Slide 1: Element 25 Limited Investor Update
Element 25 Limited Investor Update Building a globally significant, low cost, high purity manganese project turbocharged by early cashflow from a low capex concentrate export opportunity. Investor Presentation – August 2020
Slide 2: Disclaimer
Disclaimer This presentation contains only a brief overview of Element 25 Limited and its associated entities (“Element 25") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Element 25's projects, may rely on various assu
Slide 3: Corporate Overview
Corporate Overview Financial Information Share Price Performance ASX Ticker E25 Shares on Issue 118M PFS Announced Share Price $0.55 Market Capitalisation $65M Cash & Investments ~$12.5M Debt Nil Enterprise Value ~$52M Important Shareholders JP Morgan Nominees Australia 9.6% Duketon Mining Limited 4
Slide 4: Experienced Owner's Team
Experienced Owner’s Team • Experienced team supported by industry leading consultants. • Covers a broad spectrum of disciplines. Seamus Cornelius John Ribbons Chairman Non-Executive Director • >100 years combined experience Lawyer CPA in mining and processing industries. • Outcomes focused, all with
Slide 5: World Class Manganese Resource
World Class Manganese Resource Australia’s largest onshore manganese deposit with simple outcropping geology allowing for free-dig low cost mining.
Slide 6: What is Manganese?
What is Manganese? • Manganese (Mn) is the fourth most used metal on earth in terms of tonnage, behind iron, aluminum and copper. • It has many uses including steel, portable batteries, and aluminium cans. • Manganese is an essential component of the steel-making process. Manganese Ore • Manganese i
Slide 7: The Butcherbird Manganese Project
The Butcherbird Manganese Project • Large resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources1. • Maiden Proved and Probable Reserve of 50.6M tonnes at 10.3% Mn for 5.22t of contained manganese2. • Excellent local infrastructure (bitumen road and gas pipel
Slide 8: World Class Resource, Great Infrastructure Endowment
World Class Resource, Great Infrastructure Endowment 550km PORT HEDLAND Goldfields Gas Pipeline large resource, excellent infrastructure, simple geology Measured and Simple, low Indicated Resources cost Mn units are the focus of the 42 year PFS base case for all Gt Northern Highway processing option
Slide 9: Very Simple Geology
Very Simple Geology • Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. • No selective mining required. • Low strip ratio of 0.3:1 based on PFS pit optimisations. • Mining is above the water table for the first ~30 years. • Free dig with l
Slide 10: A Staged Development Strategy
A Staged Development Strategy Early cashflow from the concentrate export startup stage will fund expansion to utilise the very large resource and maximise Project returns.
Slide 11: Simple, Low Cost Beneficiation
Simple, Low Cost Beneficiation Ejected Waste Screening Ore sorting Low cost, free dig and wet rejects shale mining of ore scrubbing waste to produce from surface. removes clays. Mn concentrate. 11
Slide 12: Simple Process, Low Capital, Low Operating Cost
Simple Process, Low Capital, Low Operating Cost • Simple mechanical beneficiation yields a 30-35% medium grade Mn concentrate. • Very low levels of deleterious elements. • Concentrate suitable for smelting for manganese alloys or future hydrometallurgical feed for producing Electrolytic Manganese Me
Slide 13: Concentrate Export PFS Delivers Robust Economics
Concentrate Export PFS Delivers Robust Economics Financial Highlights2 Pre-Tax Operating Cashflow $A (Years 1-5) $32.1M pa • Low capital cost A$14.5M. NPV8 Pre Tax AUD Nominal $441M (Real $283M) • NPV8: Nominal A$441M IRR Pre Tax Nominal 255% (Real 223%) (A$283M Real) Operating Cost (AISC) US$/dmtu1
Slide 14: Competitive Operating Costs
Butcherbird Manganese Project Competitive Operating Costs Unit Operating Cost (U$/dmtu Sold) Royalties, Mining , U$0.26/dmtu U$0.38/dmtu • Low cost mining. Corporate, • Simple processing. U$0.20/dmtu • Excellent logistics infrastructure keeps Processing, U$0.67/dmtu costs low. • Access to Port Hedla
Slide 15: A Resilient Project
A Resilient Project Key Sensitivities Reference: Element 25 Limited ASX releases dated 19 May 2020. Note: Mn recovery variance is +/-5% 15
Slide 16: Logistics Strategy
Logistics Strategy • Road haul to Port Hedland on the Great Northern Highway. • Approximately 6-7 trucks per day. • Bulk shipping via Utah Point facility. Utah Point Photo courtesy of Pilbara Port Authority 16
Slide 17: Development Timeline
Development Timeline • Project development timeline targeting first production Q1 2021. • Discussions underway with equipment suppliers for long lead Baseline Detailed time items. environmental engineering studies underway • Approvals process well advanced. complete. • Project financing strategy def
Slide 18: Project Delivery on Time and Budget
Project Delivery on Time and Budget • Mining Lease granted. • All access agreements finalised. • Processing water source confirmed. • Long lead-time items ordered1. • Permitting documents well advanced. • All critical path items on time and budget for project delivery Q1 2021. 1 Reference: Element 2
Slide 19: Manganese Markets are Robust
Manganese Markets are Robust Demand for manganese is growing and supply has constraints. Butcherbird is closer to the end users than many other Projects.
Slide 20: Manganese Demand Growing
Manganese Demand Growing A steadily & consistently growing market 20
Slide 21: Manganese Concentrate Pricing
Manganese Concentrate Pricing Robust forecast pricing “Manganese from Roskill, a Ore - Stronger leading market for Longer” analyst. Macquarie Commodities Comment 13 May 2020 Conservative pricing assumptions 21
Slide 22: Where to From Here?
Where to From Here? Transitioning from an explorer to a miner is the goal of all junior exploration companies and we are firmly on the path.
Slide 23: Our Journey… Our Goal…
Our Journey… Downstream Project Mn Conc. Strong Product PFS Processing Execution Export Cashflow Diversification (EMM) Our Goal… • Produce clean, low cost, ethical manganese products for world markets. • Become a globally significant manganese producer. • Achieve best in class quality and cost profi
Slide 24: Ingredients for Success…
Ingredients for Success… LOCATION PROJECT PROCESS TIMING GROWTH • #1 ranked investment • Simple, low cost mining • Simple beneficiation to • Ore supply tightening • Massive resource jurisdiction globally* • Low capital, early produce concentrate. • Demand growth from • Production growth • Permitting
Slide 25: Thank you.
Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
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Slide 29: Appendices
Appendices foe\ Element(25 MN
Slide 30: Reserves and Resources
Reserves and Resources Maiden Ore Reserve1 Category Tonnes (Mt) Mn (%) Contained Mn (Mt) • 89% conversion of measured Proved 14.4 11.5 1.65 and indicated resources to Probable 36.2 9.8 3.56 reserve. Total 50.6 10.3 5.22 • Maiden Reserve only exploits Global Mineral Resource2 approximately 20% of glo
Slide 31: Competent Person's Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results is based on information compiled by Mr Justin Brown who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Justin Brown has sufficient exp