Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Investor Presentation (March 2023)
36 slides from Euro Manganese's investor presentation, Mar 23, 2023
Slide 1: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition INVESTOR PRESENTATION March 2023
Slide 2: Legal Disclaimer: Forward-Looking Statements and Risks Notice
LEGAL DISCLAIMER Forward-Looking Statements and Risks Notice For personal use only Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unkn
Slide 3: High-Purity Manganese 101
For personal use only High-Purity Manganese 101 MARKET OVERVIEW
Slide 4: Manganese is an essential raw material in most lithium-ion batteries
MARKET OVERVIEW Manganese is an essential raw material in most lithium- ion batteries For personal use only Nickel-Manganese-Cobalt (NMC) cathodes are currently the dominant chemistry in EV batteries with ~50% market share Batteries make up ~30% of the total cost of EVs ABOUT HIGH-PURITY MANGANESE I
Slide 5: Global manganese market: high-purity manganese is a niche product
MARKET OVERVIEW Global manganese market: high-purity manganese is a niche product For personal use only Only 1% of manganese mined globally is processed into a grade suitable for EV batteries Specialty Alloys 5
Slide 6: Global high-purity manganese production landscape
MARKET OVERVIEW Global high-purity manganese production landscape Supply currently dominated by China; project pipeline inadequate to meet forecasted demand For personal use only Supply Forecast • Only x2 new projects at Feasibility stage • Demand for HP Mn forecasted to surpass supply in 2024-2025
Slide 7: Industry tail winds benefitting high-purity manganese market
MARKET OVERVIEW Industry tail winds benefitting high-purity manganese market For personal use only Macro factors aligning to drive increased demand for high-purity manganese Continued growth of global EV Development of manganese- EU & US regulation supports 1 market 2 rich chemistries 3 localization
Slide 8: Lack of supply combined with increasing demand results in significant deficit
MARKET OVERVIEW Lack of supply combined with increasing demand results in significant deficit For personal use only Opportunity for HPMSM price to rise as supply vs demand deficit bites Global High-Purity Manganese Demand & Supply to 2031 Battery Metal Prices (2018-2023) 1,200 500 Global production
Slide 9: New EU Critical Raw Material Act an opportunity for EMN
MARKET OVERVIEW New EU Critical Raw Material Act an opportunity for EMN For personal use only Chvaletice Project likely to benefit from proposed legislation Manganese included as a strategic raw material • Manganese added to the list of critical raw materials and identified as a strategic raw materi
Slide 10: Who We Are
For personal use only Who We Are COMPANY & PROJECT OVERVIEW
Slide 11: Battery metals company set to be a leading producer of high-purity manganese
COMPANY OVERVIEW Battery metals company set to be a leading producer of high-purity manganese For personal use only Focused on delivering fully-traceable, responsibly-produced manganese for the EV industry Strategically located asset; sole manganese resource in the EU Positioned to support shift to
Slide 12: Chvaletice is a unique waste-to-value project
PROJECT OVERVIEW Chvaletice is a unique waste-to-value project For personal use only Involves reprocessing historical mine tailings to produce high-purity manganese Recycling • Historic tailings containing easily-treated manganese carbonate (1) • Well-defined mineral reserve of 27Mt @ 7.4% Mn with u
Slide 13: Flow sheet produces two high-purity manganese products: HPEMM & HPMSM
PROJECT OVERVIEW Flow sheet produces two high-purity manganese products: HPEMM & HPMSM For personal use only Robust process uses proven, conventional and commercial technologies; adheres to strict European environmental regulations 1 Raw tailings excavated and 2 Magnetic 3 Leaching and 4 Electrolysi
Slide 14: Project designed to deliver exceptional ESG benefits
PROJECT OVERVIEW Project designed to deliver exceptional ESG benefits For personal use only Wide-ranging benefits for all stakeholders #3 ORE Use of Best Available Technologies to Minimize Footprint STOCKPILE • Net positive environmental benefits from remediation of historic tailings • MoU to use 10
Slide 15: Chvaletice's products to have lowest CO2 footprint vs incumbent industry
PROJECT OVERVIEW Chvaletice’s products to have lowest CO2 footprint vs incumbent industry For personal use only Results of benchmarked LCA of high priority to customers and financiers HPEMM / HPMSM CO2 Emissions Comparison (Scope 1+2+3) CMP HPEMM 64% lower than China 20 17.1 Kg CO2 eq. per kg HPEMM/
Slide 16: Demonstration Plant installed and being commissioned
PROJECT OVERVIEW Demonstration Plant installed and being commissioned For personal use only Enables large-scale product samples on batch basis • Installation complete in two fully refurbished buildings • Commissioning on track for completion by end Q1 2023 • Customer samples expected Q2 2023 • Facil
Slide 17: Project has good cashflow and margins together with supply security for Europe
PROJECT ECONOMICS Project has good cashflow and margins together with supply security for Europe Stable production over 25-year project life, supported by 27 Mt reserve base For personal use only Feasibility Study Base Case Highlights ($ figures in USD) Feasibility Study Base Case Price Forecast for
Slide 18: Project operational costs based on cost environment in mid-2022
PROJECT ECONOMICS Project operational costs based on cost environment in mid-2022 For personal use only Energy and reagents constitute ~68% of operational costs Operational Costs ($/t of Plant Feed) $214.5 Opex 19.8 Royalty, freight, insurance • Reagents and energy account for ~30% and 38% of opex r
Slide 19: Project capital costs include robust contingency
PROJECT ECONOMICS Project capital costs include robust contingency For personal use only Capex figure reflects post-COVID supply chain environment Capital Cost Breakdown ($M) $757.3 Capex 78.4 • Robust +$100M contingency (includes $78M contingency and $25M Contingency of growth capital on direct cos
Slide 20: Superior nature of Chvaletice products demand price premium
PROJECT ECONOMICS Superior nature of Chvaletice products demand price premium For personal use only Product quality, ESG credentials and localization aspects deliver a price premium Unique Aspects of Chvaletice HPEMM & HPMSM Ex-Works China HPMSM Price vs. Forecasted European HPMSM Price High-purity
Slide 21: Permitting and next steps
PROJECT TIMELINE Permitting and next steps For personal use only On track to deliver final investment decision by H2 2023 H1 2023 H2 2023 2024 2025 2026 2027 DEMONSTRATION PLANT Customer samples & ongoing supply chain qualification Available for testing other feedstocks ENGINEERING, PROCUREMENT & CO
Slide 22: Chvaletice: Funding
For personal use only Chvaletice: Funding PROJECT FINANCE
Slide 23: Project financing strategy: mix of debt and equity
PROJECT FINANCE Project financing strategy: mix of debt and equity For personal use only Staged equity strategy; structured to reduce dilution Strategic Investment Private Offering Public Offering At project level, based on NAV At corporate level, based on ▪ EMN shareholders ▪ OEMs & key off-takers
Slide 24: First offtake term sheet announced; broader offtake tender process underway
PROJECT FINANCE First offtake term sheet announced; broader offtake tender process underway For personal use only Increasing attention on high-purity manganese; Auto OEMs continue to invest in projects to secure critical raw materials Overview of Verkor Offtake Term Sheet • Lithium • Outlines minimu
Slide 25: Our Growth Horizon: North America
For personal use only Our Growth Horizon: North America GROWTH OPPORTUNITY
Slide 26: Rationale for North American growth strategy
GROWTH OPPORTUNITY Rationale for North American growth strategy For personal use only Opportunity to supply pCAM/CAM plants under development in North America with locally-produced high-purity manganese • Demand for HP Mn in NA expected to reach >250Ktpa by 2031* • No current HP Mn processing capaci
Slide 27: Bécancour opportunity provides first-mover advantage in North America
GROWTH OPPORTUNITY Bécancour opportunity provides first-mover advantage in North America For personal use only Bécancour overview • Option agreement in place to purchase site (subject to outcome of due diligence) • Site due diligence complete on land parcel Bécancour land parcel • Scoping study near
Slide 28: Looking Forward
For personal use only Looking Forward OUTLOOK
Slide 29: 2023 Key catalysts
OUTLOOK 2023 Key catalysts For personal use only Demonstration Plant Status Production of on-spec products Expected Q1 Shipments to interested parties Expected Q2 EPCM for Commercial Plant Appointment of EPCM contractor Expected Q1 Completion of front-end engineering design (FEED) Expected H2 Land A
Slide 30: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition TSXV: EMN | ASX: EMN | OTCQX: EUMNF | Frankfurt Stock Exchange: E06 info@Mn25.ca | www.Mn25.ca
Slide 31: Executive leadership team
COMPANY OVERVIEW Executive leadership team For personal use only Track record of raising capital and delivering large-scale projects; deep high-purity manganese processing experience Matt James Martina Blahova James Fraser Fausto Taddei Andrea Zaradic Jan Votava President & CEO CFO VP Commercial Com
Slide 32: Euro Manganese capitalization
CORPORATE INFORMATION Euro Manganese capitalization Euro Manganese is a BC Company incorporated in 2014 and listed publicly in 2018; its head office is located in Vancouver For personal use only Ownership Structure at Feb. 21, 2023 TRADING SYMBOLS CORPORATE MEMBERSHIPS Total 402,669,227 TSX-V and AS
Slide 33: FQ1 2023 Financial highlights and position
FINANCIAL POSITION FQ1 2023 Financial highlights and position Fully funded to final investment decision and 2023 corporate G&A For personal use only Fully funded to complete: Cash Balance – October 1, 2022 C$21.6 • Demonstration plant commissioning and up to 1-year operation Completion of Demonstrat
Slide 34: Resources converted to Reserves with 98% classified in Proven category
RESERVE STATEMENT Resources converted to Reserves with 98% classified in Proven category For personal use only Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adapted by CIM Council, as amended, which are materially identical to the JORC Code. Chva
Slide 35: Notes to Mineral Reserve Statement
RESERVE STATEMENT Notes to Mineral Reserve Statement For personal use only 1. Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended, which are materially identical to the JORC Code. 2. The Mineral Resource is inclusive
Slide 36: Legal Disclaimer: Compliance Statements
LEGAL DISCLAIMER Compliance Statements For personal use only Competent and Qualified Persons Statement All production targets for the Chvaletice Manganese Project referred to in this presentation are underpinned by estimated Proven and Probable Reserves prepared by competent persons and qualified pe