Ioneer Limited · ASX:INR
Ioneer — NWR Virtual Resources Series (October 2021)
25 slides from Ioneer's conference presentation, Oct 12, 2021
Slide 1: Investor Presentation – NWR Virtual Resources Series
INVESTOR PRESENTATION NWR Virtual Resources Series 12 October 2021 Providing the materials for a sustainable & thriving planet. 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 Ltds (ioneer or the Company) assets and liabilities, financial position and In respect of Mineral Resources and Ore Reserves referred to in this presentation and previo
Slide 3: 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 U.S supplier of critical of commodity prices in
Slide 4: JVCo Rhyolite Ridge (South Basin)
Sibanye Stillwater Limited (“Sibanye- Asset Ownership Structure Stillwater”) to contribute US$490 million of direct funding for 50% economic and voting interest in a newly formed joint venture (“JVCo”) ioneer will contribute 100% of the South Basin for a 50% interest in JVCo. ioneer will 50% (Operat
Slide 5: Precedent transaction comparison
Source: JP Morgan Company filings, Dealogic, SNL and FactSet Notes: Screening criteria includes: Date = 2018 – Current, Deal value = >US$25mm. 1 Adjusted deal value includes adjustments for capital structure and attributable project capex; 2 Transaction included the purchase of convertible bonds (up
Slide 6: On track to be construction ready by Q4 2022
ON TRACK TO BE CONSTRUCTION READY BY Q4 2022 ~60% ENGINEERING COMPLETED. KEY CONTRACTS ARE BEING AWARDED FULL SIMULATION PILOT PLANT THROUGH TO Li CARBONATE AND HYDROXIDE ENVIRONMENTAL BASELINE STUDIES COMPLETED AND ACCEPTED BY BLM BINDING OFFTAKE AGREEMENTS FOR BORON PRODUCTION AND FIRST LITHIUM CA
Slide 7: Rendered Detailed Engineering Model
Rendered Detailed Engineering Model Sulphuric Evaporation/ Acid Plant Crystallization Sulphur Vat Leach Plant Supply Lithium Carbonate Circuit Power Ore Handling/ Plant Sizing and Storage Plant Utilities Boric Acid Circuit Reagents www.ioneer.com 7
Slide 8: 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 le
Slide 9: Project economics: NPV, IRR, revenue, 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$288M 174,400 (Split ~70% Li & 30% B) Tonnes Years 1-26 Note: The DFS base case lithium carbonate equivalent (LCE) prices averag
Slide 10: 2020 LCE all-in sustaining cash cost curve
2020 LCE All-in sustaining cash cost curve (US$/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 11: Revenue and cost per tonne with boric acid credit
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 12: Large mineral resource, large ore reserve
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 13: 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 14: Key milestones
Key Milestones Completed 2H21 1H22 2H22 2H24 ✓ DFS • Register of Notice • Construction ready • Anticipated • Mechanical of Intent (NOI) Record of completion ✓ Pilot Plant • Release equipment Decision (ROD) • Continue to award fabrication • Commission plant ✓ Water Rights major contracts • Fully perm
Slide 15: 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 CFO & Company Secretary BERNARD ROWE ROSE McKINNEY-J
Slide 16: Engineering and technology partners
EPCM Evaporation and Crystallization Acid Plant Material Handling Haulage System Automation Solutions Controls Mining Pilot Plant Spent Ore Environmental Leaching www.ioneer.com 16
Slide 17: Capital Structure, Share price performance, Shareholders
Capital Structure Share price performance (As at 6 October 2021) 7 October 2020 - 6 October 2021 SHARES OUTSTANDING 1.90B $0.8000 $0.7000 $0.6000 PERFORMANCE RIGHTS AND 74.9m $0.5000 OPTIONS OUTSTANDING $0.4000 $0.3000 CASH BALANCE A$83.1m $0.2000 (June 2021 quarter) $0.1000 $0.0000 12/10/2020 12/01
Slide 18: Contacts
Bernard Rowe Alex Cowie Matt Dempsey ioneer Ltd NWR Communications FTI Consulting Managing Director Investor & Media Relations Investor & Media Relations (Australia) (U.S.) T: +61 419 447 280 T: +61 412 952610 T: +1 202 316 9609 E: browe@ioneer.com E: alexc@nwrcommunications.com E: matt.dempsey@ftic
Slide 19: Thank you
THANK YOU. Providing the materials for a sustainable & thriving planet. For more information please contact: info@ioneer.com www.ioneer.com
Slide 20: Rhyolite Ridge total Ore Reserve almost quadrupled
• Rhyolite Ridge total Ore Reserve almost quadrupled to 60 million tonnes (mt) • Approximately half of the Ore Reserve is classified as Proved • Boron grades increased by 26% in the total Ore Reserve, significantly lifting boric acid production • Ore Reserve provides 94% of tonnes in current 26-year
Slide 21: First lithium offtake agreement signed June 2021
First lithium offtake agreement signed June 2021 Lithium Offtake Strategy Status Update ioneer is targeting the following: • Continuing to advance discussions with several • Diversified cathode battery manufacturers and Tier 1 global counterparties industrial users (glass) • First offtake agreement
Slide 22: Boric acid production vs offtake
PRODUCTION VS OFFTAKE ASIAN DISTRIBUTOR TERRITORIES Binding Offtake Non-binding Offtake Remaining Offtake 250 200 Boric Acid '000 Mt 150 100 50 0 1 2 3 4 5 6 7 8 9 10 Production Year Boric Acid Sales: • Five-year Binding Boric Acid Offtake supply agreement signed with Dalian Jinma Boron Technology f
Slide 23: Project funding through strategic partnering, debt and equity
Project funding through a combination of strategic partnering, debt and equity US$’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 24: Announcement of strategic partner is the culmination of a process
Announcement of strategic partner is the culmination of an 18 month process ioneer believes Sibanye-Stillwater is the right partner for ioneer and Rhyolite Ridge Established US operator, First class ESG credentials Leading international miner with three integrated and commitment to with extensive ex
Slide 25: Transformational strategic investment highlights quality of Rhyolite Ridge
Transformational strategic investment highlights the quality of Rhyolite Ridge and ioneer’s future as a major lithium and boron producer in the US Sibanye-Stillwater is a US$10 billion1 international mining company, with existing US operations and a proven track record in operating and developing la