Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (November 2024)
28 slides from Avalon Advanced Materials's investor presentation, November 2024
Slide 1: Critical Minerals for a Sustainable Future
Critical Minerals for a Sustainable Future NOVEMBER 2024 TSX:AVL OTCQB:AVLNF FRA:OU5A
Slide 2: Cautionary Statement
Cautionary Statement FORWARD-LOOKING STATEMENT: This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the results of the PEA, including the ex
Slide 3: Cautionary Statement: Financial Projections
Cautionary Statement Financial Projections The Company’s financial projections are inherently speculative and may prove to be inaccurate. Any financial projections provided in this presentation have been prepared in good faith based upon the estimates and assumptions considered reasonable by managem
Slide 4: Avalon Advanced Materials - Projects
Avalon Advanced Materials - Projects Avalon Advanced Materials Inc. is an asset management company with a focus on advanced materials and technology: sourcing, processing, and distributing the materials that will drive our world to a more sustainable future. Lake Superior Lithium Inc. aims to meet t
Slide 5: Project Summary and Other Projects
Other Projects: Project 1: Project 2: Project 3: - East Kemptville Tin Separation Rapids Ltd. Lake Superior Lithium Inc. Nechalacho Project - Warren Township Anorthosite • Location: Ontario • Location: • East Kemptville Tin • Location: Ontario ⚬ Separation Rapids Region - Kenora ⚬ Thor Lake, Northwe
Slide 6: Avalon Assets - Locations
Avalon Assets - Locations Office Headquarters Toronto, ON Lake Superior Lithium Inc Thunder Bay, ON Separation Rapids Ltd Kenora, ON Nechalacho Thor Lake, NWT East Kemptville Tin Yarmouth, NS Warren Anorthosite Project Timmins, ON TSX:AVL OTCQB:AVLNF FRA:OU5A
Slide 7: Investment Highlights
Investment Highlights Proven Expertise Diverse Project Portfolio High Demand Markets Leadership team with extensive Thunder Bay Facility PEA Results: Strategically positioned in and proven experience of Post-Tax $4.1B NPV and 48% IRR rapidly growing markets such delivery in the mining and Nechalacho
Slide 8: Leadership: Management Team
Leadership MANAGEMENT TEAM Scott Monteith, CEO and Director Scott Monteith, CEO of Avalon since May 2023, is an experienced entrepreneur and founder of Monteco Ltd. Zeeshan Syed, President Andrew J. Ramcharan, VP, Corporate Development Mr. Syed has 20 years of executive experience in the energy sect
Slide 9: Leadership: Board of Directors
Leadership BOARD OF DIRECTORS Alan Ferry, Chairman Mr. Ferry, with 28 years in mining finance, is Avalon's director since 2000, and chairs the Audit Committee. Timothy Haig, Director Naomi Johnson, Director A successful entrepreneur in renewable fuels and cleantech, Ms. Johnson, Titan Mining VP sinc
Slide 10: Global Lithium Market Overview
Global Lithium Market Overview • Market Size ⚬ The global lithium market size was valued at $22.19 billion in 2023. 1 • Projected Growth ⚬ It is projected 1 to grow from $26.88 billion in 2024 to $134.02 billion in 2032. ⚬ Demand is expected to reach over 3 million metric tons by 2030 • Demand Drive
Slide 11: Lithium Demand for Electric Vehicles
Lithium Demand for Electric Vehicles • Future Demand ⚬ EVs could account for 84% of total lithium demand by 2030 ￭ By 2025, EVs are expected to represent over 20% of global light-duty vehicle sales, up from 9% in 2021. 1 • Supply Constraints ￭ Lithium demand is set to grow tenfold by 2050 under the
Slide 12: Lake Superior Lithium Inc.
Lake Superior Lithium Inc. • Ownership: ⚬ 100% Wholly Owned subsidiary of Avalon Advanced Materials Inc. • Location: ⚬ City of Thunder Bay, Ontario • Objective: ⚬ To meet the growing demand for lithium-ion batteries and support the rapidly expanding electric vehicle market by establishing a state-of
Slide 13: Lake Superior Lithium Inc.: Strategic Investment Overview
Lake Superior Lithium Inc. • Strategic Investment Overview ⚬ Strategic Location: ￭ Proximity to key markets and resources, supporting efficient supply chains. ⚬ Infrastructure Advantage ￭ Robust infrastructure, including existing buildings, extensive rail connectivity, and a deep-water port ⚬ Suppor
Slide 14: PEA Highlights ($CDN)
PEA Highlights ($CDN) $35,360 30 Year Base Case LiOH Price $4.1B Operating Life After-Tax NPV @ 8% Discount $1,360 2.5 Year Spodumene concentrate price Payback Period 30,000 tpa 48% Annual LiOH production After-Tax IRR $1.3B CAPEX TSX:AVL OTCQB:AVLNF FRA:OU5A
Slide 15: The Phased Approach
The Phased Approach © Office Building PHASE 1 30k LIOH 2028 FROM <+— INTERNATIONAL MARKETS PHASE 2 60k LiOH 2030 Property Boundary PHASE 3 60k LOH 2033 ep _, [3 | TO EUROPEAN MARKET Swans F PHASE 1 Sen, 5 | Technology & To SOUTHERN LEGEND Innovation Centre ONTARIO ¢ MARKET PHASE 1 3 WM 30k LioH 2028
Slide 16: Avalon & Metso Corp. Partnership
Avalon & Metso Corp. Partnership • Avalon has also entered a partnership with Metso Corp. to leverage their groundbreaking, sustainable processing technologies. • Overview ⚬ Metso is a comprehensive solution provider for major lithium operations and backed by the latest technologies and decades of e
Slide 17: Metso Lithium Processing Solutions
Metso Lithium Processing Solutions • Spodumene Feed: Alpha-Spodumene converted to Beta-Spodumene via calcination within a Kiln heating process • Lithium Carbonate Production: from Beta-Spodumene reaction with soda ash in Pressure Leaching. • Lithium Hydroxide Production: via Atmospheric Conversion r
Slide 18: Avalon & Qualcomm Collaboration
Avalon & Qualcomm Collaboration • Avalon has signed a memorandum of understanding with Qualcomm Technologies Inc., focusing on enhancing Avalon’s Thunder Bay lithium processing facility through advanced digital solutions. • Key Collaboration Highlights: ⚬ Utilizing Qualcomm's Industrial & Edge techn
Slide 19: Separation Rapids Ltd. (SRL) - JV
Separation Rapids Ltd. (SRL) - JV • Ownership: ⚬ SRL is jointly owned by Sibelco (60%) and Avalon (40)% • Locations: ⚬ 3 Lithium sites in Ontario ￭ Separation Rapids Region – Separation Rapids Deposit, Snowbank target ￭ Lilypad Region – Lilypad target mineralization • Objective: About Sibelco ⚬ To a
Slide 20: Separation Rapids Overview
Separation Rapids Overview • Overview: • Separation Rapids Region 4,414 Hectares Tonnage Li2O Description Classification • Location: (Mt) (%) ⚬ 70 kilometers north of Kenora, Ontario Measured & Indicated 9.39 1.34 Open Pit • Mineral Resource: Inferred 1.6 1.34 ⚬ PEA 2018 Measured & Indicated 0.68 1.
Slide 21: Lilypad & Snowbank Target Overview
Lilypad & Snowbank Target Overview Lilypad Project Snowbank Target • Overview: • Overview: ⚬ The Lilypad Project consists of 14 claims, comprising 166 new claim units ⚬ A lithium pegmatite occurring primarily in the ore mineral or cells, totaling slightly over 3,299 hectares (8,152 acres) petalite •
Slide 22: Rare Earths Market Analysis
Rare Earths Market Analysis • Rare Earths Market Analysis ⚬ Market Overview: ￭ Overall rare earth metals demand is projected to increase at a 10.4% CAGR through the forecast period (2023-2032) ￭ Total market valuation is set to reach $USD 33.464 billion • Demand Drivers: ⚬ Technological and Industri
Slide 23: Zirconium, Niobium, Tantalum Market Analysis
Zirconium, Niobium, Tantalum Market Analysis • Zirconium (Zr) ⚬ Market Growth ￭ CAGR: 7.8% (2023-2032) ￭ Valuation: $3.8 billion by 2032 ⚬ Applications ￭ Nuclear Reactors: Cladding fuel rods, alloying with uranium ￭ Chemical Industry: Resistant to acidic/alkaline conditions ￭ Military: Aircraft, spa
Slide 24: Nechalacho Project - REE
Nechalacho Project - REE Mineral Resource Estimate as at May 3, 2013 • Ownership: ⚬ 100% interest of the resources below a depth of 150 meters from surface (the “Basal Zone Resources”) Tonnes TREO HREO ZrO2 Nb2O5 Ta2O5 Category Zone (million) (%) (%) (%) (%) (%) • Location: ⚬ Thor Lake, Northwest Te
Slide 25: Other Projects
Other Projects East Kemptville Tin • Overview: ⚬ Ownership: 100% owned ⚬ Property Size: ￭ One contiguous exploration licenses: Over 2,880 acres (1,166 hectares) • Location: ⚬ Approximately 45 km northeast of Yarmouth, Nova Scotia ⚬ Vicinity of the former East Kemptville Tin Mine • Stage: ⚬ Exploring
Slide 26: Key Milestones
Key Milestones • Intersected 1.54% Li2O over 136.95m at Separation Rapids • Intersected 1.67% and 1.68% Li2O at Separation Rapids • Entered $15M Funding 2024 • Completed PEA: $4.1 Billion NPV and 48% IRR at Thunder Bay 2024 • Ongoing development and Agreement with Lind Facility optimization at Thund
Slide 27: Capital Structure
Capital Structure As at July 9,2024 Ownership Structure Description (Cdn) Value Ticker Symbol TSX: AVL 52 week high/low $0.18/0.04 Common Shares Outstanding 565.1M Deferred Share Units & 5.7M Restricted Share Units Stock Options 25.8M Warrants 42.5M Convertible Note Payable (Lind) 58.6M Fully Dilute
Slide 28: Thank You
Thank You Contact Information Avalon Advanced Materials Inc. 130 Adelaide St. W, Suite 2060 Toronto, ON M5H 3P5 Tel: (416) 364-4938 ir@AvalonAM.com www.avalonadvacedmaterials.com TSX:AVL TSX:AVL OTCQB:AVLNF OTCQB:AVLNF FRA:OU5A FRA:OU5A
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