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May 2013
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Forward-looking Statement
Disclaimer •The contents of this presentation are not to be reproduced or distributed to any third party, including the general public or the media, without the express written consent of Canada Lithium Corp. (“Canada Lithium” or the “Corporation”). The information contained herein, while obtained from available sources which the Corporation believes are reliable, is not guaranteed as to its accuracy or completeness. Canada Lithium is engaged in the construction of an open-pit mine and processing plant to produce lithium carbonate, among other products, on-site near Val d’Or, Quebec.
Cautionary Note Regarding Forward-Looking Information This presentation contains “forward-looking statements” and “forward-looking information” within the meaning of applicable law, which include statements herein relating to the potential to increase mineral resource and mineral reserve estimates. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: risks relating to assumptions used in preparation of any Feasibility Studies on the Quebec Lithium Project, including government regulation, lithium prices, labor costs and capital costs, and project risks including project location, permitting requirements, project delays, ground control and dilution and water management; the general risks associated with the speculative nature of the Company’s business, commodity prices, current global financial conditions, uncertainty of additional capital, price volatility, the Quebec Lithium Project a development-stage project, limited operating history, no history of earnings, government regulation in the mining industry, environmental risks and hazards, impending climate change legislation, required approvals and permits, foreign subsidiaries, risks relating to the retention of the Quebec Lithium Project, expiration of leases and permits for the Quebec Lithium Project, title to mineral properties, obtaining and converting mineral concessions and surface rights, community relations and project support, water rights, exploration, development and operating risks, uncertainty in the estimation of mineral reserves and resources, uncertainty of inferred mineral resources, mineral exploration, reliability
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Forward-looking Statement (continued)
of historical exploration work, absence of public trading market, risks associated with having a controlling shareholder, arbitrary offering price, dilution to the common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled “Risk Factors” in the Company’s most recently filed annual information form available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this presentation are included for the purpose of providing investors with information to assist them in understanding the Company’s expected financial and operational performance and may not be appropriate for other purposes. Canada Lithium does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
Cautionary Note to United States Investors Concerning Estimates of Mineral Resources •This presentation uses the terms “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. United States investors are advised that while such terms are recognized and required by Canadian regulations to be disclosed, the United States Securities and Exchange Commission generally does not permit disclosure of mineral resources of any kind in documents filed with the United States Securities and Exchange Commission. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured Mineral Resources or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
•The contents of this presentation are for informational purposes only and do not constitute an offer to sell or a solicitation to purchase any securities referred to herein.
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CLQ … Soon to be World’s Fourth Largest Producer
FULL PRODUCTION: END 2013 4
Successful Mine Development
Mine and plant now commissioning
First spodumene produced
Annual 2014 EBITDA +/– $50 million at current prices
World-class Producer
~12% of world’s lithium carbonate supply: >20,000 tonnes/year
75% of production secured in off-takes with Tewoo and Marubeni
2015 LiOH/sodium sulphate proposed upgrade: EBITDA of $77M
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Energy Storage Revolution Under Way
Lightest metal with highest energy density
Currently included in only 30% of world’s batteries
More than 25 lithium battery chemistries commercially available
27,000 active battery patents at USPTO
95% of battery research includes lithium
Price competitive: 4¢ worth in a cellphone
Three Major Markets in Growth Mode
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Consumer Electronics
Li-ion batteries have captured nearly 100% market share
Sole battery technology in portable applications in 5-10 years
Prices dropping steadily
Applications migrating to larger devices (lawnmowers, wheelchairs)
Smart Grid Storage
Major electronics/battery firms spending $billions on new technology
30MW to 50MW facilities already in North America and Asia
AES bidding on 400MW storage facility for Long Island, N.Y.
Electric Vehicles
45 hybrid models and 15 EVs now available (all lithium-powered)
Lithium batteries now used in all HEV and EV vehicles
EV sales slow due to ‘range anxiety’ and price
HEVs now 20% of vehicle sales in Japan ... China next
130 million E-bikes on Chinese roads (only 4% lithium-powered)
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Lithium Carbonate Applications
Application Lithium Carbonate*
Laptop 30 g
E-bike/scooter 500 g
Hybrid cars 6 kg
Plug-in hybrids 12 kg
40 kWh EV 24 kg
1 MW bulk storage (est.) 600 kg
•GM conversion factor: 0.6 kg of lithium carbonate per kWh for hybrids, plug-ins and EVs
12-MW Los Andes grid-storage facility in northern Chile
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Lithium Battery Cost and Battery Revenue Forecasts
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Lithium Battery Revenue ($B)*
* IHS iSuppli Rechargeable Batteries Special Report, August, 2011
Forecast shows sharp decline in lithium-ion battery costs*
Forecast Lithium Consumption from 2011 to 2020*
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0
50
100
150
200
250
300
Other industrial Greases Ceramics/glass Transportation Electronics
‘000s tonnes of lithium carbonate equivalent (LCE)
* BofA Merrill Lynch Global Research, October 2012; black arrow is Roskill Information Services forecast
2011 2012 2013 2014 2015 2016 2017 2020
Lithium Carbonate Prices
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0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 Term
2012 Spot
Lithium Carbonate: 2004 to 2012 (US$/t)*
•2004 to 2011- China Technical Grade - Roskill Information Services •2012 –China Pricing - Asia Minerals Magazine
June 2011 Chemetall 20% price increase
July 2011 FMC 15% – 20% price increase
December 2011 Talison 15% increase
May 2012 Chemetall $1,000/t increase
June 2012 FMC $1,000/t increase
July 2012 Talison announces another 10% increase
Argentina 14%
Australia 29%
China 11%
Rest of world: 2% 11
Chile leads the brine producers; Australia leads the mineral side
* Source: Roskill Information Services Ltd., September 2011
Chile 41%
Canada Lithium
Brine Producers Hard-rock Producers Brine and Hard-rock Producers
Nevada 3%
World Production
SQM
Rockwood Talison Tianqui
FMC Lithium
Rockwood
Major Lithium Producers
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Lithium Carbonate Operating Costs*
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
5,000.0
SQM-brines ROC-brines CLQ-hard rock FMC-brines China-brines Australia-hard rock
China-hard rock
Lithium Carbonate Costs in $/tonne*
•Bank of America Merrill Lynch report, October 2012, except CLQ costs from Updated Feasibility Study, November 2012. • CLQ costs include credits for lithium hydroxide and sodium sulphate production
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Québec Lithium Project
* Hydro-Quebec ** Fraser Institute’s Annual Survey 2012
Operated 10 years from 1955 to 1965; only 60 km north of Val d’Or
Current effective power cost in Quebec: $0.047/kWh*
Easy access to plant chemicals and consumables
Skilled labor/supply infrastructure
Ranked 11th of 96 mining destinations**
Québec: Lithium/Green Energy focus Phostech Bathium/Bolloré Hydro Québec
Québec Lithium Project
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Mineral Resources and Reserves
Category Mt* % Li20 M&I Resources 33.2 1.19
Inferred Resources 13.8 1.21
•Rounded to nearest 100,000; total Inferred Mineral Resource is exclusive of total Measured and Indicated Mineral Resources.
•Mineral Resources announced December 6, 2011; Mineral Reserves announced June 13, 2011.
Category Mt* % Li20 Proven Reserves 6.6 0.92
Probable Reserves 10.5 0.95
Total 17.1 0.94
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Québec Lithium Surface View
14.9-Year Pit Outline
Dyke extensions
Lithium-bearing pegmatite outcrop
Project Upside Potential
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Mined ore 0.94% Li2O >1.3 million tonnes
Spodumene 5.7%-6.5% Li2O 165,000 tonnes
Spodumene sales
Lithium carbonate >99.5% >20,000 tonnes
Base Case:
Increased resource = longer mine life
Upside Potential:
Lithium metal production*
Lithium metal
Lithium carbonate
Metal
Lithium hydroxide ∼2,000 tonnes
Sodium sulphate ~30,000 tonnes
Lithium alloys
* CLQ to receive $6.5 million grant from federal government technology program
Spodumene to Lithium Carbonate
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Post-kiln product
Sulphation
Water leaching
Leach solution purification
Ion exchange
Battery-grade lithium carbonate
Lithium carbonate precipitation
Soda Ash
Kiln
Lithium hydroxide
Sodium sulphate
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Project Economics: Updated Feasibility October 2012
US$/C$ exchange rate 1:1.1
Key Indicators Updated
Feasibility (2012)
NPV (pre-tax; 8%) at flat $5,875 per tonne lithium carbonate revenue $318M
NPV (pre-tax; 8%) lithium carbonate price based on Roskill market study $456M
Lithium hydroxide and sodium sulphate capital cost $20M Average operating costs ($ per tonne lithium carbonate inclusive of lithium hydroxide/sodium sulphate operating costs) $3,194
Average operating costs ($ per tonne lithium carbonate net of lithium hydroxide/sodium sulphate credits) $2,328
Average annual EBITDA with co-products $77M IRR @ $5,875/t lithium carbonate revenue vs. 2012 Roskill market study @ ∼$6,600 32% vs. 37%
Simple Payback (years) <4
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Project Economics Operating Costs
US$/C$ exchange rate 1:1
Operating Costs $/t (milled) $/t (Li2CO3) Mining 16.73 1,024
Crush/Grind/Float 8.52 521
Lithium hydroxide/sodium sulphate sorting 3.11 191
Hydrometallurgical 21.85 1,338
Administration 1.96 120
Total 52.17 3,194
Aerial View of the Project August 2011
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A green-field site
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Site Construction
Process plant
Winter 2013 August 2012
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Open-pit blast
Open Pit January 2013
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Open Pit January 2013
Excavators and mine trucks in open pit
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Site Construction December 2012
Crushing circuit
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Site Construction December 2012
Ball and rod mills
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Site Construction December 2012
Flotation cells
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Site Construction November 2012
Rotary kiln
Site Construction December 2012
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Precipitation tanks
Site Construction December 2012
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Carbonate Polishing
Site Construction December 2012
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Filter circuit
Site Construction December 2012
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Lithium Carbonate Bag Plant
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Site Construction December 2012
Tailings facility
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Quality and the Environment
Lithium carbonate
Battery-Grade Credentials: 99.5% to 99.9% Li2CO3
Fe: <0.0002% Mg: 0.0081% Cl: 0.0048% S: <0.01% Na: 0.016%
Environmental footprint
Utilizes green/renewable hydro power No cyanide use No acid mine drainage Tailings >99% silica (beach sand)
Next Stages .... Production Schedule
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2013 2014 2015 Q1 - 3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Spodumene commissioning Li2CO3 commissioning First carbonate sales Li2CO3 production Na2SO4 design/construct LiOH design/construct Lithium metal testwork Lithium metal feasibility/pilot Lithium metal construction Lithium metal commissioning
Québec Lithium inc.
Experienced Senior Management and Technical Team
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Kerry Knoll Chairman Co-founder of Wheaton River, Glencairn Gold, Thompson Creek Metals
Peter Secker Deputy Chairman, CEO
Developed three mines in Australia and two in China
Over 30 years project management, operations and CEO experience
Charles Taschereau President and COO
20 years operating experience
Developed $450 million Essakane open-pit project for IAMGOLD
Yves Desrosiers GM, Operations
15 years operating experience
Metallurgist with graphite, iron ore, gold experience in Quebec
Halina McGregor
VP, Finance Former VP, Finance, and CFO of Goldcorp and, prior to that, Senior VP, Finance, and CFO of Sherritt International Corp
Germaine Coombs CFO
More than 15 years in financial management
Former Controller of FNX Mining
Shaun McCurdy VP, Marketing
20+ years global experience with ENRC, Katanga and Sherritt International
Extensive work negotiating/administering off-take agreements
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Capital Structure & Market Shares O/S 361 million
Shares F/D 442 million
Debt Facility: $75 million
Debt Drawdown complete
Date: May 2013
TSX symbol: CLQ OTCQX symbol: CLQMF
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