COPPER - COBALT

World Class Copper-Cobalt Project

  • 100% owned flagship project – Walford Creek
  • Highest grade significant cobalt deposit in Australia

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GLOBAL DEMAND

Leveraged to Global Demand for Lithium ion Batteries

  • Cobalt is a key component
  • EV and electronic consumable markets drive demand for responsibly sourced cobalt

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RESPONSIBLY SOURCED

Responsibly Sourced

  • Australian mining project – low risk mining jurisdiction
  • Sustainable & ethical supply chain

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Aeon Metals’ objective is to transform into a premier base metals company


Aeon Metals’ purpose is to create long-term shareholder value through the discovery, acquisition and development of natural resources.

Aeon Metals has a total commitment to maintaining a safe and healthy workplace, allocating significant resources to training and management systems to ensure a best practice approach to safety at all times. In parallel, the Company has a strict focus on meeting environmental commitments.

January 2018 Resource upgrade reflecting refined geological model


Growing Demand for Lithium ion Batteries

Copper


  • Supply deficit looming with existing mines at full capacity
  • China concentrate and scrap imports still rising
  • Grades declining and lack of new projects
  • BHP forecast that by 2035 demand for copper in charging and distribution upgrades will reach 1.2m tonnes.

 

The Future of Copper:

Electric Vehicle Demand Drives Copper Demand

  • One in six cars is expected to be electric by 2025.
  • EV technology is heavily reliant on copper, and copper demand for EVs is expected to increase from 185,000 tonnes in 2017, to 1.74 million tonnes in 2027.
  • EV manufacturing requires copper for multiple key components, such as batteries, motors, charging stations, and supporting infrastructures.
  • The more advanced the EV technology becomes, the more copper is required.
  • Internal combustion engines typically use 23 kg of copper, while hybrid electric vehicles (HEVs) use 40 kg of copper, plug-in hybrid electric vehicles (PHEVs) use 60 kg of copper, and battery electric vehicles (BEVs) use 83 kg of copper.

 

The Future is Electric

  • According to the published World Energy Outlook 2017 by the International Energy Agency (IEA), growing electrification implies that electricity is going to sectors previously confined to fuels, including vehicles, heating and cooling systems.
  • The global demand for electricity is set to grow as rising incomes enable millions of households to use electrical appliances and cooling systems. Progress in India and Indonesia has been particularly impressive, and in sub-Saharan Africa electrification efforts outpaced population growth for the first time in 2014.
  • Electricity requires a great deal of copper for production, distribution, and transmission. Copper is an excellent electrical conductor and operates well at higher temperatures to help electrical systems connect to the larger grid.

 

Renewable Energy Gains Momentum

  • Global electricity generation from wind and solar was 23 percent in 2015, and thanks to increases in wind- and solar-generating capacity, that number is expected to grow to 30 percent by 2020.
  • A strong appetite for renewable energy sources remains at the global level. From wind turbines to solar panels, copper is a critical component of renewable energy technologies.
  • Wind turbines use copper for grounding wires, power cables, transformers, inverters, lightning protection, and as part of generators and control systems. A single wind farm can contain 4–15 million pounds of copper.
  • Copper is also a key component of solar energy systems, increasing the e­fficiency, reliability, and performance of photovoltaic cells and modules. Copper’s superior electrical and thermal conductivity are vital in the collection, storage, and distribution of solar energy.

Cobalt


  • Cobalt alloys form part of the lithium ion battery’s cathode material and is major input metal to rechargeable lithium-ion batteries for EV market which is expected to grow from current 10% to 40% by 2025.
  • Auto makers pledging to stop manufacturing internal combustion engine cars and focus solely on electric vehicles.
  • Global demand for refined Cobalt products was approximately 112kt in 2018.
  • Projected demand for Cobalt in 2018 is approximately 122kt, using a CAGR of 9% YOY over 2017. It is projected that this CAGR will continue to 2025 with a CAGR of the EV segment within at 25% CAGR.
  • Cobalt prices have risen 270% to over $80,000/t since early 2016.
  • Use of lithium ion batteries in grid scale energy storage, allowing households or entire communities to store electrical energy (when it is inexpensive) and consume it (when it is expensive), is forecast to grow strongly.
  • Major market for Cobalt is mobile phone and other non EV batteries – currently at around 45% of total Cobalt market.
  • China’s pipeline of planned battery plants is about triple the rest of the world at 130.4 GWh with the rest of the world at around 42.2 GWh (Bloomberg New Energy Finance).
  • China is now the largest market for new energy vehicles (battery, plug in hybrid and fuel cell) at around 777,000 cars (China Association of Automobile Manufacturers).
  • Chinese administration is offering generous incentives for consumers buying non internal combustion engine vehicles and all manufacturers (including European manufacturers) are encouraged to use Chinese made batteries.
  • China’s Contemporary Amperex Technology Ltd (CATL) is planning a $2bn IPO for 10% of the company to value the company at around $20bn to finance building the second largest battery factory in the world (behind Tesla’s Gigafactory in Nevada).
  • Mercedes Benz and Smart cars to offer electric versions of all models by 2022. They are building a global battery network of 6 factories in 3 continents and have announced plans to invest $1bn to build a new EV SUV in the US.

For more information on Cobalt, see COBALT INSTITUTE.

Responsibly Sourced

Aeon Metals’s Walford Creek project, located in North West Queensland has the potential to bring responsibly-sourced Cobalt to the global base metals supply chain.

With operations in Australia, an OECD jurisdiction governed by strict ethical guidelines and a rich history of sustainable mining practice, Aeon Metals is well placed to supply potential global consumer electronics and technology customers and automobile manufacturers who have responsible sourcing policies in place and require strict ethical guidelines to be followed.

Aeon Metals has a total commitment to maintaining a safe and healthy workplace, allocating significant resources to training and management systems ensuring a best practice approach to safety at all times. Aeon Metals complies with all environmental laws within the jurisdictions it operates. 

Contacts

Level 7, Suite 32
88 Pitt Street
Sydney NSW 2000
Australia
info@aeonmetals.com.au