Almonty Industries Inc. · NASDAQ:ALM
Almonty Industries — Investor Presentation (December 2024)
60 slides from Almonty Industries's investor presentation, December 2024
Slide 1: Investor Presentation: Building The World's Largest Tungsten Mine
TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F INVESTOR PRESENTATION Building The World‘s Largest Tungsten Mine December 2024 INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC. 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON C
Slide 2: Disclaimer for Forward-Looking Statements
DISCLAIMER FOR FORWARD-LOOKING STATEMENTS When used in this investor presentation, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to id
Slide 3: Agenda
I ALMONTY AT A GLANCE II MARKET III SANGDONG IV PANASQUEIRA AGENDA V CORPORATE VI APPENDIX
Slide 4: Almonty at a Glance
+ ALMONTY I ALMONTY AT A GLANCE
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT ISSUED CAPITAL MARKET CAP TSX SHARE PRICE TSX:AII in C$ 258.6m C$ 230.2m 1,5 Common Shares At C$ 0.89 on Nov 29th, 2024 CASH LONG-TERM DEBT C$ 12.9m C$149.8m 1 C$ 0.89 as at Sep 30, 2024 Includes loans to shareholders PROJECT FINANCE TOTAL ORE RESERVES US$ 75.1m 101mt 0,5 KfW proj
Slide 6: Almonty's Global Presence
ALMONTY‘S GLOBAL PRESENCE Diversified and Experienced Operator in Conflict-free Regions 3 1 4 2 + Downstream In S. Korea, see slide 23 & 42 PRODUCING ASSET UNDER CONSTRUCTION DEVELOPMENT PROJECTS 1 2 3 4 PANASQUEIRA – PORTUGAL SANGDONG – SOUTH KOREA VALTREIXAL – SPAIN LOS SANTOS TAILINGS – SPAIN ACQ
Slide 7: Tungsten – Problematic Sources, One Solution: Sangdong Mine
TUNGSTEN – PROBLEMATIC SOURCES, ONE SOLUTION: SANGDONG MINE Tight Market With Geopolitical Tension THE ISSUE THE SOLUTION Scarce Metal: High Dependency on China Unique position in the tungsten market with short term growth ➢ Dependence on China and Russia fuels market tension due to lack of transpar
Slide 8: Almonty's Success Built on 3 Main Pillars
ALMONTY‘S SUCCESS BUILT ON 3 MAIN PILLARS PRODUCTION – CONSTRUCTION – DEVELOPMENT PANASQUEIRA – PRODUCTION SANGDONG – CONSTRUCTION VALTREIXAL – DEVELOPMENT ➢ Worlds longest producing mine - 136 years of almost ➢ Valtreixal will potentially be Almonty’s third high quality uninterruptable exploitation
Slide 9: Reasons to Invest into Almonty
10 REASONS TO INVEST INTO ALMONTY Unique position in the tungsten market due to first-class projects & proven track record I PROVEN TRACK RECORD VI 2 NEAR-TERM GROWTH STORIES Sold operations for 21x earnings during a previous supply squeeze in 2007 Low-risk extension at Panasqueira as well as Phase
Slide 10: Striding Forward in Ongoing Improvements – Updates
STRIDING FORWARD IN ONGOING IMPROVEMENTS – UPDATES DESIGNATION AS AN OPPORTUNITY DEVELOPMENT SPECIAL ZONE Yeongwol County, home to Almonty’s Sangdong Mine, has been designated an Opportunity Development Special Zone, providing tax breaks and 1 infrastructure upgrades to boost critical mineral develo
Slide 11: Market
+ ALMONTY I] MARKET
Slide 12: Economic Importance: Tungsten Price in Highly Profitable Zone
TUNGSTEN PRICE IN HIGHLY PROFITABLE ZONE TUNGSTEN PRICE IN US$ PER MTU TIGHT MARKET WITH GEOPOLITICAL TENSION $360 $350 ➢ South Korea, the largest per capita tungsten consumer worldwide, imports 94.7% $340 $333 Highly Profitable of its tungsten supply from China $320 Price Zone ➢ Increasing dependen
Slide 13: Main Reasons for Growing Tungsten Demand
MAIN REASONS FOR GROWING TUNGSTEN DEMAND EV & HYBRID VEHICLE BOOM COULD BOOST TUNGSTEN ➢ Tungsten is an increasingly important component in the production of Hybrid batteries due to its ability to enhance their high energy density ➢ Development in the battery field is ongoing as performance, safety
Slide 14: Current Trends & News
CURRENT TRENDS & NEWS POTENTIAL NEW DOMESTIC DEMAND FOR TUNGSTEN IN SOUTH KOREA? ➢ Daegu City signed an investment agreement with IMC End Mill on February 7, 2024, to construct a tungsten powder manufacturing facility ➢ IMC End Mill, an affiliate of the Berkshire Hathaway-owned IMC Group, will lead
Slide 15: Tungsten – A Key Element for Future Technologies (I/III)
TUNGSTEN – A KEY ELEMENT FOR FUTURE TECHNOLOGIES (I/III) THERMONUCLEAR ENERGY – MATERIAL WITH EXCELLENT HEAT CONDUCTIVITY AND MELTING POINT NEEDED ➢ Necessary Material: Tests confirm that an alloy of 90%tungsten, 7 % nickel and 3% iron brings the best performance. As this (or similar) alloys will be
Slide 16: Tungsten – A Key Element for Future Technologies (II/III)
TUNGSTEN – A KEY ELEMENT FOR FUTURE TECHNOLOGIES (II/III) TUNGSTEN WIRE – EFFICIENT & STRONG MATERIAL FOR PHOTOVOLTAIK APPLICATION ➢ Tungsten wires superior strength and efficiency are driving its replacement of traditional materials in diamond wire cutting, enhancing solar cell production and reduc
Slide 17: Tungsten – A Key Element for Future Technologies (III/III)
TUNGSTEN – A KEY ELEMENT FOR FUTURE TECHNOLOGIES (III/III) ENHANCING HYDROGEN FUEL CELL DURABILITY VIA TUNGSTEN OXIDE COATING ➢ Tungsten Oxide Coating: POSTECH researchers developed a WO3 coating for hydrogen fuel cell electrodes, improving durability and reducing catalyst degradation ➢ Selective Co
Slide 18: Molybdenum's Vital Significance in Steel Production
MOLYBDENUM’S VITAL SIGNIFICANCE IN STEEL PRODUCTION TIGHT MARKET WITH GEOPOLITICAL TENSION MOLYBDENUM PRODUCTION SPLIT (2022e) ➢ Molybdenum, mainly a low-grade by-product, results from the insufficiency of high-grade projects Others 9% ➢ Globally, there are very few stand-alone molybdenum mines, wit
Slide 19: Sangdong
+ ALMONTY II] SANGDONG
Slide 20: Almonty's Trinity – Asset with Opportunities
ALMONTY’S TRINITY – 1 ASSET WITH 3 OPPORTUNITIES Almonty’s Trinity - SANGDONG 1 ➢ One of the largest and highest-grade tungsten 1 deposits in the world Tungsten ➢ Construction well advanced, production start in 2025 ➢ Unprecedented floor price guarantee with a Deposit US$235/MTU floor price Phase 1
Slide 21: Impressions (November 2024) – Construction Well Underway
IMPRESSIONS (NOVEMBER 2024) – CONSTRUCTION WELL UNDERWAY 20
Slide 22: Spacious Design to Accommodate New Equipment for Expansion
SPACIOUS DESIGN TO ACCOMONDATE NEW EQUIPMENT FOR EXPANSION 21
Slide 23: What's New? – Updates from Sangdong
WHATS NEW? – UPDATES FROM SANGDONG U.S. Researchers Visit Sangdong to Global Geologists Visit Sangdong Mine Boost Tungsten Supply Outside China During 2024 IGC Conference U.S. government researchers assessed the Renowned geologists visited the Sangdong Sangdong Mine’s progress, which could Mine to s
Slide 24: Well Attended Ceremony at Sangdong – Impressions
WELL ATTENDED CEREMONY AT SANGDONG – IMPRESSIONS 23
Slide 25: Shovel Ready Project in a Supportive Tier 1 Jurisdiction
SHOVEL READY PROJECT IN A SUPPORTIVE TIER 1 JURISDICTION Low pre-production capex, great economics & long mine life US$ 228m C$ 72.0m Start-Up Capex Annual EBITDA @1.2m tons & $300/mtu $110/mtu 90+ years Cash costs per ton* Potential Mine Life ➢ Fully permitted, construction well advanced, ca. US$66
Slide 26: Project Financing & Offtake Agreement
PROJECT FINANCING & OFFTAKE AGREEMENT Reputable partners confirm high quality project 15-YEAR OFFTAKE AGREEMENT 70% OF CAPEX FINANCED THROUGH SENIOR PROJECT FINANCE LOAN GOVERNMENT GUARANTEE GUARANTEES ~US$580M REVENUE SIZE US$ 75.1m ➢ Global tungsten product major INTEREST 3-M LIBOR/SOFR + 2.3% ➢ L
Slide 27: Sangdong Massive Orebody with Outstanding Economics
SANGDONG MASSIVE OREBODY WITH OUTSTANDING ECONOMICS SIGNIFICANT RESERVE UPSIDE HIGHEST GRADE LOWEST COST HIGHEST RECOVERY Largest tungsten deposit in the world One of the highest grades in the world. Estimated lowest quartile production World-class recovery of 85% and by Inferred Resource based on O
Slide 28: Sangdong Project – Supplying the Western World for Decades
SANGDONG PROJECT – SUPPYING THE WESTERN WORLD FOR DECADES Key milestones ahead – nearing completion 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRAWDOWN & GRACE PERIOD DEVELOPMENT FUND REPAYMENT PLANT CONSTRUCTION PHASE II COMPLETION & COMMISSIONING EXPANSION IN PLANT 2026/2027 CONSTRUCTION 9
Slide 29: Downstream at a Glance
DOWNSTREAM AT A GLANCE Key Factors & Financial Summary Phase I Phase II + Tungsten PROJECT SUMMARY Phase II (financed & in construction) Oxide (TO) plant Expected start of production 2025 2026/2027 2026/2027 WO3 production ~2,300 mtu ~4,750 mtu Tungsten Oxide gets produced from Sangdong concentrate
Slide 30: Financial Outlook – Sangdong Tungsten
FINANCIAL OUTLOOK – SANGDONG TUNGSTEN Near-term production and short-term upside Sangdong Phase I + II Phase II – Doubling Production with Minimal Investment 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 $150 ➢ Almonty has a rare and unique opportunity to organically expand its production capaci
Slide 31: Sangdong's Silent Hero: The Molybdenum Story Unfolded
SANGDONG'S SILENT HERO: THE MOLYBDENUM STORY UNFOLDED ALMONTY KOREA MOLY ➢ Almonty Korea Moly (AKM) Project with its large molybdenite-quartz vein stockwork is located on Sangdong’s existing fully permitted, mining lease, about 190km southeast of Seoul ➢ Significant maiden molybdenum resource define
Slide 32: Significantly Higher Grades – Sangdong One of Its Kind
SIGNIFICANTLY HIGHER GRADES – SANGDONG ONE IT‘S KIND Peer-Group Comparison of Resource/Reserves Grades (% Mo) 0,30% 0,30% HIGHEST GRADE GREAT SYNERGIES 0.26% MoS2 Sangdong Deep Moly has the Due to the approximaty to Sangdong 0,25% 0,25% highest grades of the peer group Tungsten, there are significan
Slide 33: Geological Overview: Understanding Sangdong's Molybdenum Deposits
GEOLOGICAL OVERVIEW: UNDERSTANDING SANGDONG'S MOLYBDENUM DEPOSITS DEPOSIT TYPE ➢ Tungsten Mineralization: Tabular skarn horizons within Myobong Slate, sourced from hydrothermal fluids beneath Sangdong Granite. ➢ Molybdenum Insights: Molybdenum presence in Jangsan quartzite, forming Sangdong Molybden
Slide 34: Outlook: Advancing Resource Classification Through Drilling
OUTLOOK: Advancing Resource Classification and Orebody Knowledge Through Drilling Drill-Campaign – Resource Upgrade and Understanding: Preparations for the drilling campaign have begun and are nearing completion. This campaign is crucial for upgrading inferred resources to indicated, supporting a 10
Slide 35: Strategic Asset: Unlocking the Value of Our Molybdenum Reserves
STRATEGIC ASSET: UNLOCKING THE VALUE OF OUR MOLYBDENUM RESERVES CURRENT STRENGTH POTENIAL STRATEGIES STRATEGIC MOLY PROJECT: 6 REASONS TO BOOST ALMONTY IS CURRENTLY EVALUATING 4 STRATEGIES OVERALL COMPANY WORTH TO ENHANCE THE COMPANY VALUE* 1.1 FULLY PERMITTED Orebody located in the same permitted a
Slide 36: Panasqueira
+ ALMONTY IV PANASQUEIRA
Slide 37: Panasqueira – WO3 Production for More Than a Century
PANASQUEIRA – WO3 PRODUCTION FOR MORE THAN A CENTURY Proven track record in a first-class jurisdiction KEY FACTS DEPOSIT SUMMARY ➢ Located in Covilhã, Castelo Branco district, Portugal Tonnage WO3 Grades ➢ Worlds longest producing mine - 136 years of almost uninterruptable exploitation – still produ
Slide 38: Panasqueira – Getting to the Next Level
PANASQUEIRA – GETTING TO THE NEXT LEVEL Economic Model and Future Outlook PANASQUEIRA – GETTING TO THE NEXT LEVEL The actual resource map of L4 THE ➢ Although current production levels remain steady, seizing the opportunity to access L4 is crucial shows the veining system VISION for safeguarding aga
Slide 39: Panasqueira – Cleanest Output Material
PANASQUEIRA – CLEANEST OUTPUT MATERIAL Panasqueira Tungsten Mine Overview Historical Legacy (1886-Present) Excellent Output Quality Unique Orebody & Excellent Permits ➢ 136 years of Uninterrupted Exploitation ➢ Highest grade recovery with nearly 74% ➢ Operational Continuity – exploitation permit is
Slide 40: Panasqueira – Visit by the US Department of Commerce/DLA
PANASQUEIRA – VISIT BY THE US DEPARTMENT OF COMMERCE/DLA Impressions of the visit by the US Department of Commerce on September 29, 2023 ➢ Delegation of the US Department of Commerce visited the Panasqueira mine in Portugal ➢ General discussions regarding the planned L4 extension ➢ Open dialog about
Slide 41: Panasqueira – Mining Facilities
PANASQUEIRA – MINING FACILITIES Existing Infrastructure & Equipment will be used for the L4-Extension ➢ Panasqueira mine has extensive mining, processing and environmental infrastructures ➢ Plays an important role in the regional economy, as the local community depends almost entirely on the mine fo
Slide 42: Panasqueira Tungsten-Tin Mine
PANASQUEIRA TUNGSTEN-TIN MINE 41
Slide 43: Corporate
+ ALMONTY V CORPORATE
Slide 44: Almonty Group Resource Summary
ALMONTY GROUP RESOURCE SUMMARY Classification Deposit Tonnage (kt) Grade (%) Contained metal Sangdong 7,896 kt 0.45% ~36 kt TOTAL RESERVES Panasqueira 1,951 kt 0.20% ~4 kt (proven & probable) Los Santos 3,767 kt 0.19% ~7 kt Valtreixal 2,549 kt 0.34% ~9 kt Total 16,163 kt 0.3% ~56 kt Sangdong 8,029 k
Slide 45: Valtreixal – Another Valuable Tungsten Source Within Europe
VALTREIXAL – ANOTHER VALUABLE TUNGSTEN SOURCE WITHIN EUROPE Almonty’s well-located high-potential development target KEY FACTS Tonnage DEPOSIT SUMMARY ➢ Located in northwestern Spain, 250km from the Los Santos Mine WO3-equivalent Grades 15.4Mt ➢ Almonty acquired the project from SIEMCALSA, the same
Slide 46: Almonty Group – Production & Financial Growth Profile
ALMONTY GROUP – PRODUCTION & FINANCIAL GROWTH PROFILE Pro-Forma Forecast – Almonty Combined* Los Santos Panasqueira Sangdong Base Case Sangdong Extension Sangdong Oxide Plant 2024F 2025F 2026F 2027F 2028F 2029F 2030F 100% 400 400 Revenue (Left) EBITDA (Right) 75% 300 % EBITDA Margin US$m 51% 53% 53%
Slide 47: Sangdong ESG
SANGDONG ESG Equator principles and beyond. Assessment of environmental and social risks of major projects based on 10 principles, including regular 1 monitoring by independent third parties and intensive dialogues with the local population and their organizations Almonty has agreed to develop the S
Slide 48: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7 47
Slide 49: Appendix
+ ALMONTY Vi APPENDIX
Slide 50: Appendix 1 – Board of Directors and Officers
APPENDIX 1 – BOARD OF DIRECTORS AND OFFICERS Director Experience ➢ Currently a Partner of Almonty Partners LLC, a privately-held company specializing in tungsten mining investments and has over 16 years of experience in the tungsten mining industry Lewis Black ➢ Formerly Chairman and CEO of Primary
Slide 51: Appendix 2 – Downstream Extension
APPENDIX 2 – DOWNSTREAM EXTENSION Almonty’s plans to participate in the battery anode & cathode manufacturing industry SOUTH KOREA & KEY DEMAND DIRECTIONS ALMONTY’S CURRENT PRODUCTION CHAIN 5 Reasons for the importance of Tungsten Oxide PROCESSING 65% WO3 SUPPLY TO 1. South Korea is the largest per
Slide 52: Appendix 3 – Current Trends & News
APPENDIX 3 – CURRENT TRENDS & NEWS RESOURCE NATIONALISM LIKELY TO INCREASE ➢ The Mining & Metals sector is experiencing a surge in nationalism, potentially driving increased sales and production within individual nations, as indicated by the latest SHIFTING Resource Increase sentiment survey by Whit
Slide 53: Appendix 4 – Current Trends & News
APPENDIX 4 – CURRENT TRENDS & NEWS TUNGSTEN’S INCREASING ROLE IN THE BATTERY & EV/HYBRID MARKET “According to the researchers at N1 Technologies, as the next-generation battery, they had added tungsten and carbon multi-layered nanotubes while working on anodes. This will recharging the NanoBolt lith
Slide 54: Appendix 5 – Tungsten Uses I/II – Industries & High-Tech World
APPENDIX 5 – TUNGSTEN USES I/II – INDUSTRIES & HIGH-TECH WORLD SAW TEETH FOR PLATE FOR STONE HAMMER BLADES OF A CIRCULAR SEMICONDUCTORS AUTOMOTIVE MARKET DRILL SAW 65G 400G FILM PROJECTOR CASING FOR LAMP LUXURY WATCH INSERTS FOR AIRCRAFT BALLISTIC EQUIPMENT 35G 750G 74 4f145d46s2 W TUNGSTEN 183.84 P
Slide 55: Appendix 6 – Tungsten Uses II/II – Military Applications
APPENDIX 6 – TUNGSTEN USES II/II – MILITARY APPLICATIONS OF TUNGSTEN TUNGSTEN IN MILITARY USE ➢ High Melting Point: Tungsten's melting point of 3,442°C is the highest of any element, making it ideal for creating materials that can withstand high temperatures without deformation ➢ Hardness: Tungsten
Slide 56: Appendix 7 – Massive Growth Potential in Battery & Semiconductors
APPENDIX 7 – MASSIVE GROWTH POTENTIAL IN BATTERY & SEMICONDUCTORS TODAY TOMORROW SCARCE METAL HIGH DEPENDANCY ON CHINA DOWNSTREAM EXTENSION IN KOREA Sangdong could solve dependency Battery & semiconductor industry offers massive additional growth potential for tungsten market ➢ Korea – location of t
Slide 57: Appendix 8 – Growing Market with Risk of Tightening
APPENDIX 8 – GROWING MARKET WITH RISK OF TIGHTENING TUNGSTEN SUPPLY GAP * Anticipated demand is forecasted to rise at a Compound Annual Growth Supply Rate (CAGR) averaging 3.45%. Certain projections indicate a more robust 130 Demand growth rate of 7-8% per annum. However, despite the expected alignm
Slide 58: Appendix 9 – Defined as Conflict Material – Lack of Transparency
APPENDIX 9 – DEFINED AS CONFLICT MATERIAL – LACK OF TRANSPARENCY CONFLICT MATERIAL “3TG” Tin (Sn) Tantalum (Ta) Tungsten (W) Gold (Au) BACKGROUND AND CURRENT SITUATION NON-TRANSPARENT SUPPLY & STRONGLY CHINA DOMINATED ➢ The SEC has implemented regulations to address the ➢ While the US & Europe have
Slide 59: Appendix 10 – Construction in Ore
APPENDIX 10 – CONSTRUCTION IN ORE Mineralization very close to the surface allows for immediate start of production 58
Slide 60: www.almonty.com
WWW.ALMONTY.COM INVESTOR PRESENTATION ADDRESS CONTACT US PREPARED BY ALMONTY INDUSTRIES INC: 100 KING STREET WEST SUITE 5700 +1 647 438-9766 PRESIDENT & CEO: LEWIS BLACK TORONTO, ON CANADA info@almonty.com M5X 1C7
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