Century Global Commodities Corporation · TSX:CNT
Century Global Commodities — Investor Presentation (August 2022)
36 slides from Century Global Commodities's investor presentation, Aug 10, 2022
Slide 1: Corporate Presentation
Corporate Presentation TSX:CNT ∙ www.centuryglobal.ca August 2022 Compelling Near Term Low Capex Joyce Lake DSO Iron Ore Project in a Strong Recovering Seaborne Market Joyce Lake is an award-winning development project in the Labrador Trough, Canada at feasibility study (2015) with >$500M after tax
Slide 2: Forward Looking Statement
Forward Looking Statement Except for statements of historical fact, this presentation contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “project”; “intend”, “believe”, “anti
Slide 3: Content
Content Corporate Highlights The Joyce Lake DSO Project Other Iron Ore Projects 3
Slide 4: Corporate Highlights
oO Corporate Highlights A 4% CENTURYGL@BAL
Slide 5: Management's Canadian Iron Ore Development Track Record
Management’s Canadian Iron Ore Development Track Record 2005 (Bloom Lake) 2008 (Champion) 2011 (CNT IPO . . . ➔ 20Bt Fe) 2015 (Joyce BFS) 2022 (Spinout) Joyce Lake + ▪ Founded Century to invest ▪ Century (CNT) went public in 2011 on ▪ Completed BFS of Joyce ▪ ~15% holding in CLM ▪ Spinning out Joyce
Slide 6: Total Multi-billion tonne Iron Project Value ~$5.3B
Total Mult-billion tonne Iron Project Value ~$5.3B Base case iron ore price US$95/t (1) US$125/t (1) High-volume Full Moon PEA: IRR 15%, NPV C$5.8B (pretax) Joyce Lake @ BFS (NI 43-101, 2015) Pre-tax NPV8% C$130.8M C$609.5M Post-tax NPV8% C$61.4M C$355.2M Pre-tax/Post-tax IRR 18.7% / 13.7% 54.1% / 4
Slide 7: Financial Highlights
Financial Highlights Strong balance sheet and corporate working capital Share Structure Financial Highlights –June 30, 2022 C$ M Directors, officers & major shareholder 49.4% Cash 7.7 (23.5%) & MinMetals (4.7%) 28.2% Marketable securities 0.5 Public shareholders 22.4% Total 100% Receivables, Prepaid
Slide 8: Century Global: A Compelling Iron Ore Story
Century Global: A Compelling Iron Ore Story A near term production Joyce Lake DSO Project at BFS (with EIS complete & permit ready), in a strong recovering iron ore market at a market cap ~$11.8M with working capital* of $10.2M Strong Iron ore Close to $100M to date spent on developing Century’s iro
Slide 9: Management
Management Sandy Chim, ▪ >35 years of international capital Peter Jones, ▪ >45 years of mining operation and market, mining & other industrial development experience including CPA, CA, MBA experience P. Eng. mining majors and as chief executive ▪ Successful business building and of multi-billion-dol
Slide 10: The Joyce Lake Project
The Joyce Lake Project Simple bite size low capex intensity (US$11/t) quarry project of 2.5Mtpa output in a favourable cycle 10
Slide 11: Joyce Lake Open Pit Direct Shipping Iron Ore Project
Joyce Lake Open Pit Direct Shipping Iron Ore Project Joyce Lake Feasibility Study (1) Summary Unique Positive Project Features ➔ Bite size capex @ <C$15/t at 2.5Mtpa Production (Mt/year) 2.5 Mtpa ➔ Joyce delivers C$855M pre-tax NPV8% ($503M post-tax) @2021 average iron price and freight rate Reserve
Slide 12: Joyce – in Newfoundland & Labrador near Schefferville
Joyce – in Newfoundland & Labrador near Schefferville Joyce Lake Mineral Resources (1) Joyce Lake open pit deposit Joyce Lake 17.7Mt ~60% Fe reserve Category Cut-off Tonnes Fe SiO2 Al2O3 Mn Tata Measured & Kawawachikamach 55% Fe1 16,480,000 61.47% 9.10% 0.53% 0.81% Indicated Matimekush Inferred 55%
Slide 13: Joyce: Simple 2.5Mtpa Quarry Operation
Joyce: Simple 2.5Mtpa Quarry Operation Direct shipping of simply crushed & screened high-grade ore without tailings & beneficiation Mining & Crushing / Screening (including G&A) = C$21.02/t Mining: C$13.56/t Crush & screen: C$2.25/t G&A: C$5.21/t Sinter Fines Lump Ore Open-Pit Mining Crushing & Scre
Slide 14: Complete Transportation Infrastructure
Complete Transportation Infrastructure Capesize bulk carrier accessible ports available to Joyce to ship to seaborne markets Rail Port of Sept Iles ▪ 565 km rail operated ▪ 2 deep-water year-round ports at Sept Iles by common carriers connected to Joyce for shipping to China & (Tshiuetin Rail and Eu
Slide 15: Feasibility Study (2015) Capex and Opex
Feasibility Study (2015) Capex and Opex Simple operation / Opex with low capital intensity: ~C$15 Capex per tonne Capital Cost C$M Subtotals Product Operating Cost C$/dmt Mine Preparation $ 26.04M Mining $ 13.56 Processing Plant $ 11.23M Mine & Plant Total FOB Processing Plant $ 2.25 Mine Mobile Equ
Slide 16: Environmental Approval – Production Decision
Development Roadmap Environmental Approval – Production Decision Months (Mo) from Start (“S” i.e. Processes to EA Approval From Approval to completion of financing) 18th month to 24th + Construction 1.5-2 Years BFS update/optimization S+(3-6 Mo) NFL EIS guidelines S+(3-6 Mo) Full Production EIS addi
Slide 17: Potential DSO Exploration Targets around Joyce Lake
Potential DSO Exploration Targets around Joyce Lake Target Exploration Summary ▪ Lac Sans Chef Name Lac Sans ▪ 1400 m x 600m mineralization zone 10 km NW of Joyce Chefo 10Km north of Joyce with massive hematite outcrops; TFe > 62% ▪ Sub-synclinal closure with strong gravity anomalies as Joyce o 1400
Slide 18: Joyce Lake Summary
Joyce Lake Summary ▪ Positive near- and long-term market environment: Strong & steady incremental demand, COVID-19 global Cycle recovery, regional economic bloc developments etc. (recovering) ▪ Next major global iron ore expansion will take similar amount of capital as the last cycle and 5-10 years
Slide 19: Century's Iron Ore Projects
Century’s Iron Ore Projects Multi-billion tonne advanced projects at preliminary economic assessment stage in the same region for future expansion 19
Slide 20: World-class Multi-Billion-Tonne Advanced Canadian Iron Projects
World-class Multi-Billion-Tonne Advanced Canadian Iron Projects Ranging from BFS to PEAs (short and long-term development) ~C$100M invested High-volume Full Moon PEA: Flagship high-grade Joyce Lake BFS: High-volume Duncan Lake PEA: IRR 15%, NPV C$5.8B (pretax) IRR 18%, NPV C$140M (pretax) IRR 20%, N
Slide 21: Summary of Major Iron Ore Projects of Century in Value
Summary of Major Iron Ore Projects of Century in Value US$/t $95 (1) 101.37 (1) $108.95 (2) $125 (1) $142.50 (1) $167.83 (2) Joyce BFS/Full Moon Duncan Lake 50% of Joyce Full Jan ‘21 (>70% of Joyce 2019-20 Ave. 2020 Ave. PEA (Base case) PEA (Base case) Moon base case Full Moon base case) Joyce Lake
Slide 22: World-class multi-billion tonne iron ore resources
World-class multi-billion tonne iron ore resources Item DSO Taconite Magnetite Total Joyce Black Bird Full Moon1 Hayot Duncan1 Total Century’s ownership 91.6% 100% 100% 100% 68% Most Recent Report BFS Resource PEA Resource PEA P&P2 reserves (Fe %) 17.7 Mt (59.7%) - - - - 17.7 Mt M&I2 resources (Fe %
Slide 23: Counter-cyclical food distribution business unit with six years of growth
Counter-cyclical food distribution business unit with six years of growth from start-up at mid-20% GP generating >HK$5M monthly sales Solid growing food marketing business focusing on brand-marketing quality meat and egg products from Europe and Australia to Hong Kong and Macau – started profit gene
Slide 24: Value Fundamentals of Century
Value Fundamentals of Century Large gap between the sum of the parts & a market cap of $11.8M (1) $341M post-tax NPV8% in feasibility study at a price of post-tax NPV Joyce Lake DSO project at BFS Project High-grade / low cost US$123.5/t 62% (base case US$95/t with NPV $61.4M) which YTD July 2022 tr
Slide 25: Appendix
Appendix A 4X CENTURYGL* BAL 25
Slide 26: An Award-Winning Team
An Award-Winning Team 2014 2014 2016 Gold Business Excellence Silver Award in Professional, Explorer of the Year Award Scientific and Technical Services Canadian Institute of Mining Newfoundland Branch George Ogilvie, President of Rt. Hon. Jean Chrétien EVP Peter Jones receiving CIM - Newfoundland c
Slide 27: The Iron Ore Market
The Iron Ore Market The beginning of a new cycle 27
Slide 28: Strong Market Recovery
Strong Market Recovery Underpinned by a quiet continuously growing China in a supply market limited by lack of investment for years US$/t C3 Freight (Brazil-China) TSI FE 62% Spot Brazil FOB 240 230 TSI Fe 62% Daily Spot Price CFR China vs Brazil Daily FOB (US$) 220 The current recovery is happening
Slide 29: Demand
Demand Steady Incremental Growth The beginning of a new cycle 29
Slide 30: Share of imported iron as % of total iron ore consumption
China produced >1Bt of steel & imported >1Bt of iron ore in 2020 China’s steel market growth surprises the world by generating NEW demand (~200Mtpa) A Mtpa ▪ China appeared to 2000 Crude steel output (Mt) Imported iron ore (Mt) Domestic iron ore output (Mt) Scrap steel consumption (Mt) Import: % tot
Slide 31: Continuing Urbanization of a Well Industrialized Economy
Continuing Urbanization of a Well Industrialized Economy ▪ China is a well industrialized economy Urbanized Population % and Steel Output in China (largest production output in the world = ~sum of the next 5 countries) still China has been urbanizing just about 1% a year in the last decade 92% 1,100
Slide 32: Supply
Supply An Oligopolistic Structure The beginning of a new cycle 32
Slide 33: Big 4 Oligopoly Expansion and Production vs Capex
FMG’s emergence in 2000s sparked an expansion spree by the Big 3 to become the Big 4 Oligopoly doubling output in a few years . . . staging price hikes in a new cycle ▪ Almost US$100B expansion Capex Combined Big 4 Annual Production vs Capex (2011-Present) spent in the last cycle to double their cap
Slide 34: Big 4's massive expansion drove cost substantially to ~US$20/t
Big 4’s massive expansion drove cost substantially to ~US$20/t (FOB), total EBITDA & dividends up on Flat Shipments Annual Cash Cost US$/t (FOB) (2011-2021) Total Big 4 Volume vs EBITDA (2011-2021) Total Big 4 Dividends (2011-2021) US $/t tonnes (000's) US$ M US$m 65 1,400,000 $120,000 $40 60 Flat S
Slide 35: China vs Big 4 Supply-Demand Dynamics
China vs Big 4 Supply-Demand Dynamics 2021 Global Seaborne Iron Ore 2021 l Global Seaborne Iron Ore 2021 Iron Ore Consumed in Supply/Export = 1,611Mt Demand/Import = 1,611Mt China = 1,409Mt Domestic Ex-China Ex-Big 4 Supply import 535.53 285Mt 487 Mt Mt 33% 20% 30% Big 4 China's iron China's iron 1,
Slide 36: An aberration of commodities cycles: Outstanding iron ore price performance
An aberration of commodities cycles: Outstanding iron ore price performance seems sustainable with no major disruptions in view ▪ Iron ore price has been rising $167.75 $180 1,146,252Kt 1,145,964Kt 1,170,000Kt dramatically from the bottom $161.42 1,200,000 1,092,728Kt 1,106,906Kt after the last majo
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