Osisko Metals Incorporated · TSX:OM
Osisko Metals — Investor Presentation (March 2022)
33 slides from Osisko Metals's investor presentation, March 2022
Slide 1: Canada's Leading Base Metal Developer
Canada’s Leading Base Metal Developer TSXV: OM TSXV: OTCQX: OM OMZNF FRANKFURT: 0B51
Slide 2: Forward-Looking Statements & Cautionary Notes Regarding Technical Information
Forward-Looking Statements & Cautionary Notes Regarding TechnicalInformation This presentation (the "Presentation") contains ""forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this Present
Slide 3: Key Take-Aways
Key Take-Aways • Decades-long divestment from resource sector has led to global base metal reserve depletion. • Shift toward a green, sustainable economy coupled with post- COVID infrastructure stimulus will dramatically increase global base metal demand. • Transformation acquisition of Gaspé Copper
Slide 4: Base Metal Prices Are Building Momentum…
Base Metal Prices Are Building Momentum… 4
Slide 5: ….and Showing No Signs of Slowing Down.
….and Showing No Signs of Slowing Down. 5
Slide 6: Recycling Won't be the Answer for Base Metals
Recycling Won’t be the Answer for Base Metals 6
Slide 7: OM Project Locations
OM Project Locations Osisko Metals Projects Head Office 7
Slide 8: Gaspé Copper Option Overview
Gaspé Copper Option Overview Option to acquire 100% interest before June 30 2022 by executing Option Terms $C5,000,000 in drilling and completing DD. Price to Pay upon US$25,000,000 through issuance of a convertible note. Exercise of Option The note will be convertible by Glencore into units of Osis
Slide 9: Location and Support Infrastructure
Location and Support Infrastructure • Highway access from Gaspé Copper to deep- • Green hydroelectric available directly on sea ports and airport. site. 9 • Neighbouring community of Murdochville.
Slide 10: Gaspé Copper mine site today
Gaspé Copper mine site today 10 Potential Mount Copper new pit outline in green with 2022 DDH program.
Slide 11: Site Geology and deposits
Site Geology and deposits 0 500 metres Marble Aureole Marble Line Porphyry Mountain Skarn Front Copper Mountain Skarn Unaltered Zone E-44 Marble Line Limestone E-38 Former Murdochville Installations E-34 E-32 E-29 E-29-W E-30 Needle Mtn. E-28 Anticline 11
Slide 12: N-S cross section
N-S cross section Mine Gaspé: Section 28000 E (looking west) Needle Mtn. Porphyry Lake Anticline S 1000m Copper Brook Alteration Aureole N Alteration Aureole Porphyry Mtn. A B C Sea Level L1 E L2 L1 L1 L2 -500m L2 Hornfels+ skarn Fresh York Lake Fm. Indian Cove Fm. 0 1000 Shiphead + Forillon Fm. met
Slide 13: Pine Point
Pine Point Osisko Metals Projects Head Office 13
Slide 14: Support Infrastructure Already in Place
Support Infrastructure Already in Place • CN Rail Head, Highway and Flights • Paved Highway from Hay River to Site. from Edmonton to Hay River • Low-Cost Hydro-Electric Power Available • Property within 60 km of Hay River 14 On Site From Taltson Dam.
Slide 15: Access to International Concentrate Markets Via Rail
Access to International Concentrate Markets Via Rail 15
Slide 16: Global cost curve for zinc producers
Global cost curve for zinc producers Approx. 10% of the cost curve is unprofitable in this price environment US$1.25/lb Zinc Pine Point Source: SNL Pine Point PEA : Expected C1 cost of US$0.67/lb Potential to be within the second cost quartile on a cash cost/lb basis Well positioned on the cost curv
Slide 17: Annual production of zinc: potential to be top-ten global producer
Annual production of zinc: potential to be top-ten global producer 250,000 500 200,000 400 Contained Tonnes Contained Mlbs 150,000 300 100,000 200 50,000 100 0 0 1 2 3 4 5 6 7 8 9 10 Year Zinc (Metric) Lead (Metric) Zinc (Imperial) Lead (Imperial) Sourced from 39 open pits and 8 high grade deposits
Slide 18: Pine Point could produce one of the cleanest concentrates globally
Pine Point could produce one of the cleanest concentrates globally 18.00% 6,000 P: Above Penalty Level P: Above Penalty Level Minor Element Penalties (ppm) 16.00% 5,000 P Major Element Penalties 14.00% P Mn SiO2 P Hg 12.00% Fe 4,000 P P 10.00% Cd Pb 3,000 As 8.00% P Cu 6.00% 2,000 P P 4.00% P 1,000
Slide 19: Positive PEA outlines potential for significant zinc and lead production at Pine Point
Positive PEA outlines potential for significant zinc and lead production at Pine Point • NPV of C$500M and IRR of 29.6% (After-Tax) • Potential To Be Top-10 Global Zinc Mine On Production Basis • Potential to produce Premium High Grade Zinc Concentrate • Infrastructure In Place: • Hydroelectric Powe
Slide 20: Pine Point Leading North American Zinc Development project
Pine Point Leading North American Zinc Development project Pine Point Premium High-grade Concentrate 20
Slide 21: Pine Point Agreements Provide Community Support
Pine Point Agreements Provide Community Support • In 2019, Osisko Metals announced two separate Collaboration Agreements with indigenous communities located near the Pine Point Project: • Deninu K’ue First Nation • Northwest Territory Metis Nation • In 2017, Exploration Agreement signed with K’atl’o
Slide 22: Share Structure and BOD
Share Structure and BOD Significant Shareholders As at March 7, 2021 Osisko Group. . . . . . . . . . . . . . . . . . . . 20.3% Closing price . . . . . . . . . . . . . . . $0.40 CDPQ . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4% 52 week low/high . . . . . . .$0.35-$0.52 Management & Inside
Slide 23: Wrap-up
Wrap-up • Persistent chronic underinvestment in base metal markets. • Shift toward a green, sustainable economy coupled with post- COVID infrastructure stimulus will dramatically increase global base metal demand. • Base metal production deficit looming as only handful of development projects are in
Slide 24: Metal Resource Investment is Coming Back!
Metal Resource Investment is Coming Back! “Our global industry will need to SIGNIFICANTLY INCREASE THE SUPPLY OF VARIOUS RAW MATERIALS Ivan Glasenberg, CEO of Glencore, February 2021 “By 2030, more than half of passenger cars will be electric. To meet this demand, global battery manufacturing capaci
Slide 25: Contacts
Contacts 1100, av. des Canadiens-de-Montréal Investors and General Inquiries: Suite 300 info@osiskometals.com Montreal, Qc, H3B 2S2 Tel: 514-940-0670 Fax: 514-861-1333 25
Slide 26: Looking to the future: Zinc-Air and Zinc-Hybrid Flow Batteries for energy storage
Looking to the future: Zinc-Air and Zinc- Hybrid Flow Batteries for energy storage Renewable Energy Sources Face Storage and Distribution Issues Lithium Batteries too Costly for Grid Storage Lithium Supply Will Be Absorbed by Transportation Zinc Battery Grid Storage is Low Cost and Efficient Potenti
Slide 27: No Savior for the Zinc market…
No Savior for the Zinc market… Lack of investment in Zinc markets both in China and ROW will result in long-term supply issues 27 Source: Wood Mackenzie and BMO Capital Markets
Slide 28: MRE confirms potential for further resource expansion
MRE confirms potential for further resource expansion • MRE within a total of 47 deposits of which 11 remain open along strike. Key focus of 2021-2022 drilling campaigns. • Drilling in the East Mill Zone successfully pushed pit boundaries, demonstrating an opportunity to connect neighboring pit and
Slide 29: Project boundary location
Project boundary location Large Near Surface 65 km-long Mineralized Resource Base Trend R190 29
Slide 30: Deposit styles at Pine Point (MVT type)
Deposit styles at Pine Point (MVT type) W-85 A-70 Subtle Surface Watt Mountain Shale Depressions Collapse Collapse Tabular Sulfur Point Fm (Dolomitized) Prismatic Prismatic Pine Point Fm. Pine Point Fm Poorly Investigated Carbonates X-15 30m “B Spongy” Unit (Base of Pine Point) N-204 0m 200m 41% Zn+
Slide 31: New hydrogeological model is significant de-risking milestone
New hydrogeological model is significant de-risking milestone C1 Cluster 31
Slide 32: Leveraging the hydrogeological model
Leveraging the hydrogeological model A first for Pine Point – Providing unparallel insight into dewatering requirements • Water inflow reduced by 46% when using new hydrogeological model in C1 cluster. • Combined with high efficiency cluster mining technique, aggregate reduction of 63% of inflow rat
Slide 33: Appendix - PEA Financial Overview
Appendix - PEA Financial Overview Internal Rate of Return ("IRR") After Taxes 29.6% After-tax Net Present Value ("NPV") (Discount Rate 8%) $500M After-Tax Payback Period (Years) 2.8 Pre-Production CAPEX (including $71.2M Contingency) $555M Average Annual LOM Production Zinc 327Mlb Average Annual LOM