Element 25 Limited · ASX:E25
Element 25 — Shareholder Meeting (November 2021)
21 slides from Element 25's shareholder meeting presentation, November 2021
Slide 1: Element 25 Limited Investor Update
Element 25 Limited Investor Update Building a world-class Zero Carbon Manganese business November 2021 AGM Presentation
Slide 2: Introduction
Introduction Disclaimer Overview This presentation contains only a brief overview of Element 25 Limited and its Developing the world class Butcherbird Manganese Project in Western associated entities (“Element 25") and their respective activities and operations. The Australia to produce high quality
Slide 3: Our Strategic Vision
Our Strategic Vision… Stage 1 Stage 2 Stage 3 Stage 4 365Kt per annum 1 Mt per annum High Purity Mn MnSO4 Expansion Commissioning and ramp- PFS study complete, PFS study anticipated Long term - multiple up underway startup 2022 for completion H1 2022 HPMSM modules globally 12 month plan 2 year plan
Slide 4: Not all manganese is created equal
Not all manganese is created equal E25 Manganese Serving the Established… And the Emerging… • Manganese (Mn) is the fourth most used metal • The electrification of the global vehicle fleet on earth in terms of tonnage. requires vast amounts of cathode materials. • Used in steel, specialty alloys and
Slide 5: Manganese prices - stable since commissioning
Manganese prices - stable since commissioning Manganese Price (44%Mn cif Tianjin) • Fundamentals have favoured higher ore prices; $6.00 • COVID Disruptions • Shipping congestion $5.50 • Supply shortages • Elevated alloy prices • Fundamentals remain sound $5.00 Mn Price USD/dmtu going forward but may
Slide 6: Great infrastructure endowment, fully permitted
Great infrastructure endowment, fully permitted Extensive Exploration Tenure E52/2350 M52/1074 Granted Mining Lease Measured & Indicated Resources are the basis Simple Logistics for the 42-year Base Case -6-
Slide 7: Very simple geology equals low-cost, low environmental impact manganese units
Very simple geology equals low-cost, low environmental impact manganese units Classification Tonnes (Mt) Mn (%) Contained Mn (Mt) RESOURCE GROWTH POTENTIAL Resource 263 10.0 20.8 • Enough resource base for multi- Reserve 50.6 10.3 5.22 decade long expansion pathway. • Can produce concentrate, batter
Slide 8: Stage 1: Operational, ramping up to nameplate
Stage 1: Operational, ramping up to nameplate • 20-year Mining Lease granted • All Stakeholder Agreements finalised Maiden • Processing water confirmed and permitted product • Fully funded with no debt shipment • Operation is fully permitted July 2021 • Stage 1 is operational • Stage 2 fully funded
Slide 9: Stage 1: Project Delivery Complete – Ramp Up Underway
Stage 1: Project Delivery Complete – Ramp Up Underway Process Water Storage Tails Storage ROM Stocks Main Access Road Ore Stockpiles Processing Plant -9-
Slide 10: Concentrate Business – Cost/Revenue Drivers
Concentrate Business– Cost/Revenue Drivers… Key Revenue/Margin Drivers COVID congestion • Shipping – significant COVID related congestion has increased costs related price spike starting to normalise - E25 margins are directly impacted by increased shipping tariffs. - E25 receives a CIF price with s
Slide 11: Our Goal – The Concentrate for Stages 1 & 2 is Feed for Stage 3
Our Goal– The Concentrate for Stages 1 & 2 is Feed for Stage 3… Manganese Concentrate Stage 1 First production of manganese concentrate to sell to steel alloy manufacturers Battery Grade Manganese Sulphate (MnSO4) Stage 2 Expansion of the concentrate production to produce manganese feedstock to conv
Slide 12: New Energy Vehicle (NEV) Demand Growing Much Faster
New Energy Vehicle (NEV) Demand Growing MUCH Faster 58% by 2040 percentage of new vehicles that will be EV or hybrid 54 million EV passenger sales by 2040 from 2033 decline emissions from road transport 17.6M by 2040 barrels of oil displaced by EVs each day Mn Mn “It is reasonably straight forward t
Slide 13: If not manganese, then what?
If not manganese, then what? Global mined cobalt output (Kt) • Manganese is the cheapest, most 58% by 2040 abundant of the NMC cathode percentage of new vehicles that will be EV or hybrid 54 million materials (Ni,Mn,C). EV passenger sales • Nickel and cobalt have supply by 2040 constraints, manganes
Slide 14: Low cost, efficient HPMSM process – significant improvements
Low cost, efficient HPMSM process – significant improvements… Current Manganese Concentrate Processing Technologies • Leach - sulphuric acid leach of African/Local carbonate ores or roast reduction. • Purification – toxic fluorine and/or sulphide reagents (toxic chemicals/waste) Problems with Curren
Slide 15: If not manganese, then what?
If not manganese, then what? • OEMs including VW, Tesla and Stellantis have announced moves to high manganese cathodes. • High manganese means better energy density and lower cost. • Transition will require large volumes of high purity manganese sulphate (HPMSM). • Some analyst estimates predict a d
Slide 16: Our Journey – Element 25 has a well advanced flowsheet and business strategy
Our Journey – Element 25 has a well advanced flowsheet and business strategy… 2012 2017 2019 2020 Resource Defined First Leach Tests EMM Produced PFS Delivery 263 Mt @ 10% Mn Showed rapid selective >99.9% pure metal Early cashflow opportunity extraction 2021 2021 2022 2024/25 Operational MnSO4 Focus
Slide 17: Zero Carbon Manganese – ESG considerations integral to our thinking
Zero Carbon Manganese™ – ESG considerations integral to our thinking Sustainable extraction Sustainable Extraction Renewable energy Low-carbon processing Fuel cell haulage Carbon offsets Zero Carbon Manganese™ Renewable Energy Other potential pathways that Element 25 is investigating: Powered Proces
Slide 18: Our Strategic Vision
Our Strategic Vision… Stage 1 Stage 2 Stage 3 Stage 4 365Kt per annum 1 Mt per annum High Purity Mn MnSO4 Expansion Commissioning and ramp- PFS study complete, PFS study anticipated Long term - multiple up underway startup 2022 for completion H1 2022 HPMSM modules globally 12 month plan 2 year plan
Slide 19: Thank you
Thank you For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
Slide 20: Reserves and Resources
Reserves and Resources Maiden Ore Reserve1 Category Tonnes (Mt) Mn (%) Contained Mn (Mt) • 89% conversion of measured Proved 14.4 11.5 1.65 and indicated resources to Probable 36.2 9.8 3.56 reserve. Total 50.6 10.3 5.22 • Maiden Reserve only exploits Global Mineral Resource2 approximately 20% of glo
Slide 21: Competent Person's Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient exp