Lomiko Metals — Investor Presentation (October 2022)
35 slides from Lomiko Metals's investor presentation, October 2022
Slide 1: Developing a pipeline of critical mineral properties in Quebec
Developing a pipeline of critical mineral properties in Quebec for a North American climate success story October 2022
Slide 2: Disclaimer
DISCLAIMER This presentation is not a prospectus, offering memorandum or an advertisement and is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscr
Slide 3: Land Acknowledgement
Land Acknowledgement We would like to begin by acknowledging that the land/projects where we operate are located within the traditional land of the Algonquin Anishnaabeg and Cree Eeyou Istchee Peoples. Our vision is to embrace Indigenous people and Indigenous values within our projects in order to d
Slide 4: Lomiko purpose: The operator of choice in Quebec
Lomiko purpose: The operator of choice in Quebec By putting people first We are building a strategic stockpile of critical Strong investment proposition and leading minerals assets in Quebec with vision and values US IRA (inflation Reduction Act) stipulates requirements for incentives to have 100% o
Slide 5: Lomiko Metals catalysts
Lomiko Metals catalysts For a long-term solution to our EV industry La Loutre PEA stage moving Early-Stage Grenville Bourier Early-Stage towards PFS Graphite properties - Graphite Lithium • Completed 13,113 metres in 79 • Acquired 6 new prospective • Surface and airborne field holes diamond drill pr
Slide 6: Why investing in Quebec is the right choice
Why investing in Quebec is the right choice Quebec critical minerals and Lomiko can generate premium pricing • The Quebec Mineral Exploration Association (“QMEA”) ECOLOGO recognizes and promotes environmental, social and economic best practices: the first certification of its kind for mineral explor
Slide 7: Natural flake graphite is the most important component in all EV batteries
Natural flake graphite is the most important component in all EV batteries on the market today • 95% of the anode is made of graphite and it is the heaviest mineral in the EV battery making it costly and unsustainable to import into North America • Lomiko is developing the strategic stockpile of cho
Slide 8: The challenge is lack of supply in North America
The challenge is lack of supply in North America • Current capacity at 769 GWH • There is demand for 800,000 of SPG (“Spherical Graphite”) per year, or 1.6Mt pa of graphite concentrate per year • Opportunity - Lomiko can provide 10% of this demand and 30% of demand in Quebec (according to its PEA) f
Slide 9: 1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate
1.5m of EVs in Quebec requires 300,000tpa of graphite concentrate 1.5m EVs in Quebec by 2030 means 150 GWh of capacity needed for batteries per Annum • Spherical Graphite requirement for 150GWh battery capacity is 150,000tpa • Graphite Concentrate 95% Cg requirement for 150GWh capacity is 300,000tpa
Slide 10: Graphite shortfall starting in 2027
Graphite shortfall starting in 2027 Shortfall to increase to 8Mt by 2040 Projected Anode Demand (Mt) Graphite Market Balance - Projected Demand and Supply (Mt) 12,000,000 9,000,000 8,000,000 DEMAND IS EXPECTED TO 10,000,000 EXCEED SUPPLY BY 2023 – 7,000,000 AND CONTINUE BEYOND 6,000,000 8,000,000 La
Slide 11: Critical Minerals Map of Quebec-new land package
Critical Minerals Map of Quebec-new land package www.lomiko.com TSXV: LMR OTC: LMRMF FRANKFURT: DH8C 11
Slide 12: Lomiko new natural flake graphite claims: 14,255 hectares
Lomiko new natural flake graphite claims: 14,255 hectares of mineral claims • 236 claims in total, on 6 projects in the Laurentian region of Quebec and within KZA territory • Within a 100 km radius of the Company’s flagship La Loutre graphite project • Large disseminated flake graphite mineralizatio
Slide 13: La Loutre graphite project close to infrastructure
La Loutre graphite project close to infrastructure with great geological setting La Loutre • Stage of development: Preliminary Economic Assessment ("PEA") • Starting Preliminary Feasibility Study EV Zone • Initiated infill-drill program Battery • Initiated metallurgical studies Zone • Initiated base
Slide 14: La Loutre Resource Estimate: focus on conversion
La Loutre Resource Estimate: focus on conversion La Loutre Resource Estimate (Effective Date: May 14, 2021) - PEA Cut-off EV Deposit Battery Deposit Total In-Situ Run-of- In-Situ In-Situ Class Run-of-Mine Run-of-Mine Grade Mine Grade Grade Graphite (%) Tonnage Graphite Tonnage Graphite (kt) Tonnage
Slide 15: La Loutre: PEA establishes a critical path ahead
La Loutre: PEA establishes a critical path ahead for improvements and project de-risking • Resources: Ind 23.2 Mt @ 4.51% Cg for 1 Mt of graphite and inf 46.8 Mt @ 4.01% Cg for 1.9 Mt of graphite using cut-off grade of 1.5% Cg. La Loutre Graphite Project • PEA - LOM plant production of 21,8 Mtonnes
Slide 16: La Loutre: PEA Layout – great base to build on
La Loutre: PEA Layout – great base to build on No conventional tailings facilities • Waste rock and tailings co-disposed WASTE ROCK & • Efficient site water management EV ZONE CODISPOSAL PILE • Pits sequenced to maximize the returns starting from North – EV Pits to South – Battery Pits • Stockpiles
Slide 17: La Loutre progress in 2022
La Loutre progress in 2022 ESG and business purpose ✓ Community engagement sessions held and retained a strategic advisor to work with Kitigan Zibi community ✓ Completed 12 months of the baseline studies – full cycle ✓ Ecologo – completed the certification process ✓ Long-term working relationships w
Slide 18: La Loutre study priorities underway
La Loutre study priorities underway Continue with Community and First Nations engagement and communications • Meeting with the local communities and all stakeholders and shareholders are ongoing Continue with environmental baseline studies • Completed 4 full seasons of Environmental Baseline studies
Slide 19: 2022 summer drilling program completed – Actual drilled
2022 summer drilling program completed – Actual drilled Completed summer Infill and extension drilling along the strike of the deposits to confirm ore body shape, quality and extents for a total of 13,113 metres in 79 holes. Focus on higher grade EV Zone • Completed 53 drill holes in EV Zone for a t
Slide 20: 2022 summer drilling program completed – Actual drilled
2022 summer drilling program completed – Actual drilled Completed summer Infill and extension drilling along the strike of the deposits to confirm ore body shape, quality and extents for a total of 13,113 metres in 79 holes. Finished drill program at Battery Zone • Completed 26 holes in Battery Sout
Slide 21: 2022 summer drilling program – La Loutre EV Zone plan view
2022 summer drilling program – La Loutre EV Zone plan view 21
Slide 22: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-003 Section LL-22- 06&07 Source: InnovExplo Consulting 22
Slide 23: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-008 & 10 Section LL-22- 06 & 12 Source: InnovExplo Consulting 23
Slide 24: 2022 summer drilling program – section view
2022 summer drilling program – section view Section LL-22-014 & 21 Section LL-22- 15, 18 & 23 Source: InnovExplo Consulting 24
Slide 25: La Loutre initial metallurgical program confirms high purity concentrate
La Loutre initial metallurgical program confirms high purity concentrate Expanded Graphite +80 & +50 mesh • ProGraphite (Germany) and Corem (Quebec) confirm graphite from La Loutre is suitable for a wide range of traditional markets such as refractories, crucibles and friction products, or expanded
Slide 26: La Loutre metallurgical program Next steps
La Loutre metallurgical program Next steps Next steps: • Metallurgical sample selected from the existing core from EV and Battery zones • 800kg of the core was sent to SGS Lakefield for testing • SGS started with the sample preparation and initial met work in June 2022 • Produce flotation concentrat
Slide 27: Corporate budget requirements for La Loutre
Corporate budget requirements for La Loutre The regional exploration program and Bourier work is being funded with Canadian Flow-Through financing Phase 1 at La Loutre Cost ($M) To PFS for La Loutre Cost ($M) Resource Drilling $3.5 Mining & Mining Geotechnical $0.7 Metallurgy $0.6 Infrastructure Geo
Slide 28: NPV scenario analysis: Positively leveraged to graphite price increases
NPV scenario analysis: Positively leveraged to expected graphite price increases • PEA used a graphite concentrate selling price of US $916/t. • The current forecast selling price is US $1,000/t of graphite concentrate (source: Benchmark). • Current public information indicates a selling price of ov
Slide 29: Bourier lithium project: highly prospective region
Bourier lithium project: highly prospective region Bourier Adjacent Properties: ⮚ Galaxy Resources ⮚ Nemaska Lithium ⮚ Critical Elements 1. Rose Tantalum Project FS stage 2. Lemare Property: ▪ New Discovery – March 2017 Drilling 21m @ 2.65% Li2O 41.5m @ 1.71% Li2O 23m @ 1.61% Li2O Source: Critical E
Slide 30: Bourier lithium project
Bourier lithium project Bourier 2021 Field Work Summary ▪ The analytical results feature high- grade values for zinc and tungsten and anomalies in lithium-tantalum-cesium and gold. ▪ The lithium-tantalum-cesium anomalies represent an unprecedented discovery and spans along a 2.5 km long NE-trending
Slide 31: Bourier lithium project identifies exploration targets with Li anomalies
Bourier lithium project identifies exploration targets with Li anomalies 2021 Exploration Results Bourier Exploration Program 2022 ▪ Located on Nemiscau greenstone belt and Critical Elements south-east of the Cree Eeyou Istchee James Bay territory in Quebec. ▪ Summer: intensifying prospection over a
Slide 32: Comparable company analysis demonstrates value creation potential
Comparable company analysis demonstrates value creation potential Oct 3, 2022 Market Cap Measured Indicated Inferred EV/Resource Symbol Price Company Name Shares O/S Cash TEV ($M) (Mt) (Mt) (Mt) (M&I) TSXV:NOU 7.45 Nouveau Monde Graphite Inc 55.8 32.1 388.4 415.4 24.5 95.8 4.5 3.2 TSX:NEXT 2.37 Next
Slide 33: Diverse leadership with solid experience building businesses
Diverse leadership with solid experience building businesses MANAGEMENT TEAM BOARD OF DIRECTORS STRATEGIC ADVISORS Belinda Labatte, CEO, CFA, MBA, ICD.D A. Paul Gill, Executive Chair Normand Champigny, CEO 20 years experience in capital markets. Fluent in CEO of Pampa Metals, Lomiko Technologies, an
Slide 34: Capital Structure
Capital Structure As at Oct 3, 2022 Shares Issued & Outstanding 287.4M Market Cap (Oct 3) $8.6M Options 13.0M Cash* $5.2M Warrants 96.7M Debt $- Share Units (PSU/RSU/DSU) 8.9M Total Enterprise Value $3.4M * Cash balance as at last interim financials – April 30, 2022 Fully Diluted 406.0M Source: Comp
Slide 35: Shareholder value generation in 2022
Shareholder value generation in 2022 THE LOMIKO GRAPHITE OPPORTUNITY PLUS OTHER CATALYSTS LA LOUTRE Bourier lithium exploration – Collected over Completed 13,113meters Drill program to 1,100 soil samples and 400 rock samples in increase resource quality and rerate inferred July, next steps include g