Sherritt International Corporation · TSX:S
Sherritt International — Shareholder Meeting (May 2021)
23 slides from Sherritt International's shareholder meeting presentation, May 20, 2021
Slide 1: 2021 Annual Meeting
2021 Annual Meeting Virtual Meeting of Shareholders Sir Richard Lapthorne, Chair David Pathe, President and CEO May 20, 2021
Slide 2: Today’s presenters
Today’s presenters SIR RICHARD LAPTHORNE DAVID PATHE Independent Chair President & CEO 2
Slide 3: 2021 Annual Meeting: Metals for an Electric Future
2021 Annual Meeting Metals for an Electric Future David Pathe, President and CEO May 20, 2021
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements. Forward-looking statements risks associated with mining, processing and refining activities; uncertainty of resources and presentation and in the Corporation’s other documents filed with the Canadian securities
Slide 5: Time to look ahead
Time to look ahead 5
Slide 6: Catalysts for growth
Catalysts for growth 1. Recovery of traditional nickel markets 2. Low carbon future 3. Demand for clean resources Sherritt is well positioned to capitalize on growth opportunities 6
Slide 7: Outlook for nickel is strong
Outlook for nickel is strong 4,423 4,136 86% 3,649 3,159 3,053 2,939 Thousands of tonnes 2,833 2,610 2,383 Demand growth expected through 2040 2020 2021 2022 2023 2024 2025 2030 2035 2040 Accelerated adoption of electric vehicles will drive demand Source: Wood Mackenzie, March 2021 7
Slide 8: Low carbon future
Low carbon future 8
Slide 9: Electric vehicle adoption rate is accelerating
Electric vehicle adoption rate is accelerating 60 60% 50 50% 40 40% Growth driven by 30 30% - government policy Millions of Vehicles Penetration rate 20 20% - car industry investments 10 10% - consumer demand 0 0% 2020 2021 2022 2023 2024 2025 2030 2035 2040 Global EV sales Sales Penetration Battery
Slide 10: NMC and NCA are the dominant battery chemistries
NMC and NCA are the dominant battery chemistries Nickel 19.8% 36.2% Nickel provides energy density 48.2% Cobalt 48.8% 19.9% Cobalt provides stability 12.1% Manganese 18.5% 6.0% 11.3% 9.2% 5.6% Lithium 7.8% 7.8% 7.3% 5.6% 7.4% NMC-111 NMC-622 NMC-811 NCA EV battery demand is disrupting nickel and cob
Slide 11: Nickel supply deficit is looming
Nickel supply deficit is looming* Forecast Nickel Consumption vs Supply 4000 3000 Thousand of tonnes 2000 1000 0 2010 2015 2020 2025 2030 2035 2040 Probable projects Existing supply Consumption Growing EV battery demand for nickel will cause a deficit of supply by 2025 *Source: Wood Mackenzie Januar
Slide 12: Outlook for cobalt equally strong
Outlook for cobalt equally strong 300 269.8 250 240.7 +87% Thousands of tonnes 207.2 200 184.4 165.8 150 144.1 100 Demand growth expected through 2025 50 0 2020 2021 2022 2023 2024 2025 EV batteries will represent ~80% of all cobalt demand by 2040 Sources: CRU, March 2021; Wood Mackenzie, Dec 2020 1
Slide 13: Sherritt is participating in the low carbon future today
Sherritt is participating in the low carbon future today • Initiative launched in 2020 to increase use of renewable energy at Moa • Initiative includes electrification of light vehicles • Multiple electric vans delivered to date with more expected in 2021 • Opportunities to replace diesel-powered la
Slide 14: Demand for clean resources
Demand for clean resources 14
Slide 15: Industry needs provide opportunities for Technologies Group
Industry needs provide opportunities for Technologies Group • Increase purity of metals • Reduce greenhouse gas emissions • Extend mine life • Reduce tailings • Increase recovery value of high value metals • Reduce operating costs • Reduce capital investments A portfolio of projects with commercial
Slide 16: Technologies Group is a competitive advantage
Technologies Group is a competitive advantage 1,700 Patents since 1948 • • Pioneered commercialization of high pressure hydrometallurgy 14 PhDs on staff • 1000+ years of research experience • 40+ operations around the world use Sherritt technology 70+ Years of commitment to innovation 16
Slide 17: Advanced stage project: Treatment of high arsenic copper
Advanced stage project: Treatment of high arsenic copper • Arsenic is a poisonous element requiring costly treatment and handling • Current processing capabilities increase tailings and carbon emissions • Renders many copper mines uneconomic • Copper demand to grow 28% in next 10 years • Benefits of
Slide 18: Advanced stage project: Bitumen upgrading
Advanced stage project: Bitumen upgrading • Bitumen is a heavy crude oil with limited uses • Requires pre-treatment, addition of diluent, and post delivery processing • Addition of diluent uses 1/3 of pipeline capacity • Diluent costs oil industry $13B per year • Benefits of Sherritt’s full upgradin
Slide 19: Cuba Update
Cuba Update 19
Slide 20: Change in U.S. administration changes dynamics
Change in U.S. administration changes dynamics Current U.S. sanctions 1. Ban on trade and commerce 2. Ban on U.S.travel to Cuba 3. Bans on certain banking transactions Cuba 4. Limit of U.S. content on certain supplies implementing 5. Designated as state sponsor of terrorism economic reforms Effects
Slide 21: Summary
Summary • Strong start to 2021 • Number of growth catalysts in place • Bullish outlook for nickel and cobalt driven by high EV adoption rate • Favorably exposed to rising nickel and cobalt prices • Technologies Group focused on commercializing research projects Sherritt is well positioned to capital
Slide 22: Q&A Discussion
Q&A Discussion sherritt
Slide 23: Sherritt International Corporation
Sherritt International Corporation 22 Adelaide West, 42nd Floor Toronto, Ontario, Canada M5H 4E3 Joe Racanelli, Director, Investor Relations Telephone: (416) 935 -2457 I Toll -Free: 1 (800) 704 -6698 Email: investor@sherritt.com I Website: www.sherritt.com
Sherritt International — Shareholder Meeting (May 2021) on 6ix