Presentation to Lithuim Supply & Markets Conference 2014
-
Upload
reed-resources-ltd -
Category
Documents
-
view
212 -
download
0
description
Transcript of Presentation to Lithuim Supply & Markets Conference 2014
-
1 www.reedresources.com
LSM 2014 Presentation
Chris Reed, Managing Director
-
2 www.reedresources.com
Summary information: This document has been prepared by Reed Resources Ltd (Reed or the Company) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and does not purport to be complete. It should be read in conjunction with Reeds other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. Forward-looking information: This document includes certain statements, opinions, projections, forecasts and other forward-looking information which, while considered reasonable by Reed, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results included in this document. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance they must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document, recipients agree that if they proceed further with their investigations, consideration or evaluation of the opportunity to invest in the Company, they will make and rely solely upon their own investigations and enquiries and will not in any way rely upon this document. Any statements, opinions, projections, forecasts and other forward-looking information contained in this document do not constitute any commitments, representations or warranties by Reed and its associated entities, directors, agents and employees, including any undertaking to update any such information. Except as required by law, and only to the extent so required, directors, agents and employees of Reed shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this document. Financial data: All figures in this document are in Australian dollars (AUD) unless stated otherwise. Not financial product advice: This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Reed. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.
Investment risk: An investment in securities in Reed is subject to investment and other known and unknown risks, some of which are beyond the control of Reed. The Company does not guarantee any particular rate of return or the performance of Reed. Investors should have regard to the risk factors outlined in this document.
Competent Persons Statement: The information in this document that relates to Barrambie Scoping Study Results, Mt Marion test work results, Barrambie Mineral Resource Estimates and Mt Marion Mineral Resource Estimates is extracted from ASX Releases set out below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Releases set out below, and in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in those ASX Releases continue to apply and have not materially changed. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target in the Barrambie Scoping Study continue to apply and have not materially changed.
Disclaimer
-
3 www.reedresources.com
Company Strategy
01 02 03
Focus on advanced mineral assets
Demonstrate low-cost competitive advantage
Co-venture with strong partners to reduce operating and financial risk
-
4 www.reedresources.com
Mount Marion Lithium Project RDR 70%, MIN 30% (Fund and operate)
-
5 www.reedresources.com
Flythrough
-
6 www.reedresources.com
Captive Resource Strategic Location Mine Ready
-
7 www.reedresources.com
Development strategy: de-risk with strong partners
+ =RDR70%
RDR X%
Target 30-40% Low upfront
capital
Mine Spodumene with Mineral
Resources as operators
Value add into Lithium Battery
Materials
Integrated lithium producer
-
8 www.reedresources.com
Strong Partner for upstream
Construct processing plant on Build-Own-Operate (BOO) basis, no upfront cost to Reed
Whole of mine lifecycle services
Fund sunk costs to Final Investment Decision (FID) and operate project from mine-to-port
Mineral Resources Ltd are an ASX100 Listed Company worth +A$2 Billion (ASX: MIN)
-
9 www.reedresources.com
Scaling Up a New feed for a Mature Technology
Proof of concept Semi-pilot in progress
RIM Process Chlor Alkali Conventional process produces NaOH Our new process produces Li OH
H2O
Na Cl
+
POWER
Na Cl
Na OH
H2
Cl2
Li20 +
POWER
Li Cl
Li OH
H2
Cl2
H Cl
-
10 www.reedresources.com
RIM Process Membrane Electrolysis
Ion Exchange
Lithium Chloride Solution
Primary Impurity Removal
Secondary impurity Removal
Ion Exchange
Lithium Hydroxide Solution
Remove Fe, Al, Si
Remove Ca, Mg
Remove trace impurities to
-
11 www.reedresources.com
Chlor-alkali Cell
-
12 www.reedresources.com
Proof of Concept Results
Items FMC RIM Results LiOH.H2O % Min 56.5 57 Fe ppm 5 3 Na ppm 20 8 K ppm 10 3 Cl ppm 20 15 Ca ppm 15 9 Al ppm 10 1 Ni ppm 10 10 Si ppm 30
-
13 www.reedresources.com
Competitors
Input Price US$5,000/t
x 1
Cost US$5,700/t
Input Price US$350/t
x 7.5
Cost US$3,900/t
Sources: SQM (Brine Flowsheet) and Reed internal analysis including 2012 Pre-feasibility Study. All prices are FOB Basis.
Lithium Brine
Lithium Carbonate Technical Grade
Lithium Carbonate Battery Grade
Final Product LiOH Battery Grade
Spodumene Chlorination Purification Electrolysis
Final Product LiOH (BG)
Flowsheet process Operating cost advantage
-
14 www.reedresources.com
Pre-feasibility Study Results
All analysis is in US dollars and assumes a selling price of US$ 6,900/t for battery-grade lithium hydroxide and lithium carbonate, a spodumene input cost of US$ 350/t CIF, an AUD exchange rate of US$1.05 and a MYR exchange rate of US$ 0.32. Operating Revenues and Costs are both escalated at 2% per annum. Capital Costs are valid at September 2012 with an indicative accuracy of 35% and a 15% contingency.
Annual Production 10,000t LiOH 8,800t Li2CO3
Life of Mine (LOM) 20 years Life of Mine (LOM) Revenue US$ 3.15 Billion
Pre-tax Cashflow US$ 1.19 Billion
Pre-tax NPV (12% discount rate) US$ 321 million
Pre-tax Internal Rate of Return 94%
Average Net Operating Cost per tonne of recovered LiOH US$ 3,878
Total initial capital costs US$ 83 million
Payback of capital costs 2 years
-
15 www.reedresources.com
0
5,000
10,000
15,000
20,000
25,000
Brine-basedexpansion
Brine-basednew project
Spodumene-basednew project
RIM Capex2012 PFS
US$/MT
Capital cost advantage Capital Efficiency (US$/ Production tonne LCE per annum)
LiOH Plant
LiOH
Li2CO3
Li2CO3 Plant
Sources: FMC Corporate Presentation 2011, Reed Pre-feasibility Study 2012, Reed management analysis
-
16 www.reedresources.com
Near-term milestones
Nov 2013 March 2014
Proof Of Concept
Operating & Capital Costs Anticipated
Commence Engineering Cost Study
Subject to RIM board approval
Complete Semi Pilot Plant Testwork
June Q2014 Dec Q2014
Commence Semi Pilot Plant Testwork
Continue to prove technical feasibility, product quality Attract LiOH JV Partner
-
17 www.reedresources.com www.reedresources.com
Financial Resources
-
18 www.reedresources.com
Rebuilding the Balance Sheet
Cash at Bank $8.7M [31 March 2014]*
Comet Vale $2M cash sale, majority settlement est before end June 14
Market Cap $13M @ 2.5 per share
Meekatharra $3.4 M cash + cancellation of 24M RDR shares**, settlement est 30 June Mt Finnerty Iron underway
* Includes $6.2M of restricted access term deposits ** Subject to creditor and shareholder approval
-
19 www.reedresources.com
Focus
-
20 www.reedresources.com
Downstream Strategy
Commerc- ialisation
Partner Qualification
Demonstrate Consistent Quality
Demonstrate Technical Feasibility
-
21 www.reedresources.com www.reedresources.com
Thank you
Slide Number 1DisclaimerCompany StrategySlide Number 4Flythrough Slide Number 6Development strategy:de-risk with strong partnersStrong Partner for upstreamScaling Up a New feed for a Mature TechnologyRIM ProcessChlor-alkali CellProof of Concept ResultsOperating cost advantagePre-feasibility Study ResultsCapital cost advantageNear-term milestonesSlide Number 17Rebuilding the Balance SheetSlide Number 19Slide Number 20Slide Number 21