Highrock Resources Ltd. · CSE:HRK
Highrock Resources — Investor Presentation (January 2024)
28 slides from Highrock Resources's investor presentation, January 2024
Slide 1: Highrock Resources Investor Presentation
HighRock CSE:HRK Highrock Resources Investor Presentation January 2024
Slide 2: Disclaimer
Disclaimer This presentation contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, future p
Slide 3: Agenda
Agenda • Investment Highlights • Intersection of megatrends ○ Trend 1 : Decarbonization ○ Trend 2 : Deglobalization ○ Trend 3 : ESG Investing • Why now? The Commodities Cycle Opportunity • The Highrock Team • Highrock Capital Structure
Slide 4: Minerals for the future
HighRock Minerals for the future
Slide 5: Investment Highlights
HighRock Investment Highlights Newly listed company with tight share structure; high 1 upside potential for continued growth Opportunistically acquisitive; ideal time to acquire 2 top quality assets at significant discounts Agenda: Investment HIghlights Uniquely positioned to take advantage of globa
Slide 6: Intersection of three global megatrends
HighRock Highrock is uniquely positioned for growth at the intersection between three global megatrends Energy Transition Electrification Agenda: Intersection of Megatrends HighRock ESG Investing Deglobalization High integrity Energy jurisdictions security/reshoring supply chains
Slide 7: Clean energy deployment to supercharge critical minerals demand
Energy transition HighRock Rising deployment of clean energy technologies is set to supercharge demand for critical minerals 4x increase Agenda: Trend 1 - Decarbonization Source: IEA (2021), The Role of Critical Minerals in Clean Energy Transitions, Sustainable Development Scenario Includes chromium
Slide 8: EV batteries, renewables and grid drive demand increase
Energy transition HighRock EV batteries, renewables and grid upgrade drive multiples of demand increase for all mineral types Agenda: Trend 1 - Decarbonization 3 6 27 28 25 X 29 Li C Co Ni Mn RE Cu Lithium Graphite Cobalt Nickel Manganese Rare Earths Copper 6.941 12.011 58.933 58.6934 54.94 X 63.546
Slide 9: Demand exceeds supply, pressuring commodity prices
Energy transition HighRock Demand exceeds supply due to supply constraints creates pressure for increasing commodity prices Supply demand forecast for select minerals, Mt Agenda: Trend 1 - Decarbonization 29 3 27 28 Cu Li Co Ni Copper Lithium Cobalt Nickel 63.546 6.941 58.933 58.6934 Source: IEA ana
Slide 10: China dominates rare earths, nickel and lithium processing
Deglobalization HighRock China dominates rare earths production as well as nickel and lithium processing capacity 80% 70% 65% 60% World’s lithium World’s cobalt World’s rare Of Indonesia’s processing processing earths foreign direct Agenda: Trend 2 - Deglobalization capacity production investment in
Slide 11: Energy supply chain security and reshoring is top priority
Deglobalization HighRock As the west and east decouples, energy supply chain security and reshoring is top priority USD $250 million in Defense Production Canadian Critical Minerals Infrastructure Strategic Innovation Fund with CAD $1.5 Act (DPA) funding for U.S. and Canadian Fund with CAD $1.5 bill
Slide 12: Canada has abundant cobalt, graphite, lithium and nickel
Deglobalization HighRock Canada is the only western nation that has an abundance of cobalt, graphite, lithium, and nickel Agenda: Trend 2 - Deglobalization Source: The Canadian Critical Minerals Strategy
Slide 13: Production from low governance or high emissions regions
ESG scrutiny HighRock Majority of current production come from regions with low governance scores or high emissions intensity Agenda: Trend 3 - ESG Investing Source: World Bank (2020), IEA (2020).
Slide 14: North American mines in areas of low water stress
ESG scrutiny HighRock North American copper and lithium mines remain in areas of relatively low water stress Location of copper and lithium mines and water stress levels, 2020 Agenda: Trend 3 - ESG Investing Source: IEA (2020).
Slide 15: Analysts bullish on commodities for 2024
Commodities cycle HighRock Majority of analysts are bullish on commodities for 2024, with some even predicting a supercycle Analyst Sentiment 2024 Prediction Positive Gold can provide protection from geopolitical risk and some commodities can hedge against inflation. Positive We still like precious
Slide 16: Solid management team
Solid management team HighRock Transaction oriented team with solid track record Derrick Dao P.Eng Mr. Dao is CEO of Highrock Resources with significant international corporate development, M&A and capital markets experience in the natural resources sector. CEO Mr. Dao is founder of several high gro
Slide 17: New vehicle and tight capital structure
Growth value HighRock New vehicle and tight capital structure is well positioned for opportunistic mineral acquisitions Capital Structure, Jan 2024 Market Capitalization (at Jan 1, 2024) CAD $924k @ $0.07/share Shares Issued and Outstanding 13,205,001 Common Shares Warrants 700,000 @ $0.10 Options 3
Slide 18: Uranium Focus
HighRock CSE:HRK Uranium Focus
Slide 19: Favour commodities like uranium with multiple value drivers
HighRock We favour commodities like uranium that are supported by multiple value drivers Supply crunch Structural underinvestment Uranium Geopolitical Demand pull constraint Decarbonization Deglobalization
Slide 20: Uranium supply demand gap is widening
Uranium supply demand dynamics HighRock The uranium supply demand gap is widening; with both increasing demand and dwindling supply Global uranium supply demand, million pounds U3O8 Demand call to triple nuclear capacity by 2050 - COP28 36M lbs Uranium production shortfall 2024 Demand - high case De
Slide 21: Uranium production is concentrated and susceptible to disruption
Uranium supply HighRock Uranium production is concentrated and susceptible to disruption and eventual depletion Global uranium production by company, 2022 +19% Increase in Kazatomprom sulphuric acid intensity (from 80t/tU to 95 t/tU) 2023-2025, implying resource depletion* -9% Production target cut
Slide 22: China and Russia influence over Kazakhstan supply
Geopolitical considerations on supply HighRock China and Russia have an outsized influence on Kazakhstan which produces more than 40% of supply 50+% 60% 49% 26% Of Kazatomprom’s Of future Kazakh Rosatom equity stake Control over 2023 asset book production held by in Budenovskoye, Kazakhstan’s uranium
Slide 23: U.S. close to banning Russia uranium imports
Geopolitical considerations on supply HighRock The U.S. is close to banning Russia uranium imports as efforts continue to reshore US uranium supply chains July July Dec 2024 2023 2023 2023 ADVANCE Act Nuclear Fuel Security Act Prohibiting Russian NDAA 2024 signed (Introduced) (Introduced) Uranium Im
Slide 24: Growing demand as support for nuclear power increases
Uranium demand HighRock Growing demand as support for nuclear power increases exponentially 170 nuclear reactors planned and currently under construction globally 3X Global pledge to triple nuclear energy capacity by 2050 by more than 20 countries at COP28 <10% Of US nuclear fuel demand is met domes
Slide 25: AI increases need for reliable base load power
Uranium demand HighRock Emerging applications for AI dramatically increases the need for reliable base load power Estimated energy consumption for AI powered search, Wh Global AI related electricity 9x increase consumption to surpass 130TWh by 2027, exceeding the annual consumption of Sweden Signing
Slide 26: North America favourable for uranium exploration and mining
Uranium project selection HighRock North America has favourable geology and conditions to focus for uranium exploration and mining Top 5 regions for Reasonably Assured Uranium Resources (>85% world total U resources) Regulatory Access to Localized support to Production local demand - Pledge Free tra
Slide 27: Uranium stocks have outperformed other asset classes
Uranium equities performance HighRock Uranium Stocks have outperformed other asset classes over last five years Uranium performance versus other equities Sprott Junior Uranium Miners ETF returns Source: Bloomberg and Sprott Asset Management. Data as of 07/31/2023. Uranium Miners are measured by the N
Slide 28: Uranium project pipeline
Uranium project pipeline HighRock Highrock has an extensive pipeline of projects across all major uranium camps that we are considering 8 option properties in the Athabasca basin 2 staked properties near Elliot Lake 2 private properties in Wyoming basin
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