Eramet Sa · EURONEXT:ERA
Eramet Sa — Investor Presentation (November 2021)
11 slides from Eramet Sa's investor presentation, Nov 8, 2021
Slide 1: Unlocking our expansion into metals for the energy transition
Unlocking our expansion into metals for the energy transition 8 NOVEMBER 2021
Slide 2: We expect a mega boost in metals for energy transition
We expect a mega boost in metals for energy transition …WITH BATTERIES REQUIRING SIGNIFICANT AMOUNT OF Ni, Co AND Li… EV TO REPRESENT 75% OF THE 28 27 3 EUROPEAN MARKET IN 2030… Electric1 Combustion 50kg2 7kg2 45kg2 LCE3 25% 5t of Nickel ore 125,000 l of brine 88% 75% …MEANING SIGNIFICANT UPSIDE FOR
Slide 3: World-class assets in our energy transition portfolio
World-class assets in our energy transition portfolio 28 3 27 Argentina: Centenario-Ratones world- class deposits (resources Indonesia: of c. 10 Mt LCE) Sonic Bay bound on a giant limonitic deposit (resources of c. 9 Mt Ni) Construction in partnership with Tsingshan Development project with BASF 3 U
Slide 4: Centenario-Ratones: Tier-1 lithium project in Argentina
Centenario-Ratones: Tier-1 lithium project in Argentina Life-of-Mine of 40 years1 based on a project designed for 24ktpa LCE2 Long-life Large resources estimated at c. 10 Mt LCE2 providing further upside brine potential deposits 100% ownership on the entire salar with perpetual mining rights In-hous
Slide 5: Top-notch sustainability standards
Top-notch sustainability standards Robust environmental programme Significantly lower incidence on hydric balance vs. conventional process Long-lasting and constructive relationships with local stakeholders Solid local content: employment (c.95% of workforce) and sourcing (49% of procurement) Contri
Slide 6: Financing secured
Financing secured TRANSACTION WITH TSINGSHAN POST-FUNDING OWNERSHIP % Scope of the transaction (same as the initial project mothballed in 2020): construction of a 24ktpa LCE ERAMET TSINGSHAN battery-grade plant (“Project”) leveraging on Eramet’s assets in Argentina1 and in-house developed DLE techno
Slide 7: World-class development expertise onboard
World-class development expertise onboard All studies already performed and permits in place > EIA1 approved in February 2019 and DFS2 completed in April 2019 Partner with proven and seamless project execution capabilities > Eramet partnering with Tsingshan in Indonesia since 2017 > Weda Bay success
Slide 8: Sound market fundamentals
Sound market fundamentals EXPECTED TIGHTER MARKET CONDITIONS… …REFLECTED INTO CURRENT PRICES Forecasted lithium market deficit (in kt LCE) LiCO3 CIF Asia (in US$/kg LCE) 1 200 24 1 1 Project commissioning 1 000 2 First full year after ramp-up 20 800 16 2 600 12 400 2 8 1 200 4 1 Price multiplied by
Slide 9: Robust economics
Robust economics Yearly LCE production1 Cash cost (ex-works) 24,000 tonnes 3,500 US$ per tonne (after ramp-up) (after ramp-up) EBITDA at full ramp-up1,2,3 Internal Rate of Return1,2,4 165 US$M 24% (60% margin, real terms) (after-tax, nominal terms) 1 On a 100% shareholding basis 2 Assuming a long-te
Slide 10: We are execution ready
We are execution ready CLEAR PATH TO START-UP Sustainability Potential for further development Financing H2 2025 Full ramp-up at 24ktpa Expertise Q1 2024 Commissioning Market dynamics Q1 2022 Start of plant Economics construction 10 Unlocking our expansion into metals for the energy transition
Slide 11: Q&A
Q&A