Sourcing the raw materials For personal use only of the future ASX: SYA Investor Presentation – Strategic Entry into the Lithium Market APRIL 2016
The Green Energy Revolution For personal use only Creating Demand for Graphite & Lithium for Use in Batteries
Lithium … Critical in the Energy Revolution For personal use only Lithium is now considered a key, strategic energy Energy Storage – metal in the clean technology The economic economy that is “ “ value of energy being fuelled by An What if storage over a advances in Increasingly I Told You….. 10-year period in electric vehicles, Precious ” Lithium is the the US could energy storage Metal ” New Gasoline reach $ 228 and electronics Jan 2016 Dec 2015 billion, 21 % of the $ 1 trillion global economic benefit Disruptive Innovations II, 2014
The Company’s strategy is to For personal use only change the world and power the future by sourcing and developing the raw materials essential for lithium-ion battery production
Lith Lithium ium Con Consu sumpt mption ion – The he Fu Futu ture e is is Elect Electric ric Glass / Ceramics For personal use only Manufacturing/ Plastics 35 % 19 % 9 % 29 % 8 % Other Grease Batteries Lithium-ion is the battery of choice Super Lighter, Longer life-cycle More energy more and more environmentally density compact and efficient friendly portable Source: Stormcrow, 2013 data
Key ey Dema Demand nd dr driv iver ers s th throu ough gh to to 202 2025 For personal use only > 30 % Renewable grid storage CAGR Transportation – 20-30 % electric and CAGR hybrid vehicles 8-10% Consumer electronics CAGR Source: Credit Suisse, 2014 CAGR = Compound Annual Growth Rate
Batt Ba tter eries ies ar are e th the f e fas aste test st growing wing se segme gment nt “ The problem with existing lead-acid batteries ” For personal use only is that they suck Elon Musk 2000 2013 2020 171 kt 71 kt 308 kt LCE LCE LCE 53% 32% 8% Battery consumption as a % of total consumption Source: Citi. LCE = Lithium carbonate equivalent
The Megafactories are Coming “ Solar power [with] batteries will be the For personal use only primary means of sustainable energy ” production Elon Musk Tesla’s Nevada site 3 X GROWTH
Da Dawn of wn of a a New New Aut uto o Er Era “ For personal use only Car design will change more in the next 15 years than it has in the past 100 — electrification will kick start the ” biggest change in automotive design in history Ian Callum, head of design for Jaguar, April 2016
Elec lectr tric ic & Hy & Hybr brid id Veh ehic icles les 20 MILLION EV & HYBRID CARS BY 2020 20 For personal use only 20 MILLION 735,000 157,000 2010 2020 2004
Lith Lithium ium Sou Source ces LITHIUM IS A SOFT SILVER-GREY METAL: For personal use only Low density and atomic mass High electrochemical potential High specific heat capacity Salt Lake (brine) Hard rock pegmatite 2 MAJOR SOURCES OF LITHIUM CONVERTS TO LITHIUM-HYDROXIDE SIMPLE FOR USE IN PROCESSING LITHIUM – ION BATTERIES Spodumene extracted from pegmatites :
Few New ew New Lith Lithium ium SUPP SUPPLY Y Opt Options ions Ava vail ilable ble 90 % SUPPLY 5 COMPANIES OF WORLD For personal use only PRODUCE 14 14 % END USERS SEEKING 4 % China NEW SUPPLY OPTIONS (Brine) USA (Brine) 42 % 42 36 36 % Chile Australia Argentina (Hard Rock) (Brine) Source: Citi
Sup Suppl ply y & & Dema Demand nd – A P A Perf erfect ect Stor Storm 400 BEYOND 2020 For personal use only Supply and Demand (kt LCE) GAP BETWEEN 300 SUPPLY & DEMAND 200 EMERGES 100 0 2015 2019 2016 2017 2018 2020 2025 Existing supply Probable New supply Demand SUPPLY HIGHER PRICES DEMAND Existing Producers Pricing for Lithium Carbonate Growing Demand has Tripled Since 2003 at Capacity New Applications Trading at RMB160,000/t* in No New Projects in Creating Demand China = US$24,600/t Construction Phase Pressures Source: Citi and Company estimates * Battery Boom Heats Lithium Gains as Outback Mining Stocks Soar, Bloomberg, 18 Feb 2016
Sayon Say ona a Pr Projec oject t Por ortf tfolio olio “ Recent lithium tenement acquisitions in Western For personal use only Australia, a state growing in dominance as major lithium supplier, compliment the Company’s graphite projects and strategy of securing the raw materials required to Lithiu ” m produce lithium-ion batteries Sayona CEO Corey Nolan Lithium Lithium Graphite Gr phite
Wes este tern n Aus ustr tralia alia A Globally Significant Region for Production of Lithium For personal use only Low-cost entry with Resource – 36Mt @ 1.05% Li20 Market cap – A$250m 843 km 2 Resource – 80Mt @ 1.26% Li20 tenement holding , Market cap – A$646m including granted tenure Resource – 23Mt @ 1.39% Li20 Western Market cap – A$232m Australia Resource – 16Mt @ 1.08% Li20 GMM Market cap – A$176m GXY Market cap – A$525m a dominant global producer of Lithium from high-grade, hard-rock PEGMATITES
Lit Lithiu hium m Valu alue e Up-lif lift t Pot oten entia tial Mar arket et Ca Capita pitalis lisation tion of of AS ASX X lis listed ted Co Comp mpani anies es For personal use only $ 525 M $ 656 M $ 250 M $ 646 M $ 48 M $ 232 M $ 65 M $ 28 M Exploration Appraisal Development Production 5
Simon Attwell – Exploration Manager with 29-years experience including exploring for lithium and tantalum For personal use only
Pilba Pilbara a Lit Lithiu hium m Pr Proje oject cts s Tenement package secured in proven lithium district For personal use only Located in close 764 km 2 proximity to large, high-grade tenement lithium package deposits unexplored for at lithium Pilgangoora Well tested Infrastructure geological model for access to world Albite markets Spodumene targets
Pilbar Pilbara a Lith Lithium ium Por ortf tfolio olio In close proximity to the Pilgangoora deposits For personal use only Resource – 36Mt @ 1.05% Li20 Resource – 80Mt @ 1.26% Li20
Mou Mount nt Edo Edon Pr Projec oject A region never explored for its lithium potential For personal use only over 79 km 2 70 tenement pegmatites package identified to date historical tantalum from radiometrics mining area Potential for tantalum Excellent as a valuable Infrastructure by-product credit
Mou Mount nt Edo Edon Pr Projec oject A prospective new pegmatite field For personal use only
Mou Mount nt Ed Edon on Pegm gmatit tite e Tar arge gets ts Define efined Next phase includes mapping and sampling For personal use only
West ester ern n Aust ustralian alian Lithium Lithium - Ne Next xt Steps teps For personal use only
Ea East st Kimbe Kimberley ley Gr Graph phite ite Pr Proje oject ct Metallurgical test work program underway For personal use only 3,000 m 278 km 2 drilling completed in Dec 2015 tenement 6 km of 20 km package target zone drilled Proven graphite Best assay province 12 % TGC Best Intercepts: World-class 16 m @ 5 %TGC 22 m @ 3.4 %TGC Infrastructure Open at depth and for access to along strike world Coarse graphite markets observed
Ita Itabe bela la Gr Graph phite ite Pr Proje oject ct Assay results pending from drilling program For personal use only 133 km 2 2,440 m drilling completed in April 2015 tenement package 49 holes drilled World’s second largest graphite Results pending producing region Saprolite Advantage Infrastructure NO drill or blast for access to NO crushing world LOW grinding markets High proportion of large flake
Cor Corpor porate te Sna Snapsho pshot CAPITALISATION TRADING EXCHANGE For personal use only ASX: SYA/SYAO 5.5¢ Price *as at close 15 April 2016 SHARES/OPTIONS $28M Market cap 517 Million shares $1.46M 110 Cash Million options As at Dec 2015 SHAREHOLDERS 74% 44% TOP 20 DIRECTORS
Str Stron ong g Tea eam m With ith Trac ack k Rec ecor ord d of of S Suc ucce cess ss Dan O’Neill Simon Attwell Corey Nolan Managing Director Exploration Manager Chief Executive Officer For personal use only 23 years’ of resources industry Geologist with 35 years’ of 29 years’ mineral exploration experience - success in experience resources industry experience generation, exploration and Corporate and capital markets Founding director of Orocobre discovery of mineral deposits experience Director of Altura Mining Director of Australian Tantalum, Previously Managing Director of which owned Pilgangoora leases South American focused and was subsequently acquired explorer, Elementos by Altura Mining Allan Buckler James Brown Paul Crawford Non-Executive Directo r Non-Executive Director Executive Director 35 years’ experience in the 40 years’ experience in the 35 years’ of resources industry resources sector resources sector experience 22 years with New Hope Built mining operations in CPA and previously Company Corporation Australia and Indonesia as Secretary of companies former director and chief including, Orocobre Ltd (founding Managing Director of ASX lithium operations officer for New Hope director), Elementos and ActivEx company, Altura Mining - $200m Corporation market cap. Director of Altura Mining
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