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 Ltd’s (ioneer or the Company) assets and liabilities, financial position and In respect of Mineral Resources and Ore Reserves referred to in this presentation and previously performance, profits and losses, prospects, and the rights and liabilities attaching to ioneer’s reported by the Company in accordance with JORC Code 2012, the Company confirms that it is not securities. The securities issued by ioneer are considered speculative and there is no guarantee aware of any new information or data that materially affects the information included in the that they will make a return on the capital invested, that dividends will be paid on the shares or public report titled “Rhyolite Ridge Ore Reserve Increased 280% to 60 million tonnes” dated 30 that there will be an increase in the value of the shares in the future. 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. ioneer does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this presentation. Recipients of this presentation should carefully consider whether the securities issued by ioneer are an appropriate In respect of production targets referred to in this presentation, the Company confirms that it is investment for them in light of their personal circumstances, including their financial and taxation not aware of any new information or data that materially affects the information included in the position. Investors should make and rely upon their own enquiries before deciding to acquire or public report titled “ioneer Delivers Definitive Feasibility that Confirms Rhyolite Ridge as a World - deal in the Company's securities. 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 Forward Looking Statements changed. 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 No offer of securities unknown risks, uncertainties and other important factors (many of which are beyond the Nothing in this presentation should be construed as either an offer to sell or a solicitation of an Company’s control) that could cause those future acts, events and circumstances to differ offer to buy or sell ioneer securities in any jurisdiction or be treated or relied upon as a materially from what is presented or implicitly portrayed in this presentation. recommendation or advice by ioneer. For example, future reserves described in this presentation may be based, in part, on market Reliance on third party information prices that may vary significantly from current levels. These variations may materially affect the The views expressed in this presentation contain information that has been derived from publicly timing or feasibility of particular developments. 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 Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, not be relied upon as a recommendation or forecast by ioneer. “potential” and similar expressions are intended to identify forward -looking statements. Lithium Carbonate Equivalent ioneer cautions security holders and prospective security holders to not place undue reliance on The formula used for the Lithium Carbonate Equivalent (LCE) values quoted in this presentation is: these forward-looking statements, which reflect the view of ioneer only as of the date of this LCE = (lithium carbonate tonnes produced + lithium hydroxide tonnes produced * 0.880 presentation. Note 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 All $’s in this presentation are US$’s except where otherwise noted. 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. www.ioneer.com 2
WORLD CLASS LITHIUM-BORON PROJECT CONFIRMED BY COMPREHENSIVE DFS ALL-IN SUSTAINED CASH COST AT THE BOTTOM OF THE LITHIUM COST CURVE WELL-DEFINED AND RELIABLE OPERATING COST LONG-LIFE RESOURCE WITH VERIFIED EXPANSION POTENTIAL U.S. ADVANTAGE AND LOW-RISK, MINING-FRIENDLY LOCATION IN NEVADA CLEAR PATH TO COMPLETION WITH THOROUGHLY VETTED CAPITAL ESTIMATES SUSTAINABLE PROJECT www.ioneer.com 3
JAMES D. CALAWAY BERNARD ROWE JULIAN BABARCZY Non-executive Managing Director Non-executive Director Chairman FORMER: IONEER: FORMER: Non-exec chairman of Managing Director Head of Australian Orocobre Ltd since August 2007 Equities, Regal Funds Management JOHN HOFMEISTER ALAN DAVIES PATRICK ELLIOTT Non-executive Director Non-executive Director Non-executive Director FORMER: FORMER: FORMER: President of Shell Oil Chief Executive, Executive Chair of Company (U.S.A.) Energy & Minerals of Variscan Mines Limited Rio Tinto www.ioneer.com 4
BERNARD ROWE IAN BUCKNELL KEN COON YOSHIO NAGAI MATT WEAVER Managing Director CFO & Company VP Human Resources VP Commercial Sales & Snr VP Engineering & Secretary Marketing Operations RESPONSIBILITIES: RESPONSIBILITIES: RESPONSIBILITIES: RESPONSIBILITIES: Finance HR Lithium & Boron Sales Engineering IT Branding and licensing Operations Govt Relations Company Secretarial Sales logistics US Office KEY TEAM: KEY TEAM: KEY TEAM: KEY TEAM: Chad Yeftich Tyson Falk Michael Le Page Tamar Atiba John Czukiewski Paul Fink Rebecca Sawyer Kevin Yu Peter Ehren Jane Foo Michael Osborne John Reynolds Kiedock Kim Bill McCarthy www.ioneer.com 5
Capital Structure Share price (As at 1 July 2020) 1 July 2019 - 1 July 2020 $0.30 SHARES OUTSTANDING 1.68B $0.25 $0.20 PERFORMANCE RIGHTS AND 50m OPTIONS OUTSTANDING $0.15 $0.10 CASH BALANCE (31/03/20) A$53m $0.05 $- 1-Jul-19 1-Sep-19 1-Nov-19 1-Jan-20 1-Mar-20 1-May-20 1-Jul-20 SHARE PRICE ASX A$0.125 Shareholders Insider Ownership 7.21% MARKET CAPITALISATION A$210m Top 20 Ownership 52.6% 52 WEEK SHARE PRICE RANGE 9.2% Centaurus A$0.07 - A$0.27 (CLOSE) Institutional holders 25.16% Source: Company Data, FactSet, Ipreo and CapIQ www.ioneer.com 6
After-tax NPV Unlevered After Annual After-tax (8% real): Tax IRR Cashflow ~ US$1.27B US$1.27B ~ 21% 21% US$193M US$193M Annual Revenue Estimated Capex Annual EBITDA US$422M US$422M US$785M US$785M US$288M US$288M The DFS base case lithium carbonate equivalent (LCE) prices averaged ~US$13,000/tonne and boric acid prices averaged US$710/tonne. www.ioneer.com All annual figures are on an average year basis over 25.24 years 7
Annual Boric Acid: Annual Lithium Hydroxide: 174,4 174,400 00 22,000 22,000 Tonnes Tonnes Years 4-26 Years 1-26 Annual Lithium Carbonate Annual Mining: Equivalent: 2.53M 2.53M 32,000 32,000 Tonnes Tonnes Years 1-26 Figures are in metric tonnes Figures calculated over average LOM www.ioneer.com 8 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 $13,200/tonne
Large Mineral Large Ore Initial Mine Mine Life Resource 1 : Reserve 1 : Extension: life: 146.5Mt 146.5Mt 60.0Mt 60.0Mt 26 Years 26 82.7Mt 82.7Mt Remaining Resource 2 Ore Mined 63.8Mt 63.8Mt + Extension to Resource 1 For Mineral Resources and Ore Reserve referred to in this presentation, see Company announcement titled “Rhyolite Ridge Ore R eserve Increased 280% to www.ioneer.com 9 60 million tonnes ” dated 30 April 2020, for further information. Mineral Resource estimates include Ore Reserves. 2 Mineral Resource of 146.5Mt less Ore Mined 63.8Mt equals the remaining Mineral Resource post the initial mine
Total Revenue in US$/tonne LCE $23,135 $18,659 $14,173 Margin $9,924 Margin $8,735 $8,961 $8,861 ALL IN SUSTAINING CASH COST US$2,510 Assumed Lithium Price of $15,000/t Assumed Lithium Price of $11,000/t Product Cost $/t LCE (ex Co-Product) LCE Revenue Boric Acid Revenue Product Cost $/t LCE (ex Co-Product) • The columns in blue represent total revenue produced from 1 tonne of LCE and ~9 tonnes of boric acid • The column in green represents the total cost to produce 1 tonne of LCE and ~9 tonnes of boric acid www.ioneer.com LCE revenue is higher than the assumed lithium price due to conversion of LiOH to LCE by approximately 10% 10 The additional cost variance is due to state tax differentials at different lithium revenue levels
Recommend
More recommend
