European Lithium Ltd. · ASX:EUR
European Lithium — SPAC Merger (October 2022)
32 slides from European Lithium's SPAC merger presentation, Oct 25, 2022
Slide 1: Investor Presentation October 2022
INVESTOR PRESENTATION October 2022 CONFIDENTIAL ASX: EUR NASDAQ: SZZL
Slide 2: Basis of Presentation
1 Basis of Presentation These Presentation Materials are provided for informational purposes only and have been prepared to assist interested parties in making their own evaluation with respect to a potential business combination among European Lithium Limited ( “ European Lithium ” ), its wholly ow
Slide 3: Financial Information and Use of Projections
2 Financial Information The financial information and data contained in this presentation is unaudited and does not conform to Regulation S - X promulgated by the SEC . In addition, Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in a
Slide 4: This presentation and any additional documents handed out at any meeting or provided directly
3 This presentation and any additional documents handed out at any meeting or provided directly to potential investors (together the “Presentation Materials”) have not been reviewed or approved by (i) NEX Exchange Limited or by any authority which could be a competent authority for the purposes of t
Slide 5: Competent Person Statement
4 Please note that the photographs and images used in the Presentation Materials are illustrative and may not show Company asse ts / licence areas. By attending the presentation and/or retaining these Presentation Materials you will be taken to have represented, war ra nted and undertaken that: (i)
Slide 6: Introducing Sizzle Acquisition Corp
5 5 • Founder and entrepreneur with 17+ years of experience founding, acquiring, developing, and leading hospitality, retail and real estate companies • Co - founder and former CEO of &pizza STEVE SALIS CEO • Corporate Executive and lawyer with 25+ years of experience leading private and public comp
Slide 7: European Lithium management and board
6 6 • 35 years of experience developing businesses, including in the mining, energy, and resources sectors • Executive Chairman of ASX - listed CuFe Ltd and Executive Director of Cyclone Metals Ltd • Previously Non - Executive Chairman of Cauldron Energy Ltd Tony Sage Executive Chairman • Experience
Slide 8: Exciting Near-Term Catalysts
7 7 EXCITING NEAR - TERM CATALYSTS CRITICAL METALS CORP Mine License Secured (2) Leading Strategic Partnerships Compelling De - SPAC Valuation Near - Term Contracted Revenue Wolfsberg Lithium Project is licensed (2) , planning to produce spodumene concentrate in 2025, and expects near term announcem
Slide 9: Key Investment Highlights
8 Leading domestic offtake with BMW Group Economic viability PFS completed – DFS underway Advanced project Mine Life > 20 years Fully licensed (2) mine built by the Austrian government High purity Lithium (99.6% Li 2 CO 3 ) made at pilot plant in partnership with Dorfner Anzaplan Lithium hydroxide p
Slide 10: Company Introduction
COMPANY INTRODUCTION CONFIDENTIAL
Slide 11: Asset Introduction
10 ASSET INTRODUCTION Bulk extraction from Wolfsberg Lithium Project (Sep/Oct 2013) Advanced Lithium project in the heart of Europe • Exploration mine tunneled and built by Austrian government • Mining license issued (2) • Mined ore processed into final products Wolfsberg Lithium Project • Advanced
Slide 12: A Mine in the Heart of European Battery Production
11 Norway A MINE IN THE HEART OF EUROPEAN BATTERY PRODUCTION Source: CIC Energigune Version 7 (02/2022) European Gigafactories AIMING TO BE THE FIRST AND LARGEST LOCAL SUPPLIER OF CRITICAL LI THIUM FOR THE EU’S GREEN ENERGY REVOLUTION Planned European factories at varying commissioning stages, total
Slide 13: Strategic Partnership & Offtake
12 Secured Offtake Industry Validation Non - Dilutive Capital European Partner STRATEGIC PARTNERSHIP & OFFTAKE Exclusive offtake on battery grade lithium hydroxide including US$15M prepayment • On August 5, 2022 European Lithium disclosed a memorandum of understanding with BMW AG for offtake and pre
Slide 14: Wolfsberg Lithium Project
13 WOLFSBERG LITHIUM PROJECT Measured, Indicated & Inferred / JORC compliant resource 12.88m tonnes at 1% Li2O (Li2O cut - off 0%) measured in Zone 1 (1) Drilling Upside: Positive drill results in Q1 2018 confirms Zone 2 could mirror Zone 1 resource, doubling project resource The First lithium conce
Slide 15: Geological Resource Statement
14 Type (JORC*) Million Tonnes (at present) Grade Li 2 O (%) Measured 4.31 1.13 Indicated 5.43 0.95 M&I Total 9.74 1.03 Inferred 3.14 0.90 Total 12.88 1.00 JORC* Code 2012 Resource at Zone 1 only (1) GEOLOGICAL RESOURCE STATEMENT Source: *JORC – Joint Ore Reserve Committee, Australian Standard to ev
Slide 16: Zone 1 and Zone 2 drilling
15 Zone 1 Zone 2 (2) Drilled down dip to max depth of 450m and 1,500m length. Lithium bearing pegmatite veins up to 5.5m wide intersected and ore body remains open along strike to the northwest and down dip. Exploration target, demonstrated to be the southern limb of an anticline of which the northe
Slide 17: Pilot Plant & Test Production
16 PILOT PLANT & TEST PRODUCTION • Commissioned Dorfner Anzaplan with the construction of a pilot plant • Production of spodumene concentrate from lithium - bearing ore from test mining • Processing of spodumene concentrate to lithium carbonate and hydroxide for testing by potential offtake partners
Slide 18: Development Strategy
17 DEVELOPMENT STRATEGY Completion of Definitive Feasibility Study – Expected Q1 2023 Build Decision & Project Financing – Q1 2023 Begin construction of mine and concentrator (for production of 6% Spodumene Concentrate) – Q3 2023 (subject to receipt of authorization) Begin production of Spodumene Co
Slide 19: Project Financing & Transaction Overview
PROJECT FINANCING & TRANSACTION OVERVIEW CONFIDENTIAL
Slide 20: Pro Forma Valuation
19 PRO FORMA VALUATION Valuation • Transaction implies $838M pro forma enterprise valuation • Implied pre - money market capitalization of $750M • Additional shares up to 10% of transaction closing consideration shares available as an earnout to European Lithium and its stockholders, subject to trad
Slide 21: Valuation Benchmarking: Comparable Developers
20 $838 16 Assumed Pro Forma Enterprise Value of $838M $972 $3,220 $3,370 $1,550 $2,550 $1,160 $628 $700 $1,020 $920 $1,790 $3,218 $3,262 $1,523 $2,443 $1,023 $521 $604 $957 $903 $1,747 72 72 25 76 30 36 10 30 26 41 EV Attributable 2024E Production (kt LCE) IMPLIED MARKET CAPITALIZATION VS PEERS (US
Slide 22: Valuation Benchmarking: U.S.-Listed Battery Materials
21 VALUATION BENCHMARKING: U.S. - LISTED BATTERY MATERIALS Source: Market Capitalizations — FactSet Data (10/20/2022), Historical Market Capitalizations – YCharts, USD/AUD=0.63 CONFIDENTIAL 288% 377% 106% 1,337% 247% US$M IMPLIED MARKET CAPITALIZATION VS US - LISTED BATTERY MATERIALS PEE RS (US$M) C
Slide 23: Valuation Comparable: Core Lithium
22 ENTERPRISE VALUE (US$M) (1) FULL PERMITTED LI CONCENTRATE PRODUCTION IN 2024E (2) BINDING OFFTAKE ARRANGEMENT ANNOUNCED (3) FEASIBILITY STAGE POST - TAX NPV (US$M) $1,523 DFS $119 $838 PFS $635 1.09x 9.20x 52x 61x 5.30x VALUATION COMPARABLE: CORE LITHIUM PRICE / NAV EV / 2024E PRODUCTION (KT LCE)
Slide 24: Clear Path to Valuation Re-Rate
23 $972M 2 $1,020M $903M $2,550M $1,160M $1,523M $3,370M $9,645M - $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M $4,000M $4,500M $5,000M Post - Scoping Study Post Feasibility Study Construction Production Development Stage Peer Group Valuations (1) Key Milestones to Unlock Value: Licensing A
Slide 25: Offtake Agreements: Historical Price Change
24 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 DATE OFFTAKE AGREEMENT DETAILS 1M CHANGE (%) 9/28/2020 Piedmont Lithium signs offtake agreement with Tesla for 160ktpa for 5 years (NASDAQ:PLL) 93% 1/11/2021 Sayona Mining secures investment and offtake from Piedmont Lit
Slide 26: Appendix 1: Lithium Market Overview
APPENDIX 1: LITHIUM MARKET OVERVIEW CONFIDENTIAL
Slide 27: Demand Gap: Global Lithium Market
26 0 0.5 1 1.5 2 2.5 2022 Demand 2030 Demand Production (Mt LCE) Other Producers DEMAND GAP: GLOBAL LITHIUM MARKET GLOBAL LCE PRODUCTION SHARE BY CURRENT PRODUCERS ~4x increase in Global LCE Demand Source: Bloomberg New Energy Finance CONFIDENTIAL
Slide 28: Lithium Price and Supply
27 • It is increasingly likely that a balanced market will occur in 2H of 2025 under a base - case demand scenario. Demand being brought forward from 2025 - 27 has been minimized but the market remains in surplus for these years. • If an upside scenario (+15% is used), the market will not balance in
Slide 29: Appendix 2: Risk Factors
APPENDIX 2: RISK FACTORS CONFIDENTIAL
Slide 30: Risk Factors
29 All references to the “company,” “we,” “us” or “our” refer to European Lithium Ltd (“European Lithium”) and European Lithium AT (Investment) Ltd . (the “company”) and their consolidated entities prior to the Potential Business Combination, and for periods following the closing of the Potential Bu
Slide 31: Operating Risks
30 Operating Risks • The development of mining operations at the project is dependent on a number of factors, many of which are beyond our control . If we commence production at the project, our operations may be disrupted by a variety of risks and hazards that could have a material adverse effect o
Slide 32: Critical Metals Corp
CRITICAL METALS CORP www.criticalmetalscorp.com CONFIDENTIAL