Morien Resources Corp. · TSXV:MOX
Morien Resources — Investor Presentation (May 2023)
32 slides from Morien Resources's investor presentation, May 2023
Slide 1: More Business Than Mining - MOX Corporate Update, May 2023
TSX-V More Business Than Mining MOX Corporate Update, May 2023 Donkin Mine headland
Slide 2: Disclaimer
Disclaimer The information in this presentation is provided as of July, 2022, for information purposes only, and may constitute "forward-looking information" as defined under applicable securities laws. All statements in this presentation other than statements of historical fact, including those tha
Slide 3: Bulk Commodity Royalty Assets
Bulk Commodity Royalty Assets Donkin Steelmaking Coal Mine (Producing) 2% to 4% Production Royalty with The Cline Group Black Point Aggregate Project (Permitted) Per-Tonne Production Royalty with Vulcan Materials 3
Slide 4: Morien’s Capital & Corporate Structure
Morien’s Capital & Corporate Structure Capital Structure (TSXV:MOX) Ownership Summary As of May 2023 As of May 2023 Institutional Basic shares outstanding 51.4 mln The Cline Options 2.7 mln Morien Mgmt 13% Group & Directors 12% Warrants nil 18% Family Fully diluted shares outstanding 54.1 mln 7% Off
Slide 5: Leadership
Leadership John Budreski Dawson Brisco Susanne Willett Mary Ritchie Beau White Charles Pitcher John Byrne Executive Chairman Director, President, CEO Chief Financial Officer Director, Audit Chair Director Director Director Capital Markets and Professional geologist Qualified CPA, CA FCPA, CPA, exten
Slide 6: Mining Royalty Sector Performance
Mining Royalty Sector Performance Royalty Sector Outperforms Mining Sector Morien Outperforms Royalty Sector May 2022 to May 2023 May 2022 to May 2023 20% 200% Royalty Sector Morien 10% +10% 150% 0% -1% 100% +96% -10% -8% +75% 50% -20% 0% -30% -35% -40% -50% 06 2 07 2 08 2 09 2 10 2 11 2 12 2 01 2 0
Slide 7: Why We Are Different
Why We Are Different Shareholder Alignment Share buy backs, dividends, low corporate overheads & no debt Steel & Stone High demand commodities; steelmaking coal & aggregate 25-50 Year Asset Lives 25-years for the Donkin Mine & 50-years for the Black Point project Highly Experienced Operators The Cli
Slide 8: Business Discipline
Business Discipline Insider Ownership Corporate Overheads Shares Outstanding % Ownership (Management & Directors) $ Millions (General & Administrative) Millions, Total Common Shares 18% $1.20 60 16% -17% $1.00 50 14% +3x -42% 12% $0.80 40 10% $0.60 30 8% 6% $0.40 20 4% $0.20 10 2% 0% $0.00 0 2015 20
Slide 9: Since Donkin Opened …
Since Donkin Opened … 1-Year Share Performance; Insider Buying, Buy-Backs, & Dividends April 2022 to April 2023 Share Price Volume (mln) $0.90 Donkin 1.8 Share price reopens Daily trading volume $0.80 1.6 Normal course issuer bid $0.70 1.4 Insider open market buying Insider early option exercise $0.
Slide 10: The Donkin Mine
The Donkin Mine Owner & Operator Capital Investment Mine Life The Cline Group >$250 mln since 2015 25-years2 Mine Type Product Mix Morien Royalty Underground Primarily steelmaking coal2 2% to 4%3 10
Slide 11: The Cline Group – A Highly Experienced Operator
W ill i am Su so Bu ga n 16.6 ll M rC ou am nt ai p 13.2 ns N o. 1 13.0 Hi Sa l lsb n or o Ju 12.2 an N o. 1 11.3 Su fc Ca M o 11.3 ac st le o up Va in lle 10.7 y No M .3 in 9.2 e N o. Ne 1 8.4 w Fu U.S. Underground Coal Mine Production (2015), million tonnes 4 tu re W 8.4 es tE lk De 8.4 se Product
Slide 12: The Cline Group’s Alberta Mine
The Cline Group’s Alberta Mine Production Profile of Hinton Mine, Alberta 2019 - 2022, million tonnes 5 12 10.4 10 8.5 8.6 8 6 4 3.0 2 - 2019 2020 2021 2022 12
Slide 13: Donkin Mine Recent Events
Donkin Mine Recent Events Q2-2022 Q3-2022 Q4-2022 Q1-2023 Cline submits NS gov’t approves Commercial Operation ramping proposal to Mining Permit & sales up, 130 employees reopen the Mine operations resume commence on site
Slide 14: Donkin’s Seam-to-Market Infrastructure
Donkin’s Seam-to-Market Infrastructure DEEPWATER HARBOUR DONKIN MINE SITE MINED-OUT AREA 1863-2001: 258 mln tonnes coal mined Ongoing $4.5 mln program from Canadian Over $250 million invested by The Cline Coast Guard to allow Capesize vessel entry. Group into the mine since 2015. PEV COAL EXPORT TER
Slide 15: Donkin’s Transportation Advantage
Donkin’s Transportation Advantage Mine to Port Port to Market Kilometres %USD per tonne, Panamax size vessel Donkin Mine to Sydney Port 30 Cerrejon Mine (Colombia) to Puerto Bolivar Port 150 Bowen Basin (Australia) to Hay Point Port 250 US Appalachians to to US East Coast Ports 275 Alabama mines to
Slide 16: Steel and Metallurgical Coal Markets
Steel and Metallurgical Coal Markets
Slide 17: Steel Needs Metallurgical Coal
Steel Needs Metallurgical Coal “ Metallurgical coal is an essential ingredient in the production of steel Primary ingredients in the manufacturing of steel 6 High-quality steelmaking coal is essential in 0.7 & 1.4 1 pursuing our carbon neutral tonnes tonnes tonne strategy.” Metallurgical coal Iron-O
Slide 18: The World Needs Steel
The World Needs Steel World Crude Steel Consumption Steel Demand Drivers 1950-2040, million tonnes 7 Population | Urbanization | Clean Energy 2000 1800 1600 9B (vs. 8B in 2022) Global population in 2040; equivalent of adding a city the size of LA to the world every month for 15 years 8 1400 1200 100
Slide 19: Energy Transition a Key Demand Driver
Energy Transition a Key Demand Driver Renewable power requires more steel vs. fossil fuels Tonnes steel per megawatt of capacity 10 Average offshore wind turbine requires 1,800 tonnes of steel Wind offshore 190 Hydro 161 Wind onshore 124 Average onshore wind turbine requires 300 tonnes of steel Nucl
Slide 20: Steelmaking Coal Trade Up 9% in 2022 vs. 2021
Steelmaking Coal Trade Up 9% in 2022 vs. 2021 328 mln tonnes 9.1% (vs. 2021) 11 Source: See appendix note 7 20
Slide 21: …But Down vs. 2019 (Pre-COVID)
…But Down vs. 2019 (Pre-COVID) Top three steelmaking coal export countries 2022 exports versus 2019 (Pre-COVID) exports 12 United States Australia Canada 19.4% 11.5% 19.5% 21
Slide 22: Shrinking Pool of Funding for Coal Projects
Shrinking Pool of Funding for Coal Projects Global Coal Mine Capital Expenditures 2008 - 2022, billion dollars, real 2022 13 $450 $400 $350 $300 -6x $250 $200 $150 $100 $50 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 22
Slide 23: …Yet Demand is Increasing
…Yet Demand is Increasing Global Seaborne Metallurgical Coal Supply-Demand Imbalance Million tonnes 14 Supply Demand 120 Mt Supply Gap 23
Slide 24: Why Invest in Morien Resources
250% 200% 150% 100% 50% 0% -50% -100% Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-2 Why Invest in Morien Resources
Slide 25: Morien Analytics - A Clear Investment Case
Morien Analytics - A Clear Investment Case Investor’s Investor’s Description Reality Perceptions Perception Punitive Donkin Implied investor discount rate applied on 28% IRR Industry norm: 8% to 12% Discount Rate future Donkin cashflows Discounted Coal Investor inferred coal price required on Curren
Slide 26: Morien Offers Exceptional Value to Peers
Morien Offers Exceptional Value to Peers P/NAV Discount Rate Used in NAV Peer Group in footnotes 15,16 Peer Group in footnotes 15,16 0.0x 1.0x 2.0x 3.0x 0.0% 2.5% 5.0% 7.5% 10.0% Morien Mo rie n Morien Mo rie n Non- Peer Non- Peer Peer precious Peer precious Peer Peer peers Peer peers Peer Peer Peer
Slide 27: Donkin Royalty Revenue Projections
Donkin Royalty Revenue Projections @ 1 Million Tonnes Per Year @ 3 Million Tonnes Per Year $CAD 000,000 2,3 $CAD 000,000 2,3 $10 $40 $8 $30 $6 $20 $4 $10 $2 $0 $0 $100/t $200/t $300/t $400/t $100/t $200/t $300/t $400/t Coal Price (CAD $ per tonne) Coal Price (CAD $ per tonne) 27
Slide 28: Unique Level of Shareholder Alignment
Unique Level of Shareholder Alignment Capital Allocation Delivering Dividends Simplified model for illustrative purposes Dividend program reinstated in Q4 2022 17 Dividend • Paid quarterly § Declared a special • Designed to increase commensurate with increased dividend of $0.005/share royalties from
Slide 29: Morien is More Business Than Mining
Morien is More Business Than Mining Cash-In, Cash-Out Model Clear track record of wealth redistribution to shareholders; dividends and buy backs Shareholder Alignment 18% ownership, recent insider buying, low corporate overheads, no debt High Demand Sectors Bulk commodities; steelmaking coal and agg
Slide 30: MOX
MOX
Slide 31: Forward Looking Statements
Forward Looking Statements Some of the statements made by Morien Resources Corp. (“Morien”) in this presentation may constitute "forward-looking information" as defined under applicable securities laws. All statements in this presentation other than statements of historical fact, including those tha
Slide 32: Footnotes
Footnotes 1. Royalty peer companies include (alphabetical order): Altius Minerals, Ecora Resources, Electric Royalties, Elemental Altus Royalties, Empress Royalty, EMX Royalty, Franco-Nevada, Freehold Royalties, Labrador Iron Ore Royalty, Metalla Royalty, Newport Exploration, Nickel 28 Capital, Nova