Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (May 2023)
41 slides from Almonty Industries's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION May 2023 ADDRESS INVESTOR PRESENTATION CONTACT US 100 KING ST W PREPARED BY ALMONTY INDUSTRIES INC: +1 647 438-9766 ONTARIO, M5X 1A9 PRESIDENT & CEO: LEWIS BLACK info@almonty.com CANADA 1
Slide 2: Disclaimer for Forward-Looking Statements
DISCLAIMER FOR FORWARD-LOOKING STATEMENTS When used in this investor presentation, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to id
Slide 3: Becoming the Largest Tungsten Producer Outside China
BECOMING THE LARGEST TUNGSTEN PRODUCER OUTSIDE CHINA THE COMPANY THE MARKET ALMONTY PRODUCTION TARGET 2026 Tungsten (Wolfram*) producer W 1 Mine in production 1 Mine under construction 30% OF NON-CHINA TUNGSTEN 2 Development projects 1 Past producing mine 7% OF GLOBAL SUPPLY Masterpiece Sangdong 100
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Issued Capital Cash TSX share price TSX:AII in C$ 223m C$ 6.3m1 1.5 1.5 Ordinary Shares as of March 31, 2023 Market Cap Long-term Debt C$ 149m C$ 50.9m1 1.01 Includes loans from existing shareholders At 0.67 C$ on May 2nd, 2023 as at March 31, 2023 C$ 0.67 Project Finance Total Or
Slide 5: Almonty's Global Presence
ALMONTY‘S GLOBAL PRESENCE Diversified and Experienced Operator in Conflict-free Regions 3 1 44 2 + Downstream opportunity in S. Korea see slide 16ff. PRODUCING ASSET UNDER CONSTRUCTION DEVELOPMENT PROJECTS 1 2 3 4 PANASQUEIRA – PORTUGAL SANGDONG – SOUTH KOREA VALTREIXAL – SPAIN LOS SANTOS – SPAIN AC
Slide 6: Tungsten Price on the Rise
TUNGSTEN PRICE ON THE RISE Tungsten price in US$ per MTU Tight market with geopolitical tension $350 $350 $328 KOREA — imports 94.7% of all tungsten from China and is the Highly profitable price zone largest per capita consumer worldwide. $300 $300 China & Russia dependency increases market tensions
Slide 7: Main Reasons for Growing Tungsten Demand
3 MAIN REASONS FOR GROWING TUNGSTEN DEMAND Electric Vehicle Boom could boost Tungsten Tungsten is an increasingly important component in the production of EV batteries due to its ability to enhance their high energy density Development in the battery field ongoing as performance, safety and cost-eff
Slide 8: Sangdong
SANGDONG 8
Slide 9: Shovel Ready Project in a Supportive Tier 1 Jurisdiction
SHOVEL READY PROJECT IN A SUPPORTIVE TIER 1 JURISDICTION Low pre-production capex, great economics & long mine life US$75m $72m Start-Up Capex Annual EBITDA @1.2m tons & $300/mtu $110/mtu 90 years Cash cost per ton Potential Mine Life Fully permitted, construction well advanced, US$32.3m drawn under
Slide 10: Building Sangdong Mine – Project Management Team
BUILDING SANGDONG MINE – PROJECT MANAGEMENT TEAM Lewis Black Emil Corfu Director, President and CEO Director of Plant Management 20+ years experience in mine plant construction and operation; ex-Metso. Over 16 years experience in the tungsten mining industry. Responsible for engineering, constructio
Slide 11: Sangdong Has a Unique Tier-1 Ore Body
SANGDONG HAS A UNIQUE TIER-1 ORE BODY Globally outstanding in terms of size, grades and recovery rates Peer Group comparison Contained Metal & Grade (total resource) 1.00% Mt Producing Sangdong Dolphin Hemerdon Mulgine Watershed Construction/Development 0.90% Dolphin Financing, Study or Exploration
Slide 12: Global Tungsten Production Cost Curve
GLOBAL TUNGSTEN PRODUCTION COST CURVE* Sangdong expected to be amongst the lowest cost producers globally 400 - ALMONTY MINES - CHINESE MINES State-owned, large companies in China - OTHER MINES NOT LOCATED IN CHINA US$205-245/MTU 300 Size of block - % of total tungsten output US$ per MTU 200 ESTIMAT
Slide 13: Sangdong Orebody Dimensions
SANGDONG OREBODY DIMENSIONS Massive orebody 187km SE of Seoul Seoul Sangdong Mine S MINE PORTAL N WTC ONE 546m FOOTWALL 1-5 EIFFEL TOWER 330m UPPER & LOWER 1 km / 0.62mi HANGING WALL 13
Slide 14: Project Financing & Offtake Agreed
PROJECT FINANCING & OFFTAKE AGREED Reputable partners confirm high quality project quality 15-year offtake agreement 70% of CAPEX financed through Government guarantee guarantees ~US$580M cashflow senior project finance loan Global tungsten product major Long-standing partner of Austrian partners fo
Slide 15: Sangdong Phase I - Outlook
SANGDONG PHASE I - OUTLOOK Key milestones ahead – nearing completion 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRAWDOWN & GRACE PERIOD Development Fund REPAYMENT PLANT CONSTRUCTION COMPLETION & Plant COMMISSIONING Construction 12-MONTH RAMP-UP MINE DEVELOPMENT & EARTHWORK/DRIFT Mining & Min
Slide 16: Sangdong Phase II – Optimizing Economics
SANGDONG PHASE II – OPTIMIZING ECONOMICS Duplicate throughput within first years of production Sangong Phase 2 – Extension Case Initial phase 1 throughput capacity, the life of mine (LOM) of the project is in between 60 and 70 years As there is no technical or financial justification for keeping the
Slide 17: Downstream Opportunity at a Glance (I/III)
DOWNSTREAM OPPORTUNITY AT A GLANCE (I/III) Almonty’s potential to participate in the battery anode & cathode manufacturing industry South Korea and Key Demand Directions ALMONTY’S CURRENT PRODUCTION CHAIN 4 Reasons for the importantce of Tungsten Oxide PROCESSING 65% WO3 SUPPLY TO FACILITY CONCENTRA
Slide 18: Downstream Opportunity at a Glance (II/III)
DOWNSTREAM OPPORTUNITY AT A GLANCE (II/III) Key Factors & Financial Summary Phase I Phase II + Tungsten Project Summary (financed & in construction) Phase II Oxide (TO) plant Expected start of production 2025 2026/2027 2026/2027 WO3 production ~2,300 mtu ~4,750 mtu Tungsten Oxide gets produced from
Slide 19: Downstream Opportunity at a Glance (III/III)
DOWNSTREAM OPPORTUNITY AT A GLANCE (III/III) Tungsten Oxide Plant – Near future production 2023 2024 2025 2026 2027 2028 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Scoping Study Basic & Detail Engineering Studies & Engineering Authorizations Construction Plant Completion & Construction Comissioning Tungste
Slide 20: Panasqueira Key Facts
PANASQUIERA WO3 production for more than a century Located in Covilha, Portugal DEPOSIT SUMMARY Tonnage Historical production since the early 1900s WO3 Grades Current Status – Production KEY FACTS Production anticipated to last more than 20 years 10.6Mt 11.9Mt 3.0Mt Forecasted yearly production of ~
Slide 21: Panasqueira Tin Tungsten Mine
PANASQUEIRA TIN TUNGSTEN MINE External links to Videos* *Videos accessible at: https://almonty.com/project/panasqueira/ 21
Slide 22: Almonty Group Resource Summary
ALMONTY GROUP RESOURCE SUMMARY Classification Deposit Tonnage (kt) Grade (%) Contained metal (t) Sangdong 7,896 kt 0.47% 37,111 t TOTAL RESERVES Panasqueira 1,951 kt 0.20% 3,928 t (proven & probable) Los Santos 3,582 kt 0.23% 8,325 t Valtreixal 2,549 kt 0.34% 8,667 t Total 15,978 kt 0.36% 58,031 t S
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS Global leading tungsten producer with a diversified portfolio of assets WORLD Representing 30% of all tungsten outside of China and 7-10% of global supply at High grade & leading resource size CLASS MINE 90-year mine life with resources of 52Mt at ~0.44-0.49% WO3 US$75m with Ge
Slide 24: Corporate
CORPORATE 24
Slide 25: Almonty Group – Production & Financial Growth Profile
ALMONTY GROUP – PRODUCTION & FINANCIAL GROWTH PROFILE Los Santos Panasqueira Valtreixal Sangdong Base Case Pro-Forma Forecast – Almonty Combined* Sangdong Extension Sangdong Oxide Plant EBITDA/Share 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 400 400 0.6 350 Revenue (Left) 300 EBITDA
Slide 26: Sangdong ESG
SANGDONG ESG Equatorial principles and beyond. Assessment of environmental and social risks of major projects based on 10 principles, including 1 regular monitoring by independent third parties and intensive dialogues with the local population and their organizations. Almonty has agreed to develop t
Slide 27: Safety Code – Awareness Program
SAFETY CODE – AWARENESS PROGRAM Continuous investment for awareness raising and personnel training ISO45001:2018 Implementation Training Field tour to Beralt Mine of Almonty and Coursein SGS Korea Academy other mine plants to broaden AKTC staff’s knowledge and experience 27
Slide 28: Strong Ties with Local Community
STRONG TIES WITH LOCAL COMMUNITY 28
Slide 29: www.almonty.com
WWW.ALMONTY.COM ADDRESS INVESTOR PRESENTATION CONTACT US 100 KING ST W PREPARED BY ALMONTY INDUSTRIES INC: +1 647 438-9766 ONTARIO, M5X 1A9 PRESIDENT & CEO: LEWIS BLACK info@almonty.com CANADA 29
Slide 30: Appendix
APPENDIX 30
Slide 31: Appendix 1 – Board of Directors
APPENDIX 1 – BOARD OF DIRECTORS Director Experience • 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 mining industry. Lewis Black • Formerly Chairman and CEO of Primary Metals Inc.
Slide 32: Appendix 2 – Almonty Korea Moly
APPENDIX 2 – ALMONTY KOREA MOLY Large molybdenite-quartz vein stockwork below Sangdong’s tungsten deposit Almonty Korea Moly Project Almonty Korea Moly (AKM) Project with its large molybdenite-quartz vein stockwork is located on Sangdong’s existing fully permitted, mining lease, about 190km southeas
Slide 33: Appendix 3 – Tungsten Uses I/III – Main Uses of Tungsten
APPENDIX 3 – TUNGSTEN USES I/III – MAIN USES OF TUNGSTEN X-ray beam Inserts for aircraft 5G network infrastructure Automotive market 74 4f145d46s2 W Tungsten 183.84 Defense Ballistic equipment Semiconductors Source: Living Metals Nr. 17 - 2019, The Plansee Group 2019 33
Slide 34: Appendix 4 – Tungsten Uses II/III – Specific Uses in the High-Tech World
APPENDIX 4 – TUNGSTEN USES II/III – SPECIFIC USES IN THE HIGH-TECH WORLD Abrasion resistant metal for numerous 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
Slide 35: Appendix 5 – Tungsten Uses III/III – Military Applications of Tungsten
APPENDIX 5 – TUNGSTEN USES III/III – MILITARY APPLICATIONS OF TUNGSTEN Tungsten in Military Use High Melting Point: Tungsten's melting point of 3,442°C is the highest of any element, making it ideal for creating materials that can withstand high temperatures without deformation Hardness: Tungsten ca
Slide 36: Appendix 6 – Massive Growth Potential in Battery & Semiconductors
APPENDIX 6 – MASSIVE GROWTH POTENTIAL IN BATTERY & SEMICONDUCTORS TODAY TOMORROW SCARCE METAL HIGH DEPENDANCY ON CHINA DOWNSTREAM OPPORTUNITY IN KOREA Sangdong could solve dependency Battery and semiconductor industry offers massive additional growth potential for tungsten market Nano Tungsten Oxide
Slide 37: Appendix 7 – Korea – Construction of Sangdong Commenced in Mid 2021
APPENDIX 7 – KOREA – CONSTRUCTION OF SANGDONG COMMENCED IN MID 2021 Building the largest tungsten mine outside of China 37
Slide 38: Appendix 8 – Construction in "Ore"
APPENDIX 8 – CONSTRUCTION IN „ORE“ Mineralization at the surface allows for immediate start of production 38
Slide 39: Appendix 9 – Korea – Construction Update May 2023
APPENDIX 9 – KOREA – CONSTRUCTION UPDATE MAY 2023 99% of all equipment related to the Ball Mill and SAG Mill has arrived 39
Slide 40: Appendix 10 – Modernized Mine (KT LTE Network in Underground)
APPENDIX 10 – MODERNIZED MINE (KT LTE NETWORK IN UNDERGROUND) Technology innovation – Underground communication system To colleague in To family in AKTC Office (1.4km) Yeongwol County (31.9km) To CEO in New York (11,046.67km) Video call from 450meter point from Alfonso D gallery 40
Slide 41: www.almonty.com
WWW.ALMONTY.COM ADDRESS INVESTOR PRESENTATION CONTACT US 100 KING ST W PREPARED BY ALMONTY INDUSTRIES INC: +1 647 438-9766 ONTARIO, M5X 1A9 PRESIDENT & CEO: LEWIS BLACK info@almonty.com CANADA 41
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