INVESTOR PRESENTATION ASX:INR June, 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
COMPELLING PROJECT ECONOMICS CONFIRMED BY COMPREHENSIVE DFS ALL-IN SUSTAINED CASH COST AT THE BOTTOM OF THE GLOBAL 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
Capital Structure Share price (As at 7 May 2020) 7 May 2019 - 7 May 2020 SHARES OUTSTANDING 1.68B $0.30 $0.25 PERFORMANCE RIGHTS AND $0.20 52m OPTIONS OUTSTANDING $0.15 $0.10 CASH BALANCE (31/03/20) A$53m $0.05 $0.00 SHARE PRICE ASX A$0.12 Shareholders Insider Ownership 7.21% MARKET CAPITALISATION A$202m 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 5
Lithium demand to grow at >20% CAGR to 2028 Boron demand to grow at ~4% CAGR to 2028 BORON LITHIUM • Essential to all types of EV batteries • Important material for clean technologies and • Conversion of green energy to base load power sustainability • Over 300 applications including advanced glass, • Strong demand growth predicted to beyond 2040 • Listed as a critical material by US Government permanent magnets for EVs and wind turbines • Very limited production in US – world’s 2 nd largest • Stable pricing and demand growth • Produced in only a few locations globally vehicle fleet www.ioneer.com 6 Note: Chart inputs are ioneer estimates derived from industry research.
Global Borates Demand by End Use • Broad range of essential uses mitigates reliance on single sector Other • USA and China housing markets important drivers of demand Borosilicate LCD / TFT • Increasing demand from agriculture, solar, Glass 8% specialty glass and permanent magnets 19% 5% • Total global market $2.3B per annum (2018) 11% • 4.5Mtpa of boron products (borates) Industrial / Chemical (2.1Mtpa of boric oxide - B 2 O 3 ) • Including 1.2Mtpa boric acid worth $0.7B 17% (0.7Mtpa of boric oxide - B 2 O 3 ) 12% Insulation • Duopoly: o Eti (Turkey) ~50% of refined borate market Agriculture 12% 16% o Rio (California) ~30% of refined borate market • Customers value consistent quality and reliable supply Textile Fiber Glass Frits / Ceramics • 72% of worlds known Reserves are in Turkey Notes: Borates demand includes refined chemicals (~80% of demand) such as boric acid and raw mineral products (~20% of demand). Chart inputs are ioneer www.ioneer.com estimates derived from industry research. 7 7
• Lithium-ion battery cost reduction is an important catalyst for mass adoption of EVs • Lithium pricing required at levels to incentivise rapid growth of lithium supply from 2023 • Consistent lithium specifications increasingly important for battery cathodes • Automakers moving to ensure lithium supply Rational Switching Budget Switching Early Adoption Lower fuel and Lower purchase price Environmental and social maintenance costs help encourages mass reasons spur slow but justify higher purchase adoption by budget- steady adoption price, accelerating conscious individuals adoption by commercial users in particular Rhyolite Ridge Begins Production Comparison to EVs less expensive to own, more EVs less expensive to own EVs more expensive to own expensive to purchase and purchase internal combustion and purchase Total cost of ownership parity Purchase price parity vehicles www.ioneer.com 8 8
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 Rhyolite Ridge Begins Production 1,000,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total Demand Total Supply Source: Benchmark Mineral Intelligence 2020 www.ioneer.com 9
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