Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Q3 2022 Earnings Presentation
23 slides from Euro Manganese's earnings presentation, Aug 17, 2022
Slide 1: Third Quarter 2022 Update
For personal use only THIRD QUARTER 2022 UPDATE Poised to support Europe’s Energy Transition August 15, 2022
Slide 2: Forward-Looking Statements and Risks Notice
Forward-Looking Statements and Risks Notice Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and For personal use only information involve known and unknown risks, uncert
Slide 3: Agenda & Speakers
Agenda & Speakers For personal use only Agenda Speakers 1. Overview Dr. Matthew James Martina Blahova President & CEO CFO 2. Quarterly Highlights 3. Financial Position 4. Feasibility Study Results 5. Project Finance 6. Life Cycle Assessment Results 7. Next Steps / 2022 Catalysts 8. Outlook 9. EMN Va
Slide 4: Company Overview
COMPANY OVERVIEW Battery materials company poised to be a leading high-purity manganese producer For personal use only Set to become Europe’s primary producer of high-purity manganese products Strategically located in heart of world’s fastest-growing EV battery market Positioned to support the shift
Slide 5: Q3 Highlights
QUARTERLY UPDATE Q3 Highlights Delivered several significant milestones; remaining 2022 catalysts on-track For personal use only Released positive Feasibility Study Arrival of demonstration plant in Europe • Robust base case economics validate feasibility of the • One of two shipments unloaded in Ha
Slide 6: Q3 2022 Financial highlights and position
QUARTERLY UPDATE Q3 2022 Financial highlights and position Fully funded to FID and ~12 months of corporate G&A For personal use only Cash Balance – April 1, 2022 C$ 32.1 M Advancing the feasibility study and other operating costs (C$ 3.1 M) Demonstration plant under construction (C$ 0.5 M) Deposits
Slide 7: Feasibility Study
FEASIBILITY STUDY Still picture from the Feasibility Study 3D model For personal use only 7
Slide 8: Resources converted to Reserves with 98.4% classified in Proven category
FEASIBILITY STUDY Resources converted to Reserves with 98.4% classified in Proven category Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adapted by CIM Council, as For personal use only amended, which are materially identical to the JORC Code. Ch
Slide 9: Production profile over 25-year project life
FEASIBILITY STUDY Production profile over 25-year project life Commissioning in 2026; 2027 ramp up leading to stable production over life of project For personal use only Chvaletice HPEMM/HPMSM Production T ‘000s % Mn 7.98 7.79 125 7.41 7.44 7.63 8 7.29 105 100 100 100 100 100 7 6 85 65 5 65 4 45 3
Slide 10: Project capital costs include a robust contingency
FEASIBILITY STUDY Project capital costs include a robust contingency Capex figure reflects post-COVID supply chain environment For personal use only Capital Cost Breakdown ($M) $757.3 Robust +$100M contingency (includes $78M contingency and 78.4 $25M of growth capital on direct costs). Contingency 4
Slide 11: Project operational costs based on current cost environment
FEASIBILITY STUDY Project operational costs based on current cost environment Energy and reagents constitute ~68% of operational costs For personal use only Operational Costs ($/t of Plant Feed) $214.5 19.8 Royalty, freight & insurance, selling Reagents and energy account for ~30% and ~38% of opex 9
Slide 12: Key highlights: strong cashflow and margins for years to come
FEASIBILITY STUDY Key highlights: strong cashflow and margins for years to come ($ in USD) Base Case* Upside Case (CPM Group Price Forecast) For personal use only NPV 8% IRR Mn Production NPV 8% IRR Mn Production $1.34B 22% 48ktpa $1.79B 24% 48ktpa Net Present Ungeared, (100Kt HPMSM Net Present Unge
Slide 13: Project is attractive for a variety of potential financial partners
PROJECT FINANCE Project is attractive for a variety of potential financial partners Together with Stifel, EMN is exploring multiple pools of debt capital For personal use only European Institutions Commercial Banks ESG Funds Export Credit Agencies Customers/OEMs EBRD – one of EMN’s Inbound expressio
Slide 14: Project of strategic importance to Europe with exceptional ESG benefits
ESG CREDENTIALS Project of strategic importance to Europe with exceptional ESG benefits Project delivers wide-ranging benefits for all stakeholders For personal use only Uniquely positioned to provide secure, traceable and responsibly produced supply of high-purity manganese products • Chvaletice or
Slide 15: Life Cycle Assessment confirms benefits of remediating historic tailings site
ESG CREDENTIALS Life Cycle Assessment confirms benefits of remediating historic tailings site Using 100% renewable electricity reduces the Project’s carbon footprint by 50% For personal use only Target Scenario: Baseline Scenario: Renewable Electricity Czech Electrical Grid Mix HPEMM HPMSM HPEMM HPM
Slide 16: Permitting & next steps
OUTLOOK Permitting & next steps On track to deliver final investment decision by H2 2023 For personal use only H2 H1 H2 2024 2025 2026 2022 2023 2023 Permitting ▪ Submit ESIA ▪ Submit land ▪ Permitting - - ▪ Operational planning & complete permits construction permit Project ▪ Project ▪ Project ▪ Fi
Slide 17: 2022 Key Catalysts; on schedule to deliver
OUTLOOK 2022 Key Catalysts; on schedule to deliver Catalyst Status For personal use only Feasibility Study and EPCM ▪ Publication of Feasibility Study Highlights ✓ Complete ▪ Filing of Feasibility Study on SEDAR & ASX Expected Q3 ▪ Commencement of EPCM tender process Expected Q3 Pilot Plant and Demo
Slide 18: 2022 Key Catalysts continued
OUTLOOK 2022 Key Catalysts continued For personal use only Catalyst Status Financing and Offtake Contracts ▪ Appointment of project financial advisor ✓ Complete ▪ Negotiation of customer offtake contracts Ongoing, initial contracts anticipated in Q4 Environmental, Social & Governance ▪ Publication o
Slide 19: High-purity Mn at an inflection point; EMN well-positioned to benefit
OUTLOOK High-purity Mn at an inflection point; EMN well-positioned to benefit Battery manufacturer Macro roadmap factors aligning to drive showing high demand for manganese high-purity chemistries manganese (NMx, & inbound LMNO interest & NM) in EMN’s products For personal use only 1. Development of
Slide 20: Euro Manganese's Value Proposition
WHY INVEST Euro Manganese’s Value Proposition For personal use only Western provider of fully-traceable, responsibly-produced, low-carbon high-purity mn products for the EV industry Privileged Assets Core Competencies Potential for Growth Strategic • Location (near • Processing of HPMn • Western-foc
Slide 21: For personal use only
For personal use only Dr. Matthew James President & CEO 604-681-1010 info@Mn25.ca www.Mn25.ca TSXV: EMN ASX: EMN OTCQX: EUMNF Frankfurt Stock Exchange: E06
Slide 22: Notes to Mineral Reserve Statement
Notes to Mineral Reserve Statement 1. Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM For personal use only Council, as amended, which are materially identical to the JORC Code. 2. The Mineral Resource is inclusive of the Mineral Res
Slide 23: Compliance Statements
Compliance Statements Competent and Qualified Persons Statement For personal use only 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 persons in accordan