Element 25 Limited · ASX:E25
Element 25 — Shareholder Meeting (November 2020)
28 slides from Element 25's shareholder meeting presentation, November 2020
Slide 1: Element 25 Limited AGM Investor Update
Element 25 Limited AGM Investor Update Building a globally significant, low cost, high purity manganese project turbocharged by early cashflow from a low capex concentrate export opportunity. Investor Presentation – November 2020
Slide 2: Disclaimer
Disclaimer This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assu
Slide 3: Corporate Overview
Corporate Overview Financial Information Share Price Performance ASX Ticker E25 Project Financed Capital Raising Shares on Issue 128.7M Mining Lease Granted Share Price $0.83 Market Capitalisation $107M PFS Announced Cash (post completion of tranche 21) ~$16M MoU Signed with OMH Listed Investments ~
Slide 4: Experienced Owner's Team
Experienced Owner’s Team • Experienced team supported by industry leading consultants. • Covers a broad spectrum of disciplines. Seamus Cornelius John Ribbons Chairman Non-Executive Director • >100 years combined experience Lawyer CPA in mining and processing industries. • Outcomes focused, all with
Slide 5: World Class Manganese Resource
World Class Manganese Resource Australia’s largest onshore manganese deposit with simple outcropping geology allowing for free-dig low cost mining.
Slide 6: What is Manganese?
What is Manganese? • Manganese (Mn) is the fourth most used metal on earth in terms of tonnage, behind iron, aluminum and copper. • It has many uses including steel, portable batteries, and aluminium cans. • Manganese is an essential component of the steel-making process. Manganese Ore • Manganese i
Slide 7: The Butcherbird Manganese Project
The Butcherbird Manganese Project • Large resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources1. • Maiden Proved and Probable Reserve of 50.6M tonnes at 10.3% Mn for 5.22t of contained manganese2. • Excellent local infrastructure (bitumen road and gas pipel
Slide 8: World Class Resource, Great Infrastructure Endowment
World Class Resource, Great Infrastructure Endowment 550km PORT HEDLAND Goldfields Gas Pipeline large resource, excellent infrastructure, simple geology Measured and Simple, low Indicated Resources cost Mn units are the focus of the 42 year PFS base case for all Gt Northern Highway processing option
Slide 9: Very Simple Geology
Very Simple Geology • Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. • No selective mining required. • Low strip ratio of 0.3:1 based on PFS pit optimisations. • Mining is above the water table for the first ~30 years. • Free dig with l
Slide 10: A Staged Development Strategy
A Staged Development Strategy Early cashflow from the concentrate export startup stage will fund expansion to utilise the very large resource and maximise Project returns.
Slide 11: Simple, Low Cost Beneficiation
Simple, Low Cost Beneficiation Ejected Waste Screening Ore sorting Low cost, free dig and wet rejects shale mining of ore scrubbing waste to produce from surface. removes clays. Mn concentrate. 11
Slide 12: Simple Process, Low Capital, Low Operating Cost
Simple Process, Low Capital, Low Operating Cost • Simple mechanical beneficiation yields a 30-35% medium grade Mn concentrate. • Very low levels of deleterious elements. • Concentrate suitable for smelting for manganese alloys or future hydrometallurgical feed for producing Electrolytic Manganese Me
Slide 13: Concentrate Export PFS Delivers Robust Economics
Concentrate Export PFS Delivers Robust Economics Financial Highlights2 Pre-Tax Operating Cashflow $A (Years 1-5) $32.1M pa • Low capital cost A$14.5M. NPV8 Pre Tax AUD Nominal $441M (Real $283M) • NPV8: Nominal A$441M IRR Pre Tax Nominal 255% (Real 223%) (A$283M Real) Operating Cost (AISC) US$/dmtu1
Slide 14: Competitive Operating Costs
Butcherbird Manganese Project Competitive Operating Costs Unit Operating Cost (U$/dmtu Sold) Royalties, Mining , U$0.26/dmtu U$0.38/dmtu • Low-cost mining. Corporate, • Simple processing. U$0.20/dmtu • Excellent logistics infrastructure keeps Processing, U$0.67/dmtu costs low. • Access to Port Hedla
Slide 15: A Resilient Project
A Resilient Project Key Sensitivities Reference: Element 25 Limited ASX releases dated 19 May 2020. Note: Mn recovery variance is +/-5% 15
Slide 16: Logistics Strategy
Logistics Strategy • Road haul to Port Hedland on the Great Northern Highway. • Approximately 6-7 trucks per day. • Bulk shipping via Utah Point facility. Utah Point Photo courtesy of Pilbara Port Authority 16
Slide 17: Detailed Engineering and Commissioning Planning Well Advanced
Detailed Engineering and Commissioning Planning Well Advanced ROM Pad Crusher Log Washer Ore sorters housed under dome shelter. Rinsing Dry Stack Screens & Waste Product Ore Sorters Side on view of the log washer and ore sorters. 17
Slide 18: Project Delivery on Time and Budget
Project Delivery on Time and Budget • Mining Lease granted. Fast track • All access agreements finalised. project delivery Vibrating screens on the wharf in Durban. to maximise • Processing water source confirmed. shareholder returns. • Project financing secured1. • Permitting applications well adva
Slide 19: Manganese Markets & Offtake Discussions
Manganese Markets & Offtake Discussions Demand for manganese is growing and supply has constraints. Butcherbird is closer to market than most existing projects and demand for our product is strong.
Slide 20: Manganese Demand Growing
Manganese Demand Growing A steadily & consistently growing market 20
Slide 21: Manganese Concentrate Pricing
Manganese Concentrate Pricing Robust forecast pricing “Manganese from Roskill, a Ore - Stronger leading market for Longer” analyst. Macquarie Commodities Comment 13 May 2020 Conservative pricing assumptions 21
Slide 22: Where to From Here?
Where to From Here? Transitioning from an explorer to a miner is the goal of all junior exploration companies and we are firmly on the path.
Slide 23: A Growth Story… Our Goal…
A Growth Story… Downstream Project Mn Conc. Strong PFS Processing Diversification Execution Export Cashflow (EMM) Our Goal… • Produce clean, low cost, ethical manganese products for world markets. • Become a globally significant manganese producer. • Achieve best in class quality and cost profile. •
Slide 24: Thank you.
Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
Slide 25: 25
25
Slide 26: 26
26
Slide 27: Reserves and Resources
Reserves and Resources Maiden Ore Reserve1 Category Tonnes (Mt) Mn (%) Contained Mn (Mt) • 89% conversion of measured Proved 14.4 11.5 1.65 and indicated resources to Probable 36.2 9.8 3.56 reserve. Total 50.6 10.3 5.22 • Maiden Reserve only exploits Global Mineral Resource2 approximately 20% of glo
Slide 28: Competent Person's Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient exp