Rhyolite Ridge American Source of Lithium & Boron for a Sustainable Future
James D. Calaway, Chairman of ioneer Ltd
Lithium Supply & Markets Conference
Santiago, Chile
June 2019
1
Important notices and disclaimers
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 objectives, 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.
Note: All $’s in this presentation are US$’s except where otherwise noted.
ASX: INR
Competent Persons Statement
The information in this presentation that relates to Exploration Results is based on information compiled by Bernard Rowe, a Competent Person who is a Member of the Australian Institute of Geoscientists. Bernard Rowe is a shareholder, employee and Managing Director of ioneer Ltd. Mr Rowe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Bernard Rowe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
In respect of Mineral Resources 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 “Updated Rhyolite Ridge Mineral Resource Statement” dated 23 October 2018 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. The Company intends to report updated Mineral Resource and Ore Reserve estimates as part of the Definitive Feasibility Study currently in progress and due for completion in Q3 2019.
In respect of production targets referred to in this presentation and previously disclosed, 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 “Outstanding Results from Rhyolite Ridge Pre-Feasibility” dated 23 October 2018. 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 offer 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.
2
ASX: INR
is set to deliver a
major lithium-boron mine
in the USA
Boron differentiates Rhyolite Ridge 100% ownership of Rhyolite Ridge
lithium-boron searlesite resource
Fluor on-track to be complete DFS in
Q3 2019
Extensive process flowsheet testwork
completed by Kemetco and Veolia
Pilot plant commissioning underway and
will process one tonne per day
Environmental baseline studies near
complete
104Mt Indicated Resource with further
drilling completed to upgrade Reserve
Nevada location: major supplier of
critical material to North America
3
100%-owned Rhyolite Ridge:
• +30 year mine life, capable of producing:
• +20,000 tonnes p.a. lithium carbonate
• +170,000 tonnes p.a. boric acid
• Dual revenue stream
• Uniquely position to be a major supplier of
both products
• Forecast to be bottom of the lithium cost
curve due to revenue from boron co-product
ASX: INR
Rhyolite Ridge Lithium-Boron Project
Unique lithium-boron deposit where metals can be extracted using proven
commercial processes to produce lithium and boron end-products on site 4
Sedimentary lithium deposits are often incorrectly assumed to be synonymous with clay
There are two basic types of sedimentary lithium deposit: Lithium-Boron type and Clay type
Lithium-Boron deposits are mineralogically different to clay and this has major implications for ease and cost of processing
Rhyolite Ridge is one of only two known large Lithium-Boron deposits globally
Rhyolite Ridge ore is dominated (40-50%) by searlesite – a sodium boro-silicate mineral that is soluble in acid
Boron is a legitimate co-product providing 30-50% of revenue, into a global market that exceeds $3B annually
ioneer set to become third largest boron producer globally
Boron makes Rhyolite Ridge different to other sedimentary lithium deposits
High-grade searlesite Li-B mineralisation in outcrop
Boron is essential for a modern world
Boron is a larger market than lithium at ≈US$3.3 billion p.a.
Stable price and steady growth of 4-6% CAGR
Broad range of uses
Essential to modern life, often no substitutes
Duopoly:
Eti (Turkey) ≈50%
Rio (Boron, California) ≈30%
Rio’s Boron mine is an aging asset with finite mine life and limited potential for expansion
74% of global reserves located in Turkey
Major boron users also use lithium
Boron demand driven by:
Urbanisation
Energy efficiency
Agriculture
5
ASX: INR
Multiple options to fund US$600M in capex
Working with a top-tier international bank
Currently in the discovery phase
Engaging with interested parties on potential:
o Lithium and boron offtake
o Vendor and export credit finance
o Strategic partnering
Structured funding process in parallel with completion of
the DFS in Q3 2019
Two product streams
100% ownership of asset
Well positioned to assess and negotiate funding:
Large, scalable project provides optionality
Funded (~A$60M cash) to progress project to FID by early 2020
USA supplier of critical minerals
Funding flexibility & strategic partnering
6
Rhyolite Ridge progress
7
2016 2017 2018 2019 2020 2021
Resource and Reserve
upgrade
Lithium hydroxide
confirmed by Veolia
Pilot plant in operation
Fluor completes DFS
Testwork confirms high
vat leach recoveries &
premium boric acid
Initial Reserve
Positive, comprehensive
Pre-Feasibility Study
Positive met testwork
Drilling doubles
Resource
Rhyolite Ridge acquired
Initial Resource
Construction
planned
First production of
lithium and boron
from Rhyolite Ridge
Rhyolite Ridge video
8 ASX: INR
This video is available on the ioneer YouTube Channel
ASX: INR
Key partners
EPCM
Evaporation Acid Plant
Mining
Acid Plant
Leaching
Pilot Plant
Material
Handling
Controls
Environment
Spent Ore
Rhyolite Ridge product specifications
10
Compound or Element
Units
Rhyolite Ridge
Analysis
Typical Industry
Specifications
Lithium Hydroxide wt% 56.5 56.5
Sodium ppm 28 ≤ 30
Potassium ppm 12 ≤ 200
Iron ppm <1 ≤ 7
Boron ppm <1 ≤ 3
Calcium ppm <10 ≤ 250
Sulphate ppm <30 ≤ 300
Chlorine ppm <100 ≤ 100
Magnesium ppm <5 ≤ 5
Silica ppm 14 ≤ 20
Carbon Dioxide wt% 0.10 ≤ 0.35
Lithium Hydroxide Monohydrate Boric Acid
Chromium, nickel, copper, lead, aluminium and zinc all analysed <1ppm with typical industry specifications ranging from ≤5ppm to ≤10ppm.
Testwork and analysis were conducted by Veolia Water Technologies Inc. in Plainfield, Illinois, USA.
Compound or Element
Units Rhyolite Ridge
Analysis
Typical Industry
Specifications
Boric Oxide (B2O3) % >56.5 >56.25
Boric Acid (H3BO3) % >99.9 >99.9
Sulphate ppm <125 <250
Chloride ppm <1 <10
Iron ppm <5 <7
Calcium ppm 13 <50
Sodium ppm 43 <200
Chlorine ppm <5 <10
Lead ppm <10 <20
Arsenic ppm <10 <100
Testwork and analysis were conducted by Kemetco Research Inc. of Richmond, BC, Canada.
Yoshio Nagai Sales & Business Development [email protected]
James D. Calaway Chairman [email protected]
Providing the materials for a sustainable &
thriving planet.
ASX: INR 11
12 ASX: INR
Looking south-east over Rhyolite Ridge South Basin
Nevada – Tier 1
Likely to benefit from the US Government’s renewed emphasis on domestic supplies of critical minerals
• Tier 1 Mining Jurisdiction
• Excellent infrastructure with direct access to rapidly expanding American and Asian markets
• Located on Federal (BLM) land
• No competing land uses or nearby residents
• Permitting to be via Environmental Assessment (EA) or an Environmental Impact Statement (EIS) as determined by Federal BLM
• Rhyolite Ridge likely to qualify for shorter EA process
• Net proceeds minerals tax not exceeding 5%
12
ASX: INR
• Total Resource1 of 4.1 million tonnes lithium carbonate & 10.9 million tonnes boric acid
• Including 121 million tonnes of lithium-boron ore containing: • 1.1 million tonnes lithium
carbonate • 8.6 million tonnes boric
acid • Lithium-only clay mineralisation to
be stockpiled
A searlesite resource that is different to other sedimentary lithium
deposits - it is suitable for a simple acid leach process
13 1 Indicated and Inferred Resource
Project Overview
ASX: INR Note: The PFS base case used lithium carbonate sale prices ranging from US$12,693/tonne to US$16,862/tonne (CIF China) and a constant boric acid sale price of US$700/tonne (CIF Asia).
Annual Revenue
$450M Annual EBITDA
$297M
After-tax Cashflow
$6.6B
After-tax NPV (7% real):
$1.8B
IRR
28%
Bottom of the Cost Curve
• $1,796 per tonne of lithium carbonate (with boric acid credit)
Lithium carbonate annual production = 20kt Boric acid annual production = 173kt
For every 1.0 tonne of lithium carbonate produced, 8.5 tonnes of boric acid is produced
Total Capex
$599M
PFS demonstrates robust project economics
14
Long Life Project
• >30 years & expandable
• Initial production Q3 2021
Lowest operating cost
Rhyolite Ridge to be at bottom of the lithium cost curve
ASX: INR
• Operating costs ~ $1,800/tonne lithium carbonate
(with boric acid credit)
• Boric acid revenue at $700/tonne pays for most of
site operating costs
Industry Lithium Carbonate Cost curve
• Acid plant provides all steam and power required
plus excess 38MW of green power for sale
• Ore leaches and washes well with overall lithium
and boron recoveries > 80%
15
On-site acid plant provides all of the steam and power required (+ circa 38MW surplus)
Ore crushed to 25mm
Ore vat leached at 50-60o C and at ambient pressure (similar to oxide copper)
Boric acid crystallised from solution (similar to Rio’s Boron Mine)
Lithium carbonate crystallised from solution (similar to lithium brines)
• Overall lithium and boron recoveries of >80%
• Very low cash costs due to:
• Simple process and high recoveries
• Exothermic nature of producing acid
• Boron revenue offsetting most of site costs
Using processing technologies proven at commercial scale
16 ASX: INR
Processing
16
17 ASX: INR
Processing flowsheet
17
Large 100%-owned mining claims
Sediment-hosted lithium-boron deposit
Similar mineralisation in two basins
Mineralisation outcrops over 3 km strike length
100% Federal (BLM) land
Lithium-Boron (Searlesite) Resource
121 Mt at 0.9% lithium carbonate, 7.1% boric acid contains:
1.1Mt lithium carbonate
8.7Mt boric acid
86% of resource in Indicated category
18 ASX: INR
District Scale Potential
18
13km
South Basin - Mineral Resource
outlined in blue
North Basin - 38 wide-spaced holes
with Li and B
ASX: INR For further information on this Mineral Resource estimate, see Company announcement titled
“Updated Rhyolite Ridge Mineral Resource Statement” dated 23 October 2018.
October 2018 Mineral Resource Estimate (1,050ppm Li Cut-off)
Total Resource including Lithium-Only Mineralisation and Lithium-Boron (Searlesite) Mineralisation
Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium
Mt ppm ppm % % % kt kt kt
Indicated 149.6 1,890 7,250 1.0 4.1 1.6 1,510 6,180 2,430
Inferred 49.4 1,860 4,300 1.0 2.4 1.6 490 1,200 770
Total 199.1 1,880 6,520 1.0 3.7 1.6 2,000 7,380 3,210
Indicated 192.4 1,370 2,880 0.7 1.6 1.6 1,410 3,060 3,020
Inferred 83.9 1,480 1,080 0.8 0.6 1.5 660 490 1,230
Total 276.3 1,410 2,340 0.7 1.3 1.5 2070 3,550 4,250
Indicated 342.0 1,600 4,800 0.9 2.7 1.6 2,910 9,240 5,450
Inferred 133.4 1,600 2,300 0.9 1.3 1.5 1,150 1,690 2,000
Grand Total 475.4 1,610 4,100 0.9 2.3 1.6 4,060 10,930 7,460
Contained
Upper Zone
Lower Zone
Upper &
Lower Zone
October 2018 Mineral Resource Estimate (1,050ppm Li & 0.5% B Cut-off Cut-off)
Lithium-Boron (Searlesite) Mineralisation
Group Classification Tonnage Li B Li2CO3 H3BO3 K2SO4 Li2CO3 Boric Acid Potassium
Mt ppm ppm % % % kt kt kt
Indicated 71.9 1,840 14,110 1.0 8.1 2.0 700 5,800 1,420
Inferred 14.7 1,970 12,150 1.0 6.9 2.0 150 1,020 300
Total 86.6 1,860 13,780 1.0 7.9 2.0 860 6,830 1,720
Indicated 32.2 1,430 9,750 0.8 5.4 1.7 240 1,730 530
Inferred 2.6 1,620 6,690 0.9 3.3 1.8 20 90 50
Total 34.8 1,440 9,520 0.8 5.2 1.7 270 1,820 580
Indicated 104.1 1,700 12,800 0.9 7.2 1.9 950 7,540 1,950
Inferred 17.3 1,900 11,300 1.0 6.4 2.0 180 1,110 340
Grand Total 121.4 1,740 12,600 0.9 7.1 1.9 1,130 8,650 2,300
Contained
Upper Zone
Lower Zone
Upper &
Lower Zone
19