Century Global Commodities Corporation · TSX:CNT
Century Global Commodities — Investor Presentation (February 2022)
37 slides from Century Global Commodities's investor presentation, Feb 14, 2022
Slide 1: Corporate Presentation
Corporate Presentation TSX:CNT ∙ www.centuryglobal.ca February 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 ta
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 Iron Ore Market Update The Joyce Lake DSO Project Corporate Highlights Market recovery Simply quarry operation Corporate Snapshot Management’s Canadian iron ore Feasibility study economics with >$500M NPV8% Non-ferrous business unit development track records @US$142.5/t spot price Management
Slide 4: Strong Market Recovery
Strong Market Recovery Underpinned by a quiet continuously growing China in a supply market limited by lack of investment for years US$/ 240 C3 Freight (Brazil-China) TSI FE 62% Spot Brazil FOB 230 220 TSI Fe 62% Daily Spot Price CFR China vs Brazil Daily FOB (US$) 210 The current recovery is happen
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: Joyce Lake The Project
Joyce Lake The Project Simple bite size low capex intensity (US$11/t) quarry project of 2.5Mtpa output in a favourable cycle 6
Slide 7: 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 Production (Mt/year) 2.5 Mtpa ➔ Bite size capex @ <C$15/t at 2.5Mtpa ➔ Joyce delivers C$855M pre-tax NPV8% ($503M post- Reserves (LoM Strip Ratio: ~4:1) 17.7Mt tax) @2021 av
Slide 8: Joyce NI 43-101 Resources & Reserves (~18Mt)
Joyce NI 43-101 Resources & Reserves (~18Mt) High quality of exploration with extensive drilling & closer spacing than average industrial standard in the region to guarantee accurate resources/reserves for pit optimization modeling Joyce Lake Mineral Resources1 2014 Explorer of the Year Award for Ca
Slide 9: Joyce Location – Labrador near Schefferville
Joyce Location – Labrador near Schefferville Joyce Project Mine site Tata Kawawachikamach Matimekush Schefferville Joyce Lake 10 km Rail to Sept-Iles 9
Slide 10: Simple Semi-Mobile Process Equipment
Simple Semi-Mobile Process Equipment ▪ Processing 8 months per year (April-November) ▪ Simple crushing and screening ▪ Producing lump ore (6.5-32mm) and sinter fines (<6.5mm) ▪ Diesel power generation SINTER DOUBLE DECK SCREENER LUMP CONE CRUSHER FEED SURGE BIN MCC TRAILER 10
Slide 11: 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 & processing (including G&A) = C$21.02/t R1 No Mining: C$13.56/t Process: C$2.25/t G&A: C$5.21/t beneficiation & tailings Sinter Fines R2 Open-Pit Crushing & Min
Slide 12: 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 13: 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 Total FOB Processing Plant $ 11.23M Mine & Plant Processing Plant $ 2.25 Opex + Mine Mob
Slide 14: 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 15: Corporate Structure and Joyce Spinout
Corporate Structure and Joyce Spinout Century Global Commodities: ▪ Listed on TSX as CNT Pre-Spinout CNT Structure Post-Spinout JDI Structure ▪ 2 Global Fortune 500 strategic shareholders: Baowu & Baowu Steel (1) Board, TSX Public Minmetals (~23.5% CNT) Management & CNT / Seed-Spinout New Public Min
Slide 16: 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 16
Slide 17: 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$140M (pretax) IRR 20%, N
Slide 18: Summary of Major Iron Ore Projects of Century in Value
Summary of Major Iron Ore Projects of Century in Value US$/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 19: 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 20: Corporate Highlights
th, Corporate Highlights A 4% CENTURYGL@BAL
Slide 21: 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 ~$17.2M with working capital of $12.4M Strong Iron ore Close to $100M to date spent on developing Century’s iron
Slide 22: Financial Highlights
Financial Highlights Strong balance sheet, trading below corporate working capital Financial Highlights – December 31, 2021 C$ M Cash 10.0 Marketable securities 1.2 Trade Receivables, Other Receivables, Prepaids, Inventories 3.7 Trade Payables, Other Payables and Accruals (2.5) Total Net Corporate W
Slide 23: Capital Structure and Iron Ore vs Share Prices
Capital Structure and Iron Ore vs Share Prices Share Structure Oct 1, 2020 – February 14, 2022 Iron Spot Price vs CNT & Peers Directors, officers & major shareholder 49.4% 0.8 Iron junior share prices lagging $250 way behind iron ore spot price Share Price (C$) (23.5%) & MinMetals (4.7%) 28.2% 0.7 I
Slide 24: Counter-cyclical food distribution business unit with five years of growth
Counter-cyclical food distribution business unit with five 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 gen
Slide 25: Value Fundamentals of Century
Value Fundamentals of Century Large gap between the sum of the parts & a market cap of $17.2M (1) $524M 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$142.5/t 62% (base case US$95/t with NPV $61.4M) which traded at US$147
Slide 26: Appendix
Appendix A 4X CENTURYGL* BAL 26
Slide 27: 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 28: 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 29: Recent Project History in the Labrador
Recent Project History in the Labrador The Importance of Working with/within Cycles 1 Reserves Output Project Name Project History Status LoM (Mt) (Mtpa) ▪ Started operations 2008 Restarted ▪ Cliffs bought in 2011 operating A Bloom Lake ▪ Sold in liquidation in 2015 after 2,405 23.8 100 ▪ Champion r
Slide 30: The Iron Ore Market
The Iron Ore Market The beginning of a new cycle 30
Slide 31: Demand
Demand Steady Incremental Growth The beginning of a new cycle 31
Slide 32: China produced >1Bt of steel & imported >1Bt of iron ore in 2020
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 33: 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 34: Supply
Supply An Oligopolistic Structure The beginning of a new cycle 34
Slide 35: Big 4 Oligopoly doubling output in a few years
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 36: Big 4's massive expansion drove cost substantially to ~US$15/t
Big 4’s massive expansion drove cost substantially to ~US$15/t (FOB), total EBITDA & dividends up on Flat Shipments Annual Cash Cost US$/t (FOB) (2011-2020) Total Big 4 Volume vs EBITDA (2011-2020) Total Big 4 Dividends (2011-2020) US$/t tonnes (000's) US$ M US$m $65 1,400,000 $80,000 $25 $60 $71,46
Slide 37: China vs Big 4 Supply-Demand Dynamics
China vs Big 4 Supply-Demand Dynamics Global Seaborne Iron Ore Supply / Export Global Seaborne Iron Ore China's Iron Ore in 2020 (1.5Bt) Demand / Import in 2020 (1.5Bt) Sourcing in 2020 (1.3Bt) China's domestic Ex-Big 4 Ex-China supply 32% = import 16% 0.46Bt 27% China's iron China's iron Big 4 ore
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