Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (November 2022)
31 slides from Almonty Industries's investor presentation, November 2022
Slide 1: Building The World's Largest Tungsten Mine
INVESTOR PRESENTATION Building The World’s Largest Tungsten Mine + ALMONTY INVESTOR PRESENTATION ADDRESS PREPARED BY ALMONTY INDUSTRIES INC. 100 KING ST W PRESIDENT & CEO: LEWIS BLACK ONTARIO, M5X 1A9. CANADA ALMONTY Oo 0,0 0 eeee OMe . (Ee) CONTACT US +1647 438-9766 info@almonty.com O@o OeoO
Slide 2: Forward-looking statements
When used in this investor presentation, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and info
Slide 3: The Company and the Market: Tungsten Supply
THE COMPANY THE MARKET ALMONTY PRODUCTION TARGET 2024 Tungsten (Wolfram*) producer W 1 Mine in production 1 Mine under construction 30% OF NON-CHINA TUNGSTEN 2 Development projects 1 Past producing mine 7% OF GLOBAL SUPPLY 100% Masterpiece Sangdong 90% TIGHT MARKET & SUPPLY Building the largest mine
Slide 4: Capital structure and shareholders
Issued capital Cash 1 1.50 Ordinary Shares (A$2.06m) As of 30 Jun 2022 Market cap Long-term debt 1.10 CAD 1 At 0.67 C$ on 27 October 2022 Loans from existing shareholders 1.00 Ore reserves AUD Project finance KfW project finance loan secured @ avg. grade of 0.36% 0.50 C$0.67 Director, President and
Slide 5: Almonty's tungsten assets
3 2 1 4 1 2 3 4 PANASQUEIRA – PORTUGAL SANGDONG – S.KOREA VALTREIXAL – SPAIN LOS SANTOS – SPAIN ACQUIRED: 2016 ACQUIRED: 2015 ACQUIRED: 2013 - 2016 ACQUIRED: 2011 STAGE: PRODUCTION STAGE: CONSTRUCTION STAGE: PRE-FEASIBILITY STAGE: CARE & MAINTENANCE P&P: 7,896kt @ 0.45% WO3 P&P: 2,577kt @ 0.35% WO3
Slide 6: End Markets
Tungsten Price $350 KOREA — imports 94.7% of all tungsten from China and is the largest per capita consumer worldwide. $300 China & Russia dependency increases market tensions. U.S. Congress in 2018 passed the “National Strategic and $250 Critical Minerals Production Act” (H.R. 520) defining tungste
Slide 7: Sangdong
A SANGDONG iy ES “=m cc “=7 bax bt, Oo re] ra = | ag oll a < CONSTRUCTION OF ATIER1 PROJECT IN KOREA 7 =—— A ALMoNTY
Slide 8: Sangdong key economics: US$75m start-up CapEx
US$75m $72m Start-Up CapEx Annual EBITDA @1.2m tons & $300/mtu $110/mtu 90 years Cash cost per ton Potential Mine Life Fully permitted, construction 25% complete, US$21m deployed to project development. Tungsten Tonnage Contained Trioxide % (Mt) WO3 (t) Construction with Metso Outotec (WO3) 7.9 0.47
Slide 9: Management team
Lewis Black – Director, President and CEO Emil Corfu –Director of Plant Management Over 16 years experience in the tungsten mining industry. 20+ years experience in mine plant construction Former chairman and CEO of Primary Metals. and operation; ex-Metso. Former vice president of the International
Slide 10: Peer comparison of tungsten projects
Producing Construction/Development Study or Exploration Stage Mt Sangdong Dolphin Hemerdon Mulgine Watershed 1.00% Financing, Status Construction Undeveloped PFS DFS development 0.90% Dolphin 7.9Mt 4.4Mt 63,6Mt Reserves n.a. n.a. 0.80% @ 0.45% @ 0.92% @ 0.19% M.Cap. (AU$m) 155 129 84 77 0.70% 8.3Mt
Slide 11: Global tungsten production cost curve
GLOBAL TUNGSTEN PRODUCTION COST CURVE 400 - ALMONTY MINES - CHINESE MINES State-owned, large companies in China - OTHER MINES NOT LOCATED IN CHINA US$205-245/MTU 300 Size of block - % of total tungsten output US$ per MTU 200 ESTIMATED 100 0 NUI PANAS- MITTER- SANGDONG LOS LA PARILLA CANTUNG SANTOS P
Slide 12: Sangdong Mine
S N MINE PORTAL Sangdong Mine WTC ONE 541m EIFFEL TOWER 236m UPPER & LOWER HANGING WALL 1 km
Slide 13: 15-year offtake agreement and project financing
15-year offtake agreement 70% of CAPEX financed through Government guarantee guarantees ~US$580M cashflow senior project finance loan • Global tungsten product major SIZE US$75.1M • Long-standing partner of Austrian partners INTEREST 3-M LIBOR/SOFR + 2.5% • Unprecedented floor price guarantee with f
Slide 14: Construction of Sangdong commenced in mid 2021
A KOREA - CONSTRUCTION OF SANGDONG COMMENCED IN MID 2021 Building the largest tungsten mine outside of China MONTY 2 RSME aA A atmonty
Slide 15: Construction in ore
AA CONSTRUCTION “IN ORE” Mineralization at the surface allows for immediate start of production.
Slide 16: Key milestones ahead
Key milestones ahead 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRAWDOWNS & GRACE PERIOD Development Fund REPAYMENT PLANT CONSTRUCTION COMPLETION Plant & COMMISSIONING Construction 12-MONTH RAMP-UP MINE DEVELOPMENT & EARTHWORK/DRIFT Mining & Mine START MINING ACTIVITIES Development
Slide 17: Panasqueira production and revenues
Located in Covilha, Portugal Tonnage Historical production since the early 1900s WO3 Grades Current Status - Production Production anticipated to last more than 20 years 10.6Mt 11.9Mt 3.0Mt Forecasted yearly production of ~78,100 MTU WO3, (67,600MTU WO3 and 10,500 MTU 0.21% 0.23% 0.24% Equivalent WO
Slide 18: Videos accessible at almonty.com
Videos accessible at: https://almonty.com/project/panasqueira/
Slide 19: Total reserves and resources
Classification Deposit Tonnage (kt) Grade (%) Contained metal (t) Sangdong 7,896 kt 0.47% 37,111 t TOTAL RESERVES Panasqueira 1,951 kt 0.20% 3,928 t (proven and probable) Los Santos 3,582 kt 0.23% 8,325 t Valtreixal 2,549 kt 0.34% 8,667 t Total 15,978 kt 0.36% 58,031 t Sangdong 8,334 kt 0.49% 40,670
Slide 20: Corporate
A CORPORATE hw Gia” (ae i 2 td 0 = BRS ALMONTY CONSTRUCTION OF ATIER1 PROJECT IN KOREA =—— A ALMoNTY
Slide 21: Combined production and cash flow projections
Potential cumulated ~US$1.2bn Cash on Hand*: by 2050 Sangdong Extension Case ~US$300m Revenues EBITDA Capex Free Cash Flow (After Tax & Debt Service) Cash on Hand Almonty Combined* by 2030 2021 F 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F 2028 F 2029 F 2030 F 200 150 US$m 100 50 0 -50 30+ YEARS ANNUA
Slide 22: World class mine secured
WORLD Representing 30% of all tungsten outside of China and 7-10% of global supply at High grade & leading resource size CLASS MINE 90-year mine life with resources of 52Mt at ~0.44-0.49% WO3 US$75m with Germany’s state bank KfW signed, guaranteed by Austrian bank OeKB SECURED Secured 15 years Floor
Slide 23: www.almonty.com
INVESTOR PRESENTATION PREPARED BY ALMONTY INDUSTRIES INC. PRESIDENT & CEO: LEWIS BLACK ALMONTY e3°e ADDRESS CONTACT US. fe) © 100 KING ST W +1 (647) 438 9766 ONTARIO, M5X 1A9. INFO@ALMONTY.COM CANADA 23
Slide 24: Appendix
APPENDIX
Slide 25: Director Experience
Director Experience • Currently a Partner of Almonty Partners LLC, a privately-held company specialising in tungsten mining investments and has over 16 years of experience in the tungsten mining industry. Lewis Black (Executive Director, • Formerly Chairman and CEO of Primary Metals Inc. (PMI), a fo
Slide 26: South Korea and key demand directions
SOUTH KOREA AND KEY DEMAND DIRECTIONS South Korea is the largest per capita consumer of tungsten worldwide, however, imports 94.7% of tungsten used, 92.8% of Tungsten oxide from China South Korea consumes ~40% of Tungsten Hexafluoride (WF6), which is used in the semiconductor production. South Korea
Slide 27: Almonty Korea Moly Project
Almonty Korea Moly Project Almonty Korea Moly (AKM) Project with its large molybdenite-quartz vein stockwork is located on Sangdong’s existing fully permitted, mining lease, about 190km southeast of Seoul Significant maiden molybdenum resource defined 150m adjacent to tungsten orebody at Sangdong Mi
Slide 28: Equatorial principles and beyond
Equatorial principles and beyond. Assessment of environmental and social risks of major projects based on 10 principles, 1 including regular monitoring by independent third parties and intensive dialogues with the local population and their organizations. Almonty has agreed to develop the Sangdong m
Slide 29: Tungsten applications
X-ray beam Inserts for aircraft 5G network infrastructure Automotive market 74 4f145d46s2 W Tungsten 183.84 Defense Ballistic equipment Semiconductors Source: Living Metals Nr. 17 - 2019, The Plansee Group 2019
Slide 30: Tungsten uses by weight
Plate for stone hammer drill Saw teeth for blades of a circular saw 65g 400g Casing for luxury watch Film projector lamp 35g 750g 74 4f145d46s2 Pins for doorlock 12g W Tungsten 183.84 Crushers & mills 25-80kg Heating wires for car window 5g Vibration alarm unit in smartphones Irradiation equipment 0
Slide 31: Nano Tungsten Oxide
Nano Tungsten Oxide Korea – location of the Sangdong mine - imports 94.7% of all The material to supply the battery anode & cathode tungsten and is the largest per capita consumer worldwide. manufacturing industry. Declared “critical raw material” as a result of high supply-risk The raw material to
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