Geomega Resources Inc. · TSXV:GMA
Geomega Resources — VRIC 2020
22 slides from Geomega Resources's conference presentation, January 2020
Slide 1: Developing a Rare Earths Hub in Quebec
Developing a Rare Earths Hub in Quebec VRIC Presentation January 2020
Slide 2: Forward Looking Statement
Forward Looking Statement Our presentation contains “forward-looking statements” not based on historical facts. Forward-looking statements express, as of the date of this presentation, our estimates, forecasts, projections, expectations and opinions as to future events or results. The forward lookin
Slide 3: Challenges of Critical Minerals
Challenges of Critical Minerals • What are the challenges in Critical Mineral deposits for juniors? • No Majors to be acquired by • Have to develop the deposit yourself • High risk of financing • Exposed to sharp drops in commodity prices (bubbles) • Often requires a new technology Developing a Rare
Slide 4: Challenges of New technologies
Challenges of New technologies • What are the challenges to developing new technologies? • Long R&D process • Black box approach – no credibility • Scale up is too aggressive • Cost overruns during construction • Most often is the challenging part of the business and not the mining portion So how is
Slide 5: Canada & Quebec Advantage
Canada & Quebec Advantage • What is Canada’s & Quebec’s advantage in Rare Earths? • Are our mining projects better than those in China, Africa or Australia? • Is our infrastructure better? • Is our labor cost cheaper? Cheap & Clean Energy Strong support for innovation Developing a Rare Earths Hub in
Slide 6: Quebec – North America's REE hub
Quebec – North America’s REE hub • ISR Technology to be used to establish Quebec as the clean and cost-efficient recycler of choice outside of China for NdFeB • Expand to recycling other secondary feeds of rare earths / specialty metals • Use ISR to refine REE mining concentrates • Use ISR on altern
Slide 7: Quebec – North America's REE hub
Quebec – North America’s REE hub • An operational clean REE recycling & refining industry will lead to: 1. Development of the REE mines of Quebec Montviel and several other projects are already well defined 2. Attract downstream processing Metal making and magnet manufacturing - energy intensive pro
Slide 8: Geomega's approach
Geomega’s approach Developing the ISR Technology to extract and refine REE Stage 1: • Lab scale development of the technology – completed • Adjust ISR to process REE magnets and perform a sequence of scale ups of 10x each to demonstrate the technology in mini-pilot – completed Stage 2: • Scale up RE
Slide 9: Geomega's approach
Geomega’s approach The gradual scale up has several advantages: 1. Reduces the technological risk of scaling up new and innovative processes 2. Reduces CAPEX and financial risk by starting from low volume & highest grade material available 3. Allows to establish cash flow to make the company less de
Slide 10: Geomega's ISR Technology
Geomega’s ISR Technology ▪ Proprietary technology ▪ Environmentally safe ▪ Small footprint ▪ Low CAPEX ▪ Recovery of main reagents > 95% ▪ No liquid effluent produced ▪ Iron oxide as product Developing a Rare Earths Hub in Quebec Page 10 | Geomega (GMA.V)
Slide 11: ISR Technology Demo Plant
ISR Technology Demo Plant FEED study Updated Economics - production of 1.5 tons per day Demo plant feed throughput 1.5 tpd / 8hr day Average grade of feed stock 30% TREO (Nd, Pr, Dy, Tb) Capital costs $2.6 MM Direct operating costs $3 / kg of TREO Targeted Sales $10 MM Target Profit Margin 20% Expan
Slide 12: Demo Plant Location
Demo Plant Location ▪ A brand-new industrial complex has been secured in Saint-Bruno-de- Montarville ▪ Strategic location for the first Rare Earth Magnet recycling operations in North America ▪ 30 minutes from Montreal ▪ 6 hours from Major North American cities (Boston, NY, Toronto) ▪ Within 30 minu
Slide 13: Upcoming Milestones
Upcoming Milestones 2019 2020 Debt / Offtake Results of Government Agreements Optimization of FEED Study Funding Pilot Plant Q2- Q3 Q4 Q1 Q1 Q1 H1 2020 Q3 Equity Selection of Start EPCM Plant Financing Demonstration Commissioning Complete Plant Location Feed Sourcing Contracts & Stockpiling Material
Slide 14: More Feed?
More Feed? 2018 Neodymium (NdFeB) magnet production – 160,000 tons ($11B US) • 15-30% waste in production = 24,000 to 48,000 tpy Electric Vehicles – Avg. 3 kg NdFeB per EV • 2018 sales – 2M EV = 6,000 tonnes NdFeB • Avg. lifespan 8-10 years Wind Power – 3MW = up to 2 tons NdFeB • Annual growth – avg
Slide 15: Permanent Magnet Sector
Permanent Magnet Sector 9.4% avg annual growth from 2015 to 2024 Source: Walter T. Benecki LLC & Dr. John Ormerod Source: Roskill Developing a Rare Earths Hub in Quebec Page 15 | Geomega (GMA.V)
Slide 16: More Feed?
More Feed? Educating the upstream recycler • 100s to 1000s recycling & scrap companies in every country • Most don’t recognize the value of the magnet • Magnet is considered waste and discarded with the steel • Recycling industry always evolves towards new materials Government Support • Labeling as
Slide 17: Feed Overview
Feed Overview • Starting model is robust • Growth opportunity in magnet recycling is significant • Additional growth expected from other secondary sources Geomega Forecast vs Magnet Waste Market Value 2,000 $1,800M 1,800 1,600 1,400 1,200 $1,120M $ MILLIONS 1,000 800 600 400 200 $10M $30M $60M - FEE
Slide 18: REE Circular Economy
REE Circular Economy 3 different feeds 2 1 3 3 Developing a Rare Earths Hub in Quebec Page 18 | Geomega (GMA.V)
Slide 19: Where is the REE sector today?
Where is the REE sector today? Chinese monopoly results in: • Major geopolitical risk • Price volatility & supply uncertainty • Demand destruction • Difficult to establish new mines Source: Hobart M. King BUT, today’s reality is: • Low but stable prices • Drives demand growth • Positive for innovati
Slide 20: Summary
Summary • Established supply of magnet waste material • Deal in place with a trading house to sell our product • Low CAPEX • Low OPEX • Small Footprint • Clean Process • Finalizing financing and nearing production Developing a Rare Earths Hub in Quebec Page 20 | Geomega (GMA.V)
Slide 21: Share Structure
Share Structure Issued & Outstanding 100,749,514 Stock Options 6,252,500 37% 46% Warrants 10,153,886 Fully-Diluted 117,155,900 9% 4% Equity assets 16.8M shares of KTR.V 4% Management & Insiders Quebec Inst. Funds Strategic Investor Private Large Positions Retail Developing aaRare Developing RareEart
Slide 22: Developing a Rare Earths Hub in Quebec
Developing a Rare Earths Hub in Quebec Kiril Mugerman – President & CEO kmugerman@geomega.ca (450) 641-5119 ext 5653 www.geomega.ca Developing a Rare Earths Hub in Quebec Page 22 | Geomega (GMA.V)