Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (October 2015)
41 slides from Neometals's investor presentation, Oct 7, 2015
Slide 1: Investor Presentation
For personal use only Investor Presentation ASX Code: NMT October 2015 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: Our Strategy
Our Strategy For personal use only Develop low-cost operations with strong partners Quality captive resources Attractive commodities with strong, long-term fundamentals Focus on low-cost, downstream processing technologies for long-term profitability Reduce financial and operating risk via industry
Slide 4: Corporate Details
Corporate Details For personal use only ASX Code:Price NMT OTC: NMTUY (AU cents) ASX Code: NMT OTC: RDRUY 20 Last close ( 12 Dec 2014 ) 18 $ 0.036 Last close (5 Oct 2015) A$0.18 16 14 12 Shares on issue 10 M 499.4 Shares on issue 509 M 8 6 4 Cash (30 June 2015) (*) A$7.5 M Cash 2 (30 Sept 2014) $m 1
Slide 5: Group structure
Group structure For personal use only Neometals Ltd (ASX:NMT) 45% 100% 70% Process Minerals Int’l 30% Reed Reed 30% Process Minerals Int’l Pty Ltd (Mineral Industrial Advanced Minerals Materials Pty Ltd (Mineral Resources Ltd) Pty Ltd Pty Ltd Resources Ltd) 25% Jiangxi Ganfeng Lithium Co., Ltd Mount
Slide 6: All the right elements
For personal use only for) All the right elements
Slide 7: Lithium Fundamentals
Lithium Fundamentals For personal use only + = 7
Slide 8: Lithium Fundamentals
Lithium Fundamentals For personal use only + = 8
Slide 9: Lithium Fundamentals
Lithium Fundamentals For personal use only + = 9
Slide 10: Lithium Fundamentals
Lithium Fundamentals For personal use only + = 10
Slide 11: Lithium Fundamentals
Lithium Fundamentals For personal use only + = 11
Slide 12: Mt Marion Lithium Project
For personal use only Mt Marion Lithium Project 45% Neometals Ltd 25% Ganfeng Lithium 30% and Operator Mineral Resources Ltd (ASX:MIN) + = 12
Slide 13: Project Strategy
Project Strategy For personal use only Mt Marion Lithium Integrated Lithium Lithium Mine Hydroxide Plant Producer with Partner(s) Operated by MIN Ganfeng Offtake = IN PATENTED CONSTRUCTION PFS COMPLETED + = 13
Slide 14: High Quality Partners
High Quality Partners For personal use only • Australia’s largest contract minerals processor • Provide complete mine-to-port solution • Build-Own-Operate basis • No upfront capital cost to NMT • Option to acquire up to additional 13.1% RIM for US$1.5M per 1% (US$19.6M) + = 14
Slide 15: High Quality Partners
High Quality Partners For personal use only • China’s 2nd largest lithium producer • Life-of-Mine Take-or-pay offtake • At market price with floor price protection • Ability for MIN/Neometals to take equity share of production after 3 years. • Option to acquire up to additional 24% RIM for US$1.5M p
Slide 16: Flythrough
16 For personal use only Flythrough + =
Slide 17: Project Tenure
17 For personal use only Project Tenure + =
Slide 18: Site layout
18 For personal use only Site layout + =
Slide 19: Lithium Concentrate Prices
Lithium Concentrate Prices For personal use only + = 19
Slide 20: Near-term milestones
Near-term milestones For personal use only Commence Commence Commence First Construction Mining Processing Shipment Nov 2015 Q1 CY16 July 2016 Q4 CY16 + = 20
Slide 21: Downstream processing
For personal use only Downstream processing Lithium Hydroxide (LiOH) 70% Neometals Ltd 30% Mineral Resources Ltd
Slide 22: Lithium Hydroxide Fundamentals
Lithium Hydroxide Fundamentals For personal use only
Slide 23: Adaption of Chlor-Alkali Process
Adaption of Chlor-Alkali Process For personal use only New Feed → Conventional Technology + = 23
Slide 24: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only Brine Competitors Input Price US$5,000/t x1t Final Final Lithium Lithium Product Chlorination Product Carbonate Carbonate Caustic- LiOH Spodumene Purification LiOH Technical Battery isation Battery Electrolysis Battery Grade Grade Grade Grade Co
Slide 25: Own low-cost Patented Technology
Own low-cost Patented Technology For personal use only + = 25
Slide 26: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only 10,000t LiOH Average [ Annual Production 8,810t Li2CO3 Life of Plant (LOP) 20 years Life of Plant (LOM) Revenue US$ 3.15 billion Pre-production Capital cost US$ 83 million1 Pre-tax Net Cashflow A$ 1.19 billion Average Cost per tonne
Slide 27: Commercialisation Plan
Commercialisation Plan (*) For personal use only Complete Pilot Plant FEED (FEL3) Definitive Hydromet & & Final Feasibility Electrolysis Investment Study Decision 2015/16 2016 2017 (*) Subject to RAM Board Approval + = 27
Slide 28: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 28
Slide 29: Titanium Fundamentals
Titanium Fundamentals For personal use only + = 29 Sources: Company Reports
Slide 30: High Quality Resource
High Quality Resource For personal use only 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: Project Strategy
Project Strategy For personal use only Mine, Concentrate Produce Titanium Integrated Titanium and Truck Pigment with Producer Titanium Industry Partner Concentrate + = + = 31
Slide 32: Licenced low-cost Technology
Licenced low-cost Technology For personal use only Competitors Input Price US$1,000/t X1.2t Final Final Chlorination Product ROM Chlorination Product Rutile & Purification Fine Ore & Purification Fine Pigment Pigment Cost Cost US$1,214/t US$2,100 - US$572/t 2,300/t Mini-pilot scale testing in Cana
Slide 33: Licenced low-cost Technology
Licenced low-cost Technology For personal use only + = 33
Slide 34: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only 98,000t TiO2 [1 Average Annual Production 2,000t V2O5 234,000t Fe2O3 Life of Mine (LOM) 19.6 years Life of Mine (LOM) Revenue A$ 8,746 million Pre-production Capital cost (excluding EPCM A$ 549 million1 and Contingency) Pre-tax Net
Slide 35: Commercialisation Plan
Commercialisation Plan For personal use only Pilot Scale Complete Beneficiation Definitive Final Pre-feasibility & Hydromet Feasibility Investment Study Test work Study Decision Aug 2015 2015/16 2016/17 Attract JV Partner + = 35
Slide 36: Investment Proposition
For personal use only 36 Investment Proposition + = 36
Slide 37: Lithium: Cash and cashflow
Lithium : Cash and cashflow For personal use only Binding Agreements Fully funded, with Ganfeng fully permitted 03 02 Production commencing 01 mid-2016 Great resource Strong partner + Take or pay offtake agreements = Plus Potentially US$46.8M from Strong market option exercise + = 37
Slide 38: Titanium: A growth story for 2016
Titanium : A growth story for 2016 For personal use only 03 01 02 Demonstrate Technical + Demonstrate Economic + Obtain Strong Partners Feasibility Viability to Commercialise + = 38
Slide 39: Thank you
For personal use only Thank you www.neometals.com.au + = 39
Slide 40: Mineral Resource Estimate - Mt Marion
Mineral Resource Estimate for the Mt Marion Lithium deposit, as at September 2015, for a block cut-off grade of 0% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe2O3 % Indicated Area 1 4.43 1.46 1.32 Area 2 1.30 1.47 1.60 Area 2W 3.39 1.48 1.24 Area 4 0.94 1.25 1.36 Indicated
Slide 41: Mineral Resource Estimate - Barrambie
Mineral Resource Estimate for the 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 Transit