THE WORLD'S PREMIER LITHIUM OPPORTUNITY - TSX - NMX and OTCQX - NMKEF - Nemaska Lithium
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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.
• Nemaska Lithium has press released on January 9, 2018
statement the highlights of an 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 Electrochemical
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 a Fully-Integrated Lithium Producer
• 18 railcars / 3 days
Nemaska
Lithium
3. Electrochemical Plant in Shawinigan as per Feasibility
Chibougamau
Study Matagami
• ≈23kt/y LiOH.H2 O Saguenay
• ≈11kt/y Li2Co3
• 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
6
Resource Opportunities: New Zone
Main Zone
(part of the current mineral 3D interpretation of the Main
resources) Zone
Current Planned Pit
Outline
3D interpretation of the Doris
Zone
Doris Zone
(Projected
to surface)
Doris consists of fives zones, open on
strike & runs parallel to 1.2 km Main Zone.
Defined laterally for 420 m (open along
strike) and to depths of 440 m where it
joins the Main Zone.
7
Electro Plants
Existing Buildings in Shawinigan, Quebec
Hydroelectric Power Plant
Commercial Plant
Anticipated com missioning H2-2020
Phase 1
Plant
Com m issioned in Q1-2017
8
Nemaska Lithium’s Added Value: From the Mine to Lithium Salts
Proprietary process to produce directly LiOH•H2O:
• Without using soda ash (Na2CO3) or caustic soda (NaOH)
• Without producing any salt cake by-product (Na2SO4)
• Producing lithium carbonate using CO2
• CDN, US and Australian Patents (four patents granted and several applications pending in multiple countries) 9
2018 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 Billion $9.6 Billion $801M (USD$616M) in CAPEX
(US$10.2B) (pre-tax) (USD$7.4B) (after tax) including contingency
102018 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 Electrochemical Plant
$3,655/t (US$2,811/t) FOB Shawinigan ≈ 23k tonnes of lithium hydroxide
low cost producer ≈ 11k tonnes of lithium carbonate
Sales Prices FOB Shaw inigan Lithium Hydroxide USD$14,000/t, Lithium
Average Cost Per Tonne - Lithium Carbonate 99.99%
Carbonate USD$9,500/t for first 5 years and USD$12,000t thereafter
All calculations assume a 6.25% Li2O spodum ene concentrate
$4,424/t (US$3,403/t) FOB Shawinigan
Exchange Rate CA$1.00 to US$0.77
low cost producer
11Nemaska Lithium’s Concentrate, Hydroxide and Carbonate Cost Advantages
Concentrate Costs for Nemaska Lithium vs. Competitors (all US$)
US$ Costs for Nemaska Lithium vs. Competitors – US$ Costs for Nemaska Lithium vs. Competitors –
Hydroxide Carbonate
12Nemaska Lithium – LiOH.H2O Lowest Cost Producer
Roskill, 2018
Lithium hydroxide cost curve, 2021 (US$/t)
13Nemaska Lithium – Li2CO3 Low Cost Producer
Roskill, 2018
Lithium carbonate cost curve, 2021 (US$/t)
14Lithium Demand per Product 2016 - 2031
Roskill, 2018
15Battery Grade Lithium Salts Prices Global Scenario 2008 to 2031
Roskill, 2018
NMX m odel average
US$14,000 t for NMX m odel average
lithium hydroxide US$11,719 t for
lithium carbonate
16Mega-factories Pushing Demand for Lithium
Benchmark Mineral Intelligence ,October 2017
17Capital Structure (January 12, 2018)
Shares outstanding
401,643,177
Options (average exercise price $0.71) – January 2018 to October 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%
18Experienced Senior Management
Guy Bourassa Steve Nadeau Chantal Francoeur Marc Dagenais
President & CEO, Director CFO VP Human Resources VP Corporate Legal Affairs
President & CEO of CFO of Nemaska More than 25 years of More than 25 years of
Nemaska Lithium since Lithium since inception experience in the experience in the
inception in 2008. in 2008. mining and mining industry, both in
metallurgical industry, North America and
Over 33 years of Over 20 years of both in Canada and internationally.
mining experience. He accounting and finance internationally.
is currently a director of experience in mining, Headed legal affairs for
the Nouveau Monde manufacturing, Previously was Vice- Graymont Limited and
Graphite and electronics and President of Human Cambior Inc. (now
Monarques Gold automotive fields, Resources and Iamgold Corporation),
Corporation. previously acted as Communications for as well as for the
CFO of Monarques Koniambo Nickel, a African Region of
Gold Corporation. large-scale, complex Kinross Gold
nickel operation in New Corporation.
Caledonia.
19Expert Technical Team
Jean-François Magnan Bertin Ouellet Nicolas Laroche Simon Thibault
Technical Manager Process Chemical Engineer Electrochemical Engineer Director Environmental and
Social Responsibility
Professional engineer Professional chemical Masters degree in Specialized in
with over 20 years of engineer with more Electrochemical environmental mining
experience in the than 30 years of Engineering and policies and permitting in
metallurgical industry experience in various Technologies. He has Canada, especially in the
and the lithium battery manufacturing played an active role in provinces of Quebec,
industry. industries, mainly the Nemaska Lithium’s Ontario
industrial chemical pursuit of patents and Manitoba.
Author/inventor of sector. covering its innovative
several patents in the technologies, of which Collaborated on
rechargeable lithium he is a co-inventor. Environmental Permitting
battery industry. of mining projects,
Environmental and Social
Impact Assessments,
Environmental Auditing
and Environmental
Baseline Studies,
Preliminary Economic
Assessments, Pre-
Feasibility Studies and
Feasibility Studies.
20Experienced Construction and Operations Team
Yves Painchaud André Bouchard Jean Béliveau Marie-Josée Parent Guy Lauzier
Construction Project Director of Operations, Project Engineering Senior Director, Supply General Manager,
Manager Shawinigan Plant Director Chain & Contract Whabouchi Mine
Management
Senior mechanical Professional with more Professional mechanical Senior legal and
A graduate in mining
engineer in the industrial than 30 years of engineer experienced in business professional
engineering from McGill
field with over 30 years experience in operations the fields of General experienced in the
University, Guy holds
of significant experience and maintenance Management, operations leadership and coaching
over 35 years of
in major construction management for Rio and maintenance of teams as well as the
industry experience.
sites in Quebec. Tinto’s titanium dioxide management as well as strategic management,
metallurgical and project management. planning and control of
Over the course of his
During his career, he chemical plants. all activities within
career, he has been part
has held various He was involved in the leading class
of both underground
management positions He has an outstanding start-up of new organisations.
and open-pit mining
and has been managing record in the manufacturing
projects in Quebec,
and supervising his own implementation and production units in Marie-Josée has been a
Canada and
engineering firm for administration of world- Canada and abroad. member of the Quebec
internationally with
more than 15 years. class asset management Bar for 21 years, 15 as
postings in Brazil, Chili,
processes, continuous an integral part of the
Columbia, Nicaragua,
improvement programs business operations.
Mali, Mexico, Portugal
and strategic asset
and Tunisia.
planning.
21Board of Directors
Michel Baril* François Biron* Paul-Henri Couture* René Lessard Guy Bourassa
Chairman Director Director Director Director
Over 30 years as a Mining engineer with Over 35 years of Formerly, Sales President & CEO,
mechanical engineer more than 40 years of experience as a financial Manager at Campagna Nemaska Lithium.
and currently serves as mining experience. management and Motors and T-Rex
a senior executive at investment professional Vehicles.
Raymor Industries Inc. Formerly, General specializing in mining.
Manager at Inmet Mining
Former President & Corporation Held senior positions at
COO at Bombardier’s the Caisse de dépôt et
Recreational Products placement du Québec
division and EVP of and Sentient Asset
Bombardier Management.
Transportation.
*Members of the Executiv e Committee and the Audit Committee
22Analyst Coverage – 1-Year Target
$3.00
as of January 10, 2018
$3.00
as of January 10, 2018 David Talbot
Ryan Walker
$2.70
as of January 11, 2018
$2.40
as of January 10, 2018
MacMurray Whale Rupert Merer
$1.70
as of February 25, 2018
$2.50
as of March 1, 2018 Ahmad Shaath
Joe Reagor
$2.90
as of January 14, 2018
$2.90 Lee McMillan
Eric Zaunscherb as of January 10, 2018
23Nemaska Lithium’s Concentrate, Li Hydroxide and Li Carbonate Cost Advantages
Nemaska Lithium will be a vertically integrated lithium company
Mine and electrochemical 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;
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;
Electrochemical 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 (Na 2CO3) 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);
The combination of factors above will enable the Corporation to deliver materials at well below
industry average costs
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 the Corporation to be competitive even in oversupplied markets;
24
Revenues will be USD denominated while most expenses will be CAD denominated.Nemaska
Lithium is
THE
Li Project
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