White Cliff Minerals Restricted (ASX: WCN) – Buying and selling Halt

Overview

Lithium Universe (ASX:LU7) is devoted to closing the ‘Lithium Conversion Hole’ in North America by growing a mine-to-battery-grade lithium carbonate technique in Québec, Canada. Our mission is to help the provision chain wants of unique gear producers (OEMs), notably within the automotive sector, by changing spodumene provide into lithium chemical substances for EV battery vegetation North America.

Our enterprise mannequin focuses on changing spodumene provides below “take or pay” agreements with OEMs. These agreements embody protecting pricing mechanisms, reminiscent of flooring and ceiling costs, to make sure secure margins and mitigate market volatility. This method ensures our LU7 refinery’s payback whereas offering OEMs with a dependable and sustainable provide of lithium chemical substances.

The ’Lithium Conversion Hole’

North America anticipates a surge in battery manufacturing, with over 20 main producers planning to deploy an estimated 1,000 GW of battery capability. These are corporations reminiscent of Basic Motors, LG Power Answer, Ford, Energy Co, Northvolt, Tesla, AESC, Toyota and Honda. Assuming the deliberate battery manufacturing capability of 1,000 GW by 2028, utilizing a ratio of 850 g lithium carbonate equal (LCE) per KWh, the corporate estimates that 850,000 tons of LCE each year will likely be required to fulfill demand in North America.

On the provision aspect, Canada has surpassed China to say the highest spot in BloombergNEF’s World Lithium-Ion Battery Provide Chain Rating, a complete annual analysis of 30 international locations’ potential to develop safe, dependable, and sustainable lithium-ion battery provide chains. Québec has been established as one of the vital potential areas with over 40 corporations devoted to lithium exploration and growth. The cumulative lithium useful resource in simply Québec exceeds 500Mt at +1 % lithium oxide throughout eight distinct tasks, which has elevated over one hundred pc throughout the final 12 months. Many corporations have plans to develop mines and concentrating services to provide spodumene focus.

Determine 1: Projected US EV Battery Demand and Introduced Battery Manufacturing Capability (2022-2032)

[Source: US Department of Energy, January 2023]

Spodumene focus must be transformed to battery-grade lithium carbonate or hydroxide for use within the manufacturing of cathode supplies for lithium-ion batteries. At present, there are not any operational converters in North America and the corporate estimates roughly solely 100,000 tons of deliberate arduous rock converters are slated for development within the area. The area seeks to lower dependence on Chinese language lithium converters, aligning with each industrial and nationwide safety targets. Canada, acknowledging the importance of power safety, has intensified efforts to cut back Chinese language involvement within the sector as a part of a “decoupling” or “de-risking” technique, mirroring the actions taken by the US.

The ’Lithium Dream Crew’

The corporate’s technique includes assembling a seasoned workforce of lithium consultants famend for quickly delivering profitable tasks, dubbed the ‘Lithium Dream Crew’, boasting in depth experience in each arduous rock lithium extraction and downstream operations, all inside a single firm.

Lithium Universe is headed by the chairman, Iggy Tan, who is taken into account a pioneer within the trendy lithium trade. Over 20 years in the past, Tan was one of many first Australian mining executives to acknowledge the potential of the rising lithium-ion battery trade. He led Galaxy Sources and constructed the Mt Cattlin spodumene mission (137,000 tpa of spodumene product) and the downstream Jiangsu lithium carbonate mission (with a capability of 17,000 tpa). This was the primary large-scale vertically built-in, mine-to-battery-grade lithium carbonate mission on the planet.

Becoming a member of Iggy on the board are Pat Scallan and Dr. Jingyuan Liu. Scallan is a seasoned veteran of the lithium trade with over 25 years of managing the world-class Greenbushes Mine. He oversaw the mine’s many expansions, growing annual output from 200,000 in 1997 to over 1.4 million tpa right this moment. Liu is extensively considered a number one technical professional within the lithium trade. He was beforehand the final supervisor of growth and applied sciences at Galaxy Sources, the place he was answerable for overseeing the development and commissioning of the Mt Cattlin spodumene mission and the world-renowned Jiangsu lithium carbonate plant. Liu has acted as a particular adviser to numerous lithium carbonate and lithium hydroxide tasks globally.

Further Dream Crew members embody: Terry Stark, who beforehand served as the final supervisor of operations for each Mt Cattlin and James Bay tasks; Roger Pover, with in depth expertise as plant supervisor at Greenbushes and Mt Cattlin; and Huy Nguyen, identified for his experience within the design and development of the Mt Cattlin mine. John Loxton, who was concerned within the development of the Jiangsu lithium carbonate plant for Hatch Engineering, has additionally joined the corporate. John Sobolewski, former CFO and firm secretary of Galaxy Sources pivotal in financing each tasks, assumes the function of chief monetary officer function at Lithium Universe, marking a major addition to the LU7 workforce’s monetary experience within the lithium area.

Lithium Carbonate Refinery

The Jiangsu lithium carbonate plant was designed to provide 17,000 tpa of battery-grade lithium carbonate. It adopted superior Western type steady course of management strategies, setting a typical for lithium refineries globally. The plant now exceeds its design capability, producing 20,000 tpa, and its battery-grade product ranks among the many trade’s most interesting. Constructed and attaining steady-state high quality was achieved inside two years of ground-breaking. Lithium Universe plans to copy the profitable design of the Jiangsu lithium carbonate plant completely, using the identical suppliers, gear and engineering agency – mitigating the second main threat. Lithium Universe has contracted Hatch Restricted to conduct the definitive feasibility research (DFS), the identical engineering firm answerable for the unique design and development of the Jiangsu lithium carbonate plant.

Lithium Universe is advancing a mine-to-battery-grade lithium carbonate technique in Canada by means of the Québec Lithium Processing Hub (QLPH). The QLPH features a multi-purpose impartial 1 Mtpa concentrator and an impartial 16,000 tpa battery-grade lithium carbonate refinery. The QLPH concentrator and lithium carbonate plant purpose to copy the confirmed success of the Mt Cattlin spodumene operation and Jiangsu lithium carbonate plant to attenuate startup and operational dangers.

Determine 2: The Firm’s proposed lithium carbonate refinery at format at Bécancour, Québec.

The corporate has efficiently executed an possibility settlement to amass a industrial property situated throughout the Bécancour Waterfront Industrial Park (BWIP) between Québec Metropolis and Montréal. The economic land secured is simply 2.5 kms to the Bécancour deep-water port, permitting the import of spodumene to the ability. The corporate is taking a major step in the direction of the manufacturing of greener battery-grade lithium carbonate on the proposed Becancour lithium refinery.

Outcomes of its preliminary feasibility research (PFS) for the Bécancour Lithium Carbonate Refinery. The PFS confirms the viability of a robust lithium conversion mission, even inside a below-average pricing setting. LU7 continues to progress full definitive feasibility research whereas offtake discussions with OEMs underway.

Monetary Modelling:

• Economically viable with wonderful pre-tax NPV8 % of roughly US$779 million
• IRR (pre-tax) of roughly 23.5 % and payback of three.5 years based mostly on;
• Worth forecast of US$1,170/t SC6 and US$20,970/t for battery grade Li2CO3
• Present spot value is approx. US$775/t SC6 and US$10,680/t for battery grade LC
• Working prices at round US$3,976/tonne; capital price estimate of US$494 million
• Anticipated annual income of approx US$383 million and EBITDA of round US$147 million
• Venture break even at round US$780 /t (SC6) and round US$14,000 per tonne LC

As an integral a part of the corporate’s DFS, Lithium Universe has initiated metallurgical testing on varied sources of spodumene. This course of includes using the movement sheet developed for the Québec Lithium Processing Hub refinery.

At present, the testing is progressing easily, and no challenges have been recognized with any of the spodumene samples. Every take a look at program is thorough and spans a number of weeks, with two full applications already concluded efficiently attaining increased than the worldwide battery grade specification of 99.5 % lithium carbonate. All impurity ranges have been effectively inside specification limits.

Administration Crew

Iggy Tan – Government Chair

Iggy Tan, a trailblazer of the fashionable lithium trade, was one of many first Australian mining executives to determine the numerous alternative throughout the rising lithium-ion battery sector when he spearheaded Galaxy Sources Restricted. Tan is seeking to replicate that success with Lithium Universe, having constructed Galaxy’s Mt Cattlin Spodumene Venture and the downstream Jiangsu Lithium Carbonate mission. He additionally acquired the James Bay Spodumene Venture in Canada and the Sal de Vida Brine Venture in Argentina for Galaxy.

When Tan began at Galaxy, the corporate’s market capitalization was lower than AU$10 million. It rose to AU$2.5 billion when the corporate merged with Orocobre Restricted in August 2021. Tan’s earlier expertise working with lithium dates again to the early Nineteen Nineties when he briefly managed the Greenbushes Lithium Mine and commissioned the primary lithium carbonate plant for Gwalia Consolidated.

Tan has over 30 years of chemical and mining expertise and has served as government director for quite a few ASX-listed corporations. He holds a Grasp of Enterprise Administration from the College of Southern Cross, a Bachelor of Science from the College of Western Australia and is a graduate of the Australian Institute of Firm Administrators. He’s at present CEO and managing director of Altech Batteries (ASX:ATC,FRA:A3Y)

Alex Hanly – Chief Government Officer

Alex Hanly has over 10 years of expertise in capital supply and operational administration for publicly listed corporations throughout the mining, oil & fuel, and manufacturing industries in Australia and Africa. During the last three years, Hanly held the function of chief government officer of ASX-listed gold firm Polymetals Sources (ASX:POL). He was answerable for the profitable IPO of the corporate, the operational administration and the environment friendly execution of the fast-track technique.

Hanly has a Bachelor of Mechanical Engineering and Grasp of Enterprise Administration specialising in world mission administration.

Patrick Scallan – Non-executive Director

Patrick Scallan’s in depth expertise within the lithium trade is a useful addition to the LGX board. With over 25 years of administration expertise on the world-class Greenbushes Mine, he’s a seasoned veteran. Greenbushes is the most important lithium arduous rock mine globally and in addition hosts the highest-grade ore physique on the planet. This makes Greenbushes a singular anomaly, as no different lithium deposit worldwide compares to it.

Scallan oversaw the mine’s many expansions, growing annual output from 200,000 in 1997 to 1.4 million tpa right this moment, and navigated quite a few possession adjustments throughout his tenure. He’s a specialist in arduous rock mining and spodumene concentrating, with downstream relationships with main spodumene converters worldwide.

Scallan can be extremely expert in managing area people relationships, having acted as shire councillor for practically 20 years throughout his time at Greenbushes, receiving his Order of Australia Medal for his group and native authorities contribution. His earlier roles embody administration positions at Capel and Eneabba Mineral Sands in Western Australia and Western Deep Ranges Gold Mine in South Africa.

Dr. Jingyuan Liu – Non-executive director

Dr Jingyuan Liu is extensively considered a number one technical professional within the lithium trade. He beforehand held the place of basic supervisor of growth and applied sciences at Galaxy Sources, the place he was answerable for overseeing the development and commissioning of the Mt Cattlin Spodumene Venture and the world-renowned Jiangsu Lithium Carbonate plant. Liu additionally performed a key function in designing the movement sheet for the Sal de Vida brine mission.

Following his work with Galaxy, he has acted as a particular adviser to numerous lithium carbonate and lithium hydroxide tasks globally, together with the Lithium Hydroxide Plant operated by Tianqi in Kwinana, Western Australia.

Liu has over 30 years’ expertise in mission administration, course of and gear design for minerals processing and the chemical substances, non-ferrous metals, iron & metal and power industries, each in Australian and internationally. He was awarded a PhD in chemical engineering from the College of Newcastle, Australia and has labored in senior chemical engineering roles with main corporations reminiscent of Hatch Engineering and Metso Minerals in Australia and Malaysia.

He’s at present chief expertise officer for Altech Batteries (ASX:ATC), growing excessive capability silicon anode lithium-ion batteries.

Gernot Abl – Government Director

Gernot Abl was beforehand a strategic managing director with huge expertise in enterprise administration, operations and funding for a number of the quickest rising industries on the planet. After gaining over 15 years of company expertise, he led the one pure esports play listed on the ASX, Esports Mogul Restricted. Abl has a confirmed background in enterprise administration and industrial instinct, initially from working as a administration guide for each Deloitte Consulting and Deloitte Company Finance in Perth and Melbourne.

Abl additionally led the restructure and turnaround of a financially distressed ASX-listed media firm and at present holds directorships for a variety of start-up corporations, providing company advisory, mission administration and industrial negotiation recommendation to a number of companies. He has a level in regulation and commerce with honours in finance and accounting from the College of Western Australia.

John Sobolewski – Chief Monetary Officer

John Sobolewski’s expertise within the lithium trade presents one other useful addition to the LU7 dream workforce. At Galaxy Sources, he performed a pivotal function in the course of the feasibility, funding, development and operation phases of the Mt Cattlin Spodumene mine and Jiangsu Lithium Carbonate refinery. He was additionally essential in establishing groups and programs in Australia and internationally. His expertise in monetary modelling and debt modelling for each tasks will likely be vital in Lithium Universe, finishing definitive feasibility research of the Québec Lithium Processing Hub concentrator and lithium carbonate refinery tasks.

Sobolewski is a chartered accountant and a graduate of the Australian Institute of Firm Administrators. His earlier roles embody managing director and CEO with Mintrex, CFO and firm secretary with Mintrex, Galaxy Sources Restricted and Very important Metals Restricted, monetary controller and firm secretary with Croesus Mining NL, and group accountant and firm secretary with Titan Sources NL.

Vincent John Fayad – Joint Firm Secretary

Vincent John Fayad is a chartered accountant with over 40 years of expertise in company finance, worldwide M&A, accounting and advisory-related companies primarily undertaken by mid-tier accounting agency PKF. In 2016, he established his personal agency, Vince Fayad & Associates, to supply accounting and advisory companies inside Australia and abroad.

During the last 25 years, Fayad has spent a major period of time advising on varied transactions, predominantly associated to the mining and exploration industries and offering accounting and company secretarial expertise to mining exploration corporations.

Fayad is at present an government director and joint firm secretary of Astute Metals NL (ASX:ASE) and joint firm secretary of Greenvale Power (ASX:GRV). He’s additionally a non-executive director of Nexon Asia Pacific, a telecommunications firm, managed by personal fairness group EQT.

Kurt Laney – Joint Firm Secretary

Kurt Laney is an skilled chartered accountant specialising within the provision of advisory, consultancy, taxation and company secretarial companies. Laney is at present an affiliate director of Vince Fayad and Associates, the place he offers accounting and taxation companies to high-net-worth people, household places of work, massive family-owned companies and multinational entities.

Laney can be the joint firm secretary and CFO of Greenvale Power Ltd (ASX:GRV) and Astute Metals NL (ASX:ASE), together with a number of unlisted public corporations primarily targeted on the tech and mining industries. He has beforehand served as the corporate secretary of Polymetals Sources (ASX:POL).

Justin Rivers – Head of Geology

Justin Rivers possesses greater than 20 years of senior government, technical and industrial expertise in Africa, Australia, Asia, Arctic, Center East, North America and South America within the main and junior area, with a selected concentrate on Iron Ore and Gold. He has a well-tenured strategic and tactical method to the mining trade with intimate industrial, enterprise growth and M&A expertise in Tier-1, publicly listed and personal fairness environments.

Previous to becoming a member of Lithium Universe Restricted, Rivers held the place of government director and CEO of Mauritian domiciled personal fairness firm Convertible Sources, driving strategic growth of its gold tasks within the Siguiri area of northeast Guinea. He has a Bachelor of Science (firstclass honours) majoring in geology and environmental science from the College of Tasmania.

Terry Stark – Head of Mining

Terry Stark was beforehand managing director – assets division for Galaxy Sources (ASX:GXY), the place he was answerable for all of Galaxy’s mineral assets property reminiscent of exploration and mine operations. Stark oversaw the Mt Cattlin development and subsequent profitable start-up. He additionally managed the Galaxy James Bay mission and had relationship with the native Cree Nation.

A veteran mining engineer, Stark holds a Bachelor of Utilized Science specialising in mining engineering.

John Loxton – Head of Lithium Carbonate Refinery

John Loxton’s lithium expertise commenced in 2010 with work on the Jiangsu Lithium Carbonate Plant EPCM for Galaxy Sources in China the place his duties initially have been at a Sponsor stage, and additional into the mission. He was the mission supervisor for the ultimate phases of development and commissioning. In 2019, Loxton was engaged by Tianqi Lithium as head of tasks for the execution of their funding in a lithium hydroxide processing plant in Kwinana, Western Australia. He managed the commissioning of the primary prepare attaining the primary product in 2021 and undertook execution planning and establishing a mission workforce for an equivalent second prepare in 2022. Loxton is a mission supervisor with over 45 years of expertise throughout a various vary of power, industrial, course of, civil, and main infrastructure tasks.

Roger Pover — Head of Processing

Roger Pover was beforehand the Mt Cattlin plant supervisor for Galaxy Sources (ASX:GXY). He was a part of the commissioning and begin up workforce and operated the plant for a few years. Pover additionally directed all optimisation modifications made at Mt Cattlin.

Pover is a veteran within the lithium trade, having commenced his profession at Greenbushes Lithium mine within the early 90s. He has a 45-year profession within the mining and chemical processing industries involving mineral sands, alumina refining, lithium, iron ore, tantalum minerals and tin manufacturing.

Huy Nguyen — Engineering Supervisor

Huy Nguyen has been seconded from Mintrex to behave as Lithium Universe Restricted’s engineering shopper consultant. Mintrex was the lead engineering firm that designed and constructed (along with DRA World) the Mt Cattlin Spodumene Plant.

Nguyen was a part of the development supervision when Mt Cattlin was constructed, so he’s skilled with not solely the design but additionally the development course of that delivered a mission on time and on funds.

Nguyen has a Bachelor of Mechanical Engineering from Curtin College, Grasp of Enterprise Administration and a member of Engineer Australia.

Victoria Vargas – Director, Lithium Universe Holdings (Canada)

Victoria Vargas brings to Lithium Universe (Holdings) greater than 25 years of expertise within the North American capital markets, with a major concentrate on the Canadian mineral sector. She started her profession at Kinross Gold Company and joined Alamos Gold in 2004. Throughout her tenure, she performed a pivotal function in enhancing investor publicity and facilitating the corporate’s transition from the TSX Enterprise to the TSX. Earlier than becoming a member of Alamos Gold, Vargas labored for H2O Innovation, a Québec-based firm targeted on offering best-in-class applied sciences and companies for the water and wastewater therapy trade.