Lake Resources N.l. · ASX:LKE
Lake Resources N.l — ASX Small and Mid-Cap Conference 2020
24 slides from Lake Resources N.l's conference presentation, Sep 7, 2020
Slide 1: Clean High Purity Lithium
CLEAN HIGH PURITY LITHIUM For personal use only Efficient disruptive clean technology ASX Small and Mid-Cap Conference 2020 Steve Promnitz - Managing Director 9 September 2020 ASX:LKE FRA:LK1 OTC:LLKKF
Slide 2: Disclaimer
Disclaimer For personal use only General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings Certain statements contained in this presentation, including information as to the future fina
Slide 3: Clean Technology – No Mining
Clean Technology – No Mining. For personal use only • Clean Technology – Adaptation of known water treatment method; No mining • Disruptive Direct Extraction with Tech Partner, Lilac Solutions – Efficient lithium separation from salty water (brine); cost competitive vs traditional process; Technolog
Slide 4: Direct extraction – Clean Technology
Direct extraction – Clean Technology For personal use only Disruptive – No Evaporation or Mining New adaptation to known technology in water treatment • Efficient - lithium removed from brine; no evaporation • Faster, with higher recoveries • High purity products – In demand • Cost competitive and s
Slide 5: Why Lithium? Growth in Lithium Batteries; Limited New Supply
Why Lithium? Growth in Lithium Batteries; Limited New Supply From 3 to 158 Battery Megafactories in 5 years – Yet underinvestment in supply of battery materials For personal use only Megafactory growth EV Investment but no lithium supply growth 158 >US$250Bn (and takes years) Expansions delayed by m
Slide 6: Why Lithium? Future Demand Growth for Sustainable Supply
Why Lithium? Future Demand Growth for Sustainable Supply Need 18 times more Lithium Production by 2030; 60x by 2050; Growth in sustainable high quality For personal use only EU Commission Report – 3 September 2020 “Action Plan on Critical Raw Materials” Need 18 times more Lithium Production by 2030
Slide 7: Sustainable Lithium. Responsibly Sourced
Sustainable Lithium. Responsibly Sourced For personal use only Solution for more sustainable lithium in EV’s • Electric Vehicle Makers, EU Seek More Sustainable Lithium – Volkswagen, Daimler, BMW, EU want more responsible sourcing of battery materials (Reuters) • Direct extraction is not mining and
Slide 8: Sustainable Lithium. ESG Targets for the Future – EU, UN
Sustainable Lithium. For personal use only ESG Targets for the Future – EU, UN EU UN ASX:LKE OTC:LLKKF SLIDE / 8
Slide 9: Direct extraction. Disruptive Technology
Direct extraction. Disruptive Technology (3 hrs to 30-60,000ppm vs 1-2 years) Ion Exchange Process For personal use only Saves time and money - Faster production. Recoveries doubled Lilac Solutions Lower impurities – Higher purity as only lithium is extracted. Sustainable solution – Brine reinjected
Slide 10: Direct extraction – Small Environmental Footprint
Direct extraction – Small Environmental Footprint For personal use only Lilac Direct Extraction Footprint vs Brine Evaporation Ponds (Atacama) and Hard Rock Mining (Greenbushes) Evaporation - Atacama Hard Rock - Greenbushes 15 km 5 km Direct Extraction - Kachi Direct Extraction: Returns ASX:LKE brin
Slide 11: Prime Location – Next to Large Producers
Prime Location – Next For personal use only to Large Producers. ATACAMA Tianqui/SQM Albemarle Lithium Triangle: 40% of world’s lithium production at the lowest cost. Lake’s Advancing Projects 5 largest producers all have operations ALB, SQM, LTHM + Tianqui, Ganfeng Ourhas Lake projects are side- a l
Slide 12: Major brine resource - Top 10
For personal use only Major brine resource - Top10 4.4 Mt LCE Total Resource (1Mt LCE Indicated Resource; 3.4 Mt Inferred) PFS only uses 20% of resource Open at depth and laterally 11x 70,000 hectares of leases (11x Size of Manhattan Island) It’s Not About Grade – In industrial chemistry, ‘low impur
Slide 13: Kachi PFS - High Margin Pre-Feasibility Results
Kachi PFS - High Margin Pre-Feasibility Results For personal use only • Long Life, High Value Project - 25 year production 25,500 tpa LCE**; US$1050 million project value* (NPV @ 8% discount rate, Pre-tax) • High Margin Lithium Production – • 55% Operating Margin; US$465 million EBITDA in 1st 3 year
Slide 14: Cost Competitive Direct Extraction
Cost Competitive Direct Extraction Consistent High Value Low Impurity Product For personal use only Direct Extraction Kachi Project Positioned at lower end of cost curve Lithium Carbonate Pricing Range Brine – Lower Cost Hard Rock – Higher Cost ASX:LKE OTC:LLKKF Source: LKE announcements 9/1/2020, 1
Slide 15: Testing Lake's clean lithium in Batteries – Novonix
Testing Lake’s clean lithium in Batteries – Novonix State-of-the-art battery testing equipment For personal use only Novonix - leader in battery technology. Tier 1 firms - Panasonic, CATL, Samsung, SK, Apple, Bosch, Honda and Dyson Work with Dr Jeff Dahn at Dalhousie Uni - a ground breaking "name" i
Slide 16: Production Timeline
Production Timeline. For personal use only H1 - 2020 H2 – 2020 , H1 - 2021 High purity samples Kachi samples to battery makers for qualification Kachi direct extraction pilot purposes; testing by Novonix plant module – operating Kachi – offtake and strategic partner discussions Kachi PFS (Apr 2020)
Slide 17: Experienced. Extensive development experience at board level and local management
Experienced. Lake has extensive development experience – For personal use only both at the board level and local management Steve Promnitz Stu Crow Nick Lindsay Robert Trzebski MANAGING DIRECTOR CHAIRMAN NON-EXEC NON-EXEC DIRECTOR NON-EXEC DIRECTOR Extensive project management More than 25 years of
Slide 18: Lake Resources share price and market data
LAKE RESOURCES (ASX:LKE , OTC:LLKKF) LAKE RESOURCES (ASX:LKE) 1 YEAR For personal use only Share price chart Total Current Shares on Issue 777,128,624 Listed Options (10c) Jun 2021 Expiry 52,512,693 Unlisted Options (4.6c) Oct 2022 Expiry 18,300,000 Unlisted Options (8c) Feb 2022 Expiry 5,555,000 Un
Slide 19: Orior Capital – Lake 'Incredibly Undervalued'
Orior Capital – Lake ‘Incredibly Undervalued’ For personal use only • Lake Undervalued vs Peers – Robust financial metrics, advantages of direct extraction & lithium outlook: , Lake trading <2% NPV vs peers trading at around 20%; valuation of 29c per share • Compelling, Cash-Generative Project – Kac
Slide 20: Lithium Producers Recently Uplifted; Developers yet to rise
For personal use only Lithium Producers Recently Uplifted Developers yet to rise LAC LTHM Lake $27m vs Peers SLL $50-120m market cap Trading at <2%NPV 8 vs Peers 10-15% NPV 8 Research: LKE website Note: Any perceived relationship between market value of SLIDE / 20 explorers/developers versus produce
Slide 21: Clean High Purity Lithium - Unique Proposition
Clean High Purity Lithium - Unique Proposition. For personal use only • New Clean Technology for High Purity Lithium – Growing need • Responsibly Sourced & Sustainable - Growing demand from EV makers, EU guidelines – Enables a clean future; One of few new sustainable lithium suppliers • 21st Century
Slide 22: Appendix - PFS Compelling Economics; High EBITDA Margin
PFS - Kachi. Appendix - PFS Compelling Economics; High EBITDA Margin For personal use only Cost Competitive; High Value Product Key Financial Parameters Values NPV8 (NPV @ 8% discount rate) Pre-tax US$1,052 million (A$1,660 million)* NPV8 (NPV @ 8% discount rate) Post-tax US$748 million (A$1,180 mil
Slide 23: Appendix – Mineral Resource – JORC Code 2012
Appendix – Mineral Resource – JORC Code 2012 For personal use only Kachi Lithium brine Project. KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resource Area, km2 17.1 158.3 175.4 Aquifer volume, km3 6 41 47 Brine volume, km3 0.65 3.2 3.8 Mean dr
Slide 24: Appendix – Table Report – JORC Code 2012
Appendix – Table 1 Report – JORC Code 2012. For personal use only ASX:LKE OTC:LLKKF SLIDE / 24 ASX: LKE SLIDE / 24
Lake Resources N.L. — ASX Small and Mid-Cap Conference 2020 on 6ix