Element 25 Limited · ASX:E25
Element 25 — Shareholder Meeting (November 2019)
35 slides from Element 25's shareholder meeting presentation, Nov 20, 2019
Slide 1: Element 25 Limited Investor Update
Element 25 Limited Investor Update Building a globally significant, low cost, high purity manganese project to supply high growth markets. Investor Presentation – AGM 20 November 2019
Slide 2: Disclaimer
Disclaimer This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assu
Slide 3: Corporate Overview
Corporate Overview Financial Information Share Price Performance ASX Ticker E25 Shares on Issue 92M Share Price $0.20 Market Capitalisation $18.4M Cash & Investments ( at 30 September 2019) ~$8.7M Debt Nil Enterprise Value ~$10M Board and Management Seamus Cornelius Chairman Justin Brown Managing Di
Slide 4: World Class Manganese Resource
World Class Manganese Resource Australia’s largest onshore manganese resource is ripe for development to produce high purity products, NOT manganese concentrate for bulk shipping. Multiple competitive advantages mean lower costs of production.
Slide 5: The Butcherbird Manganese Project
The Butcherbird Manganese Project • Large resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources*. • Excellent local infrastructure (bitumen road and gas pipeline). • 100% owned by Element 25 Limited. • Located in WA, a tier 1 mining jurisdiction. • Very simp
Slide 6: Drilling Highlights the Simple Geology
Drilling Highlights the Simple Geology • Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. • No selective mining required. • Low strip ratio of 0.2:1 based on preliminary pit optimisations. • Ore zone is above the water table. • Free dig w
Slide 7: Very Simple Beneficiation by Wet Scrubbing
Very Simple Beneficiation by Wet Scrubbing • Interlayered higher grade manganese and barren clays. • Supergene overprinting of a shallow marine shale sequence. • Bulk mining of the whole orebody followed by scrubbing. • Produces a pre-concentrate up to ~30% Mn for the leach feed. 7
Slide 8: World Class Resource, Great Infrastructure Endowment
World Class Resource, Great Infrastructure Endowment Goldfields Gas 550km PORT HEDLAND Pipeline Measured and Indicated Resources are the focus of the 25 year PFS Base Case Gt Northern MLA 52/1074 Highway AN RT EM PO E TL FR 0km 5 10 8
Slide 9: The High Purity Manganese Market
HPMSM The High Purity Manganese Market EMM Processing ore to produce high purity chemical products, NOT manganese concentrate for bulk shipping.
Slide 10: What is High Purity (Class 1) Manganese?
What is High Purity (Class 1) Manganese? Electrolytic Manganese Metal (“EMM”) • Used in series 200 SS and specialty alloys. • ESTABLISHED DEMAND • Largest market, ~1.8Mt or ~US$4B annually, steady growth. • E25 Primary product • STEADY GROWTH • Chinese producers: lack of domestic ore = African ore =
Slide 11: High Purity Manganese is a Growth Market
High Purity Manganese is a Growth Market • Established demand for EMM from traditional • Rapidly growing demand and price premiums steel markets. for battery grade sulphate. • Expected to grow at around 4% pa. • Potential to accelerate demand growth as the • Strong demand from consumers outside Chin
Slide 12: Competitor's Costs are Rising
Competitor’s Costs are Rising China’s competitiveness is being eroded by rising costs.
Slide 13: Chinese Producers are struggling to control costs
Chinese Producers are struggling to control costs… • Ageing infrastructure. • Expensive African ore; local ores are depleted. • Labour intensive processes. • Difficulties sourcing labour and rising costs. • Increasing power costs • Complex logistics. • Waste disposal and other environmental problems
Slide 14: Chinese manganese mines are depleted
Chinese manganese mines are depleted… • Local production is dropping YoY. • Grades are declining YoY. • Imports rising each year. • Demand continues to grow. • Ore costs are now the biggest cost driver for Chinese high purity manganese producers. • Costs are rising in China. Reference: International
Slide 15: A Lower Cost, Cleaner Processing Pathway
A Lower Cost, Cleaner Processing Pathway “Every once in a while, a new technology, an old problem, and a big idea turn into an innovation.” Dean Kamen, Inventor.
Slide 16: Breakthrough Technology
Breakthrough Technology • CSIRO co-developed process produces high purity manganese with less energy and lower emissions. • Products include high purity manganese sulphate (“HPSM”) for NMC Li-Ion battery cathodes and Electrolytic Manganese Metal (“EMM”) for specialty steels. • These are high value p
Slide 17: Element 25 Uses a Simpler, Lower Cost, Cleaner Process
Element 25 Uses a Simpler, Lower Cost, Cleaner Process Element 25 Process: • cheaper local ore • cleaner, cheaper leach process • renewable energy simpler, lower cost, cleaner, greener 17
Slide 18: Energy Solution: Gas, Wind or Solar
Energy Solution: Gas, Wind or Solar “Research from Morgan Stanley estimates that renewables will be the cheapest source of power in the world in less than three years.” Business Insider Australia, 8 July 2017.
Slide 19: Electrowinning Metals is Energy Intensive
Electrowinning Metals is Energy Intensive • Making metal through electrolysis involves passing a current between a cathode and anode through a pregnant liquor. • Under the right conditions, metal is plated on the cathode. • Making manganese metal (EMM) takes approximately 6MWh/t of metal produced. •
Slide 20: Renewable Energy - Lower Emissions and Getting Cheaper
$2.00 $0.20 RENEWABLE ENERGY AGENCY AUSTRALIAN $1.00 $0.10 Renewable Energy - Lower Emissions and Getting Cheaper ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 Yearprice fluctuations in recent decade (ex. GST and excise) Fig 5.5 Major component Year • With a
Slide 21: Wind/Solar Resource
Fig. 2.3 High-level location considerations Fig. 2.3 High-level location considerations Wind/Solar Resource • Much of Australia has good wind and solar resources. • The southern Pilbara has good solar and wind. • An ideal region for 23.5 20.4 17.2 14.1 11.0 23.5 20.4 17.2 14.1 11.0 13 12 11 10 9 8 7
Slide 22: Wind/Solar Resource Mapping
Wind/Solar Resource Mapping • Real-time wind and solar data being collected at site via Triton SODAR. • Ten minute sampling interval. • Multiple sampling heights from 40-200m. • Data collection to be ongoing through PFS and DFS. 22
Slide 23: Energy Optionality Allows for Optimal Energy Mix
Energy Optionality Allows for Optimal Energy Mix EMM EW consumes ~6.5 MWh/t of Gas generation: electricity • Reciprocating gas engines/turbines • Cost effective base case power solution • 100% gas power assumed in the Scoping Study Wind turbines: • Competitive Levelised Cost Of Energy (“LCOE”) • Lon
Slide 24: Next Steps for Element 25?
Next Steps for Element 25? Scoping Study complete and positive. What is the pathway to development..?
Slide 25: Our Journey…
Our Journey… PROJECT PFS DFS BUILD PRODUCE GROW FINANCE Flowsheet Development - COMPLETE Resource Infill & Upgrade - COMPLETE Environmental Surveys - COMPLETE PFS Delivery Native Title Agreements– COMPLETE Estimated Q4 Power Solution – COMPLETE 2019 Metallurgical Scale Up – ADVANCED Marketing & Offt
Slide 26: Marketing and Project Finance
Marketing and Project Finance • Global EMM markets outside of China are supportive of new production in stable jurisdictions Global EMM Consumption ~1.6 Mtpa Chinese Production ~1.5 Mtpa Ex China Consumption ~0.6 Mtpa Reference: Roskill 2019 26
Slide 27: Marketing and Project Finance
Marketing and Project Finance • Discussions underway with numerous potential offtake partners in Japan, Korea, USA and EU. • Demand outside China is robust with a preference for non Chinese supply. • Looking to negotiate bankable offtake agreements to underpin project financing. • Project financing
Slide 28: Our Journey… Our Goal…
Our Journey… PROJECT PFS DFS BUILD PRODUCE GROW FINANCE Our Goal… • Produce the cleanest, greenest manganese products globally. • Become a globally significant high purity manganese producer. • Achieve best in class quality and cost profile. • Operate ethically and sustainably in a Tier 1 jurisdicti
Slide 29: Thank you.
Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
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Slide 33: Appendices
Appendices (o\ Element(25 MN
Slide 34: World Class Manganese Resource
World Class Manganese Resource Category Tonnes (Mt) Mn (%) Si (%) Fe (%) Al (%) Measured 16 11.6 20.6 11.7 5.7 Indicated 41 10.0 20.9 11.0 5.8 Inferred 206 9.8 20.8 11.4 5.9 Total 263 10.0 20.8 11.4 5.9 • Significant potential remains to increase the resource with further drilling. • Scale of develo
Slide 35: Competent Person's Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results, Exploration Targets and Mineral Resources 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