Hpq Silicon Inc · TSXV:HPQ
Hpq Silicon — HPQ Silicon Resources — Shareholder Meeting (June 2021)
35 slides from Hpq Silicon's shareholder meeting presentation, Jun 21, 2021
Slide 1: Innovative Silicon Solutions
HPQ - SILICON R E S O U R C E S Innovative Silicon Solutions www.HPQSilicon.com
Slide 2: Disclaimers
DISCLAIMERS This presentation includes certain “FORWARD-LOOKING STATEMENTS” All statements, (other than statements of historical fact included herein), including, without limitation, statements regarding future plans and objectives of the company, are forward-looking statements that involve various
Slide 3: Why Silicon? Demand to reach 3.8 M MT worth US$10 billion by 2025
WHY SILICON? DEMAND TO REACH 3.8 M MT WORTH US$ 10 BILLION BY 20251 • GROWTH WILL BE DRIVEN BY DEMAND FOR CHEMICAL GRADE SILICON (2N+ Si) • 2N+ Si IS THE FEEDSTOCK NEEDED: Ø To make Silicones, a market expected to grow to US$ 23 B by 2025 (CAGR 10.7%)2 Ø To produce Polysilicon for solar energy, a ma
Slide 4: Energy storage demand about to explode
ENERGY STORAGE DEMAND ABOUT TO EXPLODE ENERGY STORAGE CAPACITY MUST INCREASE TO OFFSET THE VARIABILITY OF RENEWABLE ENERGY “Investment dedicated to energy storage will exceed $40 billion by 2040 ” Yayoi Sekine, energy storage analyst for BNEF www.HPQSilicon.com 4
Slide 5: The long-term EV megatrend is only starting
+ THE LONG-TERM EV MEGATREND IS ONLY STARTING EV adoption and vehicle sales (1) Leading EV manufacturer plans – over $300 billion committed 7 80 EV 3% 11% 28% Number of EV models announced (2) penetration 20 rate % 15 35 31 23 30 12 EV sales (million units) 25 10 20 47 15 28 12 10 10 5 3 20 0 0 5 10
Slide 6: This will drive strong demand for all battery materials
THIS WILL DRIVE STRONG DEMAND FOR ALL BATTERY MATERIALS Recent increased # of Megafactories Raw material demand vs global lithium-ion cell / Megafactory capacity January 2020: 121 4,000 3,783 Lithium Graphite 3,500 Cobalt Nickel 3,000 2,809 2,716 2,500 March 2021: 199 kt 2,012 2,000 1,933 1,500 1,31
Slide 7: But there is a battery bottleneck
BUT THERE IS A “BATTERY BOTTLENECK” BATTERY PERFORMANCE HAS EVOLVED MUCH MORE SLOWLY THAN ELECTRONICS AND COMPUTERS Improvements have been made in battery technology, but they have not kept pace WHY IS BATTERY TECHNOLOGY EVOLVING SO SLOWLY? Batteries have evolved differently than electronics: • Elec
Slide 8: Breakthroughs needed in battery material science
BREAKTHROUGHS NEEDED IN BATTERY MATERIAL SCIENCE AUTO MANUFACTURERS ARE PIVOTING TO SILICON DEPLOYING SILICON IN BATTERIES REQUIRES INNOVATIVE SOLUTIONS! www.HPQSilicon.com 8
Slide 9: Since 2015 HPQ has implemented a silicon innovation strategy
SINCE 2015 HPQ HAS IMPLEMENTED A SILICON INNOVATION STRATEGY PROVIDING SILICON MATERIALS FOR BATTERIES & MORE • Currently advancing development of numerous silicon products • Creating silicon products to resolve Material Science issues • Breakthrough imminent with Nano Silicon for battery anodes • C
Slide 10: Silicon innovations with projects
SILICON INOVATIONS WITH PROJECTS DEVELOPING A MULTITUDE OF GAME CHANGING TECHNOLOGIES From Quartz to High Purity PUREVAPTM QRR Silicon in one step From Silicon to Nano Materials PUREVAPTM NSiR in one step FUMED SILICA From Quartz to fumed silica REACTOR in one step Using Nano Silicon for others OTHE
Slide 11: Pathways to industrialization
PATHWAYS TO INDUSTRIALIZATION PROOF OF CONCEPT PROJECTS & COMMERCIAL SCALABILITY PILOT AND INDUSTRIAL PILOT PLANT COMMERCIAL PLANT All process steps, (batch & semi- All process steps, Industrial type Modular Capacity for rapid continuous), small size equipment equipment, Capacity 50 MTY expansion, 2
Slide 12: Value proposition: commercialize and monetize
VALUE PROPOSITION: COMMERCIALIZE AND MONETIZE Silicon Solutions HPQ SILICON HPQ - SILICON Incubator R E RESOURCES INC S O U R C E S Division & Subsidiaries' PUREVAP QRR Project HPQ NANO SILICON POWDERS INC HPQ SILICA POLVERE INC Green Metallurgically Silicon Nano and Product of interest High Purity
Slide 13: Silicon 101
SILICON 101 YES, SILICON IS AWESOME, BUT INEXPENSIVE? NOT REALLY Silicon may be the most abundant element in earth’s crust after oxygen, but like all other energy metals (lithium, graphite, cobalt, nickel and others): Ø It does not exist in its pure state! Ø Expensive carbothermic process needed to
Slide 14: PUREVAP QRR – HPQ disruptive technology
PUREVAPTM QRR – HPQ DISRUPTIVE TECHNOLOGY THE PUREVAPTM QRR: GAME CHANGING VERSATILITY VERSUS CONVENTIONAL PROCESS SCALABILITY AND CAPEX ADVANTAGES: • New conventional plants are scalable by minimum increments of 30,000 MTY Ø Conventional plants 2N+ Si production limited at 40% of plant output Ø Req
Slide 15: PUREVAP QRR – low cost, low emissions
PUREVAPTM QRR – LOW COST, LOW EMISSIONS PUREVAPTM QRR OPEX VERSUS CONVENTIONAL Si PRODUCERS Silicon in the 2020s Inflation-adjusted prices are higher than they were in the early 2000s US spot price of 5.5.3 grade silicon vs. avg. operating cost at plants outside China and the CIS in real terms, $/t
Slide 16: PUREVAP QRR Gen3 ready for Q4 start
PUREVAPTM QRR GEN3 READY FOR Q4 START June 2021 pictures of Mr. P. Peter Pascali, President and CEO of PyroGenesis & Bernard Tourillon, President and CEO of HPQ Silicon next to the Gen3 PUREVAPTM QRR Pilot Plant (middle image blurred for confidentiality) “We have always believed that our PUREVAPTM Q
Slide 17: Graphite is fundamental to rechargeable battery anodes
TODAY: GRAPHITE IS FUNDAMENTAL TO RECHARGEABLE BATTERY ANODES Battery NMC 111 NMC 532 NMC 111 NMC 532 (Ex. of cathode) chemistry Lithium 15% Lithium 16% Lithium 15% Lithium 16% Nickel 29% Nickel 29% Cathode Nickel 43% Nickel 43% Manganese 29% Manganese 29% Manganese 24% Manganese 24% Cobalt 27% Coba
Slide 18: Silicon share of anode material demand is starting
SILICON SHARE OF ANODE MATERIAL DEMAND IS STARTING www.HPQSilicon.com 18 Source: Benchmark Mineral Intelligence, Elkem analysis.
Slide 19: The world will need silicon for better and faster charging batteries
THAT IS BECAUSE THE WORLD WILL NEED SILICON TO MAKE BETTER AND FASTER CHARGING BATTERIES POTENTIAL IMPACT OF SILICON IN ANODE OF TESLA MODEL 3 ON SINGLE CHARGE 423 km 0% Silicon 700 km 10% Silicon 1,000 km 20% Silicon 1,300 km 30% Silicon Source: WITH A POTENTIAL DEMAND > 200K MT BY 2030, WHO WILL B
Slide 20: The challenges
THE CHALLENGES DEPLOYMENT OF SILICON (Si) IN BATTERIES FACES CHALLENGES THE BIG ONE • The volumetric fluctuations (>300 %) of Silicon (Si) during charge/discharge cycles leads to irreversible energy storage capacity loss. WHY • Repeated exposure of the fresh silicon surface to battery electrolyte le
Slide 21: Economically viable solution do not exist now
ECONOMICALLY VIABLE SOLUTION DO NOT EXIST NOW CURRENT APPROACHES TO SILICON USE HIGHLY ENGINEERED AND EXPENSIVE MATERIALS SILICON STRUCTURED SILICON STRUCTURED SILICON SILICON IN SIO GLASS IN GRAPHITE NANOWIRES NANOPOWDERS > 2,000 US$ / Kg > 3,000 US$ / Kg > 30,000 US$ / Kg > 20,000 US$ / Kg SILICON
Slide 22: HPQ - developing low-cost solutions
HPQ - DEVELOPING LOW-COST SOLUTIONS STARTING COMMERCIAL VALIDATION OF LOW-COST PROCESSES TO MAKE AND TRANSFORM SILICON HPQ is developing: A new scalable, versatile, low CAPEX & OPEX carbothermic process SILICON SILICON NANOPOWDERS NANOWIRES Material produced by PyroGenesis during proof of concept te
Slide 23: Solving the silicon puzzle for batteries
SOLVING THE SILICON PUZZLE FOR BATTERIES HPQ NANO WITH HPQ NANO PUREVAPTM NANO Si REACTOR (NSiR) Ø With more than 20 years of experience developing and using plasma atomization to make metal powders for 3D printing PyroGenesis technical team is developing the PUREVAPTM Nano Si Reactor (NSiR). Ø Our
Slide 24: HPQ low-cost solutions vs competition
HPQ LOW-COST SOLUTIONS VS COMPETITION CONVENTIONAL CARBOTHERMIC PROCESS SILICON TO SILANE GAS PROCESS QUARTZ TO SILICON REC SILICON SiCl4 HSiCl3 SiH4 Refined 3 time H2 RAW 2N Si Forms add To Get SILICON 98.0% to 99.5% Si 99.5% SiO2 + Low Electric Arc Energy Consumption: Dissolved in Silicon Trichlor
Slide 25: NSiR clear roadmap for energy storage applications
NSIR CLEAR ROADMAP FOR ENERGY STORAGE APPLICATIONS Current 2022 2023 2024 2025 2026 Materials Product confirmations and standardisation Commercialisation Industrialisation development in small in industrial pilot R&D reactor PURVAPTM QRR Increase max charge rate and By product increase electrode den
Slide 26: HPQ – PyroGenesis fumed silica project
HPQ – PYROGENESIS FUMED SILICA PROJECT www.HPQSilicon.com 26
Slide 27: Traditional process vs new process
TRADITONAL PROCESS VS NEW PROCESS CONVENTIONAL CARBOTHERMIC PROCESS SILICON TO FUMED SILICA QUARTZ TO SILICON SiCl4 H2 RAW 2N Si Forms add SILICON 98.0% to 99.5% Si 99.5% SiO2 + Low Electric Arc Energy Consumption: Dissolved in Silicon Fumed Silica Ash Coal + Wood Furnace 12,000 kWh needed tetrachlo
Slide 28: HPQ capital structure
HPQ CAPITAL STRUCTURE Cash and Cash equivalent in hand $ 5,269,200 Share Price (June 15, 2021) $0.810 TM Dedicated Cash for PUREVAP QRR Pilot Plant $ 1,950,000 52 Week Low $0.150 In the money warrants and options $ 10,883,682 52 Week High $1.680 TOTAL CASH POSITION $ 18,102,882 Warrants Breakdown Ex
Slide 29: HPQ trading and other stats
HPQ TRADING (last 12 months) and other stats HPQ TRADING STATISTICS Float Shares Traded Value Average Turnover 12 months rolling 574,913,159 $ 419,110,736 $ 0.729 2.028 > $0.50 JUL 15 to MAY 31 490,079,737 $ 393,622,792 $ 0.803 1.729 > $0.75 DEC 15 to MAY 31 289,094,861 $ 294,722,290 $ 1.019 1.020 S
Slide 30: HPQ trading vs TSX-V Index
HPQ TRADING VS TSX-V Index (last 12 months) www.HPQSilicon.com 30
Slide 31: Why invest in HPQ Silicon?
WHY INVEST IN HPQ SILICON? UBS estimates that over the next ten years, the energy storage market in the United States alone could grow to as much as $426 billion, and there are many ways to buy into the surge! (CNBC Dec 30, 2019) HPQ – SILICON: AN INVESTMENT OPPORTUNITY TO PARTICIPATE IN THE SURGE!
Slide 32: Management, board & key investors
MANAGEMENT, BOARD & KEY INVESTORS Management Bernard J Tourillon, BAA, MBA Chairman, President, CEO and Director Patrick Levasseur Independent Directors Vice-President, COO and Director Richard Mimeau, B.Sc. Noelle Drapeau, LLL, MBA, PMP Director Corporate Secretary and Director Peter Smith, PhD, P.
Slide 33: Consultants, transfer agent and auditors
CONSULTANTS, TRANSFER AGENT AND AUDITORS Consultants/ Technical Advisors Marcel Drapeau, BA, BSC. Comm, LLL PyroGenesis Canada Inc Apollon Solar Sa Transfer Agent Computershare Auditors KPMG S.E.C.N.R.L. www.HPQSilicon.com 33
Slide 34: Contact
CONTACT Patrick Levasseur Bernard J. Tourillon, B.A.A, MBA Vice-President, COO and Director Chairman, President and CEO patrick.levasseur@hpqsilicon.com bernard.tourillon@hpqsilicon.com +1 514 262-9289 +1-514-907-1011 3000 Omer-Lavallée St, Suite 306 Montreal, Quebec, CANADA, H1Y 3R8 +1 514 846 3271
Slide 35: HPQ trading vs NOU
HPQ TRADING VS NOU (last 12 months) www.HPQSilicon.com 35
HPQ Silicon Resources — Shareholder Meeting (June 2021) on 6ix