Neometals Ltd · ASX:NMT
Neometals — RIU Explorers Conference 2017
43 slides from Neometals's conference presentation, Feb 23, 2017
Slide 1: The Evolution of Lithium
For personal use only The Evolution of Lithium ™ 23 February 2017 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: For personal use only
3 For personal use only + = + =
Slide 4: Current Strategy
Current Strategy For personal use only • Increased Mt Marion production plan 60% to 50kt LCE from original design, now moving to 60kt LCE • Advanced project to add value to offtake rights with LiOH MOU • Completed Scoping Study on co- owned process to recover Cobalt from phone/laptop batteries • Sec
Slide 5: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug ’16 Today we have renewed A$5M/5% on market buyback 5
Slide 6: Human & Financial Capital
Human & Financial Capital For personal use only ASX CODE: NMT OTC:RDRUY 12 MONTH SHARE PRICE Last close (22‐Feb‐2016) A$ 0.37 60 Shares on issue m 563 50 40 Market capitalisation A$m 208 30 Net Cash (30‐Sept‐2016) A$m 61.2 20 Listed Investments A$m 9.5 10 0 DIRECTORS/MANAGEMENT Jul-15 Oct-15 Jan-16
Slide 7: Operating structure
Operating structure For personal use only Neometals Ltd (ASX:NMT) LITHIUM TITANIUM 13.8% 70% 100% 100% 100% 43.1% Reed Reed Australian Mineral Advanced Urban Mining Alphamet Industrial Management Titanium Resources Ltd Minerals Materials Pty Ltd Pty Ltd Pty Ltd Pty Ltd Pty Ltd Ganfeng 25% Lithium Co
Slide 8: For personal use only
8 For personal use only + = + =
Slide 9: Evolution of our Lithium Business
Evolution of our Lithium Business For personal use only • Commercialise Mt Marion • Evaluating Conventional Downstream Processing • Co-developed, Evaluated, Patented New ELi® Process • Co-developed, Evaluated, Patent Pending ELi ® for brines • Testing and Evaluating Lithium-Ion Battery Recyc
Slide 10: Mt Marion Lithium Operation
For personal use only Mt Marion Lithium Operation 13.8% Neometals Ltd 43.1% Ganfeng Lithium 43.1% and Operator Mineral Resources Ltd (ASX:MIN) + = 10
Slide 11: Globally Significant Resource & Production
Globally Significant Resource & Production – 400,000t concentrates cont. 60kt LCE by YE For personal use only + = 11
Slide 12: World's largest lithium concentrator
World’s largest lithium concentrator For personal use only + = 12
Slide 13: Beneficiation – Stockpiling Finished Product
Beneficiation – Stockpiling Finished Product For personal use only + = 13
Slide 14: Outstanding Offtake Partner/Terms
Outstanding Offtake Partner/Terms For personal use only China’s leading, most profitable lithium producer Life-of-Mine, Take-or-pay Offtake Agreement From 1 July moving to floor price (fixed) + LCE linked formula Letter of Credit (100% payment on shipping) Ability for MIN/Neometals to take
Slide 15: Downstream processing: Kalgoorlie Lithium Refinery Project
For personal use only Downstream processing Kalgoorlie Lithium Refinery Project MoU with Mineral Resources Ltd
Slide 16: Strategy – increase margin through downstream processing
Strategy – increase margin through downstream processing For personal use only
Slide 17: Direct exposure to strong demand for Lithium Compounds for batteries
Direct exposure to strong demand for Lithium Compounds for batteries For personal use only
Slide 18: Commercialisation Plan
Commercialisation Plan For personal use only • Locate plant in Goldfields to minimise transport, 7t concentrates needed for 1t of Lithium Hydroxide • Utilise local workforce, reagents and energy infrastructure • Use Conventional Sulfate/Caustic Flowsheet used by leading Chinese Converters • Remove t
Slide 19: Downstream processing: ELi Process
For personal use only Downstream processing ELi Process Neometals 70% Mineral Resources Ltd 30% + =
Slide 20: Adapted Patented Technology for production of LiOH from brine LiCl
Adapted Patented Technology for production of LiOH from brine LiCl For personal use only + = 20
Slide 21: ELi potentially slashes brine-based LiOH opex vs Li2CO3 causticising
ELi potentially slashes brine-based LiOH opex vs Li2CO3 causticising For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 21
Slide 22: Downstream processing: Lithium Battery Recycling
For personal use only Downstream processing Lithium Battery Recycling Neometals 50% + =
Slide 23: Lithium-Ion Battery Recycling Strategy
Lithium-Ion Battery Recycling Strategy For personal use only Exploiting cost advantage in recovery of Cobalt from Lithium Cobalt Batteries in Consumer Electronics to develop a low-risk, long-life, high-margin operation with strong partners. + = 23
Slide 24: Primary Target – Cobalt then Lithium
Primary Target – Cobalt then Lithium For personal use only Secondary Target – Lithium, Nickel, Copper, Aluminium from EV/Stationary NCM/NCA Batteries + = 24
Slide 25: Lithium Battery Processing Facility
Lithium Battery Processing Facility For personal use only Sedgman Scoping Study Results (± 30% accuracy) Operating Costs US$4.45/lb Co (US$10k/t) Spot price US$17.80/lb Co (US$39.5k/t) Capex US$4.5M Recommendation to proceed to semi-pilot plant + = 25
Slide 26: Commercialisation Plan
Commercialisation Plan For personal use only Accelerate test work and engineering studies Obtain feed/offtake partners in parallel with above. Obtain site/approvals in parallel with • Design/procurement 16 weeks • Fabrication/construction 26 weeks • Commissioning 6 weeks + = 26
Slide 27: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 27
Slide 28: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 28 Sources: Company Reports
Slide 29: Licenced low-cost Technology
Licenced low-cost Technology For personal use only + = 29
Slide 30: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Scale Completed Beneficiation Definitive Final Pre-feasibility & Hydromet Feasibility Investment Study Test work * Study * Decision * Aug 2015 CY 2017 CY 2018 Attract JV Partner (*) Subject to Board Approval + = 30
Slide 31: Technology Licensing
For personal use only Technology Licensing Neomet Process Neometals - 25% of royalty revenues + =
Slide 32: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, used commercially for treating refractory copper-gold concentrates, adapted for titanium concentrates. + = 32
Slide 33: Sedgman Alliance
For personal use only 33 Sedgman Alliance + =
Slide 34: Third-party ore test-work underway
Third-party ore test-work underway For personal use only Premises leased by Neometals Laboratory scale set up (above) Pilot scale up (below) + = 34
Slide 35: Investment Proposition
For personal use only 35 Investment Proposition + = 35
Slide 36: Lithium: Cash, cashflow & growth options
Lithium : Cash, cashflow & growth options For personal use only 03 Potential to 02 further expand Li production and 01 13.8% share of downstream ~A$61M plus ~A$10M listed + cashflows from increased production + process plus ELi/Battery Recycling/ levels/quality and Titanium/Neomet investments pric
Slide 37: Titanium: A growth story for 2017
Titanium : A growth story for 2017 For personal use only 03 01 02 Demonstrate Pigment Quality Demonstrated Technical + Demonstrated Economic + & Obtain Strong Partners Feasibility Viability to Commercialise + = 37
Slide 38: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 01 02 Obtained Strong Partner for + Commenced third party testing + Obtain Strong Partner to Commercialise Neomet Process -Neomet Process ELi + = 38
Slide 39: Thank you
For personal use only Thank you www.neometals.com.au + = 39
Slide 40: Mineral Resource Estimate – Mt Marion
Mineral Resource Estimate for the Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 I
Slide 41: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only FS Life of Plant (LOP) 20 years Pre-production Capital cost US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 82 million Pre-tax Internal Rate of Return 51% Pre-tax NPV (12% real discount rate) US$ 481 million Payback of capital
Slide 42: Mineral Resource Estimate – Barrambie
Mineral Resource Estimate for the Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transit
Slide 43: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost [1 A$ 549 million (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)