Mkango Resources Ltd. · TSXV:MKA
Mkango Resources — Investor Presentation (August 2024)
36 slides from Mkango Resources's investor presentation, August 2024
Slide 1: Sustainably Sourced Rare Earths for the Green Transition
MINE REFINE RECYCLE Sustainably Sourced Rare Earths for the Green Transition Mkango Resources Ltd. Corporate Presentation August 2024
Slide 2: Strategic REE Projects across the Supply Chain
Strategic REE Projects across the Supply Chain Overview Downstream – Near Term 2025 Production Upstream – Advanced Stage Projects Rare Earth Magnet Recycling & Manufacturing Mining Refining Songwe Hill Rare Pulawy Separation Earths Project Project Malawi Poland Mkango RE UK ▪ Potential for creation
Slide 3: Mkango Board and Management
Mkango Board and Management Corporate Information Advanced REE project from exploration to DFS Track record of growth via partnerships Implemented early mover REE recycling strategy Significant rare earth experience Derek Linfield, Non-Executive Chairman William Dawes, CEO & Co-founder Former Managi
Slide 4: Mkango Capital Structure
Mkango Capital Structure Corporate Information 5-year share price (AIM) Mkango Resources AIM/TSXV: MKA Share Price GBX6.20 / C$0.14 Shares Outstanding 268,453,574 Market Cap. £16.6m / C$37.6m Major Shareholders Noble / Talaxis 25.87 % Stewart Newton 4.40 % Michael Geoghegan 3.60 % Leo Mining & Explo
Slide 5: Rare Earth Magnet Recycling and Manufacturing
Rare Earth Magnet Recycling and Manufacturing
Slide 6: Recycling - Introduction
Recycling - Introduction Overview ▪ Major opportunity for growth in recycling - less than 5% of rare earth magnets are currently recycled from end-of-life products ▪ Key challenge is separation – how do you liberate embedded NdFeB magnets for recycling in a cost effective and energy efficient way? ▪
Slide 7: Recycling – Structure and Team
Recycling – Structure and Team Corporate Recycle Overview Information ▪ Founded in 2018 by leading experts ▪ First HyProMag investment 2020, acquired in 2023 in magnetic materials, recycling and ▪ HyProMag – focused on Short Loop magnet recycling hydrogen technologies ▪ Mkango Rare Earths UK - focus
Slide 8: Magnet Recycling Challenges
Magnet Recycling Challenges Recycle Most end-of-life rare earth magnets are not currently recycled ▪ Electronic products are not often designed with end-of- use recycling in mind ▪ Current recycling processes Hard disk drives Rotor from an automotive are not suitable for NdFeB drive motor magnets ▪
Slide 9: The HPMS Solution Explained
The HPMS Solution Explained Recycle 3. 1. 2. Rare earth magnet Rare earth magnet HPMS process demagnetises removed from the rare earth magnet, electronic scrap producing NdFeB powder Rare earth alloy HPMS extracts & demagnetises embedded NdFeB magnets using hydrogen, enabling separation from the scr
Slide 10: Short-Loop and Long-Loop Recycling
Short-Loop and Long-Loop Recycling Recycle HPMS process liberates end-of-life Medium Loop ▪ Primary supply: mixed rare earth carbonate, rare earth oxides magnets in the form of a demagnetised NdFeB powder, Shortest Loop ▪ Recycled supply: NdFeB alloys & sintered magnets, rare earth which can be fed
Slide 11: Competitive Advantages
Competitive Advantages Recycle Early mover advantage with strong competitive position Production of over 10,000 finished recycled magnets targeted by end 2024 ▪ Significant competitive advantages ▪ HPMS solves the separation issue – how to liberate and demagnetise separated magnets ▪ Short loop recy
Slide 12: Significantly Reduced CO2 Footprint
Significantly Reduced CO2 Footprint Recycle 100 Carbon Footprint of NdFeB Magnet Manufacturing 89.2 89.1 90 Climate change, kg CO2e per kg of sintered NdFeB 82 Primary Mined Material Secondary Recycled Material 80 76.2 75.3 75.1 70 60 50 41.4 41 40 34.6 28.5 27.6 30 27 21 20 12.8 12.5 10 10 5.9 3.3
Slide 13: Commercialisation Underway
Commercialisation Underway Recycle HyProMag – main industrial partner for scale-up and exclusive HPMS licencee Initial Tyseley development Proposed equipment at Tyseley based on 20% capacity utilisation Q1 2025 to Energy park, UK produce 25-30tpa NdFeB ▪ HPMS reactor ▪ Powder processing (sieving, mi
Slide 14: New UK Rare Earths Hub at Tyseley
New UK Rare Earths Hub at Tyseley Recycle Tyseley Energy Park - delivering low & zero-carbon power, transport, heat, waste and recycling solutions Energy Production - - Biomass Hydrogen production for fuel cell buses Waste handling site for Birmingham Magnet manufacturing BEIC – University research
Slide 15: Tyseley Energy Park Scale-Up
Tyseley Energy Park Scale-Up Recycle Sintered HPMS powder Blended magnet for remelting HPMS blocks HPMS powder powder Pre-processed feed HPMS Strip Sieving Degassing Melting Jet Slicing & Finished sieving HD & Pressing Sintering casting milling dicing magnets blending HPMS powder for HPMS powder for
Slide 16: Recycled Magnets with Low CO2 Footprint
Recycled Magnets with Low CO2 Footprint Recycle INPUTS: OUTPUTS: SCRAP RECYCLED CONTAINING NdFeB NdFeB MAGNETS Over 3,000 finished recycled magnets produced to date by HyProMag and University of Birmingham, currently being tested in multiple automotive, aerospace, electronics applications, with othe
Slide 17: Pilot Plant for Long Loop Chemical Process
Pilot Plant for Long Loop Chemical Process Recycle HPMS generates a liberated NdFeB feed for chemical processing to RE carbonates and oxides Mkango Rare Earths UK has commissioned a pilot plant for long loop chemical processing of swarf and HPMS powder to produce rare earth carbonate and oxides at T
Slide 18: Germany Scaled-Up Development
Germany Scaled-Up Development Recycle Sintered HPMS powder Blended magnet for remelting HPMS blocks HPMS powder powder Pre-processed feed HPMS Strip Sieving Degassing Melting Jet Slicing & Finished sieving HD & Pressing Sintering casting milling dicing magnets blending HPMS powder for HPMS powder sh
Slide 19: Mkango-CoTec Collaboration
Mkango-CoTec Collaboration Recycle Mkango-CoTec collaboration enhances underlying value Completed catalysts Future catalysts CoTec FACT FILE • ESG-focused fund led by CoTec invests £1.5m for 10% of USA Feasibility Study Julian Treger and Braam Maginito funded by CoTec Jonker • Owns 20.6% stake in Ma
Slide 20: HyProMag USA Rollout
HyProMag USA Rollout Recycle USA Feasibility Study Underway based on min. 500tpa NdFeB operation ▪ HyProMag USA 50/50 joint venture company formed with CoTec to roll-out HPMS and associated magnet manufacturing into the USA Proposed operating configuration: ▪ CoTec funding feasibility study and deve
Slide 21: Government Support
Government Support Recycle Minerals Security Partnership (MSP) ▪ HyProMag HPMS technology selected as an MSP project ▪ MSP (est. 2022) consists of 14 governments, including UK and USA ▪ MSP aims to ensure adequate supplies of minerals, such as rare earths, to meet net zero carbon goals ▪ MSP regards
Slide 22: Government Support
Government Support Recycle Past government grants SusmagPro Project Sustainable recovery, reprocessing and reuse of rare earth €14m project with 19 partners across the supply chain magnets in a European circular economy RaRE Project Establishing an end-to-end supply chain to incorporate recycled £2.
Slide 23: Expected Recycling Development Timeline
Expected Recycling Development Timeline Recycle H2 2024 Q1 2025 2025 2025 2026 Initial commercial Commercial Completion of United Initial commercial Scale up commercial production in production in United States feasibility study production at Tyseley production at Tyseley Germany States Short Loop r
Slide 24: Expected Recycling Development Timeline
Expected Recycling Development Timeline To discuss magnet scrap solutions and purchasing, magnet and other product sales please contact magnets@hypromag.com To discuss collaboration and consultation please contact technical@hypromag.com 23
Slide 25: Rare Earth Mining and Separation Development Projects
Rare Earth Mining and Separation Development Projects
Slide 26: Songwe Hill Rare Earths Deposit
Songwe Hill Rare Earths Deposit Mine One of Very Few Independent Rare Earth Projects Globally with a Definitive Feasibility Study ▪ Initial Mkango drilling programmes carried out in 2011 and 2012 o First resource report prepared in compliance with NI 43-101 ▪ Pre-Feasibility Study (PFS) completed in
Slide 27: Malawi - A Favourable Jurisdiction
Malawi - A Favourable Jurisdiction Mine Longstanding, supportive relationships with government and local communities ▪ Premier African rare earths mineral province ▪ Blantyre, a major commercial centre with rail head and international airport, is located two hours from site by car ▪ Beneficiation, h
Slide 28: Songwe Hill Feasibility Study
Songwe Hill Feasibility Study Mine A new sustainable source of rare earth production Compelling project economics ▪ One of the few rare earths projects globally to have reached FS stage Capital US$311M Cost (US$34M contingency) ▪ LOM: 18 years producing mixed rare earth carbonate (MREC) IRR 31.5% gr
Slide 29: Songwe Hill Feasibility Study
Songwe Hill Feasibility Study Mine Extensive Processing Flow Sheet Development and Piloting Flotation piloting Feasibility study is a completed - March 2021 culmination of significant mineralogy, bench Hydrometallurgy piloting completed scale test work and - March 2022 piloting completed since proje
Slide 30: Mkango in the Community
Mkango in the Community Mine Strong Track Record in Corporate Social Responsibility boNGO Worldwide Partnership 1 2 1.Before – an unhappy classroom ▪ Happy Classroom Project 2.After – a Happy Classroom after ▪ Enhancing 3 local primary schools renovation ▪ 18 classrooms painted with school syllabus
Slide 31: Rare Earth Separation
Rare Earth Separation Refine Gdansk Pulawy Separation Project, Poland (450km) ▪ European rare earths hub underpinned by sustainably sourced, mixed Warsaw rare earth carbonate from Mkango’s project in Malawi (110km) Berlin ▪ Site adjacent to a largescale fertiliser and chemicals plant owned by (800km
Slide 32: Proposed Site for Separation Plant
Proposed Site for Separation Plant Refine ▪ 8-hectare site located next to Pulawy Fertiliser and Chemicals Plant with access to road, rail, reagents, by-product customer and utilities ▪ Subject to Pulawy DFS, targeting capex of US$120m and opex <US$3/kg TREO in MREC (based on Songwe Hill production
Slide 33: Thank You
Expected Recycling Development THANK YOU Timeline William Dawes, Chief Executive Officer – will@mkango.ca Alexander Lemon, President – alex@mkango.ca Robert Sewell, Chief Financial Officer – rob@mkango.ca 32
Slide 34: Disclaimer
Disclaimer NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION This prese
Slide 35: Disclaimer
Disclaimer Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements or forward-looking information (within the meaning of Canadian securities legislation and, collectively, "forward-looking statements"). Forward-looking statements are
Slide 36: Disclaimer
Disclaimer The delivery or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions
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