Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — Investor Presentation (March 2018)
43 slides from Sunrise Energy Metals's investor presentation, March 2018
Slide 1: Equity Raising Investor Presentation
EQUITY RAISING INVESTOR PRESENTATION MARCH 2018 NOT FOR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared by the management of Clean TeQ Holdings Limited (“Clean TeQ “ or 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 bas
Slide 3: Disclaimer: Forward Looking Statements (continued)
DISCLAIMER FORWARD LOOKING STATEMENTS (continued) All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments,
Slide 4: Disclaimer: Not an Offer Document
DISCLAIMER NOT AN OFFER DOCUMENT This presentation is not a prospectus, product disclosure statement or other offering 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 purpos
Slide 5: Equity Raising Details
EQUITY RAISING DETAILS SUNRISE PA G E 4
Slide 6: Equity Raising Overview
EQUITY RAISING OVERVIEW CLEAN TEQ IS CONDUCTING AN INSTITUTIONAL PLACEMENT UNDERWRITTEN TO RAISE A MINIMUM OF A$150,000,000 Offer Structure and Institutional Placement to be conducted via two tranches (“Equity Raising”): Size • an unconditional tranche of approximately A$100 million under ASX Listin
Slide 7: Use of Proceeds
USE OF PROCEEDS ACCELERATING THE DEVELOPMENT OF SUNRISE Equity raising expected to significantly Use of Proceeds Detailed engineering and design for process advance and accelerate development plant and associated infrastructure of Sunrise Brings forward engineering and detailed Long lead item pr
Slide 8: Timetable
TIMETABLE 1 KEY EVENT DATE1 Trading halt and announce Placement and SPP Thursday 8 March 2018 Announcement of outcome under Placement Friday 9 March 2018 SPP Record Date 7.00pm, Wednesday 7 March 2018 Settlement of new shares issued under Placement Tranche 1 Wednesday 14 March 2018 Allotment and tra
Slide 9: Company Overview
COMPANY OVERVIEW SUNRISE PA G E 2
Slide 10: Senior Management
SENIOR MANAGEMENT EXPERTISE WHERE HIGH-TECH MEETS RESOURCE DEVELOPMENT MANAGEMENT TEAM Sam Riggall CHIEF EXECUTIVE OFFICER Ben Stockdale Tim Kindred Willem Vriesendorp CHIEF FINANCIAL OFFICER OPERATIONS DIRECTOR GENERAL MANAGER WATER DIVISION BOARD Robert Friedland Zhaobai Jiang CO-CHAIR AND CO-CHAI
Slide 11: Investment Highlights
INVESTMENT HIGHLIGHTS METALS Clean-iX® WATER Development of the Clean TeQ Sunrise Innovative and low-cost solutions to treat Ni-Co-Sc Project to supply the rapidly ION EXCHANGE waste water streams for potable use expanding lithium-ion battery industry TECHNOLOGY and recycling applications CLEAN TEQ
Slide 12: Recent Developments
RECENT DEVELOPMENTS ACCELERATING THE DEVELOPMENT OF CLEAN TEQ SUNRISE Mining Leases granted for Sunrise Project Clean TeQ Share Price march 2017 February 2018 A$ per share MLA banks appointed to arrange project $1.80 debt funding march 2017 December 2017 $1.60 Upgraded mineral resource confirm
Slide 13: Near-Term Objectives
NEAR-TERM OBJECTIVES FAST-TRACK SUNRISE TO MEET DEMAND FOR CATHODE MATERIALS 01 Complete the Definitive Feasibility Study in Q2 2018 02 Secure further offtake agreements with strategic counterparties during 2018 03 Continue progress towards fully financing Sunrise 04 Optimise development plan to acc
Slide 14: Cathode Market
CATHODE MARKET SUNRISE PA G E 7
Slide 15: Significant Raw Materials Shortage for Battery Sector
CATHODE MARKET SIGNIFICANT RAW MATERIALS SHORTAGE FOR BATTERY SECTOR The outlook for Electric Vehicles (EVs) is 2017 Global Nickel Production compelling, with significant investment in the Chinese and European production Low grade nickel products High purity (+99% Ni) nickel products capacity Fe
Slide 16: Industry Demanding Metal Salts
INDUSTRY DEMANDING METAL SALTS SULPHATES ARE THE KEY RAW MATERIALS High purity cobalt Cobalt Sulphate sulphate and nickel sulphate in demand from cathode precursor manufacturers Clean TeQ Sunrise has Nickel Sulphate the ability to produce high purity sulphate products without costly intermediate
Slide 17: Clean TeQ Sunrise
CLEAN TEQ SUNRISE SUNRISE PA G E 1 6
Slide 18: Clean TeQ Sunrise: Advanced Development Project Located in NSW
CLEAN TEQ SUNRISE ADVANCED DEVELOPMENT PROJECT LOCATED IN NSW 100% owned by Clean TeQ and located Sunrise 350km west of Sydney in an established Project mining region Laterite (iron-hosted) mineral resource, rich in nickel, cobalt and scandium Uniquely positioned as one of the largest and high
Slide 19: Known Geology
KNOWN GEOLOGY ONE OF AUSTRALIA’S LARGEST UNDEVELOPED NICKEL-COBALT RESOURCES Over 1,300 drill holes provide for strong geological Ore Reserves Estimate1,3 understanding of the resource Classification Mt Ni % Co % The resource is shallow (5m to 40m) and extends Proved 55 0.71 0.10 over a 2km hori
Slide 20: Simple Low Risk Mining Operation
SIMPLE LOW RISK MINING OPERATION SIMPLE AND LOW COST OPEN-PIT MINING AT SHALLOW DEPTHS Shallow deposit allows for simple strip-mining method and is amenable to free digging, with minimal grinding and beneficiation Low average strip ratio Average C1 operating cash cost of US$3.86/lb nickel or U
Slide 21: Clean-iX Processing
CLEAN-iX® PROCESSING SULPHATE FROM PRIMARY ORE PROCESSING Clean–iX® process removes Ore Leach Slurry High Concentration Nickel / Cobalt Nickel & Cobalt Solution Sulphates intermediate processing steps Large scale pilot plant located HPAL Ion Exchange Purification / SX in Perth to simulate the en
Slide 22: 2016 PFS Highlights
2016 PFS HIGHLIGHTS LARGE, LOW-COST AND WITH ATTRACTIVE ECONOMICS NI 43-101 Technical Report completed in Nickel sulphate production1 85.1ktpa October 2017 demonstrated highly favourable Contained nickel production1 18.7ktpa economics Cobalt sulphate production1 15.3ktpa Processing of 2.5M
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 Cobalt grade increase from LOM REVENUE2 40 recent resource update Spot prices 10.0 provides potential to 35 increase annual cobalt 8.0 Metal equiva
Slide 24: Offtake / Customer Strategy
OFFTAKE / CUSTOMER STRATEGY BINDING OFFTAKE AGREEMENT WITH BEIJING EASPRING SEEKING ADDITIONAL CONTRACTS IN 2018 Clean TeQ has agreed a binding five year offtake with Beijing Easpring for 20% of future production Binding five-year offtake agreement for 20% of cobalt and nickel sulphate productio
Slide 25: Project Is Development Ready
PROJECT IS DEVELOPMENT READY KEY PERMITS OPERATIONAL NEAR-TERM OBTAINED READINESS OBJECTIVES STUDIES WATER POWER & GAS OFFTAKE Prefeasibility study The Project has a Power and gas are Binding offtake DFS FUNDING completed 3.2GLpa water within close signed with Beijing Complete Definitive Continue pr
Slide 26: Appendix
APPENDIX SUNRISE PA G E 2 5
Slide 27: Company Overview
COMPANY OVERVIEW CLEAN TEQ MISSION CAPITAL STRUCTURE ASX/TSX code CLQ Clean TeQ seeks to own, joint venture or develop assets where the application of our technical approach unlocks significant value ASX Share Price (7 March 2018) A$1.225 Shares 590.5 M Clean TeQ targets metals that are highly geare
Slide 28: Scandium
SCANDIUM A NEW GENERATION OF LIGHTWEIGHT ALLOYS Sunrise is one of the world’s largest and Airbus Group’s Light-rider highest grade scandium resources Scandium is used to provide next generation lightweight aluminium alloys for key transportation markets Clean TeQ continues to promote the use a
Slide 29: Reserves and Resources: Competent & Qualified Person Consents
RESERVES AND RESOURCES COMPETENT & QUALIFIED PERSON CONSENTS The information in this document that relates to nickel-cobalt Mineral Resources from the 2016 Pre Feasibility Study is based on information compiled by Diederik Speijers and John McDonald, who are Fellows of The Australasian Institute of
Slide 30: Reserves and Resources: Competent & Qualified Person Consents
RESERVES AND RESOURCES COMPETENT & QUALIFIED PERSON CONSENTS Lynn Widenbar, Principal Consultant (Widenbar & Associates), BSc (Geology)(Hons), MSc (Mineral Exploration) (Hons), DIC, MAusIMM, MAIG, by virtue of his education, membership of a recognised professional association and relevant work exper
Slide 31: Appendix: Key Risks
APPENDIX: KEY RISKS An investment in Clean TeQ Holdings Limited ("CLQ") should be considered speculative due to the nature of CLQ’s business and its earlier stage of development. Investments in mineral exploration and development issuers, such as CLQ, involve a significant degree of risk. The explor
Slide 32: Appendix: Key Risks
APPENDIX: KEY RISKS C) Uncertainty in the Estimation of Mineral Resources Estimating the quantity and quality of Mineral Resources is an inherently uncertain process and the Minerals Resources stated and any Mineral Resources and Reserves CLQ states in the future are and will be estimates, and may n
Slide 33: Appendix: Key Risks
APPENDIX: KEY RISKS H) Water Supply Risk The bulk of the raw water demand will be sourced from the Sunrise Project’s borefield 65 km south of the mine which is licenced for an abstraction rate of 3.2 GL/annum. This amount covers water requirements in terms of potable water, fire water, high pressure
Slide 34: Appendix: Key Risks
APPENDIX: KEY RISKS L) Nickel Sulphate, Cobalt Sulphate and Scandium Product Prices and Demand CLQ intends to earn future profits primarily from the production and sale of Nickel Sulphate, Cobalt Sulphate and Scandium. Demand is affected by numerous factors beyond CLQ's control, including the overal
Slide 35: Appendix: Key Risks
APPENDIX: KEY RISKS P) Exchange Rate Risk Revenues from the sale of mineral products are primarily transacted in US dollars. Costs incurred by CLQ are primarily in Australian currency. The Sunrise Project operations are located in Australia and most of the property related expenditures, production e
Slide 36: Appendix: Key Risks
APPENDIX: KEY RISKS T) Mining is inherently dangerous and subject to factors or events beyond CLQ’s control (continued) These risks, conditions and events could result in: (i) damage to, or destruction of, the value of, the Sunrise Project or their facilities; (ii) personal injury or death; (iii) en
Slide 37: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS INTERNATIONAL OFFER 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 Ne
Slide 38: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS Statutory rights of action for damages and rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to damages, or both, when an offering memoran
Slide 39: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS France This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code monétaire et fin
Slide 40: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS New Zealand The New Shares are not being offered to the public within New Zealand other than to existing shareholders of the Company with registered addresses in New Zealand to whom the offer of New Shares is being made in reliance on the Financial Markets
Slide 41: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclos
Slide 42: Appendix: International Offer Restrictions
APPENDIX: INTERNATIONAL OFFER RESTRICTIONS United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or
Slide 43: Sam Riggall, Chief Executive Officer, Clean TeQ Holdings Limited
Sam Riggall Clean TeQ Holdings Limited Chief Executive Officer 12/21 Howleys Rd Notting Hill VIC 3000 M: +61 3 9797 6700 AUSTRALIA E: sriggall@cleanteq.com www.cleanteq.com SUNRISE PA G E 4 2
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