Lomiko Metals — Investor Presentation (June 2023)
53 slides from Lomiko Metals's investor presentation, June 2023
Slide 1: Developing a strategic stockpile of critical mineral graphite and lithium properties
Developing a strategic stockpile of critical mineral graphite and lithium properties in Quebec for a North American climate success story June 2023
Slide 2: Disclaimer
DISCLAIMER This presentation is not a prospectus, offering memorandum or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscr
Slide 3: Land Acknowledgement
Land Acknowledgement We would like to begin by acknowledging that the land/projects where we operate are located within the traditional land of the Algonquin Anishnaabeg and Cree Eeyou Istchee Peoples. Our vision is to embrace Indigenous people and Indigenous values within our projects to develop a
Slide 4: A people-first critical minerals operator of choice in Quebec
A people-first critical minerals operator of choice in Quebec Strategic Stockpile of Graphite 3.0mt of in situ Indicated Scale Opportunity in graphite and 0.7mt of Inferred Lithium at La Loutre - PEA stage and Leading with Earning 49% moving to PFS Vision and Values ownership in Bourier Except
Slide 5: Most prospective graphite belt in North America
Most prospective graphite belt in North America La Loutre and Laurentides claims • 1,518-line kilometers of heliborne magnetic and time-domain electromagnetic surveys completed over the six Grenville graphite properties • 55 targets prospective for graphite mineralization identified • Targets to be
Slide 6: Lithium exploration on massive claim package on Nemaska lithium corridor
Lithium exploration on massive claim package on Nemaska lithium corridor Bourier Property 6
Slide 7: Battery metals catalysts in 2023
Battery metals catalysts in 2023 Canada and US Canadian critical minerals are considered domestic in US US IRA (Inflation Reduction Act): 80% of all raw materials produced or recycled in North America New demand The world's top automakers are planning to spend nearly US$1.2 trillion through 2030 - 2
Slide 8: 97 graphite mines needed to fuel the EV revolution
97 graphite mines needed to fuel the EV revolution How many mines do we need? • Benchmark forecasts how many mines need to be built in the short time frame to keep up with exceptional volumes of demand needed for key raw materials expected by 2035 • La Loutre is positioning itself for success as a r
Slide 9: Natural flake graphite is the most important component in all EV batteries
Natural flake graphite is the most important component in all EV batteries on the market today • 95% of the anode is made of graphite and it is the heaviest mineral in the EV battery making it costly and unsustainable to import into North America • Lomiko is developing the strategic stockpile of cho
Slide 10: Graphite shortfall starting in 2023
Graphite shortfall starting in 2023 Shortfall to increase to 8Mt by 2040 Projected Anode Demand (Mt) Graphite Market Balance - Projected Demand and Supply (Mt) 12,000,000 9,000,000 8,000,000 DEMAND IS EXPECTED TO 10,000,000 EXCEED SUPPLY BY 2023 – 7,000,000 AND CONTINUE BEYOND 6,000,000 8,000,000 La
Slide 11: Lomiko can provide 10% of North American graphite
Lomiko can provide 10% of North American graphite Massive increase in battery plant capacity • Current announced capacity at 769 GWH • New plants account for 800,000 of SPG (“Spherical Graphite”) per year, or 1.6Mt pa of graphite concentrate per year Source: Benchmark and North American Battery Init
Slide 12: www.lomiko.com
www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 12
Slide 13: La Loutre graphite project close to infrastructure with great geological setting
La Loutre graphite project close to infrastructure with great geological setting • Preliminary Economic Assessment ("PEA") - 2021 • Completed updated NI-43-101 resource April 2023 • Completed PFS level Metallurgical testing February La Loutre Graphite Project 2023 • Completed Spherical graphite test
Slide 14: La Loutre: PEA establishes a critical path ahead
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking PEA details Carmin Zone • Two known deposits currently being explored: EV Zone and Battery Zone • LOM plant production of 21.8 Mtonnes of mill feed at EV Zone 6.78% Cg diluted Battery Zone • Graphite concentrate
Slide 15: La Loutre: Carmin Acquisition
La Loutre: Carmin Acquisition Carmin Carmin Acquisition – historic PFS Zone A The original historical estimate contemplated certain assumptions where the mineral resources are stated as Proven and Probable resources for Sites A and B. • Site A: total 1.55 Mt at 10.0% Cg Proven: 1.47 Mt at 10.29% Cg
Slide 16: La Loutre: PEA Layout – great base to build on
La Loutre: PEA Layout – great base to build on Mine layout and costs – PEA • Waste rock and tailings co-disposed • Efficient site water management with WASTE ROCK & no wet tailings EV ZONE CODISPOSAL PILE • Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits
Slide 17: La Loutre Update Resource Estimate: 184% Increase in Indicated Tonnage
La Loutre Update Resource Estimate: Achieving 184% Increase in Tonnage in the Indicated Mineral Resources La Loutre Resource Estimate (Effective Date: March 31, 2023) - PFS Source: InnovExplo March 2023 2023 MRE 2021 MRE Deposit EV Battery TOTAL EV Battery TOTAL Cut-off (%) Cg 1.5 1.5 1.5 1.5 1.5 1.
Slide 18: Operational milestones
Operational milestones Studies completed Completed 13,000m+ of drilling at La Loutre with exceptional results Completed NI-43-101 mineral Resource for La Loutre Completed 12 months of environmental baseline studies Completed pre-feasibility metallurgical test program – optimized flowsheet
Slide 19: La Loutre EV Zone plan view
La Loutre EV Zone plan view • Completed 53 drill holes or 9,025 meters Section 1-1 • South-east and north-east end of the EV Zone remain open to the south and east Section 2-2 19
Slide 20: La Loutre Battery Zone plan view
La Loutre Battery Zone plan view • Completed 26 holes in Battery South for a total Section 1-1 of 4,076 m • Open on the South End Section 2-2 20
Slide 21: La Loutre Graphite – PFS level testing size distribution
La Loutre Graphite – PFS level testing size distribution Graphite usage is dependent on the flake size • Developed and optimized PFS level flotation plant flowsheet -LCT testing achieved 94.7% recovery and 98.6% Cg grade! • Reconciled grades for LCT testing equal to 99.1%Cg! • Bigger flakes includin
Slide 22: La Loutre metallurgical program – 99.99% purified graphite
La Loutre metallurgical program – 99.99% purified graphite content in LL SPG & next steps • Completed value added testing with ProGraphite (micronization, spheroidization and purification: • Proved that La Loutre material is suitable for Spherical Graphite production • Achieving excellent 99.99%Cg p
Slide 23: La Loutre 2023 catalysts subject to financing
La Loutre 2023 catalysts subject to financing Q4 2023 Q3/Q4 2023 Q2/Q3 2023 Pre- Q1/Q2 2023 Battery feasibility SPG creation Trials Study purification Feb 2022 MRE & testing and Updated coating Technical Report SPG to anode Metallurgical NI-43-101 tests flotation testing results – PFS level Flow she
Slide 24: Corporate budget requirements for La Loutre
Corporate budget requirements for La Loutre The regional exploration program and Bourier work is being funded with Canadian Flow-Through financing PLANNED COMPLETED To PFS for La Loutre Cost ($M) Phase 1 at La Loutre Cost ($M) Mining Plan $0.3 Resource Drilling $3.5 Mining Geotechnical $0.9 Resource
Slide 25: NPV scenario analysis: leveraged to graphite price increases
NPV scenario analysis: Positively leveraged to expected graphite price increases • PEA used a graphite concentrate selling price of US $916/t • The current forecast selling price for +94%Cg is US $1,070/t of graphite concentrate (source: Benchmark / Lone Star) • Current public information by graphit
Slide 26: La Loutre carbon intensity 10X better than current graphite producers
La Loutre carbon intensity 10X better than current graphite producers Lomiko Scope 1 and 2 intensity benchmarked to other graphite miners (Kt CO2e/ 100,000 t graphite) ESTIMATE 200 200 Benchmarking 188 against graphite China currently accounts mining peers is 150 for over 70% of graphite mining and
Slide 27: Lomiko advantage: Concentrate grade and NPV/Capex multiple
Lomiko advantage: Concentrate grade and NPV/Capex multiple • Updating the Lomiko PEA for USD $1,500/t target graphite selling price • The La Loutre project combines high-grade concentrate with compelling economics of a post-tax IRR of 43%, post-tax NPV of $520M, and an NPV/Capex multiple of 2.2x Pro
Slide 28: Lomiko advantage: High quality project with low capital requirements
Lomiko advantage: High quality project with low capital requirements combined with high-grade graphite concentrate Project Location Africa/Europe North America Source: Company filings 28
Slide 29: PEA: La Loutre delivers 97.4kt/year over a 15-year mine life
PEA: The La Loutre project delivers 97.4kt/year over a 15-year mine life – PEA only, expansion possible Lomiko – La Loutre Operating Graphite Mines Source: Company filings 29
Slide 30: La Loutre long term development timeline
La Loutre long term development timeline Q4 2027 Q1/Q2 2023 Production Q4 2023 MRE –NI-43-101 Q4 2024 Mineral Resource PFS – Pre- Estimate Feasibility Study Q1/Q2 2025 Centre of Excellence FS – Feasibility Q3/Q4 2025 Pilot Plant Study Permits & Q2 2026 Construction Decision Construction of Centre of
Slide 31: Lithium exploration on massive claim package on Nemaska lithium corridor
Lithium exploration on massive claim package on Nemaska lithium corridor Bourier • Option to earn in 70% with Critical Elements, first trigger: 49% • 203 claims for a total ground position of 10,252.20 hectares (102 km2) that boasts other lithium deposits and known lithium mineralization • Bourier c
Slide 32: Bourier lithium project: highly prospective region
Bourier lithium project: highly prospective region Bourier Adjacent Properties: ⮚ Galaxy Resources ⮚ Nemaska Lithium ⮚ Critical Elements 1. Rose Tantalum Project FS stage 2. Lemare Property: ▪ New Discovery – March 21m @ 2.65% Li2O 41.5m @ 1.71% Li2O 23m @ 1.61% Li2O CELC is starting drilling campai
Slide 33: Bourier lithium project
Bourier lithium project Bourier 2021 Field Work Summary ▪ The analytical results feature high- grade values for zinc and tungsten and anomalies in lithium-tantalum- cesium and gold ▪ The lithium-tantalum-cesium anomalies represent an unprecedented discovery and spans along a 2.5 km long NE- trending
Slide 34: Bourier lithium project identifies exploration targets with Li anomalies
Bourier lithium project identifies exploration targets with Li anomalies 2021 Exploration Results Bourier Exploration Program 2022 -2023 ▪ Completed field program in July with Critical Elements and GoldSpot AI ▪ Collected over 1000 soil samples and over 400 rock samples, mapped over 350 outcrops ▪ F
Slide 35: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential June 1, 2023 Market Cap Measured Indicated Inferred EV/Resource Price/Book Symbol Price Company Name Shares O/S Cash TEV ($M) (Mt) (Mt) (Mt) (M&I) (mrq) TSXV:NOU 4.205 Nouveau Monde Graphite Inc 60.7 48.8 279.2 255.3 28.5 101.8 23.0 2
Slide 36: Capital Structure
Capital Structure As at June 1, 2023 Shares Issued & Outstanding 351.1M Market Cap $10.5M Options 24.3M Cash* $2.6M Warrants 94.3M Debt $- Share Units (PSU/RSU/DSU) 13.1M Total Enterprise Value $7.9M Fully Diluted 482.8M * Cash balance from interim financials – January 31, 2023 Management & Insider
Slide 37: Sharing our values
Sharing our values Lomiko’s PEA establishes it will contribute over $130m in wages to the local community and $240m in taxes. We believe we are on the vanguard of change: • Diverse leadership: 50% of directors are women and 2 of 3 Executive Officers are female • Committed to Call to Action #92 of th
Slide 38: Diverse leadership & Experienced team, board and advisors
Diverse leadership & Experienced team, board and advisors MANAGEMENT TEAM BOARD OF DIRECTORS STRATEGIC ADVISORS Belinda Labatte, CEO, CFA, MBA, ICD.D A. Paul Gill, Executive Chair Normand Champigny, CEO 20 years experience in capital markets. Fluent in Current positions: Executive Chair at Lomiko Me
Slide 39: For more information
For more information info@lomiko.com Follow us @lomikometals on socials l l l f l
Slide 40: Appendix
=”) LOMIKO Appendix
Slide 41: Canada's federal gov't announces all new cars will be electric by 2035
July 2021 Canada's federal gov't announces: All of Canada’s new cars will be electric by 2035 To reach even 50% of EV penetration in vehicles requires 20x increase in battery supply. The challenge: Renewable energy supercentres, longer life batteries, and charging stations can and should be sourced
Slide 42: Graphite and lithium in supply bottleneck
Graphite and lithium in supply bottleneck • Graphite demand is expected to increase 7x by 2030, behind lithium • Total lithium available will be enough to satisfy 22% of EV penetration • Both lithium and graphite to see a supply deficit by 2024 • Lithium-ion batteries and fuel cells demand is set to
Slide 43: Appendix Graphite
Appendix Graphite
Slide 44: Natural flake graphite is highly amenable product for the EV battery industry
Natural flake graphite is highly amenable product for the EV battery industry Natural Graphite deposits of economic interest are grouped into three main categories • Amorphous (microcrystalline) Cg % - 60 - 99.9 • Vein Graphite (lump and chip) Cg % - 90 - 99.0 • Flake Graphite (crystalline) Cg % - 8
Slide 45: Electric Vehicles Batteries
Electric Vehicles Batteries Tesla plans to replace 18650 with 4680 DBL (dry battery electrode) Raw materials in an electric car battery of 100 kWh, weighing 600kg: • 7 kg of lithium (70g per kWh) • 10 kg of manganese • 11 kg cobalt (4.5kg for 75kWh) • 70 kg of nickel (Ni-Co-Al~ 8:1:1) • 125 kg graph
Slide 46: Global battery supply opportunities are significant
Global battery supply opportunities are significant Battery manufacturers and GWH capacity worldwide ▪ Current capacity 600 GWh ▪ Projected capacity by 2030 5,500GWh (China 3,000GWh) ▪ China accounted for 90% of the world’s battery manufacturing in 2021. By the end of the decade, the region is expec
Slide 47: Flake Graphite Price Forecast 2021-2040
Flake Graphite Price Forecast 2021-2040: short term increases, long term uptick for +94%Cg Graphite price is dependent on the flake size Mesh size - microns 2022 /US$/t and purity -100 (smaller then 150 µm) $830 +100 – 80 (150 to 180 µm) $1100 China and European Price (US $/tonne): +80 -50 (180 to 3
Slide 48: Appendix La Loutre
Appendix -~ “@° ome *@ 2.@ ‘o @ tas
Slide 49: Flow sheet La Loutre
CRUSHER POLISHING MILL STIIRED DRYING AND MILL CLASSIFICATION +50 mesh 297 SAG MILL -100 microns mesh 149 microns FLOTATION PRODUCT Flow sheet La Loutre FLOTATION Source: NI 43-101 Technical Report and Preliminary Economic Assessment (July 2021) 49
Slide 50: Why investing in Quebec is the right choice
Why investing in Quebec is the right choice Quebec critical minerals and Lomiko can generate premium pricing • The Quebec Mineral Exploration Association (“QMEA”) ECOLOGO recognizes and promotes environmental, social and economic best practices: the first certification of its kind for mineral explor
Slide 51: Appendix Bourier
Appendix Bourier *@ 2.@ ‘Oo @ tae a ©*% mer. of © DW OC tre “em Oe. cae © '*@
Slide 52: Bourier lithium project targeting
Bourier lithium project targeting AI Targeting at Bourier (2021) • GoldSpot highlighted lithium exploration targets at the Bourier project, using both traditional and machine learning approaches with various combinations of the numeric and categoric data and interpretations generated from the geosci
Slide 53: Lithium Reserves by Country
Lithium Reserves by Country 53