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INVESTOR PRESENTATION ASX:INR
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June, 2020
PRESENTATION ASX:INR June, 2020 www.ioneer.com 1 This - - PowerPoint PPT Presentation
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 Ltds (ioneer or the Company) assets and
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June, 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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(As at 7 May 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
52m
CASH BALANCE (31/03/20)
A$53m
SHARE PRICE ASX
A$0.12
MARKET CAPITALISATION
A$202m
52 WEEK SHARE PRICE RANGE (CLOSE)
A$0.07 - A$0.27 5
Source: Company Data, FactSet, Ipreo and CapIQ
$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30
7 May 2019 - 7 May 2020
www.ioneer.com 6 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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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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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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1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 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
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Source: Benchmark Mineral Intelligence 2020
Rhyolite Ridge Begins Production
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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 11 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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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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The DFS base case lithium carbonate equivalent (LCE) prices averaged ~US$13,000/tonne and boric acid prices averaged US$710/tonne. All annual figures are on an average year basis over 25.24 years
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Source: Roskill for all producing lithium brine and mineral operations shown on this cost curve, except for ioneer estimate sourced from the Rhyolite Ridge
(Cost includes Conversion Cost to Li2CO3, Royalties, Freight CFR China, Assumes spot FX for RMB, AUD, ARS, CLP)
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2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 50 100 150 200 250 300 350 400
US$ LCE 1,000 Metric Tonnes
2019 LCE Cost Curve (US$/metric tonne) Global Producers
ioneer Brine Mineral
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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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ioneer market study conducted as part of DFS. Source: Bloomberg
31.5% 28.1% 24.9% 20.0% 15.9% 14.6% 14.5% 12.8% 7.6%
Met Coal Oil Natural Gas Nickel Lithium¹ Copper Zinc Aluminum Boron
Historical Price Volatility | 5 Years
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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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Ore Handling/ Sizing and Storage Reagents Boric Acid Circuit Sulphur Supply Plant Utilities Power Plant Sulphuric Acid Plant Lithium Carbonate Circuit Vat Leach Plant Evaporation/ Crystallization Lithium Hydroxide Circuit (Year Four)
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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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Engineering Services (EES) begin
submissions for project
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.
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$35 $16 $17 $28 $33 $18 $10 $17 $12 $599 $695 $785 575 600 625 650 675 700 725 750 775 800 Millions US$
PFS Estimate Power Generation Impurity Removal 1 Mine Equipment & Sulphur Trailers Sales Tax & Commissioning DFS Estimate + New Scope EVP/CRZ Pkg Increase VAT & Tank Lining Spent Ore Storage Facility Freight, etc. Growth DFS Final Estimate NEW SCOPE GROWTH
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1 See Company announcement titled “Outstanding Results from Rhyolite Ridge Pre-Feasibility” dated 23 October 2018, for further information.
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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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first production from Rhyolite Ridge
Roskill: Annual price forecast for BG Lithium Hydroxide
Source: Roskill Lithium outlook to 2028
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