Lomiko Metals — Investor Presentation (March 2022)
29 slides from Lomiko Metals's investor presentation, Mar 3, 2022
Slide 1: New Vision. New Strategy. New Energy.
New Vision. New Strategy. New Energy. Creating a world of abundant renewable energy With Canadian critical minerals Lomiko Metals Inc. March 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation is not a prospectus, offering memorandum or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscr
Slide 3: Land Acknowledgement
Land Acknowledgement We would like to begin by acknowledging that the land/projects where we operate are located within the traditional land of the Algonquin Anishnaabeg and Cree Eeyou Istchee Peoples. Our vision is to embrace Indigenous people and Indigenous values within our projects in order to d
Slide 4: The mission: lead and accelerate the new energy circular economy
The mission: lead and accelerate the new energy circular economy Our purpose is to create value for all stakeholders as a people first company and build a major new energy platform in Quebec and Canada for a North American solution Develop assets Be the partner of choice in Create scale and to produ
Slide 5: Leaders with operating experience and shared purpose
Leaders with operating experience and shared purpose Belinda Labatte, CEO Gordana Slepcev, COO Vince Osbourne, CFO CFA, MBA, ICD.D P.Eng., M.Sc. CMA, CBV • Chief • Senior finance Corporate professional Development with Sobeys Officer for • Over 19 years Mandalay experience in Resources finance • Ove
Slide 6: Board of Directors
Board of Directors Eric Levy A. Paul Gill Anu Dhir Sagiv Shiv Chair of Corporate Compensation, Executive Chair Lead Independent Director Chair of Audit Committee 1,3 Governance and Nominating Committee 3 Chair of ESG Committee 1,2 Co-founder of a Managing Director Head of Osler’s CEO of Pampa techno
Slide 7: July 2021 Fed announces: All of Canada's new cars will be electric by 2035
July 2021 Fed announces: All of Canada’s new cars will be electric by 2035 The challenge: To reach even 50% of EV penetration in vehicles requires 20x increase in battery supply. Renewable energy supercentres, longer life batteries, and charging stations can and should be sourced from Canadian criti
Slide 8: Graphite: La Loutre belongs to crystalline flake graphite
Graphite: La Loutre belongs to crystalline flake graphite Natural Graphite deposits of economic interest are grouped into three Synthetic Graphite is made by heating high-carbon materials main categories, as noted below and illustrated: like petroleum coke and coal-tar pitch to temperatures in • Amo
Slide 9: Your phone runs on a rechargeable lithium-ion battery, as do most of your other electronic devices
Your phone runs on a rechargeable lithium-ion battery, as do most of your other electronic devices • The first battery was invented in 1800 by Alessandro Volta What are batteries made of? • In 1859, Gaston Planté invented the first rechargeable battery. A battery is a collection of one or more cells
Slide 10: Domestic battery supply chain development will spur development of graphite developers
Domestic battery supply chain development will spur development of graphite developers EV and battery processing developments in North America are accelerating Tesla in discussions with Quebec government on a battery factory Lion Electric announced a 5 GWh battery factory in Quebec Canada also
Slide 11: Flake graphite demand up 11% - by 413kt in 2021
Flake graphite demand up 11% - by 413kt in 2021 EV Breakdown Projected Sales (units) EV sales 90,000,000 Total BEV and PHEV sales are on track to top 11 M units by as 80,000,000 early as 2023, with forecast for average battery pack sizes 70,000,000 increasing 60,000,000 • Anode growth accelerates fo
Slide 12: Graphite shortage starting in 2022 - Shortage to grow to 8Mt by 2040
Graphite shortage starting in 2022 - Shortage to grow to 8Mt by 2040 Graphite Market Balance (Mt) 12,000,000 4,000,000 Projected Anode Demand (Mt) 10,000,000 2,000,000 9,000,000 - 8,000,000 8,000,000 7,000,000 -2,000,000 +50 6,000,000 6,000,000 mesh -4,000,000 5,000,000 4,000,000 4,000,000 -6,000,00
Slide 13: Flake graphite price forecast 2021-2040: short term instability, long term uptick
Flake graphite price forecast 2021-2040: short term instability, long term uptick Graphite price is dependent on the flake size and purity. Benchmark Mineral Intelligence Q4 2021 forecast sees increased pricing for natural graphite flakes. Mesh size - microns 2021 /US$/t Long-term shortfall in the g
Slide 14: La Loutre graphite project close to infrastructure and great geological setting
La Loutre graphite project close to infrastructure and great geological setting La Loutre Stage of development: Preliminary Economic Assessment ("PEA") Starting Preliminary Feasibility Study Concession size: 2,867 ha Location: Quebec, Papineau - 192 km Highway to Port of Montreal – access to
Slide 15: La Loutre Resource Estimate: focus on conversion
La Loutre Resource Estimate: focus on conversion La Loutre Resource Estimate (Effective Date: May 14, 2021) - PEA Cutoff EV Deposit Battery Deposit Total (%) Run-of- In-Situ Run-of- In-Situ Run-of- In-Situ Graphite Class Mine Grade Mine Grade Mine Grade (kt) Tonnage Graphite Tonnage Graphite Tonnage
Slide 16: La Loutre: PEA establishes a critical path ahead for improvements and project de-risking
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking LOM plant production of 21,8 Mtonnes of mill feed at 6.78% Cg diluted. Graphite concentrate production at 1.43 Mtonnes La Loutre Graphite Project grading 95.0% Cg. 14.7-year mine life producing 100,000tpy
Slide 17: La Loutre: environmental studies key next steps
La Loutre: environmental studies key next steps No conventional tailings facilities • Waste rock and tailings co-disposed WASTE ROCK & EV ZONE CODISPOSAL PILE • Efficient site water management Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits Stockpiles
Slide 18: Exploration program
Exploration program 2022 EV ZONE Infill and extension drilling along the strike of the deposits to confirm ore body shape and extents 18,700m drill program: 114 infill holes (16,700 m) and 13 extension holes (2,000m) 52 drill holes in EV Zone -9,000meters BATTERY drilled to date 49 holes for 6,942
Slide 19: Additional exploration potential Step out in B and C zones
Additional exploration potential Step out in B and C zones New graphite zones Follow up on preliminary greenfield exploration with drilling at Targets B & C. • Potential for 5,000 m drill program (15-20 holes) www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 19 Source: NI 43-101 Technical Rep
Slide 20: La Loutre study priorities Phase 1
La Loutre study priorities Phase 1 Community engagement and communications • Meet with all communities on needs assessment and knowledge sharing - ongoing Continue with environmental baseline studies • Complete 4 full seasons of Environmental Baseline studies by end of 2022 and submit Project regist
Slide 21: La Loutre study priorities Phase 2
La Loutre study priorities Phase 2 Other PFS studies • Initiate and complete geotechnical studies for pit structure and stability • Selection of additional exploration drill targets south of EV and Battery zones • Costing exercises to decrease initial capital requirements (contracting or leasing equ
Slide 22: Corporate Budget Requirements La Loutre
Corporate Budget Requirements La Loutre Phase 1 Cost ($M) Phase 2 Cost ($M) Resource Drilling $3.5 Mining & Mining Geotechnical $0.7 Metallurgy $0.6 Infrastructure Geotechnical $1.0 Environmental $0.7 Power $0.1 Total $4.8 Waste Disposal Facility $0.4 Environmental $1.3 Pre-Feasibility Study Budget
Slide 23: NPV Scenario Analysis
NPV Scenario Analysis PEA used a graphite concentrate selling price of US $916/t. The current forecast selling price is US $1000/t of graphite concentrate (source: Benchmark). Graphite Price Post-Tax NPV Post-Tax IRR % Payback (yrs.) (US$/t) (8%) $916 $186M 21.5% 4.2 $1,000 $239M 25.0% 3.7 $1,150 $3
Slide 24: Highly prospective Bourier lithium assets close to infrastructure
Highly prospective Bourier lithium assets close to infrastructure Bourier Bourier Lithium Project Stage of development: Early-Stage exploration Concession size: 10,252 ha Location: Quebec, Nemaska Owned by Critical Elements with an earn in option up to 70% of the ownership Geology - volcanic
Slide 25: Bourier lithium project identifies 15 exploration targets
Bourier lithium project identifies 15 exploration targets Bourier Located on Nemiscau greenstone belt and Critical Elements south-east of the Eeyou Istchee James Bay territory in Quebec. GoldSpot’s AI analysis revealed the considerable lithium potential Next steps • Phase 1: Surface sampling o
Slide 26: Capital Structure
Capital Structure As at Feb 1, 2022 Shares Issued & Outstanding 276.3M Market Cap (Dec. 29) $24.4M Options 16.5M Cash* $3.8M Warrants 91.0M Debt $- Fully Diluted 383.8M Total Enterprise Value $20.6M Management & Insider Ownership 6.9% Note: * Excludes cash from last FT PP of $2.1M and Hard Dollar ra
Slide 27: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Mar 1, 2022 Cash & Cash Market Cap Measured Indicated Inferred EV/Resource Symbol Price Company Name Shares O/S Equivalents TEV (Current M) (Current M) (Mt) (Mt) (Mt) (M&I) TSXV:NOU 8.75 Nouveau Monde Graphite Inc 55 81 418 480 24.0 9
Slide 28: How we will create success for all stakeholders
How we will create success for all stakeholders Listen We will respectfully listen to communities and First Peoples concerns and considerations in order to maintain honour and respect Discuss We will discuss mutually acceptable opportunities in order to achieve a working partnership within all commu
Slide 29: Lomiko generating momentum in 2022
Lomiko generating momentum in 2022 STRONG CONDITIONS FOR RE-RATE CATALYSTS GRAPHITE Large resource 70mt EV BATTERY Positive PEA @ 4.1%cg (Inferred DEMAND TO 2022 PFS work completed for La and Indicated) Annual growth begins Loutre in 2021 rate: 30% 3mt of graphite 18,000m concentrate in-situ 130 dri