Morien Resources Corp. · TSXV:MOX
Morien Resources — Investor Presentation (November 2022)
27 slides from Morien Resources's investor presentation, November 2022
Slide 1: MOX Corporate Update
TSX-V Corporate Update MOX November 2022 M O R I E N R E S O U R C E S C O R P. Donkin headland
Slide 2: Disclaimer
Disclaimer The information in this presentation is provided as of July, 2022, for information purposes only, and may constitute "forward-looking information" as defined under applicable securities laws. All statements in this presentation other than statements of historical fact, including those tha
Slide 3: The Opportunity
The Opportunity Proposition Small-cap entry point to increase investor’s exposure to the energy and steel sectors. Recent Production restarted at the Donkin Mine in Q3-2022 with commercial sales expected Milestone to commence in Q4-2022, triggering restart of Morien royalty income in Q1-2023. Capita
Slide 4: A Bulk Commodity Royalty Company
A Bulk Commodity Royalty Company Donkin Mine Production Royalty with The Cline Group Black Point Project Production Royalty with Vulcan Materials M O R I E N R E S O U R C E S C O R P. 4
Slide 5: Corporate Snapshot (TSX-V: MOX)
Corporate Snapshot (TSX-V: MOX) Capital Structure (Oct 25, 2022) Ownership Summary Morien Mgmt & Directors Basic shares outstanding 50.6 mln The Cline Group Options 4.2 mln Retail 15% 12% Warrants nil Fully diluted shares outstanding 54.8 mln Share price $0.70 52-week high / low $0.86 / $0.19 Market
Slide 6: Leadership
Leadership John P. A. Budreski Dawson C. Brisco Susanne H. Willett Mary C. Ritchie John P. Byrne Charles G. Pitcher Executive Chairman Director, President & CEO Chief Financial Officer Director Director Director • 30+ years extensive • Professional Geologist • Qualified CPA, CA, who • 30+ years expe
Slide 7: Donkin Mine
Donkin Mine M O R I E N R E S O U R C E S C O R P. Page | 7
Slide 8: Donkin Mine Reopens
Donkin Mine Reopens § On September 13th, The Cline Group (private coal developer) reopened the Donkin Mine. § Donkin is now producing coal, and the washplant is operational as of October 4th. § There are 125 people working onsite and it is expected that number will approach 150 over the next few mon
Slide 9: Donkin Mine Snapshot
Donkin Mine Snapshot The Cline Group Owner / Operator (private company) > CAD $250 mln1 Cline’s approximate investment into Donkin since 2015 484 mln tonnes1 Coal resource 20+ years1 Mine life Underground Mine type 3.0 mln tonnes2 Annual saleable tonnage (permitted for 3.6 mln tonnes run-of-mine) Pr
Slide 10: The Cline Group – An Experienced Coal Operator
The Cline Group – An Experienced Coal Operator § Operated three of the four most productive, underground longwall coal mines in the U.S. § Completed a US$300 mln IPO of coal company, Foresight Energy 2006 to § Foresight led by CEO Michael Beyer (current CEO of Cline’s 2015 Canadian coal company) and
Slide 11: Established Operation With Abundant Infrastructure
Established Operation With Abundant Infrastructure DEEPWATER HARBOUR DONKIN MINE SITE MINED-OUT AREA 1863-2001: 258 mln tonnes coal mined Ongoing $4.5 mln program from Canadian Over $250 million invested by The Cline Coast Guard to allow Capesize vessel entry. Group into the mine since 2015. PEV COA
Slide 12: Sydney Harbour and PEV Coal Terminal
Sydney Harbour and PEV Coal Terminal § In 2021, the Canadian Coast Guard announced a $4.5 mln upgrade to Sydney Harbour infrastructure to allow for the entry of larger Capesize vessels3. § Sydney Harbour’s PEV Coal Terminal, responsible for handling Donkin exports, acquired a barge-mounted shiploade
Slide 13: Donkin's Competitive Land & Sea Transportation Advantage
Donkin’s Competitive Land & Sea Transportation Advantage Mine to Port Port to Market (kilometres) ($US/tonne, Panamax size vessel) Donkin Mine to Sydney Port 30 Cerrejon Mine (Colombia) to Puerto Bolivar Port 150 Bowen Basin (Australia) to Hay Point Port 250 US Appalachians to to US East Coast Ports
Slide 14: First Nation Partners
First Nation Partners § In 2016, representatives of the Assembly of Nova Scotia Mi’kmaq Chiefs and the owners of the Donkin Mine gathered in Cape Breton to sign a historical Impact Benefits Agreement (photo to right). § As a result, all Nova Scotia Mi’kmaq communities own a royalty on the Donkin Min
Slide 15: Cash-In, Cash-Out: Annual Royalty
Cash-In, Cash-Out Annual Royalty at 3 mln Tonnes Unique Dividend Calculator on Saleable Production4 Morien Website5 $35 Coal Price ($CAD) $31 ANNUAL ROYALTY ($CAD MILLIONS) $100 / tonne $30 $200 / tonne $300 / tonne $25 $23 $400 / tonne $20 $15 $15 $10 $7 $5 $0 3.0 ANNUAL SALEABLE PRODUCTION (MILLIO
Slide 16: Coal Prices
Coal Prices Long-Range Price Chart for Donkin Quality Steelmaking & Thermal Coal Waning shoulder USD / tonne season demand Russia coupled with $500 invades increase in EU Ukraine gas inventories $400 Beginning of global energy China cuts domestic crises $300 coal production by 15% US $280 / tonne US
Slide 17: Coal Market
Coal Market M O R I E N R E S O U R C E S C O R P. Page | 17
Slide 18: Global Coal Demand Hits Highest Level on Record in 2021
Global Coal Demand Hits Highest Level on Record in 2021 Global Steelmaking Coal Demand6 Global Thermal Coal Demand6 Billion Tonnes Billion Tonnes 1.2 7.0 1.0 6.0 5.0 0.8 4.0 0.6 3.0 Forecast Forecast 0.4 2.0 Forecast Forecast 0.2 1.0 0.0 0.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 201
Slide 19: Steelmaking Coal - Significant Gap in Supply-Demand Balance
Steelmaking Coal - Significant Gap in Supply-Demand Balance Global Seaborne Steelmaking Coal Supply-Demand Balance7 Million Tonnes 400 350 DEMAND 300 250 200 “ 150 SUPPLY Given the overall quality of the target coal seam at Donkin, we feel it will be well 100 received as a blend coal in overseas ste
Slide 20: Thermal Coal - High Energy Coal in Hot Demand
Thermal Coal - High Energy Coal in Hot Demand Donkin’s Best-in Class Energy Content “ (BTU/lb, gar) Donkin Mine 13,500 High energy coal prices are likely USA (NAPP) 12,800 to remain elevated, as Russia USA (CAPP) 12,350 supplies over a quarter of the high-energy coal in the global USA (Ilinois) 11,5
Slide 21: Fossil Fuels Provide 81% of the World's Energy
Fossil Fuels Provide 81% of the World’s Energy Global Energy Consumption by Fuel Type (2010-2021)8 M O R I E N R E S O U R C E S C O R P. 21
Slide 22: Morien – Positioned. Structured. Disciplined.
Morien – Positioned. Structured. Disciplined. M O R I E N R E S O U R C E S C O R P. Page | 22
Slide 23: Key Metrics – Disciplined Improvement
Key Metrics – Disciplined Improvement Corporate Overheads Shares Outstanding Insider Ownership Down 52% Down 17% Up 10% Millions Millions % Ownership (Mgmt & Dir) $1.20 60 16% 14% $1.00 50 12% $0.80 40 10% $0.60 30 8% 6% $0.40 20 4% $0.20 10 2% $0.00 0 0% 2015 2021 2015 2021 2015 2021 M O R I E N R
Slide 24: Morien - Own it For These Reasons
Morien - Own it For These Reasons § Valuation expansion and re-rate potential as Donkin scales up production § Over $250 million invested by The Cline Group into Donkin since 2015 § Long life royalties; 20 years at Donkin and 50 years at Black Point § Demand for coal and crushed stone will remain st
Slide 25: TSX-V: MOX
1701 Hollis St, Suite 800 Halifax, Nova Scotia Canada, B3J 3M8 Tel: 902-466-7255 John P. A. Budreski Dawson Brisco Susanne Willett Executive Chairman President & CEO CFO TSX-V: MOX www.MorienRes.com info@morienres.com M O R I E N R E S O U R C E S C O R P.
Slide 26: Forward Looking Statements
Forward Looking Statements Some of the statements made by Morien Resources Corp. (“Morien”) in this presentation may constitute "forward-looking information" as defined under applicable securities laws. All statements in this presentation other than statements of historical fact, including those tha
Slide 27: Footnotes
Footnotes 1) Technical disclosures are consistent with the information in the Donkin technical report titled “Technical Report, Donkin Coal Project, Cape Breton, Nova Scotia, Canada” dated Nov 2012, found on Morien’s SEDAR profile. Note that the approximation of capital spent at Donkin based on in-p
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