Slide 1: Graphite Project Overview – Skaland Acquisition
MINERAL COMMODITIES LTD GRAPHITE PROJECT OVERVIEW SKALAND ACQUISTION OCTOBER 2019
Slide 2: Caution Statements
Caution Statements Nothing in these materials shall under any circumstances create an implication The information, if any, in this presentation that relates to metallurgy, the This document has been prepared by Mineral Commodities Ltd (MRC or the that there has been no change in the affairs of MRC s
Slide 3: Mineral Commodities Global Overview
MINERAL COMMODITIES GLOBAL OVERVIEW “ With the acquisition of Skaland MRC will operate two production facilities, Skaland at Tormin and Skaland, Flake Graphite while advancing Production – 10ktpa Flake Graphite development at grading ~ 28% Carbon Munglinup and progressing ongoing downstream graphite
Slide 4: Skaland Graphite
SKALAND GRAPHITE Largest flake graphite producer in Europe and the highest grade flake graphite mine in the world Presently the world’s highest grade operating flake graphite mine with mill feed grade averaging around 28%C Skaland is the largest flake graphite producer in Europe and fourth largest p
Slide 5: Converting High Grade to High Value
MINERAL COMMODITIES LTD Converting High Grade to High Value High Grade Mine Operations Tormin - South Africa, one of the highest grade mineral sands operations in the world Skaland – Norway, the highest-grade flake graphite operations in the world Munglinup - Australia, developing the highest-grade
Slide 6: Skaland Rationale
SKALAND RATIONALE Largest flake graphite producer in Europe and the highest grade flake graphite mine in the world • Acquire instant access to graphite market - attain the knowledge, operational experience and qualification to operate successfully in a traditionally opaque market • Secure a strategi
Slide 7: Why Norway
WHY NORWAY Battery electric and plug-in hybrid vehicles together hold a 50 % market share in Norway. • Norway is leading the way for a transition to low emissions in transport. • Norway is a world leader in sustainable energy, with 97% of electricity coming from renewable sources and a renewable sec
Slide 8: Skaland Norway
SKALAND NORWAY • Skaland Graphite AS’ mine and processing facility located on the island of Senja in northern Norway • Ideally positioned to supply European markets. Processing facility and shipping are quay-side at Skaland, shipping every 3 weeks from ice-free harbour 8
Slide 9: Skaland Transaction
SKALAND TRANSACTION April 2019 entered into a Share Purchase Agreement (“SPA”) with Leonhard Nilsen & Sønner – Eiendom AS (“LNS”) to purchase Skaland Graphite AS which operates the Trælen Graphite Mine and Skaland Processing Facility. FUNDED FROM EXISTING CASH RESERVES Total locked box consideration
Slide 10: Skaland Mining
SKALAND MINING Ore grades of 25%-33% C delivered to the plant Mining is via retreat sub-level open stoping with 25m levels Comparatively low mining cost with potential for further optimisation. Host rock around the mine is granite – the intact rock has high strength Exposed graphite is distu
Slide 11: Skaland Historic
SKALAND HISTORIC Concentrate Grade and Flake Size Distribution – The opportunity to add value Production and Sales Average Ore / Concentrate Grades 14000 35% 92.0% 12000 30% 91.5% 25% 91.0% 10000 90.5% 8000 20% 90.0% 6000 15% 89.5% 4000 10% 89.0% 2000 5% 88.5% 0 0% 88.0% 2012 2013 2014 2015 2016 201
Slide 12: Processing Opportunity
PROCESSING OPPORTUNITY Concentrate Grade and Flake Size Distribution – The opportunity to add value Current Concentrate Grade Flake size distribution + 150 microns 94- PSD % +/- 150µm %C 98%C final concentrate grade. +315 6.6% 98.1% +250 6.9% 97.8% 36% -150 microns are +180 14% 96.9% sub 90%C, with
Slide 13: Key Optimisation Phases
KEY OPTIMISATION PHASES Current flowsheet has capacity for upgrading to produce high purity, high value product. This will be the near-term focus whilst research and development is conducted on further value-adding elements EXPANDABLES UPGRADE CONCENTRATE VALUE ADD TO Equipment installation to incre
Slide 14: European Action to Phase Out Polluting Vehicles
EUROPEAN ACTION TO PHASE OUT POLLUTING VEHICLES Country | Official Target 11 European countries have taken regulatory action to phase out Internal Combustion Engine vehicles and increase the number of Electric Vehicles, as illustrated below. Austria No new ICE vehicles sold after 2020 Britain No new
Slide 15: Focus for Future Success
FOCUS FOR FUTURE SUCCESS MRC Graphite strategy going forward MUNGLINUP A DIVERSIFIED CARBON BUSINESS • Finalise DFS (Oct 19) MARKET ANALYSIS • Secure permitting (Apr 20) Comprehensive market analysis to establish • Complete marketing (June 20) optimal product suite based on fundamental agreements, F