Slide 1: Albemarle Corporation Investor Presentation
Albemarle Corporation Investor Presentation Albemarle Announces Definitive Agreement with Mineral Resources Limited to Form Lithium Joint Venture in Western Australia Live call Monday, Dec. 17, at 9:00am ET US Toll free: +1 844 347 1034 International: +1 209 905 5910 Passcode: 9193827
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation and stated on the conference call, including, without limitation, information related to the proposed joint venture, expected sources of financing, estimated cost, management’s plans and anticipated benefits in relatio
Slide 3: Transaction Overview
Transaction Overview Deal Overview • Albemarle acquires 50% interest in the Wodgina Lithium Project from Mineral Resources Limited Wodgina (MRL) for $1.15b • Formation of 50/50 joint venture that will produce 6% W estern Australia spodumene concentrate used as feedstock to Kemerton produce battery g
Slide 4: Strategic Rationale
Strategic Rationale Marketing responsibility for 100% of lithium output enables Albemarle to continue satisfying the growing demand from customers under long-term agreements Top quartile asset in terms of quantity and quality in favorable mining jurisdiction Combines MRL’s expertise in mining and op
Slide 5: Wave II Conversion Capacity Plan Updated with Wodgina JV
Wave II Conversion Capacity Plan Updated with Wodgina JV All figures in kt LCE and represent estimates of lithium nameplate conversion capacity 350 325 MRL Lithium 300 Hydroxide 3 Hydroxide 50 250 Hydroxide 40 Hydroxide 25 200 Hydroxide 25 Lithium Hydroxide 165 20 Hydroxide 190 150 40 Lithium Carbon
Slide 6: Key Operating Terms and Responsibilities
Key Operating Terms and Responsibilities Services provided by MRL to JV MRL MRL MRL Crusher Camp/Airport Logistics Operation Services Services 50/50 Wodgina JV Albemarle markets 100% of spodumene concentrate and lithium hydroxide 50/50 50/50 ALB Mine Concentrator Marketing 50/50 LiOH Plant Customers
Slide 7: Financing and Leverage
Financing and Leverage Sources 0 $ 0 % 0 • Estimated Net Debt / Adj. EBITDA1 Excess Cash $150 12% of 2.2x in 2019 New Acquisition Debt 1,075 88% – Expect to reach 1.0x – 1.5x by Total Sources $1,225 100% 2021 – 2022 timeframe Uses $ % • Will limit significant M&A and 0 0 -- additional share buybacks
Slide 8: www.albemarle.com
NYSE www.albemarle.com \ ALBEMARLE’