Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Future Energy Conference and Red Cloud Oktoberfest 2021
31 slides from Lake Resources N.l's conference presentation, Oct 21, 2021
Slide 1: ASX Announcement: Presentation for Future Energy and Red Cloud Conferences
ASX ANNOUNCEMENT 21 October 2021 Presentation for Future Energy and Red Cloud Conferences 21 October For personal use only • Lake Resources invites investors to attend or listen to a replay of a virtual presentation in the Future Energy Conference, with guest speaker the Hon Angus Taylor MP, and the
Slide 2: Media contacts and About Lake Resources NL
For media queries, please contact: Nigel Kassulke at Teneo M: +61407904874 For personal use only E: Nigel.Kassulke@teneo.com Anthony Fensom, Republic PR, +61 (0) 407 112 623 , anthony@republicpr.com.au About Lake Resources NL (ASX:LKE OTC:LLKKF ) – Clean high purity lithium using efficient disruptiv
Slide 3: Direct Lithium Extraction & Project Finance - Kachi Lithium Project
20 October 2021 ASX:LKE | FRA:LK1 | OTC:LLKKF For personal use only Direct Lithium Extraction & Project Finance Kachi Lithium Project Steve Promnitz - Managing Director, Lake Resources
Slide 4: 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 with sophisticated and Certain statements contained in this presentation, including informatio
Slide 5: World's cleanest lithium. Four lithium projects in the Lithium Triangle
World’s cleanest lithium. For personal use only Four lithium projects in heart of the Lithium Triangle. Large leaseholding 2,200km2 (550,000 acres) World’s five largest producers all have equity in operations in the Lithium Triangle. Lake’s flagship project ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 3
Slide 6: Lake Resources - World's Cleanest Lithium
Lake Resources - World’s Cleanest Lithium. For personal use only 99.97% • CLEANER LITHIUM – Lake’s 99.97% purity product - far lower impurities vs 99.5% battery grade lithium carbonate. Higher purity lithium = higher battery performance. • CLEANER TECHNOLOGY: Lilac direct lithium extraction – High P
Slide 7: Direct Lithium Extraction
Direct Lithium Extraction 1st Century technology Lilac Solutions - For personal use only Cleaner technology Lilac direct extraction displaces evaporation process Brine in – Lithium chloride out • High purity • Faster process • High recovery 21st Century technology • Sustainable – No brine heating •
Slide 8: Delivers a Cleaner Environment
Delivers a Cleaner Environment Smaller environment footprint – Low Land use - Lower water use – No brine depletion For personal use only Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (1km2) Brine Returned to Source All Brine Evaporated Source: SQM / ALB presentations 2
Slide 9: Delivers a Cleaner Environment - Smaller carbon footprint
Delivers a Cleaner Environment Smaller carbon footprint – Lower greenhouse gases For personal use only Kg CO2e/kg product Li Hydroxide LCE from Hard Rock Spodumene Li Carbonate LCE from Brine 4-5 14 - 18.2 Li Carbonate LCE from Lake/Lilac DLE Also expected to be low Note: Hard Rock = Spodumene conve
Slide 10: Sustainable lithium
Sustainable lithium 20 For personal use only CO2 e Footprint Lake / Lilac DLE method CO2e/kg lithium product 15 Lithium Production • Low CO2 footprint 10 Lake / Lilac • Low water usage DLE method 5 • Low land use 0 Production type: Hard Rock Evaporation DLE Hard Rock to Li Hydroxide Brine Evaporatio
Slide 11: Partnership - Lilac Solutions + Kachi Project
Partnership- Lilac Solutions + Kachi Project Aligns Climate Tech with Upstream Lithium Supply For personal use only • Lilac to Earn in to Kachi Project up to max 25% stake – via performance based milestones ▪ Initial 10% - Lilac funds completion of testing of its technology for the Kachi Project ▪ F
Slide 12: Lilac Solutions - Lead Investors
Lilac Solutions – Lead Investors Successful Tech Investor Backing with EV supply chain participants – Recent US$150m investment For personal use only ASX: LKE OTC: LLKF SLIDE / 10
Slide 13: Kachi project. Large, scalable resource
Kachi project. Large, scalable resource For personal use only 25 years production uses 20% of resource. • Drilling to upgrade resource for expansion; resource open laterally and at depth • Kachi lease – 740 sq km (185,000 acres) • One of 10 largest brine resources globally – total JORC resource 4.4M
Slide 14: Kachi project proposed plant design
Kachi project Proposed plant design For personal use only One building with Ion Exchange Modules Replaces 20-30km2 of Evaporation Ponds ~500m Warehouse, reagents Chlor Alkali Plant Bagging Plant and storage Impurity Removal Direct Extraction (Lilac IX Plant) and water treatment F E A D C G B Lithium
Slide 15: Expansion Study
Expansion Study* Clearer pathway (to Double Production to 51,000tpa) Simple production scale-up - Modular For personal use only 51,000tpa LCE Production Scale (PFS) (50+ Modules) Lilac Pilot / 25,500tpa Demo Plant (1-2 Modules) LCE ~10tpa LCE 1000 hours * Note: Expansion Study requires drilling (und
Slide 16: Market needs 10x to 18x more lithium production by 2030
Market needs 10x to 18x more lithium production by 2030. For personal use only Battery mega-factory growth 247 battery factories planned for 2030 151 operating by end 2021 247 • Lithium added to critical raw materials 240 list for the first time in 2020 210 180 • Lithium-ion batteries represent one
Slide 17: Clearer pathway: high purity lithium tested and proven in batteries
Clearer pathway Lake’s high purity lithium tested For personal use only and proven in batteries Lake’s lithium carbonate demonstrated in batteries • Lake's product - premium battery quality • Performs like Tier 1 products in NMC622 batteries Battery technology leader (ASX:NVX; OTCQX:NVNXF) • Only 50
Slide 18: Direct extraction: premium price, very high margin
Direct extraction Premium price – very high margin For personal use only Lake premium grade LCE price US$17,000 - 25,000/t Lake’s direct US$4,100/t extraction Opex Margin Brine - US$3,750 – Margin Battery grade LCE price evaporation 4,200/t US$13,000 – 20,000/t Technical grade LCE price US$8,000 - 1
Slide 19: Kachi PFS metrics
Kachi PFS metrics Compelling economics For personal use only Pre-Feasibility Study results Mineral Resource* (Indicated) Annual production Li2CO3 Annual EBITDA Project life Expansion Study Underway 1.01Mt 25,500tpa US$260m 25+ years 51,000tpa# CAPEX Cash cost Annual operating costs Project Finance U
Slide 20: Kachi Project Finance Support
Kachi Project Finance Support UK Export Finance & Canada EDC – Export Credit Agencies Support For personal use only Expression of Interest - Funding to ~70% of Total Required – including Expansion Project Finance CAPEX Debt Duration UK Export Finance provided ~70% debt## US$544m 10-11 years* Express
Slide 21: Project Production Timeline
Project Production Timeline For personal use only 2021 – Q2, 2022 2021 – Q2, 2022 2021 – Q2, 2022 Q3,Q4 2022 DFS Demonstration Financing Construction / ESIA Plant Production Definitive Feasibility Q1,2022 Demo Plant Onsite Project Finance Mid-Late 2022 Approvals/ Study 2021-22 Samples in Batteries E
Slide 22: Corporate snapshot
Corporate snapshot Funded to FID For personal use only Share price Cash 30 June 2021 Half year share price chart A$0.63 US$0.47 A$26m ~A$60m Target Oct’21 20 Oct 2021 (10 day VWAP) 52 week high $0.76c, low $0.05c US$19.2m option convert Shares on issue Debt 1.21bn Zero Market capitalisation Unlisted
Slide 23: Significant Upside: lithium developer peers
Significant Upside For personal use only Lithium Developer Peers Market Value vs Brine Resource • Lake Trading ~35% NPV8 (w/o expansion) Developers Lake Resources Brine Resource Mt LCE vs Peers 60-100+% NPV8 1800 Standard Lithium 1600 SLI:NYSE • Lake Market Value A$760m 14 1400 vs DLE Peers at A$210
Slide 24: Cauchari project / Olaroz Project
Cauchari project / Olaroz Project Next lithium projects through development For personal use only Cauchari - Identical lithium brines as adjoining Ganfeng/ Lithium Americas development Lake’s brines being tested for direct lithium extraction Cauchari and Olaroz - Scoping study and resource drilling
Slide 25: Leadership
Leadership Board has extensive background in resources sector, backed by experienced on-site team in Argentina. For personal use only Steve Promnitz Stu Crow Dr Nicholas Lindsay Dr Robert Trzebski Sra Amalia Saenz CEO & MANAGING DIRECTOR CHAIRMAN NON-EXEC EXEC TECHNICAL DIRECTOR NON-EXEC DIRECTOR NO
Slide 26: Cleaner lithium for an electric world
CLEANER LITHIUM FOR AN ELECTRIC WORLD For personal use only • World’s highest purity lithium • Technology-led direct extraction • Major ESG benefits • New independent clean producer – at scale Steve Promnitz - Managing Director steve@lakeresources.com.au +61 2 9188 7864 lakeresources.com.au ASX: LKE
Slide 27: Appendices
Appendices For personal use only ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 25
Slide 28: Underinvestment in new supply. Price moving up.
Underinvestment in new supply. Price moving up. For personal use only Lithium battery demand 247 Megafactories operating at 100% capacity (4.5 TWh) • Lithium carbonate prices have doubled 3,000,000 over past year Lithium Battery Demand: 2030 Tonnes per annum • 8 to 18 times more lithium production 2
Slide 29: Delivers a Cleaner Environment - Lower land use
Delivers a Cleaner Environment Smaller environment footprint – Lower land use For personal use only Atacama Projects – Brine evaporation (170km2) Kachi Project – Lake/Lilac DLE (<1km2) <1km2 wide 170km 2 Source: SQM / ALB presentations 2020; 170km2 for c.80,000 tpa LCE. Lake/Lilac/Hatch estimates in
Slide 30: Mineral Resource (JORC Code 2012) Kachi Project
Mineral Resource (JORC Code 2012) Kachi Project For personal use only Lithium carbonate equivalent (LCE) Indicated Inferred Total Resource Lake Lithium Carbonate High Purity 1.0Mt 3.4Mt 4.4Mt KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resour
Slide 31: JORC Code 2012 Appendix - Kachi Project
JORC Code 2012 Appendix 1 - Kachi Project For personal use only ASX: LKE OTC: LLKKF SLIDE / 29
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