For personal use only - Home - Australian Securities ... General Mining Announcement (2015.08.04)...
Transcript of For personal use only - Home - Australian Securities ... General Mining Announcement (2015.08.04)...
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GALAXYRESOURCESLIMITEDBMICathodes2017Conference
October 2017ASX:GXY
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Slide 2[xx]GalaxyResourcesLimited(ASX:GXY)
Disclaimer
ThisdocumentcontainsforwardlookingstatementsconcerningtheprojectsownedbyGalaxy.Statementsconcerningminingreserves andresourcesmayalsobedeemedtobeforwardlookingstatementsinthattheyinvolveestimatesbasedonspecificassumptions.Forward-lookingstatementsarenotstatementsofhistoricalfactandactualeventsandresultsmaydiffermateriallyfromthosedescribedintheforwardlookingstatementsasaresultofavarietyofrisks,uncertaintiesandotherfactors.Forward-lookingstatementsareinherentlysubjecttobusiness,economic,competitive,politicalandsocialuncertaintiesandcontingencies.ManyfactorscouldcausetheCompany’sactualresultstodiffermateriallyfromthoseexpressedorimpliedinanyforward-lookinginformationprovidedbytheCompany,oronbehalfof,theCompany.Suchfactorsinclude,amongotherthings,risksrelatingtoadditionalfundingrequirements,metalprices,exploration,developmentandoperatingrisks,competition,productionrisks,regulatoryrestrictions,includingenvironmentalregulationandliabilityandpotentialtitledisputes.ForwardlookingstatementsinthisdocumentarebasedonGalaxy’sbeliefs,opinionsandestimatesofGalaxyasofthedatestheforwardlookingstatementsaremade,andnoobligationisassumedtoupdateforwardlookingstatementsifthesebeliefs,opinionsandestimatesshouldchangeortoreflectotherfuturedevelopments.TherecanbenoassurancethatGalaxy’splansfordevelopmentofitsmineralpropertieswillproceedascurrentlyexpected.TherecanalsobenoassurancethatGalaxywillbeabletoconfirmthepresenceofadditionalmineraldeposits,thatanymineralizationwillprovetobeeconomicorthataminewillsuccessfullybedevelopedonanyofGalaxy’smineralproperties. Circumstancesormanagement’sestimatesoropinionscouldchange.Thereaderiscautionednottoplaceunduerelianceonforward-lookingstatements.Dataandamountsshown inthisdocumentrelatingtocapitalcosts,operatingcosts,potentialorestimatedcashflow andprojecttimelinesareinternallygeneratedbestestimatesonly.AllsuchinformationanddataiscurrentlyunderreviewaspartofGalaxy’songoingoperational,developmentandfeasibilitystudies.Accordingly,Galaxymakesnorepresentation astotheaccuracyand/orcompletenessofthefiguresordataincludedinthedocument.NotForReleaseinUSThispresentationdoesnotconstituteanofferofsecurities forsaleinanyjurisdiction,includingtheUnitedStates.AnysecuritiesdescribedinthispresentationmaynotbeofferedorsoldintheUnitedStatesabsentregistration oranexemptionfromregistrationundertheUnitedStatesSecuritiesActof1933,asamended,followingthepreparationofrequireddocumentsandcompletionofrequiredprocessestopermitsuchofferorsale.
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CONTACTINFORMATIONLevel4/21Kintail Road,Applecross,WesternAustralia6153POBox1337,CanningBridgeLPOApplecrossWA6953T:+61892151700F:+61892151799E:[email protected]
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Slide 3[xx]GalaxyResourcesLimited(ASX:GXY)
GalaxyOverview
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Slide 4[xx]GalaxyResourcesLimited(ASX:GXY)
CompanyHighlights
§ Oneofthepremierglobal lithiumopportunitieswithproductionoperations andaworldclassassetdevelopmentpipeline
§ OperationsrestartedatMtCattlinwithexpandedcapacity withabilityto generatestrong cashflowsin2017,positioning Galaxyasamajorglobalsupplierofhighqualitylithium
§ DiversifiedprojectportfoliowithbothhardrockandbrinebasedlithiumassetsacrossAustralia,ArgentinaandCanada
§ RevisedDFSatflagshipSaldeVidaProjectinArgentinasupportslowcost,longlifeprojectwithrobusteconomics;development teamconfirmed andfieldworkadvancing
§ JamesBayinCanada,isahighqualitydevelopmentasset, currentlyundergoingfeasibilitystudywork,withpotentialtoallow GalaxytosupplyNorthAmericanandEuropeanmarketsinthefuture
§ HighlycredentialedManagementandBoardwithastrongnetworkofdownstreamandend-usercustomersinthegloballithiummarkets
§ Robustlithiummacrotrendswithsurgingdemandfromlithiumionbatteryapplicationsandalaggedsupply-sideresponse
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MtCattlinOperations– Australia
EnroutetoSaldeVidalithiumproject– Argentina
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Slide 5[xx]GalaxyResourcesLimited(ASX:GXY)
CorporateSnapshot
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FinancialInformation(2017.10.06)Share price A$3.11
52weekhigh/low A$3.50/A$1.43
Numberofshares(undiluted)1,2 401.3m
MarketCapitalisation A$1,254.3m
Cash (30-Jun-17) A$40.4m
Debt(30-Jun-17) A$13.1m
Netcash(30-Jun-17) A$27.3m
Enterprise Value A$1,227.0mSource:IRESSNotes:1 Excludes18.6munlistedoptionsonissuewithvariousexpirydatesandwithexercise
pricesbetweenA$0.365andA$2.78and2munlistedwarrantswithexpiry24-Nov-18andanexercisepriceofA$2.075
2 Excludes5.0mshareappreciationrights
TheleadingglobalpureplaylithiumcompanylistedontheASX,withsignificantinstitutionalparticipationandstrongliquidity
Investor %
BlackrockGroup 6.5%
Boardand Management 2.5%
Top20shareholders 38.6%
TopShareholders(2017.08.31)
SharePricePerformance(1year)
ShareholderTypeandGeographicalBreakdown(2017.08.31)
42.2%
4.3% 2.5% 3.6%
18.9%
28.5%
Institutional BrokersBoard&Management CorporatestakeholdersPrivateinvestors Other
33.7%
15.2% 8.2% 7.2%
5.0%
30.8%
Australia/NewZealand NorthAmericaUnitedKingdom EuropeAsia NotReported
- 3691215182124
- 0.51.01.52.02.53.03.54.0
Oct-16 Jan-17 Apr-17 Jul-17 Oct-17
Volume(m)Shareprice(A$)
Volume GXY
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Slide 6[xx]GalaxyResourcesLimited(ASX:GXY)
DiverseAssetPortfolio
Withaportfolioofbothhardrockandbrinebasedlithiumassets,GalaxyiswellnetworkedwithkeycustomersintheAsianlithiummarket
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Lithiumvalue-addingproductionheavilyconcentratedinAsia–currentandfuturecapacityanticipatedtocontinuetobedominatedbyChina
§ Currentcommissionedandplannedcapacity– 85%stillexpectedtobeinAsia
§ Chinaproduces>50%ofgloballithiumcathodes
§ Galaxyuniquelypositioned,havinghistoricallyserved40+customersinthebatterymaterialsasaresultofitsformerJiangsuoperations
MtCattlin,WA,Australia–HardRock
SaldeVida,Salta&Catamarca,Argentina– Brine
JamesBay,Quebec,Canada– HardRock
§ 100%owned§ Lithiumhardrock
development§ Resourceof23Mtat1.2%Li2O§ Extensivedrillingprogram
completedinAugust;DFSunderway
§ 100%owned§ Lithiumandpotashbrineproject,1.1MtLCE,
4.2MtKCl§ FormalrevisionofDFScompletedinQ32016§ 2productionwellcomplete;financingand
offtakediscussionsadvancing
§ 100%owned§ Resourceof16Mtat1.08%Li2Oand5.7Mlbs
Ta2O5
§ Throughputcapacityexpandedto1.6Mtpa§ Plantrampupandcommissioningcomplete§ c.56ktoflithiumconcentrateproducedinH1
of2017
Source:BloombergnewEnergyFinance
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Slide 7[xx]GalaxyResourcesLimited(ASX:GXY)
Operationshavenowreachedsteadystatewithramp-upandcommissioningoftheplantcompletedinApril2017– movingintocommercialproduction§ MtCattlinisaspodumene (lithiumconcentrate)andtantalum
miningoperation,locatedinRavensthorpe,WesternAustralia
― 100%ownedbyGalaxy
§ Onlynewindependentproducerandsupplieroflithiumconcentrateinthemarketglobally,sincetherecentlargeandsustainedincreasesinlithiumprices
§ Improvedflowsheetdesignandupgradedprocessequipmentdrivingsubstantialefficiencygainsandhigherproductquality
― Expandedthroughputcapacityof1.6Mtpa,targeting160ktofconcentrateproductionin2017
― Improvedspodumenegrades(5.77%Li2OachievedonQ22017salesvolumes)
― Lowmicacontent(1.96%achievedonQ2 2017salesvolumes)
― Initialtargetof50%productionyield(61%achievedinJune)
§ SignificantexpectedcashflowstoGalaxyfromMtCattlin
― Highmarginoperationwithcurrentoperatingcosts
― Cashflowsutilisingc.A$200m+inunusedtaxlosses
― Lowsustainingcapexrequirement
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Location
Ravensthorpe,WA,Australia
ResourceAndProductionCapacity1
Resourcecategory Tonnes Li2O% Ta2O5ppm
Measured 2,540,000 1.20 152
Indicated 9,534,000 1.06 170
Inferred 4,343,000 1.07 132
Total 16,416,000 1.08 157
Productioncapacity 1.6Mtpa
Source:GeneralMiningAnnouncement(2015.08.04)Note:1. Galaxyunderstandsthatallmaterialassumptionsunderpinningtheproductiontarget
andfinancialinformationsetoutintheGeneralMiningannouncementreleasedcontinuetoapplyandhavenotmateriallychanged
MtCattlin– OverviewF
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Slide 8[xx]GalaxyResourcesLimited(ASX:GXY)
SaldeVida– Overview
Oneoftheworld’slargestandhighestqualityundevelopedbrinedepositswithsignificantexpansionpotential
Reservecategory
Timeperiod
TonnesLitotalmass
TonnesequivalentLi2CO3
TonnesKtotalmass
Tonnesequivalent
KCl
Proven 1-6 34,000 181,000 332,000 633,000
Probable 7-40 180,000 958,000 1,869,000 3,564,000
Total 40years 214,000 1,139,000 2,201,000 4,197,000
Source:RevisedSaldeVidaDFS– August2016.Assumes500mg/LLicutoff
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SaldeVidaReserveEstimates
Location
SaldeVida,Salta&Catamarca,Argentina
§ Apremierlithiumandpotashbrinedevelopmentproject
― 100%ownedbyGalaxyandfullypermitted
― LocatedbetweenSaltaandCatamarcaProvinceinArgentina,inanareathatisknownasthe‘LithiumTriangle’
§ Lithiumtrianglehometo>60%ofglobalannuallithiumproduction
― SaldeVidalocatedonthesamesalar asFMC’sFenixoperations
§ RevisedDFSreaffirmsthetechnicalsuperiorityofSaldeVidaandpotentialforahighlyprofitableoperation
― Estimatedpost-taxNPV8%real ofUS$1.4bn
― PotentialtogenerateaverageannualrevenuesofUS$354m
― PotentialtogenerateaverageannualoperatingcashflowofUS$273mpre-tax(US$182mpost-tax)
§ Largemineralreservestosupportlonglifeannualproductionof25ktpaofbatterygradelithiumcarbonateand95ktpaofpotash
§ Brineprojectshavetheadvantagesofloweroperationalcostsandgreaterabilitytoexpandproductionfacilities
§ Discussionsadvancingwithofftakers andpotentialstrategicpartners
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Slide 9[xx]GalaxyResourcesLimited(ASX:GXY)
JamesBay– Overview
Theprojectprovidesavaluableoptionforcapitalisingonlongtermlithiumdemandgrowth, andthepotentialtosupplytheNorthAmericanmarket§ LithiumpegmatiteprojectlocatedinJamesBay,Québec,Canada
― Strategicallylocatedinaminingfriendlyjurisdictionwithalowcostofenergyandgoodinfrastructurenearby
§ Explorationanddevelopmentprogramunderway,includesac.33,000m
§ diamonddrillingprogramaimingtoextendexistingresources andupgrademineralresourcestoreserves
§ Feasibilityworkhascommenced;studyworkexpectedtotake6-9monthsandwilltakeadvantageofMtCattlinexperiencetodrawsynergiesforengineeringandprocessflowsheetdesign
§ FeasibilityworkwillincludemetallurgicaltestingandanevaluationforapotentialdownstreamconversionfacilityinQuébec
― Metallurgicaltestworkconductedin2012producedspodumenegradesof6.53%Li2Oata75%lithiumrecoveryrate
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JamesBay,Quebec,Canada
JamesBayLocation LongSectionofJamesBayPegmatiteSwarm
Resourcecategory Tonnes Li2O%
Indicated 11,750,000 1.30
Inferred 10,470,000 1.20
Total 22,220,000 1.28
CurrentJamesBayResourceEstimate
Source:ReferGalaxyResourcesAnnouncement(5July2012)
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Slide 10[xx]GalaxyResourcesLimited(ASX:GXY)
MarketReview
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Slide 11[xx]GalaxyResourcesLimited(ASX:GXY)
NEVmodel H1 2017 Jul &Aug 2017
BEVs 176.1k 104.0k
PHEVs 36.1k 26.0k
Total 212.2k 130.0k
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LithiumSectorGrowthDominatedByChina
Globally,Chinaisthelargestconsumeroflithiumchemicals(c.87ktLCEin2016vsJapanc.25kt/SouthKoreac.20ktLCEin2016),drivenbygrowthinNewEnergyVehicle(NEV)sector
Source:CAAM,CJSecuritiesNotes:1. BEVs=BatteryElectricVehicles,PHEV=Plug-InHybridElectricVehicles2. Assumedaveragesizeoflithiumionbatteryof50kWhandLCEdemandperEVpf0.8kg/kWh
81%
19%
77%
23%
BreakdownofNewEnergyVehicleProductioninChina
2015totalproduction:379kNEVs
2016totalproduction:517kNEVsAnnual
growthratec.36%
§ “Mediumtolongtermplanfortheautoindustry”(2025plan):detailshowChinaplanstostrengthenitsdomesticautoindustryandexpandglobalexportsofNEVs
— Forecastproductionof2millionNEVsp.a.andtargetedNEVstockof5millionvehiclesin2020
— Targeted20%NEVpenetrationin2025(c.7millionNEVsp.a.outoftotalprojectedproductionof35millionvehicles)
— At7millionvehiclespa,implies additionaldemand280kt2LCEby2025
§ Supportivepolicy: ANEVquotaschemeforallautomanufacturersinChina,economicincentivesfortheconsumerandchangesinconsumerpreferencescounteringsubsidyreductioneffect,supportforgrowthandinvestmentinlithiumbatterysector
1
2017YTDNEVUnitProduction1
2017YTDNEVProduction@342kYTDYoYgrowthof33%
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Slide 12[xx]GalaxyResourcesLimited(ASX:GXY)
52%
6% 6%
36% 39%
5% 5%
51%
19%
3% 4%
74%
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Lithium-IonBatteryConsumptionMix
ChinaLithium-IonBattery(“LiB”)Consumption
Source:CJSecurities
2015 2016 2017E
Thelithium-ionbatteryapplicationmixtransitioningfrombeingmajoritydominatedbyconsumerelectronicstonewenergyvehicleapplications
LCOMajorityShare LFP&NCMEqualShare LFP&NCMDominantShare
CathodeChemistryTransition
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Slide 13[xx]GalaxyResourcesLimited(ASX:GXY) 13
NEVSubsidiesInChina
ANEVquotatradingscheme,economicincentivesfortheconsumerandchangesinconsumerpreferencescounteringsubsidyreductioneffectRevisedSubsidyPolicyForNEVsForThePeriod2016-2020
§ SubsidiesforpassengerNEVsreducedby~20%in2017(comparedto2016subsidies)
§ Subsidiesforlargecommercialvehiclesreducedby~40-70%in2017(comparedto2016subsidies)dependingonvehicletypeandsize
— SubsidyceilingsintroducedoncommercialNEVsbasedonthelengthofvehicle
§ AdditionalsubsidiesawardedbyLocalGovernmentsrestrictedto50%ofthevalueofCentralGovernmentincentives
§ SubsidyfundingnowawardedafterthesaleofNEVs,previouslybefore- changestosubsidypoliciesareexpectedtotriggeramoretransparent,efficientandcompetitivemarketinbatterymakingandautomanufacturing
§ AlternativeeconomicincentivesandtechnologythresholdsarebeingintroducedtocontinuetopromotetheuptakeofNEVs
Drivingrange(DR)
Autotype Energydensity DR≥50km 100km≤DR<150km 150km≤DR<250km DR≥250km
BEV 90-120Wh/kg RMB20k(US$2.9k) RMB36k(US$5.2k) RMB44k(US$6.4k)
BEV >120Wh/kg RMB22k(US$3.2k) RMB39.6k(US$5.7k) RMB48.6k(US$7.4k)
PHEV na US$3.5k
2017SubsidiesForPassengerNEVs
Source:Deutsche
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Slide 14[xx]GalaxyResourcesLimited(ASX:GXY) 14
NEVAdoptionNotReliantOnSubsidies
ChinacontinuesitsleadinginvestmentintoNEVsandhasintroducedanumberofpolicymeasuresaimedatcontinuingtoencourageuptakeGovernmentPolicy&Investment
ChinaLicensingRestrictions
Shanghailicenseplatesusedtodistinguishbetweencartypes
Blueplates:ICEvehicles Greenplates:NEVvehicles
§ Certificateofentitlement(COE)requiredforcarpurchase
— CostofaCOEinShanghaiforaninternalcombustionengine(ICE)vehicle:US$15kforanindividual;US$30kforacompany
§ InBeijing(BJ)andShanghai(SH):
— TherighttopurchaseanICEvehicleissubjecttoalottery
— Successrates:4%(SH);0.2-0.3%(BJ)
§ DrivingrestrictionsforICEvehicles
§ NONEOFTHEABOVERESTRICTIONSFORPROSPECTIVENEVOWNERS
§ Committeddomesticinvestment– Committedbuildoutofanationwidecharginginfrastructuretosupport5millionNEVsby2020
§ MandatoryNEVtargets– GovernmentinitiatingcreditsystemencouragingautomanufacturerstotargetNEVproductionpercentagesof8%,10%and12%overthenext3years
§ LimitingICEproduction– Penaltiesformanufacturersexceedingcertainproductionthresholds
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Slide 15[xx]GalaxyResourcesLimited(ASX:GXY)
FutureDemandGrowth– NotJustChina&EVs
Lithiumdemandprojectedtogrow4xfromhistoricalc.200ktLCEperannumtoover800ktLCEby2025
Lithiumindustryneedstobringonline600kt+ofincrementalsupply(equiv.circa+70ktgrowthpa)tomeetdemandbalance– majorchallengesincludenumberof“shovel-ready”projectstofundintoproductionandcapitalavailabletofinancethoseprojects
-
200
400
600
800
1,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025NonLiBapplications LiBapplications
LithiumCarbonateDemand(kt LCE)
Source:UBS
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§ ROWelectricvehiclesalesexpectedtocloselymatch(*UBS)China’s7msalesby2025(totalimplied560kt+LCEparequired,basedon50KWh/vehicle)
§ Energystoragewillalsostarttofactorinfuturegrowthofdemand– currentestimatesat+/- 50ktLCEpaby2025
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Slide 16[xx]GalaxyResourcesLimited(ASX:GXY)
ImpactOnRequiredCathodeCapacity
ContinuedinvestmentincathodeproductioncapacityexpansionrequiredtofacilitategrowthalongsidetheexpecteddemandgrowthforLiB applications
ImpliedCathodeDemand(BasedOnBatteryGradeLCE)1
16
Source:UBS,BenchmarkMinerals,CompanyDisclosure,Bloomberg,CJSecuritiesNotes:1. BatterygradeLCEdemandbasedonUBSestimates;ImpliedcathodevolumeassumesthattheaverageLCEintensitypertonne ofcathodeis0.42. LFP=LithiumIronPhosphate,NCM=NickelCobaltManganese
ChinaNEVCathodeMixTransitioningFromLFPtoTernary
By2020,projectedNEVcathodemixtoreachanestimated85%/15%mixbetweenternaryandLFP
28%
72%
42%
58% 2015 2016 2017E 48% 52%
c.90 c.160
c.730
c.225c.400
c.1825
2016 2020 2025BatterygradeLCE(kt) Impliedcathodevolume(kt)
Substantialinvestmentrequiredtomeetprojecteddemandforlithium-ionbatteryapplications
NCM LFP
§ Demandgrowthinlithiumionbatteryapplicationstoplacestrongpressureonsupplyofcathodematerials
— Majorityofnewexpansionsarefocusedonhigh-endcathodesforautomotivebatteries
§ Duetoenhancedenergydensitydemands,growthinautomotivebatterydemandisdrivingternary(NCM)andNCAcathodetobecometheincreasinglydominantchemistry
§ ConsumerelectronicstoupholddemandforLCO,potentialswitchtoternarychemistriesifcobaltsupplybecomesproblematic
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Slide 17[xx]GalaxyResourcesLimited(ASX:GXY)
1GWhofexistingcapacity1
1GWhofplannedcapacity1
HUNGARY
SWEDEN
GERMANY
CAPACITYUNDISCLOSED
EUROPE CAPACITY
UNDISCLOSED
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GrowthInitiativesThroughoutTheValueChain
Structuralchangesinelectrificationoftransportationandcontinuedpolicysupportgloballyisacceleratinginvestmentalongthelithiumvaluechain
PlannedConstruction/ExpansionOfSelectedGigafactories
Source:BenchmarkMinerals,CompanyDisclosure,Bloomberg,CJSecurities
AnnouncedExpansionsofCathodeProducers
€400mcommitmenttobuildcathodeproductionfacilitiesinEurope
€300minvestmentcommittedtocathodecapacity
¥4bninvestmenttoincreasecathodecapacitybyc.12ktpa
Planstoexpandcapacityfrom8ktpain2016to31ktpain2020,mainlyforNCM
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Slide 18[xx]GalaxyResourcesLimited(ASX:GXY) 18
GlobalInvestmentInLiB Manufacturing
§ ChinavsROW:Chinahasatotalc.160GWhofcapacityvsROWaggregatecapacityofc.120GWh
—Represents57%ofglobalcapacityannouncedtodate
§ LCERequired: Iffullyutilisedtoday,atotalof280GWhcapacitywilluse224ktLCEofbatterygradematerialvsonlyc.90ktLCEofmaterialthatwasusedinbatteriesin2016
§ CapitalInvestment: UsingtheTeslaGigafactory capitalintensityofc.US$150m/GWh,anestimatedUS$40B+ofcapitalinvestedtodatetobuildoutgloballithiumbatterymanufacturingcapacity
Significantinvestmentisbeingmadeintoincreasingglobalbatterymanufacturingcapacity,drivenprimarilybyChina
- 20
40
60
80
100
120
140
160
180
China Korea UnitedStates Japan Others
GWh/year
Comissioned UnderConstruction Announced
GlobalBreakdownofLithium-IonBatteryProjectCapacity
Source:BenchmarkMinerals,BloombergNewEnergyFinance
Capacityexpectedtogrow2xfrom2017Elevelsto2020
28.2GWh64.8GWh
102.8GWh
2015 2016 2017E
Lithium-IonBatteryManufacturingCapacity
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Slide 19[xx]GalaxyResourcesLimited(ASX:GXY)
- 20,00040,00060,00080,000100,000120,000140,000160,000180,000
2015
Start-
China
Price
Big3-
Li2C
O3
price
Lithium
Carbon
atePric
e
Lithium
Hydroxi
dePric
e
GrossPricing/t
NetPricing/t
40000
80000
120000
160000
200000
Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 BGLi2CO3 BGLiOH
Impact&TrendsOnLithiumPricing
19
Continuedstrengthinlithiumpricesisaclearindicationthatdemandgrowthislikelytobeoutpacingsupplysidegrowth
Source:CLA,CompanyEstimates,CJSecurities
HistoricalLithiumPrices(RMB/t) HistoricalLithiumPricesLTM(RMB/t)
LithiumCarbonatePriceComparison(RMB/t)– August2017
US$6.1K
US$19.6K1 US$17.8K1US$14.0K
§ SubstantialgrowthindemandforlithiumchemicalsunderpinnedbyasignificantexpansioninNEVuptakeinChina -Li2CO3 pricesareup29%versus2016year-end
§ Chinadomesticlithiumproductionin2016was87ktLCEvs70ktLCEin2015– JantoJuly2017alreadyrecorded101%increaseto73ktLCE oflithiummaterialimports(lithiumconcentrate,carbonate,andchloride;excludingDSO)vssameperiodin2016
§ 8%retractioninLiOH pricessince2016-end– mostgrowthdependentonex-ChinademandfromJapan(NCM-811/NCA)
100,000
140,000
180,000
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 BGLi2CO3 BGLiOH
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Slide 20[xx]GalaxyResourcesLimited(ASX:GXY) 20
Structuralchangesinelectrificationoftransportationandcontinuedpolicyandregulationsupportisacceleratinginvestmentalongthelithiumvaluechain
Otherupstreamresourcesintegratedwithdownstream
conversion
Lithium-IonBatteryValueChain
DownstreamUpstream
RawMaterials LithiumChemicalsConverters
CathodeProducers LiB Manufacturers
Limitedindependentfeedstocktoday– majorconvertersinvestedintospodumene projects
Majorexpansionsplannedovernext3yearsfromexistingproducers,
estimatedtoadd100kt+LCEinconversioncapacity
Chinacathodecapacityrapidlyexpanding– mixalsotrending
awayfromLFPtoNCMcathodechemistries
Certainproducerstargetingupto100ktofexpanded
cathodematerialproductioncapacityby2020
Batterymanufacturingcapacityalsoexpandingtomeetrapiddemandgrowth
fromNEVsector
NEVLiB productionexpectedtoatleastdouble
2017levelstoover200GWhby2020
DownstreamCapacityExpansionInChina
Greenbushes
MtMarion
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Slide 21[xx]GalaxyResourcesLimited(ASX:GXY) 21
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Slide 22[xx]GalaxyResourcesLimited(ASX:GXY)
Competent&QualifiedPersons’Statement
CompetentPersonStatement
SaldeVidaAnyinformationinthisreportthatrelatestorelatestotheestimationandreportingoftheSaldeVidaProjectMineralResourcesandMineralReservesisextractedfromthereportentitled“SalDeVida:RevisedDefinitiveFeasibilityStudyConfirmsLowCost,LongLifeandEconomicallyRobustOperation”createdon22August2016whichisavailabletoviewon www.galaxylithium.com andwww.asx.com.au.TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformationincludedinthe originalmarketannouncementandthatallmaterialassumptionsandtechnicalparametres underpinningtheMineralResourcesandMineralReservesestimatesintherelevantmarketannouncementcontinuetoapplyandhavenotmateriallychanged.TheCompanyconfirmsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncement.
JamesBayTheinformationinthisreportthatrelatestorelatestotheestimationandreportingoftheJamesBayexplorationresultsisextractedfromtheannouncemententitled“JamesBayUpdate:DrillingCampaignDeliversThick,HighGradeResults ”createdon27June2017whichisavailabletoviewon www.galaxylithium.com andwww.asx.com.au.TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformationincludedintheoriginalmarketannouncementandthatallmaterialassumptionsandtechnicalparametersunderpinningtheexplorationresultsintherelevantmarketannouncementcontinuetoapplyandhavenotmateriallychanged.TheCompanyconfirmsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncement.TheinformationinthisreportthatrelatestoMineralResourcesattheJamesBayProjectisbasedonworkcompletedbyMr JamesMcCann,whoisaMemberoftheOrdredesGeologues duQuebec,aRecognised OverseasProfessionalOrganisation.Mr McCannisafulltimeemployeeofGalaxy,andhassufficientexperiencewhichisrelevanttothestyleofmineralisation andtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2004editionofthe ‘AustralianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.Mr McCannconsentstotheinclusioninthereportofthemattersbasedonhisinformationintheformandcontextitappears.ThisinformationwaspreparedandfirstdisclosedundertheJORCCode2004andithasnotbeenupdatedsincetocomplywithJORCcode2012onthebasisthattheinformationhasnotmateriallychangedsinceitwaslastreported.
MtCattlin
TheinformationinthisreportthatrelatestorelatestotheestimationandreportingoftheMtCattlinProjectMineralResourcesandMineralReservesisextractedfromthereportentitled“MtCattlinUpdate:RevisedResource&ReserveStatement”createdon4August2015publishedbyGeneralMiningLimited(ASX:GMM)whichisavailabletoviewonwww.asx.com.au.TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformationincludedintheoriginalmarketannouncement madebyGMM.TheCompanyunderstandsthattheformandcontextinwhichtheCompetentPerson’sfindingsarepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncement.
CautionRegardingForwardLookingInformationThisdocumentcontainsforwardlookingstatementsconcerningGalaxy.Forward-lookingstatementsarenotstatementsofhistoricalfactandactualeventsandresultsmaydiffermateriallyfromthosedescribedintheforwardlookingstatementsasaresultofavarietyofrisks,uncertaintiesandotherfactors.Forward-lookingstatementsareinherentlysubjecttobusiness,economic,competitive,politicalandsocialuncertaintiesandcontingencies.ManyfactorscouldcausetheCompany’sactualresultstodiffermateriallyfromthoseexpressedorimpliedinanyforward-lookinginformationprovidedbythe Company,oronbehalfoftheCompany.Suchfactorsinclude,amongotherthings,risksrelatingtoadditionalfundingrequirements,metalprices,exploration,developmentandoperatingrisks,competition,productionrisks,regulatoryrestrictions,includingenvironmentalregulationandliabilityandpotentialtitledisputes.ForwardlookingstatementsinthisdocumentarebasedonGalaxy’sbeliefs,opinionsandestimatesofGalaxyasofthedatestheforwardlookingstatementsaremadeandnoobligationisassumedtoupdateforwardlookingstatementsifthesebeliefs,opinionsandestimatesshouldchangeortoreflectotherfuturedevelopments.
NotForReleaseintheUnitedStatesThisannouncementhasbeenpreparedforpublicationinAustraliaandmaynotbereleasedintheUnitedStates.Thisannouncementdoesnotconstituteanofferofsecuritiesforsaleinanyjurisdiction,includingtheUnitedStatesandanysecuritiesdescribedinthisannouncementmaynotbeofferedorsoldintheUnitedStates absentregistrationoranexemptionfromregistrationundertheUnitedStatesSecuritiesActof1933,asamended.AnypublicofferingofsecuritiestobemadeintheUnitedStateswillbemadebymeansofaprospectusthatmaybeobtainedfromtheissuerandthatwillcontaindetailedinformationaboutthecompanyandmanagement,aswellasfinancialstatements.
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