Slide 1: Element 25 Limited Investor Update
Element 25 Limited Investor Update Globally significant, sustainable manganese production for growing markets. 2018 AGM Update
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 84M Share Price $0.18 Market Capitalisation $15.1M Cash & Investments ( at 31 October 2018) ~$10.5M Debt Nil Enterprise Value ~$5M Top 20 Shareholders ~67% Board and Management Major Shareholders Seamus C
Slide 4: The High Purity Manganese Market
The High Purity Manganese Market A hidden opportunity within the world’s fourth largest metal commodity segment.
Slide 5: What is High Purity (Class 1) Manganese?
What is High Purity (Class 1) Manganese? • High purity manganese is a premium product segment. Three main products: • It makes up about 14% of the global manganese market by volume; but • Electrolytic Manganese • It makes up about 40% of the global manganese market by value. Metal (“EMM”) • Electrol
Slide 6: High Purity Manganese Market Forecast = Strong Growth
High Purity Manganese Market Forecast = Strong Growth Reference: Metal Bulletin Commissioned Manganese Market Report April 2018 6 2018 AGM Update
Slide 7: Costs Are Going Up in China
Costs Are Going Up in China And… quality domestic ore supplies are largely exhausted… Reference: https://www.crugroup.com/knowledge-and-insights/spotlights/2018/manganese-metal-price-hikes-a-storm-in-a-teacup/ 7
Slide 8: World Class Manganese Resource
World Class Manganese Resource Australia’s largest onshore manganese resource is ripe for development
Slide 9: The Butcherbird Manganese Project
The Butcherbird Manganese Project • Australia’s largest onshore manganese deposit. • Huge resource, currently >180 Mt of manganese ore in Indicated and Inferred JORC resources*. • Excellent local infrastructure (bitumen road and gas pipeline). • 100% owned by Element 25 Limited. • Located in WA, a l
Slide 10: Great Infrastructure Endowment
Great Infrastructure Endowment 550km PORT HEDLAND BITUM EN GOLDFIE HIGH WAY L DS GAS PIPELIN TL T AN OR E EM P F R 0km E 5 10 2018 AGM Update 10
Slide 11: Simple Geology
Simple Geology • Flat lying stratiform ore body, very simple geology. • Ore zone starts at surface and is laterally continuous. Manganese orebody • No selective mining required. • Starts at surface • Low strip ratio • Low strip ratio of 0.2:1 based on • Low cost mining preliminary pit optimisations.
Slide 12: Renewables: Lower Cost & Emissions
Renewables: Lower Cost & Emissions “New research from Morgan Stanley estimates that renewables will be the cheapest source of power in the world in less than three years.” Business Insider Australia, 8 July 2017.
Slide 13: Renewable Energy - Lower Emissions and Cost Effective
Renewable Energy - Lower Emissions and Cost Effective • Cost of Wind and solar steadily Gas Generation declining year on year. Cost (Est.) • Costs competitive with the cheapest fossil fuel sources. • Modelling supports maximising renewables in combination with gas. Renewable Cost Are Lower: • Lower
Slide 14: Energy Optionality
Energy Optionality EMM EW consumes ~6.5 MWh/t of Gas generation: electricity • Reciprocating gas engines/turbines • Cost effective base case power solution • 100% gas power assumed in the Scoping Study Wind turbines: • Competitive Levelised Cost Of Energy (“LCOE”) Expected • Long mine life supports
Slide 15: A Unique Processing Pathway
A Unique Processing Pathway “Every once in a while, a new technology, an old problem, and a big idea turn into an innovation.” Dean Kamen, Inventor.
Slide 16: Breakthrough Technology
Breakthrough Technology • CSIRO co-developed process produces high purity manganese with less energy and lower emissions. • Products include high purity manganese sulphate (“HPSM”) for NMC Li-Ion battery cathodes and Electrolytic Manganese Metal (“EMM”) for specialty steels. • These are high value p
Slide 17: Existing Producers use an Inefficient and Polluting Flowsheet
Existing Producers use an Inefficient and Polluting Flowsheet HIGH COST Mn ORE COMPLEX LOGISTICS ENERGY INTENSIVE HIGH EMISSIONS Current producers: RE-LEACH TO MAKE BATTERY GRADE SULPHATE • energy intensive • high emissions • rising costs • inefficient 17 2018 AGM Update
Slide 18: Element 25 Uses a Simpler, Lower Cost, Cleaner Process
Element 25 Uses a Simpler, Lower Cost, Cleaner Process Element 25 Process: • cheaper local ore • cleaner leach process • renewable energy • simpler, lower cost, cleaner, greener 18 2018 AGM Update
Slide 19: Next Steps for Element 25?
Next Steps for Element 25? Scoping Study complete and positive. What is the pathway to development..?
Slide 20: Priority Items
PFS Scoping Study Completed, PFS Underway completion scheduled for Q3 2019 KEY FACTORS FOR OPTIMISATION: • METALLURGY: Scale up and pilot testing of flowsheet to confirm parameters for plant engineering. • SCALE: Very large resource means optimal scale is not limited by resource size. Pre-feasibilit
Slide 21: Our Journey… Our Goal…
Our Journey… PROJECT PFS DFS BUILD PRODUCE GROW FINANCE Our Goal… • Produce the cleanest, greenest manganese products globally. • Become a globally significant high purity manganese producer. • Achieve best in class quality and cost profile. • Operate ethically and sustainably in a Tier 1 jurisdicti
Slide 22: Thank you.
Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
Slide 23: Appendices
Appendices 23 2018 AGM Update
Slide 24: Competent Person's Statement
Competent Person’s Statement Note: The information in this presentation that relates to Exploration Results, Exploration Targets and Mineral Resources 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 Minin
Slide 25: World Class Manganese Resource
World Class Manganese Resource Resource is not closed off • Significant potential remains to increase the resource with further drilling. and can be extended. • Scale of development not resource constrained. Reference: Element 25 Limited ASX release dated 12 October 2017 (originally released under t