NH3 Clean Energy Limited · ASX:NH3
NH3 Clean Energy — Hexagon Resources — Investor Presentation (February 2018)
26 slides from NH3 Clean Energy's investor presentation, Feb 5, 2018
Slide 1: ASX Announcement: Batteries and Beyond Corporate Presentation
ASX Announcement 5 February, 2018 BATTERIES AND BEYOND: CORPORATE PRESENTATION Hexagon Resources Limited (ASX: HXG) is pleased to advise that it has posted the attached corporate presentation, “Batteries and Beyond” on its website. This presentation introduces the Company, summarises recent mileston
Slide 2: McIntosh Graphite: Batteries and beyond
McIntosh Graphite™ Batteries and beyond… Mike Rosenstreich Managing Director January, 2018 Updated – 2 February 2018 1 of 25
Slide 3: Emerging speciality materials company developing graphite project
2 of 25 ASX:HXG is an emerging speciality materials company currently focussed on developing an advanced high-quality graphite project located in Western Australia. Flake Graphite – a speciality mineral with recent upsurge in demand related to energy storage/EV revolution but also increasing demand
Slide 4: Graphite is not a commodity: product development map
3 of 25 Graphite is not a commodity! “Exploration is Product Development” Product development – a Map of Opportunities 99.999% Focus is to meet customers’ Indicates HXG Product requirements. 99.99% Development Interest 99.95% • Primary & Secondary SPHERICAL processing (blue & yellow GRAPHITE outline
Slide 5: Graphite Market: traditional markets and batteries
4 of 25 Graphite Market - for McIntosh products Traditional markets and batteries • Traditional graphite markets accounted for an estimated 86% of demand for natural graphite in 2015 • The steel industry, refractories and other industrial applications such as lubricants are the key traditional uses
Slide 6: Graphite Market: Beyond Batteries, expandable graphite
5 of 25 Graphite Market - for McIntosh products Beyond Batteries…… Expandable graphite – strong demand growth but declining resources in China, a traditional mainstay supplier • Expandable graphite created by adding heat and acid to specific, larger flake graphite types • It is highly priced and has
Slide 7: McIntosh Graphite key value drivers
6 of 25 McIntosh GraphiteTM – key value drivers What appeals to customers is….. Recent test work has demonstrated new opportunities to produce and sell the 100ktpa of flake concentrate planned by diversifying the customer base across a range of end-uses and customers. Key attributes include: Purit
Slide 8: Key value drivers: Purity
7 of 25 McIntosh GraphiteTM – key value drivers Purity – this is the key value driver High purity, high value, high margin – McIntosh Graphite “easily purified” to 99.999% Before - 97.5% Wt C Concentrate grades of 99.9998 wt% C and 99.9991 wt% C were achieved by a proprietary medium temperature ther
Slide 9: Key value drivers: Flake Size
8 of 25 McIntosh GraphiteTM – key value drivers Flake Size The McIntosh project has a major large flake endowment – only recently recognised. Emperor & Wahoo comprise 70% of the Mineral Resource 85% of Flake in Concentrate sample is Large, Jumbo & Super Jumbo size. Flake Size Distribution by Deposit
Slide 10: Key value drivers: Expandability
9 of 25 McIntosh GraphiteTM – key value drivers Expandability 220% Expansion Factor for +60 Mesh (+250 micron) sized flake. Key Points: Large proportion of the Mineral Resource comprise large, potentially expandable flake ( +78% of concentrate flake was larger than 60 Mesh (250 microns)). Synthesis
Slide 11: Key value drivers: Battery properties
10 of 25 McIntosh GraphiteTM – key value drivers Battery properties • Recent battery test work results for spheroidised material are highly encouraging – the sample “passed” on all the key preliminary assessment criteria. Parameter Tested Units McIntosh Reference Material Sample (average) Yield % 58
Slide 12: Key value drivers: Project Scale
11 of 25 McIntosh GraphiteTM – key value drivers Project Scale Scale is important – it demonstrates long-term supply capability. Contained JORC Classification Tonnes (Mt) TGC (%) Graphite (kt) Total Indicated & 21.3 4.5% 964 Inferred ASX Report 25 May, 2017; Cut-off is 3%TGC and rounding errors may
Slide 13: Key value drivers: Country of Origin
12 of 25 McIntosh GraphiteTM – key value drivers Country of Origin McIntosh Flake Graphite Project - is well located “politically” & geographically: • East Kimberley, WA is an established mining area. • Project & Port access is well positioned to key customer groups – gateway to Asia and shipping ro
Slide 14: McIntosh Flake Graphite Project: infrastructure
13 of 25 McIntosh Flake Graphite Project Well located for transport infrastructure McIntosh Project – Main Access Road – excellent access across Project. Wyndham Port – with loading and storage facilities; 295km north along Highway Great Northern Highway (only 12 km from Project area) 13 of 25
Slide 15: What the project might look like
14 of 25 McIntosh Flake Graphite Project - what it might look like Stage 1: Multi open pit mining, simple flotation to produce high-grade graphite concentrate, which is trucked to nearby port. 14 of 25
Slide 16: Positive Pre-Feasibility Outcomes; already superseded
15 of 25 McIntosh Flake Graphite Project Positive Pre-Feasibility Outcomes; but already superseded by recent test results Annual Life of Mine Life of Mine PHYSICALS Unit PFS FINANCIAL OUTCOMES Unit Average (LOM) (LOM) Ore Mined Mt 2.4 14.3 Site Operating Costs AUD/t Conc 987 Strip Ratio W:O 4.3 4.5
Slide 17: Marketing Strategy: Guiding principles
16 of 25 Marketing Strategy Guiding principles Target market – premium higher purity products; • McIntosh project’s unique, clean ore-type generates high-purity intermediate and final flake graphite products covering a range of end uses, which sell at premium prices. How? 1. Increasing demand for gr
Slide 18: Marketing Strategy: Product development
17 of 25 Marketing Strategy Product development Downstream = additional “value-add” processing to meet the customers’ needs Downstream Process Being Tested Potential End Uses Li-Ion battery anode material Milling (Micronising) & Spheroidisation Some speciality battery applications Advanced battery a
Slide 19: Marketing Plan for McIntosh Products
18 of 25 Marketing Strategy Marketing Plan for McIntosh Products – HXG Target Markets 99.999% Originally: planned to produce a Indicates HXG Product single Bulk Concentrate as per 99.99% Development Interest May 2017 PFS. 99.95% SPHERICAL Now: a portfolio of products GRAPHITE which is the key to sel
Slide 20: Offtake & project finance MoU with CNBM-GT
19 of 25 Marketing Strategy Offtake & project finance MoU (non-binding) executed 1 February, 2018 30% of Production under MoU with China National Building Materials Group-General Technology MoU is a positive first step in a long-term relation building via qualification test work – planned to culmina
Slide 21: Product diversification and price enhancement
20 of 25 Marketing Strategy Product diversification and price enhancement A simple example - Objective – produce c. 100ktpa of high grade flake graphite concentrates: • If 60% is Large (>180 microns) sized flake concentrate for expandable graphite sector (a premium priced product); and • If 40 % is
Slide 22: Project Milestones and Time Lines
21 of 25 Project Milestones and Time Lines Next steps. 1. Update Stage 1 process flow sheet and undertake test work. 2. Continue on Stage 2, downstream test work – aim to expand the product mix and improve the specifications. Core objective is to leverage recent outstanding test work results to prog
Slide 23: Hexagon Resources Ltd: Meet the Board
22 of 25 Hexagon Resources Ltd Meet the Board - focussed on marketing and production Charles Whitfield – Chairman, contributes: Shares on Issue 248.2M • Debt and ECM experience via senior roles with a range of international investment banks; • Deep insight on specialty metals markets specifically li
Slide 24: Hexagon (ASX: HXG) Summary
23 of 25 Hexagon (ASX: HXG) Summary McIntosh GraphiteTM; Batteries and beyond……. Emerging, large scale Australian graphite project - Long-term, reliable supply Diverse range of premium priced graphite products: high purity easily achievable to Five Nines - 99.999 wt% C. large flake size acro
Slide 25: Important Notices
24 of 25 Important Notices Competent Persons’ Attributions Exploration Results and Mineral Resource Estimates The information within this report that relates to exploration results, Exploration Target estimates, geological data and Mineral Resources at the McIntosh Project is based on information co
Slide 26: Hexagon Resources Limited Contact
25 of 25 Hexagon Resources Limited www.hexagonresouces.com Contact Mike Rosenstreich Managing Director [email protected] +61 (08) 6244 0349 25 of 25
Hexagon Resources — Investor Presentation (February 2018) on 6ix