Etrion Corp. · OTC:ETRXF
Etrion — Renewables & Mining Summit and Exhibition 2014
20 slides from Etrion's conference presentation, Oct 16, 2014
Slide 1: Renewables & Mining Summit and Exhibition
Renewables & Mining Summit and Exhibition “Lessons Learned from Exploring a Long‐Term PPA with a Mine” Presented by: Marco Antonio Northland, Chief Executive Officer October 16, 2014 1
Slide 2: Corporate Overview
CORPORATE OVERVIEW 2
Slide 3: The Lundin Group
THE LUNDIN GROUP Etrion is part of the Lundin Group of Companies, 11 publicly‐traded companies in the mining and energy sectors The companies range from exploration stage to advanced development and production, operating in over 30 countries worldwide with a combined market capitalization of ove
Slide 4: Etrion Corporation
ETRION CORPORATION Company Overview Financial Summary Independent power producer (IPP) that builds, owns and Recent Share Price (TSX/OMX: ETX) CAD$0.50 / SEK 3.31 operates ground‐based solar photovoltaic (PV) power generation plants focusing on three key markets (Italy, Chile and Japan) Shares Out
Slide 5: Utility-Scale Solar Power Generation
UTILITY‐SCALE SOLAR POWER GENERATION Goal: Build, own and operate solar electricity plants at lowest cost per kWh Competitive Advantages of Solar Power Easy to permit Lowest marginal cost Fast to build Competitive at all sizes Simplicity Economics Easy to operate Low risk High flexibility in locatio
Slide 6: Business Model – Key Drivers
BUSINESS MODEL – KEY DRIVERS Key drivers Rationale PREDICTIBLE & STABLE REVENUES 1. Long‐term contracts Annual solar irradiation varies less than 10% REVENUE 2. Solar irradiation Economic growth increasing power demand and wholesale electricity prices Improving technology increasing plant perf
Slide 7: Etrion Assets and Global Solar Capacity (2013)
ETRION ASSETS AND GLOBAL SOLAR CAPACITY (2013) 7
Slide 8: Case Study: Our Experience in Chile
CASE STUDY: OUR EXPERIENCE IN CHILE 8
Slide 9: Chilean Power Market
CHILEAN POWER MARKET Overview Chile – Installed Capacity by Source 2013 In 2013, Chile had 18 GW of total installed power capacity, of which 17% Wind large hydro and natural gas made up more than 50% 21% 2% Biomass & Waste Solar installed capacity expected to reach over 550 MW by the end of 2% 8
Slide 10: Two Non-Exclusive Ways for Solar IPP to Operate in Chile
PPA VS. MERCHANT ELECTRICITY MARKET IN CHILE Benefits: TWO NON‐EXCLUSIVE WAYS FOR SOLAR IPP TO OPERATE IN CHILE Long‐term contracts, providing stable/predictable price for mining companies LONG‐TERM Ability to obtain attractive project finance (in terms of tenor and pricing) PPAs Challenges: (so
Slide 11: Project Salvador – 70 MW, 200 GWh per Year
PROJECT SALVADOR – 70 MW, 200 GWH PER YEAR SALVADOR (70 MW) Project Details Capacity 70 (49 net) MW Irradiation Yield 2,916 kWh/kWp Merchant project in the SIC (spot market pricing Revenue Stream with ability to secure future PPAs) Production 200 (140 net) GWh/year Land Government concession Start o
Slide 12: Etrion Addressing the Mining Sector
ETRION ADDRESSING THE MINING SECTOR ISSUE ETRION’S SOLUTION Energy Cost Defined price for the length of the PPA to on‐grid / off‐grid mining operations Solar plant can be built in close proximity to mine Location (using mine’s substation and transmission line) or off‐site Highly reliable solution wi
Slide 13: Aguas Blancas Project
AGUAS BLANCAS PROJECT Project (Aguas Blancas): 8.8 MW PV solar power plant located in the north of Chile within the province of Antofagasta. Aguas Blancas, comprised of one site, located approximately 3 km from the mine, was to be connected directly to the mine’s substation (minimizing transmissio
Slide 14: Site Location – Main Decision Factors
SITE LOCATION – MAIN DECISION FACTORS BENEFITS CHALLENGES On Site Avoid interconnection losses Interconnection ownership during and after PPA Avoid marginal costs delta/risk Site ownership during and Faster permitting (mining rights easements) after the PPA “Close to Heart and Eyes” of off‐taker Log
Slide 15: Value Proposition – Cost Benefit Analysis
VALUE PROPOSION – COST BENEFIT ANALYSIS ITEM VALUE PROPOSITION Energy Solution Etrion addressed 30% of AMC's energy needs. Over 99.5% availability Scalability & Reliability and expansion capacity based on future needs PPA Price Proposed PPA options of 15‐20 years. Priced competitively nearly 10% Pea
Slide 16: Externalities
EXTERNALITIES Iodine prices (USD/kg) 60.0 55.0 50.0 USD/KG 45.0 40.0 35.0 30.0 Etrion signs 15 year PPA with AMC AMC announces suspension of production 16
Slide 17: Summary
SUMMARY 17
Slide 18: Etrion – The Energy Solution for Mining Companies
ETRION – THE ENERGY SOLUTION FOR MINING COMPANIES 60 MW of installed capacity in Italy Operating platform of 17 solar power plants in Italy consistently OPERATIONAL perform above plan with 99.6% availability (YTD) EXCELLENCE Centralised monitoring system and effective asset management structur
Slide 19: Disclaimer
DISCLAIMER These materials and the information contained herein are being presented by Etrion Corporation (the “Company”). By attending a meeting where these materials are presented, or by reading them, you agree to be bound by the following limitations and notifications. These materials are strictl
Slide 20: Contact Details
Contact Details Etrion Corporation Rue de la Rotisserie 1 CH ‐ 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: info@etrion.com Website: www.etrion.com 20
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