Lomiko Metals — Investor Presentation (April 2022)
34 slides from Lomiko Metals's investor presentation, April 2022
Slide 1: New Vision. New Strategy. New Energy.
New Vision. New Strategy. New Energy. Creating a world of abundant renewable energy With Canadian critical minerals Lomiko Metals Inc. April 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation is not a prospectus, offering memorandum or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscr
Slide 3: Land Acknowledgement
Land Acknowledgement We would like to begin by acknowledging that the land/projects where we operate are located within the traditional land of the Algonquin Anishnaabeg and Cree Eeyou Istchee Peoples. Our vision is to embrace Indigenous people and Indigenous values within our projects in order to d
Slide 4: The mission: build a major new energy platform in Canada
The mission build a major new energy platform in Canada A people first company Responsible acceleration Develop projects to Vision and Wealth creation production values potential Largest inferred resource in the 1 of 16 ECOLOGO-certified High potential lithium greenfields region & in Canada 46
Slide 5: Leaders with operating experience and shared purpose
Leaders with operating experience and shared purpose Belinda Labatte, CEO Gordana Slepcev, COO Vince Osbourne, CFO CFA, MBA, ICD.D P.Eng., M.Sc. CMA, CBV • Chief • Senior finance Corporate professional Development with Sobeys Officer for • Over 19 years Mandalay experience in Resources finance • Ove
Slide 6: Visionary board of directors and advisor
Visionary board of directors and advisor Eric Levy A. Paul Gill Anu Dhir Sagiv Shiv Chair of Corporate Compensation, Executive Chair Lead Independent Director Chair of Audit Committee 1,3 Governance and Nominating Committee 3 Chair of ESG Committee 1,2 Co-founder of a Managing Director Head of Osler
Slide 7: ECOLOGO certified: Designed for Quebec mineral exploration sector
ECOLOGO certified Designed for Quebec mineral exploration sector Ecologo (UL) is an independent certification specifically designed for mineral exploration sector in Quebec • The Quebec Mineral Exploration Association (“QMEA”) ECOLOGO to recognize and promote environmental, social and economic best
Slide 8: Graphite: La Loutre belongs to crystalline flake graphite
Graphite: La Loutre belongs to crystalline flake graphite Natural Graphite deposits of economic interest are grouped into three Synthetic Graphite is made by heating high-carbon materials main categories, as noted below and illustrated: like petroleum coke and coal-tar pitch to temperatures in • Amo
Slide 9: Canada's federal gov't announces all new cars electric by 2035
July 2021 Canada's federal gov't announces: All of Canada’s new cars will be electric by 2035 The challenge: To reach even 50% of EV penetration in vehicles requires 20x increase in battery supply. Renewable energy supercentres, longer life batteries, and charging stations can and should be sourced
Slide 10: 1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate
1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate 1.5m EVs in Quebec by 2030 means 150 GWh of capacity needed for batteries per Annum • Noting that current commitment by Lion Electric, Britishvolt and Stromvolt of 75GWh is 50% short of required capacity • Spherical Graphite requireme
Slide 11: Your phone runs on a rechargeable lithium-ion battery
Your phone runs on a rechargeable lithium-ion battery, as do most of your other electronic devices • The first battery was invented in 1800 by Alessandro Volta What are batteries made of? • In 1859, Gaston Planté invented the first rechargeable battery. A battery is a collection of one or more cells
Slide 12: Battery suppliers in North America are certain customers & potential investors
Battery suppliers in North America are certain customers & potential investors Battery manufacturers and GWh capacity www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 12
Slide 13: Flake graphite demand up 11% in 2021
Flake graphite demand up 11% in 2021 EV Breakdown Projected Sales (units) EV sales 90,000,000 Total BEV and PHEV sales are on track to top 11 M units by as 80,000,000 early as 2023, with forecast for average battery pack sizes 70,000,000 increasing 60,000,000 • Anode growth accelerates following the
Slide 14: Graphite shortfall starting in 2027
Graphite shortfall starting in 2027 Shortfall to increase to 8Mt by 2040 Graphite Market Balance (Mt) 12,000,000 4,000,000 Projected Anode Demand (Mt) 10,000,000 2,000,000 9,000,000 0 8,000,000 8,000,000 7,000,000 -2,000,000 6,000,000 6,000,000 -4,000,000 5,000,000 4,000,000 4,000,000 -6,000,000 3,0
Slide 15: Flake graphite price forecast 2021-2040
Flake graphite price forecast 2021-2040: short term instability, long term uptick Graphite price is dependent on the flake size and purity. Benchmark Mineral Intelligence Q4 2021 forecast sees increased pricing for natural graphite flakes. Mesh size - microns 2021 /US$/t Long-term shortfall in the g
Slide 16: La Loutre graphite project close to infrastructure
La Loutre graphite project close to infrastructure with great geological setting La Loutre Stage of development: Preliminary Economic Assessment ("PEA") Starting Preliminary Feasibility Study Concession size: 2,867 ha Location: Quebec, Papineau - 192 km Highway to Port of Montreal – access t
Slide 17: La Loutre Resource Estimate: focus on conversion
La Loutre Resource Estimate: focus on conversion La Loutre Resource Estimate (Effective Date: May 14, 2021) - PEA Cutoff EV Deposit Battery Deposit Total (%) Run-of- In-Situ Run-of- In-Situ Run-of- In-Situ Graphite Class Mine Grade Mine Grade Mine Grade (kt) Tonnage Graphite Tonnage Graphite Tonnage
Slide 18: La Loutre: PEA establishes a critical path ahead
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking LOM plant production of 21,8 Mtonnes of mill feed at 6.78% Cg diluted. Graphite concentrate production at 1.43 Mtonnes La Loutre Graphite Project grading 95.0% Cg. 14.7-year mine life producing 100,000tpy
Slide 19: La Loutre: environmental studies key next steps
La Loutre: environmental studies key next steps No conventional tailings facilities • Waste rock and tailings co-disposed WASTE ROCK & EV ZONE CODISPOSAL PILE • Efficient site water management Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits Stockpiles
Slide 20: Exploration program
Exploration program 2022 Infill and extension drilling along the strike of the deposits to confirm ore body shape, quality and extents 18,700m drill program: 114 infill holes (16,700 m) and 13 extension holes (2,000m) BATTERY EV ZONE ZONE 52 drill holes in EV Zone -9,000meters drilled to date 49 h
Slide 21: Additional exploration potential: Step out in B and C zones
Additional exploration potential Step out in B and C zones New graphite zones Follow up on preliminary greenfield exploration with drilling at Targets B & C. • Potential for 5,000 m drill program (15-20 holes) www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 21 Source: NI 43-101 Technical Rep
Slide 22: La Loutre study priorities Phase 1
La Loutre study priorities Phase 1 Continue with Community and First Nations engagement and communications Continue with environmental baseline studies • Complete 4 full seasons of Environmental Baseline studies and submit Project registration for La Loutre by end of 2022 De-risk resource base • Und
Slide 23: La Loutre study priorities Phase 2
La Loutre study priorities Phase 2 Other PFS studies • Initiate and complete geotechnical studies for pit structure and stability • Selection of additional exploration drill targets south of EV and Battery zones • Costing exercises to decrease initial capital requirements (contracting or leasing equ
Slide 24: Corporate budget requirements Phase 1 and 2 La Loutre
Corporate budget requirements Phase 1 and 2 La Loutre Phase 1 Cost ($M) Phase 2 Cost ($M) Resource Drilling $3.5 Mining & Mining Geotechnical $0.7 Metallurgy $0.6 Infrastructure Geotechnical $1.0 Environmental $0.7 Power $0.1 Total $4.8 Waste Disposal Facility $0.4 Environmental $1.3 Pre-Feasibility
Slide 25: NPV scenario analysis: leveraged to graphite price increases
NPV scenario analysis: Positively leveraged to expected graphite price increases PEA used a graphite concentrate selling price of US $916/t. The current forecast selling price is US $1000/t of graphite concentrate (source: Benchmark). Graphite Price Post-Tax NPV Post-Tax IRR % Payback (yrs.) (US$/t)
Slide 26: Bourier lithium assets close to infrastructure
Bourier lithium assets close to infrastructure Bourier Bourier Lithium Project Stage of development: Early-Stage exploration Concession size: 10,252 ha Location: Quebec, Nemaska Lomiko to earn up to 70% of Bourier with milestone payments – first kop Geology - volcanic-sedimentary unit Lithiu
Slide 27: Bourier lithium project: highly prospective region
Bourier lithium project: highly prospective region Adjacent Properties: Galaxy Resources Nemaska Lithium Critical Elements Rose Tantalum Project Lemare Property: www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 27 Source: Critical Elements Corp.
Slide 28: Bourier lithium project identifies 15 exploration targets
Bourier lithium project identifies 15 exploration targets Bourier Located on Nemiscau greenstone belt and Critical Elements south-east of the Cree Eeyou Istchee James Bay territory in Quebec. GoldSpot’s AI analysis revealed the considerable lithium potential Next steps • Phase 1: Surface sampl
Slide 29: Capital Structure
Capital Structure As at Mar 31, 2022 Shares Issued & Outstanding 277.7M Market Cap (Mar 31) $22.2M Options 13.4M Cash $5.9M Warrants 91.3M Debt $- Share Units (PSU/RSU/DSU) 8.9M Total Enterprise Value $16.3M Fully Diluted 391.3M Management & Insider Ownership % Source: Company Data 6.6% www.lomiko.c
Slide 30: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Mar 31, 2022 Cash & Cash Market Cap Measured Indicated Inferred EV/Resource Symbol Price Company Name Shares O/S Equivalents TEV (Current M) (Current M) (Mt) (Mt) (Mt) (M&I) TSXV:NOU 8.63 Nouveau Monde Graphite Inc 55 62 419 477 24.0
Slide 31: Lomiko generating momentum in 2022
Lomiko generating momentum in 2022 STRONG CONDITIONS FOR RE-RATE CATALYSTS GRAPHITE Large resource 70mt EV BATTERY Positive PEA @ 4.1%cg (Inferred DEMAND TO 2022 PFS work completed for La and Indicated) Annual growth begins Loutre in 2021 rate: 30% 3mt of graphite 18,000m concentrate in-situ 130 dri
Slide 32: North American demand requires domestic graphite resources
North American demand requires domestic graphite resources • Current capacity 769 GWH • Need for 800,000 of SPG • Or 1.6Mt of the graphite concentrate Graphite and lithium in supply bottleneck Source: Benchmark and North American Battery Initiatives www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8
Slide 33: How we will create success for all stakeholders
How we will create success for all stakeholders Listen We will respectfully listen to communities and First Peoples concerns and considerations in order to maintain honour and respect Discuss We will discuss mutually acceptable opportunities in order to achieve a working partnership within all commu
Slide 34: Global battery supply opportunities are significant
Global battery supply opportunities are significant Battery manufacturers and GWH capacity worldwide Current capacity 600 GWh Projected capacity by 2030 5,500GWh (China 3,000GWh) China accounted for 90% of the world’s battery manufacturing in 2021. By the end of the decade, the region is expec