Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Indaba: Investing in African Mining Conference 2017
38 slides from Sunrise Energy Metals's conference presentation, Jan 30, 2017
Slide 1: Clean TeQ Investor Presentation
Australian Securities Exchange & Media Announcement Clean TeQ Holdings Limited (ASX: CLQ) 30 January 2017 Clean TeQ Investor Presentation Co-Chairman of Clean TeQ Holdings Limited (ASX:CLQ) (Clean TeQ or Company) Mr Robert Friedland will be presenting the Company at a number of investor events over
Slide 2: Syerston Nickel Cobalt Scandium Project
SYERSTON NICKEL COBALT SCANDIUM PROJECT THE FUTURE OF ELECTRIC METALS ROBERT FRIEDLAND, CO-CHAIRMAN February 2017 (ASX:CLQ)
Slide 3: Disclaimer
DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared by the management of Clean TeQ Holdings Limited (the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The information is based on publicly a
Slide 4: An Electric Revolution Is Coming
AN ELECTRIC REVOLUTION IS COMING SYERSTON SYERSTON PAGE PAGE33
Slide 5: Demographic Trends Are Clear
1990 2010 SHANGHAI 1990 POPULATION: 13M 2010 POPULATION: 23M DEMOGRAPHIC TRENDS ARE CLEAR URBANISATION – THE GREATEST CHALLENGE OF OUR TIME Our planet gains approximately 83 million people every year By 2030 Earth will have a projected 8.5 billion people, of which 5 billion will live in urban areas
Slide 6: Air pollution is now the world's largest single environmental health risk
Air pollution is now the world’s largest single environmental health risk WHO GLOBAL AMBIENT AIR POLLUTION “Some 3 million deaths a year are linked PM2.5: 10 μg/m3 , PM10: 20 μg/m3 (annual mean) to exposure to outdoor air pollution… Nearly 90% of air-pollution-related deaths occur in low- and middle
Slide 7: EU Emission Limits
EU EMISSION LIMITS THE GENESIS OF DIESELGATE EU Regulations – CO2 Emissions and Penalties “Diesel was seen as a good thing because it produces less CO2, so we gave people incentives to buy diesel cars.” - Martin Williams, Former head of the UK Government’s Air Quality Science Unit Source: McKinsey &
Slide 8: Dieselgate
DIESELGATE …BUT DIESEL CANNOT MEET NOx / PM2.5 EMISSION LIMITS “You have power, you have energy, you have emissions: you get to choose two of them.” - Don Hillebrand, Argonne National Laboratory and former president of the Society for Automotive Engineers “We’ve totally screwed up.” - Volkswagen’s U
Slide 9: Not Just a Third World Problem
NOT JUST A THIRD WORLD PROBLEM GOVERNMENT REGULATION IS ESCALATING MADRID Paris, Madrid, Mexico City and Athens have announced plans to ban diesel vehicles from their cities by 2025 MEXICO CITY PARIS The German parliament has voted to ban the sale of petrol and diesel vehicles from 2030, and has urg
Slide 10: Well-to-wheels EV miles per gallon equivalent
WELL-TO-WHEELS EV MILES PER GALLON EQUIVALENT (MPGghg) BY ELECTRICITY SOURCE Energy Source MPGghg Coal 30 Oil 32 Natural Gas 54 Solar 500 Nuclear 2,000 “Car companies say they are Wind 3,900 reaching the limit of what is doable Hydro 5,800 with conventional technology … Geothermal 7,600 Tougher CO2
Slide 11: Automakers Are Now Responding
AUTOMAKERS ARE NOW RESPONDING EV’S ARE MOVING TO THE MAINSTREAM VW BMW DAIMLER TESLA BP Forecasting sales of Forecasting Ten new EV models Tesla 3 was the BP is forecasting 2 to 3 million pure 100,000 x-EV sales by 2025 supported most successful 100 million EV’s on EV’s by 2025, or in 2017, and by a
Slide 12: Range Anxiety Will Be Addressed
RANGE ANXIETY WILL BE ADDRESSED Volkswagen, Daimler, BMW and Ford have agreed to jointly invest in thousands of fast-charging sites across Europe EU regulations require all new and renovated homes to come with an EV charger by 2019 China's State Grid announced plans to build 10,000 charging stations
Slide 13: Simplifying the drivetrain
Simplifying the drivetrain Electric motors are far simpler than combustion engines Lower maintenance costs and higher reliability – there is one moving part in an electric motor Tank-to-wheel efficiency is ~16% in a combustion engine, versus ~70% in an electric motor1 SAO PAULO BEIJING 1. Wells to w
Slide 14: Battery Pack Costs Are Falling
BATTERY PACK COSTS ARE FALLING ECONOMIES OF SCALE AND THE EXPERIENCE CURVE 20%pa The last five years has seen a 20% pa cost 12%pa reduction in EV battery pack systems At the current rate of improvement, EV drivetrains are forecast to become competitive with combustion engines within 5 to 10 years So
Slide 15: The Supply Chain Is Responding, Fast
SANYO, JAPAN, 2010 NISSAN, USA, 2013 TESLA, USA, 2017 INVESTMENT IN NEW BATTERY CAPACITY IS VERY LARGE AND VERY REAL SAMSUNG, CHINA, 2015 LG CHEM, CHINA, 2015 LG CHEM, USA, 2013-15 THE SUPPLY CHAIN IS RESPONDING, FAST… SYERSTON PAGE 14
Slide 16: New Battery Capacity Is Coming
NEW BATTERY CAPACITY IS COMING ALREADY ~US$20B OF COMMITTED INVESTMENT Forecasting a ~4x increase in global battery capacity over the next five years China is now pushing for an aggressive California- style Zero Emission Vehicle (ZEV) program: 8% of all cars sold in China by 2018 will be EV, and 12%
Slide 17: A Race to Secure Raw Materials
A RACE TO SECURE RAW MATERIALS CHINA’S AMBITIONS FOR A STRATEGIC INDUSTRY A steady stream of acquisitions Year Asset Purchaser Focus Price 2010 Olaroz Toyota Tsusho / Li US$62M + PF (ARG) JOGMEC + Comp. Gtee 2012 Greenbushes Chengdu Tinaqui Li A$815M (AUS) – 100% 2012 Ruashi Jinshuan Co / Cu US$1,30
Slide 18: Cathode Market
CATHODE MARKET SYERSTON PAGE 17
Slide 19: Chemistry by Market
CHEMISTRY BY MARKET DOMINANT CHEMISTRIES FOR EV REQUIRE NICKEL AND COBALT 39% 22% 11% 19% 9% 41ktpa 23ktpa 12ktpa 20ktpa 9ktpa LCO NCM NCA LMO LFP (Lithium-Cobalt-Oxide) (Nickel-Cobalt-Manganese) (Nickel-Cobalt-Aluminium) (Lithium-Manganese-Oxide) (Lithium-Iron-Phosphate) Still one of the highest Ex
Slide 20: Cathode – The Key to Cost
CATHODE – THE KEY TO COST A LITHIUM ION BATTERY IS A CoNiC BATTERY IN ALL BUT NAME Raw Material Cost Breakdown Metal Cost in Cathode Active Material ~4% of total cell cost US$23/cell (~US$240/kWh) ~20% of total cell cost Source: Roland Berger (2012) and internal analysis. Assumes a 96Wh PHEV cell (2
Slide 21: Nickel & Cobalt Sulphate
“The main determinants on the cost of the cell are the NICKEL & COBALT SULPHATE price of the nickel in the form that we need it … and the cost of the synthetic graphite with silicon oxide coating.” The EV battery industry requires metal to be supplied - Elon Musk, Tesla CEO as salts, usually as sulp
Slide 22: Cathode Demand Forecast
CATHODE DEMAND FORECAST IMPLICATIONS FOR RAW MATERIAL DEMAND Use of nickel and cobalt dominant chemistries is accelerating in China 560 18% CAGR Of the 10 top selling Chinese EV’s using Contained Metal: Nickel: ~137ktpa LFP chemistry, six are already converting Cobalt: ~93ktpa to NCM Anode (C): ~385
Slide 23: Syerston Project
SYERSTON PROJECT SYERSTON PAGE 22
Slide 24: Syerston Project Overview
SYERSTON ORE SYERSTON PROJECT OVERVIEW The Syerston mineral deposit is rich in nickel, cobalt and scandium, located 350km west of Sydney and 100% owned by Clean TeQ Uniquely positioned as one of the largest and highest grade sources of cobalt outside Africa Syerston will be the first mine developed
Slide 25: Why Syerston Is Important
WHY SYERSTON IS IMPORTANT PROTECTION AGAINST SUPPLY CHAIN AND REPUTATION RISK 100% auditable High volume to the mine cathode quality source CoSO4.7H2O Low risk country Sc2O3 for High volume with minimal stronger and cathode quality mining and lighter NiSO4.6H2O processing risk aluminum alloys SYERST
Slide 26: Syerston Ore Reserve
SYERSTON ORE RESERVE VERY LOW MINING RISK Over 1,300 drill holes have defined a significant nickel / cobalt / scandium ore reserve The ore reserve is shallow (5m to 40m) and extends over a 2km horizon; simple, low risk strip-mining with no blasting NICKEL MINERALISATION SYERSTON PAGE 25
Slide 27: 2016 Prefeasibility Study
2016 PREFEASIBILITY STUDY SYERSTON CAN EASILY SUPPORT MULTIPLE GIGAFACTORIES 26-28 GWh p.a.# 500,000 Electric Vehicles p.a.* Definitive Feasibility Study due for completion in Q4 2017 Scandium credits lift NPV8 to US$1.23 billion and IRR to 30%^ # Assumes NCA chemistry with Ni and Co content by wt%
Slide 28: Cobalt: A Problematic Supply Chain
COBALT A PROBLEMATIC SUPPLY CHAIN “The majority of the cobalt is heading straight to China. Their global hold is huge.” - CRU 2016 Percentage of cobalt produced globally as by-product from 95% copper and nickel mining Percentage of global cobalt production originating in the 65% Democratic Republic
Slide 29: Children Mining Coltan, Kivu Region, DRC
PHOTO CAPTION CHILDREN MINING COLTAN, KIVU REGION, DRC “While the occasional [analyst] questions the availability of enough lithium or flake graphite to satisfy soaring demand from the battery industry, everybody has overlooked or ignored the most critical mineral constraint – Cobalt. It’s a truly g
Slide 30: Cobalt Price
COBALT PRICE RISING QUICKLY FROM HISTORIC LOWS Cobalt was one of the best performing metals in 2016, with price increasing ~50% over the year Significant upside in the event of supply disruption – China is adding to its strategic stockpiles At Syerston cobalt is co-product, not by-product: cobalt is
Slide 31: Scandium
SCANDIUM SCANDIUM WILL REVOLUTIONISE THE ALUMINUM INDUSTRY Scandium Impact on Aluminum Yield Strength (Mpa) Strength Increase Sc content (wt%) Al-Li-(Cu) Small additions of scandium can give 0.1-0.2% (+30%) aluminum a strength approaching titanium Al-Zn-Mg-(Cu) and steel alloys, without the weight 0
Slide 32: Scandium – a case study
Scandium – a case study Airbus Group’s Lightrider: the world’s first 3D printed electric bike Aluminum-scandium frame makes it lighter and stronger The bike weighs 35kg, contains a 6kWh battery, has a top speed of 80km/h and a range of 60km The most effective way to increase an EV’s range and perfor
Slide 33: Next Steps
NEXT STEPS SYERSTON SYERSTON PAGE PAGE3232
Slide 34: Project Is Development Ready
PROJECT IS DEVELOPMENT READY KEY PERMITTING COMPLETED STUDIES INFRASTRUCTURE EIS POWER & GAS WATER Prefeasibility All key Environmental Power and gas The Project has a Study completed, infrastructure is Impact Statement are within close 3.2GLpa water with Bankable available, completed and proximity
Slide 35: Pilot Plant
PILOT PLANT PILOT PLANT EXTENSIVE PILOTING COMLETED AND SAMPLES PRODUCED Clean TeQ has a large scale pilot plant located in Perth, Western Australia to simulate the entire leaching and extraction process at scale A pilot campaign in October 2016 to process 20 tonnes of Syerston ore will produce nick
Slide 36: Investment Takeaways
INVESTMENT TAKEAWAYS Exceptional World’s Highly geared cobalt deposit largest and Key Forty year to emerging in OECD, highest grade permitting in mine life EV and ESS 100% scandium place growth auditable resource SYERSTON PAGE 35
Slide 37: Reserves and Resources
RESERVES AND RESOURCES COMPETENT PERSON CONSENTS The information in this document that relates to nickel-cobalt Mineral Resources is based on information compiled by Diederik Speijers and John McDonald, who are Fellows of The Australasian Institute of Mining & Metallurgy and employees of McDonald Sp
Slide 38: Contact
CONTACT Robert Friedland Co-Chairman Clean TeQ Holdings Limited 12/21 Howleys Road Notting Hill VIC 3168 AUSTRALIA www.cleanteq.com SYERSTON PAGE 37
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