Millennium Minerals — BlackEarth Minerals NL — Investor Presentation (November 2022)
24 slides from Millennium Minerals's investor presentation, November 2022
Slide 1: Premium Graphite for a Clean Energy Future
Premium Graphite for a Clean Energy Future The right product: ideal for EVs | The right time: supply deficit from 2023 | The right cost base: forecast ROI of 32% Investor Presentation | November 2022 ASX: BEM
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of BlackEarth Minerals NL (‘‘the Company’) and its projects, are forward-looking statements. Such forward- looking statements are necessarily based
Slide 3: BlackEarth – Snapshot of Key DFS Highlights
BlackEarth – Snapshot of Key DFS Highlights 3
Slide 4: DFS to Underpin Maniry Graphite Project Development
DFS to Underpin Maniry Graphite Project Development • BlackEarth owns 100% of the Maniry Graphite Project in Madagascar: First production set for Dec Q, 2024 Financial Metric Unit DFS Result (1) • DFS shows Maniry set to generate strong financial returns (32% pre-tax ROI, 3.8-year payback) (1) Proje
Slide 5: Maniry DFS – Upgraded investment in Stage 1 CAPEX
Maniry DFS – Upgraded investment in Stage 1 CAPEX • BlackEarth has committed to an increase in Stage 1 CAPEX – total investment now US$73.3m cost (excluding contingency) • Benefits of the increased Stage 1 CAPEX investment provide for – • Additional 27,000 mt of concentrate produced in Stage 1 earni
Slide 6: Significant NPV Valuation & Value Proposition
Significant NPV Valuation & Value Proposition Combined Project Valuation Breakdown vs BlackEarth Combined Capex and Enterprise Value (EV) 20221 Definitive Feasibility Study confirmed: Significant Global Graphite Resource to produce over 1,200,000 tonnes of concentrate over current Maniry mine life P
Slide 7: BlackEarth – A Global Graphite Group
BlackEarth – A Global Graphite Group Growth and Value Opportunities • Developing the Maniry Graphite Project • A globally significant resource to produce over 1.2 million tonne of product over its current mine life • Madagascar – positioned to be the world’s largest exporter by 2023 behind China • P
Slide 8: Applications for Maniry Graphite – key markets in place
Applications for Maniry Graphite – key markets in place Graphite from BlackEarth’s Maniry project meets the specifications required for applications in the expandables, refractory and lithium-ion battery industries. Expandables Refractory Li-Batteries Previously achieved positive test Successful
Slide 9: Short Term Actions – News Flow
Short Term Actions – News Flow • Scoping Study results for Battery Anode Material Plant – to be developed in Europe • Offtake Agreements confirmed for Maniry Concentrate • Completion of Maniry Project ESIA to align with Equator Principles • Maniry Project Financing • Complete final Licencing and Per
Slide 10: Capital Structure
Capital Structure Share Price (31 October 2022) 10 cents Major Shareholders (issued shares) Shares on issue 279m • Lithium Australia Ltd – 4.7% Options and Performance Rights 34.6m • Canadian Resource Fund – 4.95% Market Capitalisation (undiluted) @ 10 cents A$28m • Board and Management – 6.5% • Top
Slide 11: Board & Management
Board & Management •Over 30 years’ experience in the resources industry including 14 years’ experience as a listed resources company director George Bauk Non Executive Chairman •Has held global operational and corporate roles with WMC Resources and Western Metals, and most recently was MD of Norther
Slide 12: World Graphite Market – Outlook
World Graphite Market – Outlook • Benchmark Mineral Intelligence forecasts a global shortage of 6.1M tonnes of natural graphite by 2035 • Benchmark estimates >90 new mines, each producing 56,000tpa, required to meet projected demand by 2035 • Madagascar continues to lead the development of new mines
Slide 13: Markets: Graphite needed in Li-ion Batteries
Markets: Graphite needed in Li-ion Batteries • Graphite is the most significant material in a battery anode • More graphite required in Li- ion batteries to fuel the demand of EVs • Li-ion batteries contain significantly more graphite than lithium • Graphite looms as the mineral of greatest supply s
Slide 14: Markets: Massive shortfall forecast
Markets: Massive shortfall forecast • Demand driven by massive growth in EV sales • Expectation that graphite supply will fall into deficit in 2022/23 with demand rate increasing • Natural graphite is a much more cost- effective and greener alternative to synthetic products for use in anodes • Growt
Slide 15: Maniry Project Location & Benefits
Maniry Project Location & Benefits Maniry Project will benefit from Roads and Port massive upgrades funded infrastructure by World Bank development and European adjacent to our Union site International logistics advantages – In country support cost effective for Regional access to Asia, development
Slide 16: Maniry Project - A globally-significant source of a Critical Mineral
Maniry Project - A globally-significant source of a Critical Mineral • Total Maniry Resource of 40mt @ 6.5% TGC1 • Defined JORC Compliant Reserve of 16.2mt @6.58%2 • DFS mine schedule provides for production of over 1.2m tonnes of graphite over the Life of Mine (LOM) with enormous expansion potentia
Slide 17: Madagascar – Preferred Mining Environment
Madagascar – Preferred Mining Environment MADAGASCAR KEY POINTS +100 years graphite production history Largest supplier of graphite into China Second largest supplier of graphite into India Top 5 supplier of graphite into the USA Attractive fiscal regime including no “free- carried” intere
Slide 18: Madagascar’s Economy & Mining Focus
Madagascar’s Economy & Mining Focus • Extensive mine development success in-country: • Ambatovy Nickel - Massive nickel mining operation in the north • Rio Tinto – Globally-significant ilmenite project in the south • Graphite production experiencing massive growth: • NextSource Materials – Canadian-
Slide 19: Maniry Project – Pathway to Production
Maniry Project – Pathway to Production 2022 - 24 Milestones Nov 22 Jan 23 March June Sept Dec 23 Mar 24 June 24 Sept 24 Dec 24 BFS with Improved Economics Offtake Agreement Develop and Planning Statutory Licensing & Permitting Project Financing Front End Engineering & Long Lead Items Project Develop
Slide 20: Environmental, Social and Governance
Environmental, Social and Governance Our Commitment and Development v v v ENVIRONMENTAL SOCIAL GOVERNANCE ✓ Commitment to minimising carbon ✓ Investing in our future leaders - ✓ Leading ASX listed Graphite footprint Malagasy team trained in focused Company – regular ✓ ESIA being conducted in Austral
Slide 21: Indian JV Operations – Production of Expandable Graphite
Indian JV Operations – Production of Expandable Graphite • Feasibility Study concluded, with key outcomes including (50/50 JV basis)1: • NPV (post-tax): US$78M • Net Cash flow (pre-tax): US$219M • Payback Period (post-tax): 1.2 years • Project CAPEX: US$3M (Stage 1) • Site secured in the Special Eco
Slide 22: Battery Anode Material Plant Scoping Study
Battery Anode Material Plant Scoping Study • Scoping Study underway with completion and publication due in the near term. • Prepared and led by Independent Experts – Wave International with support from leading German based testing group, Dorfner Anzaplan. • An Executive from BlackEarth recently vis
Slide 23: Executive Director – Read Corporate
Tom Revy Managing Director tom.revy@blackearthminerals.com.au Phone: + 61 (0) 411 475 376 David Round Finance Director david.round@blackearthminerals.com.au Phone: + 61 (0) 411 160 445 Paul Armstrong Executive Director – Read Corporate Phone +61 421 619 084 L3 1138 Hay St West Perth, WA, Australia
Slide 24: Appendix
Appendix Reference 1 - The Project updated Company Mineral Reference 2 – Resource Inventory is reported as follows - Cautionary Statement: The Exploration Targets reported herein are not JORC compliant Mineral Total Resources The potential quantity and grade of the Exploration Targets are Contained
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