Nemaska Lithium A near term lithium hydroxide supplier

Transcription

1 Nemaska Lithium A near term lithium hydroxide supplier Charging the future by Euro Pacific, Canada May 13, 2014 Guy Bourassa President and CEO

2 Forward-looking Statements During the course of this presentation, Nemaska Lithium Inc. will make a number of statements with regard to the Company s projects, business strategy and plan, which could be construed as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause results to be materially different than expectations. It is uncertain if further work will in fact lead to production of a mineral resource or in an increase and/or discovery of minerals on the properties. 2

3 Nemaska Lithium Overview Advanced lithium development company with high-grade mining assets and patent pending processes to produce high purity lithium hydroxide and lithium carbonate using electrolysis. Key asset: Whabouchi a world class lithium deposit North America s richest hard rock lithium deposit - average grade 1.53% Li2O 2 nd richest and largest deposit in the world Advanced mine permitting stage (CEA and COMEX) Focused on producing Lithium Hydroxide vs Lithium Carbonate: Lithium hydroxide market shows increasing demand from new battery technologies Production cost for lithium hydroxide and carbonate competitive with industry peers as per FS Coming catalysts Construction decision of Phase 1 hydromet plant Mine permitting completed 3

4 Location of the Mine and Transformation Plant Top ranked mining jurisdiction Established infrastructure in place at mine site: Affordable and available power Knowledgeable workforce Established lodging Mine and concentrator located in Nemaska Concentrate to be trucked to Chibougamau, transferred to rail and shipped to Valleyfield for processing 4

5 Whabouchi still open at depth Category Tonnage (Mt)* Grade Grade Increase Tonnage (Mt)* Li 2 O (%) Li 2 O (%) (Mt) Measured Indicated M + I Inferred

6 Feasibility study Highlights Expected Mine Life Life of Mine Revenue Pre-Tax Cash Flow Pre-Tax NPV 8% Discount (base case) 26 years $6.9 Billion Pre-Tax Internal Rate of Return (IRR) 25.2% Total Initial Capital Costs Pay Back of Capital Costs Selling Price Lithium Hydroxide Selling Price Lithium Carbonate Average Cost Per Tonne Spodumene Concentrate Average Cost Per Tonne Lithium Hydroxide Average Cost Per Tonne Lithium Carbonate Life of Mine Production (average of $267M/yr for 26 yr) $3.4 Billion net of CAPEX (average of $151M/yr before initial CAPEX) $924 Million C$447 Million in CAPEX C$52 Million in Contingency C$21 Million in Working Capital 3.7 years US $8,000/t FOB Valleyfield US $5,000/t FOB Valleyfield C$189/t FOB Whabouchi Mine C$3,450/t FOB Valleyfield C$4,190/t FOB Valleyfield 5.5 M tonnes spodumene concentrate converted into 728,000 tonnes battery grade lithium hydroxide and 85,000 tonnes of battery grade lithium carbonate. (average per year of 213,000 tonnes of concentrate 28,000 tonnes of lithium hydroxide and 3,250 tonnes of lithium carbonate) Exchange Rate $C to $US 1 : 0.9 (All calculations assume a 6% Li 2 O spodumene concentrate) (All figures are quoted in $CDN, unless otherwise specified)

7 Growing Demand for Lithium Hydroxide Lithium Hydroxide s importance is going to be bigger in the future for its use as active cathode material in batteries for high power applications. That means that the lithium hydroxide market is going to be much important than lithium carbonate, since its capacity is much more limited. Source: signumbox, March

8 Lithium Consumption by Application x 3 x 2 x 60 x 7 x 15 Secondary = rechargeable; Primary = non rechargeable 8

9 Conclusion Emerging leader in growing high value market segment - lithium hydroxide North America s richest deposit, 2 nd richest and largest in the world State of the art processes of producing lithium hydroxide and lithium carbonate - leading advantage over peers Well located in Quebec year round access to infrastructure, shipping ports, rail access to North American markets, Long term contract for electricity Upcoming near term catalysts for the Company Phase 1 plant, permitting 9

10 Thank you! Guy Bourassa, President and CEO TSX-V NMX