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EDEN INNOVATIONS LTD — Investor Presentation 2016
Apr 27, 2016
64820_rns_2016-04-27_b21d7673-22f1-4955-8d8a-134a37564a4d.pdf
Investor Presentation
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Investor Presentation April 2016
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Disclaimer
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FORWARD LOOKING STATEMENTS
This presentation includes certain forward-looking statements of Eden’s management . Forward-looking statements are statements that contemplate the happening of possible future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when or whether such performance or results will be achieved. Forward-looking statements are based on information known to Eden when those statements are made or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. The forward-looking statements specified in this presentation have been compiled by Eden’s management on the basis of assumptions (which may or may not turn out to be accurate) made by management and considered by management to be reasonable. Eden’s future operating results, however, are impossible to predict because of risks and uncertainties, and no representation, guarantee, or warranty is to be inferred from those forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.
Forward-looking statements include, but are not limited to, the following:
Statements relating to Eden’s future production capacity and sales levels, and business and financial performance; Statements relating to future research and development results and regulatory approvals of Eden’s products; Statements relating to Eden’s competitive position; and Other statements relating to future developments that you may take into consideration.
Actual results of Eden’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: global economic stability, continued compliance with government regulations regarding production and use of carbon nanotubes in the U.S. or any other jurisdiction in which Eden conducts its operations; changing legislation or regulatory environments in the U.S. and any other jurisdiction in which Eden conducts its operations; credit risks and product sales affecting Eden’s revenue and profitability; exposure to product liability claims; changes and new competitive products in the specialty concrete admixture industry; the level of market acceptance and demand for EdenCrete™; Eden’s ability to effectively market all the product it can produce; Eden’s ability to manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities; and general economic conditions.
This presentation has been prepared as a summary only and does not contain all information relating to Eden’s assets and liabilities, financial position and performance, profits and losses and prospects: it should be read in conjunction with all of the publicly available information in relation to Eden which has been released to the Australian Securities Exchange (ASX Code: EDE).
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Highlights
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Transformational
Product for Huge
Global Market
Strong Significant $s
Management Invested in R&D
Team w/Positive Results
Successful US
US Infrastructure
Commercial Trials
First Georgia DOT
/ First Commercial
Contracts Approval
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Company Overview
Issuer: Eden Energy Limited
Exchange / Symbol: ASX: EDE
Stock Price [(2)] : $0.24
Market Cap [(2)] : $260 million
Eden Energy Ltd
LTM EBITDA [(1)] : $(2.5) million
(ASX : EDE)
(AUSTRALIA)
LTM Net Loss [(1)] : $(6.3) million
Cash & Cash Eq.: $2.5 million
EdenCrete [TM] /Carbon,
Debt: $0.0 million Clean Technology Projects Dual Fuel, Hydrogen
100%
30-Day ADTV $s / Shares [(2)] : $2.7 million /13.1 million
$0.35 70
$0.30 60 Eden EdenCrete Eden Energy
$0.25 50 Innovations Industries India
LLC Inc. Pvt Ltd
$0.20 40 (USA) (USA) (India)
$0.15 30 100% 100% 100%
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$0.35 70
$0.30 60
$0.25 50
$0.20 40
$0.15 30
$0.10 20
$0.05 10
$0.00 0
mm
Volume Share Price
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All $ in AUD 1) As of December 31, 2015 2) As of April 27, 2016
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EdenCrete [TM ]
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www.edencrete.com
EdenCrete[TM] is a revolutionary concrete admixture using carbon nanotubes (CNT)
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EdenCrete[TM ] outperforms other admixtures by optimizing strength and other characteristics
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Permits the use of less concrete and/or steel reinforcement for the same structural integrity
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Translates directly into cost savings (material & labor)
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Both lab and field testing have shown dramatic results
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Carbon Nanotubes (CNT)
•
Tensile strength
•
Weight
•
TEM image of Eden’s MWCNT
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Tensile strength 200-300x steel
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Weight ~17% of weight of steel
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Produces more durable concrete when added to cement
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Monash University Helium Ion Microscope Image
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Build-up of dense, hydrated cement on surface of CNT (see image)
CNT provide:
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Nucleation points for cement hydration
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Ultra-strong nano-scale fibre reenforcement
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CNT facilitate denser, tougher and stronger cement
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Benefits of EdenCrete [TM]
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EdenCrete[TM] works on the nano-level to build strength with excellent workability
| Products | Increases Compressive Strength |
Increases Split-Tensile Strength |
Increases Flexural Strength |
Reduces Shrinkage |
Reduces Permeability |
Increases Abrasion Resistance |
Drawback |
|---|---|---|---|---|---|---|---|
| | | | | | | None | |
| Fibers (PP, PVA, Acrylok) | | | | Reduced workability, difficult to handle |
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| Shrinkage Reducers | | Strength reduction, expensive, reduces workability |
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| Steel Reinforcement | | | Vulnerability to corrosion, and weight |
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| Surface Hardener | | | Compatibility issues (alkali-silica) |
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| Silica Fume, Fly Ash | | | | Expensive, increased water, hard to handle |
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| Steel Fibers | | Reduced workability, difficult to handle |
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CNT in Concrete Applications
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Global Applications
Pour In The Strength In These Key Areas
Increased Abrasion Resistance
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Road & bridge surfaces, pavements, floors
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Lower Permeability/ Lower Shrinkage
Abrasion
Flexural
Shrinkage
Permeability
- Roads, bridges, runways (esp. freeze/ thaw
and salt conditions)
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Coastal and marine applications
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Dams, spillways, sewer/water pipelines
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Increased Compressive and Tensile Strength
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High rise buildings, bridges, retaining walls, pre-fabricated
Tensile
Compressive
Staining
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CNT in Concrete Results to Date
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U.S. and Australian Concrete Trials
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ASTM C494 “S” - Results to 90 Days
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| EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
EdenCreteTM ASTM C494 Results (Reported by Intelligent Concrete LLC)* |
|
|---|---|---|---|---|---|---|---|---|---|
| Test | % Increase of EdenCreteTM (4gal/yd3) over Reference | ||||||||
| Age (Days) | |||||||||
| 1 | 3 | 7 | 28 | 56 | 90 | 180 | 365 | ||
| Compressive Strength (ASTM C39) | 25% | 35% | 39% | 41% | 41% | 39% | 5/25/16 **** |
12/1/16** | |
| Flexural Strength (ASTM C78) | 25% | 19% | 32% | Completed | |||||
| Split-tensile Strength (ASTM C496) | 29% | 22% | Completed | ||||||
| Abrasion Resistance (ASTM C7779) | 56% | 59% | Completed | ||||||
| Length Change (ASTM C157; Shrinkage) | 61% Reduction; Completed | ||||||||
| Time of Set (ASTM C403) | Reduced: Initial set 3 min, Final set 4 min; Complete | ||||||||
| Freeze / Thaw Resistance (ASTM C666) |
Results within the 180-day interim report; 6/6/16** |
~~* Testing by Intelligent Concrete LLC. Intelligent Concrete is entitled to receive royalties on sales of EdenCrete[TM ]~~
** Approximate Expected Dates
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CNT in Concrete Results to Date
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| EdenCreteTM | EdenCreteTM | EdenCreteTM | EdenCreteTM | EdenCreteTM | % | Improvements* | Improvements* | Improvements* | Improvements* | Improvements* | Improvements* | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EdenCreteTM | Performance versus Dose | in Gallons per Yard | |||||||||||||||
| 70% | |||||||||||||||||
| 60% | |||||||||||||||||
| Perdent Improvement Over Control | 20% 30% 40% 50% |
Compressive Strength | |||||||||||||||
| 10% | Tensile Strength | ||||||||||||||||
| Permeability (BER) | |||||||||||||||||
| Abrasion Resistancwe | |||||||||||||||||
| 0% | |||||||||||||||||
| 0 | 0.5 | 1 | 1.5 | 2 | 2.5 | 3 | 3.5 4 |
||||||||||
| Dose in Gallons per Yard |
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GDOT I-20 Field Trial
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% Improvement with EdenCrete[TM(1) ]
Picture from August 2015 GDOT I-20 Field Test
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Compressive Strength - 45.8% at 56 days
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Abrasion Resistance - 56% at 56 days (20 Minutes Trial)
Outcomes
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GDOT Approval To Use in 24hr Mix / B Class Concrete
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2nd Field Trial, Class A Concrete Q2/Q3 2016
EdenCrete[TM] - Cost/Benefit Analysis[(2) ]
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EdenCrete[TM] current price is $25 per gallon
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Cost per yard determined by application rate[(2)]
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Anticipated Extra Cost ≈ 3%-20%[(2,3) ]
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Anticipated Increased Service Life >100%
Georgia Department of Transportation (GDOT)
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Anticipated IRR ≈ 50%
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(1) 90 Days - 4 gallons
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(2) Application Rate will vary for different targeted applications
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(3) Based on total GDOT costs per yd3
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GDOT I-20 Cumulative Cost Analysis
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Anticipated Cumulative Cost Comparison
Cost Benefit Analysis
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$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
0 10 20 30 40
Years
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Projected Extra Cost For GDOT
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Based on total GDOT costs per yd[3] ≈ 3% - 20%
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Application Rate will vary for different targeted applications
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Anticipated Increased Service Life >100%
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Anticipated IRR < 50%
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REFERENCE CONCRETE EDENCRETE500
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- Using EdenCrete[TM] for 25 years, 60% more repairs can be achieved on the same budget[(1)]
(1) Based on GDOT actual costs for I-20 Field Trial
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EdenCrete [TM] Case Study
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Ultra High Wear and Abrasion Resistance Application
Control Trial Slab after 6 months Significant cracks and evidence of wear
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Typical ultra high load / abrasive application at test site
EdenCrete[TM] Trial Slab after 6 months No cracks or evidence of wear
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6 month field trial - no cracking or visible wear - results in commercial order:
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50% thinner than new ultra high strength slab
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Only EdenCrete[TM] (no steel mesh or rebar)
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No significant sub-base preparations
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At least a comparable 5-year service life
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Total cost saving of approximately 45%
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US Marketing Update
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Plans and Initial Target Markets
Progress Update
- US Infrastructure (Highways /Bridges/MRT)
US Infrastructure
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Other Applications: Pre-Cast & Ready Mix Concrete, Coastal and Marine
- GDOT Field Trial completed on I-20 Interstate Highway- August 2015
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Interstate Highways (73,000kms*)
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≈$40 billion p.a. preservation/maintenance bill **
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Use ≈48mt of cement p.a. (≈ 40% of US cement market)*
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GDOT approval for use in 24-hour repair mix/ B Class mix
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GDOT specifications for B Class being drafted
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2[nd] GDOT Field Trial approved - Class A Mix
Georgia Infrastructure
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Over 14,700 bridges and 2,600 identified as Structurally Deficient/ Functionally Obsolete ***
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Commercial sales / Ongoing trials (U.S./ Australia)
- Ready Mix Concrete
-
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Fixing America’s Surface Transportation Act – Dec.
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2015
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US$225.2 Billion highway investment over 5 years
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Abrasion Resistant Applications
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Pre-Cast Concrete
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Source: U.S. Geological Survey Fact Sheet 2006-3127
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** Source: FHWA Highway Statistics 2013
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* Source: U.S. Department of Transportation - DOT Fact Sheets Highlight Grim State of U.S. Roads and Bridges (July 9, 2015)
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US Production Scale-Up
Estimated Costs / Timetables / Outputs
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| Location | Est. Cost US $ |
Estimated Output p.a. |
Estimated Value(2) US $ p.a. |
Start Date | Date To Compete |
Anticipated Source of Funds |
|---|---|---|---|---|---|---|
| Colorado Stage 1 |
Funding (completed) |
108,000 galls p.a. | $2.7m | Q1 2016 | Q2 2016 | Equity (completed) |
| Colorado Stage 2 |
$2.5m | 2-2.4m galls p.a. | $50m-$62m | Q2 2016 | Q1 2017 | Equity |
| Georgia Stage 1a(1,3) |
$37m | 12.5m galls p.a. | $312.5m | Q4 2017/ Q1 2018 |
Q1/Q2 2019 | Equity/ Debt/ Govt. Incentives |
| Georgia Stage 1b(1,3) |
$35m | 50m galls p.a. (including Georgia Stage 1a output) |
$1.25 billion | 2019/2020 | 2020-2022 | Cashflow |
| Georgia Stage 2(1,3) |
$60m | 100m galls pa (including Georgia Stages 1a/1b output) |
$2.5 billion | 2020 / 2021 | 2022-2023 | Cashflow |
(1) Land in Georgia is sufficient for expansion up to 10 stages (i.e. 500m galls. p.a. output)
(2) Selling Price of EdenCrete[TM] is US$25/ gallon. ($18/gall for early adopters)- assumes all targeted production can be sold
(3) Eden proposes to establish its large scale global production plant in Augusta, Georgia, and for which purpose the State of Georgia and the Augusta Economic Development Authority have agreed to provide a combined US$24.7 million worth of financial incentives, including an IRB-financed grant of 112 acres of suitable industrial land worth approximately $2.8 million construction commitments aggregating approx. $4.2 million and the balance being largely provided through abatement of future taxes and levies. From this plant Eden proposes to supply EdenCrete[TM] to both the entire North American market and also export it to the rest of the world through the Port of Savannah .
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ASX: EDE Greg Solomon Executive Chairman Level 15, 197 St Georges Terrace, Perth, Western Australia, Telephone +618 9282 5889 Email [email protected] Website: www.edenenergy.com.au
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