Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Investor Presentation (January 2019)
39 slides from Euro Manganese's investor presentation, Feb 1, 2019
Slide 1: Focus on Ultra High-Purity Manganese Products
For personal use only FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS CORPORATE PRESENTATION | January 30, 2019 TSX-V & ASX: EMN
Slide 2: Cautionary Note: Forward-Looking Statements and Risks Notice
Cautionary Note For personal use only Forward-Looking Statements and Risks Notice Except for statements of historical fact relating to the Euro Manganese Inc. (“EMI” or the “Company”), certain information contained in this presentation constitutes forward-looking statements. When we discuss our cost
Slide 3: Investment Highlights
Investment Highlights For personal use only WASTE REPROCESSING FROM STRATEGIC ASSET EXCELLENT INFRASTRUCTURE HISTORIC MINING OPERATION WITH TARGET~25-YEAR LIFE TIER-ONE JURISDICTION • EMN holds 100% of the rights to the • Significant measured and indicated • Rail, highway, gas pipeline, water and Ch
Slide 4: Investment Highlights
Investment Highlights For personal use only CLEAR TIMELINE TO STRONG MANGANESE HIGHLY EXPERIENCED DEVELOPMENT PRODUCT MARKET OUTLOOK MANAGEMENT TEAM • Extensive metallurgical tests and pilot- • Stable, growing manganese demand in the • Solid multidisciplinary team with proven plant runs completed. C
Slide 5: Euro Manganese Inc. – PEA Summary
NEWS: Euro Manganese Inc. – PEA Summary For personal use only Project Economics (USD) Pre‐Tax After‐Tax Net Present value, (10% discount rate) $781.6 M $593.2 M Internal Rate of Return 25.2% 22.6% Payback (from start of processing) 4.5 Years 4.9 Years Cumulative Cash Flow, undiscounted $4,088.8 M $3
Slide 6: Euro Manganese Inc. – PEA Summary: Production Summary
Euro Manganese Inc. – PEA Summary For personal use only Production Summary Life of project 25 years Chvaletice tailings extracted & processed 26,828 K tonnes Total manganese grade 7.33% Contained Manganese (Mn) 1,967 K tonnes HPEMM produced 1,186.4 K tonnes HPEMM further processed into HPMSM 782.3 K
Slide 7: Management Team – Canada
Management Team CANADA For personal use only Marco Romero Pierre Masse Thomas Glück Gary Nordin Fausto Taddei PRESIDENT & CEO, VP FINANCE & CHIEF VICE PRESIDENT, CHIEF GEOLOGIST VP CORPORATE FOUNDER & DIRECTOR FINANCIAL OFFICER DEVELOPMENT DEVELOPMENT & CORPORATE SECRETARY • 39+ years of diversified
Slide 8: Management Team – Europe
Management Team EUROPE For personal use only Jan Votava Wenling Sun Klaus Acker Tomas Hochmann MANAGING DIRECTOR (MANGAN STRATEGIC DIRECTOR, VICE PRESIDENT, TECHNICAL DIRECTOR CHVALETICE S.R.O.) & DIRECTOR CHINA MANGANESE MARKETS (EURO MANGANESE INC.) • 18+ years experience as an engineer • Highly e
Slide 9: Non-Executive Directors
Non-Executive Directors For personal use only Roman Shklanka David Dreisinger Daniel Rosický Harvey McLeod John Webster Gregory Martyr CHAIRMAN & DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CO-FOUNDER • Geologist, mine finder and • Professor and chairholder of • Practiced law for 22 years • Geotech
Slide 10: Manganese Market
For personal use only MANGANESE MARKET FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 10
Slide 11: Manganese Market Opportunity
Manganese Market Opportunity For personal use only Photos show ultra high purity manganese products made from Chvaletice Manganese Project tailings during 2018 product development and testwork program. WHAT IS MANGANESE? 12th most abundant element on Earth. Ultra-high-purity manganese products have
Slide 12: Electric Vehicle Demand for Manganese
Electric Vehicle Demand for Manganese For personal use only Chevy Bolt BMW i3 BAIC EC 200 Jaguar iPace Battery Pack Size: 60 kWh Battery Pack Size: 42 kWh Battery Pack Size: 36.8 kWh Battery Pack Size: 90 kWh Battery Manufacturer: LG Chem Battery Manufacturer: Samsung SDI Battery Manufacturer: CATL
Slide 13: How much Manganese is needed for one EV?
How much Manganese is needed for one EV? For personal use only Conversion to Cathode 0.473 kg 1.453 kg 1.439 kg Some new battery chemistries 1% loss 5% loss HPEMM HPMSM HPMSM will use up to 2.3 times more MnSO4H2O Production manganese than the current Equivalent to NMC-111 chemistry 0.445 kg HPEMM
Slide 14: Lithium Ion Battery Market Demand
Lithium Ion Battery Market Demand Manganese use in NMC and LNMO cathode formulations For personal use only NMC has several major formulations, each expressed as a ratio of Nickel to Manganese to Cobalt: NMC 1-1-1 Most NMC today is the 1-1-1 formulation, which is the most stable and long-lasting. 2,5
Slide 15: Manganese Market Opportunity
Manganese Market Opportunity For personal use only 1,000 70% HPMSM 30% HPEMM 900 800 Total Mn Demand from battery industry '000 metric tons Mn contained 700 (NMC and LNMO battery chemistries only) 600 500 400 HPMSM 300 200 35% HPMSM 65% HPEMM 100 HPEMM 0 MANGANESE USE IN Li-ION BATTERY MARKET Li-ion
Slide 16: Manganese Sulfate Demand: HPEMM Shipment Forecast
Manganese Sulfate Demand Lithium Ion Batteries For personal use only HPEMM SHIPMENT FORECAST FOR Li ION BATTERIES 400 Some battery makers prefer to buy 350 HPEMM and make the HPMSM needed Other Other uses for the cathodes themselves. 300 '000 metric tons HPEMM Steel Non-Fer-Alloys CPM Group expects
Slide 17: Manganese Sulfate Demand: HPMSM Shipment Forecast
Manganese Sulfate Demand Lithium Ion Batteries For personal use only HPMSM SHIPMENT FORECAST FOR Li ION BATTERIES Note that this forecast only tracks HPMSM, 2,000 containing approximately 32% manganese Other uses content. There is a much larger market for 1,750 low-grade, commoditized MSM that goes
Slide 18: Mn Demand from Lithium-ion Batteries
Mn Demand from Lithium-ion Batteries… For personal use only 7% 5 7% 9 1 1 7% % 7 8 $ %kg % % 7% 17% Mn % 11% Li Cathode 33% Manganese accounts for only Battery Pack NMC‐622 ~2-3% of the cost of cathode Assembly Cost Anode 54% Ni materials and less than 1% of 59% Other Cell Costs % the Li-ion battery
Slide 19: Growing Lithium Battery Cluster in Europe
Growing Lithium Battery Cluster in Europe (The wave of production capacity development that has gone through Asia is now washing over Europe) For personal use only SWEDEN GERMANY Plant Type: Precursors/Batteries Plant Type: Batteries Status: Construction 2018 Status: Construction 2019 Production Sta
Slide 20: EMN Strategic Approach
EMN Strategic Approach For personal use only TWO KEY PRODUCT LINES FOR EMN 1 UHP Electrolytic Manganese Metal (99.9% EMM / HPEMM) Highest specifications: Selenium-free, >99.9% Mn. Form: Flake and powder Use: From lithium ion battery cathodes to military grade super-alloys AND 2 UHP Manganese Sulphat
Slide 21: EMN Strategic Considerations
EMN Strategic Considerations For personal use only Manganese in oil pipeline segments Mn in Ford F-150 pickup aluminum frame and body Mercedez Benz NMC lithium-ion battery prototype GROWING MARKETS FOR HIGH- MARKET INTEREST IN EMN PRODUCTS PURITY MANGANESE PRODUCTS Ongoing discussions with several m
Slide 22: Overview of the Chvaletice Manganese Project
For personal use only OVERVIEW OF THE CHVALETICE MANGANESE PROJECT FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 22
Slide 23: Project Highlights
Project Highlights For personal use only LEADING MANGANESE PROJECT 100% ownership of rights to Chvaletice Manganese Resource Targeted 25-Year Life-of-Project /designed by world- leaders in the HPEMM and HPMSM field Recovering manganese by reprocessing tailings (waste recycling) makes Chvaletice exce
Slide 24: Project Highlights: Working in the Czech Republic
Project Highlights For personal use only Working in the Czech Republic Electrical supply – 820 MW power station adjacent to project site • Competitively-priced electrical power in Czech Republic (key cost driver). Key process inputs • Conventional reagents available in Czech Republic and Europe. • I
Slide 25: Project Location and Infrastructure
Project Location and Infrastructure For personal use only STRATEGICALLY LOCATED 90 KM EAST OF PRAGUE AND IDEALLY SITUATED TO SERVE CUSTOMERS ACROSS EUROPE. Set in an industrialized valley with gentle topography, served by excellent infrastructure Adjacent to 820 MW power station at a major node in t
Slide 26: Project 2017-2018 Progress: Metallurgical Testing and Process Design
Project 2017-2018 Progress For personal use only METALLURGICAL TESTING AND PROCESS DESIGN March 2017 – HPEMM Metallurgical Testing Initiated Extensive metallurgical testwork program comprised of hundreds of tests, including beneficiation, leaching, purification and electrowinning with Changsha Resea
Slide 27: Metallurgical Testing
Metallurgical Testing For personal use only MINERAL PROCESSING & METALLURGICAL TESTING Recent Findings of Bulk Sample Pilot-Scale Metallurgical Testwork • Magnetic Separation pilot scale tests were successful and confirmed earlier exploratory results. • Leaching test were successful. Good leach reco
Slide 28: Project 2017-2018 Progress: Engineering
Project 2017-2018 Progress For personal use only ENGINEERING January 2017 and On-going – Process Design and Economic Assessment • Various engineering studies initiated with China’s CINF Engineering, a division of Aluminum Company of China/Chinalco, for process and Project design, as well as capital
Slide 29: Project 2017-2018 Progress: Site Activities
Project 2017-2018 Progress For personal use only SITE ACTIVITIES Early 2017 Backhoe samples collected for characterization studies and exploratory metallurgical testing in China and Canada. Summer-Winter 2017 • 80-hole Sonic drill program completed. • Bulk sample (14.8 tonnes) collected for metallur
Slide 30: Project 2017-2018 Progress: Resource Definition, Tenure and Permitting
Project 2017-2018 Progress For personal use only RESOURCE DEFINITION November 2017 Tetra Tech Canada Inc completed NI43:101/JORC- compliant Indicated and Inferred Mineral Resource Estimate. (Report issued on June 21, 2018.) TENURE AND PERMITTING December 2017 Euro Manganese secured registration of C
Slide 31: Summer 2017: Drilling & Bulk Sampling
Summer 2017: Drilling & Bulk Sampling For personal use only Sonic drill – modern, effective sampling tool Sonic drill “core” of soft, sandy tailings material 14.8-tonne bulk sample collected using Sonic drill for metallurgical and pilot plant testing FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 31
Slide 32: Summer 2018: 2nd Drilling & Bulk Sampling Program
Summer 2018: 2nd Drilling & Bulk Sampling Program For personal use only 2018 DRILL PROGRAM HOLE LAYOUT - ONGOING 80-Hole 2018 Sonic and auger drill program was designed to upgrade the resource estimate to a Measured and Indicated Status. Resulting resource model is expected to form a reliable basis
Slide 33: 2018 NI 43-101 Resource Estimate
2018 NI 43-101 Resource Estimate: For personal use only NI43:101/JORC-Compliant Resource Estimate 2017 – 80-hole drilling program findings Updated Resource Estimate issued on December 12, 2018 • Manganese is for the most part evenly by Tetra Tech – a leading diversified North American distributed th
Slide 34: Proposed Chvaletice Plant Site: Land Secured
Proposed Chvaletice Plant For personal use only Site: Land Secured! 1. November 2017: EMN acquired 100% of 1.7 hectare parcel of land with rail siding (Shaded red on lower map) 2. October 16, 2018: closed option to acquire 100% of Czech company that owns 19.94 hectares of strategically- located land
Slide 35: Target Project Development Timeline
Target Project Development Timeline For personal use only SHORT TERM MILESTONES MEDIUM TERM MILESTONES 2018 2019 2020/2021 2022 Upgrade resource estimate to Measured Complete NI-43-101/JORC- Detailed engineering Start-up, commissioning and Indicated status compliant Preliminary Economic and commerci
Slide 36: Going Forward
Going Forward For personal use only FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS 36
Slide 37: Chvaletice Manganese Project Highlights
Chvaletice Manganese Project Highlights For personal use only Western Europe’s largest manganese deposit – Could EMN has secured rights to strategic, industrially-zoned land for become its only primary producer of HPEMM and HPMSM. plant site adjacent to Chvaletice tailings deposit. EMN focus on prod
Slide 38: Euro Manganese Inc. - Capitalization
Euro Manganese Inc. - Capitalization For personal use only Capitalization as of December 31, 2018 (Note 1) IPOs completed on ASX and TSX Venture Exchange Shares (including 74.5M CDIs) 170,709,600 (October 2nd, 2018). Options 12,525,000 35M Shares at C$0.25, raised C$7.62M net proceeds. Warrants 8,68
Slide 39: For personal use only
For personal use only FOCUS ON ULTRA HIGH-PURITY MANGANESE PRODUCTS Marco A. Romero 1500 - 1040 West Georgia Street President & CEO Vancouver, BC Canada V6E 4H8 Tel: +1 (604) 681-1010 x 101 info@Mn25.ca www.Mn25.ca
Euro Manganese — Investor Presentation (January 2019) on 6ix