Evolution Energy Minerals Limited · ASX:EV1
Evolution Energy Minerals — Investor Presentation (March 2024)
34 slides from Evolution Energy Minerals's investor presentation, March 2024
Slide 1: Corporate Presentation
Corporate Presentation ASX:EV1 evolutionenergyminerals.com.au
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about Evolution and its activities, which is current as at the date of this Mineral Resources presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it The information in this pr
Slide 3: Evolution Energy Minerals Snapshot
Evolution Energy Minerals Snapshot Definitive Feasibility Development-ready coarse flake graphite Study Outcomes project in Tanzania (NPV US$338M, IRR 32%) EVOLUTION ENERGY MINERALS Binding offtake agreements covering 90% of production Targeting Decision to Mine by Q1 2025 Strategic partnership with
Slide 4: Value Proposition
Value Proposition Structural Shift in Graphite World-class flake size High margin operation EVOLUTION ENERGY MINERALS Industry Coarse flake qualified with the Chilalo’s flake size drives higher global #1 (YXGC) revenue ensuring a high-margin Chinese export controls operation, even at today’s prices
Slide 5: Corporate Overview
Corporate Overview 261.2M $0.105 $27.4M Major Shareholders Shares on Issue Share Price Market Cap ARCH Sustainable Resources Fund 22.26% 48.9M1 $3.6M2 $23.8M EVOLUTION ENERGY MINERALS Unlisted Options Cash Enterprise Value Marvel Gold Limited 19.14% BTR New Materials Group 9.90% Share Price (12 mont
Slide 6: Board & Management
Board & Management BOARD BOARD OF DIRECTORS MANAGEMENT TEAM Phil Hoskins MANAGING DIRECTOR Phil is the Executive responsible for the development of Chilalo since 2014. Nine years’ graphite experience. Mike Spreadborough NON-EXECUTIVE CHAIRMAN Mike has over 30 years of experience in Grant Dyker John
Slide 7: Graphite Market Analysis
Graphite Market Analysis
Slide 8: Graphite - The Dominant Battery Mineral
Graphite - The Dominant Battery Mineral Graphite is the dominant material across all commercial battery technologies 8.9kg 13.3kg Lithium Cobalt 0.5kg REE 24.5kg 100% 0.1kg Manganese Zn 39.9kg Nickel EVOLUTION ENERGY MINERALS 0.3kg 80% Others 53.2kg Copper 60% 66.3kg Graphite 40% 55% 51% 52% 47% 50%
Slide 9: Synthetic vs Natural
Synthetic vs Natural Synthetic vs Natural (2023 – 2040) Is synthetic 70% Natural a long-term 60% 50% 61% 61% Synthetic threat? 40% 41% 39% EVOLUTION ENERGY MINERALS 30% 35% 31% Synthetic graphite and natural graphite bring different performance 20% characteristics to the anode and are 10% often blen
Slide 10: Graphite operations uneconomic without coarse flake
Graphite operations uneconomic without coarse flake Flake Graphite Production Cost Curve – source Benchmark Mineral Intelligence (BMI) US$/t 2,000 Chilalo revenue1 1,800 1,600 EVOLUTION ENERGY MINERALS 1,400 Companies with majority fines will 1,200 have their average 1,000 selling price ‘anchored’ a
Slide 11: Qualification into value added products is critical
Qualification into value added products is critical Traditional Markets Value Added (e.g. refractories) Extensive Qualification Markets $ $$$ US$3,000/t Expandable graphite for: EVOLUTION ENERGY MINERALS Fuel Cells Coarse Flake Foil (+150µm to +500µm) Seals Gaskets Conductivity enhancement Fire reta
Slide 12: Chilalo Graphite Project
Chilalo Graphite Project
Slide 13: DFS Outcomes
DFS Outcomes Definitive Feasibility Study Outcomes US$338M 32% 17 Yrs EVOLUTION ENERGY MINERALS NPV8 (Post-tax) IRR (Post-tax) Mine Life US$120M US$82M 3.3 Yrs Pre-production capital cost Average annual Post-tax payback period (incl. 10% contingency and pre-strip) EBITDA 13
Slide 14: Chilalo's Competitive Advantage
Chilalo’s Competitive Advantage Product quality drives economics and strategic interest EVOLUTION ENERGY MINERALS 01 02 03 Coarse flake sales Product performance World-class battery drive margins – offtake with global anode company (BTR) industry leaders validates Chilalo graphite battery performanc
Slide 15: Battery Graphite at Negative Cash Cost
Battery Graphite at Negative Cash Cost Coarse flake ‘by-product credits’ the key $/t US$773/t G&A POWER LABOUR EVOLUTION ENERGY MINERALS LOGISTICS COARSE FLAKE REVENUE PROCESSING Chilalo fines MINING cash cost net of credits $0 Coarse flake ‘by-product credit’ isn’t available to all mines • Numerous
Slide 16: Proposed Chilalo Site Layout
Proposed Chilalo Site Layout EVOLUTION ENERGY MINERALS West Pit Plant Central Pit 16
Slide 17: Status of Project Financing
Status of Project Financing Why do the banks like Chilalo? Debt Process on Track Low Capex DFS and Tanzanian Framework Agreement Important to commercial banks in the process EVOLUTION ENERGY MINERALS High Margin EOI’s from multiple financial institutions Coarse flake provides buffer to weaker fines
Slide 18: Project Cost Optimisations
Project Cost Optimisations Reduced logistics costs Reduced power costs • Current model based on 20% solar / 80% thermal/LPG • Tanzanian Government implementing transmission line • Prospect of regular container shipping construction projects through Mtwara port • Potential to access grid power to • P
Slide 19: Project Expansion Opportunity
Project Expansion Opportunity Exploration Upside • Reduced mining costs and expansion potential • Additional mineralised zones identified but not in mine plan • Over 8km of mineralised EM conductors to follow up LOW-COST PROJECT EXPANSION OPPORTUNITIES TO BE CONSIDERED IN 2025 Evolution Energy Miner
Slide 20: EV1 Offtake Strategy
EV1 Offtake Strategy ktpa 60 1.5 3.0 4.5 7 7 5.5 Coarse Flake Offtake Fines Flake Offtake 50 • 30,000tpa for 3 years • 100% of fines for 3 years EVOLUTION ENERGY MINERALS Concentrate Production (ktpa) (+3 yr option) • 70% of concentrate 40 revenue • Mechanism to assign to 30 30 30 34 32.5 joint down
Slide 21: BTR Profile
BTR Profile Listed on the Beijing Stock Exchange (market cap US$3.4 billion) 26% overall anode market share, 60% natural graphite anode market share EVOLUTION ENERGY MINERALS Within China, BTR have 5 natural graphite production bases, 9 synthetic graphite production bases, 2 silicon anode production
Slide 22: Evolution's ESG Commitment
Evolution’s ESG Commitment Final payment of ESG cash Framework Life Cycle compensation Assessment under RAP Maiden Strategic investment Sustainability Stakeholder EVOLUTION ENERGY MINERALS by ARCH Sustainable Report survey on Resources Fund UN SDGs April 2021 2024 Approval of Improved ESIA compliant
Slide 23: Tanzania: Key milestones achieved in 2023
Tanzania Key milestones achieved in 2023 Framework and Shareholders Agreement signed EVOLUTION ENERGY MINERALS Mining licence, prospecting licence and environmental permits all refreshed Kudu Graphite JV with Tanzanian Government established What’s next in 2024? Tanzanian Government infrastructure M
Slide 24: Chilalo – Community Focused Development
Chilalo – Community Focused Development CONSERVATION TREE VEGETABLE AGRICULTURE NURSERIES PROGRAM EVOLUTION ENERGY MINERALS Supply of materials, training and Supply of materials, training and Supply of materials, training and ongoing coaching and mentoring to ongoing coaching and mentoring to ongoin
Slide 25: Vertically Integrated Strategy
Vertically Integrated Strategy
Slide 26: China's export controls positive for Ex-China graphite
China’s export controls positive for Ex-China graphite • China controls graphite and anode Li-ion battery raw materials supply Flake Graphite Spherical Graphite markets Exports Exports chain by country (tons) (tons) • China export controls in place from 1 December 2023 November 2023 23,343 12,187 •
Slide 27: US Downstream Opportunity
US Downstream Opportunity US by the numbers: Select US Gigafactories 2030 battery demand1 – 1,180GWh EVOLUTION ENERGY MINERALS 2030 anode materials1 – 1,298ktpa ~US$47B Inflation Reduction Act (IRA) Production and EV tax credits US$40B via DoE Advanced Technology Vehicles Manufacturing Loan Program
Slide 28: Impact of the IRA on OEM anode sourcing
Impact of the IRA on OEM anode sourcing What is IRA compliance? OEM dilemma given China dominate graphite / anode production 1. Extracts, processes or recycles critical minerals in the US or FTA Continue to buy Chinese anodes > lose US$7,500 country tax credit > EVs less competitive price point EVOL
Slide 29: EV1 vertical integration strategy
EV1 vertical integration strategy EV1 is assessing the battery anode opportunity in North America to complete a vertically integrated ‘mine to battery’ strategy BTR’s proven technology, IRA compliant – solving EVOLUTION ENERGY MINERALS the OEM dilemma Access to Tier 1 customers NEXT STEPS EV1 is adv
Slide 30: Key Catalysts
Key Catalysts 1 Delivering on project 2 EVOLUTION ENERGY MINERALS optimisations to improve Introducing strategic economics investors / partners 30 3 Chilalo project financing 4 Downstream scoping study, site selection & partnerships
Slide 31: Phil Hoskins, Managing Director
Phil Hoskins Managing Director E: info@ev1minerals.com.au P: +61 8 9200 3426 ASX:EV1 evolutionenergyminerals.com.au
Slide 32: Appendix
Appendix
Slide 33: The Making of an Anode
The Making of an Anode Heating to 2,500-3,000oC Synthetic Graphite consumes significant energy – results in high carbon footprint of synthetic graphite EVOLUTION ENERGY MINERALS Calcined Coke Sizing Graphitization Micronization & Carbon Slurry Blending Final Anode Natural Graphite Spheronization coa
Slide 34: Localisation of Anode Supply Chain
Localisation of Anode Supply Chain EVOLUTION ENERGY MINERALS Current 2035 Graphite Mine Coke Anode Battery Cell Electric Car 34 Source: Benchmark Mineral Intelligence
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