European Lithium Ltd. · ASX:EUR
European Lithium — Investor Presentation (July 2018)
28 slides from European Lithium's investor presentation, July 2018
Slide 1: Corporate Presentation July 2018
CORPORATE PRESENTATION JULY 2018
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared by and is the sole responsibility of European Lithium Limited (the Company). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an induc
Slide 3: Concern Over Resource Scarcity
CONCERN OVER RESOURCE SCARCITY “APPLE in Talks to Buy Cobalt Directly From Miners“ ● iPhone producer is one of the largest end users of the metal ● Concern about impending supply shortages ● To avoid production delays, APPLE seeks to buy Cobalt directly from miners Source: Bloomberg Technology, Hype
Slide 4: European Battery Alliance
EUROPEAN BATTERY ALLIANCE EU launches European Battery Alliance ● Competitive production seen as key issue for the future ● Gain independence from Asian production (currently 90% of all batteries for EV come from Asia) ● Facilitation of approval procedures and permitting processes for mining of reso
Slide 5: Horizon2020 Fund
HORIZON2020 FUND Consortium has successfully passed the first evaluation stage of the “Horizon2020 Fund” Research project into lithium processing seeking €4.9 million funding from the EU ● Less than 10% success rate ● Last evaluation phase in Q3 2018 ● Part of the continuous effort of European Lithi
Slide 6: Lithium Projects in Europe
LITHIUM PROJECTS IN EUROPE 1. Keliber • Finland • In PFS • No guidance on first production 2. Avalonia Lithium (Intl. Lithium & Jiangxi Ganfeng) • Ireland 1 • Exploration • No resource declared 3. SMP, Novo Litio, Savannah Resources • Portugal • For local glass/ceramics (SMP) 4. European Lithium 2 •
Slide 7: Lithium Battery Plants in Europe
LITHIUM BATTERY PLANTS IN EUROPE Battery production for EV’s a key driver for Lithium demand Northvolt (Skelleftea, Sweden) Production 2020 Daimler Tesla (TBA, Europe) (Kamenz, Germany) Operational, proposed ‘Gigafactory 2’ expansion Proposal EV assembly at Tilburg, Nissan Netherlands, Operational &
Slide 8: The Beginning of the End for Fossil Fuels
THE BEGINNING OF THE END FOR FOSSIL FUELS Many major countries have announced an end to fossil fuel cars ● “EV’s have adopted lithium-ion battery technologies as standard” ● “EV market share growth is expected to accelerate as costs reduce and access increases” ● “Batteries will play a larger role i
Slide 9: European Lithium
EUROPEAN LITHIUM ● First potential lithium producer in Europe ● Exentsive exploration & development work completed by previous owners: ● Location: existing exploration mine at the ● 17,000m drilling / 1.400m decline, drives „Weinebene“, 270km SW of Vienna (close to and crosscuts Wolfsberg) ● Water d
Slide 10: Key Data
KEY DATA Capital Structure Team Share Performance* Primary listing ASX: EUR Shares on issue: Board of Directors Also traded on Frankfurt (PF8) & Vienna Stock Exchange (ELI) 544.7 million Tony Sage Market Cap: AUD$114 million (share price $0.21) Non-Executive Chairman Free float1 = 443.7 million Malc
Slide 11: Development Road Map
DEVELOPMENT ROAD MAP* Increase Resource (completed) Q3 2017 Q2 2018 Finalised PFS Q2 2019 Complete Baseline / EIS / Permitting Q1 2019 Finalise DFS Q4 2019 Start Construction Operations proposed to commence for production of lithium Q1 2021 hydroxide for battery factories *All dates are indicative,
Slide 12: Pre-Feasibility Study – Completed Q2 2018
PRE-FEASIBILITY STUDY – COMPLETED Q2 2018 Highlights ● Accelerated case NPV A$441.9 million, based on only the measured and indicated resource of 6.3 million tons at 1.17% Li2O ● Lithium Hydroxide production 10,129 t/a in accelerated case ● No EIA required at mine site, formal screening process to c
Slide 13: Consultants & Strategic Partners
CONSULTANTS & STRATEGIC PARNTERS ● Geology Adviser - Dr Richard Göd (ex Chief Geologist Minerex) (Austria) ● Exploration Management – Technisches Büro für Geologie (Austria) ● Drilling contractor (underground) – Swietelsky (Austria) ● Drilling contractor (surface) – VA Erzberg (Austria) ● Competent
Slide 14: Geology
GEOLOGY ● Substantial exploration and development work by ● A programme of underground twin hole drilling previous owners include: and channel sampling under a comprehensive QA/QC protocol has verified the original data ● 17,000m of drilling / 1,400m of decline, drives and which has been used to pre
Slide 15: Project Topography
PROJECT TOPOGRAPHY Lithium Deposit Wolfsberg Graphic: A. Pamsl Brandhöhe 1866m 5 1800m ZONE 2 ZONE 1 Adit (1574m asl) 0 m 2 30 Amphibolite 17 00 m Micaschist Pegmatites (proven/estimated) Source: Company, Mine-it representation 14
Slide 16: Project Geology
PROJECT GEOLOGY Section through deposit Mineworkings - plan view Source: The spodumene deposit at “Weinebene” Koralpe, Austria by Source: Company, prepared from Minerex data by Dr. Göd. Dr.Göd, Mineralium Deposita 24, 270-278 (1989). 15
Slide 17: Resources Extension
RESOURCES EXTENSION surface/topography B B’ 1500m asl 1400m asl vein model P15-14 (Completed) 1300m asl vein outline/hull P15-17 1200m asl exploration extension (Completed) P15-11 P15-19 (Completed) (Completed) 1100m asl ● Representation of the current vein model and exploration extension with depth
Slide 18: Resources
RESOURCES* Type Million Tonnes Grade Li2O (%) Measured 2.86 1.28 • Deeper resource in Zone 1 increases Indicated 3.44 1.08 contained lithium by 50% from 182,000t LCE in M&I to 272,000t LCE in total M&I Total 6.30 1.17 Inferred 4.68 0.78 Total 10.98 1.00 *JORC Code (2012) resource at 0% Li2O cut off
Slide 19: Expected Production Costs & Earnings
EXPECTED PRODUCTION COSTS & EARNINGS Total investment volume: US$ 424 million Expected production: • Mining rate: 800,000 t/a => approx. 67,000 t/a spodumene concentrate • Feldspar: 136,000 t/a • Quartz: 85,000 t/a Processing: • 67,000 t/a spodumene concentrate => approx.. 10.000 t/a Lithium hydroxi
Slide 20: Development Strategy
DEVELOPMENT STRATEGY ● DFS at 800,000 t/a mined should improve NPV significantly ● Additional studies are conducted before the DFS will begin in Q3 2018 ● Drilling to upgrade the “inferred” resource in Zone 1 to measured and indicated resource ● Completion and presentation of the DFS in Q1 2019 ● St
Slide 21: Börse Social European Lithium Number One 2017
BORSESOCIALE UROPEANLITHIUM = Number One 2017 I Bérseneuling European Lithium ++++ NUMBER ONE BORSENEULING +++ Wdddddididdddidididdididddddddidiidddidididdididdiddidididdidididdddiiiittiid, European Lithium: Hit in Performance und Web 20
Slide 22: Appendix
EUROPEAN APPENDIX
Slide 23: Board of Directors & Management
BOARD OF DIRECTORS & MANAGEMENT Dietrich Wanke Tony Sage Malcolm Day Stefan Müller CEO Aufsichtsratsvorsitzender Aufsichtsratsmitglied Aufsichtsratsmitglied ● Experienced Executive ● Executive Chairman of ● Experienced Surveyor ● Experienced financial Mine Manager with more ASX listed Cape Lambert a
Slide 24: World Market - Rechargeable Lithium Batteries
WORLD MARKET - RECHARGEABLE LITHIUM BATTERIES Growth in demand for rechargeable batteries will increasingly be driven by the automotive market which is expected to reach 67GWh in 2020 and 143.5GWh in 2025 Source: Roskill Lithium: Global Industry, Markets and Outlook to 2025 13th Edition 2016 (“Roski
Slide 25: Project Photos
PROJECT PHOTOS EUROPEAN T
Slide 26: Lithium Applications
LITHIUM APPLICATIONS CURRENT APPLICATIONS NEW MARKETS CHEMICAL TECHNICAL Batteries Glass Electric vehicles Lubricants Ceramics Fixed energy storage with renewables Air Treatment Aerospace Aluminium smelting Steel and Iron Pharmaceuticals castings Li-Al alloys for aircraft 25
Slide 27: LCE in Batteries
LCE IN BATTERIES SMART PHONE LAPTOP TABLET TOYOTA PRIUS TESLA ROADSTER LONDON BUS 2-3g/battery 30-40g/battery 20-30g/battery 3.6kg/battery 40kg/battery 200kg/battery ● Lithium-ion has captured nearly 100% of consumer electronics market ● Tesla’s lithium-ion battery ‘gigafactory’ in Nevada will produ
Slide 28: European Lithium
EUROPEAN