Ort agm presentation_2016_web
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Transcript of Ort agm presentation_2016_web
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
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
Orbite © TSX: ORT OTCQX: EORBF
TSX: ORT OTCQX: EORBF
All Things HPA
Construction
Commissioning Start-up
4
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.
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)
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)
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
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
Orbite © TSX: ORT OTCQX: EORBF
TSX: ORT OTCQX: EORBF
Commercial
12
The supplier qualification process
HPA sample status update
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
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
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
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
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
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
Orbite © TSX: ORT OTCQX: EORBF
Waste Monetization
SIGN UP PARTNER
CONVERSION PLANT
TECHNICAL DEMONSTRATION
ENGINEERING BLUE PRINT
COMMERCIAL PROTOTYPE
LICENSING
20
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
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
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
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
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