Core Lithium Ltd · ASX:CXO
Core Lithium — Investor Presentation (August 2021)
53 slides from Core Lithium's investor presentation, Aug 9, 2021
Slide 1: Australia's Next Lithium Producer
For personal use only Australia’s Next Lithium Producer Equity Raising Presentation 9 August 2021 Not for release to US wire services or distribution in the United States
Slide 2: Important and Cautionary Notes
Important and Cautionary Notes For personal use only This presentation has been prepared by Core Lithium Ltd (“Core”, “Company”) in connection with Core’s proposed equity Competent Person Statements raising of new ordinary shares in Core (New Shares) comprising: The information in this release that
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes For personal use only Forward‐looking Statements (cont.) Joint Lead Managers. To the maximum extent permitted by law, Core and the Joint Lead Managers each disclaim any liability competitive, political and social uncertainties; the actual results of current exploration
Slide 4: Important and Cautionary Notes
Important and Cautionary Notes For personal use only Disclaimer entities mentioned in this presentation for which they have received or may receive customary fees and expenses. Without No party other than Core has authorised, permitted or caused the issue, submission, despatch or provision of this l
Slide 5: Equity Raise to Fully Fund Finniss Project
Equity Raise to Fully Fund Finniss Project For personal use only Transformational equity raise secures funding as Core transitions into Australia’s next Lithium producer ✓ Transformational fully underwritten A$91m institutional placement and non-underwritten A$15m Share Purchase Plan at a price of A
Slide 6: Ganfeng Offtake & Strategic Equity
Ganfeng Offtake & Strategic Equity For personal use only Ganfeng has signed a 4-year offtake deal with Core and agreed to provide A$34 million in new equity ▪ Core has signed a binding offtake to supply 75,000tpa to Ganfeng Lithium for 4 years ▪ Offtake pricing referenced to the market price for 6%
Slide 7: Recent Milestones
Recent Milestones For personal use only Today’s equity raise builds on Core’s consistent progress towards commencing production Core acquires rights Production of battery Agreement Updated DFS for to multiple grade hydroxide signed to Finniss Stage 1, pegmatite mines from Finniss connect Finniss pat
Slide 8: Equity Raising Summary
Equity Raising Summary For personal use only Fully underwritten A$91 million Placement & non-underwritten A$15 million Share Purchase Plan Offer Size and Structure ▪ Fully underwritten A$91 million placement of approximately 293.1 million new fully paid ordinary shares (“New Shares”) to sophisticate
Slide 9: Use of Funds
Use of Funds For personal use only Funding will support Core’s transition from developer into Australia’s next lithium producer The equity raising provides funding to Core for development of Stage 1 of its Finniss Sources of Funds (A$M) Lithium Project, with proceeds (as well as existing cash on han
Slide 10: Indicative Timetable
Indicative Timetable For personal use only Key dates for equity placement and share purchase plan Event AEST, Date Record Date for Share Purchase Plan 7:00pm Friday, 6 August 2021 Trading Halt and Bookbuild Monday, 9 August 2021 Announcement of Completion of Placement Wednesday, 11 August 2021 Tradi
Slide 11: Australia's Next Lithium Producer
Australia’s Next Lithium Producer For personal use only At the forefront of new global lithium production ▪ Australia's most advanced new lithium mining project, 88km by sealed road to Darwin Port ▪ Construction-ready, Low-risk in Tier 1 Jurisdiction, with Government approvals in place ▪ Binding off
Slide 12: Core's Corporate Strategy
Core’s Corporate Strategy For personal use only Create value and contribute to the global energy transformation through growth and vertical integration Stage 1 Stage 2 Stage 3 ▪ Construct Finniss lithium mine and ▪ Produce and market begin production of spodumene lithium fines by-product3 concentrat
Slide 13: Development of Finniss is Well Timed
Development of Finniss is Well Timed For personal use only Core is construction-ready, with current prices at US$1,280/t and a significant supply deficit forecast Spodumene Prices (US$/t, 6% Li2O, CFR)3 Lithium Chemical Market Balance (kt LCE)2 Lithium prices are up strongly in 2021: Lithium market
Slide 14: Delivering Value and Growth
Delivering Value and Growth Stage 2 Potential Expansion For personal use only + The Finniss Lithium Project has strong economics with valuation upside Stage 3 Potential Lithium Hydroxide Stage 1 DFS + Extension SS* Stage 1 DFS + incl. Lithium By-Product Extension Scoping Study (ESS)* Stage 1 DFS* Pr
Slide 15: Corporate Information
Corporate Information For personal use only Share Price (Last 12 Months) Capital Structure1 $0.40 150m Share Price (as at 6 August 2021) A$0.36/sh 120m Shares on Issue 1,174.1M $0.30 90m Undiluted Market Capitalisation ~A$423M $0.20 60m Unlisted Options and Performance Rights 127.8M $0.10 30m Cash (
Slide 16: Experienced Board & Management Team
Experienced Board & Management Team For personal use only Experienced management team with development and operational mining experience and skills Greg Stephen Heath Malcolm Blair Simon English Biggins Hellewell McComas Duncan Iacopetta Non-Executive Chairman Managing Director Non-Exec Director Non
Slide 17: Australia's Next Lithium Producer
Australia’s Next Lithium Producer For personal use only ASX Listed Peers Market Capitalisation (A$m) 6,000 3,000 On the path to production… 2,000 1,000 - Pilbara Orocobre Galaxy Liontown Vulcan Piedmont Ioneer AVZ Sayona Core Prospect European Infinity Minerals Resources Resources Energy Lithium Min
Slide 18: Stage 1 DFS Results
Stage 1 DFS Results For personal use only Strong project economics, low start-up capex and globally competitive operating costs Ore Mined Mine Life First Production Average Production 7.4Mt @ 1.3% Li2O 8 years 2022 173ktpa @ 5.8% Li2O Start-Up Capex1 Commodity Price2 C1 Operating Costs3 Pre-Tax Free
Slide 19: Stage 1 Extension Scoping Study
Stage 1 Extension Scoping Study For personal use only Increased production and a further 2 year potential mine life extension with inclusion of Inferred Resources Extension Scoping Study based on mining of Inferred Resources Concentrate Production (kt) at Grants, BP33, Carlton and Hang Gong Extensio
Slide 20: This Is Just the Beginning
This Is Just the Beginning … For personal use only The recently announced Exploration Target has the potential to significantly add Mineral Resource tonnes, and support further extensions and potential Stage 2 Expansion of Finniss Concentrate Production (kt) Million tonnes Li2O (%) Exploration Low H
Slide 21: Significant Exploration and Expansion Upside
Significant Exploration and Expansion Upside For personal use only Well-funded and with recent acquisitions to accelerate Reserve and Resource growth, and potential Stage 2 capacity expansion Ore Reserves Grants BP33 7.4Mt Carlton Hang Gong Mineral Resources Grants - BP33 - Carlton - Significant 14.
Slide 22: Simple DMS Process & High Quality Concentrate
Simple DMS Process & High Quality Concentrate For personal use only Simple processing means lower cost and low start-up risk Simple DMS (gravity) produces high quality product Grants Open Cut Mine ✓ +99% of lithium is spodumene ✓ Large spodumene crystals liberate at 6mm coarse crush ✓ Simple mineral
Slide 23: Lithium Fines By-Product Upside Potential
Lithium Fines By-Product Upside Potential For personal use only Lithium fines by-product potentially reduces opex and provides a waste stream management solution Lithium Fines Scoping Study – Stand-alone Economics Fines Price (FOB)1 US$65/t Production Rate 110,000tpa C1 Operating Costs2 US$21/t Gran
Slide 24: Low Capital Intensity & Low Risk
Low Capital Intensity & Low Risk For personal use only One of the world’s most capital-efficient lithium mining projects Start-up Capital Intensity (US$/tpa)1,2 Rose (Ontario) 1,362 Authier (Quebec) 835 Manono (DRC) 779 Mina do Barroso (Portugal) 777 James Bay (Quebec) 739 Kathleen Valley (WA) 689 G
Slide 25: Close to Darwin Port & Capital City Infrastructure
Close to Darwin Port & Capital City Infrastructure For personal use only Infrastructure advantages means lower operating and capital costs ▪ Darwin Port is 88km by sealed road – Australia’s closest port to China ✓ Binding agreement with Darwin Port to export up to 250ktpa of conc. Middle Arm ✓ Exist
Slide 26: Potential to Join Tesla Supply Chain
Potential to Join Tesla Supply Chain For personal use only Yahua recently signed a 5-year battery-grade lithium hydroxide supply deal with Tesla ▪ Core has binding offtake to supply 75,000tpa to Yahua for 4 years (approximately 40% of Core’s Stage 1 production)1 ▪ Yahua recently announced a producti
Slide 27: ESG Credentials in Focus
ESG Credentials in Focus For personal use only Core is committed to operating in a safe and sustainable manner, which means operating responsibly. ▪ Lithium production has a fundamental role to play in shaping the global energy future, as we transition to a low carbon economy ▪ We prioritise the hea
Slide 28: The Core Lithium Advantages
The Core Lithium Advantages For personal use only Our Finniss Lithium Project presents a range of ESG advantages Small operational Aligned Scope 1 and 2 Reduced Scope 3 Hydropower energy Contributing to a low- footprint emissions emissions storage carbon energy future A combination of open cut and F
Slide 29: Government Support
Government Support For personal use only Major Project Status (MPS) for the Finniss Lithium Project is another major milestone Federal Government Support ▪ Major Project Status - Finniss is of strategic significance to Australia ▪ Federal financing support opportunities in the form of: ✓ Major Proje
Slide 30: $6M Federal Grant to Produce Battery Grade LiOH
$6M Federal Grant to Produce Battery Grade LiOH For personal use only Test work on spodumene concentrate from Finniss has produced battery-grade lithium hydroxide (LiOH) ▪ Core recently awarded $6 million Modern Manufacturing Initiative (MMI) Grant by the Australian Federal Government ▪ Follows succ
Slide 31: Indicative Project Timeline
Indicative Project Timeline For personal use only 2021 2022 2023 2024 +2025 H2 H1 H2 CY CY CY Stage 1 Concentrate Production DFS release Offtake and finance FID Construction Ramp-up to commercial production Stage 2 Potential Concentrate Production Expansion Resource drilling Feasibility study and ap
Slide 32: Appendix: Stage 1 Definitive Feasibility Study
For personal use only Appendix: Definitive Feasibility Study
Slide 33: Economic Outcomes of Studies (Cumulative)
Stage 1 Economic Outcomes of Studies (Cumulative) For personal use only Stage 1 DFS + Stage 1 DFS + Metrics Stage 1 DFS Extension Scoping Study + Extension Scoping Study Li Fines Scoping Study Mine Life 8 years 10 years 10 years Based on Roskill Price Forecasts1 C1 Operating Costs2 US$364/t US$372/t
Slide 34: Stage 1 DFS: Mine Plan
Stage 1 DFS : Mine Plan For personal use only Ore Mined (kt) & Grade (%) 1,500 3.0% 1,326 2.6% 1,177 1,200 1,101 1,088 2.2% 900 849 842 1.8% 1.48% 1.47% 1.32% 1.25% 1.4% 1.13% 1.11% 600 1.40% 1.41% 553 507 1.0% 0.6% 300 0.2% - -0.2% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Grants OP Grants UG BP33 UG
Slide 35: Stage 1 DFS: Capital Costs
Stage 1 DFS: Capital Costs For personal use only Core is developing one of the world’s most capital-efficient lithium projects Total Initial Capital Cost1 A$m LOM Non-Sustaining Capital Costs (A$m)2 DMS Plant 37.9 100 Initial Capital 90 3 87.5 Power & Water Supply 7.5 80 Hang Gong Pre-Strip TSF & Wa
Slide 36: Stage 1 DFS: Operating Costs (FOB)
Stage 1 DFS: Operating Costs (FOB) For personal use only Competitive operating costs ensure healthy operating margins LOM Average Unit Operating Costs US$/t1 Spodumene Price4 vs. C1 Operating Costs2 & AISC3 (US$/t, FOB) OP Mining Costs 106 1,000 UG Mining Costs 133 800 Processing 103 Haulage & Logis
Slide 37: Experienced Team to Deliver a Simple Project
Experienced Team to Deliver a Simple Project For personal use only High Quality Project and Execution Team 37
Slide 38: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves For personal use only JORC (2012) Resource and Reserves Mineral Ore Reserves Classification Ore Grade Contained Classification Ore Grade Contained Resources Deposit Mt LiO2 % LiO2 Kt Deposit Mt LiO2 % LiO2 t Open pit Measured 1.96 1.50 29,500 Proved 1.8 1.5 26.4 In
Slide 39: Capex Intensity Benchmarking – Data Sources
Capex Intensity Benchmarking – Data Sources For personal use only ▪ Rose Lithium-Tantalum: As per 13 July 2021 Company Presentation “Company Investor Presentation (July 2021) (pg 35) and as per 29 November 2017 TSX announcement “Rose Lithium-Tantalum Project - Feasibility Study NI 43 101 Technical R
Slide 40: Appendix: Key Risks
For personal use only Key Risks Appendix:
Slide 41: Key Risks
Key Risks ▪ This section discusses some of the key risks associated with an investment in shares in Core. There are a number of risk factors, specific to Core and of a general nature, which may affect the future operating and financial performance of Core, the industry in which it operates and the v
Slide 42: Key Risks
Key Risks Risks specific to Core (cont.) For personal use only Future capital The future capital requirements of Core will depend on many factors including its business development activities. Core believes its available cash and the net proceeds of the Offer should requirements be adequate to fund
Slide 43: Key Risks
Key Risks Risks specific to Core (cont.) For personal use only Underwriting risk ▪ ASX does not agree to grant official quotation of all the New Shares on an unconditional basis. (cont.) ▪ A statement contained in the Offer materials is, becomes or is likely to be misleading or deceptive (including
Slide 44: Key Risks
Key Risks Risks specific to the industry For personal use only Exploration and Mineral exploration and development is a high-risk undertaking. There can be no assurance that exploration of the Finniss Project or any other exploration properties that may be acquired in development risks the future wi
Slide 45: Key Risks
Key Risks Risks specific to the industry (cont.) For personal use only Commodity and material quantities of lithium; the weather in these same countries; the price and availability of appropriate substitutes; advancements in technologies and the uses and potential uses of currency price lithium, and
Slide 46: Key Risks
Key Risks Risks specific to the industry (cont.) For personal use only Environmental risk Further, Core may require approval from the relevant authorities before it can undertake activities that are likely to impact the environment. Failure to obtain such approvals will prevent Core (cont.) from und
Slide 47: Key Risks
Key Risks General investment risks: For personal use only Economic risk General economic conditions, movements in interest and inflation rates, the prevailing global commodity prices and currency exchange rates may have an adverse effect on Core's exploration, development and production activities,
Slide 48: Key Risks
Key Risks General investment risks: For personal use only Government and Changes in government, monetary policies, taxation and other laws can have a significant impact on Core's assets, operations and ultimately the financial performance of Core and its Shares. legal risk Such changes are likely to
Slide 49: Appendices: International Offer Jurisdictions
For personal use only Appendices International Offer Jurisdictions
Slide 50: International Offer Jurisdictions
International Offer Jurisdictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austra
Slide 51: International Offer Jurisdictions
International Offer Jurisdictions European Union For personal use only This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the
Slide 52: International Offer Jurisdictions
International Offer Jurisdictions United Kingdom For personal use only Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Serv
Slide 53: Thank you
For personal use only Thank you Authorised for release by the Board of Core Lithium Ltd For more information: Stephen Biggins, Manager Director : +61 8 8317 1700 Core Lithium Ltd Level 1, 366 King William Street, Adelaide For broker and media enquiries: Fraser Beattie: +61 421 505 557 Cannings Purpl