Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (March 2024)
45 slides from Almonty Industries's investor presentation, March 2024
Slide 1: Investor Presentation: Building The World's Largest Tungsten Mine
TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F INVESTOR PRESENTATION Building The World‘s Largest Tungsten Mine March 2024 INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC. 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANA
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: Agenda
I ALMONTY AT A GLANCE II SANGDONG III PANASQUEIRA AGENDA IV CORPORATE V APPENDIX
Slide 4: I Almonty at a Glance
+ ALMONTY I ALMONTY AT A GLANCE
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT ISSUED CAPITAL MARKET CAP TSX SHARE PRICE TSX:AII in C$ 244.2m C$ 150.5m 1,5 Common Shares At C$ 0.61 on March 12th, 2024 CASH LONG-TERM DEBT C$ 10.9m C$65.2m 1 as at September 30, 2023 Includes loans to shareholders C$ 0.61 PROJECT FINANCE TOTAL ORE RESERVES US$ 75.1m 80mt 0,5 Kf
Slide 6: Almonty's Global Presence
ALMONTY‘S GLOBAL PRESENCE Diversified and Experienced Operator in Conflict-free Regions 3 1 4 2 + Downstream In S. Korea, see slide 17 & 35 PRODUCING ASSET UNDER CONSTRUCTION DEVELOPMENT PROJECTS 1 2 3 4 PANASQUEIRA – PORTUGAL SANGDONG – SOUTH KOREA VALTREIXAL – SPAIN LOS SANTOS TAILINGS – SPAIN ACQ
Slide 7: Economic Importance
TUNGSTEN PRICE IN HIGHLY PROFITABLE ZONE $360 TUNGSTEN PRICE IN US$ PER MTU TIGHT MARKET WITH GEOPOLITICAL TENSION $350 $340 ➢ South Korea, the largest per capita tungsten consumer worldwide, imports 94.7% of its tungsten supply from China Highly Profitable Price Zone $320 $309 ➢ Increasing dependen
Slide 8: Main Reasons for Growing Tungsten Demand
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 is ongoing as performance, safety and cos
Slide 9: Current Trends & News
CURRENT TRENDS & NEWS POTENTIAL NEW DOMESTIC DEMAND FOR TUNGSTEN IN SOUTH KOREA? ➢ Daegu City signed an investment agreement with IMC End Mill on February 7, 2024, to construct a tungsten powder manufacturing facility ➢ IMC End Mill, an affiliate of the Berkshire Hathaway-owned IMC Group, will lead
Slide 10: Molybdenum's Vital Significance in Steel Production
MOLYBDENUM’S VITAL SIGNIFICANCE IN STEEL PRODUCTION TIGHT MARKET WITH GEOPOLITICAL TENSION MOLYBDENUM PRODUCTION SPLIT (2022e) ➢ Molybdenum, mainly a low-grade by-product, results from the insufficiency of high-grade projects Others 9% ➢ Globally, there are very few stand-alone molybdenum mines, wit
Slide 11: Reasons to Invest into Almonty
10 REASONS TO INVEST INTO ALMONTY Unique position in the tungsten market due to first-class projects & proven track record I PROVEN TRACK RECORD VI 2 NEAR-TERM GROWTH STORIES Sold operations for 21x earnings during a previous supply squeeze in 2007 Low-risk extension at Panasqueira as well as Phase
Slide 12: Striding Forward in Ongoing Improvements – Updates in Q4/23 & Q1/24
STRIDING FORWARD IN ONGOING IMPROVEMENTS – UPDATES IN Q4/23 & Q1/24 ADVANCING NEW EXTENSION: STARTING INITIAL WORKS IN Q1/24 1 Almonty worked on specifying the L4-extension plans and initial work on access ramps expected to start as early as Q1/2024 PANASQUEIRA VISITED BY THE US DEPARTMENT OF COMMER
Slide 13: II Sangdong
+ ALMONTY II SANGDONG
Slide 14: 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$ 228m C$ 72.0m Start-Up Capex Annual EBITDA @1.2m tons & $300/mtu $110/mtu 90+ years Cash costs per ton* Potential Mine Life ➢ Fully permitted, construction well advanced, ca. US$53
Slide 15: Project Financing & Offtake Agreement
PROJECT FINANCING & OFFTAKE AGREEMENT Reputable partners confirm high quality project 15-YEAR OFFTAKE AGREEMENT 70% OF CAPEX FINANCED THROUGH SENIOR PROJECT FINANCE LOAN GOVERNMENT GUARANTEE GUARANTEES ~US$580M REVENUE SIZE US$ 75.1m ➢ Global tungsten product major INTEREST 3-M LIBOR/SOFR + 2.3% ➢ L
Slide 16: Sangdong Massive Orebody with Outstanding Economics
SANGDONG MASSIVE OREBODY WITH OUTSTANDING ECONOMICS SIGNIFICANT RESERVE UPSIDE HIGHEST GRADE LOWEST COST HIGHEST RECOVERY Largest tungsten deposit in the world One of the highest grades in the world. Estimated lowest quartile production World-class recovery of 85% and by Inferred Resource based on O
Slide 17: Sangdong Project - Outlook
SANGDONG PROJECT - 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 18: Downstream at a Glance
DOWNSTREAM AT A GLANCE Key Factors & Financial Summary Phase I Phase II + Tungsten PROJECT SUMMARY Phase II (financed & in construction) Oxide (TO) plant Expected start of production 2024 2026/2027 2026/2027 WO3 production ~2,300 mtu ~4,750 mtu Tungsten Oxide gets produced from Sangdong concentrate
Slide 19: Sangdong's Silent Hero: The Molybdenum Story Unfolded
SANGDONG'S SILENT HERO: THE MOLYBDENUM STORY UNFOLDED ALMONTY KOREA MOLY ➢ Almonty Korea Moly (AKM) Project with its large molybdenite-quartz vein stockwork is located on Sangdong’s existing fully permitted, mining lease, about 190km southeast of Seoul ➢ Significant maiden molybdenum resource define
Slide 20: Strategic Asset: Unlocking the Value of Our Molybdenum Reserves
STRATEGIC ASSET: UNLOCKING THE VALUE OF OUR MOLYBDENUM RESERVES CURRENT STRENGTH POTENIAL STRATEGIES STRATEGIC MOLY PROJECT: 6 REASONS TO BOOST ALMONTY IS CURRENTLY EVALUATING 4 STRATEGIES OVERALL COMPANY WORTH TO ENHANCE THE COMPANY VALUE* 1.1 FULLY PERMITTED Orebody located in the same permitted a
Slide 21: Geological Overview: Understanding Sangdong's Molybdenum Deposits
GEOLOGICAL OVERVIEW: UNDERSTANDING SANGDONG'S MOLYBDENUM DEPOSITS DEPOSIT TYPE ➢ Tungsten Mineralization: Tabular skarn horizons within Myobong Slate, sourced from hydrothermal fluids beneath Sangdong Granite. ➢ Molybdenum Insights: Molybdenum presence in Jangsan quartzite, forming Sangdong Molybden
Slide 22: III Panasqueira
+ ALMONTY II] PANASQUEIRA
Slide 23: Panasqueira – WO3 Production for More Than a Century
PANASQUEIRA – WO3 PRODUCTION FOR MORE THAN A CENTURY Proven track record in a first-class jurisdiction KEY FACTS DEPOSIT SUMMARY ➢ Located in Covilhã, Castelo Branco district, Portugal Tonnage WO3 Grades ➢ Historical production since the early 1900s and Current Status is in Production ➢ L4 extension
Slide 24: Panasqueira – Getting to the Next Level
PANASQUEIRA – GETTING TO THE NEXT LEVEL Economic Model and Future Outlook PANASQUEIRA – GETTING TO THE NEXT LEVEL The actual resource map of L4 THE ➢ Although current production levels remain steady, seizing the opportunity to access L4 is crucial shows the veining system VISION for safeguarding aga
Slide 25: Panasqueira – Cleanest Output Material
PANASQUEIRA – CLEANEST OUTPUT MATERIAL Panasqueira Tungsten Mine Overview Historical Legacy (1886-Present) Excellent Output Quality Unique Proposition ➢ 136 years of Uninterrupted Exploitation ➢ Highest grade recovery with nearly 74% ➢ Operational Continuity until 2052 (Extendable) ➢ 107,000+ tons o
Slide 26: Panasqueira – Visit by the US Department of Commerce/DLA
PANASQUEIRA – VISIT BY THE US DEPARTMENT OF COMMERCE/DLA Impressions of the visit by the US Department of Commerce on September 29, 2023 ➢ Delegation of the US Department of Commerce visited the Panasqueira mine in Portugal ➢ General discussions regarding the planned L4 extension ➢ Open dialog about
Slide 27: Panasqueira – Mining Facilities
PANASQUEIRA – MINING FACILITIES Existing Infrastructure & Equipment will be used for the L4-Extension ➢ Panasqueira mine has extensive mining, processing and environmental infrastructures ➢ Plays an important role in the regional economy, as the local community depends almost entirely on the mine fo
Slide 28: Panasqueira Tungsten-Tin Mine
PANASQUEIRA TUNGSTEN-TIN MINE 27
Slide 29: 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 3,767 kt 0.19% 7,157 t Valtreixal 2,549 kt 0.34% 8,667 t Total 16,163 kt 0.36% 56,863 t S
Slide 30: IV Corporate
+ ALMONTY IV CORPORATE
Slide 31: Almonty Group – Production & Financial Growth Profile
ALMONTY GROUP – PRODUCTION & FINANCIAL GROWTH PROFILE Pro-Forma Forecast – Almonty Combined* Los Santos Panasqueira Sangdong Base Case Sangdong Extension Sangdong Oxide Plant 2024F 2025F 2026F 2027F 2028F 2029F 2030F 100% 400 400 Revenue (Left) EBITDA (Right) 75% 300 % EBITDA Margin US$m 51% 53% 53%
Slide 32: Sangdong ESG
SANGDONG ESG Equator principles and beyond. Assessment of environmental and social risks of major projects based on 10 principles, including regular 1 monitoring by independent third parties and intensive dialogues with the local population and their organizations Almonty has agreed to develop the S
Slide 33: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7 32
Slide 34: V Appendix
+ ALMONTY V APPENDIX
Slide 35: Appendix 1 – Board of Directors and Officers
APPENDIX 1 – BOARD OF DIRECTORS AND OFFICERS Director Experience ➢ Currently a Partner of Almonty Partners LLC, a privately-held company specializing in tungsten mining investments and has over 16 years of experience in the tungsten mining industry Lewis Black ➢ Formerly Chairman and CEO of Primary
Slide 36: Appendix 2 – Downstream Extension
APPENDIX 2 – DOWNSTREAM EXTENSION Almonty’s plans to participate in the battery anode & cathode manufacturing industry SOUTH KOREA & KEY DEMAND DIRECTIONS ALMONTY’S CURRENT PRODUCTION CHAIN 5 Reasons for the importance of Tungsten Oxide PROCESSING 65% WO3 SUPPLY TO 1. South Korea is the largest per
Slide 37: Appendix 3 – Current Trends & News
APPENDIX 3 – CURRENT TRENDS & NEWS RESOURCE NATIONALISM LIKELY TO INCREASE ➢ The Mining & Metals sector is experiencing a surge in nationalism, potentially driving increased sales and production within individual nations, as indicated by the latest SHIFTING Resource Increase sentiment survey by Whit
Slide 38: Appendix 4 – Current Trends & News
APPENDIX 4 – CURRENT TRENDS & NEWS TUNGSTEN’S INCREASING ROLE IN THE BATTERY & EV MARKET “According to the researchers at N1 Technologies, as the next-generation battery, they had added tungsten and carbon multi-layered nanotubes while working on anodes. This will recharging the NanoBolt lithium tun
Slide 39: Appendix 5 – Tungsten Uses I/II – Industries & High-Tech World
APPENDIX 5 – TUNGSTEN USES I/II – INDUSTRIES & HIGH-TECH WORLD SAW TEETH FOR PLATE FOR STONE HAMMER BLADES OF A CIRCULAR SEMICONDUCTORS AUTOMOTIVE MARKET DRILL SAW 65G 400G FILM PROJECTOR CASING FOR LAMP LUXURY WATCH INSERTS FOR AIRCRAFT BALLISTIC EQUIPMENT 35G 750G 74 4f145d46s2 W TUNGSTEN 183.84 P
Slide 40: Appendix 6 – Tungsten Uses II/II – Military Applications of Tungsten
APPENDIX 6 – TUNGSTEN USES II/II – 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
Slide 41: Appendix 7 – Massive Growth Potential in Battery & Semiconductors
APPENDIX 7 – MASSIVE GROWTH POTENTIAL IN BATTERY & SEMICONDUCTORS TODAY TOMORROW SCARCE METAL HIGH DEPENDANCY ON CHINA DOWNSTREAM EXTENSION IN KOREA Sangdong could solve dependency Battery & semiconductor industry offers massive additional growth potential for tungsten market ➢ Korea – location of t
Slide 42: Appendix 8 – Growing Market with Risk of Tightening
APPENDIX 8 – GROWING MARKET WITH RISK OF TIGHTENING TUNGSTEN SUPPLY GAP * Anticipated demand is forecasted to rise at a Compound Annual Growth Supply Rate (CAGR) averaging 3.45%. Certain projections indicate a more robust 130 Demand growth rate of 7-8% per annum. However, despite the expected alignm
Slide 43: Appendix 9 – Defined as Conflict Material – Lack of Transparency
APPENDIX 9 – DEFINED AS CONFLICT MATERIAL – LACK OF TRANSPARENCY CONFLICT MATERIAL “3TG” Tin (Sn) Tantalum (Ta) Tungsten (W) Gold (Au) BACKGROUND AND CURRENT SITUATION NON-TRANSPARENT SUPPLY & STRONGLY CHINA DOMINATED ➢ The SEC has implemented regulations to address the ➢ While the US & Europe have
Slide 44: Appendix 10 – Construction in Ore
APPENDIX 10 – CONSTRUCTION IN ORE Mineralization very close to the surface allows for immediate start of production 43
Slide 45: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7
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