Zimtu Capital Corp. · TSXV:ZC
Zimtu Capital — Investor Presentation (August 2021)
15 slides from Zimtu Capital's investor presentation, Aug 30, 2021
Slide 1: Battery and Critical Minerals: EV Revolution to Drive Demand
August 26, 2021 Sector Report: Sid Rajeev, B.Tech, MBA, CFA Head of Research Battery and Critical Minerals Alexis Cabel, B.A.Econ Equity Analyst Electric Vehicle (EV) Revolution to Drive Demand Click here for more research on the company and to share your views Highlights ➢ The Electric Vehicle (EV)
Slide 2: The EV Revolution: Surging EV sales
Equity Research Page 2 of 15 The EV Revolution Surging EV sales 6.4M EVs are expected to be sold in 2021, up 98% YoY from 3.2M in 2020 Source: ev-volumes.com ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront” www.researchfrc.com
Slide 3: Declining battery costs is the primary driver of EV sales
Equity Research Page 3 of 15 Declining battery costs is the primary driver of EV sales Prices of EVs are expected to be competitive starting 2024 The IEA forecasts 145M EVs on the road by 2030; annual sales are expected to increase to 30M by 2030 (consensus) The IEA projects sales of 13M-20M by 2025
Slide 4: Rare Earth Elements (REEs)
Equity Research Page 4 of 15 Rare Earth Elements (REEs) REEs are a group of 17 elements Source: Geomega Unlike what their name may imply, REEs are more abundant than most of the mainstream precious and base metals. REEs are limited in supply because they are rarely found in concentrations viable for
Slide 5: China is the leading REE producer
Equity Research Page 5 of 15 China is the leading producer, and accounted for 58% of global production in 2020 Sources indicate that China accounts for over 90% of global production, when undocumented production is included Source: USGS Rare Earth Atomic Element Symbol Number Current Applications Ae
Slide 6: NdFeB magnets and EV demand for REEs
Equity Research Page 6 of 15 Neodymium-Iron-Boron rare earth magnets (NdFeB or neo-magnets) are an essential component of electronics and automobiles. Their superior strength per unit weight and volume makes them an integral part of EVs and wind turbines, allowing for more efficiency and reduced ene
Slide 7: Long-term supply deficit projected for REEs
Equity Research Page 7 of 15 Long-term supply deficit projected for REEs Source: USGS and FRC Among the 17 REEs, the following four (used in magnets) are expected to experience the strongest demand growth - Neodymium (Nd), Praseodymium (Pr), Terbium (Tb), and Dysprosium (Dy) ©2021 Fundamental Resear
Slide 8: Fluorspar
Equity Research Page 8 of 15 Prices of these four REEs are up significantly YoY, due to supply disruptions (induced by the pandemic), the trade war between the U.S. and China, and rising demand for magnets Fluorspar Fluorspar or fluorite is an important industrial mineral composed of calcium and flu
Slide 9: Fluorspar production and uses
Equity Research Page 9 of 15 China is the largest producer, followed by Mexico and Mongolia Source: USGS Fluorite is a common mineral in hydrothermal and carbonate rocks worldwide, and has a wide range of applications based on its purity. Types and Uses of Fluorspar Grade Fluorine Content Uses produ
Slide 10: Fluorspar demand in EV batteries and prices
Equity Research Page 10 of 15 Fluorspar’s use in EVs is currently a niche market. In LIBs, fluorspar is used along with lithium as the electrolyte - the medium that connects the cathode and the anode. There are ongoing studies for the development of Fluoride-Ion-Batteries (FIBs) – wherein lithium is
Slide 11: Niobium
Equity Research Page 11 of 15 Niobium Niobium is a soft, gray-white metal with a high melting point, and relatively low density. Niobium is classified as a ‘strategic metal’ by the U.S. due to its applications in aerospace and defense. Brazil is the largest producer, and holds the largest reserves T
Slide 12: Niobium in steel and lightweighting
Equity Research Page 12 of 15 Source: www.cradleresources.com According to the World Steel Association, 500 g of niobium reduces a car’s weight by 100 kg, and increases fuel efficiency by 5% Source: cbmm.com ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunitie
Slide 13: Development of Niobium Batteries and demand
Equity Research Page 13 of 15 Due to its high-temperature applications, niobium super-alloys are used in jet engines, gas turbines, rocket sub-assemblies, turbocharger systems, and combustion equipment. Niobium alloys are also used to manufacture superconducting magnets for medical and scientific ap
Slide 14: Niobium Prices and conclusion
Equity Research Page 14 of 15 Niobium Prices Niobium prices have been relatively stable as production is dominated by a single producer (CBMM) in Brazil Source: USGS In conclusion, we believe high-quality REEs and fluorspar projects, located outside China, will be sought after. China’s dominance, an
Slide 15: Equity Rating Scale and Risk Rating Scale
Equity Research Page 15 of 15 Fundamental Research Corp. Equity Rating Scale: Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk Hold – Annual expected rate of return is between 5% and 12% Sell – Annual expected rate of return is below 5% or the expecte