Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Investor Presentation (June 2019)
40 slides from Euro Manganese's investor presentation, Jun 27, 2019
Slide 1: Focus on Green and European Ultra High-Purity Manganese Products
For personal use only FOCUS ON GREEN AND EUROPEAN ULTRA HIGH-PURITY MANGANESE PRODUCTS Corporate Presentation | June 2019 1
Slide 2: Cautionary Note: Forward-Looking Statements and Risks Notice
Cautionary Note For personal use only Forward-Looking Statements and Risks Notice Except for statements of historical fact relating to the Euro Manganese Inc. (“EMI” or the “Company”), certain information contained in this presentation constitutes forward-looking statements. When we discuss our cost
Slide 3: 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 Measured and Indicated Mineral Resources prepared by competent persons and qualified persons
Slide 4: EMN Highlights
EMN Highlights For personal use only WASTE REPROCESSING FROM STRATEGIC EUROPEAN ASSET EXCELLENT INFRASTRUCTURE HISTORIC MINING OPERATION ~25-YEAR LIFE EXPECTANCY TIER-ONE JURISDICTION • EMN holds 100% of the rights to the • Significant measured and indicated • Rail, highway, gas pipeline, water and
Slide 5: Development Plan Highlights
Development Plan Highlights For personal use only CLEAR TIMELINE TO STRONG MARKET OUTLOOK HIGHLY EXPERIENCED DEVELOPMENT FOR MANGANESE PRODUCT MANAGEMENT TEAM • Extensive metallurgical tests and pilot- • Demand for manganese products for lithium-ion • Solid multidisciplinary team with plant runs com
Slide 6: Management Team: Canada
Management Team CANADA For personal use only Marco Romero Pierre Masse Thomas Glück Gary Nordin Fausto Taddei PRESIDENT & CEO, VP FINANCE & CHIEF VICE PRESIDENT, CHIEF GEOLOGIST VP CORPORATE FOUNDER & DIRECTOR FINANCIAL OFFICER DEVELOPMENT DEVELOPMENT & CORPORATE SECRETARY • 40 years of diversified
Slide 7: Management Team: Europe
Management Team EUROPE For personal use only Jan Votava Wenling Sun Klaus Acker Tomas Hochmann MANAGING DIRECTOR (MANGAN STRATEGIC DIRECTOR, VICE PRESIDENT, TECHNICAL DIRECTOR CHVALETICE S.R.O.) & DIRECTOR CHINA MANGANESE MARKETS (EURO MANGANESE INC.) • 18+ years experience as an • Highly experience
Slide 8: Non-Executive Directors
Non-Executive Directors For personal use only Roman Shklanka David Dreisinger Daniel Rosický Harvey McLeod John Webster Gregory Martyr CHAIRMAN & DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CO-FOUNDER • Geologist, mine finder • Professor and chair • Practiced law for 22 • Geotechnical engineer • Se
Slide 9: Project Location and Infrastructure
Project Location and Infrastructure For personal use only Strategically located 90km east of Prague, in the heart of Europe. Set in an industrialized valley with gentle topography, served by excellent infrastructure. Rail, gas, water and power are all available on the Project site. Adjacent to 820 M
Slide 10: Growing Lithium Battery Cluster in Europe
Growing Lithium Battery Cluster in Europe (The wave of production capacity development that has gone through Asia is now washing over Europe) For personal use only SWEDEN GERMANY Plant Type: Precursors/Batteries Plant Type: Batteries Status: Construction 2018 Status: Construction 2019 Production Sta
Slide 11: Lithium Ion Battery Market Mn Demand
Lithium Ion Battery Market Mn Demand Manganese use in NMC and LNMO cathode formulations For personal use only NMC has several major formulations, each expressed as a ratio of Nickel to Manganese to Cobalt: NMC 1-1-1 Most NMC today is the 1-1-1 formulation, which is the most stable and long-lasting.
Slide 12: EMN Market Approach
EMN Market Approach BECOME WORLD’S GREENEST AND For personal use only EUROPE’S ONLY PRIMARY PRODUCER OF TWO KEY MANGANESE PRODUCTS: 1 UHP Electrolytic Manganese Metal (99.9% EMM / HPEMM) Highest specifications: Selenium-free, >99.94% Mn. Form: Flake and powder Use: From lithium-ion battery cathodes
Slide 13: Chvaletice Manganese Project Overview
For personal use only CHVALETICE MANGANESE PROJECT OVERVIEW FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 13
Slide 14: Project Highlights
Project Highlights For personal use only A LEADING GREEN HIGH-PURITY MANGANESE PRODUCTS PROJECT 100% ownership of rights to Chvaletice Manganese Resource Targeted 25-Year Life-of-Project /designed by world- leaders in the HPEMM and HPMSM field Recovering manganese by reprocessing tailings (waste rec
Slide 15: Project Highlights: Working in the Czech Republic
Project Highlights For personal use only WORKING IN THE CZECH REPUBLIC Electrical supply • Competitively-priced electrical power in Czech Republic, which is generated 43% from non-fossil fuel sources. Key process inputs • Conventional, REACH-registered reagents all expected to be available in Czech
Slide 16: Drilling & Bulk Sampling
Drilling & Bulk Sampling For personal use only Sonic drill – modern, effective sampling tool Sonic drill “core” of soft, sandy tailings material 14.8-tonne bulk sample collected using Sonic drill for metallurgical and pilot plant testing FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 16
Slide 17: Drilling & Bulk Sampling Program
Drilling & Bulk Sampling Program For personal use only 2017-2018 DRILL PROGRAM 160-Hole 2017-2018 Sonic and auger drill program upgraded the resource estimate to a Measured and Indicated Status (98.3% Measured) Cell 1 Resulting resource model is expected to form a reliable basis for tailings extract
Slide 18: 2018 NI 43-101/JORC Resource Estimate
2018 NI 43-101/JORC Resource Estimate: For personal use only NI43:101/JORC-Compliant Resource Estimate * 2017 – 2018: 160-hole drilling program findings Updated Resource Estimate issued on December 12, 2018 by Tetra Tech Canada Inc. • Manganese is for the most part evenly distributed through the Chv
Slide 19: Permitting Momentum and Plant Site Land
Permitting Momentum and Plant Site Land For personal use only 1. 1 Baseline environmental studies completed. EIA preparation initiated. Early 2020 submission targeted. 2. Rezoning process initiated. Both adjoining municipalities 2 voted unanimously to proceed with land-use plan change CHVALETICE TAI
Slide 20: Preliminary Chvaletice Plant Site Design
Preliminary Chvaletice Plant Site Design (Screenshots from 3-D virtual reality tour) For personal use only FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 20
Slide 21: Progressive Reclamation and Site Remediation
Progressive Reclamation and Site Remediation: Meeting Europe’s Circular Economy Goals by Recycling Waste For personal use only Staged Tailings Extraction • Tailings extracted in phases, cell-by-cell, placed back on same site in full compliance with Czech and EU standards, and in-keeping with modern
Slide 22: EMN Progress Since October 2018 IPO
EMN Progress Since October 2018 IPO Secured critical industrial land for plant site. Chvaletice Manganese Project straddles two For personal use only municipalities. Both community councils voted Completed NI 43:101 / JORC resource estimate unanimously to proceed with rezoning process for with
Slide 23: Target Project Development Timeline
Target Project Development Timeline SHORT TERM MILESTONES MEDIUM TERM MILESTONES For personal use only 2018 2019 2020/2021 2022 Upgrade resource estimate to Measured Complete NI-43-101/JORC Code Complete feasibility study Start-up, commissioning and Indicated status Preliminary Economic and comm
Slide 24: Chvaletice Manganese Project Highlights
Chvaletice Manganese Project Highlights Western Europe’s largest manganese deposit – expected EMN has secured rights to strategic, industrially-zoned land For personal use only to become its only primary producer of HPEMM and for plant site adjacent to Chvaletice tailings deposit. HPMSM. Valuable, s
Slide 25: Thank You!
For personal use only THANK YOU! Marco A. Romero | President & CEO | Tel: +1 (604) 681-1010 x 101 1500 - 1040 West Georgia Street | Vancouver, BC Canada V6E 4H8 info@Mn25.ca | www.Mn25.ca
Slide 26: Appendix A: High-Purity Manganese Market
For personal use only Appendix A: HIGH-PURITY MANGANESE MARKET FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS
Slide 27: Manganese Market Challenge: Processing
Manganese Market Challenge: Processing For personal use only Photos show ultra high purity manganese products made from Chvaletice Manganese Project tailings during 2018 product development and testwork program. Fifth most mined metal in the world. Ultra-high-purity manganese products have emerged a
Slide 28: Electric Vehicle Demand for Manganese
Electric Vehicle Demand for Manganese For personal use only Chevy Bolt BMW i3 BAIC EC 200 Jaguar iPace Battery Pack Size: 60 kWh Battery Pack Size: 42 kWh Battery Pack Size: 36.8 kWh Battery Pack Size: 90 kWh Battery Manufacturer: LG Chem Battery Manufacturer: Samsung SDI Battery Manufacturer: CATL
Slide 29: How much Manganese is needed for one EV?
How much Manganese is needed for one EV? Conversion to Cathode 0.473 kg 1.453 kg 1.439 kg Some new battery chemistries For personal use only 1% loss 5% loss HPEMM HPMSM HPMSM will use up to 2.3 times more MnSO4H2O Production manganese than the current Equivalent to NMC-111 chemistry 0.445 kg HPEMM
Slide 30: HP Manganese Market Opportunity
HP Manganese Market Opportunity For personal use only 1,000 70% HPMSM 30% HPEMM 900 800 Total Mn Demand from battery industry '000 metric tons Mn contained 700 (NMC and LNMO battery chemistries only) 600 500 400 HPMSM 300 35% HPMSM 200 65% HPEMM 100 HPEMM 0 MANGANESE USE IN Li-ION BATTERY MARKET Li-
Slide 31: Appendix B: Corporate and Project Information
Appendix B: Corporate and Project Information For personal use only FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 31
Slide 32: EMN Strategic Considerations
EMN Strategic Considerations For personal use only Manganese in oil pipeline segments Mn in Ford F-150 pickup aluminum frame and body Mercedez Benz NMC lithium-ion battery prototype GROWING MARKETS FOR HIGH- MARKET INTEREST IN EMN PRODUCTS PURITY MANGANESE PRODUCTS – PURITY IS IMPORTANT NMC and LNMO
Slide 33: Project 2017-2018 Progress: Metallurgical Testing and Process Design
Project 2017-2018 Progress For personal use only METALLURGICAL TESTING AND PROCESS DESIGN March 2017 – HPEMM Metallurgical Testing Initiated Extensive metallurgical testwork program comprised of hundreds of tests, including beneficiation, leaching, purification and electrowinning with Changsha Resea
Slide 34: Project 2017-2018 Progress: Engineering
Project 2017-2018 Progress For personal use only ENGINEERING January 2017 and On-going – Process Design, Engineering, Capital and operating Cost Estimation • Various engineering studies initiated with China’s CINF Engineering, a division of Aluminum Company of China/Chinalco, for process and Project
Slide 35: 2017-2018 Progress: Site Activities
2017-2018: Progress For personal use only SITE ACTIVITIES 2017-2018 • 160-hole Sonic drill program completed. • Bulk sample (14.8 tonnes) collected for metallurgical bench-scale and pilot plant tests. • Plant site selection studies & land acquisition • Geotechnical studies • Environmental baseline s
Slide 36: Project 2017-2018 Progress: Resource Definition, Tenure and Permitting
Project 2017-2018 Progress For personal use only RESOURCE DEFINITION Summers of 2017 and 2018 Tetra Tech Canada Inc completed NI43:101/JORC- compliant Indicated and Inferred Mineral Resource Estimate. (Report issued December 2018.) TENURE AND PERMITTING December 2017 Euro Manganese secured registrat
Slide 37: Metallurgical Pilot Plant Tests
Metallurgical Pilot Plant Tests For personal use only MINERAL PROCESSING & METALLURGICAL TESTING Recent Findings of Bulk Sample Pilot-Scale Metallurgical Testwork • Magnetic Separation pilot scale tests were successful and confirmed earlier exploratory results. • Leaching tests were successful. Good
Slide 38: Euro Manganese Inc. – PEA Summary: Production
Euro Manganese Inc. – PEA Summary For personal use only PRODUCTION SUMMARY Life of project 25 years Chvaletice tailings extracted & processed 26,828 K tonnes Total manganese grade 7.33% Contained Manganese (Mn) 1,967 K tonnes HPEMM produced 1,186.4 K tonnes HPEMM further processed into HPMSM 782.3 K
Slide 39: Euro Manganese Inc. – PEA Summary: Project Economics
Euro Manganese Inc. – PEA Summary For personal use only PROJECT ECONOMICS (USD) Pre-Tax After-Tax Net Present value, (10% discount rate) $781.6 M $593.2 M Internal Rate of Return 25.2% 22.6% Payback (from start of processing) 4.5 Years 4.9 Years Cumulative Cash Flow, undiscounted $4,088.8 M $3,291.8
Slide 40: Euro Manganese Inc. - Capitalization
Euro Manganese Inc. - Capitalization For personal use only Dual IPOs completed on Capitalization as of May 31, 2019 (Note 1) ASX and TSX Venture Exchange Shares (including 74.5M CDIs) 172,138,170 (October 2nd, 2018). Options 15,650,000 35M Shares at C$0.25, raised C$8.6M Warrants 8,684,015 Fully Dil