PRESENTATION Rhyolite Ridge Definitive Feasibility Study - - PowerPoint PPT Presentation

presentation
SMART_READER_LITE
LIVE PREVIEW

PRESENTATION Rhyolite Ridge Definitive Feasibility Study - - PowerPoint PPT Presentation

INVESTOR PRESENTATION Rhyolite Ridge Definitive Feasibility Study Announcement ASX:INR April, 2020 www.ioneer.com 1 This presentation has been prepared as a summary only and does not contain all information Competent Persons Statement about


slide-1
SLIDE 1

www.ioneer.com

INVESTOR PRESENTATION Rhyolite Ridge Definitive Feasibility Study Announcement ASX:INR

1

April, 2020

slide-2
SLIDE 2

www.ioneer.com 2

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

  • securities. The securities issued by ioneer are considered speculative and there is no guarantee

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

  • bjectives, 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 investment for them in light of their personal circumstances, including their financial and taxation

  • position. Investors should make and rely upon their own enquiries before deciding to acquire or

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

  • ffer to buy or sell ioneer securities in any jurisdiction, or be treated or relied upon as a

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 * 0.88 Note All $’s in this presentation are US$’s except where otherwise noted.

slide-3
SLIDE 3

www.ioneer.com 3

James D. Calaway

Non–Executive Chairman

Bernard Rowe

Managing Director

slide-4
SLIDE 4

www.ioneer.com 4

COMPELLING PROJECT ECONOMICS CONFIRMED BY COMPREHENSIVE DFS WELL-DEFINED AND RELIABLE OPERATING COST ALL-IN SUSTAINED CASH COST AT THE BOTTOM OF THE GLOBAL COST CURVE 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

slide-5
SLIDE 5

www.ioneer.com

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

5

Annual Revenue

US$422M US$422M

Annual EBITDA

US$288M US$288M

Annual After-tax Cashflow

US$193M US$193M

After-tax NPV (8% real): ~US$1.27B

US$1.27B

Unlevered After Tax IRR ~21%

21%

Estimated Capex

US$785M US$785M

slide-6
SLIDE 6

www.ioneer.com

Source: Roskill for all producing lithium brine and mineral operations shown on this cost curve, except for ioneer estimate sourced from the Rhyolite Ridge

  • DFS. Costs as shown are all-in sustaining costs. The Rhyolite Ridge all-in sustaining costs were based on the same methodology as the Roskill cost estimates.

(Cost includes Conversion Cost to Li2CO3, Royalties, Freight CFR China, Assumes spot FX for RMB, AUD, ARS, CLP)

6

  • 1,000

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)

ioneer Brine Mineral

slide-7
SLIDE 7

www.ioneer.com 7

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

slide-8
SLIDE 8

www.ioneer.com 8

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

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

slide-9
SLIDE 9

www.ioneer.com 9

Annual Mining:

2.53M 2.53M

Tonnes

Annual Lithium Hydroxide:

22,000 22,000

Tonnes Years 4-26

Annual Boric Acid:

174,4 174,400 00

Tonnes Years 1-26

Annual Lithium Carbonate Equivalent:

32,000 32,000

Tonnes Years 1-26

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

slide-10
SLIDE 10

www.ioneer.com 10

Rendered Engineering Model

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)

slide-11
SLIDE 11

www.ioneer.com 11

Long Life of Mine:

63.8M 63.8M

Ore Mined Over 26

26 Years

Large Ore Reserve1:

60.0M 60.0M

Tonnes Large Mineral Resource1:

146.5M 146.5M

Tonnes

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

slide-12
SLIDE 12

www.ioneer.com 12

slide-13
SLIDE 13

www.ioneer.com 13

$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

slide-14
SLIDE 14

www.ioneer.com 14

1 See Company announcement titled “Outstanding Results from Rhyolite Ridge Pre-Feasibility” dated 23 October 2018, for further information.

Total Annual Improvement:

US$30M US$30M

To the Bottom Line

Operating Cost Per Tonne Decreased:

US$8 US$8

Annual Savings Approximately:

US$20M US$20M

Lithium Carbonate Recovery Increased From:

82% 82%-85% 85%

Savings Approximately:

US$10M US$10M

slide-15
SLIDE 15

www.ioneer.com All dates and times are indicative and subject to change. 15

  • Complete DFS
  • Execution

Engineering Services (EES) begin

  • Finalize permitting

submissions for project

  • Complete

financing plan

  • Award long lead

items

  • Major contracts in

negotiation

  • Complete

financing

  • Full notice to

proceed

  • Site mobilization
  • Release

equipment fabrication

  • Engineering

Complete

  • Begin concrete

construction

  • Steel and tank

erection begin

Q2 2020 Q3 2020 Q2 2021 Q3 2021 Q2 2023

  • Mechanical

completion

  • Commission

plant

  • Permanent

power available

  • First product

shipment

Near-Term Timeline

slide-16
SLIDE 16

www.ioneer.com 16

slide-17
SLIDE 17

www.ioneer.com 17

Low emissions Low water usage Small mine footprint Energy-efficient equipment Commitment to sustainability

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.

slide-18
SLIDE 18

www.ioneer.com

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

18

Source: Benchmark Mineral Intelligence 2020

Rhyolite Ridge Begins Production

slide-19
SLIDE 19

www.ioneer.com 19

Ample funding in place through at least 2021, ensuring Project timeline DFS completion allows informed acceleration of strategic funding process Strong financial position and completion of DFS enables ioneer to manage through the global COVID-19 environment ioneer remains committed to achieving fair valuation for the Project which will maximize value to shareholders

slide-20
SLIDE 20

www.ioneer.com 20 20

slide-21
SLIDE 21

www.ioneer.com 21

Bernard Rowe ioneer Ltd Jane Munday / Megan Moore FTI Consulting Grace Altman FTI Consulting

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