Neometals Ltd · ASX:NMT
Neometals — Euroz Institutional Conference 2019
44 slides from Neometals's conference presentation, Mar 14, 2019
Slide 1: All the right elements
For personal use only All the right elements ® 14th March 2019 ASX Code: NMT OTC/Nasdaq Intl: RDRUY 1
Slide 2: Disclaimer
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 Comp any and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: Neometals is different
Neometals is different For personal use only Project developer of strategic materials for the 21st Century • Start with globally relevant commodity before its popular • Acquire most advanced project with grade/scale • Add value with drill-bit, test work, evaluation studies • Develop with partners to
Slide 4: Mt Marion journey – 'differentiation' case study
Mt Marion journey – ‘differentiation’ case study only JUL ‘11 – OCT – JUL – APR – Resource Resource upgrade Resource Commence upgrade to 8.9Mt to 14.9Mt upgrade construction to 60Mt AUG – Resource APR – Resource SEP – FEB – 1st shipment PROJECT 3.9Mt Commence For personal use upgrade to OCT – SEP ‘1
Slide 5: Executive Summary
Executive Summary For personal use only • Listed (ASX:NMT) project developer • Established in 2003, team of 20, Perth HQ and industrial facility/research laboratory in Montreal • Post-sale pro-forma* cash of +A$130M plus ~A$9M in investments vs. current market cap of A$125M • Balance sheet to develo
Slide 6: Who are Neometals?
Who are Neometals? For personal use only NE Board Members Management Team Please refer to supporting information slides at rear of document for name and position.. + Ti/V = 6
Slide 7: Strong Balance Sheet and getting stronger
Strong Balance Sheet and getting stronger despite weak Li prices which have lead share price For personal use only ASX: NMT OTC:RDRUY Shares on Issue1 m 543.9 Share Price (8-Mar-2019) A$ 0.23 Market capitalisation A$m 125.0 Cash (31-Dec-18)* A$m 30.1 Debt (31-Dec-18) A$m - Investments (31-Dec-18)2 A
Slide 8: Short term development priorities
Short term development priorities For personal use only • Core strategy remains to de-risk and develop long life projects with strong partners and integrate down the value chain to increase margins and return value to shareholders • Neometals will maintain a defensive balance sheet strategy and disc
Slide 9: Lithium
9 For personal use only Lithium + Ti/V =
Slide 10: Mt Marion Equity Divestment
Mt Marion Equity Divestment For personal use only Highlights: • NMT to sell its Mt Marion equity to Ganfeng and Mineral Resources for A$103.8M • Subject to Ganfeng obtaining Chinese approval by 28 February, FIRB ✓ • ‘Life of Mine’ spodumene concentrate annual offtake option for 57ktpa of 6% Li2O at
Slide 11: Chemical prices normalising in the short term, medium term outlook is flat
Chemical prices normalising in the short term, medium term outlook is flat For personal use only + Ti/V = 11
Slide 12: Lithium Refinery
Lithium Refinery For personal use only Neometals have been progressing technical and commercial feasibility of a lithium chemicals refinery in Kalgoorlie, with an initial production capacity of 10ktpa of LiOH. • Conventional conversion plant to produce battery quality LiOH from spodumene concentrate
Slide 13: Lithium market and pricing will determine development timing
Lithium market and pricing will determine development timing For personal use only Significant supply deficit expected to emerge mid 20’s + Ti/V = 13
Slide 14: We have strong conviction in the long term lithium battery/EV/ESS thematic
We have strong conviction in the long term lithium battery/EV/ESS thematic…. and that they wear out! For personal use only + Ti/V = 14
Slide 15: Lithium Battery Recycling work stream is high priority for 2019
Lithium Battery Recycling work stream is high priority for 2019 For personal use only Neometals is developing a sustainable technology to economically recover critical metals from spent lithium ion batteries. • Regulation driving ethical sourcing and disposal of lithium ion batteries • <5% batteries
Slide 16: Targeting EV & electronics manufacturers with our universal recycling flowsheet
Targeting EV & electronics manufacturers with our universal recycling flowsheet For personal use only Accelerated development of universal EV battery recycling flowsheet to meet market demand as NCA/NCM volumes accelerate, new flowsheet retains flexibility to also process LCO from consumer electroni
Slide 17: Value chain – who must recycle
Value chain – who must recycle For personal use only Pressure on companies to recycle: • regulatory commitment • stakeholder pressure to conduct themselves in sustainable fashion • are committed to life cycle management in home jurisdiction – extending it across global footprint + Ti/V = 17
Slide 18: Regulation
Regulation For personal use only • EU regulation says the producer (i.e. vehicle manufacturer) must take back spent batteries. 100% collection, no land-filling • LIB target = >50% by weight • ELV target = >85% by weight • US regulation says owner of battery has to pay for recycling. Landfill and inc
Slide 19: Neometals Technology
Neometals Technology For personal use only + Ti/V = 19
Slide 20: Neometals Commercial Scale (50tpd feed)
Neometals Commercial Scale (50tpd feed) Shredder Acceptance Testing Video For personal use only https://youtu.be/PJSMV3enSqg + Ti/V = 20
Slide 21: Business Model
Business Model For personal use only Treat multiple battery chemistries via hub and spoke model which sees stage 1 shred and turn battery feed into inert black powder which is sent to centralized stage 2 refining circuit: Revenue generation via: Differentiation: • Unique flowsheet - true closed loop
Slide 22: Indicative Project Timeline
Indicative Project Timeline For personal use only Pilot Plant: Pilot Plant: Pilot Plant: Commence FEED / Feasibility Commercial Comminution Leaching Purification FEED Study Results Plant (*) Study and FID (*) Fabrication / - Bench Test Scoping Study Construct - Bulk Pilot Completion Jan/Feb 19 Mar/A
Slide 23: Battery Supply Chain
Battery Supply Chain For personal use only + Ti/V = 23
Slide 24: Vanadium and Titanium
Ti/V For personal use only Vanadium and Titanium + Ti/V = 24
Slide 25: Drivers for development of primary V
Drivers for development of primary V Ti/V For personal use only • China legislating increased vanadium addition for strengthening re-bar steels • Increasing demand from energy storage and aerospace New primary supply needed now + Ti/V = 25
Slide 26: Barrambie VTM Project
Barrambie VTM Project Ti/V For personal use only One of the highest grade hard-rock Titanium assets and one of the largest Vanadium projects globally • 100% Owned • Located 80km north-west of Sandstone, WA • A$30M spent to date, +1,000 RC/Diamond holes drilled for ~55,000m • Materially completed upd
Slide 27: Barrambie Flythrough Video
Barrambie Flythrough Video Ti/V For personal use only https://youtu.be/w-ndAfGSBeM + Ti/V = 27
Slide 28: Globally Significant Resource
Globally Significant Resource Ti/V For personal use only Refer to further information on this comparison data in further information slide 43 and the Announcement titled “Neometals Commences Update of Barrambie DFS” dated 16 November 2018 and available at + Ti/V = https://www.neometals.com.au/report
Slide 29: Exploration upside
Exploration upside Ti/V For personal use only + Ti/V = 29
Slide 30: 2009 DFS Results
2009 DFS Results Ti/V For personal use only Average Annual Production Average Operating Costs 6,160 tonnes Vanadium <US$20/kg Vanadium (@ US63c FX) As 7,700t of Ferrovanadium (FeV80) Lowest Quartile Containing 11,200t V2O5 equivalent Mine Life Direct Construction Costs A$456M 12 years Pre-commissoni
Slide 31: Globally competitive cash costs
Globally competitive cash costs Ti/V For personal use only + Ti/V = 31
Slide 32: Products, Players & Applications
Products, Players & Applications Ti/V For personal use only + Ti/V = 32
Slide 33: Drivers for development of secondary Ti
Drivers for development of secondary Ti Ti/V For personal use only • Barrambie Eastern Band is worlds second highest grade deposit at 21% TiO2 • Barrambie Mineral Resource contains +25 million tonnes of TiO2 Significant supply deficit expected to emerge early 20’s + Ti/V = 33
Slide 34: Indicative Project Timeline
Indicative Project Timeline Ti/V For personal use only DecQ18 2019/20 2020/21 2021/22 + Ti/V = 34
Slide 35: For personal use only
35 For personal use only + Ti/V = + Ti/V =
Slide 36: Company Highlights
Company Highlights For personal use only • History of de-risking development with strong operating and offtake partners • Delivered A$34M to shareholders over last three financial years • Developing secure supplies of globally-relevant commodity feedstocks from Tier- one assets • Clear path to grow
Slide 37: Supporting Information
3 7 For personal use only SUPPORTING INFORMATION + Ti/V = 37
Slide 38: Neometals Board of Directors
Neometals Board of Directors For personal use only Steven Cole Chris Reed David Reed Natalia Streltsova Chairman Managing Director Non-Executive Director Non-Executive Director Steven has 35 years of Chris started in the mining David was a director and Natalia Streltsova is a PhD professional, corpo
Slide 39: Neometals Board of Directors Cont'd
Neometals Board of Directors Cont’d For personal use only Douglas Ritchie Jennifer Purdie Les Guthrie Jason Carone Non-Executive Director Non-Executive Director Non-Executive Director CFO & Company Secretary Doug Ritchie is a senior resources Mr Guthrie B.Sc (Engineering Jason holds a Bachelor indus
Slide 40: Lithium Executive Team
Lithium Executive Team For personal use only Mike Tamlin Greg Hudson Gavin Beer Jeremy McManus COO GM - Exploration GM – Process & Metallurgy GM – Commercial & IR Mike has over 35 years Greg has more than 18 Gavin is a metallurgist with Jeremy has nearly 20 years experience, including years’ experie
Slide 41: Titanium-Vanadium Executive Team
Titanium-Vanadium Executive Team Ti/V For personal use only Darren Townsend David Robinson Paul Wallwork Drew Bradshaw CDO GM – Metallurgy & IP GM – Product Development GM – Mining & Marketing (seconded from Darren is a Mining New appointment Paul has nearly 30 years ADAMAN Resources) Engineer with
Slide 42: Barrambie JORC Mineral Resource
Barrambie JORC Mineral Resource Ti/V For personal use only + Ti/V = 42
Slide 43: Vanadium Deposit Comparison Data
Vanadium Deposit Comparison Data Supporting Slide 28 Ti/V For personal use only + Ti/V = 43
Slide 44: Barrambie JORC Exploration Target
Barrambie JORC Exploration Target Ti/V For personal use only + Ti/V = 44