Ioneer Limited · ASX:INR
Ioneer — RIU Resources Round-up Conference 2021
21 slides from Ioneer's conference presentation, May 6, 2021
Slide 1: Rhyolite Ridge Project: US Source of Lithium & Boron
RHYOLITE RIDGE PROJECT US SOURCE OF LITHIUM & BORON FOR A SUSTAINABLE FUTURE RIU Resources Round-up Conference Sydney, 6 May 2021 ASX: INR www.ioneer.com 1
Slide 2: Disclaimer and Competent Persons Statement
This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and In respect of Mineral Resources and Ore Reserves referred to in this presentation and previ
Slide 3: Capital Structure and Share Price Performance
Capital Structure Share price performance (As at 5 May 2021) SHARES OUTSTANDING 1.90B PERFORMANCE RIGHTS AND 76.4m OPTIONS OUTSTANDING CASH BALANCE A$89.5m (March 2021 Quarter end) SHARE PRICE ASX A$0.36 Shareholders MARKET CAPITALISATION A$691.7m Insider Ownership (26 February 2021) 7.0% Top 50 Own
Slide 4: Board of Directors and Management Team
Board of Directors Management Team JAMES D. CALAWAY ALAN DAVIES Executive Chairman Non-executive Director BERNARD ROWE FORMER: FORMER: Managing Director Non-exec chairman of Chief Executive, Energy & Orocobre Ltd Minerals of Rio Tinto IAN BUCKNELL BERNARD ROWE ROSE McKINNEY-JAMES CFO & Company Manag
Slide 5: Developing Highly Strategic U.S. Lithium Project
Developing Highly Strategic U.S. Lithium Project World Class Committed to Right Location Asset Sustainability • Strong project economics • Expected to be one of the • Poised to become a major resilient across a wide range first major lithium suppliers supplier of critical materials of commodity pric
Slide 6: DFS Economics: NPV, IRR, Revenue and EBITDA
Annual Lithium After-tax NPV Unlevered After Hydroxide: (8% real): Tax IRR 22,000 ~US$1.3B ~21% Tonnes Years 4-26 Annual Boric Annual Revenue Annual EBITDA Acid: US$422M US$288M 174,400 (Split ~70% Li & 30% B) Tonnes Years 1-26 Note: The DFS base case lithium carbonate equivalent (LCE) prices averag
Slide 7: 2020 LCE All-in Sustaining Cash Cost Curve
2020 LCE All-in sustaining cash cost curve (US$/metric tonne) global producers $10,000 ioneer Brine Mineral $9,000 $8,000 $7,000 $6,000 US$ LCE $5,000 $4,000 $3,000 $2,000 $1,000 $0 0 100 200 300 400 1,000 Metric Tonnes Note: Roskill for all producing lithium brine and mineral operations shown on th
Slide 8: Boric Acid Credit Offsets Lithium Carbonate Cost
Assuming US$11,000/tonne Lithium Carbonate and US$710/tonne Boric Acid $18,000 $16,000 $14,000 Margin: $12,000 Lithium Revenue: US$8,490 US$11,000 $10,000 $8,000 All-in sustaining cash cost: US$2,510 $6,000 $4,000 Boric Acid Total Product Cost: Boric Acid Revenue: Credit: US$8,186 $2,000 US$5,676 US
Slide 9: Large Mineral Resource, Ore Reserve and Long Life
Large Mineral Large Ore Resource Reserve Sedimentary Basin 146.5M 60.0M Process Plant OPEN Tonnes Tonnes Total Ore Resource Area Long Life Mined Overburden of Mine Storage 63.8M Over 26 Years OPEN Tonnes Spent Ore Storage Opportunity to expand Resource with further Quarry drilling: Stage 1 OPEN • Re
Slide 10: Over 300ktpa of Lithium Demand Anticipated by 2030
>300ktpa of Lithium demand anticipated by 2030 – to supply the world’s 2nd largest car fleet U.S. Demand: • Eight U.S. megafactories in the pipeline to 2024, three are already operational • Benchmark Minerals estimates that these IM3 megafactories will be producing 125GWh of cells LG CHEM New York M
Slide 11: Low Emissions, Low Water Usage, Small Footprint
Majority of on-site power will be met with CO2-free Low emissions energy production, low greenhouse gas emissions. Mobile equipment meets Tier 4 EPA standards. Project design implements best-in-class water Low water usage utilization while recycling the majority of water usage. Expected to use 30x l
Slide 12: Permitting and Construction Timeline
Q1 21 Q2 21 Q3 21 Q4 21 Q4 23 • Expected Permit • Major contracts in • Major contracts in • Anticipated • Mechanical Issuances: negotiation negotiation Record of Decision completion (ROD) o Water Pollution • Register of Notice • Complete • Commission plant Control Permit of Intent (NOI) financing •
Slide 13: On Track to Be Construction Ready by Q4 2021
ON TRACK TO BE CONSTRUCTION READY BY Q4 2021 ~50% ENGINEERING COMPLETED FOLLOWING RELEASE OF DFS IN EARLY 2020 FULL SIMULATION PILOT PLANT THROUGH TO Li CARBONATE AND HYDROXIDE ENVIRONMENTAL BASELINE STUDIES COMPLETED AND ACCEPTED BY BLM BINDING OFFTAKE AND SALES AGREEMENTS FOR MOST BORON PRODUCTION
Slide 14: Contact Details
Bernard Rowe Jane Munday / Megan Moore Grace Altman ioneer Ltd FTI Consulting FTI Consulting Managing Director Investor & Media Relations Investor & Media Relations (Australia) (U.S.) T: +61 419 447 280 T: +61 488 400 248 / T: +1 917 208 9352 + 61 434 225 643 E: browe@ioneer.com E: jane.munday@ftico
Slide 15: Thank You
THANK YOU. Providing the materials for a sustainable & thriving planet. For more information please contact: info@ioneer.com www.ioneer.com
Slide 16: Rendered DFS Engineering Model
Rendered DFS Engineering Model Sulphuric Evaporation/ Lithium Carbonate Acid Plant Vat Leach Plant Crystallization Circuit Ore Handling/ Sizing and Storage Power Plant Sulphur Lithium Hydroxide Supply Circuit (Year Four) Reagents Plant Utilities Boric Acid Circuit www.ioneer.com 16
Slide 17: Project Funding Through Strategic Partnering, Debt and Equity
Project funding through a combination of strategic partnering, debt and equity US$’m Mine $13.6m Project Financing Update Equity • Strategic partnership is central to the funding solution and currently in advanced discussions Spent Ore Storage facility $17.4m with a range of strategic players who wo
Slide 18: Targeting First Lithium Offtake Agreement in 1H 2021
Targeting first lithium offtake agreement in 1H 2021 Lithium Offtake Strategy Status Update ioneer is targeting the following: • Continuing to advance discussions with several • Diversified cathode battery manufacturers and Tier 1 global counterparties industrial users (glass) • Targeting first offt
Slide 19: Production vs Offtake
PRODUCTION VS OFFTAKE ASIAN DISTRIBUTOR TERRITORIES Binding Offtake Non-binding Offtake Remaining Offtake 250 200 Boric Acid '000 Mt 150 100 50 0 1 2 3 4 5 6 7 8 9 10 Production Year Boric Acid Sales: • Five-year Binding Boric Acid Offtake supply agreement signed with Dalian Jinma Boron Technology f
Slide 20: EPCM and Contractors
EPCM Evaporation and Crystallization Acid Plant Material Handling Haulage System Automation Solutions Controls Mining Pilot Plant Spent Ore Environmental Leaching www.ioneer.com 20
Slide 21: Rhyolite Ridge Total Ore Reserve Almost Quadrupled to 60 Million Tonnes
• Rhyolite Ridge total Ore Reserve almost quadrupled to 60 million tonnes (mt) • Approximately half of the Ore Reserve is classified as Proved • Boron grades increased by 26% in the total Ore Reserve, significantly lifting boric acid production • Ore Reserve provides 94% of tonnes in current 26-year