Blencowe Resources Plc · LSE:BRES
Blencowe Resources — Investor Presentation (October 2021)
23 slides from Blencowe Resources's investor presentation, October 2021
Slide 1: Highly leveraged into the rapidly growing Electric Vehicle market
Highly leveraged into the rapidly growing Electric Vehicle market 1
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Blencowe Plc (“Blencowe”). This document contains background information about Blencowe current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct thei
Slide 3: Blencowe Value Proposition
BLENCOWE VALUE PROPOSITION DEVELOPING A WORLD CLASS GRAPHITE DEPOSIT ; ; + Estimated 2.5 billion tonnes graphite within tenements Size and Scale of Project |- First thirteen years’ Life of Mine already drilled to JORC Standard Highest Quality End + 97.3% TGC concentrate / low impurities / high recov
Slide 4: Orom-Cross Graphite Project Overview
OROM-CROSS GRAPHITE PROJECT OVERVIEW SOUTH SUDAN mel te SOW) Orom-Gross Ket) Project (° DEMOCRATIC REPUBLIC OF THE CONGO. AFRICA UGANDA @® BLENCOWE ssee RESOURCES 21 Year Mining Licence awarded in 2019 100% Orom-Cross was acquired in April 2020 Orom-Cross has the scope to become a world class graphi
Slide 5: Key Milestones Over Past Months
KEY MILESTONES OVER PAST 18 MONTHS BLENCOWE HAS ADDED CONSIDERABLE VALUE TO PROJECT OVER PAST 18 MONTHS > Acquired Orom-Cross Project and raised £2m for project development through UK listing > 21 year Mining License delivered with project > Comprehensive 2,000m (65 holes) diamond drill program deli
Slide 6: 13 years 75,000 tpa US$317M
LIFE OF MINE 13 years PRODUCTION TONNAGE 75,000 tpa NET PRESENT VALUE US$317M IRR 49% CAPITAL EXPENDITURE US$80M PAYBACK ON CAPITAL 4 years WEIGHTED AVERAGE SELLING PRICE US$1,050/t OPERATING COST US$498/t EBITDA US$40M CUMULATIVE LIFE OF MINE FREE US$351M CASH (pre-tax) Cautionary Statement: The PE
Slide 7: Maiden JORC Resource and infill drilling
Notes: • Over 900,000t of contained graphite within maiden JORC Resource • Stage 2 / 2,200m infill drilling completed – Revised JORC Resource Q4 2021 o Uplift to >20Mt total JORC Resource o Bringing 4Mt Camp lode into JORC Resource – lift overall grade to ~8.0% o Lift current 3.5Mt Indicated & Measu
Slide 8: Flake Graphite Demand Curve
Flake Graphite Demand Curve Timing for likely first production at Orom- Cross coincides with emerging shortfall of flake graphite as forecast by BMI. Source – Benchmark Minerals Intelligence 20-year demand-supply forecast (July 2019) 8
Slide 9: Benchmark Minerals Intelligence sources
• • • Sources: Benchmark Minerals Intelligence / Blencowe – September 2021 UBS Battery Raw Metals Report March 2021 9
Slide 10: Jumbo/Large Medium Small flake
• Jumbo/Large Medium Small (20 to 80 mesh) (80 to 150 mesh) (+150 mesh) • • • • • • • • • • • • • • • • • • • • • • • • • • Generally, these are speciality products that require the highest quality graphite, and for which a premium is paid. 10
Slide 11: Completed / Underway milestones
• • • • • • • COMPLETED • • • COMPLETED COMPLETED UNDERWAY 11
Slide 12: ESG Compliant
ESG COMPLIANT ENVIRONMENTAL, SOCIAL & GOVERNANCE RESPONSIBILITIES Blencowe takes its ESG responsibilities seriously and has policies in place and actions underway to maintain high ESG standards as it drives towards first production. Company wants to ensure that all stakeholders ultimately prosper fr
Slide 13: Warrants and share structure
• • • % % % % % VWAP of outstanding warrants is 6.8p and would provide a further ~£2m cash into the Company if all are exercised All information and data as at July 2021 13
Slide 14: Board & Management
BOARD & MANAGEMENT BLENCOWE s+ RESOURCES Cameron Pearce, Chairman Mr Pearce is a Chartered Accountant with extensive professional experience in the finance sector in Australia and the UK. His particular focus and experience is in the setup, listing and development stage of public companies, specific
Slide 15: Key Management & Advisors
KEY MANAGEMENT & ADVISORS lain Wearing, COO Mr Wearing is a Mining Engineer with 30 years experience in the resource industry, including significant project experience in Africa. He has been involved in the technical management of African projects for several companies, including Resolute Mining and
Slide 16: Appendix - Graphite Market
APPENDIX - GRAPHITE MARKET 16
Slide 17: Simon Moores, Benchmark Mineral Intelligence
Simon Moores is a leading authority on lithium ion battery and energy storage supply chains with a specialist focus on lithium, graphite, and cobalt. He is MD of Benchmark Mineral Intelligence, an independent price assessment and consultancy company for lithium ion battery supply chain • • • • • • •
Slide 18: Electric Vehicles: Macro Market Micro Market
ELECTRIC VEHICLES ONE OF THE FASTEST GOWING TRENDS WORLDWIDE Oct 2021 14m China Europe USA 6m 5m 3m Source – Benchmark Minerals Intelligence 20-year demand-supply forecast (July 2019) • • MICRO MARKET • MACRO MARKET • • • • • • • • • • • • • 18
Slide 19: Benchmark demand-supply forecast
• • • • • • • • • Source – Benchmark Minerals Intelligence 20-year demand-supply forecast (July 2019) 19
Slide 20: Benchmark demand-supply forecast
Source – Benchmark Minerals Intelligence 20-year demand-supply forecast (July 2019) 20
Slide 21: Graphite Key Price Drivers
GRAPHITE KEY PRICE DRIVERS Phase 2 test work shows 97-98% TOTAL GRAPHITIC CONTENT TGC for Orom-Cross concentrate (“Purity”) of Conc. Each 1% above 94% = 10% higher price Low impurities = higher prices Jumbo, XL and Large flake size FLAKE SIZE make up ~ 36% of Orom-Cross product based on recent test
Slide 22: Natural flake graphite demand will rise in sync
Natural flake graphite demand will rise in sync. Source - Syrah Resources Presentation 2019 22
Slide 23: Blencowe
BLENCOWE eee RESOURCES O ‘ Walton House 25 Bilton Road Rugby +44(0)1624 681 250 Warwickshire info@blencoweresourcesplc.com CV22 7AG Sa, a x 2 | ‘et = 3 a X / \ 23
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