Ioneer Limited · ASX:INR
Ioneer — Investor Presentation (November 2019)
41 slides from Ioneer's investor presentation, Nov 21, 2019
Slide 1: Equity Raising Presentation
Equity Raising Presentation 21 November 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important notices and disclaimers
Important notices and disclaimers IMPORTANT: You must read the following before continuing. This presentation has been prepared by ioneer Ltd (ABN 76 098 564 606) (and / or its subsidiaries, as the context requires, “Company”, “ioneer” or “INR”) in relation to an institutional placement (“Placement”
Slide 3: Important notices and disclaimers (continued)
Important notices and disclaimers (continued) Non-IFRS Financial Measures Investors should also be aware that certain financial data included in this presentation may be "non‐IFRS financial information" under Regulatory Guide 230 Disclosing non‐IFRS financial information published by the Australian
Slide 4: Important notices and disclaimers (continued)
Important notices and disclaimers (continued) Investment risk An investment in New Shares is subject to investment and other known and unknown risks, some of which are beyond the control of ioneer, including possible delays in repayment and loss of income and principal invested. The Company does not
Slide 5: Important notices and disclaimers (continued)
Important notices and disclaimers (continued) Conflicts Disclosure The Joint Lead Managers are, together with their respective affiliates, full service financial institutions engaged in various activities, which may include trading, financial advisory, investment management, investment research, pri
Slide 6: Equity Raising to Advance Rhyolite Ridge Lithium-Boron Project and fund ioneer through to FID
Equity Raising to Advance Rhyolite Ridge Lithium- Boron Project and fund ioneer through to FID NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES • One of only two known large Li-B deposits globally • Low cost, simple process in 1st quartile of global lithium cost curve given benefit of boron co-p
Slide 7: Equity Raising Overview
Equity Raising Overview NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES • Fully underwritten institutional placement (“Equity Raising” or “Placement”) to professional and sophisticated investors to raise A$40 million (the “Offer”) • As part of the Placement, US based private capital investor Ce
Slide 8: Sources and Uses of Funds from the Capital Raising
Sources and Uses of Funds from the Capital Raising Capital raising will: Sources of Funds NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Proceeds from Capital Raising A$40m Strengthen Balance Sheet Total A$40m Aid completion of Definitive Feasibility Study Uses of Funds US$m A$m1 Advance detai
Slide 9: Equity Raising Timetable
Equity Raising Timetable NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Event Date (2019)¹ Trading Halt Thursday 21 November Announcement of Completion of Equity Raising Pre Market Open, Friday 22 November Trading Halt Lifted, Trading Recommences Pre Market Open, Friday 22 November Settlement
Slide 10: Project Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX: INR Project Overview 10
Slide 11: Key milestones achieved
Key milestones achieved Delivered Pre-Feasibility Study NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Upgraded lithium-boron Resource Constructed, developed and operated full simulation Pilot Plant Produced and delivered to customers high quality lithium and boron material Largely completed D
Slide 12: Rhyolite Ridge PFS (October 2018)
Rhyolite Ridge PFS (October 2018) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Lithium carbonate = 20kt p.a. Boric acid = 173kt p.a. Annual Annual Total Capex Revenue EBITDA $450M $599M $297M After-tax After-tax NPV IRR Cashflow (7% real): $6.6B $1.8B 28% Operating costs with boric acid cred
Slide 13: Rhyolite Ridge Resource Upgrade (June 2019)
Rhyolite Ridge Resource Upgrade (June 2019) June 2019 Oct 2018 June 2019 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Upper Zone Measured + Measured + Measured Indicated Resource Indicated Resource Resource Tonnage mt 104.1 130.5 27.5 Lithium Grade ppm 1,700 1,597 1,900 Boron Grade ppm 12,80
Slide 14: Pilot Plant – simulating commercial processes
Pilot Plant – simulating commercial processes Achieved key objectives NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Confirmed fundamental process flowsheet Enhancement testwork is near complete Identified opportunity for process enhancements Results of testwork very encouraging Produced high
Slide 15: Lithium carbonate quality confirmed
Lithium carbonate quality confirmed Rhyolite Typical Industry Typical Industry Compound or Element Units Ridge 1. Specifications (Brine) Specifications (Spodumene) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Lithium Carbonate (technical grade) % >99.0 >99.0 >99.0 Calcium ppm 381 350 400 Chl
Slide 16: DFS largely complete
DFS largely complete On track for delivery in Q120 Targeting 30% engineering completion Recent flowsheet enhancements being NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES incorporated into engineering design Leach Vats Acid Plant Process Plant 16
Slide 17: Offtake & Strategic Partner Discussions
Offtake & Strategic Partner Discussions Active negotiations with potential strategic financial and offtake partners are continuing: NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES • 20 partners toured the Pilot Plant • Discussions ongoing 30 product samples sent to potential customers around th
Slide 18: Progress on Permitting
Progress on Permitting NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Completed environmental baseline studies over a two-year period Two main areas identified as requiring additional attention: • Socio-economic impacts of operation • A sensitive plant species Plan of Operation to be submitted
Slide 19: Company Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX: INR Company Overview 19
Slide 20: Corporate snapshot
Corporate snapshot Capital Structure Share price (As at 19 November 2019) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 0.30 19 November 2018 – 19 November 2019 Shares outstanding 1.478B 0.25 0.20 Performance Rights and 54.6m 0.15 Options outstanding 0.10 0.05 Cash balance (30/09/19) A$34.7m
Slide 21: Rhyolite Ridge – What sets it apart from other lithium deposits?
Rhyolite Ridge – What sets it apart from other lithium deposits? • Lithium Carbonate: >20kt pa, expected to be largest producer in the US Lithium & Boron NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES • Boric Acid: >170kt pa, expected to be third largest producer in the world • One of only two
Slide 22: ioneer Board of Directors
ioneer Board of Directors NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES James D. Calaway Alan Davies Patrick Elliott John Hofmeister Bernard Rowe Non-executive Non- Non- Non-executive Managing Chairman executive executive Director Director Director Director Former: Former: Former: Former: Non
Slide 23: Key partners
Key partners EPCM Evaporation Acid Plant NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Material Handling Acid Plant Controls Mining Pilot Plant Spent Ore Environment Leaching 23 ASX: INR
Slide 24: Lithium & Boron Markets
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX: INR Lithium & Boron Markets 24
Slide 25: Essential materials for a modern world
Essential materials for a modern world Borates ≈4% CAGR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES LCE ≈18% CAGR Lithium Boron Lithium essential to all types of electric Used in strengthened glass and vehicle (EV) batteries permanent magnets EV soon to be preferred vehicle Steady borate de
Slide 26: Lithium - classed as a critical US mineral
Lithium - classed as a critical US mineral Rhyolite Ridge can supply US domestic lithium in a secure and sustainable manner NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Tesla Bipartisan American Mineral Security Act Battery Gigafactory introduced to complement Executive Target 50 GWh LG Chem
Slide 27: Boron - a diverse material
Boron - a diverse material Broad range of essential uses mitigates reliance on single sector (~300) NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES USA and China housing markets important drivers of demand Increasing demand from agriculture, solar, specialty glass and permanent magnets Demand c
Slide 28: Forward catalysts for the year ahead
Forward catalysts for the year ahead Complete DFS engineering by Q120 and continue NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES advancing post DFS, targeting completion of 50% engineering Finalise material offtakes for boron and lithium Conclude strategic partnering Undertake environmental r
Slide 29: Indicative Project schedule
Indicative Project schedule NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Event Date1 Deliver Definitive Feasibility Study (DFS) Q1 2020 Detailed Engineering (50%) & Long Lead items Q1 2020 - Q4 2020 State permitting process Q1 2020 - Q4 2020 Federal permitting process (EIS2) Q1 2021 Final In
Slide 30: Appendices
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX: INR Appendices 30
Slide 31: Pilot Plant
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Pilot Plant 31
Slide 32: June 2019 Mineral Resource Estimate
June 2019 Mineral Resource Estimate Lithium-Boron (Searlesite) Mineralisation (5,000ppm Boron Cut-off) Contained Tonnes Group Classification Tonnage Li B Li2CO3 H3BO3 Li2CO3 Boric Acid NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES mt ppm ppm % % kt kt Measured 27.0 1,900 18,000 1.0 10.3 270 2
Slide 33: Key Risks
Key Risks There are a number of factors, specific to the Company and of a general nature, which may affect the future operating and financial performance of the Company and the industry in which it operates. This section discusses some of the key risks associated with an investment in shares in the
Slide 34: Key Risks
Key Risks Production and cost estimates The Company has prepared a range of target cash costs for its operations. No assurance can be given by the Company that such targets will be achieved. Capital costs may be affected by unexpected modifications to plant design, changes to estimates of non-fixed
Slide 35: Key Risks
Key Risks Funding risk The Company's continued ability to operate its business and effectively implement its business plan over time will depend in part on its ability to raise funds for operations and growth activities. There can be no guarantee that the Company will be able to raise sufficient fun
Slide 36: Key Risks
Key Risks Contract and counterparty risk The ability of the Company to achieve its stated objectives will depend on the performance of contractual counterparties. The Company may enter into various agreements for the construction, development and operation of the Rhyolite Ridge Project (including th
Slide 37: Key Risks
Key Risks Government actions The Company’s operations could be adversely affected by government actions in the United States or other countries or jurisdictions in which it has operational exposures or investment or exploration interests. These actions include, but are not limited to, the introducti
Slide 38: Key Risks
Key Risks Global economic conditions Economic conditions, both domestic and global, may affect the performance of the Company. Adverse changes in macroeconomic conditions, including global and country‐specific growth rates, the cost and availability of credit, the rate of inflation, interest rates,
Slide 39: Key Risks
Key Risks Political risk, war and terrorism, force majeure and sovereign risk The Company’s operations could be affected by political instability in Australia, the United States or other countries or jurisdictions in which it has operations, investment interests, or conducts exploration activities.
Slide 40: Selling Restrictions
Selling Restrictions 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 or sold, in any country out
Slide 41: Selling Restrictions
Selling Restrictions United States This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The New Shares to be offered and sold in the Offer have not been, and will not be, registered under the U.S. Securities Act 1933, as