Slide 1: Renascor Resources: Developing a World-Class Australian Graphite Project
Renascor Resources: Developing a World-Class Australian Graphite Project Siviour Graphite Project DFS Presentation November 2019 David Christensen, Managing Director ASX: RNU
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may include statements that could be deemed "forward-looking" statements. Although Renascor Resources Limited (the "Company") believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are n
Slide 3: Section 1: Overview
Section 1: Overview 3
Slide 4: Renascor Corporate Overview
Renascor Corporate Overview Capital Structure Share Chart Shares on issue 1,153M Performance rights 18M Unlisted options (A$0.05 exp date Dec 19) 15M Share price (8 Nov 2019) $0.013 ASX : RNU Market Cap (at $0.013/sh) $15.0M Cash (30 September 2019) $1.8M Debt (30 September 2019) Nil Enterprise Valu
Slide 5: Company Overview
Company Overview ▪ Minerals exploration and development company with a portfolio of assets in key minerals districts in South Australia ▪ Focused on development of core asset, the Siviour Graphite Project in South Australia, into a world- class graphite mining operation ▪ Project hosts one of the wo
Slide 6: Investment Highlights
Investment Highlights ✓ Perfectly positioned to help meet the graphite supply gap arising from inability of existing Future supply gap supply to meet demand driven by lithium-ion battery demand ✓ One of the world’s largest graphite Resources Low cost, world class ✓ Flat-lying deposit orientation dri
Slide 7: Section 2: Siviour Graphite Project - DFS
Section 2: Siviour Graphite Project - DFS 7
Slide 8: Project Development Summary
Project Development Summary ▪ Siviour DFS completed in November 2019 Stage 1 Stage 2 LOM considers two stages Parameters 1 Years 1 to 4 Years 5 to 10 40 years A$ US$ A$ US$ A$ US$ ▪ Stage 1: Average Annual Production 80ktpa 144ktpa 105ktpa o Production of 80ktpa, low operating Throughput run of mine
Slide 9: Siviour Graphite Deposit
Siviour Graphite Deposit High-grade portion of the Siviour Resource to be targeted in the initial phases of a 14 phase mining plan Mineral Resource Estimate Resources TGC Contained Category (Mt) (%) Graphite (Mt) Measured 15.8 8.8% 1.4 Indicated 39.5 7.2% 2.8 Inferred 32.1 7.2% 2.6 Total 87.4 7.5% 6
Slide 10: Near-Surface, Flat-Lying Ore Body
Near-Surface, Flat-Lying Ore Body Siviour’s low operating cost is due in large part to shallow, horizontal orientation of a single massive ore body that offers comparatively low mining costs This orientation facilitates a single shallow mining design that can be mined via conventional open pit minin
Slide 11: Mining Schedule
Mining Schedule Ore mined in years 1 to 10 is 98% Measured and Indicated Resource category Processing Only Renascor ASX announcement 11 November 2019, p 16. Renascor Resources Ltd | ASX: RNU renascor.com.au 11
Slide 12: Production Schedule
Production Schedule Stage 1 throughput of 825ktpa, expanding in year 5 to 1,650kpta, for a 40-year life-of mine Average processing grade during years 1 to 4 is 11% TGC, gradually decreases in years 5 to 27 from 9% TGC to 7% TGC, and from year 28 onwards 100% of the ore will be sourced from a 4.7% TG
Slide 13: Metallurgy
Metallurgy Metallurgical testing has established ability to produce high quality graphite products at low operating cost using conventional (non-chemical, non-thermal) flowsheet1 Particle Size Stage-one Stage-two Flake Weight % Annual Annual Category Microns (µm) Mesh Production Production Jumbo +30
Slide 14: Low Operating Cost
Low Operating Cost First quartile operating costs globally in mining friendly South Australia for both Stage 1 and Stage 2 Benchmark Mineral Intelligence, and Renascor announcement dated 11 November 2019, p 27. Renascor Resources Ltd | ASX: RNU renascor.com.au 14
Slide 15: Mine to Market
Mine to Market Established infrastructure in coastal South Australia provides low-cost, low-risk logistics ▪ Siviour Project is strategically located: o 8km from major highway leading to established port o 12km from main electricity grid ▪ Land rights have been secured through purchase option Renasc
Slide 16: Project Approvals
Project Approvals Project is well advanced into approvals process ▪ Mineral Lease granted o Consistent with Mineral Lease Application (MLA) ▪ Extensive environmental review completed o Three-year period of preparation and review of all potential environmental, social, economic and technical aspects
Slide 17: Strategic Engineering Partnership with Royal IHC
Strategic Engineering Partnership with Royal IHC ▪ Landmark agreement with international EPC Royal IHC Worldwide Presence contractor, Royal IHC to accelerate development of Siviour ▪ $1 million committed by Royal IHC to undertake early project works, including metallurgical test work and detailed en
Slide 18: In-principle Support from Dutch Export Credit Agency
In-principle Support from Dutch Export Credit Agency Up to ~60% of initial project capex is expected to qualify for Dutch ECA cover ▪ Letter of Interest (LOI) received for ECA cover from Dutch Export Credit Agency Atradius, the Government of the Netherlands official ECA ▪ ECA support typically suppo
Slide 19: Offtake Strategy and Status
Offtake Strategy and Status Aim is to negotiate offtake terms that support debt funding ▪ Signed a non-binding MOU in April 2018 to provide graphite concentrates to China’s Qingdao Chenyang Graphite (“Chenyang”) o Chenyang is one of the largest graphite companies in the Qingdao area of China’s Shand
Slide 20: Section 3: The Graphite Market
Section 3: The Graphite Market 20
Slide 21: Graphite and Batteries
Graphite and Batteries Graphite is a critical component in the supply of lithium-ion batteries (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 21
Slide 22: Electric Vehicle Demand is Increasing
Electric Vehicle Demand is Increasing Increased demand for lithium-ion batteries is being driven by increasing uptake of Electric Vehicles (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 22
Slide 23: Graphite Demand is Increasing
Graphite Demand is Increasing Increased graphite demand is being driven by accelerated demand for lithium-ion batteries (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 23
Slide 24: Graphite Supply and Demand Forecast
Graphite Supply and Demand Forecast Graphite flake demand is forecast to exceed supply by 2023 Start of projected supply shortage New supply needed to prevent supply shortage (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 24
Slide 25: Graphite Supply and Demand Balance -100 mesh (-150μm)
Graphite Supply and Demand Balance -100 mesh (-150μm) The greatest graphite supply deficit can be seen in the -100 mesh (-150μm) flake size ▪ High demand for lithium ion battery anode manufacture is driving the supply deficit in the -100 mesh (-150μm) flake size ▪ Siviour DFS product specification i
Slide 26: New Graphite Supply is Needed
New Graphite Supply is Needed China dominates current supply, but supply is restricted and unstable ▪ Increased domestic demand o Graphite is becoming a strategically important mineral due in large part to its use in lithium- ion batteries ▪ Supply limitations o Issues with product consistency and l
Slide 27: Graphite Supply Forecast by Country
Graphite Supply Forecast by Country Future increases in graphite demand will need to be met by suppliers outside of China (Source: Benchmark Mineral Intelligence) Renascor Resources Ltd | ASX: RNU renascor.com.au 27
Slide 28: Advantage of New Graphite Supply from Australia
Advantage of New Graphite Supply from Australia Renascor offers competitive new supply from secure jurisdiction: Australia ▪ In recent years, potential new supply has been dominated by large developments in East Africa ▪ Sovereign risk poses added challenge to securing development capital and offeri
Slide 29: Section 4: Advanced Manufacturing - Spherical Graphite
Section 4: Advanced Manufacturing - Spherical Graphite 29
Slide 30: Downstream Production of Spherical Graphite
Downstream Production of Spherical Graphite Siviour graphite concentrates can be upgraded to higher value spherical graphite The graphite supply chain from mine to lithium-ion battery anode ▪ Spherical graphite is manufactured from graphite produced at mine site through a further milling and purific
Slide 31: Supply of Spherical Graphite Dominated by China
Supply of Spherical Graphite Dominated by China China currently supply 100% of the natural flake graphite used in lithium ion battery anodes ▪ Non-Chinese battery suppliers are dependent on Chinese mines and Chinese spherical production for critical raw material ▪ Chinese supply under stress as stri
Slide 32: Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More Value from Siviour
Renascor’s Spherical Graphite PFS Demonstrates Opportunity to Unlock More Value from Siviour ▪ Spherical graphite PFS shows potential for valued-added production of spherical graphite ▪ Leverages off key comparative advantages of Siviour mine, namely low-cost and low-sovereign risk See Renascor ASX
Slide 33: Section 5: Conclusions and Next Steps
Section 5: Conclusions and Next Steps 33
Slide 34: Re-Rating Potential
Re-Rating Potential Renascor has quickly advanced the development of Siviour since its discovery in 2016 and has potential to continue to climb the value curve. Market capitalisations as of 7 Sep 19 (source: ASX reports and publicly available price information) Renascor Resources Ltd | ASX: RNU rena
Slide 35: Near-term Value Drivers
Near-term Value Drivers ▪ Strong upcoming news flow expected to include: o Offtake; With the completion of DFS, there are plans to generate customer samples for potential offtake developments in 2020 o FEED; After the DFS release the Project advances to the FEED level engineering o Regulatory; Miner
Slide 36: Timeline to Production
Timeline to Production Renascor Resources Ltd | ASX: RNU renascor.com.au 36
Slide 37: Summary
Summary ▪ Siviour DFS confirms a world-class graphite deposit ▪ One massive ore body offers consistent high-quality supply ▪ Globally competitive low-cost operations ▪ Staged project development offers fundable initial capex ▪ In-principle finance support from Dutch Export Credit Agency ▪ In paralle
Slide 38: Renascor Resources Limited
Renascor Resources Limited 36 North Terrace Kent Town, South Australia 5067 Phone: + 61 8 8363 6989 Email: info@renascor.com.au Website: www.renascor.com.au ASX Code: RNU