Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (October 2023)
39 slides from Almonty Industries's investor presentation, October 2023
Slide 1: Investor Presentation: Building The World's Largest Tungsten Mine
TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F INVESTOR PRESENTATION Building The World‘s Largest Tungsten Mine OCTOBER 2023 INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CA
Slide 2: Disclaimer for Forward-Looking Statements
DISCLAIMER FOR 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 id
Slide 3: Agenda
I ALMONTY AT A GLANCE II SANGDONG III PANASQUEIRA AGENDA IV CORPORATE V APPENDIX
Slide 4: Almonty at a Glance
+ ALMONTY l ALMONTY AT A GLANCE
Slide 5: Becoming the Largest Tungsten Producer Outside China
BECOMING THE LARGEST TUNGSTEN PRODUCER OUTSIDE CHINA THE COMPANY THE MARKET TUNGSTEN (WOLFRAM*) PRODUCER W 1 Mine in production 1 Mine under construction ALMONTY PRODUCTION TARGET 2027 2 Development projects 1 Past producing mine 43% OF NON-CHINA TUNGSTEN MASTERPIECE SANGDONG 7% OF GLOBAL SUPPLY Str
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT ISSUED CAPITAL MARKET CAP TSX SHARE PRICE TSX:AII in C$ 228m C$ 106.0m 1,5 Common Shares At C$ 0.465 on Oct 10, 2023 CASH LONG-TERM DEBT C$ 5.7m C$65.2m 1 as at June 30, 2023 Includes loans to shareholders PROJECT FINANCE TOTAL ORE RESERVES US$ 75.1m 80mt 0,5 KfW project finance l
Slide 7: Almonty's Global Presence
ALMONTY‘S GLOBAL PRESENCE Diversified and Experienced Operator in Conflict-free Regions 3 1 4 2 + Downstream In S. Korea, see slide 15 & 31 PRODUCING ASSET UNDER CONSTRUCTION DEVELOPMENT PROJECTS 1 2 3 4 PANASQUEIRA – PORTUGAL SANGDONG – SOUTH KOREA VALTREIXAL – SPAIN LOS SANTOS TAILINGS – SPAIN ACQ
Slide 8: Tungsten Price on the Rise
TUNGSTEN PRICE ON THE RISE TUNGSTEN PRICE IN US$ PER MTU TIGHT MARKET WITH GEOPOLITICAL TENSION $350 $350 ➢ South Korea, the largest per capita tungsten consumer worldwide, imports 94.7% of it’s tungsten supply from China Highly Profitable Price Zone $318 ➢ Increasing dependence on China and Russia
Slide 9: Main Reasons for Growing Tungsten Demand
MAIN REASONS FOR GROWING TUNGSTEN DEMAND ELECTRIC VEHICLE BOOM COULD BOOST TUNGSTEN ➢ Tungsten is an increasingly important component in the production of EV batteries due to its ability to enhance their high energy density ➢ Development in the battery field is ongoing as performance, safety and cos
Slide 10: Reasons to Invest into Almonty
10 REASONS TO INVEST INTO ALMONTY Unique position in the tungsten market due to first-class projects & proven track record PROVEN TRACK RECORD 2 NEAR-TERM GROWTH STORIES Sold operations for 21x earnings during a previous supply squeeze in Low risk extension at Panasqueira as well as Phase II + Tungs
Slide 11: Sangdong
+ ALMONTY II SANGDONG
Slide 12: Shovel Ready Project in a Supportive Tier 1 Jurisdiction
SHOVEL READY PROJECT IN A SUPPORTIVE TIER 1 JURISDICTION Low pre-production capex, great economics & long mine life US$ 228m C$ 72.0m Start-Up Capex Annual EBITDA @1.2m tons & $300/mtu $110/mtu 90+ years Cash costs per ton* Potential Mine Life ➢ Fully permitted, construction well advanced, US$40.2m
Slide 13: Project Financing & Offtake Agreement
PROJECT FINANCING & OFFTAKE AGREEMENT Reputable partners confirm high quality project 15-YEAR OFFTAKE AGREEMENT 70% OF CAPEX FINANCED THROUGH SENIOR PROJECT FINANCE LOAN GOVERNMENT GUARANTEE GUARANTEES ~US$580M REVENUE SIZE US$ 75.1m ➢ Global tungsten product major INTEREST 3-M LIBOR/SOFR + 2.3% ➢ L
Slide 14: Sangdong Massive Orebody with Outstanding Economics
SANGDONG MASSIVE OREBODY WITH OUTSTANDING ECONOMICS SIGNIFICANT RESERVE UPSIDE HIGHEST GRADE LOWEST COST HIGHEST RECOVERY Largest tungsten deposit in the world One of the highest grades in the world. Estimated lowest quartile production World class recovery of 85% and by Inferred Resource based on h
Slide 15: Sangdong Project - Outlook
SANGDONG PROJECT - OUTLOOK Key milestones ahead – nearing completion 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRAWDOWN & GRACE PERIOD DEVELOPMENT FUND REPAYMENT PLANT CONSTRUCTION COMPLETION & PLANT COMMISSIONING CONSTRUCTION 12-MONTH RAMP-UP MINE DEVELOPMENT & EARTHWORK/DRIFT MINING & MIN
Slide 16: Downstream at a Glance
DOWNSTREAM AT A GLANCE Key Factors & Financial Summary Phase I Phase II + Tungsten PROJECT SUMMARY Phase II (financed & in construction) Oxide (TO) plant Expected start of production 2024 2026/2027 2026/2027 WO3 production ~2,300 mtu ~4,750 mtu Tungsten Oxide gets produced from Sangdong concentrate
Slide 17: Almonty Korea Moly
ALMONTY KOREA MOLY Large molybdenite-quartz vein stockwork below Sangdong’s tungsten deposit ALMONTY KOREA MOLY ➢ 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 ➢ Signif
Slide 18: Panasqueira
+ ALMONTY II] PANASQUEIRA
Slide 19: Panasqueira – WO3 Production for More Than a Century
PANASQUEIRA – WO3 PRODUCTION FOR MORE THAN A CENTURY Proven track record in a first-class jurisdiction KEY FACTS DEPOSIT SUMMARY ➢ Located in Covilhã, Castelo Branco district, Portugal Tonnage WO3 Grades ➢ Historical production since the early 1900s and Current Status is in Production ➢ L4 extension
Slide 20: Panasqueira – Getting to the Next Level
PANASQUEIRA – GETTING TO THE NEXT LEVEL Economic Model and Future Outlook The actual resource map of L4 shows the veining system extending extensively in L4 EFFICENCY GAINS EXPLOTATION SYSTEM Maximize L4 extraction (700kt/y) Similar to upper levels for efficiency while reducing upper levels Explorat
Slide 21: Panasqueira – Cleanest Output Material
PANASQUEIRA – CLEANEST OUTPUT MATERIAL Panasqueira Tungsten Mine Overview Historical Legacy (1886-Present) Excellent Output Quality Unique Proposition ➢ 136 years of Uninterrupted Exploitation ➢ Highest grade recovery with nearly 74% ➢ Operational Continuity until 2052 (Extendable) ➢ 107,000+ tons o
Slide 22: Panasqueira – Visit by the US Department of Commerce/DLA
PANASQUEIRA –VISIT BY THE US DEPARTMENT OF COMMERCE/DLA Impressions of the visit by the US Department of Commerce on September 29, 2023 ➢ Delegation of the US Department of Commerce visited Panasqueira mine in Portugal ➢ General discussions regarding the planned L4-extension ➢ Open dialog about Pana
Slide 23: Panasqueira – Mining Facilities
PANASQUEIRA – MINING FACILITIES Existing Infrastructure & Equipment will be used of the L4-Extension ➢ Panasqueira mine has extensive mining, processing and environmental infra-structures ➢ Plays an important role in the regional economy, as the local community depends almost entirely on the mine fo
Slide 24: Panasqueira Tungsten-Tin Mine
PANASQUEIRA TUNGSTEN-TIN MINE 23
Slide 25: Almonty Group Resource Summary
ALMONTY GROUP RESOURCE SUMMARY 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 & probable) Los Santos 3,767 kt 0.19% 7,157 t Valtreixal 2,549 kt 0.34% 8,667 t Total 16,163 kt 0.36% 56,863 t S
Slide 26: Corporate
+ ALMONTY IV CORPORATE
Slide 27: Almonty Group – Production & Financial Growth Profile
ALMONTY GROUP – PRODUCTION & FINANCIAL GROWTH PROFILE Pro-Forma Forecast – Almonty Combined* Los Santos Panasqueira Sangdong Base Case Sangdong Extension Sangdong Oxide Plant 2024F 2025F 2026F 2027F 2028F 2029F 2030F 100% 400 400 Revenue (Left) EBITDA (Right) 75% 300 % EBITDA Margin US$m 51% 53% 53%
Slide 28: Sangdong ESG
SANGDONG ESG Equator principles and beyond. Assessment of environmental and social risks of major projects based on 10 principles, including regular 1 monitoring by independent third parties and intensive dialogues with the local population and their organizations Almonty has agreed to develop the S
Slide 29: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7 28
Slide 30: Appendix
+ ALMONTY V APPENDIX
Slide 31: Appendix 1 – Board of Directors and Officers
APPENDIX 1 – BOARD OF DIRECTORS AND OFFICERS Director Experience ➢ Currently a Partner of Almonty Partners LLC, a privately-held company specializing in tungsten mining investments and has over 16 years of experience in the tungsten mining industry Lewis Black ➢ Formerly Chairman and CEO of Primary
Slide 32: Appendix 2 – Downstream Extension
APPENDIX 2 – DOWNSTREAM EXTENSION Almonty’s plans to participate in the battery anode & cathode manufacturing industry SOUTH KOREA & KEY DEMAND DIRECTIONS ALMONTY’S CURRENT PRODUCTION CHAIN 5 Reasons for the importantce of Tungsten Oxide PROCESSING 65% WO3 SUPPLY TO 1. South Korea is the largest per
Slide 33: Appendix 3 – Tungsten Uses I/II
APPENDIX 3 – TUNGSTEN USES I/II – INDUSTRIES & HIGH-TECH WORLD SAW TEETH FOR PLATE FOR STONE HAMMER BLADES OF A CIRCULAR SEMICONDUCTORS AUTOMOTIVE MARKET DRILL SAW 65G 400G FILM PROJECTOR CASING FOR LAMP LUXURY WATCH INSERTS FOR AIRCRAFT BALLISTIC EQUIPMENT 35G 750G 74 4f145d46s2 W TUNGSTEN 183.84 P
Slide 34: Appendix 4 – Tungsten Uses II/II – Military Applications
APPENDIX 4 – TUNGSTEN USES II/II – MILITARY APPLICATIONS OF TUNGSTEN TUNGSTEN IN MILITARY USE ➢ High Melting Point: Tungsten's melting point of 3,442°C is the highest of any element, making it ideal for creating materials that can withstand high temperatures without deformation ➢ Hardness: Tungsten
Slide 35: Appendix 5 – Massive Growth Potential in Battery & Semiconductors
APPENDIX 5 – MASSIVE GROWTH POTENTIAL IN BATTERY & SEMICONDUCTORS TODAY TOMORROW SCARCE METAL HIGH DEPENDANCY ON CHINA DOWNSTREAM EXTENSION IN KOREA Sangdong could solve dependency Battery & semiconductor industry offers massive additional growth potential for tungsten market ➢ Korea – location of t
Slide 36: Appendix 6 – Supply / Demand Gap Continuing to Widen
APPENDIX 6 – SUPPLY / DEMAND GAP CONTINUING TO WIDEN SUPPLY & DEMAND GAP IS INCREASING ➢ Strong growth is anticipated to persist in the cemented carbides sector, as well as in super alloys and other alloys ➢ Additionally, there is a rising demand for progressive technologies and tungsten utilization
Slide 37: Appendix 7 – Defined as Conflict Material – Lack of Transparency
APPENDIX 7 – DEFINED AS CONFLICT MATERIAL – LACK OF TRANSPARENCY CONFLICT MATERIAL “3TG” Tin (Sn) Tantalum (Ta) Tungsten (W) Gold (Au) BACKGROUND AND CURRENT SITUATION NON-TRANSPARENT SUPPLY & STRONGLY CHINA DOMINATED ➢ The SEC has implemented regulations to address the ➢ While the US & Europe have
Slide 38: Appendix 8 – Construction in Ore
APPENDIX 8 – CONSTRUCTION IN ORE Mineralization very close to the surface allows for immediate start of production 37
Slide 39: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7
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