Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Investor Presentation (February 2024)
42 slides from Euro Manganese's investor presentation, Feb 21, 2024
Slide 1: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition INVESTOR PRESENTATION February 2024
Slide 2: Legal Disclaimer: Forward-Looking Statements and Risks Notice
LEGAL DISCLAIMER Forward-Looking Statements and Risks Notice Certain statements in this presentation constitute “forward looking statements” or “forward looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainti
Slide 3: High-Purity Manganese 101
For personal use only High-Purity Manganese 101 MARKET OVERVIEW
Slide 4: Manganese is an essential raw material in most lithium-ion batteries
MARKET OVERVIEW Manganese is an essential raw material in most lithium- ion batteries Nickel-Manganese-Cobalt (NMC) cathodes are currently the dominant chemistry For personal use only in EV batteries with ~50% market share Batteries make ABOUT HIGH-PURITY MANGANESE up ~30% of the total cost of EVs I
Slide 5: Manganese will remain crucial in both price and performance battery chemistries
MARKET OVERVIEW Moving forward, the market may shift its focus towards either reducing prices or enhancing performance, yet manganese will remain crucial in both Battery chemistries1 price and performance segmentation For personal use only Current technology Emerging technology Future technology LMF
Slide 6: Global high-purity manganese production landscape
MARKET OVERVIEW Global high-purity manganese production landscape Supply currently dominated by China; project pipeline inadequate to meet forecasted demand For personal use only Supply Forecast • Only 3 new projects at Feasibility stage • EMN set to become one of largest western producers of HPMSM
Slide 7: Industry tail winds benefitting high-purity manganese market
MARKET OVERVIEW Industry tail winds benefitting high-purity manganese market Macro factors aligning to drive increased demand for high-purity manganese For personal use only Continued growth of global EV Development of manganese- EU & US regulation supports 1 market 2 rich chemistries 3 localization
Slide 8: Significant gaps appear in supply-demand balance of HPMSM in 2026
MARKET OVERVIEW Significant gaps appear in supply-demand balance of HPMSM in 2026 and increase steadily thereafter For personal use only Global HPMSM market, 2023-2035, Mt HPMSM Demand Supply (Full potential) Supply (Base case) 8.0 6.0 4.0 2.0 0 2023 24 25 26 27 28 29 30 31 32 33 34 2035 HPMSM Marke
Slide 9: The HPMSM market is regionalizing due to regulatory risk
MARKET OVERVIEW The HPMSM market is regionalizing due to regulatory risk with Europe most likely to witness large and sustained imbalance 2030, kt HPMSM For personal use only Advanced projects Demand1 (Further acceleration) Early-stage projects Imbalance Regions with FEOC restrictions (direct or ind
Slide 10: Tight markets result in increased volatility and segmentation
MARKET OVERVIEW Historical trends indicate that tight markets result in increased volatility and segmentation Nickel Lithium Cobalt For personal use only Nickel, lithium, and cobalt have had price fly-ups, followed by reversion Indexed1 (Jan 2012 price) historical price fluctuations over marginal co
Slide 11: Who We Are
For personal use only Who We Are COMPANY & PROJECT OVERVIEW
Slide 12: Battery metals company set to be a leading producer of high-purity manganese
COMPANY OVERVIEW Battery metals company set to be a leading producer of high-purity manganese Focused on delivering fully-traceable, responsibly-produced manganese for the EV industry For personal use only Strategically located asset; sole manganese resource in the EU Positioned to support shift to
Slide 13: Chvaletice is a unique waste-to-value project
PROJECT OVERVIEW Chvaletice is a unique waste-to-value project Involves reprocessing historical mine tailings to produce high-purity manganese For personal use only Recycling • Historic tailings containing easily-treated manganese carbonate (1) • Well-defined Proven + Probable mineral Reserve of 27M
Slide 14: Flow sheet produces two high-purity manganese products: HPEMM & HPMSM
PROJECT OVERVIEW Flow sheet produces two high-purity manganese products: HPEMM & HPMSM Robust process uses proven, conventional and commercial technologies; adheres to strict European environmental regulations For personal use only 1 Ore to Slurry raw tailings 2 Magnetic Separation 3 Leaching and Pu
Slide 15: Project designed to deliver exceptional ESG benefits
PROJECT OVERVIEW Project designed to deliver exceptional ESG benefits Wide-ranging benefits for all stakeholders #3 ORE For personal use only Use of Best Available Technologies to Minimize Footprint STOCKPILE • LCA shows net positive environmental benefits from remediation of historic tailings (land
Slide 16: Chvaletice's products to have amongst lowest CO2 footprint
PROJECT OVERVIEW Chvaletice’s products to have amongst lowest CO2 footprint vs incumbent industry Results of benchmarked LCA of high priority to customers and financiers For personal use only HPEMM / HPMSM CO2 Emissions Comparison (Scope 1+2+3) CMP HPEMM 64% lower than China 20 17.1 Kg CO2 eq. per k
Slide 17: Demonstration Plant has produced on-spec HPEMM and HPMSM
PROJECT OVERVIEW Demonstration Plant has produced on- spec HPEMM and HPMSM Enables large-scale product samples on batch basis For personal use only • HPEMM (99.9% pure) and HPMSM* (32.4% pure) produced; external lab tests confirm meets Plant specifications • Final commissioning underway • Valuable i
Slide 18: Significant advancement on land access and land rezoning
QUARTER HIGHLIGHTS Significant advancement on land access and land rezoning For personal use only Access to ~85% Mn Reserves now Secured • Definitive Lease Agreement with ČEZ provides access to ~60% of Mn Reserves • Land access granted in return for royalty on gross sales from the Project • Royalty
Slide 19: Project has good cashflow and margins together with supply security for Europe
PROJECT ECONOMICS Project has good cashflow and margins together with supply security for Europe Stable production over 25-year project life, supported by 27 Mt reserve base For personal use only Feasibility Study Base Case Highlights ($ figures in USD) Feasibility Study Base Case Price Forecast for
Slide 20: Superior nature of Chvaletice products demand price premium
PROJECT ECONOMICS Superior nature of Chvaletice products demand price premium Product quality, ESG credentials and localization aspects deliver a price premium For personal use only Unique Aspects of Chvaletice HPEMM & HPMSM Ex-Works China HPMSM Price vs. Forecasted European HPMSM Price High-purity
Slide 21: Offtake tender process continues to attract significant interest
OFFTAKE PROCESS Offtake tender process continues to attract significant interest; funnel is growing Volumes under discussion exceeds capacity (>150 ktpa HPMSM); 80% production capacity targeted to support project finance For personal use only Increased market research coverage for HPMSM Offtake Funn
Slide 22: Permitting and next steps
PROJECT TIMELINE Permitting and next steps Timelines are subject to change based on financing, permitting, and FEED outcomes For personal use only H1 2024 H2 2024 2025 2026 2027 2028 DEMONSTRATION PLANT Customer samples & qualification Available for testing other feedstocks ENGINEERING, PROCUREMENT
Slide 23: Chvaletice: Funding
For personal use only Chvaletice: Funding PROJECT FINANCE
Slide 24: Project financing strategy: mix of debt, equity and royalty
FINANCE Project financing strategy: mix of debt, equity and royalty Staged equity strategy; structured to reduce dilution For personal use only Strategic Investment Private Offering Public Offering US$100M Funding Package At project level, based on NAV At corporate level ▪ EMN shareholders ▪ US$50M
Slide 25: Orion US$100 million funding package facilitates pathway to final investment decision
FINANCING Orion US$100 million funding package facilitates pathway to final investment decision Non-dilutive, tranche structure; reduces future project financing requirements for Chvaletice* For personal use only Tranche-structure minimizes cost of Six-month process Offtake option funds ▪ Funding st
Slide 26: Our Growth Horizon: North America
For personal use only Our Growth Horizon: North America GROWTH OPPORTUNITY
Slide 27: Bécancour opportunity provides first-mover advantage in North America
GROWTH OPPORTUNITY Bécancour opportunity provides first-mover advantage in North America For personal use only Bécancour overview • Scoping study complete to evaluate development of an HPEMM dissolution plant to produce HPMSM • Study leveraged process development and engineering work already complet
Slide 28: Positive Scoping Study highlights released for Bécancour Dissolution Plant
GROWTH OPPORTUNITY Positive Scoping Study highlights released for Bécancour Dissolution Plant Study outlined strong preliminary project economics, modest capex, and short build time For personal use only Scoping Study Highlights ($ figures in CAD)* Plant Design • Allows for production of both HPMSM
Slide 29: MoU signed with Manganese Metal Company for selenium-free HPEMM
GROWTH OPPORTUNITY MoU signed with Manganese Metal Company (MMC) for selenium-free 99.9% HPEMM MoU provides feedstock optionality for the Bécancour Plant & enables potential acceleration to supply North American market MoU with MMC Bécancour Process Flow Sheet For personal use only • Provides feedst
Slide 30: Looking Forward
For personal use only Looking Forward OUTLOOK
Slide 31: 2023-2024 Key catalysts
OUTLOOK 2023-2024 Key catalysts Demonstration Plant Status For personal use only Production of on-spec products Complete; On-spec HPEMM & HPMSM produced Shipments to interested parties Throughout 2024 EPCM for Commercial Plant Appointment of EPCM contractor Complete; Wood awarded EPCM contract Front
Slide 32: Euro Manganese capitalization
CORPORATE INFORMATION Euro Manganese capitalization Euro Manganese is a BC Company incorporated in 2014 and listed publicly in 2018; its head office is located in Vancouver For personal use only Ownership Structure at Dec 31, 2023 TRADING SYMBOLS CORPORATE MEMBERSHIPS Total 402,669,227 TSX-V and ASX
Slide 33: FQ1 2024 Financial highlights and position
QUARTER HIGHLIGHTS FQ1 2024 Financial highlights and position Sufficient funding for delivery of key project milestones and 2024 corporate G&A For personal use only Net proceeds from the first US$20M tranche of the Convertible Loan Facility* expected to fund: Cash Balance – October 1, 2023 C$7.6M •
Slide 34: Executive leadership team
COMPANY OVERVIEW Executive leadership team Track record of raising capital and delivering large-scale projects; deep high-purity manganese processing experience For personal use only Matt James Martina Blahova James Fraser Fausto Taddei Andrea Zaradic Jan Votava President & CEO CFO VP Commercial Com
Slide 35: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition TSXV: EMN | ASX: EMN | OTCQX: EUMNF | Frankfurt Stock Exchange: E06 info@Mn25.ca | www.Mn25.ca
Slide 36: Compliance Statements
LEGAL Compliance Statements Competent and Qualified Persons Statement All production targets for the Chvaletice Manganese Project referred to in this presentation are underpinned by estimated Proven and Probable Reserves prepared by competent persons and qualified persons For personal use only in ac
Slide 37: Appendix
For personal use only APPENDIX
Slide 38: Global manganese market: high-purity manganese is a niche product
MARKET OVERVIEW Global manganese market: high-purity manganese is a niche product Only 1% of manganese mined globally is processed into a grade suitable for EV batteries Specialty Alloys For personal use only (2022) 94% 0.15% ~4% 0.52% ~1% 0.18% ~1% 6% 38
Slide 39: Resources converted to Reserves with 98% classified in Proven category
RESERVE STATEMENT Resources converted to Reserves with 98% classified in Proven category Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adapted by CIM Council, as amended, which are materially identical to the JORC Code. For personal use only Chva
Slide 40: Notes to Mineral Reserve Statement
RESERVE STATEMENT Notes to Mineral Reserve Statement For personal use only 1. Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended, which are materially identical to the JORC Code. 2. The Mineral Resource is inclusive
Slide 41: Project operational costs based on cost environment in mid-2022
PROJECT ECONOMICS Project operational costs based on cost environment in mid-2022 Energy and reagents constitute ~68% of operational costs For personal use only Operational Costs (US$/t of Plant Feed) US$214.5 Opex 19.8 Royalty, freight, insurance • Reagents and energy account for ~30% and 38% of op
Slide 42: Project capital costs include robust contingency
PROJECT ECONOMICS Project capital costs include robust contingency Capex figure reflects post-COVID supply chain environment For personal use only Capital Cost Breakdown (US$M) US$757.3 Capex 78.4 • Robust +$100M contingency (includes $78M contingency and $25M Contingency of growth capital on direct
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