THE WORLD'S PREMIER LITHIUM OPPORTUNITY - TSX - NMX and OTCQX - NMKEF - Seeking Alpha
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THE WORLD’S PREMIER LITHIUM OPPORTUNITY TSX - NMX and OTCQX – NMKEF
• 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.
Forward- • 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
looking will in fact lead to production of mineral resources and of
lithium compounds.
statement
• Nemaska has press released on January 9, 2018 the
highlights of a upcoming NI-43-101 compliant feasibility
study report which is expected to be filed on SEDAR in
February 2018. All technical information should be
reviewed according to this 2018 feasibility study.
• All figures are in Canadian Dollars unless otherwise
specified. Exchange Rate is CAD$1.00 = USD$0.77
2
The Keys to Success
Closest near-term lithium hydroxide/lithium In-House Experienced Management,
carbonate producer (fully permitted) Technical, Construction and Plant Start-Up
Teams
• Phase 1 Plant: on-going operations to produce
commercial lithium salts samples
• H2-2019: Commissioning of Commercial Mine,
Concentrator
• H2-2020 Commissioning of Hydromet plant
Fully integrated from the mine to the end Supported by the Quebec and Canadian
product = credible and safe supplier governments through $26M in funding and
future project investment
• North America’s richest and one of the largest
reserves of Lithium Spodumene in the world
• 37 MT Proven and Probable Reserves for an
initial 33 years mine life
Lowest cost and greenest process to produce World-class customers – Offtake Agreements
high purity lithium salts (lithium in Place
hydroxide/carbonate)
• Johnson Matthey Battery Materials
• Unique chemical process and affordable • FMC Corporation
hydroelectricity Account for ~40% of planned production capacity
3
Quebec: Very Good Location and Jurisdiction
1. Mine and Concentrator located in Eeyou Istchee
James Bay region, 300 km north of Chibougamau
• ≈213kt/y 6.25% Li2O concentrate
• 212 employees
Positioned to Become
2. Transport by road to Chibougamau and 555 km by
rail (CN) to Shawinigan
• 18 railcars / 3 days
a Fully-Integrated Lithium Producer
Nemaska
3. Hydromet Plant in Shawinigan as per Feasibility Study
• ≈23kt/y LiOH.H2O Chibougamau
Matagami
• ≈11kt/y Li2Co3 Saguenay
• 103 employees
Rouyn-Noranda Val-d’Or
Québec
Shawinigan
Montréal
4
Complete Infrastructure at Mine Site
Nemiscau
Substation
Relais routier
Nemiscau
Km 291
Nemiscau
Cree Community
Airport
of Nemaska
Whabouchi deposit
Substation
Albanel
To Route de la
Baie-James Route du Nord to
Chibougamau
LEGEND
Whabouchi property
Public roads
Power lines
5
Grade is KING, Low Levels of Impurities
Reserves
Tonnage
Category Li2O (%)
(Mt)
Open pit
Proven and
24.0 1.53%
probable
Underground
Proven and
13.0 1.16%
probable
Combined
Proven and
37.0 1.40%
probable
Net effect:
low cost of concentrate
6Hydromet Plants
Existing Buildings in Shawinigan, Quebec
Hydroelectric Power Plant
Commercial Plant
Anticipated commissioning H2-2020
Phase 1
Plant
Commissioned in Q1-2017
72018 Feasibility Study Highlights
Expected Mine Life and Payback Period NPV
33 years $3.3 B (US$2.5 B) $2.4 B (US$1.8 B)
with 2.9 year payback period 8% Discount (pre-tax) 8% Discount (after tax)
Life of Mine Revenue Internal Rate of Return (IRR)
$19.2 Billion (US$14.8 B)
(average of $581M/yr for 33 years) 34.4% (pre-tax) 30.5% (after tax)
Undiscounted Cash Flow Total Initial Capital Costs
$13.2 B $9.6 Billion $801M (USD$616M) in CAPEX
(USD$10.2B) (pre-tax) (USD$7.4B) (after tax) including contingency)
82018 Feasibility Study Highlights
Average Cost Per Tonne - Spodumene Concentrate Yearly average production
$285/t (US$219/t) FOB Mine (open pit) Mine
$353/t (US$272/t) FOB Mine (underground) ≈ 213k tonnes of concentrate (6.25% Li2O)
Average Cost Per Tonne - Lithium Hydroxide Hydromet Plant
$3,655/t (US$2,811/t) FOB Shawinigan ≈ 23k tonnes of lithium hydroxide
low cost producer ≈ 11k tonnes of lithium carbonate
Average Cost Per Tonne - Lithium Carbonate 99.99% Sales Prices FOB Shawinigan Lithium Hydroxide USD$14,000/t, Lithium
Carbonate USD$9,500/t for first 5 years and USD$12,000t thereafter
All calculations assume a 6.25% Li2O spodumene concentrate
$4,424/t (US$3,403/t)FOB Shawinigan
Exchange Rate CAD$1.00 to USD$0.77
low cost producer
9Nemaska’s Concentrate Hydroxide and Carbonate Cost Advantages
Concentrate Costs for Nemaska vs. Competitors (all US$)
US$ Costs for Nemaska vs. Competitors – Hydroxide US$ Costs for Nemaska vs. Competitors – Carbonate
10Nemaska Lithium – LiOH.H2O Lowest Cost Producer
Lithium hydroxide cost curve, 2021 (US$/t)
Source Roskill 2018 report
11Nemaska Lithium – Li2CO3 Low Cost Producer
Lithium carbonate cost curve, 2021 (US$/t)
Source Roskill 2018 Report
12Lithium Demand per Product 2016 - 2031
Roskill 2018
13Battery Grade Lithium Salts Prices Global Scenario 2008 to 2031
Roskill 2018
NMX model average
USD$14,000 t for NMX model average
lithium hydroxide USD$11,719 t for
lithium carbonate
14Mega-factories Pushing Demand for Lithium
Benchmark Mineral Intelligence October 2017
15Capital Structure (January 12, 2018)
Shares outstanding 401,643,177
Options (average exercise price $0.71) – January 2018 to Oct. 2022 15,824,484
Warrants (average exercise price $1.49) – July 2019 30,826,035
Fully Diluted 448,293,696
Distribution on a fully diluted basis
Management and employees ≈8 %
Ressources Québec, Tianqi and Nemaska Development Corp. ≈13 %
Institutional ≈45 %
Others ≈34 %
16Nemaska’s Concentrate, Li Hydroxide and Li Carbonate Cost Advantages
l Nemaska will be a vertically integrated lithium company
- Mine and hydromet plant are both located in the Province of Quebec reducing shipping costs between sites;
- 100% owned Whabouchi Lithium deposit means no margin paid on concentrate and no issue with security of supply, leading
to significant cost savings over competitors (primarily in China) who buy concentrate from third party mines in Australia;
l Low cost, high quality concentrate production asset (≈6.25% Li2O at US$257/t)
- Whabouchi deposit is located next to existing infrastructure roads, power, lodging, workforce; reducing initial capex needs as
well as ongoing operational expenses;
- Homogenous high-grade ore body amenable to open pit mining and low costs concentration methods, including Dense
Media Separation;
l Hydromet plant well positioned to be a very low cost producer of high quality battery grade lithium
compounds
- Predictable, affordable hydropower electricity (US$0.04/kWh) available under long term contract;
- Proprietary process eliminates need for soda ash (Na2CO3) and caustic soda (NaOH), leading to an approximate $700
(approx. US$525) per ton cost advantage for lithium hydroxide and reduced input cost volatility;
- In addition, process does not produce salt cake by-product (Na2SO4) therefore eliminating handling and disposal costs;
- Greenest process to produce high quality lithium salts (lithium hydroxide and lithium carbonate);
l The combination of factors above will enable the company to deliver materials at well below industry
averages
- Lithium hydroxide unit cost is 59% lower for NMX at US$2,811 per ton versus US$6,800 per ton for competitors;
- Lithium carbonate unit cost is 53% lower for NMX at US$3,403 per ton versus US$7,260 per ton for competitors;
- Low cost provides downside protection and positions company to be competitive even in oversupplied markets;
17
l Revenues will be USD denominated while most expenses will be CAD denominated.Nemaska
Lithium is
THE
Li Project
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