Evolution Energy Minerals Limited · ASX:EV1
Evolution Energy Minerals — Investor Presentation (February 2022)
26 slides from Evolution Energy Minerals's investor presentation, February 2022
Slide 1: Sustainable Graphite Products for the Global Green Economy
SUSTAINABLE GRAPHITE PRODUCTS FOR THE GLOBAL GREEN ECONOMY February 2022
Slide 2: Disclaimer
ASX:EV1 DISCLAIMER This presentation (the “Presentation”) has been prepared by Evolution Energy Minerals Limited (“Evolution”). No party other than Mineral Resources Evolution has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations o
Slide 3: Sustainable Graphite Products for Global Green Economy
ASX:EV1 SUSTAINABLE GRAPHITE PRODUCTS FOR GLOBAL GREEN ECONOMY Development‐ready Chilalo Goal to become world’s first net Extensive product qualifications will Graphite Project in Tanzania zero carbon graphite mine result in quality offtakes and technology partnerships 58% > 80 Mesh World leading fl
Slide 4: Corporate Overview
ASX:EV1 CORPORATE OVERVIEW BOARD EV1 $72.8M Phil Hoskins MANAGING DIRECTOR ASX Code Market Cap (at $0.45 per share) Phil is the Executive responsible for the development of Chilalo since 2014. Eight years ‘graphite experience. Trevor Benson $10.7M $64.7M NON-EXECUTIVE CHAIRMAN Cash Enterprise Value
Slide 5: Vision: vertically integrated sustainable graphite supplier
ASX:EV1 Evolution’s vision is to become a vertically integrated company that will only supply sustainably sourced graphite products and battery materials. This will be achieved by combining our unique graphite source with industry‐leading technology partners, working closely with customers and produ
Slide 6: Key Focus Areas to Drive Value
ASX:EV1 KEY FOCUS AREAS TO DRIVE VALUE Evolution targeting FID by H2 2022 DIVERSIFIED DOWNSTREAM STRATEGY ESG o Development‐ready expandable graphite and o Pursuing net zero carbon mine micronised graphite strategies o Achieve at least an ‘A’ rating with Digbee o Technology and sales agreements Inde
Slide 7: Graphite battery demand forecast to 2050
ASX:EV1 “We forecast battery sector demand for raw material graphite to rise by more than 1,400% between 2020 and 2050. By the end of the forecast period, total graphite demand could be three times the 2021 supply level.” – Wood Mackenzie Graphite Market 2021 Outlook to 2050 7
Slide 8: Unprecedented Demand Opportunity
ASX:EV1 UNPRECEDENTED DEMAND OPPORTUNITY EV sales outperforming forecasts as China / EU reaches inflection point ELECTRIC LI-ION BATTERY DEMAND (MWh) GRAPHITE DEMAND IN VEHICLES BATTERIES (Mt) In 2021, EVs represented 15% and 20% of all vehicles sold in China and Europe respectively. Source: Bloombe
Slide 9: Graphite in Lithium-Ion Batteries
ASX:EV1 GRAPHITE IN LITHIUM-ION BATTERIES Shift expected towards natural graphite NATURAL GRAPHITE DEMAND FOR BATTERIES 2020 2030 9 Source: Benchmark Mineral Intelligence – Q4 2021 Flake Graphite Forecast
Slide 10: Criticality of Graphite Supply
ASX:EV1 CRITICALITY OF GRAPHITE SUPPLY Graphite listed as a strategic critical mineral in US, EU, Japan and Australia CHINA DOMINATES GRAPHITE MARKET WHY? 1 Due to high concentration of production in one country (China), graphite is recognized as a strategic critical mineral in: Flake Graphite Suppl
Slide 11: Supply Shortfall and Rising Prices
ASX:EV1 SUPPLY SHORTFALL AND RISING PRICES Power shortages and environmental shutdowns cause 25% increase in fines price since October 2021 FINE FLAKE (-100 MESH / -150 MICRON) DEFICIT IN NATURAL GRAPHITE PREDICTED FROM 2023 GRAPHITE PRICES (OCT 2021–FEB 2022) “Demand growth will be such that we hav
Slide 12: Chilalo Project
ASX:EV1 CHILALO PROJECT Coarse flake graphite for high‐value applications Development ready DFS, Mining Licence and Environmental Approvals High margins ~US$750/t concentrate margin driven by globally significant flake size Value-added margins through vertical integration Unique downstream strategy
Slide 13: DFS Optimisation Underway
ASX:EV1 DFS OPTIMISATION UNDERWAY Strong economics to a bankable standard1 PHYSICALS UNIT 2020 DFS Mine life years 18 OPTIMISATION FOCUSED ON: Total plant feed Mt 8.9 Revised mining schedule (expected to Annual plant feed ktpa 500 reduce operating costs) Average head grade %TGC 10.1% Average graphit
Slide 14: Product Quality
ASX:EV1 PRODUCT QUALITY Flexibility to produce coarse flake or “high purity green graphite” 14 95% 99%
Slide 15: Tanzania
ASX:EV1 TANZANIA RE‐EMERGING AS A FAVOURABLE INVESTMENT DESTINATION Her Excellency Samia Suluhu Hassan appointed as President in March 2021 (following death of the Late His Excellency John Magufuli) Evolution has commenced discussions with Tanzanian Speech on 5 April 2021 by Her Excellency Governmen
Slide 16: Well Advanced Diversified Downstream Strategies
ASX:EV1 WELL ADVANCED DIVERSIFIED DOWNSTREAM STRATEGIES Value added opportunities for all size fractions 16
Slide 17: Sustainable Battery Anode Materials
ASX:EV1 SUSTAINABLE BATTERY ANODE MATERIALS Commercial verification program to avoid toxic chemicals EV1 INTENDS TO USE COMMERCIALLY PROVEN THERMAL PURIFICATION AND PROPRIETARY COATING TECHNOLOGY 1. Mining Processing 2. Active Anode Material Precursor 3. Active Anode Material Mining Processing Trans
Slide 18: Sustainability commitment statement
ASX:EV1 The world needs unprecedented levels of graphite to drive decarbonisation for decades to come, but not at any cost. Customers and investors can have confidence in EV1’s sustainability commitment because it is embedded in board and management philosophy. 18
Slide 19: ESG and Sustainability
ASX:EV1 ESG AND SUSTAINABILITY Evolution’s commitment to sustainable graphite supply DIGBEE ENDORSED BY NUMEROUS FINANCIERS DIGBEE FRAMEWORK COVERS ALL GLOBAL STANDARDS 19
Slide 20: Regulation Driving Demand
ASX:EV1 REGULATION DRIVING DEMAND EU initiatives leading the way & forcing a change KEY INITIATIVES Supported by Initiative for Responsible Mining Assurance RESPONSIBLE SOURCING CO2 FOOTPRINT TRACEABILITY EU list of Critical Raw Materials & European Raw Materials Alliance All batteries sold All raw
Slide 21: Public Sustainability Commitments
ASX:EV1 PUBLIC SUSTAINABILITY COMMITMENTS MERCEDES-BENZ BMW EUROPEAN COMMISSION “ We have made CO2 neutral cell production a key “ The BMW Group is the first automobile company worldwide to become a member “The Commission puts forward a new future- proof regulatory framework on batteries to ensure t
Slide 22: Graphite Peer Comparison
ASX:EV1 GRAPHITE PEER COMPARISON Significant discount to graphite peers $900 $800 $700 Market Capitalisation ($m) $600 $500 $400 $300 $200 $100 $‐ Syrah Resources Nouveau Monde Renascor Talga Group NextSource Magnis Energy EcoGraf Limited Black Rock Walkabout Evolution Energy Volt Resources Triton M
Slide 23: Value Proposition
ASX:EV1 VALUE PROPOSITION High‐quality, advanced asset & strategy DEVELOPMENT-READY ESG COMMITMENTS High‐margin graphite project To drive interest from investors and customers COMMERCIAL BATTERY ONGOING SUPPORT FROM STRATEGIC ANODE PROGRAM CORNERSTONE INVESTOR with no HF or toxic chemicals To underw
Slide 24: Appendix
APPENDIX ev1minerals.com.au
Slide 25: Detailed Graphite Peer Comparison Analysis and References
APPENDIX DETAILED GRAPHITE PEER COMPARISON ANALYSIS AND REFERENCES Ticker EV1.ASX MNS.ASX EGR.ASX RNU.ASX WKT.ASX BKT.ASX VRC.ASX TON.ASX NEXT.TSX Market Cap (A$M) 71 401 245 484 114 213 51 39 454 Resource 2.0 9.4 3.0 6.6 4.5 16.6 22.6 3.0 8.7 (Mt contained graphite) Resource (Mt) 20 174 31 87 42 21
Slide 26: ev1minerals.com.au
Phil Hoskins Managing Director E: info@ev1minerals.com.au P: +61 8 9200 3426 ev1minerals.com.au
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