South Star Battery Metals Corp · TSXV:STS
South Star Battery Metals — Investor Presentation (November 2022)
40 slides from South Star Battery Metals's investor presentation, November 2022
Slide 1: Santa Cruz Graphite Project Corporate Presentation
TSXV: STS | OTCQB: STSBF Santa Cruz Graphite Project Road To Production in Q4 2023 July 2019 Corporate Presentation “Fundamental Value in a Premier Battery Metals Jurisdiction” Corporate Presentation: November 2022
Slide 2: Cautionary and Forward-Looking Statements
Cautionary and Forward-Looking Statements This presentation includes certain statements that constitute “forward-looking statements”, and the extent any forward-looking statements constitute future-oriented financial information or “forward-looking information” within the meaning of applicable secur
Slide 3: South Star Mining Highlights
South Star Mining Highlights Key Company Highlights • Management team with proven track-record of taking projects from concept, through development & into production & operations in the Americas • Near term commercial production scheduled at Santa Cruz for Q4/2023 • Diversified global portfolio with
Slide 4: South Star Highlights: 5-7 Year Strategic Plan
South Star Highlights 5-7 Year Strategic Plan • 2 mines providing high Santa Cruz Ceylon quality concentrates Graphite Mine Graphite Mine • Brazil – 50,000 tpy (Brazil) • Alabama – 50,000 tpy (AL. US) • Centrally located value- Phase 1 – 5,000 tpy Phase 1 – 25,000 tpy added/active anode plant Q4 202
Slide 5: 5-7 Year Strategic Plan – Global Markets/Sectors
South Star Mining Highlights 5-7 Year Strategic Plan – Global Markets/Sectors • Diversified portfolio of products and Industrial Value-Added / sectors that can supply growing Applications Active Anode global demand • Santa Cruz concentrates have been tested and performed well for High Strength Steel
Slide 6: STS Share Information
STS Share Information Stock Information as of Nov 24, 2022 Cap Table (000s)* Total Outstanding 32,755 Warrants @ $0.30 1,060 (Exp 05/2024) Warrants @ $0.53 132 (Exp 10 & 11/2024) Share of Mineral Demand from Energy Storage Under IEA 2DS Through 2050 Warrants @ $0.75 8,962 (Exp 02 & 10/2024) Warrants
Slide 7: STS Comparables
STS Comparables Graphite Exploration and Development Companies within the Mining Cycle Fluctuating commodity prices Risks Funding risk Technical risk South Star can achieve Exploration risk production within 12 High Value (denotes market cap. in C$M) Discovery months of starting construction Specula
Slide 8: Santa Cruz Project Location
Santa Cruz Project Location Unparalleled Infrastructure & Logistics TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 8
Slide 9: Santa Cruz Graphite Project Advantages
Santa Cruz Graphite Project Advantages KEY PROJECT HIGHLIGHTS Santa Cruz project situated in second-largest flake-graphite LARGE & producing district in the world EXTRA-LARGE “The larger the flake size, • 7% of global production in 2021 graphite flakes the higher the price!” GEOLOGY, EXPLORATION & R
Slide 10: Investment Highlights
Investment Highlights Santa Cruz Phase 1 Fully Funded & Construction Ready Mining Friendly District Open-Pit Mining & No Drill & Blast With 80 + years of graphite production With low strip ratio Simple, Proven Flowsheet Experienced Management & Technology Proven mine & plant builders Simple Operatio
Slide 11: Investment Highlights
Investment Highlights Santa Cruz Phase 1 De-risked All licenses & Stepping Low OPEX Proven tested permits are valid into production Low in proven producing process circuit & up-to-date in phases environmental risk district MEDIUM Low Low capital geological risk intensity LOW HIGH PROJECT RISK Establ
Slide 12: Santa Cruz Graphite Project
Santa Cruz Graphite Project Phase 1 Construction Ready INFRASTRUCTURE COMPETITIVE ADVANTAGES Excellent Infrastructure Itabela Major port 1.3 km Power, gas, water all of Ilheus is 270 km away via Experienced workforce from paved within 5 km paved federal nearby highway highways Federal BR 101 New Ita
Slide 13: ESG & Sustainability
ESG & Sustainability ESG & Sustainable Production is part of our Corporate DNA ENVIRONMENTAL + SOCIAL + GOVERNANCE ✓ Renewable sources provide 80% of ✓ First major industry in the region ✓ Review, evaluate and update Brazilian energy generation ✓ Committed to responsible, equitable regularly governa
Slide 14: Global Markets
Global Markets Perfect Storm: Projected Large Increase in Graphite Demand and Supply Squeeze • Brazil has a large internal demand for natural graphite (80-90kt/p.a.) • Graphite has many uses outside of battery metals • High-tech, graphene, military, etc. “Graphite deficit starting this year(2022), a
Slide 15: Global Markets: Graphite Demand
Global Markets Graphite Demand is in a Perfect Storm 2018 to 2050 For Battery Metals Supply 2050 Demand Kt Growth % (t) Aluminum 5,583 Graphite 494% Lithium 488% Graphite 4,590 Cobalt 460% Nickel 2,268 Indium 231% Copper 1,378 Vanadium 189% Lead 781 Nickel 99% Manganese 694 Silver 56% Cobalt 644 Neo
Slide 16: Global Battery Market: Brazil
Global Battery Market Brazil - Premier Battery Metals Jurisdictions • Brazil is the largest graphite producer of high-quality graphite outside of China with 80+ years of continuous production and 3rd most important country in EV Battery Supply Chain. Graphite Supply 2020 EV Supply Chain Ranking by C
Slide 17: Global Battery Market: Brazil
Global Battery Market Brazil - Premier Battery Metals Jurisdictions Top 3 Most Profitable Operating Mines in World are in Located in Brazil TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 17
Slide 18: Santa Cruz World-Class Flake Sizes
Santa Cruz World-Class Flake Sizes Representative Santa Cruz Graphite Project Flake Percentage +80 Mesh Concentrates Mesh Size (#) Distribution %Cg 30# 4% 95% 50# 32% 95% 80# 27% 97% 140# 17% 97% -140# 20% 97% Recovery 88% +50 mesh with 98% Cg and +99.9% Cg concentrates were also produced during tes
Slide 19: 2019 Santa Cruz Update Resource Estimate
2019 Santa Cruz Update Resource Estimate* The 2019 updated Resource Estimate shows strong geologic potential and continuity of high-quality graphite mineralization in friable, easily mined, weathered materials. New areas with at-surface mineralization were discovered, and the deposit is open both al
Slide 20: 2020 Santa Cruz Preliminary Feasibility Study
2020 Santa Cruz Preliminary Feasibility Study* The financial analysis in 2020 PFS shows very favourable and robust results that highlight the Santa Cruz Project’s advantages in Santa Cruz Graphite the graphite sector. Mineral Reserves Summary* Key Financial Results Mineral In-situ Post-tax NPV5% US$
Slide 21: Santa Cruz - US$28M Sprott Stream Financing
Santa Cruz - US$28M Sprott Stream Financing Long-term strategic partnership with Sprott Resources Streaming & Royalty Corp. • The Phase 1 stream payment has a US$10M cash consideration to fund 100% of required Phase 1 CAPEX, which allows South Star to start construction in the next 45-60 days with c
Slide 22: Alabama Graphite Belt - History
Alabama Graphite Belt - History TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 22
Slide 23: Alabama – Ceylon Graphite Project
Alabama – Ceylon Graphite Project Rushing Property Ceylon Property US HWY 280 • 4-Lane • Gas and Power High-Tension Electric TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 23
Slide 24: Alabama Graphite Belt – Geology
Alabama Graphite Belt – Geology Weathered Graphitic Schist Graphitic Quartzite Cg = 3.5% Cg = 4.0% TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 24
Slide 25: Ceylon Recent Project Developments
Alabama – Ceylon Graphite Project Recent Project Developments • USCM spins out Charge Minerals (Ceylon + Rushing leases) to Hexagon Spring 2019 • Detailed surface mapping Spring 2019 • Trenching Program Summer 2019 • Bulk Sampling Program Summer 2019 • Bench-scale Beneficiation Work at GIRCU Fall an
Slide 26: Alabama – Ceylon Graphite Project
Alabama – Ceylon Graphite Project Surface Geology and Structural Map Summer 2019 Trenching Overview compiled by Charge Minerals Avg grade between 3 and 5% Cg 29 Trenches 2,769m w/ 765 samples + Standards & Duplicates TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 26
Slide 27: Bench-Scale Testing at GIRCU (China)
Alabama – Ceylon Graphite Project Bench-Scale Testing at GIRCU (China) Product Mass, % Fixed Carbon(FC) Assay, % Recovery, % • Concentrate grade 7 Cleaner Conc th 2.74 97.92 81.41 7th Cleaner Tail 0.09 92.32 2.39 increased further to 6th Cleaner Tail 0.08 89.02 2.21 5th Cleaner Tail 0.08 81.11 1.99
Slide 28: STS Value Proposition
STS Value Proposition • Currently Undervalued When Compared to Peer Group Enterprise Value / T of Cg Enterprise Value as % of NPV TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 28
Slide 29: STS Value Proposition: Low CAPEX and OPEX
STS Value Proposition • Low CAPEX and First Quartile OPEX in a District with 80+ Years of Continuous Operations Capital Intensity US$/T of Capacity OPEX US$/T TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 29
Slide 30: STS Value Proposition: CAPEX vs IRR
STS Value Proposition • Low CAPEX and High Return on Investments CAPEX vs IRR (ATAX) 450 ZEN 400 GPH Net Present Value 350 per Share 300 NOU MNS CAPEX - US$M 250 LLG Outstanding: C$2.52 Fully Diluted: C$2.13 200 SRG RNU EGR FMS 150 WWR NGC TON BEM BKT 100 NEXT GPX LML 50 VRC STS - 0.0% 20.0% 40.0% 6
Slide 31: STS Value Proposition: Study Phase vs Market Cap
STS Value Proposition • Compelling Value Proposition with Construction-Ready Project Study Phase Vs. Market Cap 1000 NOU TLG Market Cap (Log $M Xchange Currency) EGR MNS NEXT WWR SVM 100 BKT FMS GPH WKT BAT CY GRAT SRG RNU VRC NG LMR CVE HXG BSM BEM GEM 10 EGA LION SJL STS Ph 1&2 STS Ph 1 1 0 TR 1 P
Slide 32: STS Catalysts
STS Catalysts • Delivering Fundamental Value in the Graphite Sector with First New Production in the Americas Since 1996 Santa Cruz Graphite Mine Alabama Graphite Project ✓ 100% Funding Phase 1 CAPEX • Exploration & Drilling Program ✓ Partial Funding Phase 2 CAPEX ✓ 43-101 Maiden Drilling (Q4/22) ✓
Slide 33: STS Catalysts & Strategic Schedule
STS Catalysts & Strategic Schedule • Development & Operations Roadmap Expansion based on market Phase 3 Production conditions and demand Construction (50k tpy Con) Feasibility Phase 2 Production Drilling Study Construction (25k tpy Conc.) Santa Cruz Phase 2/3 Mining License Phase 2/3 Environmental P
Slide 34: Why South Star?
Why South Star? Near-term graphite producer with responsible and sustainable production, committed to tangible, long-term benefits for employees, communities, and stakeholders. ✓ Exponential Growth in Demand ✓ PFS NI 43-101 & updated ✓ Growing lithium-ion battery Santa Cruz Resource Time market Proj
Slide 35: Contact
TSXV: STS | OTCQB: STSBF For more information, please contact: Richard Pearce CEO/President South Star Investor Relations (Canada IR) +1 (604) 706-0212 X3002 Email: invest@southstarbatterymetals.com RBMG – RB Milestone Group LLC (IR US) Trevor Brucato, Managing Director Email: southstar@rbmilestone.
Slide 36: Appendix 1 – Licensing & Permits (5,000 tpy Pilot Plant)
APPENDIX 1 – LICENSING & PERMITS (5,000 TPY PILOT PLANT) TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 36
Slide 37: Phase 1 – Licensing & Permitting
PHASE 1 – LICENSING & PERMITTING • Environmental Permit Approved for 4 Years ON Oct 15, 2020 • Mining License Approved for 3 Years by ANM on Dec 31, 2020 • Phase 1 Construction Permit Approved Sept 15, 2022 • Permits and licenses can be renewed TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com
Slide 38: Appendix 2 Corporate Structure / Team
APPENDIX 2 CORPORATE STRUCTURE / TEAM TSXV: STS | OTCQB: STSBF www.southstarbatterymetals.com 38
Slide 39: Corporate Structure
Corporate Structure South Star Battery • South Star Battery Metals Corp. is a public company, Metals Corp. traded on the Toronto Venture Stock Exchange (TSXV: STS) under the symbol STS and on the OTCQB under symbol STSBF. 100% 100% • Brasil Graphite Corp. is a wholly-owned subsidiary incorporated in
Slide 40: Leadership Team
Leadership Team BOARD OF DIRECTORS Marc Leduc Chairman Priscila Costa Richard Pearce Eric Allison Dan Wilton Exec. Director Exec. Director Lima Indep. Director Indep. Director MANAGEMENT Richard Pearce President & CEO CHF Capital Eric Allison Samantha Shorter Markets Business Dev. CFO Investor Relat
South Star Battery Metals — Investor Presentation (November 2022) on 6ix