Scandium International Mining Corp. · TSXV:SCY
Scandium International Mining — Investor Presentation (July 2016)
25 slides from Scandium International Mining's investor presentation, July 2016
Slide 1: Developing the World’s First Primary Scandium Mining Project
Developing the World’s First Primary Scandium Mining Project TSX: SCY | www.ScandiumMining.com July 2016 Corporate Overview
Slide 2: Cautionary Notes
Cautionary Notes Forward-looking Statements This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation a
Slide 3: SCY-Developing Scandium Resources
SCY-Developing Scandium Resources Objective: World’s first primary scandium producer in 2018 • Nyngan Scandium Project in NSW, Australia (80%). • Definitive Feasibility Study results 1 (May ‘16). – Financial Results - 33% IRR, $225M NPV (8%i), constant $, after-tax, – Build Cost – US$87M, – Scandia
Slide 4: Corporate Structure
Corporate Structure Share structure and stock information as at June 10, 2016 Capitalization Outstanding shares (I/O and F/D) 225 million / 248 million Insider/management ownership 30% Cash (Q1 financials) US$1.3 million Debt on balance sheet none Stock Information TSX: SCY Current price C$0.18 Curr
Slide 5: Where Can Scandium Be Used Today?
Where Can Scandium Be Used Today? Scandium-enhanced aluminum alloys are superior performers • Scandium improves aluminum alloys. – Refines grain structure (strength), while preserving desired material properties, – Better properties make better alloy for: • Transportation uses (weight savings), • Ma
Slide 6: What Does The Scandium Market Look like Today?
What Does The Scandium Market Look like Today? Scandium users waiting for reliable supply and viable pricing • Scandium’s benefits are known and understood, but the market today is very much under-supplied and over-priced. – Sellers make scandium as a byproduct from other mineral processing operatio
Slide 7: Scandium Use Will Be Linked to Aluminum
Scandium Use Will Be Linked to Aluminum Major Al alloy markets already established and waiting for scandium • Trade in aluminum is huge, global, growing. Aluminum Usage in Autos – Largest traded metal value after iron ore, – Historic growth rate of 4%, larger in OECD, and – Most is alloyed with othe
Slide 8: Aluminum Industry Facts
Aluminum Industry Facts Aluminum –A Global Commodity • Most abundant metallic element. • Bauxite is primary source. – Australia, Brazil, China, Jamaica. • Bauxite converts to alumina, converts to aluminum. – Last step is electrolytic, – Embodied energy (cost). • Total world consumption- 74Mt. – Valu
Slide 9: Aluminum Market Segments
Aluminum Market Segments Alloy Families Trend to Application, Based on Properties and Cost Alloy Use by Segment & Series • Transport (27%) - the largest segment. – Alloy performance critical, – Aluminum wins where fuel costs are a key factor. • Construction (25%) - the second largest. – Spread acros
Slide 10: Market Share by Alloy Form & Series
Market Share by Alloy Form & Series +1500 Alloy Recipes-Each With a Purpose • Alloys are delivered to Alloy Use by Series customers in shape/form based on the intended manufacturing method: – Wrought (65%) alloys are formed into plate, slabs, billets, or sheet. – Cast (+30%) alloys, for molds, poure
Slide 11: Aluminum Use in Aircraft
Aluminum Use in Aircraft Aircraft Manufacture is a Significant Potential Scandium Market • Commercial Aircraft Buy-Weight. Aerospace Raw Material Demand (buy weight) – 700 kt annually today (source ICF), – Boeing/Airbus are 67% of this total, – Al portion is about half buy-weight. • Fabrication Loss
Slide 12: Alloy Choice – Commercial Aircraft
Alloy Choice – Commercial Aircraft Design Requirements Drive Alloy Selection • Alloy choice is based on design requirements. – Strength is the start point, – Operating environment dictates alloy property requirements, – Properties have a large influence on cost, both in manufacture and service. • Al
Slide 13: Alloy Strength Comparison
Alloy Strength Comparison Yield Strength Comparison- Aluminum Alloy by Series (wrought) Yield Strength Best Max (Mpa) Scandium Yield Strength 500 Push 450 +600 400 450 300 260 300 200 250 170 100 80 50 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8 Series (99% Al) (Cu) (Mn) (Si) (M
Slide 14: Alloy Properties Comparison
Alloy Properties Comparison Scandium Delivers Strength While Preserving Properties –Particularly with 5 Series • A 5xxx alloy with scandium is superior to a 2xxx. – Yield strength better, – Stiffness, fatigue and toughness better, – Elongation not better. • The 5xxx + Sc is almost a match for a top
Slide 15: Alloy Cost Comparison
Alloy Cost Comparison Strength and material properties drive price over cost $35/kg $13/kg W/ Scandium $9.50/kg $6/kg $6.50/kg $5/kg $3.50/kg $2.50/kg Metal Cost 2 Series 5 Series 6 Series 7 Series 8 Series
Slide 16: Alloy Cost Often Not The ‘Driver’
Alloy Cost Often Not The ‘Driver’ Engineers faced with a multi-dimensional choice of alloys • Alloy choice based on end product requirements – Yield strength is key design parameter-defines how the part is designed – Material properties affect manufacturing cost- define how part is made – Operating
Slide 17: Alloy Cost Payback Specific To Use
Alloy Cost Payback Specific To Use Demanding applications will be early adopters • Aircraft designers in constant search for performance gains. Weight reduction (with no performance loss) is a key goal. – Weight loss improves range, payload capacity and economy, – One kilo of weight savings in an ai
Slide 18: Expanding Market Potential
Expanding Market Potential 5 Series alloy with scandium is a boundary extender for aluminum • Scandium-aluminum alloys can be expected to roll back substitution from magnesium alloys and carbon fiber. – A better 5 Series alloy will definitely be cost competitive, – Al alloys are easier to apply to c
Slide 19: Initial Offtake Agreement
Initial Offtake Agreement Developing marketing channels now • Memorandum of understanding with ALCERECO. – Al Alloy R&D group in Ontario (ex Novelis/Alcan), – Capabilities in alloy formulation, with scandium, – Excellent laboratory facilities in place, with capability to make test alloys, shapes/for
Slide 20: Nyngan Scandium Project
Nyngan Scandium Project Primary scandium deposit with expansion potential • NI 43-101 Measured & Indicated resource 1. – Measured: 5.7Mt @ 256 ppm Sc/t. – Indicated: 11.2Mt @ 225 ppm Sc/t. • Excellent location – 500km west of Sydney. – 7,000 acre EL – 800 acres surface ownership, – Australia is mini
Slide 21: 2016 DFS Results
2016 DFS Results 1 Select financial and operating results from 2016 DFS Summary NI 43-101 Nyngan Scandium Project DFS Key Project Parameters Result Capital Cost Estimate (US$ M) $87.1 Average Plant Feed Grade (ppm Sc) 409 Resource Processed (tpy) 71,820 Mill Recovery (%) 83.7% Oxide Production (kg p
Slide 22: Conventional Mining & Processing
Conventional Mining & Processing Mining is simple, processing is key • Scandium International’s process flow sheet is based on proven technology and extensive independent test work. – Test work results conducted on Nyngan property resource material. • Scandium extraction process involves conventiona
Slide 23: Milestones to Final Investment Decision
Milestones to Final Investment Decision Milestones to FID/Project Financing Definitive Feasibility Study. Lycopodium/others completed a +15%/-5% independent report, Latest drilling produced a larger resource, and a reserve estimate, Flowsheet fully finalized, covered under patents, NI 43-101
Slide 24: Why Scandium International?
Why Scandium International? Near-term production first to market • Experienced team. • Published DFS1,, finance-grade. • Single product focus, simple mine. • Flow sheet defined & fully tested. • Capital cost <US$90M – realistic. • Australia is mining/customer friendly. • NSW lateritic belt – game
Slide 25: Contact Information
Contact Information Corporate Office 1430 Greg Street, Suite 501 Sparks, Nevada USA 89431 Phone: 775-355-9500 Contacts Edward Dickinson (CFO) edward.dickinson@ScandiumMining.com George Putnam (CEO) georgeputnam@Comcast.net It’s not how light you make it……it’s how you make it light. www.ScandiumMinin
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