Falcon Energy Materials PLC · TSXV:FLCN
Falcon Energy Materials — SRG Mining — Investor Presentation (August 2023)
23 slides from Falcon Energy Materials's investor presentation, August 2023
Slide 1: SRG Mining: Corporate Presentation
SRG Mining: Corporate Presentation August 2023 1 www.srgmining.com | TSX.V SRG
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You
Slide 3: Company Highlights
Company Highlights Capital Structure(1) Share Price Performance Basic Shares Outstanding (M) 116.7 Warrants (M)(2) 4.8 Options (M)(3) 8.7 1 Jan ‘23 1 Apr ‘23 17 July ‘23 RSU and DSU’s (M) 2.1 Major Shareholders Fully Diluted Shares Outstanding (M) 132.4 La Mancha Fund 23.5% Sama Resources 13.0% Mark
Slide 4: Investment Highlights
Investment Highlights ❖ Graphite has significant and well-established traditional usage (refractory bricks, lubricants, etc.) ❖ Active Anode Material (“AAM”) is a growth market as an essential input for lithium-ion batteries GRAPHITE ❖ Offtakers seeking diversity of supply as China dominates current
Slide 5: Graphite is Poised to Follow a Similar Price Response as Other EV Metals
Structural Issues Not Limited to Lithium…… LOCATIONS CHALLENGES (May ’20 - ’23) PRICE +671% +26% +0% +81% Source: Benchmark Minerals, Trading Economics Graphite is Poised to Follow a Similar Price Response as Other EV Metals 5 www.srgmining.com | TSX.V SRG
Slide 6: The Double Graphite Problem
The Double Graphite Problem Note: Percentages for mining and EV output based on actual production. All other percentages are based on production capacity 1. Refers to the country where production occurs Source: IEA, FT China Dominates Downstream EV Battery Supply Chain, Especially in Graphite 6 www.
Slide 7: Synthetic vs. Natural Graphite
Synthetic vs. Natural Graphite TOP 10 PRODUCERS OF NATURAL GRAPHITE (2020E, tonnes) 8 Sulfur Nitrogen Particulate 80g 14g 6g 0 Oxide Oxide Matter 5kg of CO2 Per kg of graphite SYNTHETIC GRAPHITE 1-2kg of CO2 Per kg of graphite NATURAL GRAPHITE SYNTHETIC GRAPHITE NATURAL GRAPHITE Water and air pollut
Slide 8: Decoupling vs. De-risking
Decoupling vs. De-risking Financial Times, 13 February 2023 Financial Times, 30 April 2023 Financial Times, 4 May 2023 Financial Times, 13 March 2023 Bloomberg, 30 March 2023 Bloomberg, 12 August 2023 Volvo, 4 February 2023 Reuters, 1 June 2023 De-risking is the Solution to Complex Supply Chain Real
Slide 9: Vertical Integration Strategy
Vertical Integration Strategy GRAPHITE CONCENTRATE ~$1,400/T ❖ Updated Feasibility Study on first phase of development completed ❖ Discussions underway to finance construction capital expenditure (debt & equity) - ❖ Target to produce approximately 94ktpa of high-purity flakes in concentrate INCREASI
Slide 10: La Mancha Investment
La Mancha Investment “La Mancha has seen significant successes in the gold industry, and this investment in SRG is a logical continuation of the Fund’s strategy to invest in commodities necessary to shift the energy system away from one dominated by hydrocarbons. The supply-demand dynamics for clean
Slide 11: C-ONE Investment
C-ONE Investment Company Highlights Transaction Highlights (Link) ❖ Carbon ONE New Energy Group Co., Ltd (“C-ONE”) was ❖ SRG and C-ONE signed strategic cooperation and investment founded in 2022 by anode-industry pioneer Yue Min who has agreement on July 10th, 2023 over 300 battery-related patents a
Slide 12: Executive Team
Executive Team Benoit La Salle, FCPA, FCA, MBA – Director and Chairman of the Board: Founder, President & CEO of Semafo, Current President & CEO of AYA Gold & Silver Inc. and Executive Chairman of Sama Resources Inc. Matthieu Bos, MSc – President and Chief Executive Officer: Former Executive Vice Pr
Slide 13: Lola Graphite Project Mining License
Lola Graphite Project Mining License 1 Mining Permit (#22709) 1 SRG Mining Inc. 94 km2 Lola Graphite Project 2 Exploration Permit (#23178) SRG Mining Inc. 3 92 km2 Gogota Nickel-Cobalt Project 4 5 1 2 “Zone Stratégique” 3 Guinea Ministry of Mines 99 km2 4 “Zone Stratégique” 4 Guinea Ministry of Mine
Slide 14: Lola Graphite Project
Lola Graphite Project ❖ Completed NI 43-101 compliant Bankable Updated Feasibility Study March 2023 by DRA ❖ Environmental and mining permit received from Government of Guinea ❖ 15 year mining permit awarded on Nov. 2019 for 94 Km2 Resource Statement (Cut-Off Cg 1.0% oxides, 1.4% FR) Category Tonnag
Slide 15: The Key Resource Qualities
The 4 Key Resource Qualities 8 8 1&2 0 Size Distribution & Grade 30 SP20 Purification Results Head Grade 4.14% Cg PPM Limit Parameter Overall Recovery 84.2% Al 3.4 <20 ICP Results Alkaline Roasting Ca 15.1 25.0 Mass Recovery 84.5% Cr 4.5 <5 Concentrate Grade 95.4% Cu 0.9 <5 (July 2022) Distr. Grade
Slide 16: Feasibility Study Results
Feasibility Study Results 2023 FS – 94ktpa Sensitivity Analysis Direct $136M Price $1,120 $1,260 $1,400 $1,540 $1,681 Indirect $25M Avg. $36M $45M $53M $62M $71M Sensitivity (Post-Tax) Capex Contingency $17M CFO Owner’s Cost $6M NPV8% $78M $148M $218M $287M $357M Total $185M IRR 15% 20% 25% 29% 33%
Slide 17: Capital and Operating Costs
Capital and Operating Costs Pre-Production Capital Costs Operating Costs (US$/t) Mining $8M Mining (contract mining) $171 Process Plant $62M Process $323 Tailings & Water Management $4M Site General & Administrative $51 Site Infrastructure $11M Direct $545 Power Plant & Distribution $36M Concentrate
Slide 18: Key Focus Areas & Opportunities
Key Focus Areas & Opportunities ❖ Additional drilling campaign to increase reserves and resources along strike and at depth RESOURCES UPDATED FS ❖ Increased plant production to 100ktpa graphite concentrate (from 50ktpa in 2019 FS) [COMPLETED] ❖ Trade-off between contract vs. owner mining ❖ Trade-off
Slide 19: Appendix
Appendix 19 www.srgmining.com | TSX.V SRG
Slide 20: C-ONE Detailed Production Capacity
C-ONE Detailed Production Capacity Natural Graphite Anode Material Mine Shaping Purification Carbonizing 140 ktpa 250 ktpa 275ktpa(1) 300ktpa(2) concentrate Strong focus on ESG with target of zero emissions Artificial Graphite Anode Material Raw Material Precursor Production 200 ktpa Fixed Coke 150
Slide 21: Flake Size Distribution Comparison
Flake Size Distribution Comparison FLAKE SIZE DISTRIBUTION 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Syrah Battery Minerals Mason Graphite Sovereign NextSource SRG Nouveau Monde Triton South Star Northern (Mozambique) (Mozambique) (Canada) (Malawi) (Madagascar) (Guinea) (Canada) (Mozambique) (Braz
Slide 22: ESG Principles
ESG Principles ❖ Health, safety, and environmental leadership come first ❖ Target ZERO Recordable Incident Rate and ZERO Environmental Incident Rate ❖ Development in line with best practice health, safety and environmental standards HSE ❖ Active engagement with national and regional stakeholders and
Slide 23: Contact
1320 Graham boulevard, suite 132 Mont-Royal, Quebec Canada H3P 3C8 info@srgmining.com TSX.V: SRG 23 www.srgmining.com | TSX.V SRG