Century Global Commodities Corporation · TSX:CNT
Century Global Commodities — Investor Presentation (August 2023)
47 slides from Century Global Commodities's investor presentation, August 2023
Slide 1: Corporate Presentation
Corporate Presentation August 2023 TSX:CNT ∙ www.centuryglobal.ca Joyce Lake DSO Iron Ore, is the most advanced flagship project of Century Global and an award- winning development project in the Labrador Trough, Canada at feasibility study (2022) with an after tax NPV8% of $184.6M and IRR 20% 1
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 Corporate Highlights The Joyce Lake DSO Project Other Iron Ore Projects 3
Slide 4: Corporate Highlights
oO Corporate Highlights A 4% CENTURYGL@BAL
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 (Update of BFS) 2023 (continuing EA) Joyce Lake + ▪ ~15% holding in CLM ▪ Founded Century to invest ~10% ▪ Century (CNT) went public in 2011 on ▪ Completed B
Slide 6: Total Multi-billion tonne Iron Project Value ~$5.3B
Total Mult-billion tonne Iron Project Value ~$5.3B 3 Most Advanced Projects at BFS or PEA stages High-volume Full Moon PEA: IRR 15%, NPV C$5.8B (pretax) Joyce Lake @ BFS (NI 43-101, 2022) (1) Pre-tax NPV8% C$357.2M Post-tax NPV8% C$184.6M Pre-tax/Post-tax IRR 27.72% / 20.01% Pre-/Post-tax Payback (y
Slide 7: Financial Highlights
Financial Highlights Share Structure (@ Aug 11, 2023) Financial Highlights – Jun 30, 2023 C$ M Directors, officers & major shareholder 49.1% (19.6%) & MinMetals (3.9%) 23.5% Cash** 4.9 Public shareholders 27.4% Marketable securities 0.4 Total 100% Receivables, Prepaids, Inventories 4.8 Shares & Opti
Slide 8: 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 under IAAC technical review) in a strong iron ore market at a market cap ~$5.3M below working capital* of $7.6M Hi-grade/low-cost/ Joyce Lake is a high-grade low-cost (US$47.1/t FOB and $270.4M
Slide 9: Directors, Advisors and Management
Directors, Advisors and Management Sandy Chim, MBA, CA, CPA Dwight Ball Jionghui Wang, AusIMM Peter Jones, P. Eng Chair & CEO, | director of ASX, Vice-Chair | 13th former Chairman of Minmetals Exp. Chair, Advisory Board | TSXV, AIM, HKEx cos.| early Premier of Newfoundland & Dev. Co. | Dep. Gen. Mgr
Slide 10: The Joyce Lake Project
The Joyce Lake Project Simple bite size low capex intensity (US$11/t) quarry project of 2.5Mtpa output in a favourable cycle with a definitive study completed in December 2022 10
Slide 11: Joyce Feasibility Study Top KPIs
Joyce Feasibility Study Top KPIs (NI 43-101, Dec 13, 2022) C$185M 20.01% 3.7 Years C$270M C$61.32 Post-tax NPV8% Post-tax IRR Post-tax Payback Initial Capex FOB Opex/dmt Mineral resource estimate General study Environmental permitting management, Geotechnical considerations mining, including pit slo
Slide 12: Joyce 2022 Feasibility Key Parameters
Joyce 2022 Feasibility Key Parameters Definitive Feasibility Study Highlights Schefferville, Labrador Trough 24Mt M&I resources @~59% Fe + inferred of 0.83Mt 24Mt+ @>62 % Fe (1) 1 17.4Mt @~60% Fe reserves (2) (3) Joyce Annual production of ~1/3 lump & ~2/3 fines for 7+ yrs 2.5Mtpa (~5 yrs > Fe 61%,
Slide 13: Feasibility Study Resources and Reserves
Feasibility Study Resources and Reserves Joyce Lake Mineral Resources (1) Joyce Lake open pit deposit Joyce Lake 17.4Mt ~60% Fe reserve Cut-off Category Fe Tonnes Fe SiO2 Al2O3 Mn Tata Measured & Kawawachikamach 50% Fe1 23,970,000 58.63% 13.22% 0.54% 0.75% Indicated Matimekush Inferred 50% Fe1 830,0
Slide 14: Quarrying with Dry Crush/Screen (Non-winter months only)
Quarrying with Dry Crush/Screen (Non-winter months only) 1. Simple quarry style dry crushing and screening during non-winter 1 months to produce lump and fines 2. Fines are transported during non-winter months 3. Lump is dried from 4% to 2% moisture and stockpiled at site during non-winter months an
Slide 15: All-year product transportation (trucking, railing & shipping)
2.5 Mtpa Crushing / Transportation Strategy Transporting fines and drying lump (4%→2% moisture) during non-winter months for year-round product transportation Crushing, Screening, Lump Drying All-seasons Transportation Schefferville All-year product transpiration (trucking, railing & shipping) 217Km
Slide 16: Innovative Crushing & Logistic Strategy
Innovative Crushing & Logistic Strategy Drying 1/3 low moisture (4%→2%) lump products in summers for winter shipping Non-winter months Winter months May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Processing Mining All-year mining Non-winter lump crushing, screening No winter processing Lump drying
Slide 17: Simple 2.5Mtpa Quarry Operation
Simple 2.5Mtpa Quarry Operation Dry crushing & screening with lump dried in summer to enable all-year transportation Mining & Crushing / Screening / G&A = C$27.74/dmt Mining: C$15.46/dmt Crush & screen: C$4.61/dmt G&A: C$7.67/dmt Sinter Fines Lump Ore Open-Pit Mining Crush & Screen with lump dried i
Slide 18: Joyce 2022 Feasibility Economics Summary
Joyce 2022 Feasibility Economics Summary Product Operating Cost C$/dmt Initial Capital Cost C$M Subtotals (C$M) Mining $ 15.46 Mine & Plant Crushing Plant $ 3.72 Mine Preparation $ 20.65 NPV8% Drying Plant $ 0.89 Processing Plant $ 12.61 $ 59.57 $357.2M Mining/Processing Subtotal $ 20.07 Mine Mobile
Slide 19: Joyce Feasibility: CFR (China) Opex Breakdown
Joyce Feasibility: CFR (China) Opex Breakdown FOB Opex (C$61.32 /dmt) Breakdown CFR China Opex (US$73.28/dmt) Breakdown Feasibility FX assumption: C$1 = US$0.77 19
Slide 20: Logistics: The Major Component in Opex
Logistics: The Major Component in Opex FOB Opex (C$61.32/dmt) Breakdown CFR China Opex (US$73.28/dmt) Breakdown Land logistics Opex is 55% of FOB (Sept Iles) Opex Land & ocean logistics Opex represent 70% CFR (China) Opex Ocean freight; Mining / G & A; Processing; $7.67 ; US $24.67 ; 34% US $15.45 ;
Slide 21: 2015 vs 2022 Joyce Feasibility Studies
2015 vs 2022 Joyce Feasibility Studies Market Conditions & Actions Impact on Results Inflation Substantial cost and price inflation since 2015 Iron ore price Inflation elevates iron prices as well Return of oligopoly sets favourable price dynamics Innovation Crushing and lump drying strategy reduces
Slide 22: Inflation Impact: 2015 vs 2022 FS
Inflation Impact: 2015 vs 2022 FS 2015 – 2022 Cumulative Cost Inflation impacts of Major Components Global Inflation 26% dmt cost cost wmt dmt litre LOM LOM % Per Unit Unit Per Per Per Total Total Labour opex 37% G&A 46% Fuel cost 32% Truck haulage 91% Ocean freight 64% Rail cars 60% Haul trucks 19%
Slide 23: 2015 vs 2022 FS Ore Transportation Monthly Tonnage
2015 vs 2022 FS Ore Transportation (2.5Mtpa) 350,000 2015 vs 2022 Annual Ore Transportation Distribution Illustration ▪ All-year transportation of ore in 2022 2022 FS (All-year) FS is made possible by drying & 300,000 2015 FS (Seasonal) stockpiling lump during non-winter 250,000 months from 4 to 2%
Slide 24: 2015 vs 2022 Feasibility Opex Changes
2015 vs 2022 Feasibility Opex Changes To counter high inflationary environment, the project introduces innovative measures making possible all-year product transportation to substantially reduce opex (by drying lump in non-winter months allowing year-round product transportation) Changes in Opex (C$
Slide 25: 2015 vs 2022 Study Opex & Price Changes
2015 vs 2022 Study Opex & Price Changes All-year transportation reduces land logistics costs mitigating cost increases due to inflation making Joyce Lake competitive compared to traditional operations in the area Opex Major Component Change Analysis in C$/dmt Changes in Opex (C$/dmt) between 2015 an
Slide 26: 2015 vs 2022 Feasibility Capex Changes
2015 vs 2022 Feasibility Capex Changes 2015 vs 2022 Major Capex Component in C$M 2015 vs 2022 Capex Component Net Change in C$ M $100 107% 110% 90% B $90 B $80 D 70% A 50% $70 B 44% $60 C 30% A C $50 B 10% D -2% -6% -10% $40 -30% $30 -50% $20 -64% -70% $60.60 $52.93 $59.57 $60.97 $29.44 $19.18 $69.5
Slide 27: Complete Transportation Infrastructure
Complete Transportation Infrastructure Capesize bulk carrier accessible ports available to ship to seaborne markets Rail Port of Sept Iles Tsh (TSH) ▪ 2 deep-water year-round ports at Sept-Iles iueti ▪ 597 km rail operated by common carriers connected to Joyce for shipping to China & Europe n Rail (
Slide 28: Development Roadmap
Development Roadmap 2023 2024 2025 2026 Major milestones Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 IAAC (+NL) draft EIS tech review Combined (IAAC+NL-ECC) EIS EIS public review & decision Negotiate IBAs & BAs Hydro & geotech tests Permitting complete Pre-construction Construction Open pit production
Slide 29: Area DSO Exploration Targets at Joyce Lake
Area DSO Exploration Targets at Joyce Lake Target Exploration Summary ▪Lac Sans Name Lac Sans Chef ▪ 1400 m x 600m mineralization zone 10 km NW of Joyce Chefo 10Km north of Joyce with massive hematite outcrops; TFe > 62% ▪ Sub-synclinal closure with strong gravity anomalies as Joyce ▪ 2008 and 2012
Slide 30: 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 30
Slide 31: 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 27.7%, NPV C$357M (pretax) IRR 20%,
Slide 32: 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 17.4 Mt P&P2 reserves (Fe %) - - - - 17.4 Mt (59.94%) 24.0 Mt3 M&I2 resou
Slide 33: Counter-cyclical food distribution business unit
Counter-cyclical food distribution business unit with seven 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 ge
Slide 34: Value Fundamentals of Century
Value Fundamentals of Century (1) Large gap between the sum of the parts & a market cap of $5.3M Joyce Lake DSO project at BFS $185M post-tax NPV8% in feasibility study at a post-tax NPV Project High-grade / low cost price of US$124.95/t 62% (YTD July 2023 average at ~US$117/t.) $185M @US$124.95/t F
Slide 35: Appendix
Appendix A 4X CENTURYGL* BAL 35
Slide 36: An Award-Winning Team
An Award-Winning Team 2014 2014 2016 Gold Business Excellence Silver Award in Professional, Explorer of the Year Award Scientific and Technical Services Canadian Institute of Mining Newfoundland Branch George Ogilvie, President of Rt. Hon. Jean Chrétien EVP Peter Jones receiving CIM - Newfoundland c
Slide 37: The Iron Ore Market
The Iron Ore Market The beginning of a new cycle 37
Slide 38: Strong Market Recovery
Strong Market Recovery Underpinned by a quiet continuously growing China in a supply market limited by lack of investment for years US$/ C3 Freight (Brazil-China) TSI FE 62% Spot Brazil FOB 240 230 220 210 TSI Fe 62% Daily Spot Price CFR China vs Brazil Daily FOB (US$) 200 US$105.65/t 190 Aug 11, 20
Slide 39: Demand
Demand Steady Incremental Growth The beginning of a new cycle 39
Slide 40: Share of imported iron as % of total iron ore consumption
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 1800 Crude steel output (Mt) Imported iron ore (Mt) Domestic iron ore output (Mt) Scrap steel consumption (Mt) Import: % tot
Slide 41: Continuing Urbanization of a Well Industrialized Economy
Continuing Urbanization of a Well Industrialized Economy ▪ China is a well industrialized economy (largest production output in the world = ~sum of the next 5 countries) still Urbanized Population % and Steel Output in China urbanizing steadily (already for half a China has been urbanizing just abou
Slide 42: Supply
Supply An Oligopolistic Structure The beginning of a new cycle 42
Slide 43: FMG's emergence sparked an expansion spree by the Big 3
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 44: Big 4's massive expansion drove cost down to ~US$20/t
Big 4’s massive expansion drove cost substantially to ~US$20/t (FOB), total EBITDA & dividends up on Flat Shipments Annual Cash CashCost CostUS$/t (FOB) (FOB) (2011-2022) (2011-Present) Total Big 4 Volume vs EBITDA (2011-2022) Total Big 4 Dividends (2011-2022) US $/t 65 tonnes US$ M (000's) Flat Sal
Slide 45: An aberration of commodities cycles: Outstanding iron ore price performance
An aberration of commodities cycles: Outstanding iron ore price performance seems sustainable with no major disruptions in view 1400000 180.00 $167.75 ▪ Iron ore price has been rising $161.71 1,250,000.00Kt dramatically from the bottom 160.00 1,106,906.00Kt after the last major expansions 1200000 1,
Slide 46: An aberration of commodities cycles: Outstanding iron ore price performance
An aberration of commodities cycles: Outstanding iron ore price performance seems sustainable with no major disruptions in view ▪ Iron ore price has been rising 1,145,964Kt 1,043,153Kt 1,107,011Kt dramatically from the bottom $167.75 1,067,496Kt $180 1,106,906Kt after the last major expansions 1,146
Slide 47: China demand remains the stabilizing factor for a positive market outlook
China demand remains the stabling factor for a positive market outlook . . . 2022 Global Seaborne Iron Ore 2022 Global Seaborne Iron Ore 2022 Iron Ore Consumed in Supply/Export = 1,519.4Mt Demand/Import = 1,519.4Mt China = 1,354.9Mt Domestic Ex-Big 4 Ex-China import Supply 408.22 Mt 412.54 Mt 248Mt
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