Neometals Ltd · ASX:NMT
Neometals — Investor Presentation (September 2020)
40 slides from Neometals's investor presentation, Sep 24, 2020
Slide 1: Battery Recycling Without Limits - Tesla Battery Day
BATTERY RECYCLING For personal use only WITHOUT LIMITS Tesla Battery Day September 2020 ASX Code: NMT OTC/Nasdaq Intl: RDRUY
Slide 2: Disclaimer
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 i
Slide 3: Executive Summary
For personal use only Executive Summary The need for LiB recycling The Opportunity The Neometals’ Solution The Business Case Supporting Documents 3
Slide 4: For personal use only
For personal use only • Neometals (ASX:NMT) - project developer with strategic focus on minerals / materials critical to EV and ESS sectors • Four core projects are under evaluation with strong partners • Pivoting towards responsible materials recovery v. upstream mining • JV to scale-up battery rec
Slide 5: Committed to optimising finite resources with circular practices
Neometals is committed to optimising finite resources with circular For personal use only practices to benefit society and the environment for a sustainable future • All projects, particularly EU, focused on materials for decarbonisation and the clean energy revolution • Further – to support domesti
Slide 6: The Need for LiB Recycling
THE NEED FOR LIB RECYCLING For personal use only Hazardous Valuable Carbon Footprint 6
Slide 7: The Rationale Is Manifold
THE RATIONALE IS MANIFOLD Regulation dictating disposal, transport, storage, reporting: For personal use only Fire Risk Pollution (GHG) Landfill Material Circular Shortages Economy These risks have As a result, many EU Battery EOL vehicle Mandatory led to concerns countries have Directive – directiv
Slide 8: Reducing the Level of Hazardous Material
REDUCING THE LEVEL OF HAZARDOUS MATERIAL For personal use only >15MT Discarded LiB from 2020-30 o Expired LiBs are growing in volume. o Small % of LiBs are currently being recycled. o Combustible and hazardous content at risk of being dumped into landfill. o Incumbent recycling technology sees most
Slide 9: Spent LIBs Are Economically Valuable
SPENT LIBS ARE ECONOMICALLY VALUABLE For personal use only OUR STUDIES INDICATE ROBUST ECONOMICS IRRESPECTIVE OF FEEDSTOCK In-situ Value of various LiB’s (per tonne cells) (@Spot) S Scoping Study Opex 2019 ~US$1600/t cells
Slide 10: Strategically Valuable
STRATEGICALLY VALUABLE Recycling is the key to securing an ethical supply For personal use only “Recycling plays pivotal role in securing battery supply chains…the region that leads battery technology and secures the supply chain will have outsized geo-economic and development influence.” Science Ma
Slide 11: Need to Reduce Initial EV Carbon Footprint
NEED TO REDUCE INITIAL EV CARBON FOOTPRINT For personal use only 12
Slide 12: The LIB Raw Materials Are the Cause
THE LIB RAW MATERIALS ARE THE CAUSE For personal use only 13
Slide 13: Hydrometallurgical Recycling Has the Lowest Carbon Footprint
HYDROMETALLURGICAL RECYCLING HAS THE LOWEST CARBON FOOTPRINT For personal use only
Slide 14: The Opportunity
THE OPPORTUNITY For personal use only Market Low Government Tailwind Carbon Support 15
Slide 15: Tailwinds - Economics Driving Demand, De-carbonisation Driving Supply
TAILWINDS – ECONOMICS DRIVING DEMAND, DE-CARBONISATION DRIVING EV/LIB SUPPLY For personal use only o EV’s will be cheaper than ICE cars – compelling economics via battery cost reductions, stimulus and penalties. Sales going up. o Climate concern driving global support: o Paris Agreement o EU Green d
Slide 16: EV Demand Growth Drivers
EV DEMAND GROWTH DRIVERS The decline in battery production costs means the mass market will begin to drive demand. For personal use only Electric Vehicle Sales Driven by Economics Source: BloombergNEF Source: ARK Innovation – Big ideas 2020 17
Slide 17: Government Support for EV
GOVERNMENT SUPPORT FOR EV EU carrot and stick forcing the issue! For personal use only Source: ARK Innovation – Big ideas 2020 18
Slide 18: Climate Change & Net Zero GHG Emissions
CLIMATE CHANGE & NET ZERO GHG EMISSIONS For personal use only 19
Slide 19: EV Demand Forecast
EV DEMAND FORECAST For personal use only Global EV Sales and Penetration Rate Forecast, 2020-35 Source: rho motion 20
Slide 20: Increase LIB's 5x = Supply Risk x
INCREASE LIB’S 5X = SUPPLY RISK X 5 For personal use only World Lithium ion battery Mega factory impact on raw materials mega- factory capacity 2020- Raw Materials demand vs Global 2028 Lithium Ion cell/mega-factory capacity Source: Benchmark Minerals Intelligence The data in this chart does not con
Slide 21: Need to Reduce Reliance on External Supply
NEED TO REDUCE RELIANCE ON EXTERNAL SUPPLY For personal use only 22
Slide 22: Need Domestic Recycling
NEED DOMESTIC RECYCLING For personal use only European Lithium Ion Battery Recycling Feed Source: Benchmark Minerals Intelligence (Battery Cell Capacity) and Neometals Management (Utilisation rate 75%, Scrap Rate 10% and Cell Weight 45g/Wh) 23
Slide 23: With Size and Scale
WITH SIZE AND SCALE For personal use only Major European EV Battery Recycling Facility Capacities Primobius Stage 2 Plant 200,000t (Lag End Of Life Cells) Primobius Stage 1 Plant 20,000t (Leed Production Scrap) Source: Benchmark Minerals Intelligence 24
Slide 24: Our Unique Solution
OUR UNIQUE SOLUTION For personal use only Safe Eco-friendly Pure 27
Slide 25: Our Competitive Advantage (USP)
OUR COMPETITIVE ADVANTAGE (USP) For personal use only o Our exclusive eco friendly flowsheet o A flexible approach means that o High purity chemical products enables a true closed loop that shredding and refining don’t have to suitable for use in cathode (China decarbonises footprint of cell and veh
Slide 26: Neometals High-Level Flowsheet
RECYCLING TECHNOLOGY For personal use only NEOMETALS HIGH-LEVEL FLOWSHEET
Slide 27: Joint Venture with SMS Group
JOINT VENTURE WITH SMS GROUP For personal use only • Incorporation of European JV Co (Primobius) to commercialise NMT R&D • Our joint venture will construct a showcase demonstration plant in Germany and complete feasibility study • Evaluating both 20ktpa and 200ktpa plants • SMS will build, operate
Slide 28: For personal use only
For personal use only Our Joint Venture is an It is a validation of our: Primobius provides a outcome of Neometals’ 1. Business model clear and credible path extensive due diligence to commercialization on our substantive 2. Technical viability, and and cashflow R&D program 3. Size of opportunity 31
Slide 29: European Showcase of Hub & Spoke Model
EUROPEAN SHOWCASE OF HUB & SPOKE MODEL For personal use only o Feed preparation & refining of vehicle & cell maker scrap at SMS facility in Germany o Provide battery grade chemicals for evaluation by potential off-takers 34
Slide 30: Demonstration Plant (DP)
DEMONSTRATION PLANT (DP) For personal use only Output from DP to be allocated to SMS and NMT to design, SMS to build selected customers in battery supply and operate on permitted site in chain for qualification Germany Fully-integrated version of pilot MOUs are typical prelude to flowsheet, commerci
Slide 31: Our Indicative Timeline
OUR INDICATIVE TIMELINE For personal use only Indicative Project Timeline – LiB Recycling Commenced Complete Complete Complete Complete Commence Procurement phase Construction of Demonstration Class 3 ECS Feasibility study and Commercial scale for demonstration demonstration plant Plant Trial Capex
Slide 32: Investors
INVESTORS For personal use only Business Value Growth Case Proposition 38
Slide 33: Aim Is to Be Recycler of Choice for Carmakers and Cell Makers
AIM IS TO BE RECYCLER OF CHOICE FOR CARMAKERS AND CELL MAKERS For personal use only Megafactory (35GWh p.a) Stage 2: Feasibility o Production Scrap o Warranty Returns o End-of-Life o (200,000t p.a) “Expect significant economies of Stage 1: Feasibility scale as Primobius moves to Stage 2 o Production
Slide 34: Value Proposition - ~20ktpa Stage Plant
VALUE PROPOSITION ~20KTPA STAGE 1 PLANT For personal use only Expect significant economies of scale for 200ktpa stage 2 Recycling plant EV & Consumer OPEX feed rate battery feed 50TPD Products US<$7/lb* Inc. high purity Co, contained cobalt 18,236TPA Ni, Cu, Li excluding co-products Capital costs Pa
Slide 35: Security Opportunity
SECURITY OPPORTUNITY For personal use only Strong balance sheet MCAP discrepancy with no debt (zero EV) Able to fund development of Key projects some projects without dilution co-funded Strong Board and Multiple catalysts management, collectively across portfolio the largest shareholders Consistent
Slide 36: Supporting Information
SUPPORTING For personal use only INFORMATION
Slide 37: Our Strategy for Growth
OUR STRATEGY FOR GROWTH Neometals’ uses a different early-partnering model to maximise ROIC For personal use only Identify Build Validate and Return and secure Value realise value value opportunities Organically and through Risk-conscious exploration, Partner to reduce Opex and Dividends and acquisi
Slide 38: For personal use only
Lithium-Ion Battery Recycling Project (Feasibility Stage, MOU for For personal use only 50:50 Incorporated JV) Vanadium Recovery Project (Pre-Feasibility Stage, option to form 50:50 Incorporated JV) Lithium Refinery Project (Feasibility Stage, MOU for 50:50 Incorporated JV) Barrambie Titanium and Va
Slide 39: Corporate Dashboard
CORPORATE DASHBOARD For personal use only ASX: NMT OTC:RDRUY Shares on Issue1 m 545.4 12 Month Share Price Performance Share Price (17-Sep-20) A$ 0.175 Market capitalisation 0.30 7,000 A$m 95.4 (17-Sep-20) Cash (30-Jun-20) 2 A$m 81.3 6,000 Debt A$m - 0.25 5,000 Investments A$m 6.3 Volume (‘000s) (30
Slide 40: Our People
OUR PEOPLE NE Board Members For personal use only Steve Cole David Dr Natalia Doug Dr Jennifer Les Guthrie Chair Reed Streltsova Ritchie Purdie Management Team Chris Reed Jason Carone Michael Tamlin Darren Townsend Irena Ivanova Managing Director / Company Secretary / COO CDO GM - Engineering CEO CF