Lomiko Metals — Investor Presentation (August 2022)
46 slides from Lomiko Metals's investor presentation, August 2022
Slide 1: Developing a pipeline of critical mineral properties in Quebec
Developing a pipeline of critical mineral properties in Quebec for a North American climate success story August 2022
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 in order to d
Slide 4: Lomiko purpose: The operator of choice in Quebec
Lomiko purpose: The operator of choice in Quebec By putting people first We are building a strategic stockpile of critical Strong investment proposition and leading minerals assets in Quebec with vision and values ✔ 3mt tons of in situ graphite at 100% owned La ✔ 1 of 17 ECOLOGO-certified mining Lou
Slide 5: Lomiko Metals catalysts
Lomiko Metals catalysts For a long-term solution to our EV industry La Loutre PEA stage moving Early-Stage Grenville Bourier Early-Stage towards PFS properties Graphite Lithium Graphite • Acquired 6 new prospective • Surface and airborne • Completing infill and graphite projects program starts July
Slide 6: 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 7: 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 8: The challenge is lack of supply in North America
The challenge is lack of supply in North America • Current capacity at 769 GWH • There is demand for 800,000 of SPG (“Spherical Graphite”) per year, or 1.6Mt pa of graphite concentrate per year • Opportunity - Lomiko can provide 10% of this demand and 30% of demand in Quebec (according to its PEA) f
Slide 9: 1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate
1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate 1.5m EVs in Quebec by 2030 means 150 GWh of capacity needed for batteries per Annum • Spherical Graphite requirement for 150GWh battery capacity is 150,000tpa • Graphite Concentrate 95% Cg requirement for 150GWh capacity is 300,000tpa
Slide 10: Graphite shortfall starting in 2027
Graphite shortfall starting in 2027 Shortfall to increase to 8Mt by 2040 Graphite Market Balance - Projected Demand and Supply (Mt) DEMAND IS EXPECTED TO EXCEED SUPPLY BY 2023 – AND CONTINUE BEYOND La Loutre Projected start Source: Benchmark Mineral Intelligence Q4 2021 10
Slide 11: Critical Minerals Map of Quebec-new land package
Critical Minerals Map of Quebec-new land package New Staking Areas www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 11
Slide 12: Lomiko new natural flake graphite claims: 14,255 hectares
Lomiko new natural flake graphite claims: 14,255 hectares of mineral claims • 236 claims in total, on 6 projects in the Laurentian region of Quebec and within KZA territory • Within a 100 km radius of the Company’s flagship La Loutre graphite project • Large disseminated flake graphite mineralizatio
Slide 13: La Loutre graphite project close to infrastructure
La Loutre graphite project close to infrastructure with great geological setting La Loutre • Stage of development: Preliminary Economic Assessment ("PEA") • Starting Preliminary Feasibility Study EV Zone • Initiated infill-drill program Battery Zone • Initiated metallurgical studies • Initiated base
Slide 14: La Loutre Resource Estimate: focus on conversion
La Loutre Resource Estimate: focus on conversion La Loutre Resource Estimate (Effective Date: May 14, 2021) - PEA Cut-off EV Deposit Battery Deposit Total In-Situ Run-of- In-Situ In-Situ Class Run-of-Mine Run-of-Mine Grade Mine Grade Grade Graphite (%) Graphite Tonnage Graphite (kt) Tonnage (kt) Ton
Slide 15: La Loutre: PEA establishes a critical path ahead
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking • Resources: Ind 23.2 Mt @ 4.51% Cg for 1 Mt of graphite and inf 46.8 Mt @ 4.01% Cg for 1.9 Mt of graphite using cut-off grade of 1.5% Cg. La Loutre Graphite Project • PEA - LOM plant production of 21,8 Mtonnes
Slide 16: La Loutre: PEA Layout – great base to build on
La Loutre: PEA Layout – great base to build on No conventional tailings facilities • Waste rock and tailings co-disposed WASTE ROCK & • Efficient site water management EV ZONE CODISPOSAL PILE • Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits • Stockpiles
Slide 17: Early achievements from the new Lomiko team - 2022
Early achievements from the new Lomiko team - 2022 ESG and business purpose ✔ Community engagement sessions held and retained a strategic advisor to work with Kitigan Zibi community ✔ Completed 11 months of the baseline studies ✔ Ecologo – completed the certification process ✔ Long-term working rela
Slide 18: La Loutre study priorities underway
La Loutre study priorities underway Continue with Community and First Nations engagement and communications • Meeting with the local communities and all stakeholders and shareholders are ongoing Continue with environmental baseline studies • Complete 4 full seasons of Environmental Baseline studies
Slide 19: 2022 drilling program underway – Actual drilled
2022 drilling program underway – Actual drilled Infill and extension drilling along the strike of the deposits to confirm ore body shape, quality and extents Focus on higher grade EV Zone • Completed 53 drill holes in EV Zone for a total of 9,025 meters • Discovered new mineralization in EV zone bel
Slide 20: La Loutre initial metallurgical program confirms high purity concentrate
La Loutre initial metallurgical program confirms high purity concentrate Expanded Graphite +80 & +50 mesh • ProGraphite (Germany) and Corem (Quebec) confirm graphite from La Loutre is suitable for a wide range of traditional markets such as refractories, crucibles and friction products, or expanded
Slide 21: La Loutre metallurgical program Next steps
La Loutre metallurgical program Next steps Next steps: • Metallurgical sample selected from the existing core from EV and Battery zones • 800kg of the core was sent to SGS Lakefield for testing • SGS started with the sample preparation and initial met work in June 2022 • Produce flotation concentrat
Slide 22: 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 Phase 1 at La Loutre Cost ($M) To PFS for La Loutre Cost ($M) Resource Drilling $3.5 Mining & Mining Geotechnical $0.7 Metallurgy $0.6 Infrastructure Geo
Slide 23: 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 is US $1,000/t of graphite concentrate (source: Benchmark). • Current public information indicates a selling price of ov
Slide 24: 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 2017 Drilling 21m @ 2.65% Li2O 41.5m @ 1.71% Li2O 23m @ 1.61% Li2O Source: Critical Element
Slide 25: 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 m
Slide 26: 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 ▪ Located on Nemiscau greenstone belt and Critical Elements south-east of the Cree Eeyou Istchee James Bay territory in Quebec. ▪ Summer: intensifying prospection over a
Slide 27: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Aug 3, 2022 27
Slide 28: Diverse leadership with solid experience building businesses
Diverse leadership with solid experience building businesses 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 CEO of Pampa Metals, Lomiko Technologies, an
Slide 29: Capital Structure
Capital Structure As at Aug 3, 2022 Shares Issued & Outstanding 287.4M Market Cap (Aug 3) $12.9M Options 13.4M Cash* $5.2M Warrants 96.7M Debt $- Share Units (PSU/RSU/DSU) 8.9M Total Enterprise Value $7.7M * Cash balance as at last interim financials – April 30, 2022 Fully Diluted 406.4M Source: Com
Slide 30: Shareholder value generation in 2022
Shareholder value generation in 2022 THE LOMIKO GRAPHITE OPPORTUNITY PLUS OTHER CATALYSTS LA LOUTRE Bourier lithium exploration – Collected • Drill program underway to increase over 1,100 soil samples and 400 rock resource quality and rerate inferred samples in July, next steps include resources in
Slide 31: Appendix
#%, LOMIKO Appendix
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: Graphite Pricing May 2022 – Fastmarkets
Graphite Pricing May 2022 – Fastmarkets 37
Slide 38: Flake Graphite Supply Forecast
Flake Graphite Supply Forecast Opportunity: The evolving nature of China’s graphite supply chain makes it increasingly likely that exports could become limited over the coming years, heightening the need for diversification of graphite supply elsewhere in the world. Source: Benchmark Mineral Intelli
Slide 39: Flow sheet La Loutre
Flow sheet La Loutre Size Fraction Analysis of Combined Concentrate of LCT Size (Mesh) Size (µm) Mass (%) C(t) (%) C(t) Distribution (%) +32 +500 1.0 97.6 1.0 +48 +300 9.8 97.4 9.7 +80 +180 21.6 98.0 21.7 +100 +150 10.8 98.2 10.9 +150 +106 17.5 98.1 17.5 +200 +75 13.0 98.3 13.1 +325 +45 13.5 98.1 13
Slide 40: Flow sheet La Loutre
CRUSHER POLISHING MILL STIIRED DRYING AND MILL CLASSIFICATION +50 mesh 297 microns SAG MILL -100 mesh 149 microns FLOTATION PRODUCT Flow sheet La Loutre FLOTATION Source: NI 43-101 Technical Report and Preliminary Economic Assessment (July 2021) 40
Slide 41: Bourier lithium assets close to infrastructure
Bourier lithium assets close to infrastructure Bourier Stage of development: Early-Stage Bourier Lithium Project exploration ▪ Concession size: 10,252 ha ▪ Location: Quebec, Nemaska ▪ Lomiko to earn up to 70% of Bourier with milestone payments ▪ Geology - volcanic-sedimentary unit Lithium expected t
Slide 42: 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 43: Lithium Reserves by Country
Lithium Reserves by Country 43
Slide 44: We will create multiple ways to win with re-rate opportunities
We will create multiple ways to win with re-rate opportunities S&P 500 performance (source: Cowen 03/21) • Battery names generate 700% returns in 12 months • EV names generate a 400% return • RE producers: trade at 28x EV/ EBITDA • Mining companies: trade at 4x EV/ EBITDA Source: QUÉBEC PLAN FOR THE
Slide 45: Capital Structure
Capital Structure As at Aug 3, 2022 Source: Company Data 45
Slide 46: 30-Day Share Price and Volume
30-Day Share Price and Volume As at Aug 3, 2022 Source: Yahoo Finance 30-Day average closing price $0.048 30-Day average trading volume: 131,094 46