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Ort agm presentation_2016_web
- 1. AGM Management Presentation June22, 2016
- 2. Orbite © TSX:ORT OTCQX: EORBF Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 30, 2016 on SEDAR, including those under the headings “Recent increase in budgeted capital costs will require additional financing and may adversely impact our prospects”, “We will need to raise capital to continue our growth” and “Development Goals and Time Frames”. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws. Forward looking statements 2
- 3. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Today’s Agenda All Things HPA • Construction • Going commercial What We Have Learned • Challenges met • Adjustments going forward Waste Monetization • The opportunity • Creating value 3
- 4. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF All Things HPA Construction Commissioning Start-up 4
- 5. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Construction – Where We Are Today 5 Civil & Structural • 3 new building additions • 60 equipment foundations • 20 equipment platforms • 40 tonnes of steel • 90 tonnes of concrete Decomposer & Calciner • 2 - 10m high / 70 tonne fluidized beds • 60,000 bricks • 400,000 lbs of refractory • Heated to 900 ⁰C & cured Other Major Mechanical Equipment • 200 pieces of equipment installed: Pumps, motors, reservoirs, hoppers, cooling systems, etc.
- 6. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Construction – Continued 6 Piping • 2.0 km installed • Utilities piping (air, steam, water) • Acid gas capture • Acid regeneration • High temperature process steam Electrical & Instrumentation • High voltage inlet transformers • 31 transformer substation for calcination system • 20 km of electrical wiring • Decomposer & calciner heating & control systems Other • Ventilation (materially complete) • Insulation (50% complete)
- 7. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Construction – What Remains To Be Done 7 Civil & Structural • Completed Decomposer & Calciner • Completed Major Mechanical • Completed Piping • 3.8 km of piping to be installed: o Cooling & demineralised water system o Piping systems for digester & crystallisation o Acid handling & acid gas scrubbing piping Electrical & Instrumentation • 20 motors to connect • Instrumentation (50% complete)
- 8. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Commissioning & Start-Up - Completed 8 Utilities • Air, steam & cooling water systems (circuit 1) • Water treatment for steam & cooling water production • Process water treatment system • Feedstock reception & handling • Acid & caustic reception & storage Commissioned & Cold Start-Up • Decomposition • Calcination • Electrical heating system for calcination system • Steam superheater • Acid regeneration • Calcination offgas capture & treatment
- 9. Orbite © TSX:ORT OTCQX: EORBF Extensive & Full-Scale Material Transfer Test 9 5.1m
- 10. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Construction Video 10
- 11. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Next Steps 11 June 20th Piping – Fjordtech Week of June 27th Electrical – Under evaluation Fjordtech mobilizes and commences work week of July 4th 8 week fixed price contract with schedule penalty clause No construction holiday downtime Completion of cooling system for calcination system Hot start-up & testing of decomposer/calciner Demineralised water New cooling tower (#2) Acid handling Digestion & crystallisation Crystal delivery to decomposer Process start-up HPA washing, grinding & packaging Plant start-up START COMMERCIAL PRODUCTION IN Q3 2016 FIXED PRICE CONTRACT AWARD CNC DEMOBILIZATION 4 WEEKS IN CONSTRUCTION SEQUENCED FOR DELIVERY
- 12. Orbite © TSX:ORT OTCQX: EORBF TSX: ORT OTCQX: EORBF Commercial 12 The supplier qualification process HPA sample status update
- 13. Orbite © TSX:ORT OTCQX: EORBF Supplier Qualification Process Typical Qualification Process Initial confirmation of acceptability in laboratory (Chemical & physical properties) • Sample size: ≈ 0.1 to 2 kg • Testing: 2 - 4 months Larger sample order to test process compatibility • Sample size: ≈ 1 to 10 kg • Testing: 3 - 9 months Commercial sample order for industrial production • Sample size: ≈ 20 to 100 kg • Testing: 3 - 6 months Finalization • Commercial terms, paperwork, order confirmation • Duration: 1 - 2 months 13 First samples shipped mid 2015
- 14. Orbite © TSX:ORT OTCQX: EORBF HPA sample status update 14 27 samples shipped to 20 different prospective customers 21 additional samples to ship to 20 additional prospective customers 3 commercial samples (50 – 100 kgs each) requests so far 1 shipped Continuing to enlarge prospective customer base by participating in trade shows • Ceramic Expo • Battery components
- 15. Orbite © TSX:ORT OTCQX: EORBF What we have learned 15
- 16. Orbite © TSX:ORT OTCQX: EORBF Challenges Met - Technical 16 External Issues • Originally supplied refractory materials • Supplier underestimated complexity of refractory installation • Supplier dispute Internal Issues • Underestimated complexity of specialty piping installation • Project management’s delayed awareness of cost overrun
- 17. Orbite © TSX:ORT OTCQX: EORBF Project Budget 17 • Originally established off HPA1 design • Had to be completely re-engineered • Some of this work done while advancing with construction • Very limited CapEx waste
- 18. Orbite © TSX:ORT OTCQX: EORBF What Went Right - Technical 18 Engineering • Successful commissioning and start-up of equipment-systems validate engineering • Consistent and high purity ACH production validate technology • Commissioning to date validates fluidized bed calcination system Capabilities • Quality of TDC has proven crucial in identifying issues and making the right technology choices • Quality of TDC a strong asset to help establish credibility • In essence, delivering completely new technology
- 19. Orbite © TSX:ORT OTCQX: EORBF Adjustments going forward 19 • Waste monetization detailed engineering to be based on work at TDC • Detailed engineering will be completed prior to construction, allowing fixed price contracts • Will benefit from having a blueprint industrial scale plant • Initiative to be developed with global commercial partner • Engineering and project management: appointment of Charles Taschereau as COO
- 20. Orbite © TSX:ORT OTCQX: EORBF Waste Monetization SIGN UP PARTNER CONVERSION PLANT TECHNICAL DEMONSTRATION ENGINEERING BLUE PRINT COMMERCIAL PROTOTYPE LICENSING 20
- 21. Orbite © TSX:ORT OTCQX: EORBF Strengthening IP portfolio – 2015/16 Review TSX: ORT OTCQX: EORBF© Orbite 17 Patents granted 23 National/international patent applications 8 Continuation patent applications 1 New IP family filed (Recovery of noble metals) 2015 7 Patents granted 2 National/international patent applications 5 Continuation patent applications 7 Notices of allowance received 2016 YTD 21
- 22. Orbite © TSX:ORT OTCQX: EORBF Fly Ash Prospective Partner - Case Study North America – About 10.2 M tonnes stored over 3 sites 22 1 Million tonne of Fly Ash/year plant Measured Content Typical Pricing (US $/tonne) Expected annual revenue (US $ M) Al2O3 15.9% 222 35.3 Fe2O3 18.4% 62 11.4 MgO 1.4% 420 5.7 SiO2 35.4% 32 11.3 Ga 36 ppm 128 4.6 REO's 525 ppm 278.63* 146.3 Total: 214.6 All fly ash treated: $ 2.2 bn * Average basket price as at May 2, 2016, including scandium oxide
- 23. Orbite © TSX:ORT OTCQX: EORBF Red Mud Prospective Partner - Case Study EMEA – About 15 M tonnes stored on site 23 1 Million tonne of Red Mud/year plant Measured Content Typical Pricing (US $/tonne) Expected annual revenue (US $ M) Al2O3 23.4% 222 51.9 Fe2O3 19.5% 62 12.1 MgO 0.2% 420 0.9 SiO2 15.7% 32 5.0 Ga 54 ppm 128 6.9 REO's 988 ppm 375.78* 371.2 Total: 448.1 All red mud treated: $ 6.72 bn * Average basket price as at May 2, 2016, including scandium oxide
- 24. Orbite © TSX:ORT OTCQX: EORBF Creating Value >$101.5 billion Asset value based on current production levels only >$455 billion Value in current red mud stock piles 24 Building more value into the company Short-term • Formal collaboration • Expansion of IP • Engagement with prospective customers Long-term • Unlocking the incredible value stored in different waste sources • Global expansion
- 25. Orbite © TSX:ORT OTCQX: EORBF All challenges encountered were met Fully funded for plant completion Very near to plant completion and start of production Strong momentum on commercial front Operational and management change to prepare for future Well positioned for waste monetization Conclusion 25
- 26. Orbite © TSX:ORT OTCQX: EORBF 26 Annual Meeting of Shareholders Thank you
- 27. TSX: ORT OTCQX:EORBF© Orbite – Confidential 27