Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Shareholder Meeting (September 2016)
30 slides from Sunrise Energy Metals's shareholder meeting presentation, Sep 6, 2016
Slide 1: General Meeting of Shareholders, 6 September 2016
G E N E R A L M E E T IN G OF SH A R E H O LD E R S 6 S E P T E M B E R 20 1 6
Slide 2: 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 3: What We Plan To Do
WHAT WE PLAN TO DO SUPPLY KEY RAW MATERIALS TO GLOBAL ENERGY AND TRANSPORTATION MARKETS Develop one of the world’s largest sources of high-purity cathode raw materials for the global lithium-ion battery industry. Develop the world's first mineable source of scandium to service the transport sector’s
Slide 4: Syerston Overview
SYERSTON ORE SYERSTON OVERVIEW The Syerston Project is a laterite (iron-hosted) mineral resource, rich in nickel, cobalt, manganese and scandium, located 350km west of Sydney It comprises one exploration licence and five mining lease applications, all 100% owned by Clean TeQ Syerston has the potenti
Slide 5: LiB Market
LiB MARKET SYERSTON PA G E 5
Slide 6: Lithium Ion Market Growth
LITHIUM ION MARKET GROWTH ELECTRIC VEHICLES - WE HAVE REACHED A TIPPING POINT Historic and Forecast Global LiB Sales (GWh) Phones & Portable PCs Other (Non-Auto) Automotive ~16% CAGR >3x GROWTH 20% CAGR in LiB sales over last decade 193 Auto industry interest in EVs has now reached a crucial tipping
Slide 7: Automotive Demand
AUTOMOTIVE DEMAND A MIX OF ELECTRIC DRIVETRAIN TECHNOLOGIES Forecast Global x-EV Sales (2014 – 2025) From ~0.5m PHEV and BEVs sold in 2015, Battery Electric Vehicles demand is forecast to grow to 2.0m units by Plug-In Hybrid EV 2020 and 6.0m units by 2025 Hybrid EV As battery costs fall, BEV drivetr
Slide 8: China's Electric Vehicle Demand
CHINA’S ELECTRIC VEHICLE DEMAND IMPACT OF GOVERNMENT SUBSIDIES China Sales of Alternative Energy Passenger Cars (units) 2014 2015 60,000 50,000 China’s 13th Five-Year Plan (2006 – 2020) forecasts a progressive unwinding of 40,000 consumer subsidies 30,000 Focus will be placed on development of highe
Slide 9: E-Mobility Going Mainstream
E-MOBILITY GOING MAINSTREAM IT’S NOT JUST ABOUT TESLA AND BYD Christiaan Hetzner, 1 June 2016, Automotive News The Volkswagen Group plans to launch over 30 fully electric new vehicles by 2025. “We expect that by then we will be selling Jake Spring, 21 July 2016, Reuters about 2 to 3 million pure-ele
Slide 10: A Race to Secure Raw Materials
A RACE TO SECURE RAW MATERIALS ENERGY STORAGE DESIGNATED A STRATEGIC INDUSTRY A steady stream of acquisitions Cathode Material Market Share (percentage) Year Asset Purchaser Focus Price China Japan Korea O ther 2010 Olaroz Toyota Tsusho / Li US$62M + PF + (ARG) JOGMEC Comp. Gtee 2012 Greenbushes Che
Slide 11: Investment in New Battery Capacity Is Large and Real
SANYO, JAPAN, 2010 NISSAN, USA, 2013 TESLA, USA, 2017 INVESTMENT IN NEW BATTERY CAPACITY IS LARGE AND REAL SAMSUNG, CHINA, 2015 LG CHEM, CHINA, 2015 LG CHEM, USA, 2013-15 Between 2011 and 2014 ~US$10-12B was invested in new battery capacity, adding ~50GWh Between 2014 and 2017 another ~US$7B will be
Slide 12: Cathode Market
CATHODE MARKET SYERSTON PA G E 1 2
Slide 13: Chemistry by Market Share
CHEMISTRY BY MARKET SHARE DOMINANT CHEMISTRIES 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 Exp
Slide 14: Cathode Demand - Forecast
CATHODE DEMAND - FORECAST SUPPLY CHAIN MUST RESPOND DURING A PERIOD OF LOW PRICING Cathode Raw Material Demand (‘000 tonnes) LCO NCM NCA LMO LFP EV Upside ~14% CAGR If NCM and NCA chemistries dominate for 440 EV’s, then Ni and Co are key raw materials Contained Metal: Nickel: ~95ktpa Cobalt: ~93ktpa
Slide 15: Cathode – The Key to Price Competitiveness
CATHODE – THE KEY TO PRICE COMPETITIVENESS NICKEL AND COBALT PRICES DRIVE CELL COST Raw Materials Manufacturing Costs Producer Margin Raw Material Cost Breakdown Metal Cost in Cathode Active Material 100% 100% Housing and feedthrough Lithium 5% 80% 80% Separator Manganese Electrolyte Cobalt 60% 60%
Slide 16: Why Syerston Is Important
WHY SYERSTON IS IMPORTANT PROTECTION AGAINST SUPPLY CHAIN RISK 100% auditable High volume raw materials cathode quality supply chain CoSO4.7H2O Low risk country with minimal High volume High volume mining and cathode quality cathode quality processing risk NiSO4.6H2O MnSO4 SYERSTON PA G E 1 6
Slide 17: Syerston Project
SYERSTON PROJECT SYERSTON PA G E 1 7
Slide 18: A Combination of Unique Features
A COMBINATION OF UNIQUE FEATURES LARGE, LOW-COST AND READY 1 2 3 4 LARGE RESOURCE HIGH COBALT LOW ACID/SMALL PLANT CLEAN-iX® A developed mine will have an Syerston is one of the world’s The mineralogy requires Highly selective mineral operating life of up to 50 years highest-grade cobalt resources r
Slide 19: Geology
1 GEOLOGY LOW RISK MINING Over 1,300 drill holes to define a significant nickel / cobalt / scandium resource The resource is shallow (5m to 40m) and extends over a 2km horizon; simple and low risk strip-mining A high-grade scandium resource to the NW provides the option to develop a dedicated scandi
Slide 20: Mineral Resource
1 MINERAL RESOURCE UPDATED MINERAL RESOURCE ESTIMATE (JORC 2012) 1 Resource (Mt) Ni % Co % Sc ppm 109 0.65 0.10 56 67 0.74 0.13 53 38 0.84 0.15 53 Resource (Mt) 2 Contained Ni (t) Contained Co (t) Contained Sc 2O 3 (t) 109 700,000 114,000 9,600 1. Based on 2012 JORC standard, modelled at Ni-equivale
Slide 21: The Cobalt Supply Chain
2 THE COBALT SUPPLY CHAIN 95% Proportion of globally mined cobalt produced as by-product 65% Democratic Republic of Congo cobalt production as a share of world production 30% Year-on-year increase in Chinese imports of cobalt raw materials in 2015 Source: Darton Commodities, Cobalt Market Review 201
Slide 22: Photo Caption: 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 23: High Cobalt Grade
2 HIGH COBALT GRADE A CO-PRODUCT, NOT A BY-PRODUCT Undeveloped Cobalt-Bearing Nickel Projects (excl Africa and seabed mining) Cobalt Grade vs Contained Co Resource Syerston represents one of the best undeveloped cobalt resources in the world outside central Africa Project value is highly geared to m
Slide 24: Low Acid Consumption
3 LOW ACID CONSUMPTION KEY TO LOW OPEX IN HYDROMETALLURGY Acid Consumption 600 Syerston consumes less acid than existing H2SO4 consumption range, kg / tonne ore operating HPAL nickel mines today 500 Mineralogy is low in acid-consuming 400 elements, such as Ca and Mg 300 At Syerston a reduction of ac
Slide 25: Clean-iX
4 CLEAN-iX® FROM ORE TO SULPHATE WITHOUT INTERTMEDIATE PROCESSING The metal-rich solution The extracted metals is injected into a are then put through a Clean-iX® Resin-in- purification circuit to Pulp system where the produce high purity leachate contacts with nickel sulphate, cobalt polymer resins
Slide 26: Next Steps
NEXT STEPS SYERSTON PA G E 2 6
Slide 27: Project Is Development Ready
PROJECT IS DEVELOPMENT READY KEY PERMITTING COMPLETED STUDIES INFRASTRUCTURE EIS POWER & GAS WATER Two Feasibility All key Environmental Power and gas The Project has Studies infrastructure is Impact are within close a 3.2GLpa water completed on available, Statement proximity to the allocation the P
Slide 28: Clean-iX Pilot Plant
PILOT PLANT CLEAN-iX® PILOT PLANT SAMPLE PRODUCTION Clean TeQ has a large scale pilot plant located in Perth, Western Australia to simulate the entire leaching and RIP extraction process at scale. Recent operation included processing of 12 tonnes of Syerston ore to produce scandium samples for offta
Slide 29: Key Investment Takeaways
KEY INVESTMENT TAKEAWAYS Strong project One of the world’s Development Option value economics A large resource highest grade ready – fully on emerging EV expected to be with 35 - 50 year cobalt resources drilled with key and ESS demonstrated in mine life outside central permitting growth the Prefeas
Slide 30: Contact
CONTACT Sam Riggall Chairman Clean TeQ Holdings Limited 12/21 Howleys Road Notting Hill VIC 3168 AUSTRALIA www.cleanteq.com T: +61 3 9797 6700 E: sriggall@cleanteq.com SYERSTON PA G E 3 0
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