Nextsource Materials Inc · TSX:NEXT
Nextsource Materials — Investor Presentation (March 2023)
26 slides from Nextsource Materials's investor presentation, Mar 14, 2023
Slide 1: Company and Project Overview
Company and Project Overview 2023 TSX : NEXT OTCQB : NSRCF
Slide 2: Safe harbour and forward looking statements
Safe harbour and forward looking statements This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This prese
Slide 3: Company overview
Company overview NextSource Materials (TSX:NEXT) (OTCQB:NSRCF) is a Canadian mine development company based in Toronto, Ontario, Canada that is commissioning its 100%-owned Molo Graphite Mine in southern Madagascar in Q1 2023. It’s value-add partnerships, coupled with its leadership team’s extensive
Slide 4: Strong management & operational team with extensive experience
Strong management & operational team with extensive experience Craig Scherba Sir Mick Davis President and Chief Executive Officer P.Geo. Independent Director, Chair of the Board CFA, BCom (Hons) • Discovered the graphite and vanadium assets as former head of • Highly successful mining executive cred
Slide 5: Our cornerstone investor
Our cornerstone investor Highly experienced partner with significant experience across the mine development lifecycle Vision Blue is creating a portfolio of strategic and high returning investments in clean energy related metal and mineral resource companies essential to the clean energy transition.
Slide 6: Conformance to the highest standards and transparency
Conformance to the highest standards and transparency • Fit for purpose, integrated risk management approach • De-risking the business and addressing all leading ESG requirements through: • Building resilient relationships with regulators, communities and customers • Social initiatives including agr
Slide 7: NextSource is well-positioned to supply rapidly growing demand
NextSource is well-positioned to supply rapidly growing demand • Production of SuperFlake® graphite concentrate ramping up in Madagascar • Accelerated expansion plans in place to meet demand growth with near term catalysts: • Battery Anode Facility (BAF) deployment plan • Feasibility Study on Phase
Slide 8: Graphite is central to the EV revolution
Graphite is central to the EV revolution 8 © NextSource Materials Inc.
Slide 9: Graphite is crucial for every LiB battery chemistry
Graphite is crucial for every LiB battery chemistry 1 Source: Source: Company analysis, data from Gaines, L., Richa, K., & Spangenberger, J. (2018) Key issues for Li-ion battery recycling (excludes oxygen). 2 Source: Benchmark Mineral Intelligence Flake Graphite Forecast, Q3 2022. 9 © NextSource Mat
Slide 10: Demand outpacing supply
Demand outpacing supply • Multiple graphite projects needed to meet global demand growth • Strong preference by OEMs for non-Chinese sourced and processed graphite • Demand for natural graphite, such as NextSource’s, expected to grow by 415% (2022-2030)* Source: Benchmark Mineral Intelligence 2023 1
Slide 11: More graphite mines need to be built
More graphite mines need to be built 97 52 Source: Benchmark Minerals Intelligence 2022 11 © NextSource Materials Inc.
Slide 12: Tier 1 offtake partners in place for >100% of Phase 1 capacity
Tier 1 offtake partners in place for >100% of Phase 1 capacity REFRACTORY 10-year sales agreement • 8,000 tpa Phase 1 • 35,000 tpa Phase 2 • Floating FOB China pricing MAJOR GLOBAL STEEL MAKER & GRAPHITE TRADER ANODE 10-year sales agreement • 9,000 tpa Phase 1 • 20,000 tpa Phase 2 • Floating FOB Chi
Slide 13: Molo Graphite Mine
Molo Graphite Mine 13 © NextSource Materials Inc.
Slide 14: Molo graphite mine - Fotadrevo, Madagascar
Molo graphite mine - Fotadrevo, Madagascar NextSource will use this port 14 © NextSource Materials Inc.
Slide 15: Fully modular mine Phase 1 Production - 17,000 tpa
Fully modular mine Phase 1 Production - 17,000 tpa 15 © NextSource Materials Inc.
Slide 16: Phase 2 mine expansion plans in place and ready to implement
Phase 2 mine expansion plans in place and ready to implement Phase 1 – commissioning Mar 2023 17,000 tpa • 35 modules • 60 x 100 m footprint Phase 2 Additional 150,000 tpa • 123 modules • 120 x 150 m footprint • FS to be completed Q2 2023 capacity larger footprint vs. Phase 1 16 © NextSource Materia
Slide 17: Hybridized power solution in place for Phase 1 production
Hybridized power solution in place for Phase 1 production • Minimum ~30% renewable energy contribution to the Molo mine; • Reduction of CO2 emissions of over 11,300 tonnes/year • Plan is to increase to 50% renewable energy with future mine expansion 11.5 MWp Solar PV Facility 5MVA/5MWh BESS Requires
Slide 18: Molo resource – very large and easily expandable
Molo resource – very large and easily expandable 100.37 million tonnes (MT) Measured & Indicated RESOURCES; above a 2% C cut-off Combined Measured & Indicated resource @ 6.3% C, above a 2% C cut-off • 23.62 MT Measured @ 6.32% C • 76.75 MT Indicated @ 6.25% C 40.91 • 40.91 MT Inferred @ 5.78% C MT I
Slide 19: A very high-quality and verified flake graphite concentrate
A very high-quality and verified flake graphite concentrate The ONLY project with 23% Medium 7% (-80/+100 mesh) Small - Fine 47% (-100 mesh) VERIFIED by off-takers and end-users for ALL top demand markets Source: Molo 2019 Feasibility Study 19 © NextSource Materials Inc.
Slide 20: Vertical Integration Strategy: From mine to anode
Vertical Integration Strategy: From mine to anode • Exclusive use of well-established processing IP • Ambitious buildout plan for a series of anode facilities 20 © NextSource Materials Inc.
Slide 21: Exclusive technical partnership with established OEM anode processor
Exclusive technical partnership with established OEM anode processor • Exclusive licence to best-in-class processing IP for spheronized, purified graphite (SPG) and coated SPG (CSPG), used to supply multiple OEMs (Tesla and Toyota) supply chains • Replicating technical partner’s existing CSPG proces
Slide 22: Global anode expansion strategy
Global anode expansion strategy BATTERY ANODE FACILITY (BAF) • Plans to construct, in stages, multiple BAFs globally in key jurisdictions to produce commercial-scale graphite anode material for lithium-ion batteries used in EVs • BAFs will leverage exclusive access to well-established proprietary an
Slide 23: Mauritius – BAF1
Mauritius – BAF1 • BAF1 initial production of 3,600 tpa (Line 1) of CSPG, targeting production in Q2 2024 • BAF1 capable of housing 3 additional production lines (3,600 tpa each) for total production capacity (lines 1-4) of 14,400 tpa of CSPG • Close proximity to Molo Graphite Mine in Madagascar and
Slide 24: Upstream and downstream development timeline
Upstream and downstream development timeline* • Verification of CSPG to OEM & Cell Phase 2 Phase 3 Phase 1 Production Manufacturers can begin H2 2023 using Mine Expansion Mine Expansion 17,000 tpa technical partner’s facility +150,000 tpa minimum Production H1 2023 H2 2024 Expansion options to meet
Slide 25: Advantage NextSource
Advantage NextSource • Phase 1 mine ramping up to production • 10-yr offtake agreements in place for over 100% of Phase 1 production • First Battery Anode Facility (BAF1) targeted to commission in 2024 • Phase 2 mine expansion plans in place (permits secured, resource already defined) • Exclusive us
Slide 26: TSX : NEXT OTCQB: NSRCF
NeXT SOURG materials SuperFlake” OTCQB: NSRCF
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