Hpq Silicon Inc · TSXV:HPQ
Hpq Silicon — HPQ Silicon Resources — Investor Presentation (August 2021)
28 slides from Hpq Silicon's investor presentation, Aug 24, 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: 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 7: 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 7
Slide 8: Since 2015 HPQ Is Implementing a Silicon Innovation and Technology Development Strategy
SINCE 2015 HPQ IS IMPLEMENTING A SILICON INNOVATION AND TECHNOLOGY DEVELOPMENT 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 Sil
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: Today: 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 15: Silicon Share of Anode Material Demand Is Starting
SILICON SHARE OF ANODE MATERIAL DEMAND IS STARTING WITH A POTENTIAL DEMAND > 200K MT BY 2030, WHO WILL BE IN POSITION TO PRODUCE, AT A PRICE THAT BATTERY MANUFACTURERS WILL BE WILLING TO PAY, THE SILICON MATERIAL NEEDED? www.HPQSilicon.com 15 Source: Benchmark Mineral Intelligence, Elkem analysis.
Slide 16: Breakthroughs Needed in Battery Material Science
BREAKTHROUGHS NEEDED IN BATTERY MATERIAL SCIENCE DEPLOYING SILICON IN BATTERIES HAS CHALLENGES ECONOMICALLY VIABLE SOLUTION DO NOT EXIST NOW! www.HPQSilicon.com 16
Slide 17: 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 18: 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 19: HPQ – PyroGenesis Fumed Silica Project
HPQ – PYROGENESIS FUMED SILICA PROJECT www.HPQSilicon.com 19
Slide 20: Traditional Process vs New Process
TRADITONAL PROCESS VS NEW PROCESS QUARTZ (SiO2) TO SILICON (Si) SILICON (Si) TO FUMED SILICA (SiO2) CONVENTIONAL PROCESS TO MAKE SILICON CONVENTIONAL PROCESS TO MAKE FUMED SILCIA SiCl4 RAW SILICON 2N Si Forms add H2 Fumed Silica O2 98.0% to 99.5% Si 99.5% SiO2 + Low Electric Arc Energy Consumption:
Slide 21: HPQ Launches Green Hydrogen Extraction Technology Venture
HPQ LAUNCHES REVOLUTIONARY AND BREAKTHROUGH GREEN HYDROGEN EXTRACTION TECHNOLOGY VENTURE • August 24, 2021, HPQ announces the signature of an agreement with EBH2 Systems SA, (“EBH2”) a Swiss company that possesses a proprietary electrolysis technology that can efficiently extract, from virtually any
Slide 22: HPQ Capital Structure
HPQ CAPITAL STRUCTURE Cash and Cash equivalent in hand $ 9,180,000 Share Price (August 23, 2021) $0.730 Dedicated Cash for PUREVAPTM QRR Pilot Plant $ 1,950,000 52 Week Low $0.305 In the money warrants and options $ 5,997,932 52 Week High $1.680 TOTAL CASH POSITION $ 17,127,932 Warrants Breakdown Ex
Slide 23: HPQ Trading (last 12 months)
HPQ TRADING (last 12 months) www.HPQSilicon.com 23
Slide 24: 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 25: Value Proposition: Commercialize and Monetize
VALUE PROPOSITION: COMMERCIALIZE AND MONETIZE Silicon Solutions HPQ SILICON HPQ - SILICON Incubator RESOURCES INC R E S O U R C E S Division & PUREVAP QRR HPQ NANO SILICON HPQ SILICA Subsidiaries' Project POWDERS INC POLVERE INC Green Metallurgically Silicon Nano and Product of interest High Purity
Slide 26: 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 27: 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 27
Slide 28: 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
HPQ Silicon Resources — Investor Presentation (August 2021) on 6ix