Compass Minerals Lithium: Sustainable and Domestic
CMP
Compass Minerals
Lithium:
Sustainable and Domestic
Ryan Bartlett, Ph.D.
Chief Strategy Officer
Fastmarkets Lithium Supply
and Markets Conference
September 20, 2021
FORWARD-LOOKING STATEMENTS AND OTHER DISCLAIMERS
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the anticipated development of the lithium resource at the company's Ogden, Utah, site, including the indicated lithium resource within the ambient brine of the Great Salt Lake; lithium vision; time to market and market entry; lithium value proposition, including its ability to use existing infrastructure and leverage natural processes; permitting needed; mineral lifecycle, including the effective life, extraction amounts and process; and ability to deliver on vision, including emissions footprint, cost competitiveness and delivery lead time. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. We use words such as "may," "would," "could," "should," "will," "likely," "expect," "anticipate," "believe," "intend," "plan," "forecast," "outlook," "project," "estimate," "target," and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company's current expectations and involve risks and uncertainties that could cause the company's actual results to differ materially. The differences could be caused by a number of factors, including without limitation: (i) the company's ability to convert all or any part of the lithium mineral resource identified by the initial assessment into an economically extractable mineral reserve, including the availability and cost of capital for related capital expenditures and the development of applicable process technologies; (ii) the overall environmental impact of the proposed extraction of the lithium mineral resource, as well as the company's ability to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, governmental or regulatory authorities and costs related to implementing improvements to ensure compliance with regulatory requirements; (iii) the results of the company's proposed strategic resource assessment regarding the lithium mineral resource; (iv) the company's ultimate production capacity with respect to lithium carbonate equivalent ("LCE"); (v) potential weaknesses and uncertainties in global economic conditions, including adverse changes in the overall market for lithium and related products; (vi) the risk that the company may not realize the expected financial or other benefits from the proposed development of the lithium mineral resource; (vii) impacts of the COVID-19 pandemic; (viii) weather conditions; (ix) pressure on prices and impact from competitive products; (x) foreign exchange rates and the cost and availability of transportation for the distribution of the company's products; (xi) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives; and (vii) the timing and the outcome of the sale process for the company's South America chemicals business. For further information on these and other risks and uncertainties that may affect the company's business, see the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the company's Annual Report on Form 10-K for the year ended December 31, 2020 and the company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 (including any amendments) filed with the SEC, as well as the company's other SEC filings. The company undertakes no obligation to update any forward-looking statements made in this presentation to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.
The company has completed an initial assessment to define the lithium resource at Compass Minerals' existing operations in accordance with applicable SEC regulations, including Subpart 1300. Pursuant to Subpart 1300, mineral resources are not mineral reserves and do not have demonstrated economic viability. The company's mineral resource estimates, including estimates of the LCE mineral resource, are based on many factors, including assumptions regarding extraction rates and duration of mining operations, and the quality of in-place resources. For example, the process technology for commercial extraction of lithium from brines with low lithium and high impurity (primarily magnesium) is still developing. Accordingly, there is no certainty that all or any part of the LCE mineral resource identified by the initial assessment will be converted into an economically extractable mineral reserve.
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WHY ARE WE HERE TODAY?
INTRODUCE
FRAME
SHARE
Compass Minerals
the importance of
our lithium value
lithium development
proposition
in North America
3
COMPASS MINERALS AT-A-GLANCE
~$1 B
Largest sulfate of potash
(SOP) producer
in annual revenue1
in the Western Hemisphere
~$230 M
Leading salt producer
Adjusted EBITDA1,2
in North America and U.K.
175+ years
~2.4M metric tons LCE
in operation
total lithium resource3
Focused on sustainability and safety
Our Workforce. We strive to
Our Communities. We value
Our Environment. We are dedicated
create a safe and inclusive
partnerships with local
to the responsible transformation of
workplace where everyone has
stakeholders and play an integral
the Earth's natural resources while
a voice and every voice matters
role in supporting local economies
managing our environmental impact
Note: Compass Minerals is NYSE listed under the ticker CMP
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GLOBALNORTH AMERICANRACE FOR LITHIUMLI SUPPLYSUPPLYIS ACCELERATINGIS LIMITED
[XX] 2020 US inflows of lithium1, thousands of metric tons of lithium content
"President Biden Outlines
Target of 50% Electric
Vehicle Sales Share in 2030
to Unleash Full Economic
Benefits of Build Back
Better Agenda and Advance
Russia
Smart Fuel Efficiency and
Emission Standards
"
0.1
North
America
China
0.1
1.6
South
America
Oceania
0.1
1.0
Other
Chile
Argentina
geographies
"The administration wants to see mining happen in a responsible way in this country to be able to get the lithium, cobalt, the nickel that are necessary for battery production for electric vehicles… It can be done in a way that respects the environment."
1. Based on 2016-19 import source shares and 2020 total imports for consumption, USGS
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Disclaimer
Compass Minerals International Inc. published this content on 20 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2021 15:51:02 UTC.