www.ioneer.com
INVESTOR PRESENTATION ASX:INR Virtual non deal US road show
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July, 2020
ASX:INR Virtual non deal US road show July, 2020 www.ioneer.com 1 - - PowerPoint PPT Presentation
INVESTOR PRESENTATION ASX:INR Virtual non deal US road show July, 2020 www.ioneer.com 1 This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about ioneer Ltds (ioneer or
www.ioneer.com
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July, 2020
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This presentation has been prepared as a summary only and does not contain all information about ioneer Ltd’s (ioneer or the Company) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to ioneer’s
that they will make a return on the capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future. ioneer does not purport to give financial or investment advice. No account has been taken of the
presentation should carefully consider whether the securities issued by ioneer are an appropriate investment for them in light of their personal circumstances, including their financial and taxation
deal in the Company's securities. Forward Looking Statements Various statements in this presentation constitute statements relating to intentions, future acts and events which are generally classified as “forward looking statements”. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are beyond the Company’s control) that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this presentation. For example, future reserves described in this presentation may be based, in part, on market prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. ioneer cautions security holders and prospective security holders to not place undue reliance on these forward-looking statements, which reflect the view of ioneer only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Except as required by applicable regulations or by law, ioneer does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Competent Persons Statement In respect of Mineral Resources and Ore Reserves referred to in this presentation and previously reported by the Company in accordance with JORC Code 2012, the Company confirms that it is not aware of any new information or data that materially affects the information included in the public report titled “Rhyolite Ridge Ore Reserve Increased 280% to 60 million tonnes” dated 30 April 2020 and released on ASX. Further information regarding the Mineral Resource estimate can be found in that report. All material assumptions and technical parameters underpinning the estimates in the report continue to apply and have not materially changed. In respect of production targets referred to in this presentation, the Company confirms that it is not aware of any new information or data that materially affects the information included in the public report titled “ioneer Delivers Definitive Feasibility that Confirms Rhyolite Ridge as a World- Class Lithium and Boron Project” dated 30 April 2020. Further information regarding the production estimates can be found in that report. All material assumptions and technical parameters underpinning the estimates in the report continue to apply and have not materially changed. No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an
recommendation or advice by ioneer. Reliance on third party information The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by ioneer. Lithium Carbonate Equivalent The formula used for the Lithium Carbonate Equivalent (LCE) values quoted in this presentation is: LCE = (lithium carbonate tonnes produced + lithium hydroxide tonnes produced * 0.880 Note All $’s in this presentation are US$’s except where otherwise noted.
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ALAN DAVIES
Non-executive Director
FORMER: Chief Executive, Energy & Minerals of Rio Tinto PATRICK ELLIOTT
Non-executive Director
FORMER: Executive Chair of Variscan Mines Limited BERNARD ROWE
Managing Director
IONEER: Managing Director since August 2007 JOHN HOFMEISTER
Non-executive Director
FORMER: President of Shell Oil Company (U.S.A.) JAMES D. CALAWAY
Non-executive Chairman
FORMER: Non-exec chairman of Orocobre Ltd JULIAN BABARCZY
Non-executive Director
FORMER: Head of Australian Equities, Regal Funds Management
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BERNARD ROWE
Managing Director
IAN BUCKNELL
CFO & Company Secretary
RESPONSIBILITIES: Finance IT Company Secretarial KEY TEAM: Chad Yeftich John Czukiewski KEN COON
VP Human Resources
RESPONSIBILITIES: HR Govt Relations KEY TEAM: Tyson Falk MATT WEAVER
Snr VP Engineering & Operations
RESPONSIBILITIES: Engineering Operations US Office KEY TEAM: Tamar Atiba Rebecca Sawyer Peter Ehren Michael Osborne John Reynolds Kiedock Kim Bill McCarthy YOSHIO NAGAI
VP Commercial Sales & Marketing
RESPONSIBILITIES: Lithium & Boron Sales Branding and licensing Sales logistics KEY TEAM: Michael Le Page Paul Fink Kevin Yu Jane Foo
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(As at 1 July 2020)
Share price Shareholders
Insider Ownership 7.21% Top 20 Ownership 52.6% Centaurus 9.2% Institutional holders 25.16%
SHARES OUTSTANDING
1.68B
PERFORMANCE RIGHTS AND OPTIONS OUTSTANDING
50m
CASH BALANCE (31/03/20)
A$53m
SHARE PRICE ASX
A$0.125
MARKET CAPITALISATION
A$210m
52 WEEK SHARE PRICE RANGE (CLOSE)
A$0.07 - A$0.27 6
Source: Company Data, FactSet, Ipreo and CapIQ
$- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 1-Jul-19 1-Sep-19 1-Nov-19 1-Jan-20 1-Mar-20 1-May-20 1-Jul-20
1 July 2019 - 1 July 2020
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The DFS base case lithium carbonate equivalent (LCE) prices averaged ~US$13,000/tonne and boric acid prices averaged US$710/tonne. All annual figures are on an average year basis over 25.24 years
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Figures are in metric tonnes Figures calculated over average LOM Lithium Hydroxide production replaces Lithium Carbonate after year 4 Total LCE of 32,000 tpa is based on annual LOM Revenue of $422 million divided by LCE realised price of $13,200/tonne
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1 For Mineral Resources and Ore Reserve referred to in this presentation, see Company announcement titled “Rhyolite Ridge Ore Reserve Increased 280% to
60 million tonnes” dated 30 April 2020, for further information. Mineral Resource estimates include Ore Reserves.
2 Mineral Resource of 146.5Mt less Ore Mined 63.8Mt equals the remaining Mineral Resource post the initial mine
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LCE revenue is higher than the assumed lithium price due to conversion of LiOH to LCE by approximately 10% The additional cost variance is due to state tax differentials at different lithium revenue levels
$8,961 $8,735
Total Revenue in US$/tonne LCE
LCE Revenue Boric Acid Revenue Product Cost $/t LCE (ex Co-Product)
$23,135 $18,659 $9,924 Margin $14,173 Margin
Assumed Lithium Price of $15,000/t Assumed Lithium Price of $11,000/t Product Cost $/t LCE (ex Co-Product)
$8,861 ALL IN SUSTAINING CASH COST US$2,510
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Source: Roskill for all producing lithium brine and mineral operations shown on this cost curve, except for ioneer estimate sourced from the Rhyolite Ridge
(Cost includes Conversion Cost to Li2CO3, Royalties, Freight CFR China, Assumes spot FX for RMB, AUD, ARS, CLP)
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2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 50 100 150 200 250 300 350 400
US$ LCE 1,000 Metric Tonnes
2019 LCE Cost Curve (US$/metric tonne) Global Producers
ioneer Brine Mineral
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Vendor Financing Debt Partner with Direct Investment in Project Additional Strategic Partners Interested Multiple “Large” Global Strategic Partners
Equity Financing
Equity
Rhyolite Ridge Funding Stack
Vendor Financing Debt Additional Tier 1 Strategic Partners Strategic Partner with Direct investment in Project Interested Strategic Partners PFS DFS Future Rhyolite Ridge Funding Complete
Note: the size of the boxes and timescale are illustrative only and should not be relied upon as an indicator of the final composition of the capital stack.
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complete
discussions
timing for formal partnering process
meetings
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✓ Complete DFS ✓ Execution Engineering Services (EES) begin ✓ Submit project permits
financing plan
items
negotiation
financing
proceed
equipment fabrication
Complete
construction
erection begin
completion
plant
power available
shipment
Note: All dates and times are indicative and subject to change.
www.ioneer.com 16 Note: Chart inputs are ioneer estimates derived from industry research.
LITHIUM
vehicle fleet
BORON
sustainability
permanent magnets for EVs and wind turbines
Lithium demand to grow at >20% CAGR to 2028 Boron demand to grow at ~4% CAGR to 2028
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US demand:
in the pipeline to 2024, three are already
estimates that by 2024, these megafactories will be producing 125GWh of cells requiring ~107,000 tonnes of lithium chemicals (LCE)
LG CHEM/GM LORDSTOWN Ohio 10GWh LG CHEM Michigan 15GWh IM3 New York 15GWh With the addition of the LG Chem-GM Megafactory in Ohio, the USA now has 7 battery megafactories in the pipeline across 6 different states. Farasis Energy is yet to confirm the location of its US megafactory
TESLA, GIGAFATORY 1 Nevada 60GWh AESC Tennessee 5GWh SKI, COMMERCE Georgia 10GWh Farasis, TBC 10GWh
Source: Benchmark Minerals Intelligence
www.ioneer.com 18 Stage One: Mining Nickel 8% 0% 31% Cobalt 0% 0% 1% Graphite* 1% 0% 65% Lithium 0% 1% 0% Manganese 0% 0% 0% Stage Two: Chemical Processing / Refining Nickel 13% 1% 65% Cobalt 17% 0% 82% Graphite* 0% 0% 100% Lithium 0% 4% 59% Manganese 7% 0% 93% Stage Three: Cathode or Anode Production Cathode 8% 0% 61% Anode* 0% 0% 83% Stage Four: Lithium ion battery cell manufacturing Cells 6% 10% 73%
Source: Benchmark Minerals Intelligence *Flake Graphite Feedstock, All Anode Nature & Synthetic
Mining Chemical Processing Global share of production (%) in 2019 Cathode Production Cell Manufacturing Application
U.S Lithium consumption from EV’s set to increase ~8.2x over five years
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Source: UBS Research – Global Electric Vehicle Battery Makers 17 June 2020 Note: BEV is short for Battery Electric Vehicle, PHEV is short for Plug-In Hybrid Electric Vehicle
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EVs more expensive to own and purchase EVs less expensive to own, more expensive to purchase Total cost of ownership parity EVs less expensive to own and purchase Purchase price parity
Early Adoption Environmental and social reasons spur slow but steady adoption Rational Switching Lower fuel and maintenance costs help justify higher purchase price, accelerating adoption by commercial users in particular Budget Switching Lower purchase price encourages mass adoption by budget- conscious individuals
Comparison to internal combustion vehicles
Rhyolite Ridge Begins Production
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reliance on single sector
drivers of demand
specialty glass and permanent magnets
(2.1Mtpa of boric oxide - B2O3)
(0.7Mtpa of boric oxide - B2O3)
market
reliable supply
8% 5% 11% 12% 12% 16% 17% 19%
Other Textile Fiber Glass Industrial / Chemical LCD / TFT Borosilicate Glass Insulation Agriculture
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Frits / Ceramics Notes: Borates demand includes refined chemicals (~80% of demand) such as boric acid and raw mineral products (~20% of demand). Chart inputs are ioneer estimates derived from industry research.
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that sets the project apart
with a long history of mining
Project for entrance into major U.S. and Asian end markets
located ~200 miles away
42,000 tonnes of LCE
from the current announced production
meet the current plans of U.S auto OEM’s by 2025.
Source: Benchmark Minerals Intelligence
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Zero C02 power co-generated at site, low greenhouse gas emissions. Project design implements best-in-class water utilization while recycling the majority of water usage. No evaporation ponds or tailings dams. Low Greenhouse Gas emissions: 0.19 tons CO2e per ton Li2Co3 produced. All baseline studies (14) for EIS completed over 2 years. Funding 5-year growth study at University of Nevada (UNR) for the successful propagation of Tiehm’s buckwheat.
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Managing Director Investor & Media Relations (Australia) Investor & Media Relations (USA) T: +61 419 447 280 T: +61 488 400 248 / + 61 434 225 643 T: +1 917 208 9352 E: browe@ioneer.com E: jane.munday@fticonsulting.com / megan.moore@fticonsulting.com E: grace.altman@fticonsulting.com
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Rhyolite Ridge Analysis Typical Industry Specifications Lithium Hydroxide wt% 56.5 56.5 Sodium ppm 28 ≤ 30 Potassium ppm 12 ≤ 200 Iron ppm <1 ≤ 7 Boron ppm <1 ≤ 3 Calcium ppm <10 ≤ 250 Sulphate ppm <30 ≤ 300 Chlorine ppm <100 ≤ 100 Magnesium ppm <5 ≤ 5 Silica ppm 14 ≤ 20 Carbon Dioxide wt% 0.10 ≤ 0.35
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Compound or Element Units Rhyolite Ridge Boric Acid Typical Industry Specifications Boric Oxide (B2O3) % >56.5 >56.25 Boric Acid (H3BO3) % >99.9 >99.9 Sulphate ppm <125 <250 Chloride ppm <1 <10 Iron ppm <5 <7 Calcium ppm 13 <50 Sodium ppm 43 <200 Chlorine ppm <5 <10 Lead ppm <10 <20 Arsenic ppm <10 <100 D50 particle size microns 550
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first production from Rhyolite Ridge
Roskill: Annual price forecast for BG Lithium Hydroxide
Source: Roskill Lithium outlook to 2028
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Source: For further information on Resources and Reserves see ASX release titled Rhyolite Ridge Ore Reserve Increased 280% to 60 million tonnes dated 30 April 2020. Note, totals may differ due to rounding. Mineral Resources include Ore Reserves.