European Metals Holdings Ltd · LSE:EMH
European Metals — Investor Presentation (November 2018)
28 slides from European Metals's investor presentation, November 2018
Slide 1: Cinovec: A Globally Significant Lithium & Tin Project
CINOVEC A GLOBALLY SIGNIFICANT LITHIUM & TIN PROJECT IN THE HEART OF EUROPE INVESTOR PRESENTATION NOVEMBER 2018 NOVEMBER 2018 / 1
Slide 2: Disclaimer & Cautionary Statement
DISCLAIMER & CAUTIONARY STATEMENT DISLAIMER This presentation has been prepared by European Metals Limited (“European Metals” or the “Company”). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an
Slide 3: The Cinovec Project
THE CINOVEC PROJECT Cinovec is a globally significant lithium project due to its: Size The largest lithium resource in Europe and one of the largest non-brine lithium resources in the world. Cost Potential low cost producer targeting the bottom half of the cost curve. Location In the heart of Europe
Slide 4: European Battery Alliance Goals
EUROPEAN BATTERY ALLIANCE GOALS “Europe battery production is a strategic imperative for clean energy transition and the competitiveness of its automotive sector.” “The immediate objective is to create a competitive manufacturing value chain in Europe with sustainable battery cells at its core.” “St
Slide 5: Lithium – New Demand Europe
LITHIUM – NEW DEMAND EUROPE Cínovec NOVEMBER 2018 / 5
Slide 6: Securing Supply
SECURING SUPPLY • Jan 2017 – Gangfeng Lithium US$40M equity investment and US$125M debt facility into Lithium Americas. • Oct 2017 - Great Wall A$28M equity investment into Pilbara Minerals. • Jan 2018 – Toyota Tsusho US$224M equity investment into Orocobre. • Feb 2018 – POSCO A$79.6M equity investm
Slide 7: Potential European Supply Sources
POTENTIAL EUROPEAN SUPPLY SOURCES Country Company Deposit Stage Total resource Li2O (%) LCE (Mt) (Mt) Czech European Cinovec DFS 695.9 0.421 7.17 Republic Metals Serbia Rio Tinto Jadar PFS 135.7 1.86 6.24 Spain Infinity San Jose PFS 111.3 0.61 1.68 Lithium Germany Deutsche Zinnwald DFS 40.4 0.752 0.
Slide 8: Australian Lithium Expertise
AUSTRALIAN LITHIUM EXPERTISE • Australian lithium mine output is the highest in the world. • However, lithium refining capacity is now also becoming significant: • Tianqi building a A$700M refinery with 48,000 t/a lithium hydroxide capacity in Western Australia. • SQL/Kidman building a circa 40,000
Slide 9: Project Summary
PROJECT SUMMARY • Large 1.68 M t/a underground mining operation. • Underground crushing and conveyor to surface milling. • Slurry pipeline to beneficiation plant. • Wet magnetic separation of lithium concentrate. • Production of lithium carbonate (or hydroxide) via gypsum & sodium sulphate roast, wa
Slide 10: Cinovec – The Deposit
CINOVEC – THE DEPOSIT Hole From To Width (m) Li2O (%) Hole From To Width (m) Li2O (%) CN-17 22 224 202 0.62 CIW-25 9.5 373 361.5 0.43 CIW-22 123 387.5 264.5 0.54 CIW-26 173.75 410 236.25 0.49 CN-81 1 224 223 0.52 CN-86 81.8 230.9 149.1 0.48 Selected lithium drill intercepts NOVEMBER 2018 / 10
Slide 11: Cinovec – The Deposit
CINOVEC – THE DEPOSIT • Historic underground mine for tin and tungsten, closed in 1993. • Over 83,000 m historic diamond drilling, 21.5 km historic drive development, EMH confirmation drilling 9,477 m, further drilling commenced in October 2018. • The upper portion of a granite cupola has been miner
Slide 12: Cinovec – Underground Mine
CINOVEC – UNDERGROUND MINE1 Approx.scale (metres) 0 250 Note 1 Design and timeline from PFS NOVEMBER 2018 / 12
Slide 13: Cinovec - Lithium Processing
CINOVEC - LITHIUM PROCESSING NOVEMBER 2018 / 13
Slide 14: PFS Summary – April 2017 (USD)
PFS SUMMARY – April 20171 (USD) ANNUAL PRODUCTION2 22,500 tpa battery grade LiCO3 PROJECT LIFE3 21 years TOTAL JORC RESOURCE4 7.17 Mt LCE CONSTRUCTION CAPITAL COSTS $393 million OPERATING COSTS (without credits) $5,211/t LiCO3 OPERATING COSTS (with credits) $3,483/t LiCO3 LITHIUM CARBONATE PRICE ASS
Slide 15: The Path to Production
THE PATH TO PRODUCTION Key activities for the next 12 months: • Complete drilling and upgrade resource model to include Measured Resources to facilitate calculation of a proven ore reserve. • Begin DFS engineering. • Progress EIAs for mining and processing. • Complete locked cycle testwork & flowshe
Slide 16: Investment Summary
INVESTMENT SUMMARY Strong demand growth and prices predicted for lithium and tin Significant exploration upside – conversion of resource to reserve Substantial Upside High level of industry interest in lithium Trading at a discount to peers Globally significant lithium and tin deposit Deposit Size &
Slide 17: Summary
SUMMARY • Cinovec is located in the heart of Europe. • Cinovec is the largest lithium resource on the continent. • European industry requires substantial supplies of lithium. • A minimum 22,500 t/a lithium carbonate (or 25,600 t/a as lithium hydroxide) to be produced for more than 20 years for suppl
Slide 18: Appendix
APPENDIX 18 OCTOBER 2018 /18 NOVEMBER 2018 / 18
Slide 19: Peer Analysis – Carbonate Production Cost
PEER ANALYSIS – CARBONATE PRODUCTION COST Source : HSBC Global Research * Amended to include dark blue column by EMH. NOVEMBER 2018 / 19
Slide 20: Cinovec Metals in Strong Demand
CINOVEC METALS IN STRONG DEMAND OCTOBER 2018 /20 NOVEMBER 2018 / 20
Slide 21: Lithium – New Demand Europe
LITHIUM – NEW DEMAND EUROPE Plan for 3M EVs pa to be sold by 2025. Planning to have 25 new EV models by 2020. Ordered US$48B batteries mid 2018. EUR 6B EV program. Factory in Zuffenhausen. First EV production in 2019. 50% of all vehicles to be EV by 2025. EUR 10B EV program. Targeting 10 EV models t
Slide 22: Lithium – New Demand Europe
LITHIUM – NEW DEMAND EUROPE Building battery factory in Wroclaw, Poland to produce EV batteries in 2019. Have built a battery factory in Hungary & own another in Austria. Specialist lithium-Ion battery manufacturer, new factory in Czech Republic. Plan to build an 8 GWh pa lithium-ion battery factory
Slide 23: Lithium Forecast Prices
LITHIUM FORECAST PRICES Source : Deutsche Bank, Asian Metals NOVEMBER 2018 / 23
Slide 24: Cinovec - Infrastructure
CINOVEC - INFRASTRUCTURE • Excellent infrastructure in place to support development of Cinovec • Adjacent to a main road and CINOVEC near large industrial centres, car and chemical plants in Germany and Czech Republic • Processing location 2 km from existing rail line in industrial estate and adjace
Slide 25: Czech Republic
CZECH REPUBLIC • Central location in Europe • Over 90% of its exports are to European and central asian countries with 32% to Germany alone • Stable political and economic environment –Member of the European Union. • Excellent infrastructure, communication network and power • Relatively low corporat
Slide 26: Corporate Snapshot
CORPORATE SNAPSHOT 12 MONTH SHARE PRICE ASX & AIM CODE EMH CDI’s 141M MARKET CAP 35.01M* @ GBP 0.25 GBP SHARE HOLDER STRUCTURE Cadence Minerals plc 19.7% Held by Directors (inc Cadence Minerals plc) 29.52% *all data as at 5 November 2018 at 11:03am NOVEMBER 2018 / 26
Slide 27: The Team
THE TEAM KEITH COUGHLAN (AUS) DAVE REEVES (AUS) RICHARD PAVLIK (CZ) KIRAN MORZARIA (GB) MANAGING DIRECTOR NON EXECUTIVE CHAIRMAN EXECUTIVE DIRECTOR NON EXECUTIVE DIRECTOR • 30 years stockbroking & funds • Qualified Mining Engineer • GM of Geomet s.r.o. CZ • CEO & Director of EMH’s largest management
Slide 28: Contact
CONTACT Keith Coughlan | Managing Director Suite 12, 11 Ventnor Avenue, West Perth, WA 6005, AUSTRALIA keith@europeanmet.com www.europeanmet.com 28 OCTOBER 2018 /28 NOVEMBER 2018 / 28
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