First Phosphate Corp. · CSE:PHOS
First Phosphate — Investor Presentation (September 2024)
34 slides from First Phosphate's investor presentation, Sep 18, 2024
Slide 1: Investor Presentation
CSE:PHOS | FSE:KD0 | OTC : FRSPF Investor Presentation 1 September 18, 2024 High Purity Phosphate for the Lithium Iron Phosphate (LFP) Battery Industry
Slide 2: Legal Disclaimer
Legal Disclaimer GENERAL The information contained in this presentation has been prepared by First Phosphate Corp. (the “Company”, “we”, “us”, or “our”) and contains confidential information pertaining to, among other things, the business, assets, operations, capital, management and prospects of the
Slide 3: Seizing the Opportunity in LFP Battery
Seizing the Opportunity in LFP Battery In China, LFP batteries have become the dominant chemistry over NMC batteries accounting for 67% of total battery output as of Q1 2023. North America Inflation Reduction Act mandates that electric battery production must be on-shored within the coming year. LFP
Slide 4: LFP is Versatile Technology of Mass Market Adoption
LFP is Versatile Technology of Mass Market Adoption • Superior fire safety (much less heat produced) • Well defined performance (lower capacity loss, structurally more stable) • Lowest cost battery on the market (input material pricing) • Longer longer life, lower degradation (millions of miles in s
Slide 5: Focused on High Purity Phosphate for LFP Battery
Focused on High Purity Phosphate for LFP Battery ● Fully dedicated to extracting and purifying phosphate exclusively for the Lithium Iron Phosphate (“LFP”) battery industry. ● Owners of rare, high-purity igneous phosphate rock deposit devoid of high concentrations of harmful elements. ● Saleable sec
Slide 6: Bégin-Lamarche Property: Proven High Purity Deposit for LFP Battery
Bégin-Lamarche Property : Proven High Purity Deposit for LFP Battery 6 ● 2.5 kilometers in length Converts almost fully into ● Mineralization starts at surface and descends to an average depth of 250 meters Purified Phosphoric Acid ● Remains open at depth (PPA) for LFP Battery ● 3 zones comprise inf
Slide 7: Technology to matter in the LFP Battery Ecosystem
Technology to matter in the LFP Battery Ecosystem Advanced LFP Cathode Battery Cells Battery Extraction Concentration EV Assembly Refinement Active Material and Packs Recycling Upstream (own) Concentrate Midstream (in partnership) Advanced LFP Grade LFP Cathode Downstream LFP Battery (clients) Minin
Slide 8: Vertical Integration and Logistical Advantage
Vertical Integration and Logistical Advantage Key Advantages ● Manageable mine size near infrastructure ● CapEx aimed at value-add technology sector (not fertilizer) ● Vertically integrated facilities to get to LFP CAM while driving out costs ● Recycling of process 8 materials including resaleable g
Slide 9: Project De-risking through Key Relationships
Project De-risking through Key Relationships ✔ Major Phosphate Rock Offtake ✔ On-shoring of 40,000t of LFP CAM ✔ LOI for USD $170 million of financing ✔ Secures supply of sulfuric acid to Port Saguenay ✔ PPA Processing & Technology Transfer ✔ provision of raw materials ✔ Up to 10 year max repayment
Slide 10: Management that Meets and Beats Milestones
Management that Meets and Beats Milestones Q1-Q2 Q3-Q4 Q1-Q2 Q3-Q4 2022 2023 2023 2024 2024 2025 ✔ Consolidation of over 1,500 km2 ✔ Listing of shares on the ✔ Phosphate concentration pilot ✔ Completion of 25,000 m ✔ Further investigation into ✔ Investigate potential start of NSR free phosphate CSE,
Slide 11: Tight Share Structure and Debt Free Ownership
Tight Share Structure and Debt Free Canadian Securities Exchange (CSE): PHOS Frankfurt Stock Exchange (FSE): KD0 US OTC: FRSPF Ownership Share Structure Data Associates, Friends & Family, Public Float Holders Share Price (as at Sept 16, 2024) $0.26/sh High Net Worth, Institutions 35% 35% Market Capi
Slide 12: Board and Management
Board and Management CEO and Director - John Passalacqua, Int'l MBA, Chairman - Laurence W. Zeifman, CPA, is an audit is an international business strategist with over 35 partner of Zeifmans LLP, a mid-sized Toronto public years of extensive technology and capital markets accounting firm. Larry has
Slide 13: Management & Advisory Board
Management & Advisory Board Manager, Public Relations - David Dufour, Project Development Manager - Mario Bouchard B.Sc.A, has 30 years experience in the development, (retired) was Assistant Deputy Minister for Strategic management of high-growth businesses in Saguenay, Industries and Major Economic
Slide 14: Advisory Board / Industry Partners
Advisory Board / Industry Partners Yves Caprara is an international expert in purified Queen’s University - Dr. Sandeep Banerjee has purified phosphoric acid technology & applications with 16+ years of global experience in the mineralogical focus on sustainability. He was CEO of Prayon SA, and geoch
Slide 15: First Saguenay FP / LFP Plant
First Saguenay FP / LFP Plant Press Conference for First Saguenay on September 9, 2024 attended by regional, provincial and federal elected officials and economic development professionals ● First Saguenay planned LFP Plant in La Baie, Saguenay,15 Lac-St-Jean, Québec ● Phase 1: 10,000 tonnes per ann
Slide 16: It all Starts with the Highest Purity Source of Phosphate
It all Starts with the Highest Purity Source of Phosphate 95% of the World’s Phosphate is found in heavy metal laden Sedimentary Rock. Only 4% of the World’s Phosphate is found in Clean Igneous Carbonatite Rock. Only 1% of the World’s Phosphate is found in Even Cleaner Igneous Anorthosite found most
Slide 17: Global Purified Phosphoric Acid Supply is Going to be a Big Issue
Global Purified Phosphoric Acid Supply is Going to be a Big Issue CRU Group reports conservatively that new LFP demand requires 95-120% increase in current supply of PPA by 2045 North American demand increase must be from domestic sources to 17 meet supply chain integrity concerns and government fund
Slide 18: How Much Phosphate in an LFP Battery?
How Much Phosphate in an LFP Battery? LFP Inputs LFP Powder (LiFePO4) LFP Battery 18 Source: https://www.allaboutcircuits.com Purified Phosphoric Acid (H3PO4): 28% Phosphate (PO4): 61% By 2030, the North American LFP Iron Sulphate (FeSO4): 62% Iron (Fe): 35% Battery Industry will require over 35% mo
Slide 19: Estimated Demand for LFP Cathode Active Material (EVs Alone)
Estimated Demand for LFP Cathode Active Material (EVs Alone) LFP Cam Demand - North America $ LFP Cam Business - North America Source: DeauVision Srl Source: DeauVision Srl 19 LFP Cathode Active Material Industry Projections ($USD Billions) 009 CSE:PHOS | FSE: KD0 | OTC : FRSPF confidential 19
Slide 20: Where is Phosphate Currently Produced?
Where is Phosphate Currently Produced? Phosphate Reserves in Mt Source: Global Status of Phosphorus, 2016 Peak Phosphorus Curve 20 Sedimentary Rock Igneous Rock Source: The Story of Phosphorus: Global Food Security and Food for Thought (2009) CSE:PHOS | FSE: KD0 | OTC : FRSPF confidential 20
Slide 21: Phosphate Pricing Follows Food and not the Battery Market
Phosphate Pricing Follows Food and not the Battery Market ● Agricultural need for fertilizer ● Growing Global Population ● Conflicts, Trade Wars, Ethical Supply Concerns Phosphate (phosphorous) is ● Supply Security and Sourcing ● Barriers to Entry on Mining and Refinement designated as a critical mi
Slide 22: Purified Phosphoric Acid is a Capacity-Constrained Specialty Product
Purified Phosphoric Acid is a Capacity-Constrained Specialty Product Phosphate bearing rock is crushed and processed to obtain Concentrated Phosphate Rock (25%-41% purity level). Sedimentary Rock (25%-34%). Igneous Rock (38%-41%). Concentrated Phosphate Rock is then processed into medium purity Merch
Slide 23: Over 90% of LFP Batteries Are Currently Made in China
Over 90% of LFP Batteries Are Currently Made in China Leading Global LFP Manufacturers: ● CATL (China) ● BYD (China) ● Panasonic (Japan) ● LGES (South Korea) ● SK Innovation (South Korea) Sources: $ https://www.saurenergy.com/ev-storage/the-top-5-ev-battery-manufacturers-in-the-world $ 49.9 23 https
Slide 24: Domestic North American LFP Supply Required Urgently
Domestic North American LFP Supply Required Urgently “The low abundance of sulfide gangue minerals suggests that the environmental risks of acid mine drainage from tailings would be minimal. Such low concentrations of deleterious trace elements and sulfide minerals make the Lac à l'Orignal deposit a
Slide 25: Method of Producing Purified Phosphoric Acid Matters
Method of Producing Purified Phosphoric Acid Matters Thermal Process – Sedimentary Rock Wet Process – Sedimentary Rock Wet Process – Igneous Rock 25 Large % of Large % of Small % of Small % of Large % of Purified Phosphoric Merchant Grade Purified Phosphoric Merchant Grade Purified Phosphoric Acid (P
Slide 26: Igneous Rock Phosphate Resolves Radioactive Gypsum Issue
Igneous Rock Phosphate Resolves Radioactive Gypsum Issue Sedimentary Rock Creates Gypsum Slag Piles Igneous Rock Facilitates Circular Economy Only Igneous Phosphate rock can meet full The current method of producing responsibility rigours of the LFP battery phosphoric acid creates large gypsum slag
Slide 27: LFP Cathode Active Material Production - Traditional Method
LFP Cathode Active Material Production - Traditional Method Purified Phosphoric Acid H3PO4 Lithium Phosphate Carbon + Li3PO4 Source Lithium Iron Phosphate (LFP) LiOH or Li2CO3 H2O or CO2 Li3PO4 + Electric FePO4 + LiFePO4 Lithium Hydroxide or Carbonate Carbon Source Furnace Purified Phosphoric Acid M
Slide 28: LFP Cathode Active Material Production - Newer Methods
LFP Cathode Active Material Production - Newer Methods Reactor Vessel Carbon LiOH Source Lithium Hydroxide FeSO4 LiFePO4 Synthesis Electric Wet Milling Drying Mixing Iron Sulfate Furnace Calcination at 1000°C H3PO4 Purified Phosphoric Acid H2 O 28 SO4− Electrical Consumption CSE:PHOS | FSE: KD0 | OT
Slide 29: Phosphate Public Company Comparables
Phosphate Public Company Comparables North High Purity LFP Battery Symbol Exchange Name Phosphate Deposit Location American Igneous Focused Source PHOS CSE First Phosphate Corp. Saguenay (Quebec) Yes Yes Yes AEV ASX Avenira Ltd. Wonarah (Australia) No Partially No DAN TSXV Arianne Phosphate Inc. Lac
Slide 30: Thank you.
Thank you. John Passalacqua, CEO john@firstphosphate.com Armand Mackenzie, Vice President armand@firstphosphate.com David Dufour, Public Relations david@firstphosphate.com Mario Bouchard, Project Development mario@firstphosphate.com 30 Bennett Kurtz, CFO bennett@firstphosphate.com www.FirstPhosphate
Slide 31: Statutory Rights of Rescission
Statutory Rights of Rescission Securities legislation in certain of the provinces of Canada provides purchasers with rights of rescission or damages, or both, where an offering memorandum or any amendment to it contains a misrepresentation. A “misrepresentation” is an untrue statement of a material
Slide 32: Statutory Rights of Rescission
Statutory Rights of Rescission Saskatchewan Investors Under Saskatchewan securities legislation, certain purchasers who purchase securities offered by an offering memorandum during the period of distribution will have a statutory right of action for damages against the issuer, every director and pro
Slide 33: Statutory Rights of Rescission
Statutory Rights of Rescission New Brunswick Investors Under New Brunswick securities legislation, certain purchasers who purchase securities offered by an offering memorandum during the period of distribution will have a statutory right of action for damages, or while still the owner of the securit
Slide 34: Statutory Rights of Rescission
Statutory Rights of Rescission Prince Edward Island Investors If an offering memorandum, together with any amendment thereto, is delivered to a purchaser and the offering memorandum, or any amendment thereto, contains a misrepresentation, a purchaser has, without regard to whether the purchaser reli
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