Lake Resources N.l. · ASX:LKE
Lake Resources N.l — Investor Presentation (September 2021)
31 slides from Lake Resources N.l's investor presentation, Sep 22, 2021
Slide 1: Lilac Solutions Partnership To Develop Kachi Lithium Project
22 September 2021 ASX:LKE | FRA:LK1 | OTC:LLKKF For personal use only Lilac Solutions Partnership To Develop Kachi Lithium Project Steve Promnitz - Managing Director, Lake Resources Dave Snydacker – CEO, Lilac Solutions
Slide 2: 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 3: Lake Resources Partners with Lilac Solutions - World's Cleanest Lithium
Lake Resources Partners with Lilac Solutions - World’s Cleanest Lithium by developing Kachi Project. For personal use only • Lilac to Earn in to Kachi Project Lilac Solutions will contribute technology, engineering teams, and on-site demonstration plant, Earning in to a max 25% stake in Lake’s Kachi
Slide 4: 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 5: World's cleanest lithium. Four lithium projects in heart of the Lithium Triangle
World’s cleanest lithium. For personal use only Four lithium projects in heart of the Lithium Triangle. Produces 40% of the world’s lithium at lowest cost. Large leaseholding 2,200km2 (550,000 acres) World’s five largest producers all have equity in operations in the Lithium Triangle. Lake’s flagshi
Slide 6: Lilac Solutions - Cleaner technology
Lilac Solutions - 1st Century technology Cleaner technology For personal use only Lilac direct extraction displaces evaporation process Brine in – Lithium chloride out • High purity • Faster process • High recovery 21st Century technology • Sustainable – No brine heating • Cost competitive – Durable
Slide 7: 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 8: Delivers a Cleaner Environment - Lower water use
Delivers a Cleaner Environment Smaller environment footprint – Lower water use – No brine depletion For personal use only Atacama Projects – Brine evaporation Kachi Project – Lake/Lilac DLE Brine Returned to Source All Brine Evaporated Source: SQM / ALB presentations 2020; 170km2 for c.80,000 tpa LC
Slide 9: Delivers a Cleaner Environment - Lower greenhouse gases
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: Lilac Solutions - Executive Team
Lilac Solutions – Executive Team For personal use only ASX: LKE OTC: LLKF SLIDE / 10
Slide 11: Lilac Solutions - Lead Investors
Lilac Solutions – Lead Investors Successful Tech Investor Backing For personal use only ASX: LKE OTC: LLKF SLIDE / 11
Slide 12: 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 13: Expansion Study - Clearer pathway
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 14: Kachi project - Proposed plant design
Kachi project Proposed plant design For personal use only ~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 Production Eluate Concentration ASX:ASX: LKELKE OTC: ASX: OTC: LLKKF LKE LLKK
Slide 15: Lake's 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 16: Direct extraction - Premium price, very high margin
Direct extraction Premium price – very high margin For personal use only Lake premium grade LCE price US$13,000 - 16,000/t Lake’s direct extraction US$4,100/t Opex Margin Brine - Margin Battery grade LCE price US$3,750 - 4,200/t Opex US$8,000 - 13,000/t evaporation Technical grade LCE price US$5,300
Slide 17: 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 18: Kachi Project Finance Support
Kachi Project Finance Support UK Export Finance – Export Credit Agency Support – Expression of Interest For personal use only Funding to ~70% of Total Required – including the Expansion Project Finance CAPEX Debt Duration UK Export Finance provided ~70% debt## US$544m 8.5 years* Expression of Intere
Slide 19: Kachi Project Status
Kachi Project Status Finance Indicatively in Place – Targeting FID mid next year For personal use only Major Resource (2018) Robust PFS (2020) DFS and ESIA Underway Pilot and Demo Plant in train Production Target 20% utilised High cashflow End Q1,2022 Successful testing 25,500 tpa LCE in 25 yrs prod
Slide 20: 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 21: Corporate snapshot
Corporate snapshot Funded to FID For personal use only Share price Cash 30 June 2021 Half year share price chart A$0.53 US$0.39 A$26m 16 Sept 2021 (10 day VWAP) US$19.2m 52 week high $0.68c, low $0.05c Target A$60m Oct’21 option conversion Shares on issue Debt 1.105bn Zero Market capitalisation Unli
Slide 22: Significant Upside
Significant Upside For personal use only • Lake Trading 25% NPV8 (w/o expansion) Lithium Developer Peers vs Peers 50-100+% NPV8 Market Value vs Brine Resource Lake Resources Developers • Lake Market Value A$580m 1400 14 Brine Resource Mt LCE vs DLE Peers at A$1300m (SLI.NYSE) 1200 12 Market Value A$
Slide 23: Cauchari project
Cauchari project Identical lithium brines as adjoining Ganfeng/ Lithium Americas development For personal use only Lake’s brines being tested for direct lithium extraction Scoping study and resource drilling planned for 2021/22 Other Lake projects adjoin Olaroz production area Ganfeng/LAC Resource –
Slide 24: 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 25: 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 Steve Promnitz Managing Director steve@lakeresources.com.au +61 2 9188 7864 lakeresources.com.au ASX: LKE OTC: LLKKF SLIDE / 25
Slide 26: Appendices
Appendices For personal use only ASX: LKE OTC: ASX: LLKKF LKE SLIDE / 26
Slide 27: 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 225 battery factories planned for 2030 151 operating by end 2021 • Lithium added to critical raw materials list for the first time in 2020 225 180 • Lithium-ion batteries represent one of 150 1
Slide 28: Underinvestment in new supply. Price moving up
Underinvestment in new supply. Price moving up. For personal use only Lithium battery demand 225 Megafactories operating at 100% capacity (4.2 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: 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 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 / 31
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