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NEOMETALS LTD — Investor Presentation 2018
Jun 17, 2018
65430_rns_2018-06-17_fe860fc5-b640-4a79-97ae-47fb67319596.pdf
Investor Presentation
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All the right elements®
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~~ASX Code: NMT OTC/Nasdaq Intl: RDRUY~~
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Disclaimer
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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 in this document is of general background and does not purport to be complete. It should be read in conjunction with Neometals’ other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.
Forward-looking information: This document contain ~~s,~~ opinions, projections, forecasts and other statements which are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance.
Any opinions, projections, forecasts and other forward-looking statements contained in this document do not constitute any commitments, representations or warranties by Neometals and its associated entities, directors, agents and employees, including any undertaking to update any such information. Except as required by law, and only to the extent so required, directors, agents and employees of Neometals shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever nature arising in any way out of, or in connection with, the information contained in this document.
Mount Marion Project: This document contains certain historical and forecast financial and production information regarding the Mount Marion Project and Reed Industrial Minerals Pty Ltd, the owner of the Project (Neometals: 13.8% shareholding). Neometals was not involved in preparing this information, which is taken from a 8 February 2018 announcement by Mineral Resources Limited, the operator of the Project (via its wholly owned subsidiary, Process Minerals International Pty Ltd). However, Neometals is not aware of any reason why that information is incorrect as released by Mineral Resources Limited.
Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise.
Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Neometals. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.
Investment risk: An investment in securities in Neometals is subject to investment and other known and unknown risks, some of which are beyond the control of Neometals. The Company does not guarantee any particular rate of return or the performance of Neometals. Investors should have regard to the risk factors outlined in this document.
Competent Persons Statement:
The information in this document that relates to “Mt Edwards Nickel- Mineral Resource Estimate”, “Barrambie Project - Mineral Resource Estimate”, “Barrambie Pre Feasibility Study Results”, “Mt Marion Mineral Resource Update and “Lithium Battery Recycling – Scoping Study Results” are extracted from ASX Releases set out below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Releases set out below, and in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in those ASX Releases continue to apply and have not materially changed.
| 25/08/2015 | Barrambie Pre Feasibility Study Results | 19/4/2018 | Mt Edwards Nickel–Mineral Resource Estimate |
|---|---|---|---|
| 27/10/2016 | Mt Marion Mineral Resource Upgrade | ||
| 22/02/2017 | Lithium Battery Recycling–Scoping Study Results | ||
| 17/4/2018 | Barrambie Project–Mineral Resource Estimate |
The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production targets in the Barrambie Pre-feasibility Study and Lithium Battery Recycling – Scoping Study continue to apply and have not materially changed.
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Executive Summary
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Neometals Ltd (ASX:NMT) is a diversified technology materials development company with a clear growth plan to move downstream and increase margins from its sustainable products
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WA headquarters, Market Cap ~$180m, Cash ~$41m*, no debt, cashflow positive
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Integrated lithium arm, titanium development arm & proprietary technologies supporting both
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Lithium business:
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- 13.8% stake in Mt Marion mine - strong cashflow and product offtake rights;
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Developing the Kalgoorlie Lithium Refinery - downstream processing with secure access to spodumene; and
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Commercialising lithium battery ‘end of life’ recycling technology.
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Titanium/Vanadium
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100%-owned Barrambie Titanium-Vanadium Project (World’s second-highest grade titanium deposit – 53 million tonnes @ 21% TiO2)
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Technologies that support material opportunities by driving down costs, de-risking, attracting partners and creating potential licencing revenue royalty stream
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- As at 6th June 2018
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** - As at 30[th] March 2018
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Long-term Strategy
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Over last 3 Financial Years we have returned ~$27.9M in 3 consecutive dividends and ~$6.2M in on-market share buyback
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Lithium Business Unit
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Mt Marion Lithium Mine
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Mt Edwards Lithium Project
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Kalgoorlie Lithium Refinery Project
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• Lithium Battery Recycling Project
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Upstream processing Mt Marion Lithium Mine
Neometals 13.8% Mt Marion Offtake Option for min 12.37% spodumene concentrates
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Mt Marion – World Class Operation
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NMT holds 13.8% equity
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• 1H FY18 EBITDA A$52M (100% basis)
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• 1H FY18 Profit A$7.35M (NMT share)
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Large Resource – 78Mt*
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Open at depth/along strike
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Processing 2.4Mtpa
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Operating at steady state
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Expanding to produce all 6% Li O concentrates in FY19 2
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Offtake rights for min 12.37% production from 2020
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- Refer supporting information
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Downstream processing Kalgoorlie Lithium Refinery
Neometals 100%
Mt Marion Offtake Option for min 12.37% spodumene concentrates
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Build a secure LiOH supply for the Western cathode/battery/car makers
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Build a secure LiOH supply for the Western cathode/battery/car makers
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7 t of Spodumene Concentrate per tonne of LiOH
Local Processing means:
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No road transport to port
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• No port/shipping costs
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• No VAT (17%) on import into China
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Proposed Kalgoorlie Lithium Refinery
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Utilise: • local/state/fed govt support
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• local workforce
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• sealed roads
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• rail infrastructure
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• grid power
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• reclaimed water
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• natural gas
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• sulfuric acid
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• Conventional flowsheet removes technology risk
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MoU with City of Kalgoorlie-Boulder
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2 year option to sublease 40 hectare site.
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• 70km by road from Mt Marion
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• 5km from City
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• Supply of reclaimed water
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• Assistance with connection to essential infrastructure
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• Assistance with procurement of utilities
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Commercialisation Plan
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Offtake/Partner Selection Process
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() Subject to NMT Board Approval (*) Subject to FID
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Potential growth options
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Co Downstream processing Lithium Battery Recycling Neometals 50% of IP (5 US Prov. Pats) Exclusive licence to commercialise
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Co
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Typically = 20% Co
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Co
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Scoping Study Results (± 30% accuracy) • Operating Costs US$4.45/lb Co (US$10k/t)
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• Spot price US$25/lb Co (US$55k/t)
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• Capex US$4.5M
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• Pilot Plant being commissioned.
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• Can be constructed and commissioned in 42 weeks
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Pilot Plant - Montreal Co
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Commercialisation Plan Co
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Running Partner/Site Selection Processes in parallel with test work and engineering programs
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Mt Edwards Lithium Project
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Neometals 100%
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Fertile LCT pegmatites present
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• 240 km[2] of tenure and mineral rights
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• Excellent road/rail/energy infrastructure
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• Multiple Historic Nickel Mines containing +48,000t Ni metal
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- (*) Subject to completion. Refer to NMT announcement “Key Acquisition of Strategic Lithium Project” released on 15 March 2018
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Mt Edwards Central Area Targets
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Mt Holland Lithium Project
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Neometals via ~36% of Hannans Ltd (ASX:HNR)
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Location map showing Hannans 100% owned tenure. Refer to ASX:HNR Announcement “ Hannans – Mt Holland Lithium” released on 16 January 2018.
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Location map showing Western Australian producing mines and exploration projects (sourced from publicly available information
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Investment Proposition
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Company Highlights
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Diversified exposure to world’s most sought advanced materials
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Multi revenue streams
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Focus on downstream integration to maximise margins
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Strong track record – building projects, attracting partners, de-risking & returning $
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Lithium materials validated – inside consumer electronic/EV batteries now
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Security over long life supply from top tier Western jurisdiction
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Strong balance sheet and cashflow
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Clear growth strategy
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Enabler of products for sustainable future
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Thank you www.neometals.com.au
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SUPPORTING INFORMATION
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| ASX CODE: NMT | OTC:RDRUY | OTC:RDRUY |
|---|---|---|
| Last close (6‐June‐18) | A$ | 0.34 |
| Shares on issue | M | 543.5 |
| Market capitalisation | A$M | ~185 |
| Net Cash (31‐Mar‐17) | A$M | 41.8 |
| Receivables/Investments | A$M | 16.5 |
| MAJOR SHAREHOLDERS | MAJOR SHAREHOLDERS |
|---|---|
| David Reed | 9 % |
| Global X Lithium ETF | 3 % |
| Top 20 (31‐May‐18) | 36 % |
12 MONTH SHARE PRICE
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Corporate
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Tactical Plan – FY18
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-
Increase offtake quality to all 6% Li2O and revenues through plant upgrade
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Advance local LiOH project with vendor testwork, offtake and partner selection processes.
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Fast-track evaluation of recycling process pending Mini-Max Test work.
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Fast-track evaluation of Barrambie pending Mini-Max Test work and partner selection outcomes
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Build royalty portfolio from licensing ELi[®] , Dexter, Recycling and Neomet Processes
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Board of Directors
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Steven Cole Chris Reed
David Reed
Chairman
Managing Director Non‐Executive Director
Natalia Streltsova Non‐Executive Director
Doug Ritchie Non‐Executive Director
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Steven has 35 years of professional, corporate and business experience through senior legal consultancy, as well as a range of executive management and non executive appointments. His extensive boardroom and board sub-committee experience includes ASX listed, statutory, proprietary and NFP organisations covering the industrial, financial, educational, professional services, health and resources sectors.
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Chris started in the mining industry in 1990 and cofounded Reed Resources in 2001. Chris holds a Bachelor of Commerce from the University of Notre Dame and a Graduate Certificate in Mineral Economics from WA School of Mines. He is a Member of the AusIMM and immediate past VicePresident of the Association of Mining & Exploration Companies.
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David was a director and Chairman of CIBC Australia Limited. David has been a prospector, former secretary of the Amalgamated Prospectors and Leaseholders Association and private mine owner. In 1984 David founded Mt. Martin Gold Mines NL, which with partner Newmont Australia developed the million ounce New Celebration Gold Mine. In recognition of his service to the community he was awarded the Order of Australia Medal in 2002.
Natalia Streltsova is a PhD qualified chemical engineer with over 25 years experience in the minerals industry, including over 10 years in senior technical and corporate roles with mining majors - WMC, BHP and Vale. Dr Streltsova has considerable international experience covering project development and acquisitions in South America, Africa and the Former Soviet Union. She is currently a Non ‐ Executive Director of Western Areas Limited and Parkway Minerals NL.
Doug Ritchie is a senior resources industry executive with over 35 years experience, including over 28 years working with Rio Tinto. Mr Ritchie has considerable international corporate experience, including in China. He has been a director of various ASX and HKSE listed companies as well as research and commercialisation organisations
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Executive Team
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Paul Wallwork CFO & Co Sec GM Marketing
COO CDO
Paul Wallwork
Eileen Hao
GM China
Mike has over 35 years experience, including over 20 years in the lithium industry and was responsible for developing the spodumene trade between Australia and China. Former positions include GM Marketing of Sons of Gwalia and GM China of Galaxy Resources. He has a degree in Metallurgy and is also currently a director of Frontier Lithium.
Darren is a Mining Engineer with 20 years’ mining and corporate experience.
Extensive experience in managing ASX and TSX listed companies. East African experience incl. development of tantalum mines in Australia and Mozambique and resource drill out and permitting a niobium project in Kenya. .
Jason holds a Bachelor of . Commerce in Accounting and Business Law from Curtin University and is a member of the Institute of Chartered Accountants, and Chartered Secretaries He has over 20 years’ experience in accounting, company administration in Australia and South East Asia across a broad range of industries. Jason has been with Neometals 10 years.
Paul has nearly 30 years of experience in technical sales, international marketing and management roles. Most recently, in the role of Trading Manager at Iluka Resources, Australia’s largest mineral sand producer. In the five-year period from 2008 to 2013 Mr Wallwork held the roles of Marketing Manager and General Manager Marketing at Talison with responsibility for export sales of tantalum, tin and lithium minerals.
Eileen has 22 years experience in industrial minerals. As China Commercial Manager for Imerys, Eileen managed product sales, marketing and business development. Eileen has been a key advisor in the development of several world-class mining and mineral processing projects globally, covering lithium, titanium, vanadium, nickel, cobalt, graphite, rare earths and battery materials. She has technical background on geology, chemistry and material engineering.
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Consultant Team
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Darren Wates
General Counsel
Dr Bryan Smith Clay Gordon Dr Yatendra Sharma Geologist Geologist PM ‐ Lithium
Mike Spratt PM ‐ Titanium
Darren has over 15 years’ experience in corporate and commercial law in Western Australia, having worked in the Perth office of a national law firm and more recently in senior consultancy at a specialist corporate, commercial and resources law firm.
Mr Wates holds a Bachelor of Laws and a Bachelor of Commerce from Murdoch University, and a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australasia.
Bryan has over 45 years’ experience in geology and geochemistry.
He is a member of AusIMM, the Australian Institute of Geoscientists and the Geological Society of Australia.
In 2016, Bryan was awarded the W.R.Browne Medal of the GSA for geological services to Australia..
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Clay obtained a Bachelor . of Applied Science (Geology) and a Master of Science (Mineral Economics) and has more than 25 years’ experience in senior roles (operational, management and corporate).
He is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists..
- Yatendra holds a PhD in Michael is a Metallurgist chemical technology with with over 50 years of over 42 years of experience in mining, experience at top mineral processing, management including engineering and general management construction both in position at Galaxy Australia and overseas. Resources Limited (2009Michael has held senior 2012) etc where he general management successfully managed positions such as construction of then the Managing Director of world’s largest lithium Thailand Smelting and carbonate plant. Yatendra Refining Company and is a member of the Simcoa, GM Operations at Australasian Institute of Robe River Iron Ore, Mining and Metallurgy Operations Director of (MAusIMM) and Royal Minproc and Kaiser Australian Chemical Engineers. Institute (CChem MRACI).
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Operating Structure
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Barrambie Titanium Project
100% Neometals
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Globally Significant Ti Resource
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Resource based on +1,000 RC & Diamond holes to 80m below surface. Drilled to +250 mbs
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- Mineral Resource Estimate
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(JORC2012) on page 56
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Just scratched the surface
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Government Seismic Survey indicates intrusion extends ~4km below surface
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- Mineral Resource Estimate – High Grade Subset
(JORC2012) on page 57
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Globally Significant V Resource
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• Mineral Resource Estimates (JORC2012) for Global and High V subset refer to pages 56 & 58
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Dual Track Evaluations
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Conventional Process
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Geraldton
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Barrambie
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China - Toll
Concentrator
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China – Ti
Slag
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Ti Pigment
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Neomet Process
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Geraldton
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Barrambie
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China - Toll
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China – Ti
Hydrolysate
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Ti Pigment
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Strong EPC & OEM Strategic Alliance
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Why Titanium Hydrolysate?
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Increased Scale of Test work + Increasing Accuracy of Engineering studies = Lowering Opex
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Commercialisation Plan
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Offtake/Partner Selection Process
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- (*) Subject to Board Approval
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Mineral Resource Estimate
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2 or ≥ 0.2% V2 5
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| Classification | Zone | Oxidation | MTonnes | MTonnes | TiO2 (%) |
V2O5 (%) |
Fe2O3 (%) |
||
|---|---|---|---|---|---|---|---|---|---|
| Indicated | Eastern | Strongly Oxidised | 26.4 | 19.68 | 0.50 | 39.6 | |||
| Weakly Oxidised | 10.0 | 21.45 | 0.56 | 48.6 | |||||
| Fresh | 3.2 | 19.14 | 0.47 | 47.1 | |||||
| Sub-total | 39.6 | 20.09 | 0.51 | 42.5 | |||||
| Central | Strongly Oxidised | 112.6 | 6.71 | 0.44 | 27.9 | ||||
| Weakly Oxidised | 28.1 | 7.21 | 0.47 | 32.9 | |||||
| Fresh | 6.8 | 6.47 | 0.40 | 30.5 | |||||
| Sub-total | 147.5 | 6.80 | 0.45 | 29.0 | |||||
| Total | 187.1 | 9.61 | 0.46 | 31.8 | |||||
| Inferred | Eastern | Strongly Oxidised | 6.5 | 15.19 | 0.36 | 33.5 | |||
| Weakly Oxidised | 5.1 | 18.80 | 0.47 | 43.0 | |||||
| Fresh | 8.3 | 19.18 | 0.45 | 42.2 | |||||
| Sub-total | 19.9 | 17.78 | 0.42 | 39.6 | |||||
| Central | Strongly Oxidised | 16.0 | 5.32 | 0.39 | 24.9 | ||||
| Weakly Oxidised | 18.3 | 6.02 | 0.41 | 28.8 | |||||
| Fresh | 38.8 | 5.76 | 0.38 | 27.9 | |||||
| Sub-total | 73.1 | 5.73 | 0.39 | 27.5 | |||||
| Total | 93 | 8.31 | 0.40 | 30.1 | |||||
| Grand Total | 280.1 | 9.18 | 0.44 | 31.3 |
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NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.
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Mineral Resource Estimate subset
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2
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| Classification | Zone | Oxidation | MTonnes | MTonnes | Density (t/m3) |
Density (t/m3) |
TiO2 (%) |
V2O5 (%) |
Fe2O3 (%) |
Al2O3 (%) |
SiO2 (%) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Indicated | Eastern | Oxide | 19.8 | 2.79 | 22.62 | 0.57 | 42.26 | 11.09 | 17.17 | ||||||||
| Transition | 8.9 | 3.50 | 22.66 | 0.60 | 50.26 | 7.55 | 13.49 | ||||||||||
| Fresh | 2.3 | 3.85 | 21.78 | 0.56 | 52.90 | 6.03 | 12.76 | ||||||||||
| Sub-total | 31.1 | 3.03 | 22.57 | 0.58 | 45.36 | 9.69 | 15.78 | ||||||||||
| Central | Oxide | 5.7 | 2.94 | 15.91 | 0.92 | 49.99 | 11.36 | 15.26 | |||||||||
| Transition | 2.2 | 3.53 | 16.14 | 0.90 | 55.46 | 8.70 | 12.47 | ||||||||||
| Fresh | 0.4 | 4.02 | 14.89 | 0.86 | 59.17 | 7.36 | 11.49 | ||||||||||
| Sub-total | 8.2 | 3.12 | 15.92 | 0.91 | 51.89 | 10.46 | 14.34 | ||||||||||
| Total | 39.3 | 3.05 | 21.18 | 0.65 | 46.73 | 9.85 | 15.48 | ||||||||||
| Inferred | Eastern | Oxide | 2.9 | 2.66 | 20.97 | 0.46 | 38.93 | 12.90 | 20.31 | ||||||||
| Transition | 3.6 | 3.26 | 22.01 | 0.56 | 46.60 | 9.02 | 15.55 | ||||||||||
| Fresh | 5.8 | 3.68 | 22.39 | 0.54 | 46.48 | 8.74 | 15.53 | ||||||||||
| Sub-total | 12.3 | 3.26 | 21.95 | 0.53 | 44.73 | 9.81 | 16.67 | ||||||||||
| Central | Oxide | 0.2 | 3.01 | 15.87 | 1.00 | 52.28 | 10.77 | 13.94 | |||||||||
| Transition | 0.6 | 3.43 | 16.84 | 0.89 | 54.04 | 9.39 | 13.07 | ||||||||||
| Fresh | 1.2 | 3.88 | 16.01 | 0.91 | 54.01 | 9.68 | 13.30 | ||||||||||
| Sub-total | 2.0 | 3.63 | 16.24 | 0.92 | 53.86 | 9.72 | 13.30 | ||||||||||
| Total | 14.3 | 3.31 | 21.15 | 0.58 | 46.01 | 9.80 | 16.19 | ||||||||||
| Grand Total | 53.6 | 3.11 | 21.17 | 0.63 | 46.53 | 9.84 | 15.67 |
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NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.
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Mineral Resource Estimate subset
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2 5
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| Classification | Zone | Oxidation | MTonnes | MTonnes | Density (t/m3) |
Density (t/m3) |
TiO2 (%) |
V2O5 (%) |
Fe2O3 (%) |
Al2O3 (%) |
SiO2 (%) |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Indicated | Eastern | Oxide | 11.3 | 2.93 | 24.33 | 0.72 | 46.13 | 9.32 | 13.29 | ||||||||
| Transition | 5.8 | 3.58 | 23.67 | 0.71 | 53.21 | 6.56 | 10.52 | ||||||||||
| Fresh | 1.6 | 3.94 | 22.62 | 0.64 | 56.19 | 5.12 | 10.08 | ||||||||||
| Sub-total | 18.6 | 3.18 | 23.98 | 0.71 | 49.18 | 8.11 | 12.16 | ||||||||||
| Central | Oxide | 22.1 | 2.78 | 12.46 | 0.89 | 46.93 | 13.82 | 18.17 | |||||||||
| Transition | 7.1 | 3.26 | 12.99 | 0.90 | 52.09 | 11.12 | 15.53 | ||||||||||
| Fresh | 1.2 | 3.95 | 13.27 | 0.86 | 56.74 | 8.65 | 13.33 | ||||||||||
| Sub-total | 30.4 | 2.91 | 12.62 | 0.89 | 48.52 | 12.99 | 17.37 | ||||||||||
| Total | 49.0 | 3.01 | 16.93 | 0.82 | 48.77 | 11.13 | 15.39 | ||||||||||
| Inferred | Eastern | Oxide | 1.0 | 2.92 | 24.30 | 0.68 | 46.07 | 9.60 | 13.79 | ||||||||
| Transition | 2.1 | 3.42 | 23.49 | 0.70 | 50.74 | 7.44 | 11.55 | ||||||||||
| Fresh | 3.2 | 3.82 | 24.16 | 0.68 | 51.78 | 6.70 | 10.76 | ||||||||||
| Sub-total | 6.3 | 3.51 | 23.96 | 0.69 | 50.55 | 7.39 | 11.49 | ||||||||||
| Central | Oxide | 2.1 | 2.74 | 11.18 | 0.89 | 46.19 | 14.39 | 18.91 | |||||||||
| Transition | 3.0 | 3.03 | 12.14 | 0.88 | 49.05 | 12.76 | 17.41 | ||||||||||
| Fresh | 4.6 | 3.83 | 12.65 | 0.90 | 52.17 | 11.22 | 15.58 | ||||||||||
| Sub-total | 9.7 | 3.28 | 12.17 | 0.89 | 49.94 | 12.38 | 16.86 | ||||||||||
| Total | 15.9 | 3.37 | 16.81 | 0.81 | 50.17 | 10.42 | 14.75 | ||||||||||
| Grand Total | 64.9 | 3.09 | 16.90 | 0.82 | 49.11 | 10.96 | 15.23 |
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NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.
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Pre-feasibility Study - Financial Metrics ()
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| Life of Mine(LOM) | 19.6years |
|---|---|
| Pre-production Capital cost (excludingEPCM and Contingency) [1 |
A$ 549 million |
| Average Annual Pre-tax Net Cashflow | A$ 123 million |
| Pre-tax Internal Rate of Return | 21% |
| Pre-tax NPV(12% real discount rate) | A$ 355 million |
| Payback of capital costs | 3.9years |
| Average Annual Production | 98,000t TiO2 2,000t V2O5 234,000t Fe2O3 |
| Cash Operating Cost per tonne ofpaid TiO2 net of co-product credit |
US$ 572/t |
(*) Estimated to accuracy of ±25%
Assumptions: US$1,838/t TiO2; US$14,873/t V2O5, US$520/t Fe2O3 Pigment, A$/US$0.75, Royalties (State/Technology) 10% Gross
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Mt Marion Lithium Operation
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Neometals 13.8% throu h Reed Industrial Minerals Pt Ltd g y
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Strong Operating Partner
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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
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Outstanding Offtake Agreement
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China’s largest, most diverse lithium producer - -
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Take or Life-of-Mine, pay Offtake Agreement
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Pricing is a transparent Lithium Carbonate/Lithium Hydroxide linked formula, with floor price protection – US$960/t CIF for JunQ
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Letter of Credit (100% payment on invoice)
-
Neometals Option to take min 12.37% Offtake of production from 2020 onwards.
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Mine Production
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| Mt Marion Project | H2 FY17 | H1 FY18 | |
|---|---|---|---|
| 6% Tonnes exported 4% Tonnes exported Total Tonnes exported (100%) |
000 WMT 000 WMT 000 WMT |
50.0 66.0 116.0 |
109.0 93.0 202.0 |
| Revenue | A$/WMT | 782.9 | 808.9 |
| C1 costs | A$/WMT | 570.9 | 474.9 |
| Total expenses | A$/WMT | 658.0 | 548.4 |
| EBITDA | A$/WMT | 124.9 | 260.5 |
Notes:
-
Costs include arms length mining infrastructure service agreements with MRL
-
RIM went into commercial production on 1 March 2017. The production costs net of sales receipts of 37Kt of spodumene produced pre 1 March 2017 were capitalised in line with accounting standards. Accordingly, unit revenues and costs set out above for 2H FY17 are derived on 79Kt of spodumene produced post commercial production
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*** Information taken from ASX:MIN announcement 16/8/2017.**
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Mineral Resource Estimate
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Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O
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| Classification | Deposit | Tonnes (Mt) | Li~~2~~O % | 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 | Area 1,2,2W | 43.5 | 1.39 | 1.09 |
| Area 4 | 0.8 | 1.07 | 1.09 | |
| Area 5 | 1.0 | 1.32 | 1.71 | |
| Area 6 | 3.5 | 1.33 | 1.07 | |
| Inferred Total | 48.9 | 1.38 | 1.10 | |
| Grand Total | 77.8 | 1.37 | 1.09 |
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NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.
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Mt Edwards Lithium Project
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Neometals 100%
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Mineral Resource Estimate
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Mt Edwards Lithium Project, as at April 2018, for a block cut‐off grade of 1% Ni
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| Classification | Deposit | Tonnes (kt) | Nickel % | Nickel (t) |
|---|---|---|---|---|
| Measured | 132N | |||
| Armstrong | 10 | 2.1 | 210 | |
| Cooke | ||||
| McEwen | ||||
| McEwen Hangingwall | ||||
| Zabel | ||||
| Measured Total | 10 | 2.1 | 210 | |
| Indicated | 132N | 110 | 3.5 | 3,895 |
| Armstrong | 280 | 2.3 | 6,495 | |
| Cooke | ||||
| McEwen | ||||
| McEwen Hangingwall | ||||
| Zabel | ||||
| Indicated Total | 390 | 2.7 | 10,390 | |
| Inferred | 132N | 10 | 1.8 | 175 |
| Armstrong | 30 | 4.9 | 1,475 | |
| Cooke | 150 | 1.3 | 1,950 | |
| McEwen | 1,070 | 1.3 | 13,380 | |
| McEwen Hangingwall | 1,060 | 1.4 | 14,840 | |
| Zabel | 330 | 1.8 | 5,780 | |
| Inferred Total | 2,650 | 1.4 | 37,600 | |
| Grand Total | 3,050 | 1.6 | 48,200 |
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NOTE : Figures may not sum due to rounding. Significant figures do not imply an added level of precision.
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Technology Licensing Neomet Process Neometals - 25% of sub-licencing royalties
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Patented Neomet Process
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– Commodity agnostic developed in Canada for Ni-laterites, in use commercially for treating refractory copper-gold concentrates.
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Neometals Laboratory in Montreal First sublicence issued in SeptQ 17
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Project Development Phasing
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Laboratory scale set up (above) Pilot scale up (below)
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Investment Proposition
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Lithium : Cash, cashflow & growth options
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03
Increasing quality
(and revenue) of
02
production from
Mt Marion
01
C ashflows from
~A$41.8M Cash + 13.8% Mt Marion Downstream
+
plus ~A$16.5M in conversion to
receivables and LiOH.
investments
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Titanium : the big one
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03
02
01
Potential for fast Pilot Plant the
+
track DSO/Toll +
Globally Potentially
significant Ti-V Concentrate for Disruptive
Resource Ti/V Smelting Neomet Process
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Technology : developing a diversified portfolio
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03
02
Successful Secure partners
01
completion of to commercialise
+ -
Pilot Plant for +
Secured Strong Li Battery
-
Partners for Li Battery Recycling
Neomet Process Recycling
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