Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — IPO Roadshow (June 2021)
46 slides from Almonty Industries's IPO roadshow presentation, June 2021
Slide 1: Almonty Industries ASX IPO Investor Presentation
1 TSX: AII / OTCQX: ALMTF / Frankfurt: ALI.F ALMONTY INDUSTRIES --ASX IPO INVESTOR PRESENTATION-- PREPARED BY ALMONTY INDUSTRIES INC. June 2021
Slide 2: Legal Disclaimer
2 Legal Disclaimer Nature of this Presentation This presentation has been prepared by Almonty Industries Inc. (Almonty or the Company). The information is based on publicly available information, internally developed data and other sources and is current as at the date of this presentation. By recei
Slide 3: Risk Disclosure
3 Risk Disclosure Mineralisation Risks Potential investors should be aware of the mineralisation risk associated with Almonty's Sangdong Mine, Panasqueira Mine and Valtreixal Project. Mineralisation and development is a high-risk undertaking and the reliability of resource and grade of mineralisatio
Slide 4: Risk Disclosure cont.
4 Risk Disclosure cont. Risks from Competition The tungsten industry that Almonty is involved in is subject to competition, particularly from China, due to its historical dominance in the industry. Although the Company will undertake all reasonable due diligence in its business decisions and operati
Slide 5: Contents
5 Contents I. Investment Highlights II. ASX Listing and Capital Raising III. A New Paradigm In the Tungsten Industry IV. Tungsten – An ‘Endangered Species’ V. The “Pride of Korea” is Returning – Sangdong Mine VI. Conclusion
Slide 6: I. Investment Highlights
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Slide 7: Investment Highlights
7 Investment Highlights ASX Listing and capital raising will fully fund construction of the Worlds Largest Tungsten Mine outside of China Almonty is a global leading Tungsten producer with a diversified portfolio of Tungsten assets. Currently developing Sangdong, the largest tungsten mine outside of
Slide 8: II. ASX Listing & Capital Raising
8 II. ASX Listing & Capital Raising
Slide 9: ASX Listing & Capital Raising Overview
9 ASX Listing & Capital Raising Overview Almonty is listing on ASX via an IPO and A$15m – A$25m capital raising Listing Location Proposed ticker: ASX:AII Currently listed on TSX (TSX:AII), trades OTC (OTCQX: ALMTF) and on the Frankfurt stock exchange (Frankfurt:ALI.F) Offer Structure Issue of CHESS
Slide 10: Uses of Funds
10 Uses of Funds Once the Company has raised the Minimum Amount (A$15.0m), the Company will have satisfied the final US$75.1m KfW-IPEX Bank project finance drawdown CP and will be fully funded for construction of the Sangdong Project. Uses of funds CA$m A$m % Planned capital expenditures for the con
Slide 11: Sangdong Mine – Project funding secured
11 Sangdong Mine – Project funding secured Further de-risking of a flagship project SOURCE OF FUNDS RAISE ~US$10.1 m EQUITY PLANSEE ~US$9.8 m US$28 m INVESTED ~US$8.1 m SENIOR PROJECT FINANCE LOAN ~US$103 m SIZE 75 US$m Offtake INTEREST 3-M LIBOR + 2.3% Agreement SANGDONG GRACE 2-Year Grace period U
Slide 12: Pro-forma capital structure
12 Pro-forma capital structure Min A$15.0m Max A$25.0m Shares on issue m 191.9 191.9 CDI’s to be issued in ASX IPO m 15.0 25.0 Pro-forma shares / CDI’s on issue post IPO m 206.9 216.9 Issue Price A$ $1.00 $1.00 Pro-forma Market cap at Issue Price A$m $206.9 $216.9 Pro-forma cash on hand pre-IPO A$m
Slide 13: Indicative Timetable
13 Indicative Timetable Event Date Prospectus Date 8 June 2021 Offer opens 17 June 2021 Offer closes 8 July 2021 Settlement (Completion of the Offer) 13 July 2021 Issue of CDIs under the Offer 15 July 2021 Expected despatch of holding statements (CDI's) 16 July 2021 Expected commencement of trading
Slide 14: III. A New Paradigm In the Tungsten Industry
14 III. A New Paradigm In the Tungsten Industry
Slide 15: Almonty at a glance
15 Almonty at a glance Huge growth potential in a well-diversified portfolio ALMONTY IS ONE OF THE LARGEST TUNGSTEN MINERS OUTSIDE OF CHINA HIGHLY OPPORTUNISTIC PORTFOLIO Building the largest tungsten mine outside of China, supplements one existing production mine and two Producing Assets developmen
Slide 16: Regional diversification
16 Regional diversification Established global tungsten chain in conflict-free regions LOS SANTOS – SPAIN VALTREIXAL - SPAIN PANASQUEIRA - PORTUGAL ALMONTY TUNGSTEN – S.KOREA ACQUIRED: 2011 ACQUIRED: 2013 - 2016 ACQUIRED: 2016 ACQUIRED: 2015 STAGE: CARE & MAINTANCE STAGE: PRE-FEASIBILITY STAGE: PROD
Slide 17: Shareholder Structure
17 Shareholder Structure Strategic tie-up & shareholder support with long-term commitments 1 LEWIS BLACK 18.7% ALMONTY PARTNERS LLC 1 14.4% FREE FLOAT 49.8% 12.3% & OTHERS 1.9% OTHER BOARD MEMBERS Total no. of shares 191.9m 1.8% As at 8 June 2021 SHAREHOLDER INFORMATION Listed on the Toronto Stock E
Slide 18: Panasqueira
18 Panasqueira WO3 production for more than a century KEY FACTS Tonnage Located in Covilha, Portugal WO3 Grades Historical production since the early 1900s Current Status - Production 11.9mt 10.6mt 3.0mt Production anticipated to last more than 10 years 0.21% 0.24% 0.24% Forecasted yearly production
Slide 19: Los Santos
19 Los Santos WO3 production from reprocessed tailings KEY FACTS Tonnage Located near Salamanca, Spain WO3 Grades Historical open pit production from 2008 to 2019 Current Status – temporarily suspended for planned upgrade 10.6mt 3.8mt 3.8mt Production from reprocessed tailings anticipated for 2022 –
Slide 20: Valtreixal
20 Valtreixal Almonty’s well-located development target KEY FACTS Tonnage Located in north western Spain, 250km from the Los Santos Mine WO3-Equivalent Grades Almonty acquired the project from SIEMCALSA, the same group that was involved in the historical development of Los Santos Almonty has 100% of
Slide 21: Almonty Today – global tungsten production cost curve
21 Almonty Today Sangdong expected to be amongst the lowest cost producers globally GLOBAL TUNGSTEN PRODUCTION COST CURVE 400 - ALMONTY MINES - CHINESE MINES State-owned, large companies in China - OTHER MINES NOT LOCATED IN CHINA $205-245/mtu 300 Size of block - % of total tungsten output $ / MTU 2
Slide 22: IV. Tungsten – An 'Endangered Species'
22 IV. Tungsten – An ‘Endangered Species Defined by the EU as a ‘Critical Raw Material’
Slide 23: Tungsten Market
23 Tungsten Market Critical material for all economies THE MOST IMPORTANT AMONG ALL RAW MATERIALS 30% AUTOMOTIVE 8 MINING DEMAND DRIVERS 13% ECONOMIC IMPORTANCE 74 6 INDUSTRIAL 4f145d46s2 11% Electric vehicles boom Mills Watches 4 2 10% 8,5% 8% ENERGY CONSTRUCTION AEROSPACE Mining Drilling Crushing
Slide 24: Tungsten Uses I/II – Main uses of tungsten
24 Tungsten Uses I/II – Main uses of tungsten X-ray beam Inserts for aircraft Automotive 74 4f145d46s2 market 5G network W Tungsten 183.84 infrastructure Ballistic equipment Defense Semiconductors Source: Living Metals Nr. 17 - 2019, The Plansee Group 2019
Slide 25: Tungsten Uses II/II – specific uses in the High-Tech World
25 Tungsten Uses II/II – specific uses in the High-Tech World Abrasion resistant metal for numerous of applications Plate for stone hammer drill Saw teeth for blades of a circular saw 65g 400g Casing for luxury watch Film projector lamp 35g 750g 74 4f145d46s2 Pins for doorlock 12g W Tungsten 183.84
Slide 26: Peer Group
26 Peer Group Almonty’s Sangdong Mine with outstanding economics Contained Metals ('000s Tonnes) CAPEX (in US$m) Grades Studies, Producing Producing Development PFS, financing PFS Exploration Exploration FS FS financing 600 1.00% 0.90% $522 500 0.80% $429 400 350 0.60% 285 300 258 0.44% 213 0.40% 20
Slide 27: V. The 'Pride of Korea' is Returning – Sangdong Mine
27 V. The “Pride of Korea” is Returning Sangdong Mine
Slide 28: Sangdong Mine – Almonty's flagship project
28 Almonty Korea Tungsten Sangdong Mine – Almonty’s flagship project KEY FACTS Tonnage WO3 Grades Located in South Korea, 187km SE of Seoul One of the largest tungsten resources in the world 50.7mt Anticipated production start from 2022 8.0mt 7.9mt Technical Report, 2020, Base Case: 0.45% 0.51% 0.43
Slide 29: Sangdong Project – Financial Projection
29 Sangdong Project – Financial Projection Strong future cash flows and a 90+ year mine life 10 YEAR PRO FORMA – ALMONTY* COMBINED Almonty is fully funded for the construction of Sangdong after the final 14.1US$m equity raise Sangong’s high profitability will ensure a strong cash flow with an antici
Slide 30: Sangdong Project Summary (I/II)
30 Sangdong Project Summary (I/II) What makes the Sangdong Project unique in the tungsten industry? P&P Reserves Indicated Resource Inferred Resource 50.7 Largest tungsten deposit in the world ‘Inferred’ In Mt LONG MINE LIFE based on extensive drilling by Korea Tungsten 5.8 8 Sangdong China avg. Wor
Slide 31: Sangdong Project Summary (II/II)
31 Sangdong Project Summary (II/II) What makes the Sangdong Project unique in the tungsten industry? LARGEST TUNGSTEN MINE OUTSIDE Sangdong’s yearly base production of ca. 2.3kt WO3 equals 1.2x South Korea’s OF CHINA yearly WO3-Imports → Extension case covers ca. 2.8x yearly WO3-Imports* FULLY PERMI
Slide 32: Sangdong Project – Outlook
32 Sangdong Project – Outlook Key milestones ahead 2020 2021 2022 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EQUITY RAISE DRAWDOWNS & GRACE PERIOD Development REPAYMENT Fund PLANT CONSTRUCTION COMPLETION Plant & COMMISSIONING construction 12-MONTH RAMP-UP MINE DEVELOPMENT & EARTHWORK/DRIFT Mining & Mine START MININ
Slide 33: Sangdong ESG (I/II)
33 Sangdong ESG (I/II) Equatorial Principles and beyond Assessment of environmental and social risks of major projects based on 10 principles, including regular monitoring by independent third parties and intensive dialogues with the local population and their organizations. Almonty has agreed to de
Slide 34: Sangdong ESG (II/II)
34 Sangdong ESG (II/II) Environmental Impact Assessment and Mitigation Employees complete a Job Safety Analysis (JSA) prior to starting a new task, wear HEALTH & SAFETY Personal Protective Equipment (PPE) and use the correct tools for the job IMPACT ON LAND & Progressive rehabilitation leading to a
Slide 35: Sangdong Project Management Team
35 Sangdong Project Management Team Strong & experienced team with capability to build a mine Lewis Black – Director, President and CEO Emil Corfu –Director of Plant Management Over 16 years experience in the tungsten mining industry 20+ years experience in mine plant construction Former Chairman an
Slide 36: Sangdong Orebody dimensions
36 Sangdong Orebody dimensions Massive orebody 187km SE of Seoul N S MINE PORTAL LOTTE WORLD TOWER, SEOUL 555m FOOTWALL 1-5 N TOWER, UPPER & LOWER SEOUL 236m HANGINGWALL 1 km
Slide 37: Sangdong - Project Risks & Mitigation (I/III)
37 Sangdong - Project Risks & Mitigation (I/III) Mineralisation Risk LESS THAN 1/3 OF THE TUNGSTEN DEPOSIT IDENTIFIED HAD BEEN LARGEST TUNGSTEN MINE OUTSIDE OF CHINA MINED OUT AT THE TIME OF CLOSURE IN 1992 S N Tonnage WO3 Grades Limestone 50.7mt 8.0mt 1 2 5.8mt 2 0.41% 0.51% 0.43% 3 M&I Inferred Re
Slide 38: Sangdong - Project Risks & Mitigation (II/III)
38 Sangdong - Project Risks & Mitigation (II/III) Price risk PRICE SCENARIOS OFFTAKER GROUP STRUCTURE 400 375 370 350 330 325 320 320 320 300-400 100% 300 280 275 270 U$ / mtu 270 270 250-350 250 100% 235 235 235 235 235 235 235 225 215 230 220 200-300 220 200 200 100% 150 21% 2016 2017 2018 2019 20
Slide 39: Sangdong - Project Risks & Mitigation (III/III)
39 Sangdong - Project Risks & Mitigation (III/III) Social, political and construction risks ENVIRONMENTAL LICENSES & CONSTRUCTION ASPECTS PERMITS RISKS Free from all Korea Tungsten legacy Mining concessions and exploration Installation & Commissioning liabilities, e.g. old tailings dams (in the perm
Slide 40: VI. Conclusion
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Slide 41: Investment Highlights
41 Investment Highlights 5 reasons to invest in Almonty Industries Largest non- Almonty will become the largest tungsten producer outside of China with the completion of the Sangdong Mine and will therefore have enormous strategic importance as reflected in the Chinese producer financing structure a
Slide 42: Appendix 1 – Board of Directors
42 Appendix 1 – Board of Directors Director Experience Lewis Black • Currently a Partner of Almonty Partners LLC, a privately-held company specialising in tungsten mining investments and has over 16 years of experience in the tungsten (Executive Director, mining industry. President and Chief Executi
Slide 43: Appendix 2 – Summary of pro-forma debt currently drawn
43 Appendix 2 – Summary of pro-forma debt currently drawn Instrument Counter-party A$m C$m Notes Unicredit Bank AG, Plansee, i/r LIBOR+1.5% to 2.64%; maturity Term loans (EUR & USD) A$41.0 C$38.3 Daytal Jun ’23 Deutsche Rohstoff AG, i/r 4.0% - 10.0%; maturity Jul ’22 – Convertible Notes / Debentures
Slide 44: Appendix 3 - Share price potential
44 Appendix 3 - Share price potential Classic pattern of mining stocks STAGE 1: EXPLORATION STAGE 2: DEVELOPMENT STAGE 3: PRODUCTION Highest Risk – High Potential Medium Risk – Low Potential Lowest Risk – High Potential 100% of exploration projects ~35% pass this stage ~12% reach long term productio
Slide 45: Appendix 4 – Selling Restrictions
45 Appendix 4 – Selling Restrictions CDIs are being offered and sold as part of the IPO only to: a) members of the general public with registered addresses in Australia and New Zealand; b) sophisticated investors, experienced investors or professional investors (as those terms are defined in section
Slide 46: Almonty Industries Inc.
46 TSX: AII / OTCQX: ALMTF / Frankfurt: ALI.F Almonty Industries Inc. 100 King Street West Suite 5700 Toronto, ON Canada M5X 1C7 Office: +1 (647) 438.9766 Fax: +1 (416) 628.2516 Email: info@almonty.com