Neometals Ltd · ASX:NMT
Neometals — Diggers and Dealers 2017
69 slides from Neometals's conference presentation, Aug 9, 2017
Slide 1: The Evolution of Lithium
For personal use only The Evolution of Lithium ® Diggers Presentation 9 August 2017 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
For personal use only 3 + = + =
Slide 4: Investment Thematic – Conservative Exposure to Energy Storage Revolution
Investment Thematic – Conservative Exposure to Energy Storage Revolution For personal use only 8X Growth 4
Slide 5: Focus on Li-Ion Battery Commodities
Focus on Li-Ion Battery Commodities For personal use only 5
Slide 6: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug 5% on market buyback 6
Slide 7: Tactical Plan - FY17
Tactical Plan - FY17 For personal use only • Negotiated increased output and offtake pricing. Running sale process for stake in Mt Marion. • Advancing local LiOH project in parallel with equipment vendor testwork, offtake and partner selection processes. • Fast-track evaluation of proprietary recycl
Slide 8: For personal use only
For personal use only 8 + = + =
Slide 9: 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 New ELi® Process • Co-developed, Evaluated, Patent Pending ELi ® for brines • Testing and Evaluating Lithium-Ion Battery
Slide 10: Our Positions in the Supply Chain
Our Positions in the Supply Chain For personal use only + = 10
Slide 11: Downstream processing adds value
Downstream processing adds value For personal use only + = 11
Slide 12: Mt Marion Lithium Operation
For personal use only Mt Marion Lithium Operation Neometals 13.8% through Reed Industrial Minerals Pty Ltd + = 12
Slide 13: World's largest lithium concentrator
World’s largest lithium concentrator For personal use only + = 13
Slide 14: Globally Significant Operation – 400kt concentrates pa
Globally Significant Operation – 400kt concentrates pa (~50kt LCE) For personal use only Mar Q shipments 31,662t dmt June Q shipments 84,636 dmt + = 14
Slide 15: 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 + = 15
Slide 16: 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 17: Downstream processing: WA-based LiOH Project
For personal use only Downstream processing WA-based LiOH Project Neometals 100% Offtake Option for ~50kt spodumene concentrates
Slide 18: Secure LiOH supply for the West
Secure LiOH supply for the West For personal use only Lithium users want LiOH/Li2CO3 from spodumene converted outside China
Slide 19: Commercialisation Plan
Commercialisation Plan For personal use only • Local plant in WA to minimise transport, 7t spodumene concentrate needed for 1t of Lithium Hydroxide • Utilise local spodumene (Share of Mt Marion and Third Party), natural gas, sulfuric acid and workforce • Use Sulfate/Caustic Flowsheet from leading Li
Slide 20: Potential Site Evaluation
Potential Site Evaluation For personal use only • Hatch benchmarking Capex/Opex for 3 locations: Kalgoorlie, Kwinana and Port Hedland • NMT has 70% beneficial interest in PLA45/3003 which covers the Pilgangoora Tin-Tantalum Plant and Workshop, and historic tailings • Adjacent tenure contains Pilbara
Slide 21: Research & Development: Lithium Titanate (LTO)
For personal use only Research & Development Lithium Titanate (LTO) + =
Slide 22: Superior Anode Material for EV
Superior Anode Material for EV For personal use only • Lithium-Titanate (LTO) has surface area of +100m2/g vs 3m2/g for Carbon = superfast charging = minutes not hours • The Lithium-titanate nanocrystals are superstrong/stable/safe with effective lives of +40 years of daily cycling + = 22
Slide 23: Superior Anode Material for EV
Superior Anode Material for EV For personal use only • We think Lithium-Titanate (LTO) will become the anode of choice for EV and conventional stop-start engines. Apparently so to do Porsche and Johnson Controls/Toshiba. + = 23
Slide 24: Research & Development Plan
Research & Development Plan For personal use only Produced Cycle testing Produce Cycle testing LTO at in coin-cell LTO using in larger CSIRO Li-ion battery Barrambie/ format (18650) in USA Mt Marion Li-ion battery* product* Q2 2017 Q2 2017 Q3 2017 Q4 2017 (*) Subject to Board Approval + = 24
Slide 25: Intellectual Property Portfolio
For personal use only Intellectual Property Portfolio + =
Slide 26: Our Approach
Our Approach For personal use only • 84% of the value of Top 500 US companies is intangible assets such as patents and trademarks. • Less than 1% of US patents are commercially viable • R&D Projects must address a real market opportunity, create a sustainable competitive advantage and have strong bu
Slide 27: Downstream processing: Direct Extraction from Brine
For personal use only Downstream processing Direct Extraction from Brine 100% Neometals + =
Slide 28: Selective LiCl Extraction from Brine
Selective LiCl Extraction from Brine For personal use only + = 28
Slide 29: 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 + = 29
Slide 30: Downstream processing: ELi Process
For personal use only Downstream processing ELi Process™ Neometals 70% Mineral Resources Ltd 30% + =
Slide 31: Conversion of LiCl > LiOH is a potential gamechanger for brine producers
Conversion of LiCl > LiOH is a potential gamechanger for brine producers 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 + = 31
Slide 32: Competitive advantage from Patented Technology for production of LiOH
Competitive advantage from Patented Technology for production of LiOH For personal use only + = 32
Slide 33: ELi potentially levels playing field for western hard rock developers
ELi potentially levels playing field for western hard rock developers For personal use only Business model is to deploy/co-invest in partnership with and/or licence to integrated hard- rock developers in return for equity/royalty stream. + = 33
Slide 34: Downstream processing: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP Exclusive licence to commercialise + =
Slide 35: Lithium Battery Recycling Strategy
Lithium Battery Recycling Strategy Co For personal use only Exploiting cost advantage in recovery of Cobalt from Lithium Cobalt Batteries in Consumer Electronics to develop a low-risk, long-life, high-margin operation with strong partners. Estimated < 5% Recyled + = 35
Slide 36: Closing the loop: Recycle and re-use
Closing the loop:Recycle and re-use Co For personal use only + = 36
Slide 37: Initial test work and Scoping Study on Consumer Electric Batteries
Initial test work and Scoping Study Co on Consumer Electric Batteries - LCO For personal use only + = 37
Slide 38: Scoping Study Results
Scoping Study Results Co For personal use only (± 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 Proceeding to pilot plant – Q3 ‘17 Can be constructed and commissioned in 42 weeks + = 38
Slide 39: Constructing Pilot Plant to process Typical EV Battery Cells
Constructing Pilot Plant to process Co Typical EV Battery Cells - NMC For personal use only + = 39
Slide 40: Project Development Phasing
Project Development Phasing Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 40
Slide 41: Commercial Plant Schematic
Commercial Plant Schematic Co For personal use only Incoming Materials Feed preparation and Purification and Finished digestion Crystallisation Product Residue Disposal Reagent Storage Plant footprint approx. 30m x 50m + = 41
Slide 42: Commercialisation Plan
Commercialisation Plan Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 42
Slide 43: Technology Licensing: Neomet Process
For personal use only Technology Licensing Neomet Process Neometals - 25% of sub-licencing royalties + =
Slide 44: Patented Neomet Process
Patented Neomet Process For personal use only Commodity agnostic – developed in Canada for Ni-laterites, used commercially for treating refractory copper-gold concentrates, adapted for titanium concentrates. + = 44
Slide 45: Commercialising technology with leading industry partners
Commercialising technology with leading industry partners For personal use only + = 45
Slide 46: Project Development Phasing
Project Development Phasing For personal use only Neometals Testing Facility in Montreal Laboratory scale set up (above) Pilot scale up (below) + = 46
Slide 47: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 47
Slide 48: 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 + = 48
Slide 49: Globally Significant Ti Resource
Globally Significant Ti Resource For personal use only + = 49
Slide 50: Globally Significant Ti Resource
Globally Significant Ti 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 + = 50 Sources: Company Reports
Slide 51: Dual Track Evaluations
Dual Track Evaluations For personal use only Direct Ship Concentrate Barrambie Geraldton Barrambie Geraldton China - China - Toll Neomet Concentrator China - Toll Ti Pigment Concentrator Ti Pigment + = 51
Slide 52: 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 + = 52
Slide 53: Neomet Process: Product Efficiency
Neomet Process: 3 Product Efficiency For personal use only Strong EPC & OEM Alliance + = 53
Slide 54: Neomet Process: Patented, low-cost
Neomet Process: Patented, low-cost For personal use only + = 54
Slide 55: Why Titanium Hydroxide?
Why Titanium Hydroxide? For personal use only
Slide 56: Commercialisation Plan
Commercialisation Plan For personal use only Met Sample Pilot Scale Pilot Scale DSO/Toll Drilling and Beneficiation Hydromet Concentrate/ Updated Test work Test work Offtake and/or Pre-feasibility for DSO for Ti (OH)4 Ti (OH)4 DFS Study Evaluation Evaluation* Decisions* Q2 2017 Q3 2017 Q4 2017 Q1 20
Slide 57: Corporate
For personal use only 57 Corporate + = 57
Slide 58: Human & Financial Resources
Human & Financial Resources For personal use only ASX CODE: NMT OTC:RDRUY 18 MONTH SHARE PRICE Last close (7‐8‐2017) A$ 0.29 60 Shares on issue M 544 50 Market capitalisation A$M 157 40 30 Net Cash (at 30‐6‐2017) A$M 46.1 20 Receivables/Investments A$M 16.5 10 0 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Ap
Slide 59: Operating structure
Operating structure For personal use only Neometals Ltd (ASX:NMT) LITHIUM TITANIUM 13.8% 70% 100% 100% 100% 43.1% Reed Reed Australian Mineral Advanced Urban Mining Alphamet Industrial Management Titanium Resources Ltd Minerals Materials Pty Ltd Pty Ltd Pty Ltd Pty Ltd Pty Ltd Ganfeng 25% Lithium Co
Slide 60: Internal restructure
Internal restructure For personal use only + = 60
Slide 61: Investment Proposition
61 For personal use only Investment Proposition + = 61
Slide 62: Lithium: Cash, cashflow & growth options
Lithium: Cash, cashflow & growth options For personal use only 03 02 Downstream 01 process to LiOH. Licence ELi to + + Cashflows from brine rock ~A$56.1M Cash 13.8% Mt Marion producers. plus ~A$16.5M in Li-Ion Battery receivables and Recycling Project investments + = 62
Slide 63: Titanium: A growth story for 2018
Titanium : A growth story for 2018 For personal use only 03 02 Demonstrate DSO/concentrate 01 & Ti(OH)4 Quality. Demonstrated Technical + Demonstrated Economic + Obtain Strong Partners Feasibility Viability to Commercialise + = 63
Slide 64: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 01 02 Obtain Strong Partners to Obtained Strong Partners for + Commenced third party testing + Commercialise ELi/LiB Recycling /LTO Anode Neomet Process -Neomet Process Material + = 64
Slide 65: Thank you
For personal use only Thank you www.neometals.com.au + = 65
Slide 66: Mineral Resource Estimate
Mineral Resource Estimate Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 Inferred
Slide 67: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only FS Life of Plant (LOP) 20 years Pre-production Capital cost US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 82 million Pre-tax Internal Rate of Return 51% Pre-tax NPV (12% real discount rate) US$ 481 million Payback of capital
Slide 68: 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 69: 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)