Neometals Ltd · ASX:NMT
Neometals — Shareholder Meeting (November 2016)
48 slides from Neometals's shareholder meeting presentation, Nov 25, 2016
Slide 1: Annual General Meeting Presentation
For personal use only Annual General Meeting Presentation ASX Code: NMT November 2016 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: For personal use only
For personal use only 3 + = + =
Slide 4: Current Strategy
Current Strategy For personal use only • Increased Mt Marion production plan 60% to 50kt LCE • Advanced project to add value to offtake rights with LiOH MOU • Secured rights to, and advanced the commercialisation of, Neomet Process with Sedgman • Attracted senior mining executives Mike Tamlin to COO
Slide 5: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug ’16 A$5M/5% on market buyback 5
Slide 6: Human & Financial Capital
Human & Financial Capital For personal use only ASX CODE: NMT OTC:RDRUY 12 MONTH SHARE PRICE Last close (23‐Nov‐2016) A$ 0.305 60 Shares on issue m 563 50 40 Market capitalisation A$m 172 30 Net Cash (30‐Sept‐2016) A$m 65.7 20 Listed Investments A$m 13.6 10 0 DIRECTORS/MANAGEMENT Jul-15 Oct-15 Jan-1
Slide 7: Operating structure
Operating structure For personal use only Neometals Ltd (ASX:NMT) LITHIUM TITANIUM 13.8% 70% 100% 100% 42% Reed 43.1% 30% 30% Reed Hannans Alphamet Australian Industrial Mineral Advanced Ltd Management Titanium Minerals Resources Ltd Materials (ASX:HNR) Pty Ltd Pty Ltd Pty Ltd Pty Ltd 43.1% 25% Ganf
Slide 8: Mt Marion Lithium Operation
For personal use only Mt Marion Lithium Operation 13.8% Neometals Ltd 43.1% Ganfeng Lithium 43.1% and Operator Mineral Resources Ltd (ASX:MIN) + = 8
Slide 9: Globally Significant Resource & Production
Globally Significant Resource & Production – 400,000t concentrates containing 50kt LCE For personal use only + = 9
Slide 10: Strong Operating Partner
Strong Operating Partner For personal use only Australia’s largest contract minerals processor Operate mine-to-port on BOO basis No upfront capital cost to NMT Certainty of construction and production timing Minimum production levels (~50ktpa LCE) Fixed rate mining and processing costs
Slide 11: Strong Offtake Partner
Strong Offtake Partner For personal use only China’s leading, most profitable lithium producer Life-of-Mine, Take-or-pay Offtake Agreement At Market Price with floor price protection US$20M Letter of Credit (100% payment on shipping) Ability for MIN/Neometals to take equity share of produc
Slide 12: Lithium Concentrate Prices
Lithium Concentrate Prices For personal use only + = 12
Slide 13: Flythrough
For personal use only 13 Flythrough + =
Slide 14: Crushing - Fully Commissioned
Crushing - Fully Commissioned For personal use only + = 14
Slide 15: Beneficiation – Coarse Circuit complete
Beneficiation – Coarse Circuit complete For personal use only Site works commenced Nov’15 World’s largest hard rock concentrator built from scratch in <12 months despite +40 days lost to rain. 26 August 31 July + = 15
Slide 16: Beneficiation – Commissioning in progress
Beneficiation – Commissioning in progress For personal use only First feed- 28 September + = 16
Slide 17: Beneficiation – Commissioning in progress
Beneficiation – Commissioning in progress For personal use only + = 17
Slide 18: Beneficiation – Stockpiling Finished Product
Beneficiation – Stockpiling Finished Product For personal use only + = 18
Slide 19: Project milestones
Project milestones For personal use only Commence Commission First Commission Crushing Coarse Shipment Fines Circuit Circuit Q2 CY16 End Sep 16 Dec 16 Q1 CY17 New Drill Updated Maiden Resource Results Resource Reserve July 2016 Oct 2016 Oct 2016 Dec 2016 + = 19
Slide 20: Downstream processing: Kalgoorlie Lithium Refinery Project
For personal use only Downstream processing Kalgoorlie Lithium Refinery Project
Slide 21: Strategy – increase margin through downstream processing
Strategy – increase margin through downstream processing For personal use only
Slide 22: Strong demand – constrained supply
Strong demand – constrained supply For personal use only
Slide 23: New Commercialisation Plan
New Commercialisation Plan For personal use only • Locate plant in Goldfields to minimise transport, 7t concentrates needed for 1t of Lithium Hydroxide • Utilise local workforce, reagents and energy infrastructure • Use Conventional Sulfate/Caustic Flowsheet used by leading Chinese Converters • Remo
Slide 24: Downstream processing: ELi Process
For personal use only Downstream processing ELi Process Neometals 70% Mineral Resources 30% + =
Slide 25: Adapted Patented Technology for production of LiOH from LiCl
Adapted Patented Technology for production of LiOH from LiCl For personal use only + = 25
Slide 26: ELi levels playing field for hard rock converters
ELi levels playing field for hard rock converters For personal use only + = 26
Slide 27: ELi potentially slashes brine-based LiOH opex
ELi potentially slashes brine-based LiOH opex vs Li2CO3 causticising For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 27
Slide 28: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 28
Slide 29: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 29 Sources: Company Reports
Slide 30: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 30 Sources: Company Reports
Slide 31: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 31 Sources: Company Reports
Slide 32: Licenced low-cost Technology
Licenced low-cost Technology For personal use only + = 32
Slide 33: Utilising Neomet Process
Utilising Neomet Process For personal use only Competitors Input Price US$1,000/t X1.2t Final Final Chlorination Product ROM Chlorination Product Rutile & Purification Fine Ore/Con & Purification Fine Pigment Pigment Cost Cost US$1,214/t US$2,100 - US$572/t 2,300/t Mini-pilot scale testing in Cana
Slide 34: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Scale Completed Beneficiation Definitive Final Pre-feasibility & Hydromet Feasibility Investment Study Test work * Study * Decision * Aug 2015 CY 2017 CY 2018 Attract JV Partner (*) Subject to Board Approval + = 34
Slide 35: Technology Licensing
For personal use only Technology Licensing Neomet Process Neometals - 25% of royalty revenues + =
Slide 36: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, used commercially for treating refractory copper-gold concentrates, adapted for titanium concentrates. + = 36
Slide 37: Low-cost acid regeneration
Low-cost acid regeneration For personal use only Business model is to licence to new/existing metal producers in return for royalty stream. Advantages • Recovers full strength HCl +32% vs 18% • Almost no HCl loss • Benign tailings + = 37
Slide 38: Sedgman Alliance
For personal use only 38 Sedgman Alliance + =
Slide 39: Third-party ore test-work underway
Third-party ore test-work underway For personal use only Premises leased by Neometals Laboratory scale set up (above) Pilot scale up (below) + = 39
Slide 40: Investment Proposition
40 For personal use only Investment Proposition + = 40
Slide 41: Lithium : Cash and cashflow
Lithium : Cash and cashflow For personal use only 03 02 Potential to further expand 01 13.8% share of production and/or ~A$65M plus Production + increased cashflows from new production + value-add through conversion to commencing level-400,000tpa LiOH Q4-2016 + = 41
Slide 42: Titanium : A growth story for 2017
Titanium : A growth story for 2017 For personal use only 03 01 02 Demonstrate Pigment Quality Demonstrated Technical + Demonstrated Economic + & Obtain Strong Partners Feasibility Viability to Commercialise + = 42
Slide 43: Technology : developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 01 02 Obtained Strong Partner for + Commenced third party testing + Obtain Strong Partner to Commercialise Neomet Process -Neomet Process ELi + = 43
Slide 44: Thank you
For personal use only Thank you www.neometals.com.au + = 44
Slide 45: Mineral Resource Estimate – Mt Marion Lithium
Mineral Resource Estimate for the Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 I
Slide 46: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only FS Life of Plant (LOP) 20 years Pre-production Capital cost US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 82 million Pre-tax Internal Rate of Return 51% Pre-tax NPV (12% real discount rate) US$ 481 million Payback of capital
Slide 47: Mineral Resource Estimate – Barrambie Ti-V
Mineral Resource Estimate for the Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transit
Slide 48: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost [1 A$ 549 million (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)