Core Lithium Ltd · ASX:CXO
Core Lithium — Investor Presentation (February 2020)
24 slides from Core Lithium's investor presentation, Feb 4, 2020
Slide 1: Corporate Presentation
For personal use only Corporate Presentation 4 February 2020
Slide 2: Important and cautionary notes
Important and cautionary notes For personal use only The information in this release that relates to metallurgy and metallurgical test work has been reviewed by Mr Noel O’Brien, The mineral tenements of the Company as described in this presentation are at various stages of exploration, and potential
Slide 3: Important and cautionary notes
Important and cautionary notes For personal use only Competent Person Statements: objectives, performance, outlook, growth, cash flow, projections, targets and expectations, Mineral Resources, results of The Mineral Resources and Ore Reserves underpinning the Production Target have been prepared by
Slide 4: Australia's next lithium producer
Australia’s next lithium producer For personal use only Core Continues to Advance the Finniss Lithium Project Approvals Government approvals imminent Offtake 40% secured and additional offtake being negotiated Finance Targeting Final Investment Decision in 2020 Operations ‘Construction ready’ in 202
Slide 5: Core Lithium and the Finniss Lithium Project
Core Lithium and the Finniss Lithium Project For personal use only ASX Listed developer with advanced lithium assets 25km from Darwin Port in Northern Australia Highly leveraged projects due to higher upfront CAPEX Market Challenges High operating costs Sustaining customer quality Consequences Curta
Slide 6: Corporate information
Corporate information For personal use only Share Price Performance Last Twelve Months Capital Structure (as at 31 December 2019) $0.07 20m Share Price ~A$0.035 $0.06 Shares on Issue 792.52M $0.05 15m Market Capitalisation ~A$28M $0.04 10m $0.03 Options and Rights Unlisted 74.12M $0.02 5m Cash (31 D
Slide 7: Medium and long-term lithium demand increasing
Medium and long-term lithium demand increasing For personal use only Lithium converters and battery and car manufacturers positioning for significant EV sales growth Lithium Market Balance (tonnes LCE) Source: Benchmark Mineral Intelligence (Q4 2019) Medium- and long-term demand fundamentals 7 outwe
Slide 8: Why is Core's high-quality lithium needed?
Why is Core’s high-quality lithium needed? For personal use only Supply meeting volume needs in the short-term However, new producers are experiencing • High OPEX and product quality issues • High CAPEX flotation process not meeting expected recoveries • Curtailment of production and delayed expansi
Slide 9: Definitive Feasibility Study (DFS)
Definitive Feasibility Study (DFS) April 2019 For personal use only DFS was a snapshot in time - Project continues to evolve and grow • DFS confirmed Finniss Lithium Project as robust, high-margin Management Case Highlights low-capex, lithium project • 175,000tpa production capacity of high-quality
Slide 10: Prime location and valuable infrastructure available
Prime location and valuable infrastructure For personal use only available N Aerial view of Darwin, the Port of Darwin and the Grants Lithium development Excellent location and infrastructure advantages 10
Slide 11: Darwin Port Heads of Agreement
Darwin Port For personal use only Heads of Agreement Core has agreement with Darwin Port to ship 250,000tpa of spodumene concentrate Darwin Port is Australia’s nearest port to China East Arm Wharf facilities at Darwin Port are well suited to handle potential future production from Core’s lithium pro
Slide 12: Grants Lithium Project - First in line at Finniss
Grants Lithium Project - First in line at Finniss For personal use only Grants Lithium Project - General Layout Grants Lithium Project - DMS Plant High Quality Spodumene Concentrate 12
Slide 13: High grade Ore Reserves + efficient DMS process
High grade Ore Reserves + efficient DMS process = High quality spodumene concentrate For personal use only Concentrate Quality Dense Media Separation (DMS) Flowsheet Li2O concentrate 5.5-6.0% (No flotation circuit required) Net Recoveries +70% Finniss Lithium Product Specifications 13
Slide 14: Binding offtake agreement
Binding offtake agreement For personal use only Offtake and investment with some of China’s Largest Lithium Converters Binding offtake for 75,000tpa of spodumene representing Key Binding Offtake Terms approx. 40% of Core’s 175,000tpa production capacity Offtake Spodumene Concentrate Core is also in
Slide 15: Mineral Resources and Ore Reserves expansion
Mineral Resources and Ore Reserves expansion Significant upside For personal use only Current Project Pipeline Pipeline of high-grade lithium targets that formed the basis of recent resource drilling Current and Future Drilling Programs leading to multiple Mineral Resource and Ore Reserve increases
Slide 16: Mineral Resources and Ore Reserves expansion: BP33
Mineral Resources and Ore Reserves expansion BP33 For personal use only Drilling programs leading to Mineral Resource and Ore Reserve increases in 2020 Thick intersections of high-grade spodumene pegmatite highlight consistent orebody quality Current Mineral Resource1 • 2.15 Mt at 1.51% Li2O Recent
Slide 17: Mineral Resources and Ore Reserves expansion: Carlton
Mineral Resources and Ore Reserves expansion Carlton For personal use only Drilling programs leading to Mineral Resource and Ore Reserve increases in 2020 Wide intersections of spodumene pegmatite from recent drillholes at the Carlton Prospect Current Mineral Resource1 • 1.09 Mt at 1.3% Li2O Recent
Slide 18: Mineral Resources and Ore Reserves expansion: Mine life
Mineral Resources and Ore Reserves expansion Mine life For personal use only Mine Studies and Mineral Resource/Ore Reserve upgrades underway toward increasing mine life • DFS clearly showed that additional mine life has a significant upside economics • Core recently completed Mineral Resource and Or
Slide 19: ASX lithium sector comparison
ASX lithium sector comparison For personal use only Peer Valuation Comparison 3,168 19
Slide 20: Moving towards construction in 2020
Moving towards construction in 2020 For personal use only 2019 2020 2021/22 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CY Mining Lease Feasibility Study Environmental and Approvals Offtake and Customer Finance FID Mining and Construction Stage 1 - Commissioning and Production Ramp-up Stage 2
Slide 21: Positioned to be Australia's next lithium producer
Positioned to be Australia’s For personal use only next lithium producer High grade lithium Best logistics chain 01 Mineral Resource 04 Excellent infrastructure and Top quartile lithium grade of located 25km from Darwin, 1.4% close to Asian customers Low risk Offtake in place 02 Conventional open pi
Slide 22: Thank you
For personal use only Thank you For more information: Core Lithium Level 1, 366 King William Street, Adelaide Stephen Biggins: +618 8317 1700 Authorise for release by the Board of Core Lithium Ltd. For broker and media enquiries: Cannings Purple Warrick Hazeldine: +61 417 944 616 Andrew Rowell: +61
Slide 23: Appendix
For personal use only Appendix
Slide 24: Finniss Lithium Project Reserves and Resources
Finniss Lithium Project Reserves and Resources For personal use only JORC (2012) Resource Table1 JORC (2012) Reserve Table1 Source: As per 6 May 2019 ASX announcement “Initial Resource Estimate for Lees Deposit Drives Finniss Mineral Resource to 9.6Mt” and as per 17 April 2019 ASX announcement “Finn