Quantum Graphite Ltd · ASX:QGL
Quantum Graphite — Debt Investor Presentation (June 2023)
33 slides from Quantum Graphite's debt investor presentation, June 2023
Slide 1: Sunlands Power Green Bond Investor Presentation
CONDARY LOGO QUANTUM Sunlands Power GRAPHITE Quantum GraphiteSunlands - Power Sunlands Power Green Bond Investor Presentation June 2023 www.sunlandsco.com www.quantumgraphite.com
Slide 2: Disclaimer
Disclaimer This presentation includes certain statements that may be deemed forward-looking statements. All statements in these presentation materials (other than statements of historical facts) which address future production and revenues, reserve potential, exploration activities and events or dev
Slide 3: Transaction Summary: Group Structure
Transaction www.sunlandsco.com www.quantumgraphite.com Summary Group Structure • Sunlands Power proposes the issuance of a LUXEMBOURG MRI Offtake Agreement AUSTRALIA senior secured Green bond in the amount of US$ 135m with a final maturity of Q3 2030 Lux SE Quantum MRI Offtake $$$ Euro MTF Graphite
Slide 4: Transaction Summary: Key Contractual Arrangements
Transaction www.sunlandsco.com www.quantumgraphite.com Summary Key Contractual Arrangements • Every facet of operations will be subject to EPC Construction Contract Constructor Bondholders first tier technical and professional oversight • Proposed insurance cover structure includes: Bond proceeds Bo
Slide 5: Agenda
Agenda 01 Company & Shareholder Overview 02 Green Bond Terms 03 2030 Global Sustainability Strategy 04 Market Overview PRIMARY LOGO QUANTUM 05 Appendices GRAPHITE SECONDARY LOGO QUANTUM GRAPHITE
Slide 6: Agenda
Agenda 01 Corporate 01 Company & Shareholder Overview 02 Green Bond Terms Critical Minerals Technology 03 2030 Global Sustainability Strategy 04 Market Overview PRIMARY LOGO 05 Appendices QUANTUM GRAPHITE Proprietary Supply Chain SECONDARY LOGO QUANTUM GRAPHITE Page // 6
Slide 7: Overview: Company & Shareholders
Overview: Company www.sunlandsco.com www.quantumgraphite.com & Shareholders Overview of Company & Shareholders • Sunlands Power Pty Ltd is an Australia company established as a 50/50 joint venture between The Sunlands Energy Company (SEC)., Pty Ltd, and Quantum Graphite Limited (ASX:QGL) • QGO is a
Slide 8: Sunlands Power Group - The Only LDES Solution
Overview: Company PRIMARY LOGO www.sunlandsco.com www.quantumgraphite.com & Shareholders QUANTUM SUNLANDS POWER GROUP - The Only LDES Solution SECONDARY LOGO GRAPHITE CRITICAL MINERALS PARTNER TECHNOLOGY PARTNER Critical Minerals & Advanced QUANTUM GRAPHITE Thermal Technologies • Sunlands Power comb
Slide 9: Proprietary Supply Chain
Overview: Company www.sunlandsco.com www.quantumgraphite.com & Shareholders Proprietary supply chain • Entirely proprietary LDES technology and delivery platform • Internalised critical minerals supply underwrites TES Graphite Cell fulfillment including manufacture and deployment • Supply chain begi
Slide 10: Agenda
Agenda 02 Bond Terms Overview of Structure and Terms 01 Company & Shareholder Overview Offtake Arrangements 02 Green Bond Terms 03 2030 Global Sustainability Strategy 04 Market Overview Cashflow Summaries 05 Appendices Credit Enhancements
Slide 11: Green Bond Terms
Green Bond Terms General Overview of Proposed Structure and Terms Issuer LDES Finance Trust Format Fixed rate, Reg S, Senior Secured Issuer Rating/ Unrated. Insurance Package AA rated insurance package including coverage of marine cargo (incl. marine cargo DSU), construction, commissioning and 2 yea
Slide 12: Binding Offtake Agreement
Green Bond www.sunlandsco.com www.quantumgraphite.com Terms Binding Offtake Agreement • Binding off-take agreement executed with MRI Trading AG, leading Global Metals and Mining, Swiss based Flake Long Term Demand Forecast - Approximately Doubling Every 5 Years trading group 100% of Uley 2 Stage 1 (
Slide 13: Binding Offtake Agreement - Unprecedented Price Upside for Flake Graphite
Green Bond Terms Binding Offtake Agreement - Unprecedented Price Upside for Flake Graphite Commodity Prices (US$/t) gC 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E LT 94-97% +32 mesh 1,682 1,754 1,878 1,800 1,913 2,138 2,363 2,250 2,373 2,436 2,500 2,025 94-97% +50 mesh 1,450 1,506
Slide 14: Robust Free Cashflows - Base Case (2019 DFS Graphite Prices)
Green Bond Terms Robust Free Cashflows – Base Case (2019 DFS Graphite Prices) • Free cashflow after debt service is robust • Assumption is conservatively based on a 2019 DFS-level basket price of US$919.00 • Revenue based on all production sold under binding offtake and Sunlands Power manufacturing
Slide 15: Robust Free Cashflows - Base Case (Consensus Forecast Prices)
Green Bond Terms Robust Free Cashflows - Base Case (Consensus Forecast Graphite Prices) • Revenues and free cashflow after debt service is very strong • Assumption is based on consensus forecasts • Revenue based on all production sold under binding offtake and Sunlands Power manufacturing contributi
Slide 16: Robust Free Cashflows - Moderate Case (Consensus Forecast Prices)
Green Bond Terms Robust Free Cashflows - Moderate Case (Consensus Forecast Graphite Prices) • Revenues and free cashflow after debt service is extremely strong • Assumption is based on a consensus forecasts for Graphite Prices • Revenue based on all production sold under binding offtake and more agg
Slide 17: Credit Enhancements
Green Bond www.sunlandsco.com www.quantumgraphite.com Terms Credit Enhancements Interest Cover and EBIT 15 90000000 • Revenues to repay the bond directly sourced from the MRI Trading AG Offtake Agreement 13 80000000 • Proposed Security consists of first ranking mortgages 70000000 11 granted over all
Slide 18: Credit Enhancements - Structural Features
Green Bond www.sunlandsco.com www.quantumgraphite.com Terms Credit Enhancements – Structural Features Security Stack Values Key structural features include: 1,200,000,000 • Standard lender security package including security on all 1,000,000,000 key project contracts, tangible assets accounts and ex
Slide 19: Risk Mitigation (Construction & Operations)
Green Bond Terms Green Bond – Extensive Level of Risk Mitigation (Construction & Operations) Risk category Risk Event Mitigant Construction Construction delay • Early engagement with key suppliers • 2 year’s DSU Insurance with AA rated Credit Cost overrun • Cost Contingencies Operation Operational p
Slide 20: Risk Mitigation (Finance & Legal)
Green Bond Terms Green Bond – Extensive Level of Risk Mitigation (Finance & Legal) Risk category Risk Event Mitigant Financial Supply interruptions or reserve issues • JORC reserves alone will service and repay debt Counterparty risks • Offtaker MRI is a financially strong international trader • A R
Slide 21: Agenda
Agenda 03 01 Company & Shareholder Overview Large-Scale Decarbonisation 02 Green Bond Terms with Critical Minerals 03 2030 Global Sustainability Strategy 04 Market Overview 05 Appendices Green Bond Framework
Slide 22: 2030 Sustainability Strategy: Large-Scale Decarbonisation with Flake Graphite
2030 Sustainability Strategy Large-Scale Decarbonisation with Flake Graphite The power sector is one of the biggest emitters of greenhouse gases, accounting for about one-third of total emissions. According to the International Energy Agency (IEA) the power sector emits some 12.3 gigatonnes of CO2 e
Slide 23: Specialised use of critical minerals to achieve large-scale decarbonisation
2030 Sustainability Strategy Specialised use of critical minerals to achieve large-scale decarbonisation Sunlands Power core sustainability drivers Optimisation of Critical Minerals use • global action towards a low carbon economy • The use of critical minerals to decarbonise the grid network maximi
Slide 24: LDES + Synchronicity
2030 www.sunlandsco.com www.quantumgraphite.com Sustainability Strategy LDES + Synchronicity VRE + LDES + Synchronicity = 0 CO2 Sunlands Co. LDES Technology - Utilising Natural Flake • Connecting and distributing renewable energy to Deliver the Ultimate Decarbonisation++ Solution within a low to zer
Slide 25: Installation of TES Graphite Cells at 500MW Power Plant
2030 www.sunlandsco.com www.quantumgraphite.com Sustainability Strategy Example: Installation of TES Graphite SUNLANDS POWER GROUP - TES Graphite Cell Installed within 500MW Coal-Fired Thermal Power Plant Cells at 500MW Power Plant BEFORE Installation of TES Graphite Cell (100% Coal) Coal Consumptio
Slide 26: Green Bond Framework
2030 Sustainability Strategy Green Bond framework Green Bond Use of Proceeds Sustainability at Sunlands Power • To ensure alignment with our strategy, the • Sunlands Power is committed to sustainability Company has highlighted several key steps and recognizes its role as a leading company in includi
Slide 27: Agenda
Agenda 04 01 Company & Shareholder Overview Market Demand for storage & retrofitting 02 Green Bond Terms coal-fired power plants 03 2030 Global Sustainability Strategy 04 Market Overview PRIMARY LOGO Market Demand Anode for 05 Appendices Li-ion batteries QUANTUM GRAPHITE SECONDARY LOGO QUANTUM GRAPH
Slide 28: Anode demand for natural flake graphite is forecast to soar
Market Overview Anode demand for natural flake graphite is forecast to soar • Anode raw material synthetic to natural flake market • QGO’s Uley Mine has a history as a leading provider of share currently set at 2:1 high grade coarse flake graphite product to end user • Over the next 12-18 months nat
Slide 29: LDES market potential demand for flake graphite is massive
Market Overview LDES market potential demand for flake graphite is massive Demand for retrofitting coal-fired power plants • Eight EU countries plan to phase out coal by 2030 • Australia has approximately 10GW generation capacity • Each of these markets represent an even larger of coal-fired power p
Slide 30: Appendices
Appendices 05 01 Company & Shareholder Overview Quantum Graphite Limited 02 Green Bond Terms Board and Management 03 2030 Global Sustainability Strategy 04 Market Overview Sunlands Power 05 Appendices Board and Management
Slide 31: Quantum Graphite Limited Board and Management
Quantum Graphite Limited Board and Management Brunio Ruggiero Sal Catalano Michael Wyer David Trimboli Rochelle J. Pattison CHAIRMAN MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR COMPANY SECRETARY Founder of Lycopodium Founder of the Chimaera Experienced banking and Formerly long s
Slide 32: Sunlands Power Board and Management
Sunlands Power Board and Management David Trimboli Quentin Law CHAIRMAN HEAD OF BUSINESS DEVELOPMENT Formerly long serving senior coal trader Quentin has around 30 years of investment at Glencore International and a key and corporate finance experience through member of the Glencore International te
Slide 33: Disclaimer
Disclaimer This presentation includes certain statements that may be deemed forward-looking statements. All statements in these presentation materials (other than statements of historical facts) which address future production and revenues, reserve potential, exploration activities and events or dev
Quantum Graphite — Debt Investor Presentation (June 2023) on 6ix