Euro Manganese, Inc. · TSXV:EMN
Euro Manganese — Investor Presentation (August 2024)
34 slides from Euro Manganese's investor presentation, Aug 20, 2024
Slide 1: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition INVESTOR PRESENTATION August 2024
Slide 2: Legal Disclaimer: Forward-Looking Statements and Risks Notice
LEGAL DISCLAIMER Forward-Looking Statements and Risks Notice Certain statements in this presentation constitute “forward looking statements” or “forward looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainti
Slide 3: High-Purity Manganese 101
For personal use only High-Purity Manganese 101 MARKET OVERVIEW 3
Slide 4: Manganese is an essential raw material in most lithium-ion batteries
MARKET OVERVIEW Manganese is an essential raw material in most lithium-ion batteries Nickel-Manganese-Cobalt (NMC) cathodes are currently the dominant chemistry For personal use only in EV batteries with ~50% market share Batteries make ABOUT HIGH-PURITY MANGANESE up ~30% of the total cost of EVs Is
Slide 5: Battery chemistries price and performance segmentation
MARKET OVERVIEW Moving forward, the market may shift its focus towards either reducing prices or enhancing performance, yet manganese will remain crucial in both Battery chemistries1 price and performance segmentation For personal use only Current technology Emerging technology Future technology LMF
Slide 6: Macro factors aligning to increase demand for high-purity manganese
MARKET OVERVIEW Macro factors aligning to increase demand for high-purity manganese With >90% of high-purity manganese current produced in China, there is a drive to localize supply chains For personal use only 1 Continued growth of global EV market 2 Development of manganese-rich chemistries 3 EU &
Slide 7: A supply demand imbalance is looming for battery-grade manganese
MARKET OVERVIEW A supply demand imbalance is looming for battery-grade manganese The balanced supply-demand of HPMSM is expected to move into deficit as significant gaps appear post-2027 and increase steadily thereafter up to 6.2 Mt by 2035 For personal use only Demand Global HPMSM market balance, 2
Slide 8: 2030 projections estimate large regional supply-demand gaps for HPMSM
MARKET OVERVIEW 2030 projections estimate large regional supply-demand gaps for HPMSM Locking in supplies of HPMSM is strategic to avoid supply-side disruption Non-FEOC producer Euro Manganese Regional supply-demand balance projections in 2030, kt HPMSM Non- FEOC project FEOC producer For personal u
Slide 9: Historical trends indicate tight markets increase volatility and price fly-ups
MARKET OVERVIEW Historical trends indicate tight markets increases volatility and price fly-ups Nickel, lithium, and cobalt have had price fly-ups, followed by reversion Nickel Lithium Cobalt For personal use only Indexed1 (Jan 2012 price) historical price fluctuations over marginal cost (Price/C90)
Slide 10: Who We Are
For personal use only Who We Are COMPANY & PROJECT OVERVIEW 10
Slide 11: The Chvaletice project is a unique HPMSM project
PROJECT OVERVIEW The Chvaletice project is a unique HPMSM project A means to lock-in battery grade manganese supplies in Europe that are well tested and commercially proven For personal use only PICTURE 1 2 3 4 A unique recycling Production of two high- Demonstration Plant has Chvaletice has attract
Slide 12: The project transforms waste-to-value through recycling historic mine tailings
PROJECT OVERVIEW The project transforms waste-to-value through recycling historic mine tailings The plant reprocesses mine tailings to produce high-purity manganese For personal use only Recycling • Historic tailings containing easily-treated manganese carbonate (1) • Well-defined Proven + Probable
Slide 13: It is designed to deliver exceptional ESG benefits to all stakeholders
PROJECT OVERVIEW It is designed to deliver exceptional ESG benefits to all stakeholders Environmental benefits and value creation for local communities and Czech Government For personal use only • LCA shows net positive environmental benefits from remediation of historic tailings (land, water, biodi
Slide 14: Favourable Czech and EU policies, well-located site, environmental permit received
PROJECT OVERVIEW The Chvaletice Project benefits from favourable Czech Republic and EU policies, a well- located site for delivery of goods, and has received its environmental permit For personal use only • Located in the Czech Republic, a sophisticated, stable, and business-friendly jurisdiction RE
Slide 15: The flow sheet produces high-purity manganese products: HPEMM & HPMSM
PROJECT OVERVIEW The flow sheet produces high-purity manganese products: HPEMM & HPMSM Robust process uses proven, conventional and commercial technologies; adheres to European environmental regulations 01 02 03 04 05 For personal use only Ore to Slurry Magnetic Leaching and Electrowinning Dissoluti
Slide 16: Demonstration Plant has produced on-spec HPEMM and HPMSM
PROJECT OVERVIEW Demonstration Plant has produced on- spec HPEMM and HPMSM Final commissioning of Demonstration Plant complete; For personal use only Enables large-scale product samples on batch basis • HPMSM (32.4% pure) produced from HPEMM produced by Demonstration Plant • Two independent external
Slide 17: Permitting, demonstration plant and EPCM are well underway
PROJECT OVERVIEW Permitting, Chvaletice demonstration plant and EPCM are well underway Timelines are subject to change based on financing, permitting, and FEED outcomes For personal use only H1 2024 H2 2024 2025 2026 2027 2028 DEMONSTRATION PLANT Customer samples & qualification Available for testin
Slide 18: Offtake process making progress despite softer market sentiment
OFFTAKE PROCESS Offtake process making progress despite softer market sentiment Funnel volumes continue to exceed plant capacity and offtake required to support project finance (80% of 150Ktpa) Market is adjusting to slower growth rate Offtake Funnel (Cathode Makers, Battery Makers, OEMs) For person
Slide 19: Good cashflow and margins together with security of supply for Europe
PROJECT OVERVIEW Good cashflow and margins together with security of supply for Europe Stable production over 25-year project life, supported by 27 Mt reserve base Feasibility Study Base Case Highlights ($ figures in USD) Feasibility Study Price Forecast for HPMSM US$/t REAL For personal use only (J
Slide 20: Chvaletice: Funding
For personal use only Chvaletice: Funding PROJECT FINANCE 20
Slide 21: Project financing strategy: mix of debt, equity, royalty and potential grants
FUNDING AND LEADERSHIP STRUCTURE Project financing strategy: mix of debt, equity, royalty and potential grants Staged equity strategy; structured to reduce dilution For personal use only Strategic Investment Private Offering Public Offering US$100M Funding Package At project level, based on NAV At c
Slide 22: Application for CRMA Strategic Project status and EU based grants
FUNDING AND LEADERSHIP STRUCTURE Application for CRMA Strategic Project status and EU based grants Accreditation as a Critical Raw Material Act “Strategic Project” will assist in accessing EU based grants For personal use only 1 EU CRMA Strategic Project Application 2 Investment Incentive Applicatio
Slide 23: Executive leadership team
COMPANY OVERVIEW Executive leadership team Track record of raising capital and delivering large-scale projects; deep high-purity manganese processing experience For personal use only Matt James Martina Blahova James Fraser Tim Kindred Andrea Zaradic Jan Votava President & CEO CFO VP Commercial Proje
Slide 24: Euro Manganese is the only HPMSM producer in Europe
Euro Manganese is the only Negative Positive Neutral HPMSM producer in Europe and offers clear product Chinese players Other global players Euro Manganese advantages such as low-carbon For personal use only and circular production Likelihood of supply chain disruption arising Geopolitical tensions p
Slide 25: Our Growth Horizon: North America
For personal use only Our Growth Horizon: North America GROWTH OPPORTUNITY 25
Slide 26: Bécancour first-mover advantage in North America for production of HPMSM
GROWTH OPPORTUNITY Bécancour first-mover advantage in North America for production of HPMSM For personal use only Bécancour overview • Scoping study completed in March 2023 to evaluate development of an HPEMM dissolution plant to produce HPMSM. Study leveraged process development and engineering wor
Slide 27: Bécancour proposed manufacturing process
GROWTH OPPORTUNITY Bécancour proposed manufacturing process Leveraging much of the engineering work already completed for the Chvaletice project in EU Bécancour Process Flow Sheet For personal use only Benefits of Bécancour location Plant Feedstock: Dissolution Plant Product: Plant Product: HPEMM Pl
Slide 28: Positive Scoping Study highlights released for Bécancour Dissolution Plant
GROWTH OPPORTUNITY Positive Scoping Study highlights released for Bécancour Dissolution Plant Study outlined strong preliminary project economics, modest capex, and short build time For personal use only Scoping Study Highlights ($ figures in CAD)* Plant Design • Allows for production of both HPMSM
Slide 29: Appendix
For personal use only Appendix: 29
Slide 30: Euro Manganese capitalization
CORPORATE INFORMATION Euro Manganese capitalization Euro Manganese is a BC Company incorporated in 2014 and listed publicly in 2018; its head office is located in Vancouver For personal use only Ownership Structure at June 30, 2024 TRADING SYMBOLS CORPORATE MEMBERSHIPS Total 402,669,227 TSX-V and AS
Slide 31: Resources converted to Reserves with 98% classified in Proven category
RESERVE STATEMENT Resources converted to Reserves with 98% classified in Proven category Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adapted by CIM Council, as amended, which are materially identical to the JORC Code. For personal use only Chva
Slide 32: Notes to Mineral Reserve Statement
RESERVE STATEMENT Notes to Mineral Reserve Statement 1. Estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as For personal use only amended, which are materially identical to the JORC Code. 2. The Mineral Resource is inclusive
Slide 33: Compliance Statements
LEGAL Compliance Statements Competent and Qualified Persons Statement All production targets for the Chvaletice Manganese Project referred to in this presentation are underpinned by estimated Proven and Probable Reserves prepared by competent persons and qualified persons in accordance with the requ
Slide 34: Poised to Support the Energy Transition
For personal use only Poised to Support the Energy Transition TSXV: EMN | ASX: EMN | OTCQB: EUMNF | Frankfurt Stock Exchange: E06 info@Mn25.ca | www.Mn25.ca 34