Slide 1: Element 25 Limited Investor Update
For personal use only Element 25 Limited Investor Update Building a globally significant, low cost, high purity manganese project to supply high growth markets. AMEC Convention - June 2019
Slide 2: Disclaimer
Disclaimer For personal use only 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, ma
Slide 3: Corporate Overview
Corporate Overview For personal use only Financial Information Share Price Performance ASX Ticker E25 Shares on Issue 89M Share Price $0.19 Market Capitalisation $16.9M Cash & Investments ( at 31 March 2018) ~$8.5M Debt Nil Enterprise Value ~$8.5M Board and Management Seamus Cornelius Chairman Major
Slide 4: The High Purity Manganese Market
HPMSM For personal use only The High Purity Manganese Market EMM Processing ore to to high purity chemical products, NOT manganese concentrate for bulk shipping. EMD
Slide 5: What is High Purity (Class 1) Manganese?
What is High Purity (Class 1) Manganese? For personal use only Electrolytic Manganese Metal (“EMM”) • Used in series 200 SS and specialty alloys • ESTABLISHED DEMAND • Largest market, ~1.8Mt or ~US$4B annually, steady growth • E25 Primary product • STEADY GROWTH • Chinese producers: lack of domestic
Slide 6: High Purity Manganese Market Forecast = Strong Growth
High Purity Manganese Market Forecast = Strong Growth For personal use only Reference: Metal Bulletin Commissioned Manganese Market Report April 2018 6 AMEC Convention – June 2019
Slide 7: Competitor's Costs are Rising
For personal use only Competitor’s Costs are Rising China’s competitiveness is being eroded by rising costs.
Slide 8: Chinese Producers are struggling to control costs
Chinese Producers are struggling to control costs… For personal use only • Ageing infrastructure. • Expensive African ore; local ores are depleted. • Labour intensive processes. • Difficulties sourcing labour and rising costs. • Increasing power costs • Complex logistics. • Waste disposal and other
Slide 9: Chinese manganese mines are depleted
Chinese manganese mines are depleted… For personal use only • Local production is dropping YoY. • Grades are declining YoY. • Imports rising each year. • Demand continues to grow. • Ore costs are now the biggest cost driver for Chinese high purity manganese producers. • Has a negative impact on Chin
Slide 10: Costs Are Going Up in China
Costs Are Going Up in China For personal use only 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/ 10
Slide 11: World Class Manganese Resource
For personal use only World Class Manganese Resource Australia’s largest onshore manganese resource is ripe for development to produce high purity products, NOT manganese concentrate for bulk shipping. Multiple competitive advantages mean lower costs of production.
Slide 12: The Butcherbird Manganese Project
The Butcherbird Manganese Project For personal use only • Huge resource, currently >260 Mt of manganese ore in Measured, Indicated and Inferred JORC resources*. • Excellent local infrastructure (bitumen road and gas pipeline). • 100% owned by Element 25 Limited. • Located in WA, a tier 1 mining juri
Slide 13: World Class Resource, Great Infrastructure Endowment
For personal use only World Class Resource, Great Infrastructure Endowment Goldfields Gas 550km PORT HEDLAND Pipeline Measured and Indicated Resources are the focus of the PFS Gt Northern MLA 52/1074 Highway AN RT EM PO E TL FR 0km 5 10 13
Slide 14: Simple Geology
Simple Geology For personal use only • 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 prelimin
Slide 15: A Lower Cost, Cleaner Processing Pathway
For personal use only A Lower Cost, Cleaner 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 For personal use only • 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. •
Slide 17: Existing Producers use an Inefficient and Polluting Flowsheet
Existing Producers use an Inefficient and Polluting Flowsheet For personal use only HIGH COST Mn ORE COMPLEX LOGISTICS ENERGY INTENSIVE HIGH EMISSIONS Current producers: • energy intensive RE-LEACH TO MAKE BATTERY GRADE SULPHATE • high emissions • rising costs • inefficient 17 AMEC Convention – June
Slide 18: Element Uses a Simpler, Lower Cost, Cleaner Process
Element 25 Uses a Simpler, Lower Cost, Cleaner Process For personal use only Element 25 Process: • cheaper local ore • cleaner, cheaper leach process • renewable energy simpler, lower cost, cleaner, greener 18 AMEC Convention – June 2019
Slide 19: Energy Solution: Gas, Wind or Solar
For personal use only Energy Solution: Gas, Wind or Solar “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 20: Renewable Energy - Lower Emissions and Cost Effective
Renewable Energy - Lower Emissions and Cost Effective For personal use only • Cost of renewables steadily Gas Generation declining. Cost (Est.) • Renewables are cheaper than fossil fuel sources. • Maximising renewables will maximise project economics. Renewable Cost Are Lower: A recent 25 year contr
Slide 21: Energy Optionality
Energy Optionality EMM EW consumes For personal use only ~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”) • Long mine l
Slide 22: Making Metals with Renewables - IDE
Making Metals with Renewables - IDE For personal use only INTERMITTENT DYNAMIC ELECTROWINNING Upside Case • Optimising electrowinning process to REDUCTION IN ENERGY COSTS, INCREASED PROFITS ~90% Renewables utilise dynamic energy supply. • Finding the limits on key variables such as Optimised Case vo
Slide 23: Next Steps for Element 25?
For personal use only Next Steps for Element 25? Scoping Study complete and positive. What is the pathway to development..?
Slide 24: Our Journey
Our Journey… For personal use only PROJECT PFS DFS BUILD PRODUCE GROW FINANCE Flowsheet Development - COMPLETE Resource Infill & Upgrade - COMPLETE Environmental Surveys - COMPLETE PFS Delivery Native Title Agreements– COMPLETE Estimated Q3 Power Solution – GONE TO TENDER 2019 Metallurgical Scale Up
Slide 25: Our Journey - Our Goal
Our Journey… For personal use only 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
Slide 26: For personal use only
For personal use only 26 AMEC Convention – June 2019
Slide 27: For personal use only
For personal use only 27 AMEC Convention – June 2019
Slide 28: For personal use only
For personal use only 28 AMEC Convention – June 2019
Slide 29: Thank you
For personal use only Thank you. For more information, please contact Element 25 Limited: +61 8 6315 1400 admin@e25.com.au www.element25.com.au
Slide 30: Appendices
Appendices For personal use only 30 AMEC Convention – June 2019
Slide 31: Competent Person's Statement
Competent Person’s Statement For personal use only 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 Australas
Slide 32: World Class Manganese Resource
World Class Manganese Resource For personal use only Category Tonnes (Mt) Mn (%) Si (%) Fe (%) Al (%) Measured 16 11.6 20.6 11.7 5.7 Indicated 41 10.0 20.9 11.0 5.8 Inferred 206 9.8 20.8 11.4 5.9 Total 263 10.0 20.8 11.4 5.9 • Significant potential remains to increase the resource with further drill