European Metals Holdings Ltd · LSE:EMH
European Metals — Investor Presentation (October 2020)
22 slides from European Metals's investor presentation, October 2020
Slide 1: Cinovec: Producing Lithium in Europe for Europe
CINOVEC PRODUCING LITHIUM IN EUROPE FOR EUROPE INVESTOR PRESENTATION October 2020 OCTOBER 2020 / 1
Slide 2: Disclaimer & Cautionary Statement
DISCLAIMER & CAUTIONARY STATEMENT DISLAIMER This presentation has been prepared by European Metals Limited (“European Metals” or the “Company”). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an
Slide 3: The Cinovec Project
THE CINOVEC PROJECT Cinovec is a globally significant lithium project due to its: Size The largest hard rock lithium resource in Europe, 4th largest non-brine resource in the world. Cost Potential low cost producer - bottom half of the cost curve. Flexibility Ability to produce either battery grade
Slide 4: Established Two Very Significant Partnerships
Czech national power company, 70% state owned ESTABLISHED CEZ Group Injected €29 million at project level – Cinovec fully TWO VERY funded through to a construction decision SIGNIFICANT Investing into green energy solutions PARTNERSHIPS The partnerships provide political and financial support and wil
Slide 5: CEZ Group – Strong Industrial Partner
CEZ GROUP – STRONG INDUSTRIAL PARTNER • Headquartered in Prague; operates in 9 European jurisdictions: • Czech Republic, Slovakia, Germany, Poland, Hungary, Bulgaria, Romania, Turkey, France • Nuclear, renewables and coal-fired power plants • Electricity supply; electricity and natural gas trading;
Slide 6: CEZ Group – Green Energy
CEZ GROUP – GREEN ENERGY CEZ committed to Green Energy solutions • EV charging stations - Operates largest number of public charging stations in Czech Republic (>190 and increasing) - Dedicated home charging stations - Partnerships with Skoda, Mercedes-Benz, Peugeot • Renewable Energy - Interests in
Slide 7: European Battery Alliance Goals
EUROPEAN BATTERY ALLIANCE GOALS “Europe battery production is a strategic imperative for clean energy transition and the competitiveness of its automotive sector.” “The immediate objective is to create a competitive manufacturing value chain in Europe with sustainable battery cells at its core.” “St
Slide 8: Lithium – New Demand Europe
LITHIUM – NEW DEMAND EUROPE Cínovec Gigafactory to be built in Eastern Europe – 5 sites under consideration OCTOBER 2020 / 8
Slide 9: EU Hard Rock Lithium Resources
EU HARD ROCK LITHIUM RESOURCES Company Deposit Stage Total Li2O (%) LCE (Mt) Percentage resource of EU (Mt) Resources European Cinovec In DFS 695.9 0.421 7.22 65.5 Metals Infinity San Jose PFS 111.3 0.61 1.68 15.2 Lithium Deutsche Zinnwald DFS 40.4 0.762 0.76 6.9 Lithium Savannah Mino do DFS 27.0 1.
Slide 10: Project Summary
PROJECT SUMMARY • Large 1.68mtpa underground mining operation. • Underground crushing and conveyor to surface milling. • Slurry pipeline to beneficiation plant. • Wet magnetic separation of lithium concentrate. • Production of lithium hydroxide or carbonate via gypsum & sodium sulphate roast, water
Slide 11: Cinovec – The Deposit
CINOVEC – THE DEPOSIT Hole From To Width (m) Li2O (%) Hole From To Width (m) Li2O (%) CN-17 22 224 202 0.62 CIW-25 9.5 373 361.5 0.43 CIW-22 123 387.5 264.5 0.54 CIW-26 173.75 410 236.25 0.49 CN-81 1 224 223 0.52 CN-86 81.8 230.9 149.1 0.48 Selected lithium drill intercepts OCTOBER 2020 / 11
Slide 12: Cinovec – The Deposit
CINOVEC – THE DEPOSIT • Historic underground mine for high-grade tin/tungsten veins, closed in 1993. • Over 83,000m historic diamond drilling, 21.5km historic drive development, EMH confirmation drilling 9,477m, further drilling commenced in October 2018. • The upper portion of a granite cupola has
Slide 13: Cinovec - Infrastructure
CINOVEC - INFRASTRUCTURE • Excellent infrastructure in place to support development of Cinovec • Adjacent to a main road and CINOVEC near large industrial centres, car and chemical plants in Germany and Czech Republic • Processing location 2 km from existing rail line in industrial estate and adjace
Slide 14: Czech Republic
CZECH REPUBLIC • Central location in Europe • Over 90% of its exports are to European countries with 32% to Germany alone • Stable political and economic environment –Member of the European Union. • Excellent infrastructure, communication network and power • Relatively low corporate income tax rate
Slide 15: Cinovec – Underground Mine
CINOVEC – UNDERGROUND MINE OCTOBER 2020 / 15
Slide 16: Cinovec – Lithium Hydroxide Process
CINOVEC – LITHIUM HYDROXIDE PROCESS LIMESTONE GYPSUM WATER MICA CONCENTRATE RESIDUE TO TAILINGS ROAST LEACH FILTER SODIUM SULPHATE RECYCLE SODIUM SULPHATE IMPURITY REMOVAL REMOVAL EVAPORATION SODIUM CARBONATE BATTERY GRADE LITHIUM CARBONATE LITHIUM CARBONATE PRECIPITATION POTASSIUM SULPHATE GLASERIT
Slide 17: Updated PFS Summary – June 2019
UPDATED PFS SUMMARY – JUNE 20191 (USD) ANNUAL PRODUCTION2 25,267 tpa battery grade LiOH.H2O PROJECT LIFE 21 years TOTAL JORC RESOURCE3 7.22 Mt LCE (4.08 Mt indicated, 3.15 Mt inferred) CONSTRUCTION CAPITAL COSTS $482.6 million OPERATING COSTS ( without credits ) $4,876/t LiOH.H2O OPERATING COSTS ( w
Slide 18: The Path to Production
THE PATH TO PRODUCTION Key activities for the next 12 months: • DFS and Front-End Engineering Design (FEED) • Complete drilling and update resource model to include Measured Resources for upgrade of Probable Reserves to Proven Reserves. • Progress EIAs for mining and processing. • Complete locked-cy
Slide 19: Corporate Snapshot
CORPORATE SNAPSHOT 12 MONTH SHARE PRICE ASX & AIM CODE EMH CDI’s 160.5M MARKET CAP 83.4M @ AUD 0.52 AUD SHARE HOLDER STRUCTURE Cadence Minerals plc 14.5% Held by Directors (inc Cadence Minerals plc) 20.6% *all data as at 14 Oct 2020 at 10:00am (WST) OCTOBER 2020 / 19
Slide 20: The Team
THE TEAM KEITH COUGHLAN (AUS) RICHARD PAVLIK (CZ) KIRAN MORZARIA (GB) EXECUTIVE CHAIRMAN EXECUTIVE DIRECTOR NON EXECUTIVE DIRECTOR • 30 years stockbroking & funds • Masters Mining Engineering • CEO & Director of EMH’s largest management experience • 30 yrs Czech mining experience shareholder, Cadenc
Slide 21: Summary
SUMMARY • Cinovec is located in the heart of Europe. • Cinovec is the largest economic lithium resource in Europe. • Now partnered with CEZ – multinational operating across Europe with €2.4bn EBITDA in 2019 and Balance Sheet €28bn • EU requires substantial supplies of lithium and is fully committed
Slide 22: Contact
CONTACT Keith Coughlan | Executive Chairman Suite 12, 11 Ventnor Avenue, West Perth, WA 6005, AUSTRALIA keith@europeanmet.com Simon Edwards | Geomet C.O.O. se@europeanmet.com www.europeanmet.com 22 OCTOBER 2018 / 22 OCTOBER 2020 / 22
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