Elementos Limited · ASX:ELT
Elementos — Ord Minnett East Coast Mining Conference 2022
35 slides from Elementos's conference presentation, Mar 30, 2022
Slide 1: Tin for an Electric Tomorrow – Investor Presentation
ASX:ELT TIN FOR AN ELECTRIC TOMORROW For personal use only Investor Presentation Ord Minnett | East Coast Mining Conference – 30 & 31 March 2022
Slide 2: Cautionary statement
Cautionary statement For personal use only The Optimisation Study (Study) referred to in this announcement has been undertaken for the purpose of assessing the technical and This release contains a series of forward-looking statements. The words “expect”, “potential”, “intend”, “estimate” and simila
Slide 3: Oropesa Optimisation Study delivers strong economics
Oropesa Optimisation Study Study Basis Tin Price US$32,500/t delivers strong economics1 For personal use only 6% Discount Rate 8% Discount Rate 10% Discount Rate A$338M A$292M A$252M • Oropesa Tin Project Optimisation Study confirms robust 1.25Mtpa project, capable of producing 3,350 tonnes of conta
Slide 4: Optimisation Study Results
Optimisation Study Results 2021 JORC Resources For personal use only 18.86Mt 0.40% Sn [75.4kt Sn] 82% of 2021 Mineral Resources included in Production Target US$30k/t (Using US$30k/t pit shell) Pit Shell Mined over 13yrs 82% conversion An additional ~2yrs of ASX:ELT mine-life possible when using US$
Slide 5: Optimisation Study Output
Optimisation Study Output For personal use only Life of Mine tonnage averages Annual ore mined Annual ore sorter feed Annual processing plant feed Annual tin concentrate (62%) Annual tin metal production 1,250,000tpa 1,250,000tpa 1,000,000tpa 5,400tpa 3,350tpa 8.8x ~13 years mine life Average LoM St
Slide 6: Life of Mine – Mining and Rehabilitation Animation
Life of Mine – Mining and Rehabilitation Animation For personal use only ✓ 1.5 years construction ✓ 13 years mining operations ✓ Full rehabilitation scheduled ✓ Basis of DFS ASX:ELT ✓ Basis of Mining Licence & elementos.com.au Environmental Approvals Video Link 6
Slide 7: Optimisation Study Costs
Optimisation Study Costs Key Costs Outputs C1, C2, C3 & All-In-Sustaining-Cost For personal use only (AISC) Summary Construction Capital US$86m Low capital Cost Area US$/tonne US$/tonne cost Clearing, Topsoil & Mining Sn Conc. $113 Sn Metal $180 Preparation Annual operating costs Mining $4,599 $7,36
Slide 8: Optimisation Study Results: Revenue, Profit and Valuation
Optimisation Key Revenue, Profit & Valuation (at US$32.5k/t Tin Price) Study Results For personal use only Annual gross revenue Total gross revenue US$108m US$1,242m Strong Annual EBITDA Total EBITDA NPV8% Revenues US$56m US$523m US$219m Strong Profitability A$M Project NPV - 100% basis, real, ungea
Slide 9: NPV8 Tin Price Sensitivity
2022 Optimisation Study NPV8 – Net Present Value Tin Price Sensitivity (100%, Real, Pre-Tax, 8%) For personal use only Study A$1,000M A$292m Tin price US$32,500/tonne (Scoping Study, 1 USD: 0.75 AUD) A$750M LME SPOT CASH PRICE A$500M A$586m Spot tin price US$42,650/tonne ASX:ELT (www.lme.com 25 Mar
Slide 10: Tin price has more than doubled in less than two years
Tin price has more than doubled in less than two years For personal use only • Tin Prices currently breaching all-time LME Cash Tin Price US$/tonne highs on London and Shanghai exchanges LME Tin Price 09-03-22 55k • Prices continue to rise this year on US$50,050 reduced global production, declining
Slide 11: Tin is the metal most impacted by electrification and green technologies
Tin is the metal most impacted by electrification and new green technologies For personal use only • Tin is key electrical contact in electronic circuits (solder) printed circuit boards and semi-conductors. It is the electric glue connecting key components. • Plays role in battery chemicals, battery
Slide 12: Tin market in deficit – global stockpiles at record lows
Tin market in deficit – Global tin stockpiles at all record lows For personal use only Visible Global Tin Stockpiles ‘000 tonnes1 • Tin market appears to be in 4th consecutive year of deficit • Approximately 6,100 tonnes drawdown in 2021 • 2021 tin market deficit has led to significant stockpile dra
Slide 13: Current Tin Market Supply – Existing Producers Stalling
Current Tin Market Supply Existing Producers Stalling Tin-in-Concentrate ‘000 tonnes1 Established global tin producers struggling to For personal use only maintain current production China Other Asia Indonesia Africa South America Rest of World Myanmar Major Global Tin Producers1 350 35% 300 30% 250
Slide 14: Tin market forecast to move further into deficits throughout 2020s
Tin market forecast to move further into deficits throughout 2020s For personal use only Refined Tin Forecasts ‘000 tonnes1 • 2021 Tin demand growth is estimated at ~7.2% (yoy) recovering from COVID-19 in 2020 (-1.6%) Refined Tin Demand (Q2 2021) to 2030 450 • Global tin demand is forecast to materi
Slide 15: Tin undersupply is now mainstream news
Tin undersupply is now mainstream news For personal use only ASX:ELT elementos.com.au 15
Slide 16: Environment, Social and Governance (ESG)
Environment, Social and Governance Elementos has committed to: (ESG) driving responsible development For personal use only • Establishing an ESG sub-committee as part of our Board, • Demonstrate compliance with European and OECD regulations that govern responsibly sourced tin, including the Tin Code
Slide 17: Oropesa Tin Project, Spain
Oropesa Tin Project, Spain For personal use only • Acquired in 2019 (100%) with more than US$26 million historically invested in project development. • Planned open-cut mining operation with conventional tin processing flow sheet producing tin concentrates to be shipped to smelters in Europe, Nth Am
Slide 18: Oropesa Secures Government Support
Oropesa Secures Government Support For personal use only ✓ Andalucían Government assigns Oropesa to its ‘Unidad Aceleradora de Proyectos’ (‘Project Accelerator Unit’) for accelerated and streamlined regulatory assessment and processing ✓ The Project Accelerator Unit will provide support to Elementos
Slide 19: Mineral Resource Estimate Update
Mineral Resource Estimate 2018 JORC Resources2 Update 2021 JORC Resources1 Update For personal use only Total Mineral Resource Total Total Elementos announced a 12.54Mt 50% 18.86Mt 50% increase in the Total 0.54% Sn [67.5kt Sn] 0.40% Sn [75.4kt Sn] Mineral Resource Estimate Measured & Indicated Mine
Slide 20: 2021 vs 2018 Mineral Resource Models
2021 vs 2018 Mineral Resource Models For personal use only 50% Total Mineral Resource Estimate 88% Measured & Indicated Mineral Resources ASX:ELT 263% elementos.com.au ‘Shallow’ tonnes (<100m RL) Note: hills displayed are physically behind (background) the Resource, not on top of it 20
Slide 21: Oropesa Project Remains Prospective for Additional Mineralisation
Oropesa Project Remains Prospective for Additional Mineralisation For personal use only Recent Geotechnical Drilling Results* • Drilling intersects tin, zinc and copper mineralisation in geotechnical diamond drilling • Results confirm continuity of tin mineralisation outside Mineral Resource area an
Slide 22: Feasibility Development Programs
Feasibility Development Programs For personal use only Elementos is progressing four 01 Pilot scale metallurgical test work feasibility development programs to 02 Geotechnical works program provide critical input data to its Oropesa Definitive Feasibility Study. 03 Hydrogeological (groundwater) work
Slide 23: Feasibility Development Programs: Pilot scale metallurgical test work
Feasibility Development Programs 01 Pilot scale metallurgical test work For personal use only • >95% completed by Wardell Armstrong (UK) • Tin concentrate dressing and tin floatation work currently underway • Flow sheet finalization for DFS is nearly complete • Variability test-work has commenced to
Slide 24: Feasibility Development Programs: Geotechnical works program
Feasibility Development Programs 02 Geotechnical works program For personal use only • Drilling Completed • Downhole televiewer logging and analysis completed • Geotechnical lab sampling and engineering assessment finalising • Slope stability design criteria reporting underway for DFS ASX:ELT elemen
Slide 25: Feasibility Development Programs: Hydrogeological works program
Feasibility Development Programs 03 Hydrogeological (groundwater) works program For personal use only • Onsite water pump tests and monitoring completed • Aquifer defined, favorable dewatering characteristics • Water modeling and dewatering assessment underway • On-tenement and local water sourcing
Slide 26: Oropesa Definitive Feasibility Study (DFS) commenced
Oropesa Definitive Feasibility Study (DFS) commenced For personal use only Updated Mineral Resource Estimate (delivered Nov-21) Optimisation Study (Scoping Study: Q1-22) • Completion of Resource drilling, modelling and estimation • Finalise the Basis of Design (BoD) for DFS • Confirm Throughput of P
Slide 27: Cleveland Tin Project, Tasmania
Cleveland Tin Project, Tasmania For personal use only • Cleveland Tin Project (100%-owned) located in mineral rich north-west Tasmania. • Operated as an underground mine by Aberfoyle Resources from 1968 to 1986 – demonstrated mining and metallurgical outcomes. • Significant endowment of tin-copper t
Slide 28: Historic Cleveland Underground Workings
Historic Cleveland Underground Workings Cleveland Tin Project Tin / Copper Resource For personal use only • Exploration Lease surrounded by existing critical infrastructure. • A Strategic Review of Cleveland Tin Project has commenced to re- assess the techno-economic possibilities of restarting the
Slide 29: Cleveland Tin Project – Drilling Underway
Cleveland Tin Project – Drilling Underway For personal use only • Five-hole diamond drill (1,350m) program underway at Cleveland to test for tin and copper mineralisation along strike and to the northeast of the historical tin mine • 2020 rock chip samples collected at surface contained visible sulp
Slide 30: Five investment catalysts
Five investment catalysts 05 For personal use only Unlock value from the 04 Cleveland Tin Project in Tasmania via drilling and project study development. Receive final Oropesa 03 environmental and Exploitation License permitting, Completion of Oropesa 02 Definitive Feasibility Study (DFS) & maiden J
Slide 31: Corporate overview
Corporate overview For personal use only Directors & Share price Market capitalisation Management $A0.82 $134.5m 14% JM Financial 29 Mar 2022 29 Mar 2022 6% 52 week high $0.85, low $0.25 Shares on issue Cash Terra Capital 3% 164.0m $3.9m TR Nominees 3% 14 Mar 2022 31 Dec 2021 McCusker Holdings Debt
Slide 32: Strong Leadership
Strong Leadership For personal use only Our team has extensive experience in the mining and resources sector with vast expertise in project acquisition and Andy Greig Joe David Brett Smith Non-Exec Chairman Managing Director Non-Exec Director development. ASX:ELT Andy retired from the Bechtel Group
Slide 33: Strong Leadership
Strong Leadership For personal use only Calvin Treacy Corey Nolan Non-Exec Director Non-Exec Director ASX:ELT Calvin has more than 20 years’ senior Corey is an accomplished public management experience in mining, company director whose 30-year career mining technology and manufacturing. in the resou
Slide 34: Disclaimer
Disclaimer For personal use only Forward-looking statements Competent Person Statement The information in the report to which this statement is attached that relates to mining and the Production This document may contain certain forward-looking statements. Such statements are only predictions, based
Slide 35: Get in touch
Get in touch For personal use only Joe David Elementos Limited Level 7, 167 Eagle Street Managing Director Brisbane Queensland 4000 +61 (0)7 2111 1110 Phone: +61 7 3212 6299 jd@elementos.com.au elementos.com.au
Elementos — Ord Minnett East Coast Mining Conference 2022 on 6ix