refining titanium for industrial use
DESCRIPTION
Objective Capital's Industrial Metals, Minerals & Investment Summit 2010London Chamber of Commerce and Industry3 November 2010Speaker: Mark Bertolini, MetalysisTRANSCRIPT
INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGYINVESTMENT SUMMIT 2010
LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010www.ObjectiveCapitalConferences.com
Refining titanium for industrial useMark Bertolini – CEO, Metalysis
Copyright © 2010 Metalysis Ltd
Industrial Metals Investment Summit3 November 2010
Copyright © 2010 Metalysis Ltd
To tell you about a new technology that will have a big impact on the way metals are
produced in the future
Purpose of this presentation
Metals & Mining
Cleantech Technology
Which Sector?
Copyright © 2010 Metalysis Ltd
Breakthrough technology,for production of high value metals
Breakthrough technology in $1trillion+ metals & mining sector. Simple, clean, oxide to metal (O2M) electrolysis technology. Significantly lower capital and manufacturing costs. Solid IPR, successfully defended. Samples qualified by customers, initial production investments made. A very valuable business built on high margin metal production and
technology enablement.
Copyright © 2010 Metalysis Ltd
Technology ReachFFC process is applicable to much of the periodic table. Tantalum represents the first production investment with Titanium and other elements to follow.
Suitable
Commercial production
Scaled-up to multi kg quantities
Produced at lab scale
Copyright © 2010 Metalysis Ltd
Early opportunities
• Tantalum– Fabulous electronic, medical, high temperature and
chemical properties– Supply Chain DYSFUNCTIONAL– Market opaque and volatile– Current process environmentally ugly and very
expensive– Metalysis have proven technology– First real orders soon
Copyright © 2010 Metalysis Ltd
Early opportunities
• Titanium– Very superior engineering material compared to steel,
stronger, lighter, more corrosion-resistant– Titanium usage severely BOTTLENECKED by price– Old & complex methods will be supplemented by new
simple methods– Metalysis holds the keys– Step change needed
Copyright © 2010 Metalysis Ltd
video www.metalysis.com
Strictly Confidential
The Metalysis SolutionSimple, low-cost, clean route to metal powders
Copyright © 2010 Metalysis Ltd
CopywriteMetalysis Ltd
The Kroll Process – TiCl4 Plant
Copyright © 2010 Metalysis Ltd
The SolutionMetalysis low cost and clean route to metal powders
Copyright © 2010 Metalysis Ltd
From Australian synthetic rutile sands to green pellet, sintered pellet, and finally reduced metal (alloy)
From sand to high performancemetal with 3 volts
Copyright © 2010 Metalysis Ltd
Titanium OpportunityTitanium market is $3,000m (~120,000 t pa)
Aerospace (strength-to-weight) Industrial (corrosion resistance, non-
magnetic) Dental implants, prosthetics
(bio-stability) Automotive Jewellery, watches, sports goods
Significant margin opportunity* 99.99% oxide $2/kg Mill product $25-70/kg Spherical powder $150-300/kg
Forecast return per 5,000t O2M plant......* NPV ~$230m IRR ~39% EBITDA ~$75m pa
* 2009 price levels
Laser sintered titanium dental implant lower cost in titanium than steel.
175,000 hip replacements are performed annually, and those numbers are on the rise expected to increase 174%
All titanium M777 matches the firepower of current generation at less than half the weight.
Jewellery and commissioned art work becoming fashionable in titanium.
Market awaits lower-cost powder to enable near net shape production
CP grade 2 titanium means noallowance required for corrosion .
Copyright © 2010 Metalysis Ltd
Ore extraction & processing
Oxide/ synthetic
rutileSponge
production
Mill processing(incl melt & metallurgy)
Customers
Titanium - Partnerships
Titanium Industry:
BHP Tronox ATI Allegheny Chemical
Rio Tinto Huntsman Timet Marine
Exxaro Dupont VSMPO Aerospace
RBM Cristal Osaka Medical
Austpac Toho Automotive
BHP Tronox Mitsui Jewellery
RTI Sports
Steel additives Turbines
Powder Metallurgy
Other Industries:
Chemical BASF, Bayer, Dow
Aluminium Norsk Hydro, Alcoa, RTZ Alcan, BHP, Dubal
Plant build RTZ, Jacobs, Foster Wheeler, Bechtel, Fluor
Distribution
Strictly Confidential
Copyright © 2010 Metalysis Ltd
Tantalum OpportunityTantalum market is $800m (~2,000 t pa)
Electronics grade - high and low voltage applications
Metallurgical Medical implants, prosthetics Sputter targets Chemical liners Aerospace super-alloys
Significant margin opportunity* 99.99% oxide $150/kg Met grade metal $250/kg Capacitor metal powder
$350/kg - $800/kg
Forecast return per 100t O2M plant......* NPV ~$40m IRR ~85% EBITDA ~$15m pa
Market is growing andprices are rising
* 2009 price levels
Copyright © 2010 Metalysis Ltd
Company
5,000 tonne titanium plant discussions
Semi-continuous design/process cost review100 tonne plant 1,000 tonne titanium plantTi: Sputtering targets Ta: Fabricated parts. Rated FFC product “high purity”Tantalum prosthetics. Product meets requirements
Looking to build on common ground and combine Metalysis IP with their scale-up knowledge
Powder consolidation discussions
Interest in both CP and Ti 6,4.Metalysis joined Boeing collaboration
Engaged Blue Chip Customers
Several Top 10Aluminium players
Several Top 7 Titanium players
2 of Top 3A/C Engine players
Copyright © 2010 Metalysis Ltd
Metalysis ready for production Next investments establish capacity for commercial production
FY 2010/11 FY 2011/12 FY 2012/13Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Jul-1
0
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-10
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Jul-1
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-11
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-12
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Tantalum increase to
96t/yr
Tantalum Roadmap 3-5% of $1B market.1st plant ~$39m NPV
TantalumInvestment
$15m
250t MODULE PROVE
OUT
Build first production moduleTitanium
Investment $15m
Build 1st Plant ~$240m NPV
Pipeline; Rollout O2M technology to other elements and special alloy development, Value creation options
Production PlantBuild & Commission
Improving grades and yields
First revenues
Titanium partnering & industrialisation plans
Copyright © 2010 Metalysis Ltd
Current Facility CP Development Scale up design Pilot experimental testing Design validation
O2M Reduction
Copyright © 2010 Metalysis Ltd
StrategyAchieve value triggers by end of 2011to facilitate IPO/Trade sale in 2012/3
Status:–Proven at small scale –Production plant built and commissioning now
Value triggers: Increase tantalum production volumes
(eg mobile telephony) and medical prosthesis)
Prove viability of technology for high volume metals (Titanium, eg aerospace & medical)
Prioritize and select next value creation opportunities (Pipeline, eg PV Silicon & Rare Earths)
Protect long-term value (IPR generation) Achieve commercial traction
Provide confidence that Metalysis can be worth $0.5B-$1B in 2 to 3 years
Copyright © 2010 Metalysis Ltd
Intellectual Property
• 19 live, published families of patents• Combined IP from;
– Cambridge University– BHP Billiton– Qinetiq – Metalysis
• 2nd Generation Technology focussed on– product uniformity, productivity and cost reduction– developing significant plant and process design know how
Copyright © 2010 Metalysis Ltd
Creating a High Value Company
2011 Selling Ti and Ta products in volume to
customers Proven production technology and
economics License to third parties $150m – $250m valuation expectation
2013 - 2015 In-house high margin production of Ta Ti licensing or Joint-Venture Further Ti licensing opportunities Product pipeline > $500m valuation expectation
Copyright © 2010 Metalysis Ltd
Aluminium Production HistoryTitanium growth could be similar to that of Aluminium after introduction of electrolytic process
•Aluminium 2007 38 Mt $106B•Titanium 2007 0.1 Mt $3B
•Titanium 2020? 3.8Mt $76B
Imagine .......
Norwegian/CanadianTitanium at 400kTpaSelling at $20,000/tCosting say $4,000/t
Gives revenue of ~$8BpaAnd profit circa $6.4Bpa
Lets work together to make it happen
Copyright © 2010 Metalysis Ltd
Summary
• Game changing process for producing advanced materials
• Green technology applicable to huge markets• Early commercial traction with Blue Chips• Starting to scale-up for commercial production• Comprehensive intellectual property position with 19 key
patents; extensive trade secrets; vast IP pipeline• Opportunities relating to one third of periodic table• Opportunity to get in now
Copyright © 2010 Metalysis Ltd
Old vs New
OLD
• Traditional metrics have been volume
• Millions of Tonnes @ $50/T• Requires very high & inflexible
investment in land, capital & people
• Very competitive and volatile
NEW
• Add on opportunity; high value/very high margin metals. Metric $’s, EBITDA, cash & never mind the volume
• Relatively low capital per revenue or EBITDA dollar
• Less cash inflexibility/lock in• Less commodity orientation so
less competition/less volatility
If traditional mining company market has a market cap of $Xb & an innovative mining cap creates at 10% premium..
What is this worth to your shareholders?
Copyright © 2010 Metalysis Ltd
Invest in Intellectual Property and Land
Copyright © 2010 Metalysis Ltd
Time to make change happen?
ConventionalRoutes
FFCProcess?
1950
’s20
10
