEARS 1. LU7 ASX Announcement Feb 25 – “Definitive Feasibility Study”
Slide 24: EBITDA, Capex and Pre-Tax Cashflows
BECANCOUR LITHIUM REFINERY EBITDA CAPEX For personal use only US$ 148M US$ 549M 600,000 Quebec Lithium Refinery Pre-Tax Cashflows 400,000 200,000 - US$'000 (200,000) (400,000) (600,000) 1. LU7 ASX Announcement Feb 25 – “Definitive Feasibility Study” Capex Spodumene Costs Processing Costs Revenue Net
Slide 25: Funding Strategy
FUNDING STRATEGY For personal use only Project Ownership • Sell 49% project to 1-2 strategic partners Partner 2, 25 LU7 , 51 • Target OEM with spodumene offtake • Equity from sale injected to project • Debt and Equity of 50/50 • Appointment of debt adviser • Discussions with various banks Partner 1,
Slide 26: The Big Whys
THE BIG WHY’s For personal use only • build a plant – low price environment? WHY? • build a plant - others closing theirs? • can you compete with China? • lithium carbonate not hydroxide? LU7 LITHIUM STRATEGY
Slide 27: Counter Cyclical Strategy
COUNTER CYCLICAL STRATEGY For personal use only Why build a plant in a depressed-price environment? • Been through 3-4 lithium cycles • Prices have and will always recover • Li demand from EVs and BESS growth strong • Develop a project ready for price recovery LU7 LITHIUM STRATEGY
Slide 28: New Capacity Is Required
NEW CAPACITY IS REQUIRED For personal use only Why build a plant when others are closing theirs? • Higher costs operations being closed • Operations not performing, shutting down • New efficient capacity is required for the growth • World needs non-Chinese conversion • Build “off the shelf” conversi
Slide 29: Quebec Lithium Conversion
QUEBEC LITHIUM CONVERSION For personal use only Why can you compete with China? • Access to Cheap Green Power • Nearby feedstock - Canada, Brazil and Africa • Decrease in transport costs of spodumene • End market North America LU7 LITHIUM STRATEGY
Slide 30: Recovery Not If But When
For personal use only RECOVERY NOT IF BUT WHEN
Slide 31: Double Whammy
DOUBLE WHARMMY For personal use only • Impact of supply reduction under-estimated • Dramatic reduction 17%, 21% next year • Demand is severely under-estimated • Focus on EV’s only, BESS dark horse • 1.8 TWh of batteries - 600 GWh solar plants PRICES WILL RECOVER QUICKER THAN EXPECTED LU7 LITHIUM STR
Slide 32: Lithium Carbonate
LITHIUM CARBONATE For personal use only Lithium feedstock of choice • LFP batteries technology got better • Range and performance improved • Much safer and cheaper • Li Carb feed for LFP lithium batteries • Majority of EVs have switched to LFP batteries • BESS batteries are all LFP batteries • LFP 6
Slide 33: Project Advancements
PROJECT ADVANCEMENTS For personal use only • Application 22.5 MW electricity, Hydro Quebec • Environmental survey – no showstoppers • Co-operation with W8banaki First Nation • Previous farm land • Permitting should be straight forward THE LITHIUM REFINERY
Slide 34: Project MOUs
PROJECT MOU’S For personal use only • Exclusive supply alumina silicate to Lafarge • Canada’s largest cement producer • Supply of sodium sulphate to Africa • MOU with Polytechnique for training THE LITHIUM REFINERY
Slide 35: Investor Highlights
LITHIUM DREAM TEAM For personal use only Proven Lithium Track Record PROVEN TECHNOLOGY Derisking Lithium Conversion Technology BÉCANCOUR LITHIUM REFINERY Competitive & Closing the Conversion Gap INVESTOR HIGHLIGHTS
Slide 36: Cautionary Statements
CAUTIONARY STATEMENTS Information Required by Listing Rules For personal use only The Becancour Lithium Refinery Definitive Feasibility Study (PFS) does not rely upon estimated ore reserves / and or mineral resources. The spodumene concentrate feedstock for the proposed refinery has been assumed to
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