Arverne Group Act · EURONEXT:ARVEN
Arverne Group Act — Arverne Group — H1 2024 Earnings Presentation
38 slides from Arverne Group Act's earnings presentation, Sep 26, 2024
Slide 1: Half Year 2024 Results
Sub-surface solutions for energy transition HALF YEAR 2024 RESULTS 26 september 2024 1
Slide 2: Disclaimer
2 D Disclaimer References herein to this presentation (the “Presentation”) shall mean and include this document, any oral presentation accompanying this document provided by Arverne Group S.A. (the “Company”) and any further information that may be made available in connection with the subject matte
Slide 3: Speakers
3 S SPEAKERS Pierre Brossollet Founder and Chairman & CEO of Arverne Group Emeline Othax Chief Financial Officer of Arverne Group Guillaume Borrel General Manager of Lithium de France
Slide 4: Contents
4 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre-Feasibility Study (PFS) E N ■ Outlook T ■ Appendices S
Slide 5: Introduction
5 I Introduction
Slide 6: Contents
6 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre-Feasibility E Study (PFS) N ■ Outlook T S ■ Appendices
Slide 7: Significant potential geothermal production capacities with multiple advantages
7 S Significant potential geothermal production capacities with multiple advantages Description Geothermal production targets (TWh) Depth of the well: from 200 to 4000 m PPE Objectives SER & AFPG Temperature recorded : from 20°C to 150°C Shallow geothermal energy Use : heating networks for cities an
Slide 8: A fast-growing portfolio of geothermal energy production projects
8 A A fast-growing portfolio of geothermal energy production projects Adapting strategy to market trends: fewer doublets, more power, more operating hours Identified prospective projects PROSPECTIVE o Prospects express geothermal needs PROJECTS o Geothermal potential to be qualified 940 GWh Targeted
Slide 9: Key steps towards first production of heat and lithium
9 KKey steps towards first production of heat and lithium ■ Execution of two new 3D exploration campaigns covering Ongoing sub-surface 160 km²during summer 2024 analysis ■ Total of 310 km² of imaging data acquisition ■ Construction of a micro seismic monitoring network (7 operating Preparation for s
Slide 10: Deep drilling
10 D Deep drilling A modern Achievements over the period drilling tool 98 employees - Creation of DrillDeep(1) with as of June 30, Serving the Herrenknecht AG 2024 (71 as of group’s June 30, 2023) subsidiaries - 3 projects for Storengy Control of - B04 : completion of availability renovation, inspec
Slide 11: Shallow drilling
11 S Shallow drilling (1) A presence on Achievements over the period all market - Acquisition of 3 new drilling 20 employees segments machines, raising the fleet to 6 as of June 30, machines 73 employés 2024 (11 as of June 30, 2023) Extended offer - 16 projects for public for low-carbon authorities
Slide 12: Contents
12 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre- E Feasibility Study (PFS) N ■ Outlook T S ■ Appendices
Slide 13: Gross business volume
G 13 Gross business volume The Group reports a gross business volume, key operational indicator, that includes the contribution of each subsidiary, including DrillHeat, a 50% owned subsidiary operated by Arverne Group. . Turnover mainly generated by the drilling activity of H1 In thousands of euros
Slide 14: Consolidated income statement
C 14 Consolidated income statement In thousands of euros 06/30/2024 06/30/2023 Turnover mainly generated by the drilling activity (97.4%) of ADS, adverse impact due to the anticipated interruption of a maintenance Revenues 4,485 5,580 campaign beginning of the year External expenses (7,030) (4,301)
Slide 15: Balance sheet assets
B 15 Balance sheet assets In thousand of euros 06/30/2024 12/31/2023 €2.7 million development of Exclusive Exploration Licences for Lithium de France and 2gré 41,934 39,192 Intangible assets 26,558 19,445 Tangible assets €7.1 million investments mainly to prepare the rigs for the 3,166 3,448 coming
Slide 16: Balance sheet liabilities
B 16 Balance sheet liabilities In thousands of euros 06/30/2024 12/31/2023 Capital and share premium 194,302 194,302 Strong shareholder’s equity as a result of the successfull Accumulated results and other reserves (37,612) (30,210) company’s listing end of 2023 Non-controlling interests 13,710 14,3
Slide 17: Cash flow statement
17 CCash flow statement In thousands of euros 06/30/2024 06/30/2023 Net income (9,548) 9,261 VAT refund on invoices related to the public listing Depreciation, amortization and provisions net of reversal 1,149 809 operation Badwill 0 (6,496) Other changes 4,074 (5,784) Cash flow from operations (4,3
Slide 18: Contents
18 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre- E Feasibility Study (PFS) N ■ Outlook T S ■ Appendices
Slide 19: A structurally growing lithium market
19 A A structurally growing lithium market • Cyclical imbalance between lithium supply and demand supporting a temporary negative impact on prices • Starting 2028/2029, anticipation of a supply and demand re-balance that should support a positive lithium price inflexion • Forward prices that validat
Slide 20: Validation of a key milestone: the PFS
20 V Validation of a key milestone: the PFS Scoping study 50 45 40 Pre-feasibility study 35 « PFS » RELIABILITY +/- 30 Definitive feasibility study (%) 25 « DFS » 20 15 10 5 0 ESTIMATION High level estimates Preliminary Final LEVEL What it could be ? What it should be ? What it will be? Conclusions
Slide 21: PFS achievements
21 P PFS achievements PHASE 1 : technical-economic arbitrations PHASE 2 : engineering of the selected processes • Operational conditions (pressure, • Material and energy balance temperature…) • Sizing of the main equipments • Concentration level • Main facility designs • Purification • Estimated CAP
Slide 22: PFS results, confirmation of the technical and economic viability
22 P PFS results, confirmation of the technical and economic viability Assumptions prior PFS Assumptions after PFS Choice of the final ■ Lithium carbonate or lithium hydroxide ■ Lithium carbonate product Production ■ 30 kt/year of lithium hydroxide (*) ■ 27 kt/year of lithium carbonate Process effic
Slide 23: Production cash costs positioned in the first quartile
23 P Production“cash costs” positioned in the first quartile USD per ton of LCE C1 cost curve* en 2030 1st quartile Anticipated production by project, ton LCE/year *C1 cost : Mining cost + Processing cost + Reagent cost + Transportation & storage + General & Administrative, Energy & Labor + Maintena
Slide 24: Contents
24 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre- E Feasibility Study (PFS) N ■ Outlook T S ■ Appendices
Slide 25: 2024 Targets
25 2 2024 Targets €16m-€18m €50m PFS (1) 1 Updating of the technical and Gross business volume 2024 investment program New filing of a drilling financial assumptions for Up 35 % - 50 % permit application geothermal lithium production • New secured contracts to • €9 million deployed over H1 • Results
Slide 26: Growth path updated following the results of the pre-feasibility study
26 G Growth path updated following the results of the pre-feasibility study 2026 2028 2031 Between €1,800 million and 1st geothermal €500 million : gross capex before subsidies €1,900 million: gross capex before lithium subsidies 1st heat production production 1,8 TWh : annual heat production 27kt :
Slide 27: Future leader in the energy transition from the subsurface
F 27 Future leader in the energy transition from the subsurface A market driven by energy needs and decarbonisation challenges 1 the electrification of the automotive sector and the sovereign energy transition An experienced management team, reference shareholders 2 and a board of directors with com
Slide 28: Contents
28 ■ Introduction / key messages C O ■ Major achievements over the period N ■ H1 2024 financial results T ■ Lithium de France: positive results of the Pre- E Feasibility Study (PFS) N ■ Outlook T S ■ Appendices
Slide 29: Consolidated income statement
29 C Consolidated income statement In thousands of euros 06/30/2024 06/30/2023 Revenues 4,485 5,580 Other operating income 177 171 Capitalised production 3,396 940 Purchases consumed (717) (311) External expenses (6,313) (3,990) Personnel expenses (9,388) (4,850) Taxes and duties (171) (114) Other o
Slide 30: Balance sheet assets
30 B Balance sheet assets In thousand of euros 06/30/2024 12/31/2023 41,934 39,192 Intangible assets 26,558 19,445 Tangible assets - - Other non current financial assets 3,166 3,448 Deferred tax assets Total non-current assets 71,658 62,085 Inventories 1,192 413 Other receivables 3,408 2,710 Other c
Slide 31: Balance sheet liabilities
31 B Balance sheet liabilities In thousands of euros 06/30/2024 12/31/2023 Capital and share premium 194,302 194,302 Other reserves 22,646 21,621 Accumulated results (60,257) (51,831) Shareholder’s equity - Group share 156,690 164,092 Non controlling interests 13,710 14,346 Total shareholder’s equit
Slide 32: Cashflow statement
32 C Cashflow statement In thousands of euros 06/30/2024 06/30/2023 Net income (9,548) 9,261 Depreciation, amortization and provisions net of reversal 1,149 809 Badwill 0 (6,496) Other changes 4,074 (5,784) Cash flow from operations (4,326) (2,210) Change in inventories (71) Change in trade and othe
Slide 33: Stock market data
S 33 Stock market data Stock description Shareholder structure - September 2024 ISIN FR001400JWR8 Reuters ARVEN.PA Bloomberg ARVEN:FP Place Euronext Professional Compartment 18,4% 21,5% Number of shares 39 833 777 (*) Price 5,38 € (as of/09/24/2024) Capitalization 185,2 M€ (as of/09/24/2024) 20,5% A
Slide 34: Simplified organisation chart
34 S Simplified organisation chart
Slide 35: An experienced management team
35 A An experienced management team Pierre Brossollet Sébastien Renaud Frédérique Barthélemy Emeline Othax Founder and Chairman & CEO Deputy CEO of Arverne Impact & Engagement Director CFO of Arverne Group of Arverne Group Group of Arverne Group 15 years of expertise in 25 years of expertise in ener
Slide 36: CSR roadmap (1/2)
C 36 CSR roadmap (1/2) Protecting the environment ■ First measurement of the group's CO2 emissions (scopes 1, 2 and 3) by the end of 2024, following the implementation of a calculation methodology ■ First measurement of CO2 emissions avoided through our projects (scope 4) by the end of 2024 followin
Slide 37: CSR roadmap (2/2)
C 37 CSR roadmap (2/2) Acting as a responsible employer (continued) ■ By the end of 2024, definition of a training plan and achievement of an average number of training hours in the Group at least equal to 110% of the 2023 average ■ Ensure the training of 100% of employees in the code of conduct ■ B
Slide 38: A mission-driven company since 2022
A mission-driven company since 2022 www.arverne.earth | communication@arverne.earth 2 avenue du Président Pierre Angot 64000 PAU