Slide 1: Q1 Results & Progress
Q1 Results & Progress ONSHORING THE EV SUPPLY CHAIN Electra Q1 Earnings Call Presentation May 11, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements All statements in this presentation other than statements of historical fact constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislati
Slide 3: Today's presenters
Today’s presenters Trent Mell Craig Cunningham Renata Cardoso CEO CFO VP Sustainability NASDAQ: ELBM | TSX.V: ELBM 3
Slide 4: Q1 highlights
Q1 highlights Completed first plant-scale recycling of back mass material in North America Recovered and produced high-quality nickel/cobalt, graphite and lithium carbonate products Increased liquidity by US$14M with convertible debt offering Sold non-core assets in Canadian cobalt belt Issued updat
Slide 5: Sustainability Update
Fleet Sustainability Update
Slide 6: Electra's commitment to ESG
Electra’s commitment to ESG 2022 CORE VALUES MISSION Respect for the planet and for future generations Provide low-carbon, Respect for ethical and traceable materials to the our employees global battery supply Respect for the local chain while improving people’s lives communities Respect for our sha
Slide 7: Electra's sustainability framework
Electra’s sustainability framework Human Rights Climate Change Health & Safety Water People Development Life on Land Communities & Indigenous Peoples Circularity and Waste Diversity, Equity and Inclusion Ethics, Compliance & Transparency Supply Chain Framework helped to underpin ESG activities in 20
Slide 8: Measuring ESG performance
Measuring ESG performance Topic Metric 2022 2022 Scope 1 emissions (tCO2e) 118 311 Scope 2 emissions (tCO2e) 8 1 Climate change Total Scope 3 emissions (tCO2e) 1,382 1,228 Water Total water withdrawn – Surface water (L) 1,935 834 Total number of employees 48 19 People & Diversity Percentage of women
Slide 9: Q1 Financial Highlights
t Te asa jp tlectra | Q1 Financial Highlights
Slide 10: Q1 liquidity position
Q1 liquidity position Liquidity $12.9 o Balance sheet changes due to US$51M convertible debt offering and timing of capital spend towards refinery project $8.4 $ Millions CDN o Q1’s liquidity excludes C$5.1M of expected government funding $11.2 o Payments against refinery project have reduced liquid
Slide 11: Convertible debt financing
Convertible debt financing o US$51M principal amount of 8.99% secured convertible notes US$15M o Repurchased US$36M of outstanding notes at par value, plus accrued interest o US$2.48 conversion price o 10.8M warrants exercisable over 5 years at a US$2.48 Gross proceeds conversion price o Minimum cas
Slide 12: Refinery project economics
Refinery project economics
Slide 13: Guidance update
Guidance update Updated project costs: o Guidance withdrawn on Feb. 14, 2023 US$115 to $US125M o Completed re-baseline engineering report on refinery project timelines and costs o Report prepared by EPCM contractor Completion of re- o Review underway by 3rd party-estimator baseline report helps o In
Slide 14: Variances to original capital estimate
Variances to original capital estimate* Dir. Labour & Materials Freight Const. Indirects EPCM Owners’ Costs Fixed Fees +59% +513% +556% +174% +52% $73.4 $4.9 $11.8 $13.7 $8.2 $5.6 $46.1 $5.4 $5.0 $0.8 $1.8 $0.0 Original Re- Original Re- Original Re- Original Re- Original Re- Original Re- baseline ba
Slide 15: Reconciliation of updated capital costs
Reconciliation of updated capital costs Original Estimate $62.7 Materials & Equipment $19.1 Construct. $7.6 Existing Equipment $6.5 Other $5.8 Contractor Fees $5.3 Eng. & procurement $4.2 Freight $3.8 Re-baseline Low $115.0 Construct. $4.3 Other $2.5 Contractor Fees $2.4 Re-baseline High $124.2 Incr
Slide 16: Refinery project next steps
Refinery project next steps o Accelerate focus on project funding o 3rd party-estimator to finalize report review o Continue to receive long-lead items o Limit capital expenditures o Shift construction work to owners’ team Timeline to complete project is subject to additional capital NASDAQ: ELBM |
Slide 17: Black mass scoping study
Black mass scoping study
Slide 18: Context for black mass scoping study
Context for black mass scoping study Trial results have been extremely positive Lithium-carbonate production is a potential game changer Strong interest in trial results from various stakeholders Outlook for black mass recycling is favourable Signed MOU with Three Fires Group to form JV Urgency to a
Slide 19: Highlights of black mass scoping study
Highlights of black mass scoping study EBITDA Forecasts $12.6 o Capital spend: US$6M $10.4 $9.9 $9.6 o Internal rate of return: 127% $US Millions o Payback: 1 to 2 years o 2,500 tonnes of processed material /YR Year 1 Year 2 Year 3 Year 4 Low capital intensity with a high rate of return NASDAQ: ELBM
Slide 20: Next steps with black mass trial
Next steps with black mass trial o First commercial delivery anticipated in Q2 o Ongoing refinement of hydrometallurgical process o Discussions with potential battery supply chain partners o Evaluate success of trial results o Determine path to commercialization Trial results to date have exceeded e
Slide 21: Outlook
Sale Outlook is
Slide 22: Near-term milestones
Near-term milestones o Q2 – Launch of strategic review process o Q2 – Shipment of products to customers o Q2 – Delivery of key equipment to refinery o H2 2023 – Bécancour prefeasibility study Multiple catalysts for value creation NASDAQ: ELBM | TSX.V: ELBM 22
Slide 23: Questions?
Questions?
Slide 24: Electra Battery Materials
Electra Battery Materials NASDAQ: ELBM TSX-V: ELBM Joe Racanelli, VP Investor Relations info@ElectraBMC.com 416.900.3891