Element 25 Limited · ASX:E25
Element 25 — Investor Presentation (December 2020)
30 slides from Element 25's investor presentation, Dec 4, 2020
Slide 1: Investor Update – Growing the Business
Element 25 Limited Investor Update – Growing the Business Charting a growth path for a world class manganese business. Investor Presentation – December 2020
Slide 2: Disclaimer
Disclaimer This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assu
Slide 3: Corporate Overview
Corporate Overview Financial Information Share Price Performance ASX Ticker E25 Project Financed Shares on Issue 132M Capital Raising Share Price $1.46 Market Capitalisation $193M PFS Announced Cash ~$14M Listed Investments ~$4M MoU Signed with OMH Equipment Ordered Debt Nil Enterprise Value ~$175M
Slide 4: Experienced Owner’s Team
• Experienced team supported by industry Experienced Owner’s Team leading consultants. • Covers a broad spectrum of disciplines. • >100 years combined experience in mining and processing industries. Seamus Cornelius John Ribbons • Outcomes focused, all with “skin in the game”. Chairman Non-Executive
Slide 5: World Class Manganese Resource
World Class Manganese Resource Australia’s largest onshore manganese deposit with simple outcropping geology allowing for free-dig low cost mining.
Slide 6: What is Manganese?
What is Manganese? • Manganese (Mn) is the fourth most used metal on earth in terms of tonnage, behind iron, aluminum and copper. • It has many uses including steel, portable batteries, and aluminium cans. • Manganese is an essential component of the steel-making process. Manganese Ore • Manganese i
Slide 7: The Butcherbird Manganese Project
The Butcherbird Manganese Project • Large resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources1. • Maiden Proved and Probable Reserve of 50.6M tonnes at 10.3% Mn for 5.22t of contained manganese2. • Excellent local infrastructure (bitumen road and gas pipel
Slide 8: World Class Resource, Great Infrastructure Endowment
World Class Resource, Great Infrastructure Endowment 550km PORT HEDLAND Goldfields Gas Pipeline Measured and Indicated Resources are the focus of the 42 year PFS base case Gt Northern Highway 8
Slide 9: Very Simple Geology
Very Simple Geology • Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. • No selective mining required. • Low strip ratio of 0.3:1 based on PFS pit optimisations. • Mining is above the water table for the first ~30 years. • Free dig with l
Slide 10: A Staged Development Strategy
A Staged Development Strategy Early cashflow from the concentrate export startup stage will fund expansion to utilise the very large resource and maximise Project returns.
Slide 11: Simple, Low Cost Beneficiation
Simple, Low Cost Beneficiation Ejected Waste Screening Ore sorting Low cost, free dig and wet rejects shale mining of ore scrubbing waste to produce from surface. removes clays. Mn concentrate. 11
Slide 12: Simple Process, Low Capital, Low Operating Cost
Simple Process, Low Capital, Low Operating Cost • Simple mechanical beneficiation yields a 30-35% medium grade Mn concentrate. • Very low levels of deleterious elements. • Concentrate suitable for smelting for manganese alloys or future hydrometallurgical feed for producing Electrolytic Manganese Me
Slide 13: Detailed Engineering and Commissioning Planning Well Advanced
Detailed Engineering and Commissioning Planning Well Advanced ROM Pad Crusher Log Washer Ore sorters housed under dome shelter. Rinsing Dry Stack Screens & Waste Product Ore Sorters Side on view of the log washer and ore sorters. 13
Slide 14: Project Delivery on Time and Budget
Project Delivery on Time and Budget • Mining Lease granted. • All access agreements finalised. • Processing water source confirmed. • Engineering design completed. • Project financing completed. • Permitting imminent. • Mobilising December 2020. • First production Q1 2021, expansion funding discussi
Slide 15: The Bigger the Better – Room to Grow!
The Bigger the Better – Room to Grow! Expansion Scenario Comparison2 Case Base Case 2X Base Case 3X Base Case High Purity Mn NPV5 Real (Pre-tax) A$583M A$926M $1,138 NPV5 Real (Post-tax) A$421M A$652M A$798M IRR Real 387% 342% 359% Mn Price USD$ FOB Port Hedland $4.37/dmtu Exchange Rate USD:AUD $0.7
Slide 16: What Changed Since May?
What Changed Since May? NPV (ASM) NPV Variance May to Nov 2020 Base Case 700 MN oy 600 127. 500 a 400 107 i 4 a NPV (May 2020) OCF Exchange Rate Opex Capex Plant Throughput Plant Recovery MnOrePrice = NPV(Nov 2020) Premia Negative m™ Positive
Slide 17: Expansion is Not an Idle Ambition…
Expansion is Not an Idle Ambition… • Expansion beyond Stage 1 has always been a part of the plan. • Most likely scenario is Commencement of expansion of concentrate construction for Stage 1 is imminent… business as the next step. • This will be followed by further expansion into battery grade mangan
Slide 18: Logistics Strategy
Logistics Strategy • Road haul to Port Hedland on the Great Northern Highway. • Approximately 6-7 trucks per day. • Bulk shipping via Utah Point facility. Utah Point Photo courtesy of Pilbara Port Authority 18
Slide 19: Development Timeline
Development Timeline • Project development timeline targeting first production Q1 2021. Fast track • Processing equipment landing in Fremantle December 2020. expansion of production in • Approvals process well advanced. Year 2 • Offtake terms agreed. Mobilisation December • Project financing complet
Slide 20: Manganese Markets are Robust
Manganese Markets are Robust Demand for manganese is growing and supply has constraints. Butcherbird is closer to the end users than many other Projects.
Slide 21: Manganese Demand Growing
Manganese Demand Growing A steadily & consistently growing market 21
Slide 22: Manganese Concentrate Pricing
Manganese Concentrate Pricing Robust forecast pricing “Manganese from Roskill, a Ore - Stronger leading market for Longer” analyst. Macquarie Commodities Comment 13 May 2020 Conservative pricing assumptions 22
Slide 23: Where to From Here?
Where to From Here? Transitioning from an explorer to a miner is the goal of all junior exploration companies and we are firmly on the path.
Slide 24: Our Journey… Our Goal…
Our Journey… Downstream Project Product Stage 1 FID Mn Conc. Export Expansion Processing Execution Diversification (EMM/HPMSM) Our Goal… • Produce clean, low cost, ethical manganese products for world markets. • Become a globally significant manganese producer. • Achieve best in class quality and co
Slide 25: Thank you.
Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
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Slide 28: Appendices
Appendices foe\ Element(25 MN
Slide 29: Reserves and Resources
Reserves and Resources Maiden Ore Reserve1 Category Tonnes (Mt) Mn (%) Contained Mn (Mt) • 89% conversion of measured Proved 14.4 11.5 1.65 and indicated resources to Probable 36.2 9.8 3.56 reserve. Total 50.6 10.3 5.22 • Maiden Reserve only exploits Global Mineral Resource2 approximately 20% of glo
Slide 30: Competent Person’s Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient exp