Hpq Silicon Inc · TSXV:HPQ
Hpq Silicon — HPQ Silicon Resources — Investor Presentation (February 2017)
24 slides from Hpq Silicon's investor presentation, Feb 12, 2017
Slide 1: Becoming the World's Leader in Producing Low Cost Solar Grade Silicon Metal
HPQ - SILICON R E S O U R C E S Becoming the World’s Leader in Producing Low Cost Solar Grade Silicon Metal TSX-V: HPQ
Slide 2: Disclaimers
HPQ - SILICON R E S O U R C E S DISCLAIMERS This presenta,on includes certain “forward-looking statements” All statements, other than statements of historical fact, included herein, including, without limita5on, statements regarding future plans and objec5ves of the company, are forward-looking stat
Slide 3: Investment Proposition: The Disruptive Technology in Solar Grade Silicon Metal
HPQ - SILICON R E S O U R C E S Investment ProposiLon THE DisrupLve Technology in Solar Grade Silicon Metal HPQ plans to become a Leader in the Global Solar Grade Silicon Industry SiO2 99.0+% Solar Grade Silicon Metal “Polysilicon” Carbon 99.999+% Si The results are radical but the science is simple
Slide 4: PUREVAP Disruptive Potential: Cash Cost Analysis
HPQ - SILICON PUREVAP™ DISRUPTIVE POTENTIAL Cash Cost Analysis R E S O U R C E S Polycrystalline Silicon Market 2016 – 2025 | © AMMS | Updated: 2 November 2016 The cost curve for SG SI (polysilicon) suggest that long-term solar-grade polysilicon price below USD 15/Kg is not feasible. HPQ and the PUR
Slide 5: Corporate and Capital Summary
HPQ - SILICON Corporate and Capital Summary R E S O U R C E S Share Price (February 2, 2017) $0.190 Cash and equivalent in hand $813,000 52 Week Low $0.050 Cash value of warrants in the money $2,473,411 52 Week High $0.305 Breakdown of warrants Outstanding # $ $0.07 Strike Price Warrants - Dec. 17 6
Slide 6: Corporate Structure and Businesses
HPQ - SILICON Corporate Structure and Businesses R E S O U R C E S HPQ Silicon plans to become a ver,cally integrated Silicon Metal Company HPQ Silicon Resources Inc. BEAUCE GOLD Subsidiaries FIELDS INC BEAUCE RONCEVAUX QUARTZ PUREVAP QRR HPQ SOLAR GOLD GOLD PROPERTIES PROJECT OPTION Divisions Quart
Slide 7: Comparison of Today's Process and PUREVAP
HPQ - SILICON R E S O U R C E S COMPARISON of TODAY’S PROCESS and PUREVAP™ MG SI Key Matrix (98% to 99.5% Si) Market Size (Ton) ≈ 2.2 Million Tons Market Size (US$) ≈ 6 Billion Demand Growth ≈ 6% CAGR Price (US$/kg) 2.4 to 2.8 SiO2 99.5% Electric Arc Cash Cost (US$/kg) 1.75 to 2.25 Coal - Wood Chips
Slide 8: HPQ And The Solar PV Manufacturing Space
HPQ - SILICON R E S O U R C E S HPQ And The Solar PV Manufacturing Space An esLmated 30% of the costs of new Photovoltaic system are a^ributable to the transformaLon of Quartz into Solar Grade Silicon Metal (The capital intensity of photovoltaics manufacturing: barrier to scale and opportunity for i
Slide 9: Outsourcing R&D And Partnering With The Industry Leader
HPQ - SILICON Outsourcing R&D And Partnering With The Industry Leader R E S O U R C E S STRATEGIC DEVELOPMENT AGREEMENT WITH PYROGENESIS • PyroGenesis is developing for HPQ-Silicon’s exclusive use the PUREVAP™ QRR (Patent Pending) a 1 Step, Clean Tech process for making SG Si directly from Quartz, u
Slide 10: HPQ PUREVAP Timeline: Making Rapid Progress
HPQ - SILICON R E S O U R C E S HPQ PUREVAPTM TIMELINE: Making Rapid Progress 2014 2015 2016 2017 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR Discussion with Proof of Concept Research and Process Proof of Concept PyroGenesis Development, Lab scale equipment Characte
Slide 11: HPQ PUREVAP Scaling Up: Making Rapid Progress
HPQ - SILICON R E S O U R C E S HPQ PUREVAPTM SCALING UP: Making Rapid Progress Proof of Concept Metallurgical Tests Program, Scaling up results 15 test later Thin layer of material produced First nugget of Si (99.97% SI) produced during first tests during last proof of concept test (About 0.1 g) Pro
Slide 12: PUREVAP Disruptive Potential: Capex Analysis
PUREVAP™ DISRUPTIVE POTENTIAL HPQ - SILICON R E S O U R C E S Capex Analysis PUREVAPTM QRR US$18.5 CapEx per kg of annual capacity matrix at Pilot Plant phase demonstrate the disrupLve potenLal of the technology Capital Cost Per Technologies Available To Produce SG Si Material (all $ values in USD)
Slide 13: Design and Pilot Plant Fabrication Schedule
HPQ - SILICON R E S O U R C E S Design and Pilot Plant Fabrica,on Schedule Schedule Task Name Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Phase 1: Detailed Engineering Process Engineering Mechanical Engineering Electrical Engineering Autom
Slide 14: PUREVAP Pilot Plant: Capital Needs, Timing
HPQ - SILICON R E S O U R C E S PUREVAP™ PILOT PLANT: CAPITAL NEEDS, TIMING The total cost to purchase and commission the PUREVAPTM QRR Pilot Plant and related Intellectual Property is CDN$8,260,000 to be invested between 08/2016 en 12/2018: • $ 1,000,000 for purchase of the related Intellectual Pro
Slide 15: HPQ – PUREVAP Raw Material
HPQ - SILICON R E S O U R C E S HPQ – PUREVAP™ RAW MATERIAL • HPQ-Silicon is the largest holder of High Purity Quartz proper,es in Quebec, with over 3,500 Ha under claims • The High Purity Quartz from our Roncevaux property is already in high demand, as it successfully passed rigorous tes5ng protoco
Slide 16: HPQ Vertical Integration Strategy
HPQ - SILICON R E S O U R C E S HPQ VERTICAL INTEGRATION STRATEGY Plans Are To Establish HPQ Quarry Opera,ons in order to meet our Raw Material Requirement For Future PUREVAP™ QRR Plants. • For 2017, HPQ plans on developing the Roncevaux Quartz Poten5al: • Key goal, delinea,ng a significant resource
Slide 17: Why Invest in HPQ Now?
HPQ - SILICON R E S O U R C E S Why Invest in HPQ Now? HPQ Is Canada’s Only Public Pure Play Investment In the LucraLve Solar Grade Silicon Market HPQ Silicon proven bench test success now gradua,ng to Pilot Plant HPQ PUREVAP™ Proprietary disrupLve technology: • Low Opex, Low Capex, Minimal Carbon F
Slide 18: Appendix (Supporting Slides)
HPQ - SILICON R E S O U R C E S Appendix (SupporLng Slides) TSX-V: HPQ
Slide 19: Growing Metallurgical Grade Silicon Metal Market
HPQ - SILICON R E S O U R C E S GROWING METALLURGICAL GRADE SILICON METAL MARKET n MG Si 2015 consump5on was 2.2 Million Tons; Growth in MG Si Consump,on Expected to Accelerate from Historical Levels • > $US 6 billion in worldwide sales 3,500 n Demand is expected to grow at 6.0% CAGR from 3,000 2016
Slide 20: Low SG Si (Polysilicon) Production Limiting PV Growth
HPQ - SILICON R E S O U R C E S Low SG Si (Polysilicon) Produc,on Limi,ng PV Growth SG Si (Polysilicon) Supply/Demand Forecast SG Si (Polysilicon) Market Balance Forecast 20 95GW 500 10 78GW Other China 0 400 64GW Other China 59GW (10) China Top 3 Polysilicon (kMT) Polysilicon (kMT) Other China Othe
Slide 21: PUREVAP: The Only Environmentally Friendly Option
HPQ - SILICON R E S O U R C E S PUREVAP™ The Only Environmentally Friendly OpLon Carbon Footprint 75% Lower Than Conven,onal Process. The PUREVAP™ QRR process is es5mated to generate 14.1 kg CO2 eq/Kg SG Si; The Siemens process (the industry standard) normally generates 54.0 kg CO2 eq/ Kg SG Si of e
Slide 22: PUREVAP: The Only Environmentally Friendly Option
HPQ - SILICON R E S O U R C E S PUREVAP™ The Only Environmentally Friendly OpLon February 2017 – Page 22
Slide 23: PUREVAP: Feedstock Flexibility: A Visible Advantage
HPQ - SILICON PUREVAPTM R E S O U R C E S “Feedstock Flexibility: A Visible Advantage” Low Purity Feedstock High Purity Feedstock 98.14 % SiO2 99.9+ % SiO2 February 2017 – Page 23
Slide 24: Simple PUREVAP 1-Step Process
HPQ - SILICON SIMPLE PUREVAPTM 1-STEP PROCESS R E S O U R C E S “ELEGANT IN ITS SIMPLICITY” Quartz Reduc,on Reactor • Quartz reduc5on with carbon using plasma submerged arc • Silicon refining under vacuum to remove impuri5es ONE STEP Vacuum Arc Furnace • Reaching very low air pressure level + Plasma
HPQ Silicon Resources — Investor Presentation (February 2017) on 6ix