Boron One Holdings Inc · TSXV:BONE
Boron One — Investor Presentation (April 2023)
47 slides from Boron One's investor presentation, April 2023
Slide 1: Piskanja Borate Project, Serbia
April 2023 Piskanja Borate Project, Serbia Boron One is advancing its world-class deposit towards exploitation in the TSXV: BONE lucrative borate space
Slide 2: Cautionary Statement
Cautionary Statement This presentation has been prepared by Boron One Holdings Inc. (“BONE”) and consists of slides for a presentation concerning BONE’s project. By reviewing/attending this presentation you agree to be bound by the following conditions: The PEA summarized in this presentation is con
Slide 3: Forward-looking statements
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information
Slide 4: Cautionary Note to United States Investors
Cautionary Note to United States Investors Boron One Holdings Inc. prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this news release are defined in a
Slide 5: Our Mission
OUR MISSION To aid in the decarbonization of Planet Earth through the responsible utilization of our boron assets 5
Slide 6: The Piskanja Boron Project has been significantly de-risked
The Piskanja Boron Project has been significantly de-risked ✓ Exploration phase is complete ✓ Exploitation licensing process underway ✓ PEA demonstrates robust economics ✓ Funding partner secured ✓ Industry partnerships in process 6
Slide 7: Executive Summary
High-grade world-class deposit Robust economics Executive Summary
Slide 8: Executive Summary
Mining license underway Rare and valuable strategic mineral Executive Summary
Slide 9: Boron One – PEA highlights
Boron One – PEA highlights PEA 06.2022 Results (in USD): NPV10 after tax $525million IRR after tax 78.7% Gross Project Revenue $2billion Capex payback 12 months Annual Gross Revenue $126million Boron One mkt cap. $10million Executive Summary
Slide 10: Boron One - Board of Directors and Management
Boron One - Board of Directors and Management “proven track record; local representation; multi-disciplined” Tim Daniels, B Comm. (International Finance), President and CEO has 25 years experience in the areas of management, financing, strategic planning, business development, and corporate finance
Slide 11: Milestones Timelines
6/2022 Updated PEA - Complete 12/2022 *Geological Elaborate - Complete 8/2023 *Feasibility Study - Underway Milestones 12/2024 ----- *Mine and processing facilities designs Timelines 12/2026 Mine construction completed * Steps in the Mine Licensing Process 11
Slide 12: Funding Highlights
Osmose committed €22M (45% of Piskanja) Timing/amounts match development goals BONE remains operator Funding Highlights No further capex by BONE anticipated : Total capex (USD) $61.5M ------ Equity (Osmose*) $23.5M Osmose Offtakes $5M Ltd. Debt finance (54%) $33M Balance Nil * € to USD conversion 12
Slide 13: Boron is not boring!
Boron is not boring! Used in +500 products that shape modern life ▪ Fiberglass ▪ Borosilicate glass (LCD screens, solar panels, smart phones, fiber optics) ▪ Ceramic glazes and enamels ▪ Detergents, fire retardants, metallurgy, fertilizers, insecticides, wood preservatives ▪ many specialty products
Slide 14: Boron’s special properties and uses
Boron’s special properties and uses World Boron Consumption by End- Use Borates are safe – similar toxicity to table salt They are irreplicable - in many applications, there is no substitute for borates
Slide 15: Boron is critical for de-carbonization!
Boron is critical for de- carbonization! • Wind turbines • Solar panels • Rechargeable batteries • Energy efficient buildings • Hydrogen fuel cells • Decarb. of fossil fuels • Nuclear fusion • Radiation containment • Greater crop yield • EVs “Boron is a high impact, cross cutting super material” – C
Slide 16: How much boron?
How much boron? Tesla: 50kg/EV [glass, batteries, motor, steel beams] OS Wind turbine: 6,375kg per [blades, motor] China alone added 10,000 turbines in 2015 Fertilizer: up to 3.5kg/ha/yr Boron deficiency affects 132 crops in 80+ countries 16
Slide 17: De-carbonization will greatly impact demand for boron
De-carbonization will greatly impact demand for boron Annual boron demand in 2050 may be between 4 – 10X demand today 17
Slide 18: Boron market characteristics
Boron market characteristics Oligopoly: Boron 2 Demand market Global Boron is producers growth > valued at consumption rare have 70% Production US$5B > production market growth per year share A lack of competition in supply helps to keep prices stable 18
Slide 19: Demand is outpacing supply
Demand is outpacing supply “Borate demand outpacing supply in medium horizon, despite expansions” - Rio Tinto Minerals 19
Slide 20: Boron prices – remarkably stable
Boron prices – remarkably stable lack of supply competition + broad-based demand = stable prices growing at a controlled pace. 20
Slide 21: Boron supply / demand
Boron supply / demand Reserves Consumption 21
Slide 22: Scarcity of borates
Scarcity of borates Economic borate occurrences are very rare The European Commission’s list of Critical Raw Materials includes borates since 2017 The list helps incentivise European production of critical raw materials and facilitate the launching of new mining and recycling activities. Boron = Cri
Slide 23: Scarcity = Profitability
Scarcity = Profitability • Rio Tinto’s profit margin was 34% on their borate unit in 2015 (Industrial Minerals) • "Some of our assets may be smaller, but they are valuable and highly cash generative. A good example is our borates business “, RTZ CES Jean-Sebastien Jacques – Dec. 2016 ---------------
Slide 24: Piskanja PEA highlights - 2022
Piskanja PEA highlights - 2022 Post-tax Net Present Value (NPV10) $524.9 million Post-tax IRR 78.7% Initial capital cost (Capex) (including 30% contingency) $79.9 million Capex payback from startup 12 months Life of Mine (“LOM”) 16 years Gross Project Revenue $2.02 billion Net Project Cash Flow (pos
Slide 25: Piskanja PEA highlights - 2022
Piskanja PEA highlights - 2022 LOM Sustaining Capital (including 30% contingency) $50.8 million LOM average gross production 305,304 tonnes Profitability Index (NPV/Capex) 6.57X (post-tax) LOM Capital Intensity Index (Initial Capex/ROM tonnage) $16.36 LOM average C1 (cash operating) cost (run-of-min
Slide 26: Updated Mineral Resource Estimate - 2022
Updated Mineral Resource Estimate - 2022 Resource Category Geological B2O3 % Contained B2O3 Resource (T) (T) Measured 1,391,574 35.59 495,251 Indicated 5,478,986 34.05 1,865,677 Measured + Indicated 6,870,560 34.36 2,360,928 Inferred 284,771 39.59 112,732 LOM cutoff grade of 12% B2O3 and 1.2 metre m
Slide 27: PEA Economics - 2022
PEA Economics - 2022 Project Cashflow US$ Millions Gross Revenue 2,016.8 Deductions 106.7 Net Revenue 1,910.1 Operating Costs 449.2 Project Capital 79.9 Sustaining Capital 50.8 Closure 15 Project Cashflow 1,315.1 Working Capital 0 Corporation Tax 101.1 Net Project Cashflow (post-tax) 1,214.0 27
Slide 28: PEA Economics - 2022
PEA Economics - 2022 Project Capital (USD’000) Base Cost Contingency Total Mining 39,400 11,820 51,220 Processing - Colemanite 2,000 600 2,600 Processing - Boric Acid - - - Infrastructure 16,250 4,875 21,225 Tailings 3,814 1,144 4,957 Total 61,464 18,439 79,903 Per t cost Colemanite Boric Acid Minin
Slide 29: Market penetration strategy
Market penetration strategy BONE’s planned production: 250,000 t/yr, = market penetration of < 5% Sales to focus on the European and Asian markets (>50% of global demand) Room exists in the market for additional high-quality producers, we can compete with the inferior producers from South America (+
Slide 30: Market penetration strategy
Market penetration strategy Colemanite market – only 1 current world supplier. Buyers welcome an additional supplier Erin’s colemanite has much lower arsenic content that that from Turkey, which is a growing concern for most countries Strategic relationships with leading boron industry participants
Slide 31: Our ESG Policy and the Piskanja Project
Our ESG Policy and the Piskanja Project • Boron is safe – toxicity similar to table salt (with trace amounts found everywhere) • Underground mining operation – no ugly pit, dust or noise • Small surface footprint – 5 ha in total only • Best industry practices mining and processing designs • Waste ma
Slide 32: Our ESG Policy and the Piskanja Project
Our ESG Policy and the Piskanja Project • No disruption of agricultural, residential or any private land • 200+ permanent, skilled, high paying jobs created • Hundreds of spinoff jobs created in local area • Mining is strongly supported by the Federal government • Strong mining culture amongst local
Slide 33: Serbia is in process for EU membership and has preferred trading status
Serbia is in process for EU membership and has preferred trading status The government has stated “to increase the mining industry’s contribution to GDP from its current 2% to 10%” No restrictions on foreign ownership, or currency 15% corporate tax rate and 5% NSR 10-year tax holiday available (BONE
Slide 34: Foreign Investment in Serbia
Foreign Investment in Serbia +500 other international companies US$26Billion direct investment in Serbia over the past decade 34
Slide 35: General information - local community
General information - local community Adjacent to the small town of Baljevac (3000 inhabitants) Strong mining tradition and culture (coal mine) Borates perceived as the future of local mining Region of strategic importance to Serbian Government 35
Slide 36: General information - infrastructure
General information - infrastructure • Excellent local infrastructure in place: all-weather roads, 3-phase power generation , rail, accommodations, cell/internet service, restaurants, fuel stations, machine shops, supplies, etc. • Experienced, under utilized mine work force available locally
Slide 37: Summary & conclusions
Summary & conclusions Very small market An excellent Robust economics capitalization takeover target Competitive Partner in place advantages exist for BONE Valuable and scarce mineral with Good mining infrastructure in Blue sky potential growing uses and demand place 37
Slide 38: Boron One Holdings Inc
Blake Fallis, General Manager Website: www.boronone.com Email: blake@boronone.com Boron One Holdings Inc Tel: (1) 250 384 1999 - quick facts: Toll free: (1) 888 289 3746 Fax: (1) 250 384 6761 TSXV Symbol: BONE Berlin Stock Exchange: EKV 645 Fort Street, Suite 203 Shares outstanding: 172,083,769 Vict
Slide 39: Appendix
• Piskanja contour map • Basin information • Deposit profile Appendix • 3D deposit image • Exploration history • Demand drivers • Industry experts 39
Slide 40: Piskanja Contour Map
Proposed surface footprint location: portal entry, processing, storage, holding pond Existing rail Main decline loading facility Piskanja Contour Map 1:10,000 scale Existing rail line FW drive 40
Slide 41: Jarandol basin – borates distribution & resource
Jarandol basin – borates distribution & resource Piskanja deposit two primary beds about 90m vertical separation the upper bed thickness: 3 -14m (starts at a depth of 120m) the lower bed thickness 1.5 - 6m Pobrdje deposit (starts at a depth of 210m) 3 km to the west of Piskanja small, two-bed resour
Slide 42: Piskanja borate deposit geology
Piskanja borate deposit geology Borates are inter-bedded within volcano-sedimentary lacustrine series of clastic- carbonaceous-tuffaceous sediments, tuffs, volcanics and inter-series breccias. Sedimentary series extends in NNE - SSW direction and dips toward E - SE at an angle of about 30° source: 4
Slide 43: General view of the mineralisation zones of Piskanja
General view of the mineralisation zones of Piskanja (Leapfrog, view along the azimuth 143, dip 31) 43
Slide 44: Exploration history
Exploration history Yugoslavian Geo Survey 1979 first geochemical investigation of boron dissemination conducted 1987 colemanite first noted in structural borehole 1987 – 1992 22 boreholes; total 7,006 m - partial delineation of the deposit Erin Ventures Inc. 1997 10 boreholes; total 2,771 m - furth
Slide 45: Rio Tinto estimates boron industry will need increased production
Rio Tinto estimates that over the next five years, the boron industry will need increased production equivalent to nearly two additional boron mines the size of their California operation, in order to keep up with demand. 45
Slide 46: Erin’s opportunity – industry experts
Erin’s opportunity – industry experts “the entry of one or even a few smaller players into the boron market, to break the effective Rio Tinto/ETi oligopoly, would be welcome, both to buyers and to the financial markets . …a junior miner producing high quality and clean boron mineral concentrates fro
Slide 47: Erin’s opportunity – industry experts
Erin’s opportunity – industry experts “Any new production on the market would be of significant interest to investors. …borates tend to be a high margin industry, the keys are B2O3 grade, minability, proximity to infrastructure, and arsenic concentrations. Borates are an important mineral group for
Boron One Holdings — Investor Presentation (April 2023) on 6ix