Nemaska Lithium — Investor Presentation (September 2018)
34 slides from Nemaska Lithium's investor presentation, September 2018
Slide 1: Corporate Presentation September 2018
Corporate Presentation September 2018
Slide 2: Forward-looking statement
• During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to the Company’s projects, business strategy and plan, which could be construed as forward-looking. Forward- • Such forward-looking statements are subject to risks and uncertainties that could
Slide 3: Overview
NEMASKA LITH]UM Overview
Slide 4: Corporate Overview
Corporate Overview Fully Funded Project • Nemaska is fully funded for project construction plus one year of working capital following the under construction closing of CAD 1.1 B. • Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the Vertically integrated
Slide 5: Nemaska Lithium | Company Overview
Nemaska Lithium | Company Overview Nemaska Lithium's Accomplishments to Date Next Steps Large bulk sample producing ~1,100 Construction and development of 1 tonnes spodumene commercial operations targeting(1) concentrate @ 6.25% (Li2O) ✓ Start commercial production of spodumene concentrate in Q3 201
Slide 6: Logistics | From Deposit to Customer
Logistics | From Deposit to Customer Whabouchi Chibougamau Shawinigan ~300 km from Whabouchi to Chibougamau ~555 km from Chibougamau to Shawinigan Concentrator Truck Train Plant • Producing 6.25% (Li2O) • About 600 tonnes of • It is expected that • Lithium carbonate and spodumene concentrate concent
Slide 7: Project Financing of CAD 1.1B
Project Financing of CAD 1.1B Equity CAD 454M • A 94M private placement from world-leader SoftBank Group Corp. SoftBank also has a right of first offer to purchase up to 20% of lithium salts produced from Shawinigan. • A 80M private placement with Ressources Québec • A 280M public offering through a
Slide 8: Capital Structure | September 04, 2018
Capital Structure | September 04, 2018 Shares outstanding 846,059,338 Options (average exercise price $0.92) – August 2018 to May 2023 34,437,734 Warrants (average exercise price $1.49) – July 2019 30,825,635 Fully Diluted 911,322,707 Distribution (estimated) Management and employees ≈ 6% Ressources
Slide 9: Project Economics Key Figures
Project Economics Key Figures Expected Mine Life and Payback Period Yearly Average Production 33 years Whabouchi Mine with 2.9 year (2 year**) payback period (after-tax) ≈ 213,000 tonnes of concentrate (6.25% Li2O) Average Cost Per Tonne | Spodumene Concentrate Shawinigan Electrochemical Plant ≈ 23,
Slide 10: The Market
NEMASKA LITH]UM The Market
Slide 11: Lithium Uses 2016 and 2026E
Lithium Uses 2016 and 2026E Uses of Lithium in 2016 Uses of Lithium in 2026E Glass Air treatment Other Polymer 1% Primary 0% 2% 1% battery… Greases Air treatment 2% 2% Glass-ceramics Primary battery 3% Rechargeable 2% Other battery Ceramics 9% 42% 3% Metallurgical powders 4% Glass 5% Total demand Po
Slide 12: Gigafactories Driving Demand for Lithium
Gigafactories Driving Demand for Lithium 10x in Expected Lithium Demand from Gigafactories between 2016 – 2021E tonnes battery grade 24 000 tonnes battery grade LCE consumption 260 000 per LCE consumption year expected in 2021 per year in 2016 325 37 38 34 34 5 4 5 4 15 27 34 GWh per year 34 167 183
Slide 13: Lithium Demand Per Product 2016 - 2031
Lithium Demand Per Product 2016 - 2031 13 Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018
Slide 14: Pricing Outlook
Pricing Outlook Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide 21,000 20,200 900 850 19,000 18,800 19,000 790 17,800 800 17,050 16,700 17,000 700 15,700 15,500 700 14,750 15,000 13,900 14,100 630 USD per tonne USD per tonne 13,183 610 600 12,750 590 13,000
Slide 15: A World-Class Project
NEMASKA LITH]UM A World-Class Project
Slide 16: Nemaska Lithium Project Overview
Nemaska Lithium Project Overview • One of North America’s largest spodumene deposits located in the Eeyou Istchee James Bay region, Canada • 33 years initial mine life. • Expected to produce 213,000 tonnes/y of 6.25% (Li2O) spodumene concentrate Reserve Overview Fully-Integrated Lithium Producer Cat
Slide 17: Whabouchi Mine | Infrastructure around mine site
Whabouchi Mine | Infrastructure around mine site Mine Overview • The Whabouchi Mine in Nemaska is hooked to the grid from the Nemiscau substation located 13 km to the West • Whabouchi Mine property crossed by Route du Nord, which connects Chibougamau and James Bay Road. • The Nemiscau Airport is loc
Slide 18: Electrochemical Plant | Existing Buildings in Shawinigan
Electrochemical Plant | Existing Buildings in Shawinigan Hydroelectric Power Plant Electrochemical Plant Anticipated commissioning Q3-2020 Phase 1 Plant Commissioned in Q1-2017 and in production 18 18
Slide 19: A Unique Process | Whabouchi Mine & Electrochemical Plant
A Unique Process | Whabouchi Mine & Electrochemical Plant 19
Slide 20: Nemaska Purity Hydroxide Compares Well
Nemaska Purity Hydroxide Compares Well Lithium Hydroxide Grade Comparison Purity Comparison LiOH grade Market NMX Nemaska Lithium 57.5% Product specifications(1) Specifications LiOH, wt% 54.8 - 56.5 57.5 FMC Corporation 56.5% Ca, mg/kg 10 – 100 <1 Na, mg/kg 20 – 500 < 20 K, mg/kg 10 – 250 < 10 Albem
Slide 21: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Hydroxide Cost Curve 2021E USD per tonne lithium hydroxide Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium 21 Technical and battery grades; SQM, Albemarle and FMC costs assume lithium carbonate procured interna
Slide 22: Nemaska to Become a Low Cost Producer
Nemaska to Become a Low Cost Producer Lithium Carbonate Cost Curve 2021E USD per tonne lithium carbonate Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium 22 Note: Battery and technical grades: Includes direct carbonate production from raw materials (brine a
Slide 23: Our Team
NEMASKA LITH]UM Our Team
Slide 24: Board of Directors
Board of Directors • Over 30 years as a mechanical • Chief Operating Officer and director at engineer and senior executive. Stornoway • Former President & COO at • Prior to that, he was with G Services Bombardier’s Recreational Products Miniers Inc., Canadian Royalties and division and EVP of Bombar
Slide 25: Senior Management
Senior Management • President & CEO of Nemaska since inception in 2008. Guy Bourassa(1) • Over 33 years of mining experience. President & CEO, • Currently a director of Nouveau Monde Graphite and Monarques Gold Director Corporation. • CFO of Nemaska since inception in 2008. Steve Nadeau • Over 20 ye
Slide 26: Technical Team
Technical Team • Professional engineer with over 20 years of experience in the metallurgical Jean-François industry and the lithium battery industry. Magnan • Author/inventor of several patents in the rechargeable lithium battery Technical Manager industry. Bertin Ouellet • Professional chemical eng
Slide 27: Construction and Operation Team
Construction and Operation Team • Senior mechanical engineer in the industrial field with over 30 years of Yves Painchaud significant experience in major construction sites in Québec. Construction Project • Held various management positions over his career and has managed and Manager supervised his
Slide 28: Moving Forward
NEMASKA LITH]UM Moving Forward
Slide 29: Construction Schedule
Construction Schedule 2018 2019 2020 Whabouchi Mine Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Engineering(1) Procurement(1) Manufacturing(1) Delivery Construction(1) Pre-operational verification Ramp up and commercial production Shawinigan Electrochemical Plant Engineering(1) Procurement(1) Manufacturing
Slide 30: Capital Expenditure Forecast by Project Quarter
Capital Expenditure Forecast by Project Quarter 160 Whabouchi Mine 700 Electrochemical Plant 616 140 136 Cummulative Project 600 118 120 500 100 81 86 400 USD million USD million 66 81 76 80 300 46 56 60 51 60 200 40 33 55 53 53 17 100 20 40 14 4 29 33 12 16 14 1 0 3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 31: Quality Offtake Agreements Secured
Quality Offtake Agreements Secured • Johnson Matthey is a global specialty • FMC is a U.S. chemical manufacturing chemicals company. company based in Philadelphia, Pennsylvania, United States of America. • Johnson Matthey focuses on clean air, clean energy and low carbon technologies and is an • FMC
Slide 32: Quality Offtake Agreements Secured
Quality Offtake Agreements Secured • With over 20 years’ experience of development • Northvolt was founded in 2016 with the mission and production of batteries, LG Chem has to build the world's greenest battery, with a established itself as one of the world’s leading minimal carbon footprint and the
Slide 33: Project Summary | Key investment takeaways
Project Summary | Key investment takeaways Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction 1 2 3 4 5 Near term To become the Unique location Proven commercial lowest cost World-class and process of production producer of producer of counterparties processing proces
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