American Source of Lithium & Boron for an Energy Efficient Future Ann nnual Gen eneral Meeting 31 October 2018 1 ASX: GSC
Important Notices and Disclaimers This presentation has been prepared as a summary only and does not contain all and Managing Director of Global Geoscience Ltd. Mr Rowe has sufficient information about Global Geoscience Limited’s (“Global” or “the Company”) assets experience that is relevant to the style of mineralisation and type of deposit under and liabilities, financial position and performance, profits and losses, prospects, consideration and to the activity being undertaken to qualify as a Competent and the rights and liabilities attaching to Global’s securities. The securities issued Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of by Global are considered speculative and there is no guarantee that they will make Exploration Results, Mineral Resources and Ore Reserves’ . Bernard Rowe consents a return on the capital invested, that dividends will be paid on the shares or that to the inclusion in the report of the matters based on his information in the form there will be an increase in the value of the shares in the future. and context in which it appears. Global does not purport to give financial or investment advice. No account has In respect of Mineral Resources referred to in this presentation and previously been taken of the objectives, financial situation or needs of any recipient of this reported by the Company in accordance with JORC Code 2012, the Company presentation. Recipients of this presentation should carefully consider whether confirms that it is not aware of any new information or data that materially affects the securities issued by Global are an appropriate investment for them in light of the information included in the public report titled “Updated Rhyolite Ridge their personal circumstances, including their financial and taxation position. Mineral Resource Statement” dated 23 October 2018 and released on ASX. Further Investors should make and rely upon their own enquiries before deciding to information regarding the Mineral Resource estimate can be found in that report. acquire or deal in the Company's securities. All material assumptions and technical parameters underpinning the estimates in the report continue to apply and have not materially changed. For orward Loo ooking king Sta tatements ts In respect of production targets referred to in this presentation and previously Various statements in this presentation constitute statements relating to disclosed, the Company confirms that it is not aware of any new information or intentions, future acts and events which are generally classified as “forward data that materially affects the information included in the public report titled looking statements” . These forward looking statements are not guarantees or “Outstanding Results from Rhyolite Ridge Pre- Feasibility” dated 23 October 2018. predictions of future performance and involve known and unknown risks, Further information regarding the production estimates can be found in that uncertainties and other important factors (many of which are beyond the report. All material assumptions and technical parameters underpinning the Company’s control) that could cause those future acts, events and circumstances estimates in the report continue to apply and have not materially changed. to differ materially from what is presented or implicitly portrayed in this No No of offer of of secur urit itie ies presentation. For example, future reserves described in this presentation may be based, in part, Nothing in this presentation should be construed as either an offer to sell or a on market prices that may vary significantly from current levels. These variations solicitation of an offer to buy or sell Global securities in any jurisdiction, or be may materially affect the timing or feasibility of particular developments. treated or relied upon as a recommendation or advice by Global. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, Rel elia iance on on thir ird party info formatio ion “estimates”, “potential” and similar expressions are intended to identify forward- The views expressed in this presentation contain information that has been looking statements. derived from publicly available sources that have not been independently verified. Global cautions security holders and prospective security holders to not place No representation or warranty is made as to the accuracy, completeness or undue reliance on these forward-looking statements, which reflect the view of reliability of the information. This presentation should not be relied upon as a Global only as of the date of this presentation. The forward-looking statements recommendation or forecast by Global. made in this presentation relate only to events as of the date on which the Note ote: All $ ’s are US US$ ’s except pt wh where ot othe herwis ise note oted. statements are made. Except as required by applicable regulations or by law, Global 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. Compe petent nt Persons ns Sta tate tement nt The information in this report that relates to Exploration Results is based on information compiled by Bernard Rowe, a Competent Person who is a Member of 2 ASX: GSC the Australian Institute of Geoscientists. Bernard Rowe is a shareholder, employee
Corporate Focus - Produce Lithium and Boron for a Modern World • Glass • Ceramics • Electric Vehicles Li B • Insulation • Energy Storage • Electronics • Agriculture Strong De Str Demand Gro Growth Limited Su Supply in No North rth America Esse ssential for r Modern Life fe Cap apit ital St Structure Di Directors Shares 1.47B James D. Calaway Non-Exec. Chairman Options (unlisted) 58.1M Bernard Rowe Managing Director Performance Rights (unlisted) 1.5M Alan Davies Non-Exec. Director Patrick Elliott Non-Exec. Director Cash (at 30 September 2018) A$75M Share Price (at 30 Oct 2018) A$0.215 John Hofmeister Non-Exec. Director Owner nership - To Top 20 20 = = 60% 0%, , Di Directors/Mgmt = = 10% 10% Market Cap. A$316M GSC GSC is s in n S&P S&P/ASX 300 300 3 ASX: GSC
Delivering the first major lithium mine in the USA …and the next major boron mine globally Rh Rhyo yolite Ri Ridge dge PFS PFS has s de deli livered: 20Ktpa lithium carbonate and 170Ktpa boric acid Rhyolite Ridge World’s lowest cost lithium producer >30 year mine life, expandable Albemarle's Silver Peak Mine Producing: <4Ktpa Li 2 CO 3 Only lithium mine in USA Rio Tinto’s Boron Mine Only major boron mine in USA Globally significant lithium and boron producer 4 ASX: GSC ASX: GSC
Progress since September 2017 Advanced Rhyolite Ridge Lithium-boron resource doubled From agitation leaching to vat leaching Testwork confirmed flowsheet and high lithium-boron recoveries Trade-off studies confirmed development path PFS completed Built Management Team Operations – Matt Weaver Marketing – Michael le Page, Yoshio Nagai Corporate S&P/ASX 300 Index Placements of $30M & $53M Now positioned to deepen discussions with diverse range of potential market and finance partners Re-branded as ioneer 5 ASX: GSC ASX: GSC
PFS Highlights Bottom of the Cost Curve, Long Life Project $1,796 per tonne of Lithium Carbonate Li Carbonate = 20ktpa, Boric Acid = 173ktpa >30 years, expandable, Initial production Q3 2021 Low Risk Project Conventional processing using proven technology Conservative start-up approach Strong Project Economics LOM after-tax cashflow =US$6.6 billion After-tax NPV(7% real) = US$1.8 billion, IRR = 28% Annual steady state revenue of US$450M Annual steady state EBITDA of US$297M Initial Capex of US$426M including indirects and contingency plus $173M for lump sum turnkey sulphuric acid plant Rapid payback of capital: 4 years 6 ASX: GSC ASX: GSC
Conservative Start-Up Approach Lump sum turnkey sulphuric acid plant with performance guarantees Evaporator and crystalliser vendor packages including engineering, procurement and performance guarantees After 3 years of operations: Add battery-grade Li carbonate circuit Add steam turbine generator to acid plant Contract mining at start-up 7 ASX: GSC ASX: GSC
Very Competitive Costs PFS FS Ba Base Cas ase (2.6 (2.6Mtpa): Operating costs < $2,000/t LCE with boric acid credit places Rhyolite Ridge at bottom of the lithium cost curve Boric acid at conservative $700/t pays for most of site operating costs Capital intensity of $18k/t LCE compares favourably with industry range of $15-25k/t 8 ASX: GSC ASX: GSC
CapEx Flexibility Base Case CapEx % Direct US$M Pro Proje ject si sizing pro provides fle flexibili lity : Acid plant (3,500tpd acid) 41% 173.3 Processing plant 45% Acid plant key capex driver 190.4 Other direct 14% 56.9 Larger acid plant provides Total Direct Cost 420.6 economies of scale Capital intensity reduces to $15k/t Owners costs + indirects 110.9 26% LCE at 3.6Mtpa Contingency 16% 67.9 Rapid payback of capital: 4 years Total Project Costs 599.5 Flexibility to go smaller if required $421M capex for 1.5Mtpa 9 ASX: GSC ASX: GSC
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