P A G E 1 INVESTOR PRESENTATION November 2018
DISCLAIMER AND COMPETENT PERSONS STATEMENT This presentation has been prepared by Northern Cobalt Limited (Northern place reliance on forward looking statements. Any forward-looking Cobalt). This document contains background information about Northern statements in this presentation speak only at the date of issue of this P A G E 2 Cobalt current at the date of this presentation. The presentation is in presentation. Subject to any continuing obligations under applicable law, summary form and does not purport to be all inclusive or complete. Northern Cobalt does not undertake any obligation to update or revise any Recipients should conduct their own investigations and perform their own information or any of the forward-looking statements in this presentation or analysis in order to satisfy themselves as to the accuracy and completeness any changes in events, conditions, or circumstances on which any such of the information, statements and opinions contained in this presentation. forward looking statement is based. This presentation is for information purposes only. Neither this presentation The information in this report that relates to Exploration Targets, Exploration nor the information contained in it constitutes an offer, invitation, solicitation Results, Mineral Resources or Ore Reserves is based on information or recommendation in relation to the purchase or sales of shares or other compiled by Mr Michael Schwarz who is a member of the Australian Institute securities in any jurisdiction. This presentation is not a prospectus, product of Geoscientists. Mr Michael Schwarz is a full-time employee of the company disclosure statement or other offering document under Australian law (and and has sufficient experience that is relevant to the style of mineralisation will not be lodged with the Australian Securities and Investments and type of deposit under consideration and to the activity being undertaken Commission (ASIC)) or any other law. to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and This presentation does not constitute investment or financial product advice Ore Reserves’. Mr Michael Schwarz consents to the inclusion in the report of (nor tax, accounting or legal advice) and has been prepared without taking the matters based on his information in the form in which it is appears. into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation The information in this announcement is an accurate representation of the are not intended to represent recommendations of particular investments to available data and studies of the material mining project. This report includes particular persons. Recipients should seek professional advice when results that have previously been released under JORC 2012 by the Company deciding if an investment is appropriate. All securities involve risks which as “Drilling Results – Wollogorang Cobalt Project” on the 7th August 2018, “Copper Discovered at Gregjo Prospect” on 28 th August 2018 and . The include (among others) the risk of adverse or unanticipated market, financial or political developments. Company is not aware of any new information or data that materially affects the information included in this announcement and all material assumptions To the fullest extent permitted by law, Northern Cobalt, its officers, and technical parameters underpinning the Mineral Resource continue to employees, agents and advisors do not make any representation or warranty, apply and have not materially changed. express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other Historical results have been obtained from open file company report CR2002- representations contained in this presentation. No responsibility for any errors 0102 lodged with the Department of Primary Industries and Resources, NT. or omissions from this presentation arising out of negligence or otherwise are https://geoscience.nt.gov.au/gemis/ntgsjspui/handle/1/3 accepted. This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Northern Cobalt. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to
CORPORATE OVERVIEW Capital Structure 13 th November 2018 P A G E 3 Ordinary Shares (m) 50.8 Len Dean Chairman Market Capitalisation (A$m) – 10 cents $5.1 Metallurgist, experienced ASX Chairman BHP Cash (A$m) ( 28/9/2018 ) $2.2 Marketing Director Iron Ore and Group General Manager Minerals Marketing. MD of India’s largest Enterprise Value ($Am) $2.9 listed Iron Ore Company. Over 50 years industry Options ($0.20/sh, 14/9/19) (m) 6.3 experience. Options ($0.25/sh, 6/9/21) (m) 5.8 Options ($0.25/sh, 21/3/21) (m) 6.5 Michael Schwarz Managing Director Unlisted rights (m) 2.5 Michael has over 20 years’ senior experience in mineral Performance Shares - Class A (m) 9.6 exploration spanning industry and government as a Performance Shares - Class B (m) 3.6 geologist and in senior management. Michael was previously Managing Director of Monax Mining Performance Shares on JORC Code Project Milestones Class A: upon 6,000t contained Co equivalent (ASX:MOX) and has held Directorships with several ASX Class B: upon 15,000t contained Co equivalent listed exploration companies. Duncan Chessell Director ASX SX : : N27 27 Project vendor representative (Coolabah Group) with 20+ years experience in business and oil, gas and mineral exploration. BSc, MAusIMM, GAICD. Andrew Shearer Director Resource Analyst with PAC Partners (Lead Manager on IPO), Corporate Advisor, Geophysicist with a technical and corporate background. BSc (Hons), MBA
KEY POINTS – N27 PROJECTS P A G E 4 • Cobalt resource in well regarded mining jurisdiction (Australia) • Large exploration upside , secure tenure, prospective rocks • Drilling in progress on multiple Co-Cu prospects • Non-laterite, non-refractory mineralisation style leads to low Capex options • Current supply-demand in balance short term, subject to risky 75% of world production from one country (DRC) with ethical mining issues • Strong medium macro economic drivers for demand growth in cobalt to exceed known production reserves and likely supply in 2023 (UBS) • Thermal stability of lithium-ion batteries relies on significant cobalt component which due to physical properties is very difficult to eliminate
KEY POINTS – COBALT PRICE P A G E 5 THREE MAIN FACTORS AFFECTING THE COBALT PRICE Short term oversupply due to: 1. Increase in capacity from major producers in the DRC 2. Unsustainable increase in unethical artisanal production (up to 40,000 tpa) 3. Changes to Chinese subsidy regimes for EV’s
KEY POINTS – COBALT DEMAND P A G E 6 INCREASE IN CAPACITY FROM THE DEMOCRATIC REPUBLIC OF CONGO (DRC) • Glencore has ramped up production capacity from it’s existing Katanga and Mutanda mines to capitalise on the increased cobalt price • However, the Glencore Katanga Mine has halted cobalt sales due to high uranium (1472 tonnes) • Many of the large DRC mines only have a limited amount of capacity left in the short term • Many of the other higher CAPEX projects (laterite and sulphide) worldwide are going to find it difficult to get funds for development in the current climate • Due to the spike in the cobalt price artisanal miners have flocked to the DRC in a “gold rush” style scenario and have added up to 40,000 tpa supply of cobalt to the Chinese refineries • This additional supply is expected to be short lived and unsustainable
KEY POINTS – COBALT DEMAND P A G E 7 CHANGES TO THE CHINESE ELECTRIC VEHICLE (EV) SUBSIDY SCHEME FOR 2018 1. Range based targets to encourage automakers to produce longer range vehicles: • vehicles with driving range below 150 km will not receive subsidies, • vehicles with 300 km of driving range will get the current electric vehicle subsidies, • ranges over 400 km have higher subsidies. 2. battery power / weight requirements have been increased, increased from 90 wh/kg to 105 wh/kg. • They also only apply the full subsidy for vehicles with 140 wh/kg batteries, again pushing for better electric vehicles. 3. power consumption requirements have been increased, pushing for more efficient vehicles 4. In 2016, China outlined that its subsidies for new energy vehicles will end by 2020 and that they will drop 20% each year until 2019, when they will decrease 40% based on 2016 levels, which will then completely end the subsidies. • A number of major Chinese car manufacturers have lost the government subsidy on some models in their current line of EV’s making these models less competitive. • Production of these models has been restricted impacting the demand for EV batteries until new models meeting the new governments subsidy requirements can be brought online.
CHINESE MANUFACTURERS ARE ADAPTING TO P A G E 8 THE NEW SUBSIDY STRUCTURE
Recommend
More recommend
