Kendrick Resources Plc · LSE:KEN
Kendrick Resources — Investor Presentation (February 2023)
27 slides from Kendrick Resources's investor presentation, February 2023
Slide 1: Building a long term Energy Metals Business in Scandinavia
Building a long term Energy Metals Business in Scandinavia WWW.KENDRICKRESOURCES.COM
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by Kendrick Resources PLC (“Kendrick”) in connection with the proposed admission of its ordinary share capital to the Official List (by way of Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stoc
Slide 3: Vision and Strategy
VISION Deliver energy metals to Europe to help enable its renewable energy transformation STRATEGY Build a top tier energy metals production business focussed on quality vanadium and nickel mineral resources in Scandinavia February 2023 – Page 3
Slide 4: Investment Overview
INVESTMENT OVERVIEW QUALITY ASSETS: • Advanced vanadium projects in Sweden and Finland • Nickel exploration projects in Norway DEFINED MINERAL RESOURCES: • Airijoki Vanadium Project: 44.3 million tonnes, containing 5.9 million tonnes of magnetite @ 0.4% V2O5 (In-Situ) and @ 1.7% V2O5 (in magnetite c
Slide 5: Company Snapshot
COMPANY SNAPSHOT LSE Standard List Traded Resource Company Focused on Generating Value Through Asset Development The information below is illustrative and is on the basis of a £3.25M fund raise at 3.5 pence per share Key facts 215M share @ Admission Shareholders subject to Lock ups • Stock Exchange
Slide 6: Company Management
COMPANY MANAGEMENT Chair – Colin Bird Non Executive Director – Evan Kirby • Chartered engineer and a Fellow of the Institute of • Metallurgist with over 40 years’ experience with Materials, Minerals and Mining with more than 40 Impala Platinum, Rand Mines and Rustenburg years’ experience in resource
Slide 7: Project Background – Energy Metals
PROJECT BACKGROUND – “ENERGY METALS” • Electrification & de-carbonisation of the economy to limit global warming to meet COP 26 target of 1.5 degrees is driving demand for “energy metals” • Vanadium – is a key component of REDOX flow batteries for energy storage • Lithium • Cobalt • Nickel – has ris
Slide 8: Uses of Vanadium
Uses of Vanadium Uses of Vanadium 7 • Primarily used as an alloy in steel & aluminium production. Vanadium’s properties give it the ability to make materials stronger lighter, more efficient and more powerful. Vanadium-titanium alloys have the best strength-to-weight ratio of any engineered material
Slide 9: Vanadium – REDOX Flow Batteries
Vanadium – REDOX Flow Batteries8 REDOX Flow Properties Vs. Lithium Vanadium • Rechargeable flow battery which employs vanadium ions as charge carriers • Non-flammable – suitable for grid storage • Over 10,000 cycles vs 400 to 1,200 cycles for Li-Ion • Do not degrade for more than 20 years • Batterie
Slide 10: Nickel – Increased use in EV Batteries
Nickel – Increased use in EV Batteries • Nickel-Manganese-Cobalt (NMC) & Nickel-Cobalt-Aluminium (NCA) batteries dominate the electric vehicle market9 • The original NMC battery started with a 1-1-1 ratio between the metals, the nickel portion has been steadily rising and is expected to rise to 8-1-
Slide 11: Nickel – Rising Demand
Nickel – Rising Demand • 70% of Nickel is used as an alloy input in steel production • But it’s usage in electric vehicle production will change dramatically with the rising demand for electric vehicles Nickel use in electric vehicle11 Nickel Production12 2017 2023 2025 Products include Nickel metal
Slide 12: Company Drivers
COMPANY DRIVERS NICKEL VANADIUM15 • Positive price forecasts - take up of electrical • Global vanadium consumption increased from 109,835t in 2019 to vehicles 112,157t in 2020, driven by recovering steel production in China • Nickel Cash Price 31 Jan 2022: US$22,795/mt13 • CAGR of 2.7% in steel prod
Slide 13: Vanadium Project Portfolio
VANADIUM PROJECT PORTFOLIO Finland Reservations granted 201819 Sweden Exploration Licences granted Wholly owned – Kendrick will hold 100% interest Access to excellent infrastructure Inferred Mineral Resources defined at Koitelainen and Airijoki20 Drilling and metallurgical studies planned, giving ab
Slide 14: Key Advantages & Our Vanadium Projects
KEY ADVANTAGES & OUR VANADIUM PROJECTS Emerging Vanadium Industry | Vanadium production plant planned to be built in Finland21 Access to infrastructure | 4km (Airijoki), 15km (Koitelainen) Power Costs | Approx. 10c/kwh, lowers OPEX Proximity to Markets | V2O5 market in Europe Huge upgrade factor to
Slide 15: Airijoki Project
AIRIJOKI PROJECT Key Facts Product Vanadium Location Northern Sweden - approximately 55km east of the mining town of Kiruna and 9km north-west of the village of Vittangi Exploration Licence Five exploration licences covering 39km2 High-Grade Assay Results from Pursuit Drilling25 18 holes for 2876m o
Slide 16: Airijoki Project
AIRIJOKI PROJECT Inferred Mineral Resource27 44.3 million tonnes, containing 5.9 million tonnes of magnetite @ 0.4% V2O5 (In-Situ) and @ 1.7% V2O5 (in magnetite concentrate), for 100,800 tonnes of V2O5 based on 13.3% mass recovery of magnetite concentrate Extension to Inferred Mineral Resource Zone
Slide 17: Koitelainen Vosa Prospect
KOITELAINEN VOSA PROSPECT Key Facts Product Vanadium Location Finland Exploration Licence Exploration Licence 13.72 km2 Historical High-Grade Assay Results 16 holes drilled in 1970’s were resampled 29 Magnetite concentrates with exceptional vanadium grades • 12.2m @ 2.6% V2O5 • 6.15m @ 3.3% V2O5 • 9
Slide 18: Development of Vanadium Projects – Phase 1
DEVELOPMENT OF VANADIUM PROJECTS Project Development Concept – Phase 1 Airijoki (Sweden) and Koitelainen (Finland) projects to produce high-grade vanadium magnetite concentrates to sell to European and global markets Advantages • Lowers pre-production CAPEX • Decreases timeframes to production • Bui
Slide 19: Development of Vanadium Projects – Phase 2
DEVELOPMENT OF VANADIUM PROJECTS Project Development Concept – Phase 2 Centralised plant to process vanadium magnetite concentrates from Airijoki and Koitelainen into V2O5 flake or VRFB electrolyte for sale to Europe Advantages • Multiple sources of high-grade vanadium magnetite concentrate • Blendi
Slide 20: Nickel Project Portfolio
NICKEL PROJECT PORTFOLIO Projects optioned from Eurasian Minerals Sweden AB. 100% interest in projects can be purchased for: • On exercise 20 million shares in Kendrick + after 1 year shares to same value • Advanced cash royalty payment of US$75,000 • Further work commitment of US$500,000 • Up to US
Slide 21: Espedalen Nickel Project
ESPEDALEN NICKEL PROJECT Upside to Stormyra Ni-Cu Deposit • Stormyra Prospect36 Blackstone defined 1.16mt @ 1% Ni, 0.42% Cu at the Stormyra Prospect 21m @ 1.75% Ni, 0.66% Cu & 0.06% Co 7.1m @ 2.68% Ni, 1.26% Cu & 0.08% Co 14.6m @ 1.74% Ni, 0.79% Cu & 0.06% Co Re-interpretation of drill hol
Slide 22: Espedalen Nickel Project
ESPEDALEN NICKEL PROJECT Exploration Prospects • Megrund Prospect38 117m @ 0.31% Ni & 0.12% Cu (hole ES07-101) 56m @ 0.72% Ni & 0.22% Cu (hole 17) 54m @ 0.36% Ni & 0.14% Cu (hole 25) 36m @ 0.57% Ni & 0.24% Cu (hole 6) Estimate a Mineral Resource for Megrundstjonnet based upon existing dril
Slide 23: Sigdal Nickel - Gold Project
SIGDAL NICKEL - GOLD PROJECT Project Summary • Sigdal Nickel-Gold Prospect41 1.48m @ 0.36% Ni, 0.43% Cu & 10.1g/t Au Very encouraging high grade gold intersection Drill two follow up drill holes targeting the high grade gold associated with the geophysical conductor Drilling to be conducted
Slide 24: Hosanger Nickel Project
HOSANGER NICKEL PROJECT Project Summary • Hosanger Nickel Prospect42 Past production from Litland Nickel Mine is estimated to be 462,000t @ 1.05% Ni, 0.35% Cu and 0.05% Co with grades up to 3% Ni reported Review the 50 exploration holes drilled on the project Define drill targets Follow up t
Slide 25: Operational Plan
OPERATIONAL PLAN Project Commodity Country H1 2022 – main objectives Announce rock chip and soil geochemical results Commence Metallurgical Test Work Program Airijoki Vanadium Sweden 1,500m Drilling Program To Extend Mineral Resource Drilling program of 3-6 holes for 700m Simesvallen Vanadium Sweden
Slide 26: Use of Funds based on 3.25M
USE OF FUNDS based on 3.25M Funds Funds Item Project Commodity Country (£000) (£000) Technical Budget per CPR Airijoki Vanadium Sweden 621 1,862 (16 months) Central Sweden Vanadium Sweden 291 Koitelainen Vanadium Finland 82 Admission & transaction 471 costs Karhujupukka Vanadium Finland 116 Corporat
Slide 27: Summary
SUMMARY TURN-KEY ENERGY METALS PORTFOLIO Sweden and Finland Vanadium Projects Airijoki and Koitelainen produce vanadium magnetite concentrates in the upper echelon of projects globally Projects are enhanced by cheap power and access to excellent infrastructure Significant upside to increase the Airi
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