Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Macquarie Conference 2017
32 slides from Sunrise Energy Metals's conference presentation, May 4, 2017
Slide 1: May 2017 Investor Presentation – Macquarie Conference
Australian Securities Exchange & Media Announcement Clean TeQ Holdings Limited (ASX: CLQ) 4 May 2017 May 2017 Investor Presentation – Macquarie Conference Clean TeQ Holdings Limited (CLQ:ASX; CTEQF:OTCQX) (‘Clean TeQ’ or ‘Company’) provides the attached Investor Presentation which will be presented
Slide 2: Syerston Project: Nickel and Cobalt Sulphate for the Lithium-Ion Battery Industry
SYERSTON PROJECT NICKEL AND COBALT SULPHATE FOR THE LITHIUM-ION BATTERY INDUSTRY SAM RIGGALL, CEO MACQUARIE CONFERENCE MAY 2017
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: Company Overview
COMPANY OVERVIEW CLEAN TEQ MISSION CAPITAL STRUCTURE ASX code CLQ We use hydrometallurgical innovation to produce metals that are highly geared to disruptive changes in technologies and markets, Share Price (28 April 2017) A$0.755 particularly in global energy and transport Shares 572.1 M Options 47
Slide 5: Investment Thesis
INVESTMENT THESIS CATHODE MARKET LITHIUM-ION BATTERIES RAW MATERIAL CHALLENGES High-purity nickel and cobalt sulphate are key raw material inputs Evolving supply constraints for high-purity nickel and cobalt for the rapidly growing lithium-ion battery industry sulphate, particularly with an auditabl
Slide 6: Recent Developments
RECENT DEVELOPMENTS STRONG MOMENTUM TOWARDS DEVELOPMENT OF SYERSTON Pilot plant has processed ~20t of ore with customer Clean TeQ Share Price samples progressing well march April2017 2017 A$ per share $1.20 ASX 300 Index inclusion March 2017 $1.00 Strategic partnership and A$81m placement to P
Slide 7: Near-Term Objectives
NEAR-TERM OBJECTIVES FAST TRACKING SYERSTON IS OUR IMMEDIATE PRIORITY 01 Build out project development and operational management team 02 Complete the Bankable Feasibility Study by Q4 2017 03 Sign binding offtake agreements with strategic counterparties during 2017 04 Continue progress towards fully
Slide 8: Cathode Market
CATHODE MARKET
Slide 9: Battery Pack Costs Are Falling
BATTERY PACK COSTS ARE FALLING ECONOMIES OF SCALE AND THE EXPERIENCE CURVE Battery Costs Are Falling (US$/kWh) Cell average EV systems average 1,600 20%pa 1,400 1,200 1,000 800 The last five years have seen a 20% pa cost 600 reduction in EV battery pack systems 12%pa 400 At the current rate of impro
Slide 10: New Battery Capacity Is Coming
NEW BATTERY CAPACITY IS COMING ALREADY ~US$20B OF COMMITTED INVESTMENT Tesla is important, but the real growth story is in China China is now pushing for an aggressive California-style Zero Emission Vehicle (ZEV) program: 8% EV by 2018, 12% by 2020 Given a 1% EV adoption rate in China today, that ta
Slide 11: Cathode Is the Key to Cost
CATHODE IS THE KEY TO COST NICKEL AND COBALT PRICES DRIVE CELL COST Battery Production Raw Material Cost Metal Cost in Cathode Cost Breakdown Breakdown Active Material 100% 100% Housing and feedthrough ~5% of total Lithium cell raw 5% material cost 80% 80% Separator Manganese Electrolyte 60% 60% US$
Slide 12: 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- (Nickel-Cobalt- (Lithium-Manganese- (Lithium-Iron- Manganese) Aluminium) Oxide) Phosphate) Still one of the highes
Slide 13: Cathode Demand Forecast
CATHODE DEMAND FORECAST EV IMPLICATIONS FOR CATHODE RAW MATERIAL DEMAND Cathode Raw Material Implied Contained Use of nickel and cobalt Demand By Battery Type Metal Demand (‘000 tonnes) dominant chemistries is LCO NCM NCA LMO LFP Nickel Cobalt accelerating in China ~175ktpa Of the 10 top selling Chi
Slide 14: Inputs Required as Sulphates
INPUTS REQUIRED AS SULPHATES EV BATTERIES NEED NICKEL AND COBALT IN SULPHATE FORM Nickel Sulphate Premia The EV battery industry requires metal to be supplied as salts, usually as sulphates, $20.00 LME Nickel (US$/lb) - Spot Nickel Sulphate (US$/lb) - Spot to manufacture cathode precursors The cost
Slide 15: A Problematic Supply Chain
A PROBLEMATIC SUPPLY CHAIN MAJORITY OF CURRENT COBALT SUPPLY SOURCED FROM AFRICA “The majority of the cobalt is heading straight to China. Their global hold is huge.” Percentage of cobalt produced - CRU, May 2016 95% globally as by-product from copper and nickel mining “While the occasional [analyst
Slide 16: Cobalt Price
COBALT PRICE COBALT WAS ONE OF THE BEST PERFORMING METALS OF 2016 Cobalt Price | 27.90 USD/lb | 28 April 2017 Cobalt has been one of the best performing 30 metals with prices increasing by ~160% since the beginning of 2016 25 Significant upside in the event of supply disruption 20 Major end customer
Slide 17: Syerston Project
SYERSTON PROJECT SYERSTON PA G E 1 5
Slide 18: Syerston Project: Fully Permitted Development Project in NSW
SYERSTON PROJECT FULLY PERMITED DEVELOPMENT PROJECT LOCATED IN NSW The Syerston Project is 100% owned by Clean TeQ and located 350km west of Sydney Laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium Uniquely positioned as one of the largest and highest grade sources of coba
Slide 19: World-Class Cobalt Resource
WORLD-CLASS COBALT RESOURCE SYERSTON IS A PREMIER COBALT RESOURCE OUTSIDE AFRICA Cobalt Resource Size & Category1 Cobalt Grade vs Resource Size1 160 Idado Cobalt 0.16% 0.50% 0.50% 140 Mt Thirsty 120 0.14% Mutooroo 0.40% NICO 93% Measured & Contained Co, kt 100 0.12% KNP Cobalt Grade Indicated Syerst
Slide 20: Known Geology
KNOWN GEOLOGY LARGE UNDEVELOPED NICKEL-COBALT RESOURCE Ore Reserves Estimate1 Over 1,300 drill holes provide for strong Classification Mt Ni % Co % geological understanding of the resource Proved 55 0.71 0.10 700kt of contained nickel and 114kt of Probable 41 0.58 0.10 contained cobalt, making Syers
Slide 21: Simple Mining Operation
SIMPLE MINING OPERATION SIMPLE AND LOW COST OPEN-PIT MINING AT SHALLOW DEPTHS Shallow deposit allows for simple strip-mining method, with minimal grinding and beneficiation The ore is friable and is amenable to free digging by excavators with no blasting required The average strip ratio is 0.8x:1.0
Slide 22: 2016 PFS Highlights
2016 PFS HIGHLIGHTS LARGE, LOW-COST AND WITH ATTRACTIVE ECONOMICS Nickel sulphate production1 85.1ktpa PFS completed in September 2016 and demonstrated highly favourable economics Contained nickel production1 18.7ktpa Processing of 2.5Mtpa ore over an initial 20- Cobalt sulphate production1 15
Slide 23: 2016 PFS Highlights (cont.)
2016 PFS HIGHLIGHTS (CONT.) Q1 COST POSTION WITH MEANINGFUL EXPOSURE TO CO AND NI Production Profile1 Global Nickel C1 Cash Cost Curve3 After co-credits LOM REVENUE2 Spot prices 40 10.0 35 8.0 Metal equivalent content (ktpa) 55% 45% SYERSTON 30 6.0 PFS 25 Nickel price: US$4.30/lb 4.0 USD/lb 20 2.0 1
Slide 24: Clean-iX Processing
CLEAN-IX® PROCESSING SULPHATE FROM PRIMARY ORE PROCESSING Large scale pilot plant located in SULPHATE PREMIA Perth to simulate the entire leaching Ore Nickel Low Nickel High Nickel High PYROMETALLURGY Concentrate Matte Matte Concentration and RIP extraction process at scale Nickel Solution A pilot c
Slide 25: Customer Strategy
CUSTOMER STRATEGY FEEDBACK FROM POTENTIAL CUSTOMERS TO DATE IS VERY POSITIVE Clean TeQ’s objective is to agree binding long term nickel and cobalt sulphate sales contracts with a small number of strategic counterparties during 2017 while the BFS is being completed Received strong expressions of inte
Slide 26: Project Is Development Ready
PROJECT IS DEVELOPMENT READY KEY PERMITTING OPERATIONAL NEAR-TERM COMPLETED READINESS OBJECTIVES STUDIES WATER POWER & GAS TEAM OFFTAKE Prefeasibility study The Project has a Power and gas are Build out project Sign binding offtake completed 3.2GLpa water within close development and agreements with
Slide 27: Investment Thesis
INVESTMENT THESIS CATHODE MARKET LITHIUM-ION BATTERIES RAW MATERIAL CHALLENGES High-purity nickel and cobalt sulphate are key raw material inputs Evolving supply constraints for high-purity nickel and cobalt for the rapidly growing lithium-ion battery industry sulphate, particularly with an auditabl
Slide 28: Appendix
APPENDIX CLEAN . TEQ
Slide 29: 2016 Prefeasibility Study
2016 PREFEASIBILITY STUDY LARGE, LOW-COST AND WITH HIGH COBALT CREDITS 26-28 GWh p.a.# 500,000 Electric Vehicles p.a.* Definitive Feasibility Study due for completion in Q4 2017 Significant scandium credits modelled separately # Assumes NCA chemistry with Ni and Co content by wt% within cathode acti
Slide 30: Scandium Opportunity
SCANDIUM OPPORTUNITY EV DEMAND TO DRIVE GROWTH FOR LIGHT WEIGHT ALUMINIUMS Scandium is used to provide next generation Airbus Group’s Light-rider lightweight aluminium alloys for key transportation markets Clean TeQ continues to promote the use of scandium alloys with ultimate aim of securing offtak
Slide 31: Contact
CONTACT Sam Riggall Clean TeQ Holdings Limited Managing Director & CEO 12/21 Howleys Road Notting Hill VIC 3168 M: +61 3 9797 6700 AUSTRALIA E: sriggall@cleanteq.com www.cleanteq.com SYERSTON PA G E 2 9
Slide 32: Reserves and Resources: Competent Person Consents
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