Clean Teq Water Ltd · ASX:CNQ
Clean Teq Water — Investor Presentation (October 2022)
53 slides from Clean Teq Water's investor presentation, Oct 27, 2022
Slide 1: Clean Teq Water Capital Raising Presentation
CLEAN TEQ WATER Capital Raising Presentation October 2022
Slide 2: Disclaimer
Disclaimer NOT AN OFFER DOCUMENT This presentation is not a prospectus, product disclosure statement or other disclosure document under Australian law (and will not be lodged with the Australian Securities and Investments Commission (“ASIC”)) or any other law. This presentation is for information pu
Slide 3: Disclaimer: Forward Looking Statements
Disclaimer FORWARD LOOKING STATEMENTS The information in this presentation is subject to change without notice and Clean TeQ Water is not obliged to update or correct it. This presentation contains statements that constitute "forward looking statements". The forward looking statements include statem
Slide 4: Executive Summary
Executive Summary Company Overview • Clean TeQ Water is a designer and provider of water treatment and metal recovery plants and equipment based on its proprietary portfolio of innovative technologies • Demerged from Sunrise Energy Metals (SRL.ASX) in July 2021 to create a standalone technology comp
Slide 5: Clean TeQ Water Mission
CLEAN TEQ WATER MISSION We deliver unique water treatment and metal recovery solutions to accelerate the transition to a circular economy 5
Slide 6: An emerging leader in water technology solutions
Clean TeQ Water – An emerging leader in water technology solutions Innovative and agile company with validated technology solutions Unrivaled Technology Portfolio supported by an extensive international IP protection Strong Momentum through successful commercialization across the world Significant P
Slide 7: Business Update and Recent Milestones
Business Update and Recent Milestones Recent Key Operational Highlights Total Revenues (A$ Million) 1. Signed and started four water solutions projects since 20 demerger in 2021, with a total contract value of A$20 million 18 • Hassall EVAPX agricultural by-product wastewater recycling 16 • NESR bor
Slide 8: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview 4. Financial Summary and Outlook 5. Capital Raising Details 8
Slide 9: Business Overview
Business Overview Operating across three business units delivering a unique and scalable technology offering Water Solutions Graphene Membranes Direct Metal Extraction Water Technology solutions providing semi- NematiQ produces Graphene Membranes as a A set of technical solutions to extract high pur
Slide 10: Expanding Global Footprint
Expanding Global Footprint Global presence with strong foothold to accelerate commercial expansion Oman Iraq European Ordos Clean TeQ Beijing Antimony processing Bore water treatment Office Nitrate removal from coal Office and research lab water treatment for reinjection for BP mining water Company
Slide 11: Management and Board
Management and Board Expertise where High-tech meets commercialisation Peter Voigt | Executive Chairman and Chief Technology Officer Sam Riggall | Non-executive Director • Clean TeQ Founder. Over past 30 years, chairman and CEO • Mr Riggall is currently CEO and director if Sunrise Energy Metals limi
Slide 12: Corporate Snapshot
Corporate Snapshot Clean TeQ Water de-merged from Sunrise Energy Metals Limited (SRL.ASX) in July 2021 Financial Snapshot CNQ Share Price Performance ASX Code CNQ 1.00 .45m Share price (10 Oct 2022) A$0.495 0.90 .40m Number of shares 44.7m 0.80 .35m Market capitalisation A$22.1m 0.70 .30m Cash (30-J
Slide 13: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview 4. Financial Summary and Outlook 5. Capital Raising Details 13
Slide 14: Current Target Markets for Water Solutions
Current Target Markets for Water Solutions Large and fragmented market with sustainability tailwinds Industrial Brine Municipal Effluent & Mining Waste Water Treatment ground water Re-Use and Metal Recovery Market Size (Estimates) * > US$ 20 billion > US$ 20 billion US$ 5 - 10 billion Clean TeQ • Re
Slide 15: Current Target Markets for Water Solutions
Current Target Markets for Water Solutions Large and fragmented market with sustainability tailwinds Industrial Brine Municipal Effluent and Mining Waste Water Treatment ground water Re-Use and Metal Recovery Specific Market • More water recovery from brines to reduce • Nutrient removal and recovery
Slide 16: Target Market Background: Municipal Re-use
Target Market Background: Municipal Re-use Lack of current municipal effluent recycling is enormous opportunity for growth MUNICIPAL EFFLUENT WATER Waste water plant effluent is a reliable low RECYCLING RATE cost source of additional water supply currently pursued by governments 70% concerned about
Slide 17: Target Market Background: Ground Water In Australia
Target Market Background: Ground Water In Australia Significant further opportunity for applying Clean TeQ Water solutions to ground water PWC/Laramba Koumala • CNQ two active projects in ground water with drinking water project drinking water substantial opportunity for further growth project • Eco
Slide 18: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview 3.1. Water Solutions 3.2. NematiQ 3.3. Direct Metal Extraction 4. Financial Summary and Outlook 5. Capital Raising Details 18
Slide 19: Unique Water Technology Platform
Unique Water Technology Platform CNQ’s unique water solutions are built on two key technologies 1 Ion Exchange Resin Technology 2 Encapsulated Bacteria Lens Technology • Resins specifically designed to bind targeted ions, removing • Bacteria encapsulated in lenses to enhance and accelerate target sp
Slide 20: Unique Water Technology Solutions
Unique Water Technology Solutions Complete Nutrient Removal Clean TeQ Water Technology solutions each provide step change improvement in economic water recovery and Resins to remove TN from main effluent irrespective of resource recycling temperature and composition with BIOCLENS used to remove TN f
Slide 21: New ATA Technology: Rapid Tailings Dewatering Technology
New ATA™ Technology: Rapid Tailings Dewatering Technology ATA™ targets large tailings management market and has strong synergy with CLEAN-IX® metal recovery Tailings Storage Facilities (TSF) • Enormous dams containing fine ore particles suspended in water • Catastrophic environmental and health impa
Slide 22: Project Case Study: Townsville Water Treatment Facility
Project Case Study: Townsville Water Treatment Facility project In July 2022, Clean TeQ Water announced an order for a 15 MLD Recycled Water Treatment Facility in Townsville, Queensland • Order received from civil partner for 15 megalitres per day (MLD) Recycled Water Treatment Facility in Townsvill
Slide 23: Project Case Study: Laramba Uranium removal through IX
Project Case Study: Laramba Uranium removal through IX In May 2022, Clean TeQ Water announced a material contract with Power Water Corporation to supply a water treatment plant to remove pollutants from bore water in Laramba to meet Australian Drinking Water Guidelines Preliminary plant render Syste
Slide 24: Other Recent Project Examples
Other Recent Project Examples Each project using patented CNQ technology providing basis for further growth in target segment Nutrient pollution in Yellow River Basin Agricultural brine recycling Reinjection water for BP in Middle-East • CNQ unique in removing nitrate to • Brine from world-leading t
Slide 25: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview I. Water Solutions II. NematiQ III. Direct Metal Extraction 4. Financial Summary and Outlook 5. Capital Raising Details 25
Slide 26: Graphene Oxide Membranes
Graphene Oxide Membranes NematiQ has developed a ground-breaking* technology that unlocks manufacturing at scale in a $5B** market NematiQ, a 100% owned subsidiary of Clean TeQ Water has developed a ground-breaking technology to produce Focus Markets Graphene Nanofiltration Membranes at industrial s
Slide 27: NematiQ Team
NematiQ Team – NematiQ is a 100% owned subsidiary of Clean TeQ Water • NematiQ is run as a standalone entity with highly credentialed management team (shown to the right) • Based in Melbourne which locates: ▪ Lab ▪ Graphene ink preparation ▪ Testing facilities including QA and QC ▪ Pilot plant assem
Slide 28: Graphene Membranes approaching commercial launch
Graphene Membranes approaching commercial launch Ground-breaking technology that unlocks manufacturing at scale Development low cost mass Market introduction Commercial Applied R&D manufacturing process through piloting Sales 2016 2017 2018 2019 2020 2021 2022 2023 2024 Field pilots for long term Co
Slide 29: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview I. Water Solutions II. NematiQ III. Direct Metal Extraction 4. Financial Summary and Outlook 5. Capital Raising Details 29
Slide 30: Direct Metal Extraction
Direct Metal Extraction Clean TeQ Water is currently in commercial discussions for large metal recovery projects Unique Technology Focus on tailings management Obtain Share in metal & new energy metals recovery upside Our metal recovery The focus is on mine tailings and The business model is to tech
Slide 31: Direct Lithium Extraction
Direct Lithium Extraction Direct lithium extraction (DLE) can significantly improve the industry’s ability to meet soaring demand McKinsey1 on lithium demand and DLE: • Lithium demand to rise from approximately 500,000 in 2021 to 3-4 metric tons of lithium carbonate equivalent (LCE) in 2030 • Alongs
Slide 32: Direct Lithium Extraction technology now used in China
Direct Lithium Extraction Direct Lithium Extraction using Clean TeQ’s continuous process, has the potential to provide significant economic advantages DLE now used commercially in Chinese lithium brine projects DLE Technology now used in • Adsorbent based technology is used to extract lithium from s
Slide 33: Partners to LOI to form Joint Venture for Direct Lithium Extraction
Partners to LOI to form Joint Venture for Direct Lithium Extraction Leader in subsurface mapping, utilizing World leading Direct Metal Highly selective ion exchange technology proprietary algorithms & AI to find lithium Extraction expertise with patented allowing Direct Lithium Extraction from brine
Slide 34: Intended Path to Commercialization
Intended Path to Commercialization Clean TeQ Water is exploring entry into the DLE market through partnerships Joint venture Acquire (options) on Lithium assets Demonstration pilot Preliminary Bankable Intentional partners Company Formed Feasibility Study plant trials at location Feasibility Study i
Slide 35: Direct Lithium Extraction has seen major recent activity
Direct Lithium Extraction has seen major recent activity LITHIUM Many new start-up ASX:LKE announcements for DLE Pre-DFS Kachi project in Argentina (JV with Lilac Technology Private, UK Solutions) Focused on clay Private, NZ and geothermal brine deposits in Moving to piloting • Significant investmen
Slide 36: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview 4. Financial Summary and Outlook 5. Capital Raising Details 36
Slide 37: Strong Momentum
Strong Momentum Project sales show strong acceleration since delivering our first projects Today • Successful delivery of large scale projects in certain regions and Townsville sectors is an important driver of future growth • Those first projects also enable NT – IX bidding for larger scale project
Slide 38: Strong Momentum: Targeting 75% Revenue Growth
Strong Momentum Revenues have increased rapidly over the past two years Total Revenues (A$ million) • FY2022 Sales revenue of $10.8 million over 90% from Water Technology Solutions Targeting 75% Revenue Growth • Bright FY2023 revenue outlook with an open order book of $16 million 10.82 • Operating l
Slide 39: Strong pipeline of new customer opportunities
Strong pipeline of new customer opportunities Pipeline of opportunities well diversified across sectors and solutions (excluding China and NematiQ) • Opportunity split based on pipeline with Sector Split by value of pipeline Technology Split by value of pipeline over a hundred opportunities that Cle
Slide 40: Revenue growth drivers in water solutions
Revenue growth drivers in water solutions Four triggers that will drive sustained revenue growth and improved margins across the business New demonstration plants Access to larger scale Accelerating time of Underlying increase in new regions, with new projects delivery of repeat business technologie
Slide 41: Outlook
Outlook Clean TeQ Water is set to deliver strong news flow through the remainder of FY23 Strong tailwinds from global focus on increasing water availability, addressing persistent micropollutants, and eliminating secondary waste Targeting FY2023 annualised revenue growth of 75%, Accelerating growth
Slide 42: Agenda
1. Company Overview 2. Industry Overview 3. Product/Project Overview 4. Financial Summary and Outlook 5. Capital Raising Details 42
Slide 43: Capital Raising Details
Capital Raising Details Clean TeQ Water is undertaking a capital raising of approximately A$5 million via a two tranche placement Industrial Brine Treatment Municipal Effluent Re-Use • A two-tranche placement to institutional, sophisticated and professional investors of approximately A$5m, comprisin
Slide 44: Use of Funds
Use of Funds The capital raising will strengthen the balance sheet and expand commercial capabilities Industrial Brine Treatment Municipal Effluent Re-Use Items A$ million NematiQ – Construction of three demonstration scale membrane plants 1.0 Demonstration of proprietary Direct Lithium Extraction T
Slide 45: Timetable
Timetable Offer timetable Industrial Brine Treatment Municipal Effluent Re-Use Key Dates Trading Halt Lifted and Placement announced Thursday, 27 October 2022 Settlement of tranche 1 Placement shares Wednesday, 2 November 2022 Allotment of tranche 1 Placement shares Thursday, 3 November 2022 AGM to
Slide 46: Appendix
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Slide 47: Clean TeQ Water Recent History
Clean TeQ Water Recent History Clean TeQ Water is at the beginning of a large inflection point in its history as it transitions into a commercialisation growth phase Demerger to create standalone water technology company Pre 2017 2017 2018 2019 2020 2021 2022 Sunrise Ni, Co, Sc Reorient portfolio on
Slide 48: P&L for Period 15 February 2021 to 30 June 2022
P&L for Period 15 February 2021 to 30 June 2022 Consolidated 2022 • Loss of $11m for the 16.5 month period (15 $ February 2021 to 30 June 2022) Revenue 11,353,582 Raw materials and other direct costs (11,013,546) • Projects gross margin on total revenues Gross margin 340,036 close to zero over the p
Slide 49: Upwell Financing Agreement
Upwell Financing Agreement Clean TeQ Water‘s financing partnership opens up new value creation avenues • Upwell Water LLC is a US based technology-focused water resource and infrastructure company that currently owns and operates both legacy and new- build water assets • Upwell intends to deploy US$
Slide 50: Key Risks
Key Risks Company and industry risks Ability to win and • Clean TeQ Water's business is dependent on the securing of contracts to provide product design and engineering services to customers in the water, mining, industrial, municipal and retain key customers Industrial other sectors. Clean TeQ Wate
Slide 51: Key Risks (continued)
Key Risks (continued) Company and industry risks (continued) Intellectual Property • Clean TeQ Water's core business is to create value through technology, and one of Clean TeQ Water's most significant assets is its intellectual property rights in products which it has Rights developed. Clean TeQ Wa
Slide 52: Key Risks (continued)
Key Risks (continued) General (continued) Liquidity risk • There can be no guarantee that an active trading market for Clean TeQ Water’s shares is maintained. There may be relatively few or many potential buyers and sellers of the shares on the ASX atIndustrial Brine any time. This Treatment may inc
Slide 53: International Offer Restrictions
International Offer Restrictions Clean TeQ Water This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered
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