Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — The Metals Company — SPAC Merger (March 2021)
34 slides from Tmc The Metals's SPAC merger presentation, March 2021
Slide 1: Revolutionizing the Mineral Supply Chain for Fast Growing EV Demand
BETTER METALS FOR EVs March 2021 Revolutionizing the Mineral Supply Chain for Fast Growing EV Demand Investment summary for The Metals Company, Inc.
Slide 2: Disclaimer
BETTER METALS FOR EVs 2 Disclaimer. This presentation is for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to the proposed business combination between Sustainable Opportunities Acquisition Corporation (“SOAC”) and DeepGree
Slide 3: DeepGreen + SOAC = The Metals Company
BETTER METALS FOR EVs 3 DeepGreen + SOAC = The Metals Company1. Gerard Barron Tony O’Sullivan Erika Ilves The Metals Company CEO & Chairman Project Development Strategy SOAC has identified DeepGreen as a unique opportunity to solve the looming global battery metals supply problem of the Clean Energy
Slide 4: Transaction summary
BETTER METALS FOR EVs 4 Transaction summary. The business - Founded in 2009, DeepGreen Metals, Inc. is the developer of the world’s largest estimated deposit of battery metals1—seafloor polymetallic nodules—with the lowest expected lifecycle ESG footprint on the planet and people2 Transaction size -
Slide 5: Investment highlights
BETTER METALS FOR EVs 5 Investment highlights. The world’s largest estimated source of battery metals Enough nickel, copper, manganese and cobalt in situ to electrify 280 million EVs1 Four battery metals in high concentrations in a single resource 3.2% nickel equivalent2 vs. 0.3-1.9% for the world’s
Slide 6: Surge in EV demand will test the limits of metals supply
BETTER METALS FOR EVs 6 Surge in EV demand will test the limits of metals supply. Global electric vehicle sales 55.5 OEM commitments to EV development Millions of units1 Public commitments2 ~$18bn3 $22bn investment in committed towards electromobility and electrification through 2025 hybridization t
Slide 7: Massive deficits in key EV battery metals are expected from 2025
BETTER METALS FOR EVs 7 Massive deficits in Nickel class 1 deficit without greenfield developments Global refined nickel supply and demand, in Mt2 key EV battery metals are expected from 2025. 2.6 28 2.4 Ni Nickel Demand 2.3 2.2 58.693 2.0 ~40% Global battery demand1 1.8 deficit By application, in g
Slide 8: Solution: sourcing battery metals from a vast resource of polymetallic nodules
BETTER METALS FOR EVs 8 Solution: sourcing PROTECTED AREAS (1.44 million km2) Areas of Particular Environmental battery metals from Interest (APEI) a vast resource of polymetallic EXPLORATION AREAS (1.1 million km2) Exploration contract areas granted by nodules. the International Seabed Authority (I
Slide 9: High-grade, consistent and scalable resource offers many advantages
BETTER METALS FOR EVs 9 High-grade, consistent and scalable resource offers many advantages. 1.1% 1.3% 0.2% 29% 29 28 27 25 Cu Copper Ni Nickel Co Cobalt Mn Manganese 63.546 58.693 58.933 54.938 Rest of nodule mass: 41% hydroxides, 18% Mg/Na/Al/Si; 8% Fe; 0.7% micronutrients. Unattached to the seafl
Slide 10: Enabling us to dramatically reduce lifecycle ESG impacts of EV battery metals
BETTER METALS FOR EVs 10 Enabling us to dramatically reduce Resource use lifecycle ESG impacts of EV battery metals… -75% -94% -89% +99.6% Land based mining impacts globally includes deep sea tailings placement which can be very damaging to the Nodules vs. land ores Ore Land Water Seafloor environme
Slide 11: Second lowest-cost nickel producer in the world
BETTER METALS FOR EVs 11 …and become the second lowest-cost nickel producer in the world1. Nickel C1 cost curve on a by-products’ basis1 C1 Cash Cost represents all direct costs, incl. mining, processing, freight, SGA minus revenue from by-products 10.0 5.0 NORI-D A v e ra g e 2,3 ($2.4/lb) C1 cash
Slide 12: Comparing our portfolio to other nickel projects
BETTER METALS FOR EVs 12 Comparing our portfolio to other nickel projects. World’s largest undeveloped nickel projects World’s largest nickel operations Total resources (inferred, indicated & measured), in Mt1,3 Total resources (inferred, indicated & measured), in Mt1,3 29.02 Ni equivalent resources
Slide 13: Developing NORI-D first with upside if full portfolio is developed
BETTER METALS FOR EVs 13 We are developing NORI-D area first with potentially massive investor upside if full portfolio is developed. Estimated resource + Additional upside 2 3 Marawa Full portfolio1 Estimated resource $6.8B NPV4 $31.3B NPV 4 Resource: 356Mt Resource definition Resource: 1.6Bt Produ
Slide 14: Resource is effectively and efficiently defined
BETTER METALS FOR EVs 14 Resource is effectively and efficiently defined. NORI TOML BOX CORE SAMPLING 1 250 box cores collected2 82,000 kg (wet) nodules collected2 13,950 biological samples collected2 AUV CAMERA IMAGERY1 178,591 km2 of high-res bathymetric survey2 5,439 km2 detailed seafloor imagery
Slide 15: Transparent regulatory regime supported by international law
BETTER METALS FOR EVs 15 Transparent regulatory Seabed resources in the high seas are governed by the International Seabed Authority (ISA) regime supported by - Autonomous international organization international law. - Modern regulatory regime - Transparency & civil society engagement - Less sovere
Slide 16: Strategic partners and other organizations helping us accelerate development
BETTER METALS FOR EVs 16 Strategic partners and other organizations helping us accelerate development. OFFSHORE ONSHORE RESOURCE COLLECT SHIP PROCESS Invested in 2012. Holds offtake on NORI Area: 28 TECHNOLOGY DEVELOPMENT FLOWSHEET Ni 50% of Nickel 58.693 production Invested $70M in 2019-2020. Devel
Slide 17: NORI-D planned production to commence in 2024
BETTER METALS FOR EVS EVs 17 NORI-D planned production to DISCOUNTED commence in 2024 and expected CASH FLOW JAN 2021 $6.8 billion to reach close to Net present value at 9% discount rate $2 billion in EBITDA in 2027. EST. ANNUAL REVENUE1 $4.7 billion EST. ANNUAL EBITDA1 $2.9 billion EST. PRE-CONSTRU
Slide 18: Transaction expected to fully fund pre-production capital and Project Zero
BETTER METALS FOR EVs 18 Transaction currently expected to fully fund pre-production capital and “Project Zero” (initial commercial production). K e y Tr a n s a c t i o n Te r m s I l l u s t r a t i v e P r o F o r m a Va l u a t i o n - The Metals Company and SOAC raised a fully committed, upsize
Slide 19: NORI-D stand-alone valuation believed to justify TMC value
BETTER METALS FOR EVs 19 NORI-D stand-alone valuation believed to justify TMC value before upside from the rest NORI-D of the field. Future Discounted NORI-D NPV of ~$10.8bn using current spot prices3 $9.9bn Fundamental ($31/share) value range Full field fundamental value of $38bn based on Initial a
Slide 20: Traditional miners provide a long-term floor valuation
BETTER METALS FOR EVs 20 Traditional miners provide a long-term floor valuation with NORI-D upside to more disruptive peers in the EV value chain. F V / E B I T DA ( C Y + 1 ) Median: 21.3x 33.9x 25.3x 21.3x 17.3x 6.8x 2.8x The Metals Company (NORI-D) Base Metals Producers EV Metal Producers Battery
Slide 21: Value upside driven by trading up to EV metals producer peers
BETTER METALS FOR EVs 21 Value upside driven by ultimate trading up of TMC to EV metals producer peers. NORI-D Future Discounted $25.8bn ($73/share) $12.9bn ($39/share) $8.6bn ($27/share) 63% Discount to Midpoint $2.4bn $4.3bn ($10/share) ($14/share) 6.5x-13.0x Implied Discounted Firm Value Post Mon
Slide 22: Why SOAC is excited to partner with DeepGreen
BETTER METALS FOR EVs 22 Why SOAC is excited to partner with DeepGreen to form The Metals Company. Sustained secular demand growth for nickel and copper Rapid adoption of electrification has created a meaningful increase in demand for battery metals Significant projected supply shortfall and increas
Slide 23: Appendix
BETTER METALS FOR EVs 23 Appendix.
Slide 24: Backed by an experienced and committed group of professionals
BETTER METALS FOR EVs 24 Backed by an experienced and +30-50 +100 +55 committed group of people at Maersk Supply researchers & contractors engineers at Allseas working on Services supporting offshore contributing to the ESIA1 pilot collection system professionals. GERARD BARRON CEO & Executive Chair
Slide 25: SOAC is proud to form a partnership with TMC
BETTER METALS FOR EVs 25 SOAC is proud to form a partnership for Experienced Management Team powerful, profitable and sustainable growth Scott Leonard with TMC. CEO Key differentiating factors Proven Fundraising and Public Company Track Strong Investor Base Robust Relationships With Record Inside of
Slide 26: TMC offers a significant discount compared to base metal peers
BETTER METALS FOR EVs 26 TMC offers a significant discount at its current valuation, NORI-D as compared to trading levels of base metal producing peers. M a r ke t C a p / F u n d a m e n t a l Va l u e 1.6x 1.1x 0.9x 0.8x 0.7x Median: 0.5x 0.35x 0.4x 0.3x 0.3x 0.2x TMC TMC Western Areas Ivanhoe Min
Slide 27: Conventional mining in high-risk jurisdictions with most biodiversity
BETTER METALS FOR EVs 27 Conventional mining in high-risk jurisdictions with most biodiversity. Note: Biodiversity defined as species richness. Source: Mineral Commodity Summaries, U.S. Geological Survey, January 2020; “Where Should Metals for the Green Transition Come From?”, Paulikas et al, April
Slide 28: Tricky geopolitics will stay as we decarbonize
BETTER METALS FOR EVs 28 Tricky geopolitics will stay as we decarbonize. Top 3 producing countries Share in total production, 20191 100% 90% China 10% 80% Australia 4% Russia 4% 70% 23% Chile 60% 13% Gabon 50% 10% Russia 6% 8% 40% Iran 17% China 12% 16% Russia Philip- Australia 71% 18% DRC 11% 30% p
Slide 29: Incentives aligned through a compelling earn-out structure
BETTER METALS FOR EVs 29 Incentives aligned through a compelling earn-out structure. Overview • Eight tranches of earn-out shares available to selling shareholders • Shares vest if share price trades above the strike price for 20 out of 30 trading days • Tranches range from $15.00 per share to $200.
Slide 30: NORI-D estimated project production
BETTER METALS BETTER METALSFOR FOREVsEVs 30 Volume (dry) pa1 Revenue pa1 NORI-D estimated Polymetallic Nodules 9.3 Kt $4,679 million project production. PRODUCTS Nickel – contained in Ni sulphate, matte and alloy 119.1 Kt $2,200 million (46%) Manganese – contained in 40% Mn silicate slag 2,847.0 Kt
Slide 31: Average product prices assumed in the Feb 2021 Initial Assessment
BETTER METALS FOR EVs 31 Average product prices assumed in the Feb 28 N I C K E L S U L FAT E NiSO4.6H2O 29 C O P P E R C AT H O D E 2021 Initial Ni $16,106 per tonne Cu Assessment for Nickel 58.693 + $1,605 per tonne average additional Copper 63.546 $6,787 per tonne sulphate premium NORI-D. 27 C O
Slide 32: Disclaimer for Canadian investors
BETTER METALS FOR EVs 32 Disclaimer for NOTICE TO CANADIAN INVESTORS This presentation has been prepared by SPAC solely for information purposes and is furnished to you on a confidential basis. Recipients of this presentation may not reproduce or otherwise redistribute, in whole or in part, this pre
Slide 33: Disclaimer for Canadian investors (cont'd)
BETTER METALS FOR EVs 33 Disclaimer for Saskatchewan The right of action for damages or rescission described herein is conferred by section 138 of The Securities Act, 1988 (Saskatchewan), as amended (the “Saskatchewan Act”). The Saskatchewan Act provides, in relevant part, that where an offering mem
Slide 34: Disclaimer for Nova Scotia
BETTER METALS FOR EVs 34 Disclaimer for Nova Scotia The right of action for damages or rescission described herein is conferred by section 138 of the Securities Act (Nova Scotia) (the “Nova Scotia Act”). The Nova Scotia Act provides, in relevant part, that in the event that an offering memorandum (s