NH3 Clean Energy Limited · ASX:NH3
NH3 Clean Energy — Hexagon Resources — Shareholder Meeting (November 2017)
21 slides from NH3 Clean Energy's shareholder meeting presentation, Nov 29, 2017
Slide 1: McIntosh; high quality Australian graphite for growing global markets
McIntosh; high quality Australian graphite for growing global markets Update on product development to achieve a portfolio of premium priced products Mike Rosenstreich 29 November 2017, Perth, WA Annual General Meeting of Shareholders
Slide 2: Product Development & Marketing: Graphite is not a commodity
Product Development & Marketing Graphite is not a commodity It is not a “field of dreams” Just because you build it – does not Graphite is an input into a huge variety of products across many mean that “they will come” industries. To achieve sales (offtake) requires: • Intense process of product dev
Slide 3: Our current universe of opportunities downstream
Product Development & Marketing At the downstream – our [current] universe of opportunities: 99.999% 99.99% Product Development – 99.95% “road map” SPHERICAL Broad, price & product GRAPHITE fields relevant to GRAPHITE PURITY (% TGC) 97% McIntosh material. GENERAL FLAKE CONCENTRATE 94% FINE-SMALL FLA
Slide 4: Downstream processing
Product Development & Marketing 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 battery a
Slide 5: Upstream: flake size distribution by deposit
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: Based on petrographic examination
Slide 6: Large flake supported by concentrate flake size analysis
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 7: McIntosh Flake Graphite Project: The Resource
McIntosh Flake Graphite Project The Resource – as upstream as it gets. 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 err
Slide 8: McIntosh Flake Graphite Project: Project Development
McIntosh Flake Graphite Project Project Development • McIntosh Flake Graphite Project - is well located “politically” & geographically in an established mining area. • Completed PFS for Stage 1 Processing – NPV of $260M & IRR of 46% (pre-tax). • Currently in FS mode. Major technical, Opex and Capex
Slide 9: 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 10: 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 11: 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.
Slide 12: Downstream processing - Expandability
Product Development & Marketing Downstream processing - Expandability B Dry acid intercalated +60 Mesh prior to heat expansion C Acid intercalated graphite being expanded in a furnace at 950˚C. Exfoliation process – some attributes linked to graphene production.
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 - 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 Concentrate as per PFS. 99.95% Now, a portfolio of products is SPHERICAL the key to selling c. 100kt GRAPHITE concentrate
Slide 16: A simple example of 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 17: Project Development Pathway
Project Development Pathway Incorporating new test work findings. The plan is to: 1. Complete Feasibility Study for recovery of 3 high-purity flake concentrate products. 2. Commence pilot programs for Stage 2 processing; • Spheroidisation • Expandable graphite; and • Purification of the above. 3. In
Slide 18: 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 19: 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 20: 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 21: Hexagon Resources Limited Contact
Hexagon Resources Limited www.hexagonresouces.com Contact Mike Rosenstreich Managing Director [email protected] +61 (08) 6244 0349
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