NH3 Clean Energy Limited · ASX:NH3
NH3 Clean Energy — Hexagon Resources — Investor Presentation (December 2017)
24 slides from NH3 Clean Energy's investor presentation, December 2017
Slide 1: McIntosh; high quality Australian graphite for growing global markets
McIntosh; high quality Australian graphite for growing global markets Corporate Update – current focus on product development to achieve a portfolio of premium priced products Mike Rosenstreich Managing Director December 2017 1 of 24
Slide 2: HXG; an advanced materials company – initial focus is graphite
HXG; an advanced materials company – initial focus is graphite Graphite is not a commodity Graphite is a key input into a huge variety of products & industries: It is not a “field of dreams” 1. Part of the surging energy metal trend as a key component of batteries: Just because you build it – does n
Slide 3: Core Value Driver is Product Development
Core Value Driver is Product Development Product Development – Map of Opportunities: 99.999% 99.99% Broad, price & product 99.95% fields relevant to McIntosh material. SPHERICAL GRAPHITE GRAPHITE PURITY (% TGC) 97% Understanding the product potential drives both upstream and downstream processing GE
Slide 4: Downstream processing
Core Value Driver is Product Development Downstream processing Downstream = additional “value-add” processing to meet the customer’s needs. Value-add processes being tested. End Uses. 1. Milling (Micronising) & Li-ion batteries anode material Spheroidisation 2. Expanded/Expandable Graphite Advanced
Slide 5: McIntosh Flake Graphite Project – Project Development
McIntosh Flake Graphite Project Raw Materials - Project Development • Raw materials supply - large scale (100ktpa) of high- grade flake graphite concentrate benefiting from clean, benign ore type; • Completed PFS for Stage 1 Processing – NPV of $260M & IRR of 46% (pre-tax) [refer Appendix 1]; • Curr
Slide 6: McIntosh Flake Graphite Project – The Resource
McIntosh Flake Graphite Project Raw Materials - The Resource 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 oc
Slide 7: McIntosh Flake Graphite Project - what it might look like
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. 7 of 24
Slide 8: Customer engagement through test work outcomes
Product Development & Marketing Customer engagement through test work outcomes Graphite users want to diversify their supply chain. Strong, credible test work outcomes open doors – as well as the appeal of a stable jurisdiction such as Australia. Predicting processing performance is essential to con
Slide 9: Product Development & Marketing – Upstream flake size distribution
Product Development & Marketing At the upstream end Upstream = the mine face New – Identified a major large flake endowment at the McIntosh Project resources; an important value-add. Flake Size Distribution by Deposit >450 350-450 Flake Size (μm) 250-350 Aim is to: 150-250 Based on petrographic exam
Slide 10: Large flake supported by flake size analysis of concentrate
Product Development & Marketing At the upstream end Large flake in the ore is supported by flake size analysis of concentrate from McIntosh Flake Size Categories - HXGCon1 1.1% 1.8% 11.9% • McIntosh graphite concentrate contains a significant proportion of larger flake sizes with 85% of flake greate
Slide 11: Downstream processing - spheroidisation
Product Development & Marketing Downstream processing - spheroidisation • Pre-Feasibility - examined only production of a high-purity flake concentrate for the lithium ion battery market. Now assessed milling and shaping of McIntosh flake. • Recent battery test work results for spheroidised material
Slide 12: Downstream processing - Expandability
Product Development & Marketing Downstream processing - Expandability It Expands! 220% Expansion Factor for +60 Mesh (+250 micron) sized flake achieved in first-ever test work for McIntosh flake graphite resource. 220% is “well above average” and a highly marketable attribute. 12 of 24
Slide 13: Downstream processing - Expandability
Product Development & Marketing Downstream processing - Expandability • Flake sizing analysis indicated more than 78% of concentrate flake was larger than 60 Mesh (250 microns). • Synthesis of expandable McIntosh flake graphite did not require the use of exotic chemicals or complicated treatments; o
Slide 14: Downstream processing - Purification
Product Development & Marketing Downstream processing - Purification ***Work in Progress*** Purification is generally undertaken by chemical (acids) or thermal (heat) processes. Purification test work is an important aspect of the product development strategy for two core reasons: 1. Environmental a
Slide 15: Marketing Plan for McIntosh Products – HXG Target Markets
Product Development & Marketing Marketing Plan for McIntosh Products – HXG Target Markets 99.999% 99.99% Indicates HXG Product Development Interest Started with a bulk flake graphite concentrate (PFS). 99.95% SPHERICAL GRAPHITE GRAPHITE PURITY (% TGC) 97% PFS Bulk CONCENTRATE 94% GENERAL FLAKE CONCE
Slide 16: Marketing Plan for McIntosh Products – HXG Target Markets
Product Development & Marketing Marketing Plan for McIntosh Products – HXG Target Markets 99.999% Indicates HXG Product 99.99% Development Interest Branched out from single Bulk 99.95% Concentrate as per PFS. SPHERICAL Now, a portfolio of products is GRAPHITE the key to selling c. 100kt concentrate
Slide 17: Marketing Plan for McIntosh Products – HXG Target Markets
Product Development & Marketing Marketing Plan for McIntosh Products – HXG Target Markets 99.999% 99.99% Indicates HXG Product Development Interest High-purity is a means to achieve premium pricing. 99.95% SPHERICAL McIntosh material “starts” GRAPHITE clean so a big comparative advantage cost wise.
Slide 18: A simple Example – diversification and price enhancement
Product Development & Marketing 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 %
Slide 19: Next steps
Product Development & Marketing Next steps. 1. Complete initial test work on purification. 2. Update Stage 1 process flow sheet and undertake test work. 3. Continue on Stage 2, downstream test work – aim to expand the product mix and improve the specifications. Core objective is to leverage recent o
Slide 20: Hexagon Corporate Snapshot
Hexagon Corporate Snapshot Hexagon Resources Limited (ASX:HXG) is a junior exploration company listed on the ASX. Focussed on strategic & energy related minerals 2 key projects in Western Australia • McIntosh Graphite Project • Halls Creek Gold/Base metals project Shares on Issue 248M Options on iss
Slide 21: McIntosh Project Summary
McIntosh Project Summary Off-take Parties – take note. 1. Large scale deposits - established Mineral Resources of 21.3Mt at 4.5% TGC underpinned by Exploration Target of 110 to 220 Mt at 2.5-5% TGC* - Long-term, reliable supply 2. Advanced project well on the path to commercialisation - completed PF
Slide 22: Important Notices
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 compiled by
Slide 23: A1: McIntosh Project - PFS Summary
A1: McIntosh Project - PFS Summary Positive Pre-Feasibility Outcomes… 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 Realisation Costs (FOB) AUD/t Conc 51 Total Mined Mt
Slide 24: Hexagon Resources Limited – Contact
Hexagon Resources Limited www.hexagonresouces.com Contact Mike Rosenstreich Managing Director [email protected] +61 (08) 6244 0349 24 of 24
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