Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Li3 Energy, Inc. | v300105_8k.htm |
Exhibit 99.1
4th Lithium Supply
& Markets Conference
Strategic Alliances and Their Role in Lithium Raw Material Supply
Right Here, Right Now… It’s Happening…..
Luis F. Saenz, Chief Executive Officer/Director
Li3 Energy
Disclaimer
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, financing, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: The Company’s ability to identify appropriate corporate acquisition and/or joint venture opportunities in the lithium mining sector and to establish the technical and managerial infrastructure to take advantage of, and to successfully participate in such opportunities, changes in the world wide price of mineral commodities including lithium, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
Conference Topics
Key Discussion Points:
| · | Strategic alliances and their role in lithium raw material supply. | |
| · | The real story behind getting a strategic partner (How, When & Why). | |
| · | What should / do we expect from a strategic alliance? | |
| · | Where will our lithium carbonate end up? | |
| · | Quick comparison of the different alliances and some questions to ponder. |
Pretty much everyone deems Lithium a strategic asset.
With demand growing, leading global companies are partnering with lithium miners to secure a stable, steady and secure source of Lithium.
Companies who have strategic lithium partnerships:
| GanfengLithium | Misubishi Corporation | MAGNA | ||||
| LG Chem | R3 Fusion | Shenzhen Eastar Battery Co. Ltd. | ||||
| GS Caltex | POSCO | Mitsui & Co., Ltd. | Toyota Tsusho Corporation | |||
Who’s next??
The real story behind getting a strategic partner:
| Its not who you chose, but why… | |||
| · | Strategic… of course it is: | ||
| · | Simple off-take and project financing options; | ||
| · | Intellectual capital; | ||
| · | Downstream end user potential; | ||
| · | Financial; | ||
| · | Global Vision. | ||
| · | Industry Knowledge. | ||
What should /do we expect from a strategic alliance?
| Its not who you chose, but why… | |||
| · | Determine additional value add besides the obvious (Off-Take) | ||
| · | Mutually beneficial economics and risk in project development | ||
| · | Clear understanding of lithium mining, processes and challenges: | ||
| · | Merits of the project; | ||
| · | Technical, Geo-Political issues; | ||
| · | Over coming uncertain geographic permitting and; | ||
| · | Supply side, end users; | ||
| · | Ability to achieve competitive advantage against peer group: | ||
| · | How do you compete in a closed market, uncertain demand, overwhelming potential supply...and some pretty big gorillas out there… | ||
Where will our lithium carbonate end up?
| Great Question… | |||
| · | Forecasted increased demand across multiple industries. | ||
| · | Growing interest exploring the use of lithium in solar energy and other applications. | ||
| · | Increased global initiatives for “Clean & Green” environmentally friendly energy sources. | ||
| · | Bodes well for the questions of: | ||
| · | Who’s next? | ||
| · | What’s next? | ||
[Pie Chart]
Glass & Ceramics 31%
Batteries 23%
Lubrication 9%
Casting 4%
Air Conditioning 6%
Pharma 2%
Aluminum 6%
Rubber 4%
Other 15%
Source: USGS- 2011
Comparison of different alliances & questions to ponder
Successful Lithium Strategic Partnerships:
| Strategic | ||||||||||||||||||||
| Company | Project | Location | Resources | Partner(s) | Market Cap | |||||||||||||||
| Orocobre | Olaroz | Argentina | M&I: 6.4M MT LCE, 19.3M MT KCl | Toyota Tsusho | US$ | 213.84M | ||||||||||||||
| Dajin Resources | Salinas Grandes | Argentina | - | Cariboo Rose Resources Ltd. | US$ | 6.09M | ||||||||||||||
| Lithium Americas | Cauchari-Olaroz | Argentina | M&I: 5.3M MT LCE, 17.25M MT KCl | Mitsubishi Corp and Magna | US$ | 89.57M | ||||||||||||||
| International Lithium | Mariana | Argentina | - | Jiangxi Ganfeng Lithium Co. Ltd | US$ | 6.09M | ||||||||||||||
| Rodinia Minerals | Diablillos | Argentina | Inferred: 4.96M MT LCE, 19.84M MT LCE (K) | Shanshan & Qinghai Institute | US$ | 21.58M | ||||||||||||||
| COMIBOL | Uyuni | Bolivia | 47.35M MT LCE | Zincobre, Posco, Kores | - | |||||||||||||||
| Lithium One | Sal de Vida | Argentina | Inferred: 5.44M MT LCE, 21.3M MT LCE (K) | LG International, GS Caltex, KORES | US$ | 83.86M | ||||||||||||||
| Lithium One | James Bay | Canada | Indicated: 11.75M MT @ 1.3% Li2O | Galaxy Resources | US$ | 83.86M | ||||||||||||||
| Canada Lithium | Quebec | Canada | M&I: 29.3M MT @ 1.19% Li2O | Mitsui | US$ | 131.42M | ||||||||||||||
| Nemaska Explorations | Whabouchi | Canada | M&I: 25.08M MT @ 1.54% Li2O | Chengdu Tianqi Group | US$ | 24.99M | ||||||||||||||
| Li3 Energy | Maricunga | Chile | Inferred: 224,300 MT Li, 3.27M MT KCL | Posco | US$ | 24.2M | ||||||||||||||
Li3’s First Commercial Deal: Validation
Strategic Alliance with one of the world’s largest steel manufactures,
Poised for active partnering with substantial follow on possibilities:
POSCO – (NYSE:PKS)
| · | August 11: Executed “SPA” with POSCO Canada Ltd: | ||
| · | $18MM investment commitment; | ||
| · | $8MM invested to fund exploration at Maricunga (9% stakeholder); | ||
| · | $10MM investment upon achieving milestones in 1st Qtr 2012; | ||
Why this Strategic Alliance makes sense for Li3:
| · | Global Fortune 500 Leader. | |
| · | Long-term partnership to develop a lithium business that brings together financial, intellectual and technical capital. |
Li3’s First Technology Deal: Strategic Value Add
Agreement to explore use of intensified evaporation technology,
poised for active partnering with substantial follow on possibilities:
R3 Fusion
Harvesting green technology.
| · | R&D MOU signed June’11: | ||
| · | Positive laboratory results 4th QTR 2011. | ||
| · | Jan’ 2012 - Signed macro agreement with higher Li3 commitment and global lithium exclusivity. | ||
Why this Partnership makes sense for Li3:
| · | Time savings. | |
| · | Reduced evaporation ponds. | |
| · | Improved processes. | |
| · | Water, water, water…. |
Contact:
Li3 Energy
Luis Saenz, Chief Executive Officer
luis.saenz@li3energy.com
Av. Pardo y Aliaga 699 Of. 802
San Isidro, Lima 27 - Peru
T: +51-1-212-1880
F: +51-1-421-1649