Neometals Ltd · ASX:NMT
Neometals — Shareholder Meeting (November 2017)
71 slides from Neometals's shareholder meeting presentation, Nov 24, 2017
Slide 1: The Evolution of Lithium - 2017 AGM Presentation
For personal use only The Evolution of Lithium ® ASX Code: NMT OTC: RDRUY 2017 AGM Presentation 1
Slide 2: Disclaimer
2 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 Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: For personal use only
3 For personal use only + = + =
Slide 4: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug ‘16 5% on market buyback + = 4
Slide 5: Tactical Plan - FY18
Tactical Plan – FY18 For personal use only • Negotiate new MSA to improve offtake quality and revenues • Advance local LiOH project with vendor testwork, offtake and partner selection processes. • Licence Dexter and/or ELi to brine producer for royalties • Fast-track evaluation of recycling process
Slide 6: Corporate
6 For personal use only Corporate + = 6
Slide 7: Board of Directors
Board of Directors For personal use only Steven Cole Chris Reed David Reed Natalia Streltsova Doug Ritchie Chairman Managing Director Non‐Executive 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
Slide 8: Executive Team
Executive Team For personal use only Mike Tamlin Darren Townsend Jason Carone Paul Wallwork Eileen Hao COO CDO CFO & Co Sec GM Marketing GM China Mike has over 35 years Darren is a Mining Jason . holds a Bachelor of Paul has nearly 30 years of Eileen has 22 years experience, including over Engineer
Slide 9: Consultant Team
Consultant Team For personal use only Darren Wates Dr Bryan Smith Clay Gordon Dr Yatendra Sharma Mike Spratt General Counsel Geologist Geologist PM ‐ Lithium PM ‐ Titanium Darren has over 15 years’ Bryan has over 45 years’ Clay . obtained a Bachelor Yatendra holds a PhD in Michael is a Metallurgist
Slide 10: Significant Financial Resources
Significant Financial Resources For personal use only ASX CODE: NMT OTC:RDRUY 12 MONTH SHARE PRICE Last close (23‐Nov‐2017) A$ 0.425 Shares on issue M 543.5 Market capitalisation A$M 230 0.5 Net Cash (at 30‐9‐2017) A$M 42.1 0.45 Receivables/Investments A$M 17.7 0.4 0.35 0.3 0.25 MAJOR SHAREHOLDERS 0
Slide 11: Operating Structure
Operating Structure For personal use only + = 11
Slide 12: For personal use only
For personal use only 12 + = + =
Slide 13: Focus on Li-Ion Battery Commodities
Focus on Li-Ion Battery Commodities For personal use only 13
Slide 14: Developing multiple positions in the Supply Chain
Developing multiple positions in the Supply Chain For personal use only + = 14
Slide 15: Why? Downstream processing multiplies the value of lithium units
Why? Downstream processing multiplies the value of lithium units For personal use only + = 15
Slide 16: Mt Marion Lithium Operation
Mt Marion For personal use only Lithium Operation Neometals 13.8% through Reed Industrial Minerals Pty Ltd + = 16
Slide 17: World's largest lithium concentrator
World’s largest lithium concentrator For personal use only + = 17
Slide 18: Globally Significant Operation - 400kt concentrates pa
Globally Significant Operation – 400kt concentrates pa (~50kt LCE) For personal use only JORC Resource 77.8Mt @ 1.37% Li2O* 2HFY17 Production 156,000 dmt 1QFY18 Production +100,000 wmt FY18 Forecast 450,000t of 6% & 4% Li2O 1HFY18 EBITDA A$72M** (100% basis) C1 costs A$369/t CIF (~US$290
Slide 19: Downstream processing: WA-based LiOH Project
For personal use only Downstream processing WA-based LiOH Project Neometals 100% Offtake Option for min 12.37% ~50ktpa spodumene concentrates
Slide 20: Secure LiOH supply for the West
Secure LiOH supply for the West For personal use only Cathode makers need LiOH for NMC/NCA batteries from spodumene converted outside China
Slide 21: Commercialisation Plan
Commercialisation Plan For personal use only • Local plant to minimise transport from Mt Marion 7t spodumene concentrate needed for 1t of LiOH • Utilise local natural gas, sulfuric acid and workforce • Conventional flowsheet -Remove technology risk – speed to market Vendor Lump-sum FEED Study Test w
Slide 22: Downstream processing: Lithium Titanate R&D
For personal use only Downstream processing Lithium Titanate R&D Neometals 100% + =
Slide 23: Superior Anode Material for EV
Superior Anode Material for EV For personal use only + = 23
Slide 24: Research & Development Plan
Research & Development Plan For personal use only Produced Cycle testing Optimisation Cycle testing LTO at in commercial Testwork at in larger CSIRO pouch-cell CSIRO format (18650) Li-ion battery Li-ion battery JunQ 17 SepQ 17 DecQ 17 MarQ 18 (*) Subject to Board Approval + = 24
Slide 25: Downstream processing: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP (3 US Prov. Pats) Exclusive licence to commercialise + =
Slide 26: Li Battery Recycling Rationale
Li Battery Recycling Rationale Co For personal use only Estimated < 5% batteries Recyled Consumer Electronics LCO cathode = 20% Co + = 26
Slide 27: Demo Plant Schematic and Study Results
Demo Plant Schematic Co and Study Results For personal use only Scoping Study Results (± 30% accuracy) • Operating Costs US$4.45/lb Co (US$10k/t) • Spot price US$25/lb Co (US$55k/t) • Capex US$4.5M • Pilot Plant under construction, testwork October 2017 • Can be constructed and commissioned in 42 we
Slide 28: Commercialisation Plan
Commercialisation Plan Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 28
Slide 29: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 29
Slide 30: Globally Significant Ti Resource
Globally Significant Ti Resource For personal use only 1,000 RC/Diamond holes to 60 vertical depth, Open all directions 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 30 Sources: Company Reports
Slide 31: Problem: Poor Industry Profitability; Solution: Patented Neomet Process
Problem: Poor Industry Profitability Solution: Patented Neomet Process For personal use only • Increasing Confidence • Lowering Costs + = 31
Slide 32: Neomet Process: Product Efficiency
Neomet Process: 3 Product Efficiency For personal use only Strong EPC & OEM Alliance + = 32
Slide 33: Evaluating potential for Direct Shipping Ore and Toll-concentration in China
Evaluating potential for Direct Shipping Ore and Toll-concentration in China For personal use only + = 33
Slide 34: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Scale Met Sample Beneficiation Pilot Scale DSO/Toll Drilling and Test work Hydromet Concentrate/ Updated for Neomet/ Test work Offtake and/or Pre-feasibility DSO for Neomet Neomet DFS Study Evaluation Evaluation* Decisions* SepQ 17 DecQ 17 JunQ 18 S
Slide 35: Investment Proposition
For personal use only 35 Investment Proposition + = 35
Slide 36: Undervalued lithium producer
Undervalued lithium producer For personal use only All figures in US$ dollars + = 36
Slide 37: Expect re-rating with consistent steady-state production
Expect re-rating with consistent steady-state production For personal use only + = 37
Slide 38: Lithium: Cash, cashflow & growth options
Lithium : Cash, cashflow & growth options For personal use only 03 02 Potential to increase 01 production from Mt Marion + Cashflows from ~A$42.1M Cash plus ~A$17.7M in receivables and 13.8% Mt Marion + Downstream conversion to LiOH. investments + = 38
Slide 39: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 02 01 Successful Secure partners Secured Strong Partners for + completion of Pilot Plant for - Li Battery + to commercialise - Brine IP & ELi - Li Battery Neomet Process Recycling Recycling + = 39
Slide 40: Titanium: the big one
Titanium : the big one For personal use only 03 02 01 Commence DFS + Successful completion of + Obtain Strong Partners Completed PFS Pilot Plant to Commercialise + = 40
Slide 41: Thank you
For personal use only Thank you www.neometals.com.au + = 41
Slide 42: Supporting Information
For personal use only 42 SUPPORTING INFORMATION 42
Slide 43: Evolution of our Lithium Business
Evolution of our Lithium Business For personal use only • Commercialise Mt Marion • Evaluating local Conventional Downstream Processing • Co-developed, Evaluated, Patented ELi® Process • Co-developed, Evaluated, Patent Pending Dexter for brines • Testing and Evaluating Lithium-Ion Battery Re
Slide 44: Mt Marion Lithium Operation
Mt Marion For personal use only Lithium Operation Neometals 13.8% through Reed Industrial Minerals Pty Ltd + = 44
Slide 45: Strong Operating Partner
Strong Operating Partner For personal use only Australia’s largest contract minerals processor Operate mine-to-port on BOO basis No upfront capital cost to NMT Minimum production levels (~50ktpa LCE) Fixed rate mining and processing costs + = 45
Slide 46: Mine Production/Guidance
Mine Production/Guidance* For personal use only Notes: • Costs include arms length mining infrastructure service agreements with MRL • RIM went into commercial production on 1 March 2017. The production costs net of sales receipts of 37Kt of spodumene produced pre 1 March 2017 were capitalised in li
Slide 47: Outstanding Offtake Agreement
Outstanding Offtake Agreement For personal use only China’s largest, most diverse lithium producer Life-of-Mine, Take-or-pay Offtake Agreement From 1 July moving to transparent Lithium Carbonate/Lithium Hydroxide linked formula, with floor price protection – US$841/t CIF for SepQ Letter of C
Slide 48: High Quality Concentrate
High Quality Concentrate For personal use only “As of the date of this announcement, RIM has shipped a total of about 79,000 tonnes of lithium concentrate, of which 38,000 tonnes have been put into production by the company. After the use of the above raw materials, the calcination of the rotary kil
Slide 49: Mineral Resource Estimate
Mineral Resource Estimate Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 Inferred
Slide 50: Downstream processing: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP (3 US Prov. Pats) Exclusive licence to commercialise + =
Slide 51: Closing the loop: Recycle and re-use
Closing the loop:Recycle and re-use Co For personal use only + = 51
Slide 52: Flow Sheet
For personal use only 52 Flow Sheet + = Co
Slide 53: Lithium Brine Research & Development
For personal use only Lithium Brine Research & Development + =
Slide 54: Our Approach
Our Approach For personal use only • R&D Projects must : • address real market opportunity, • create a sustainable competitive advantage • Have strong business case • Conduct Engineering Cost Studies asap to not waste time/money + = 54
Slide 55: Downstream processing: Direct Extraction of LiCl from Brine
For personal use only Downstream processing Direct Extraction of LiCl from Brine 100% Neometals + =
Slide 56: Replace Evaporation with faster, friendlier LiCl recovery process
Replace Evaporation with faster, friendlier LiCl recovery process For personal use only + = 56
Slide 57: Direct Extraction via Adsorption
Direct Extraction via Adsorption For personal use only • Pat pending Titanate adsorbent • Quick load/strip cycle – 30mins • Complete rejection of sodium • High recovery of Lithium 53-79% • Returns water to salar, no evaporation • Next Step - Proof of Scale + = 57
Slide 58: Downstream processing: Direct Conversion of LiCl to LiOH
For personal use only Downstream processing Direct Conversion of LiCl to LiOH Neometals 70% Mineral Resources Ltd 30% + =
Slide 59: Patented ELi Process
Patented ELi Process - conversion of LiCl to LiOH from any source For personal use only IP • 1 Granted patent (AU) • 18 Pats pending + = 59
Slide 60: Gamechanger for LiOH from brine production
Gamechanger for LiOH from brine production For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 60
Slide 61: Technology Licensing
For personal use only Technology Licensing Neomet Process Neometals - 25% of sub-licencing royalties + =
Slide 62: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, in use commercially for treating refractory copper-gold concentrates. Neometals Laboratory in Montreal First sublicence issued in SeptQ 17 + = 62
Slide 63: Commercialising technology with leading industry partners
Commercialising technology with leading industry partners For personal use only + = 63
Slide 64: Project Development Phasing
Project Development Phasing For personal use only Laboratory scale set up (above) Pilot scale up (below) + = 64
Slide 65: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 65
Slide 66: Strong demand/supply fundamentals
Strong demand/supply fundamentals For personal use only The titanium pigment industry is 10x as large as the lithium compound industry. Growth = GDP Globally declining grades and quality Cost push price inflation + = 66
Slide 67: Globally Significant Ti Resource
Globally Significant Ti Resource For personal use only + = 67
Slide 68: Dual Track Evaluations
Dual Track Evaluations For personal use only Direct Ship Neomet Process Barrambie Geraldton Barrambie Geraldton China - China - Toll Neomet Concentrator China - Toll Ti Pigment Concentrator Ti Pigment + = 68
Slide 69: Why Titanium Hydrolysate?
Why Titanium Hydrolysate? For personal use only + = 69
Slide 70: Mineral Resource Estimate
Mineral Resource Estimate Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transition 8.7
Slide 71: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost A$ 549 million [1 (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)