Nh3 Clean Energy Limited · ASX:NH3
Nh3 Clean Energy — Investor Presentation (July 2019)
34 slides from Nh3 Clean Energy's investor presentation, Jul 24, 2019
Slide 1: July Corporate Presentation
ASX ANNOUNCEMENT 24 July 2019 JULY CORPORATE PRESENTATION Hexagon Resources Limited’s (ASX: HXG, Hexagon or the Company) July Corporate Presentation follows. A copy is also available on the company’s website. Michael Rosenstreich Managing Director For further information please contact: Mike Rosenst
Slide 2: Building a premium-quality graphite business
Building a premium-quality graphite business July 2019 www.hexagonresources.com ASX: HXG
Slide 3: Important Notices
Important Notices DISCLAIMER The purpose of this presentation is to provide background information to assist in obtaining a general understanding of the Company's proposals and objectives. This presentation may contain some references to forecasts, estimates, assumptions and other forward looking st
Slide 4: Important Notices – Competent Persons Attributions
Important Notices COMPETENT PERSONS ATTRIBUTIONS Exploration Results and Mineral Resource Estimates The information within this report that relates to exploration results, Exploration Target estimates, geological data and Mineral Resources at the McIntosh and Halls Creek Projects is based on informa
Slide 5: Clear Business Strategy
Clear Business Strategy To build a world-class graphite company focused on supplying high-margin processed material to end users Energy Storage • Tier-1 jurisdictions for upstream graphite projects (Australia and contiguous USA) • High-quality graphite sources with well Electric Cars understood and
Slide 6: Clear Business Strategy – Key milestones achieved
Clear Business Strategy Key milestones achieved 1. Upstream development – natural flake graphite sources Australia – McIntosh Graphite Project in Western Australia • Positive PFS completed. Feasibility Study in progress • MRE of 23.8 mt @ 4.5% C (JORC) with large flake endowment • Fully funded to de
Slide 7: Graphite Market 101
Graphite Market 101 Key elements Synthetic Graphite Synthetic Graphite • Precursor material is a by-product from petroleum (+coal) refining (petcoke + other varieties) • Produced by “graphitisation process” – involves heating for ~3 weeks at 2,500 to 2,800 °C; synthetic graphite quality is related t
Slide 8: Graphite Market 101
Graphite Market 101 A highly fragmented market, dominated by China Global Consumption of graphite by major Global World: Estimated consumption of natural and applications, 2017 (2.41 Mt)1 synthetic graphite by region, 2017 (kt)1 Significant graphite demand drivers over next 10 years: • Battery deman
Slide 9: Graphite Target Markets for Hexagon
Graphite Target Markets for Hexagon Depth and growth in energy storage and industrial sectors Batteries: mobile & stationary storage Hexagon is focused on high-growth, deep markets for natural graphite in: Batteries – Electric vehicles (EV) & stationary storage (SS) • Anode – lithium-ion batteries (
Slide 10: Graphite Target Markets – Strong Demand Growth
Graphite Target Markets – Strong Demand Growth Major constraints down the supply chain (e.g. lithium-ion batteries) Key issues 1. Supply Concentration – China currently produces 100% of all LiB Emerging Downstream Processing Capacity anodes using domestic and increasing levels of imported graphite o
Slide 11: Presentation Outline
Presentation Outline Follow the supply chain Work in Progress Presentation Outline Upstream (Natural Graphite Business) • McIntosh Project & Joint Venture – Australia • Ceylon Graphite Project – USA Downstream (Advanced Particle Business) • Process Flowsheet • Products – premium quality • Financial
Slide 12: Upstream – McIntosh Project
Upstream – McIntosh Project Located in a stable, established world-class mining region Current Mineral Resources JORC Tonnes Contained TGC (%) Classification (Mt) Graphite (kt) Total Indicated & 23.8 4.5% 1.1 Inferred Full Mineral Resources Table & Location Plan in Attachment 2 • 81% in Indicated ca
Slide 13: Upstream – McIntosh Project
Upstream – McIntosh Project Planned – conventional open-pit mines & flotation concentrator Upstream: multi open-pit mining, simple flotation at c. 2.4M tpa to produce c. 100,000 tpa of high-grade (97-98% C) graphite concentrate, likely across 3 flake sizes, subject to completion of Feasibility Study
Slide 14: Upstream – McIntosh Project
Upstream – McIntosh Project Funded by ASX-listed Mineral Resources Limited (ASX:MIN) Earn-in Joint Venture Funding • Hexagon’s JV partner Mineral Resources Limited (MRL) is a leading mine operator with a focus on battery minerals lithium and graphite in Western Australia; $2.8B market cap • The firs
Slide 15: Graphite is not a commodity
Upstream – McIntosh Project Graphite is not a commodity Specifications and value for GOLD, LEAD, COPPER (i.e. commodities) are clear and well known Quality and value for GRAPHITE needs to be repeatedly demonstrated through extensive test work McIntosh natural flake graphite has a unique range of tec
Slide 16: Upstream – Alabama Graphite Belt
Upstream – Alabama Graphite Belt Hexagon owns an 80% interest in Charge Minerals LLC “The heart of Coal Country is on the verge of becoming the backbone for America’s green-energy future” 15
Slide 17: Hexagon's Alabama Initiative
Hexagon’s Alabama Initiative Alabama is a major high-tech manufacturing state Jan. 25 2019: HUNTSVILLE, • There is NO domestic US natural graphite production (US imports all graphite) Alabama – Space flight company Blue Origin this morning kicked off • A critical mineral, graphite has numerous nonsu
Slide 18: Upstream – Alabama Graphite Belt
Upstream – Alabama Graphite Belt A potential fast track to market and brand acceptance Charge Minerals LLC • Aspiring strategic supplier of Sourced-in-USA flake graphite from the historic ‘Alabama Graphite Belt’ • 2 Mine Lease Agreements which includes the historic Ceylon Mine (600 kt of production)
Slide 19: Downstream Graphite Processing
Downstream Graphite Processing Before - 97.5% Wt C Hexagon is looking to develop a standalone advanced downstream graphite processing business – The Advanced Particle Business After – 99.9998% Wt C 18
Slide 20: Advanced Particle Business – Innovation
Advanced Particle Business – Innovation Low-cost purification establishes a high-yielding, diverse flowsheet Purification 1st stage Initial planned output: A diverse, high- purity, high-value product range Initial processing focus will be on milling, classification and shaping (spheroidisation), con
Slide 21: Advanced Particle Business
Advanced Particle Business Innovative downstream flow sheet leveraging off HXG’s clean flake Before - 97.5% C 99.9998 wt.% C was achieved by a thermal purification technology • Price Premium 99.999% C (5Ns) is nuclear-grade purity Battery-grade purity (>99.95% C) consistently command highest pri
Slide 22: Advanced Particle Business
Advanced Particle Business The comparative advantage of Hexagon’s flowsheet Before - 97.5% Wt C HXG’s modified flowsheet – refining first; because it is low cost and results in high yield to high value products After – 99.9998% Wt C 21
Slide 23: Advanced Particle Business – Diverse Products
Advanced Particle Business – Diverse Products Recent testwork demonstrates range of premium high-end products Battery Line Industrial-Tech Line Expandable Line Examples: US$/t Examples: US$/t Examples: US$/t • CEM – $3,000 to $19,000 (std to Precursor material for: Expandable precursor: Prem) • Coat
Slide 24: Advanced Particle Business – Tier 1 jurisdictions
Advanced Particle Business – Tier 1 jurisdictions Two sites considered: USA and Australia Ideally plant site is close to either the upstream Natural Graphite Consumption* North America. 73 kt source or the major downstream customer Europe 106 kt South America. 77 kt Major considerations are powe
Slide 25: Advanced Particle Business
Advanced Particle Business Scoping Study* estimates – robust staged graphite business outline Financial Highlights Geraldton (Australia) Chelan County (USA) • A standalone business sourcing feedstock Pre-tax NPV (10% discount) A$0.88 to A$1.20 Billion A$0.92 to A$1.24 Billion from third parties or p
Slide 26: Hexagon is focused on offtake and funding
Hexagon is focused on offtake and funding Strong marketing engagement in Asia and USA Product Marketing • Asia – Hexagon has established direct market contacts in Japan, Korea, Taiwan, and China • USA – Increasing focus through “Made & Sourced in the USA” initiative • Engaged (under NDAs) with major
Slide 27: Hexagon Corporate Snapshot
Hexagon Corporate Snapshot An Australian listed graphite company ASX Code HXG 0.25 HXG Share Price 30 June 2018 - 30 June 2019 2500000 Shares on Issue 291.8M 0.2 2000000 Options on issue 24.4M (unlisted) Volume Shares Traded 0.15 1500000 A$ Price/Share Share price (4 July 2019) A$0.10 0.1 1000000 12
Slide 28: Key Milestones
Key Milestones What’s on the White Board? Catalysts for Investors in 2019 • McIntosh JV – Feasibility Study updates • Ceylon Graphite – sampling results and metallurgical tests • US concentrate marketing – offtake • Electrodes testwork results • Offtake agreements • Piloting of EFB furnace • Advance
Slide 29: Why Hexagon?
Why Hexagon? as an investment or as a supplier of premium graphite materials Building a world-class graphite company focused on supplying high-margin processed material to end users: Natural Flake Graphite Business (Upstream) • High quality graphite source – McIntosh Project • Funded - potentially f
Slide 30: Hexagon Resources Limited
Hexagon Resources Limited www.hexagonresources.com CONTACT Mike Rosenstreich Managing Director info@hexagonresources.com +61 (08) 6244 0349
Slide 31: Appendices
Appendices Before - 97.5% Wt C A1. Strong Graphite Demand growth A2. McIntosh Mineral Resource Estimate A3. McIntosh Exploration Target Estimate 30
Slide 32: A1. Strong Graphite Demand Growth
A1. Strong Graphite Demand Growth Looking at just one graphite use – LiB, but a major growth driver To meet just the LiB demand in: 2019: 200,000 MWh of LiB Demand, requiring • ~100kt of natural flake anode1 • From ~200kt of natural flake concentrate2 2,000,000 2029: 2,000,000 MWh of LiB demand, req
Slide 33: Appendix 2: McIntosh Mineral Resource Estimate
Appendix 2: McIntosh Mineral Resource Estimate McIntosh Flake Graphite Project Mineral Resource as at 5 April, 2019 Location Plan – McIntosh Mineral Resources. Background is EM reported by deposit and above a 3% TGC cut-off grade. conductors from VTEM and Xcite surveys As per ASX Report dated 5 Apri
Slide 34: Appendix 3: McIntosh Exploration Target
Appendix 3: McIntosh Exploration Target McIntosh Flake Graphite Project Exploration Target as at 5 April, 2019. Location Plan – McIntosh Exploration Targets* as reported to ASX As per ASX Report dated 5 April, 2019. 5 April, 2019. *Cautionary Statement: The potential quantity and grade of the Explor