Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Non-Deal Roadshow (November 2022)
30 slides from Euro Manganese's roadshow presentation, Nov 22, 2022
Slide 1: The Chvaletice Manganese Project: Poised to Support the Energy Transition
For personal use only THE CHVALETICE MANGANESE PROJECT Poised to Support the Energy Transition Investor Presentation for Australian Non-Deal Roadshow November 2022
Slide 2: Forward-Looking Statements and Risks Notice
Forward-Looking Statements and Risks Notice Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information For personal use only involve known and unknown risks, uncert
Slide 3: Manganese, the affordable battery metal, is essential in cathode chemistries
MARKET OVERVIEW Manganese (Mn), the affordable battery metal, is essential in cathode chemistries High-purity manganese, like cobalt, stabilises nickel For personal use only in a modern Li-ion EV battery, yet it accounts for only 1-2% of the cost of cathode materials kg $ 7% Cathode Cost Mn 17% Li 1
Slide 4: High Mn chemistries in demand by OEMs
MARKET OVERVIEW High Mn chemistries in demand by OEMs in order to make EVs more affordable Battery Chemistry Roadmap for High Manganese Cathode Chemistries OEMs that have announced intention For personal use only (NMC370 ~70% Mn, LMNO ~ 40% Mn, LMFP ~40-60% Mn, NMx ~30% Mn) to used High Mn applicati
Slide 5: Key demand drivers: EV market growth, supercharged with high Mn chemistries
MARKET OVERVIEW Key demand drivers: EV market growth, supercharged with high Mn chemistries Global High-Purity Manganese Demand & Supply to 2030 Forecast Demand Growth For personal use only (thousand tonnes of Mn) Forecast HP Mn demand growth is based on EV and other battery applications. HP Mn dema
Slide 6: Customers and regulators committing to sustainable, traceable, local supply
MARKET OVERVIEW Customers and regulators committing to sustainable, traceable, local supply For personal use only Demand for locally-sourced, low-carbon battery raw materials is increasing OEM, Battery & Cathode Makers Regulators Critical Raw Materials Act • Focusing on strategic applications • A mo
Slide 7: Battery metals company poised to become a leading producer of high-purity Mn
COMPANY OVERVIEW Battery metals company poised to become a leading producer of high-purity Mn For personal use only Focused on delivering fully-traceable, responsibly-produced high-purity Mn products for the EV industry Set to become Europe’s primary producer of high-purity manganese products Strate
Slide 8: Chvaletice delivers high-purity manganese supply security for Europe
PROJECT OVERVIEW Chvaletice delivers high-purity manganese supply security for Europe… Stable production over 25-year project life, supported by 27 Mt reserve base For personal use only Strategically located • Czech Republic is a stable and business-friendly jurisdiction • In the heart of European E
Slide 9: … with exceptional ESG benefits
PROJECT OVERVIEW … with exceptional ESG benefits Chvaletice project delivers wide-ranging benefits for all stakeholders For personal use only Use of Best Available Technologies for Low Carbon Footprint • Net positive environmental benefits from remediation of historic tailings • MoU to use 100% rene
Slide 10: Demonstration plant enables large-scale product samples
DEMONSTRATION PLANT Demonstration plant enables large-scale product samples For personal use only Strong demand for Demonstration Plant and Pilot Plant samples from the Chvaletice Project by 12 companies, (OEMs, EV battery and cathode manufacturers, and specialty alloy manufacturers) The Demonstrati
Slide 11: Process uses proven, conventional and commercial technologies
DEMONSTRATION PLANT Process uses proven, conventional and commercial technologies For personal use only 6. Electrowinning Module (a purification step as well) 5. Two Stage Purification Module 7. HPEMM Dissolution, Deep Final Purification Module 8. HPMSM Crystallisation Module 11
Slide 12: Production profile over 25-year project life
FEASIBILITY STUDY Production profile over 25-year project life Commissioning in 2026; 2027 ramp up leading to stable production over life of project For personal use only Chvaletice HPEMM/HPMSM Production T ‘000s % Mn 7.98 7.79 125 7.41 7.44 7.63 8 7.29 105 100 100 100 100 100 7 6 85 65 5 65 4 45 3
Slide 13: Product quality, ESG credentials, and localization deliver a price premium
FEASIBILITY STUDY Product quality, ESG credentials, and localization aspects deliver a price premium European/North American Price Premium vs China Feasibility Study EU Price Forecasts for HPMSM For personal use only The only regular price reporting is ex-works China Base Case There is no western pr
Slide 14: Key highlights: strong cashflow and margins for years to come
FEASIBILITY STUDY Key highlights: strong cashflow and margins for years to come ($ in USD) Base Case* Upside Case (CPM Group Price Forecast) For personal use only NPV 8% IRR Mn Production NPV 8% IRR Mn Production $1.34B 22% 48ktpa $1.79B 24% 48ktpa Net Present Ungeared, (100Kt HPMSM Net Present Unge
Slide 15: Project operational costs based on current cost environment
FEASIBILITY STUDY Project operational costs based on current cost environment Energy and reagents constitute ~68% of operational costs For personal use only Operational Costs ($/t of Plant Feed) $214.5 19.8 Royalty, freight & insurance, selling Reagents and energy account for ~30% and ~38% of opex 9
Slide 16: Project capital costs include a robust contingency
FEASIBILITY STUDY Project capital costs include a robust contingency Capex figure reflects post-COVID supply chain environment For personal use only Capital Cost Breakdown ($M) $757.3 Robust +$100M contingency (includes $78M contingency and 78.4 $25M of growth capital on direct costs). Contingency 4
Slide 17: Project financing strategy
PROJECT FINANCE Project financing strategy: Debt adviser Stifel, Equity adviser process underway Strategic Investment Private Offering Public offering For personal use only At project level, based on NAV At corporate level, based on • EMN shareholders • OEMs & key off-takers re-rated share price • I
Slide 18: Off-take tender process underway with parties across the value chain
OFFTAKE Off-take tender process underway with parties across the value chain Increasing trend of backward integration, with Auto OEMs most dominant in shaping industry relationships For personal use only ▪ Lithium ▪ Nickel Financial support ▪ Cobalt & off-take ▪ Manganese Resource + Battery cells pr
Slide 19: Permitting & next steps: final investment decision by H2 2023
OUTLOOK Permitting & next steps On track to deliver final investment decision by H2 2023 For personal use only H2 H1 H2 2024 2025 2026 2022 2023 2023 Permitting ▪ Submit ESIA ▪ Submit land ▪ Permitting - - ▪ Operational planning & complete end permits construction of H2 permit Project ▪ Project ▪ Pr
Slide 20: The battery plants in North America require pCAM and CAM plants
GROWTH HORIZON The battery plants in North America require pCAM and CAM plants For personal use only 20
Slide 21: The IRA is driving battery and cathode makers to locate plants in North America
GROWTH HORIZON The IRA is driving battery and cathode makers to locate plants in North America For personal use only North America is a growth market with no local HP Mn production Situation North America has no current HP Mn processing capacity to supply large number of battery gigafactories and PC
Slide 22: Addressing this demand is a logical addition to our portfolio
GROWTH HORIZON Addressing this demand is a logical addition to our portfolio For personal use only HPEMM to HPMSM at Bécancour gives Euro Manganese first-mover advantage in a strategic, North American location Development plans A scoping study is underway to evaluate a site in Bécancour, Québec for
Slide 23: Euro Manganese's Value Proposition
WHY INVEST Euro Manganese’s Value Proposition For personal use only EMN is well positioned to create significant value for its shareholders Privileged Asset Well-Funded • Chvaletice orebody (Czech Republic) is the only sizable • Project backed by EU institutions (EBRD, EIT InnoEnergy, manganese rese
Slide 24: Executive leadership team
Executive leadership team For personal use only Matt James Martina Blahova James Fraser Fausto Taddei Andrea Zaradic Jan Votava DIRECTOR, PRESIDENT & CHIEF FINANCIAL OFFICER VP COMMERCIAL VP CORPORATE DEVELOPMENT & VICE PRESIDENT OPERATIONS MANAGING DIRECTOR OF CHIEF EXECUTIVE OFFICER CORPORATE SECR
Slide 25: Contact Details
For personal use only info@Mn25.ca CONTACT DETAILS www.Mn25.ca Dr. Matthew James Martina Blahova TSXV: EMN President & CEO CFO ASX: EMN mjames@mn25.ca martina@mn25.ca OTCQX: EUMNF M: +44 (0)7472 296 688 M: +1 778 968 8994 Frankfurt Stock Exchange: E06 T: +1 604 681 1010 ext.104
Slide 26: Corporate information about Euro Manganese
ABOUT US Corporate information about Euro Manganese For personal use only EMN is a BC company incorporated in 2014 and listed publicly in 2018; its head office is located in Vancouver TRADING SYMBOLS CORPORATE PRESENTATION TSX-V and ASX: EMN OTCQX: EUMNF Frankfurt: E06 Our most-recent corporate pres
Slide 27: Q3 2022 Financial highlights and position
FINANCIAL SNAPSHOT Q3 2022 Financial highlights and position Fully funded to FID and ~12 months of corporate G&A For personal use only Cash Balance – April 1, 2022 C$ 32.1 M Advancing the feasibility study and other operating costs (C$ 3.1 M) Demonstration plant under construction (C$ 0.5 M) Deposit
Slide 28: Resources converted to Reserves with 98.4% classified in Proven category
FEASIBILITY STUDY Resources converted to Reserves with 98.4% classified in Proven category Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adapted by CIM Council, as For personal use only amended, which are materially identical to the JORC Code. Ch
Slide 29: Notes to Mineral Reserve Statement
Notes to Mineral Reserve Statement 1. Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM For personal use only Council, as amended, which are materially identical to the JORC Code. 2. The Mineral Resource is inclusive of the Mineral Res
Slide 30: Compliance Statements
Compliance Statements Competent and Qualified Persons Statement For personal use only All production targets for the Chvaletice Manganese Project referred to in this presentation are underpinned by estimated Proven and Probable Reserves prepared by competent persons and qualified persons in accordan