Business
Cadoux : AGM Presentation
Cadoux : AGM
About this update from Cadoux Limited
Annual General Meeting November 7 th 2024 2 3 What We Do Innovative and integrated developer of critical and strategic minerals projects Developed demonstrated process to produce high quality HPA for the growing energy efficiency markets and broader tech applications Developing a world class downstream rare earth production facility to strengthen Australia's critical minerals supply chain through 50% interest in Minhub Operations Developing and commercialising downstream value-add opportunities in critical minerals 4 Cadoux Critical Minerals Project Summary Dual Project Summary High Purity Alumina (HPA) Rare Earths - Minhub Innovative business models Well developed process flowsheets Technological competitive advantage Exceptional product (purity / quality) Staged production expansion strategies Near term development catalysts Outstanding project economics Visible market upside • Stage 2 Project development • Unique multi-sourced feedstock underway flowsheet • FEED level engineering • FS due for completion shortly • Flexible operating design and • Accelerated production pathway staged production growth defined • SSP FS due shortly • Garnering strong supply chain • Proven product quality & market support appeal • Supporting Australia's critical • Significant project value minerals strategy demonstrated 5 High Purity Alumina Cadoux HPA Project - Outstanding Investment Metrics US$1,1014m US$186m US$131m 55% AFTER-TAX NPV (@ 8%) PROJECT IRR 25 YEAR AVG ANNUAL EBITDA ANNUAL CASHFLOW 25 YEARS 3.2 YEARS US$6,661 US$202m HPA CASH COST DCF PROJECT FORECAST PROJECT PAYBACK PER TONNE CAPEX ESTIMATE 10,000 TPA HPA PRODUCTION US$26,400/-T HPA SALES PRICE 15% PRODUCT IS 5N 7 HPA - Addressing the Major Risks Challenges Technology and Scale-up 1 Will Cadoux's developed high-quality HPA process work efficiently, effectively and economically - especially at scale? Commercialisation 2 Will Cadoux be able to develop and fund the capital required to get the HPA project into production? Market 3 The HPA market is not well understood and is not transparent. Solutions Cadoux has demonstrated the quality of the project through its extensive R&D and pilot plant studies. Project technology and engineering development has focused on production risk mitigation and includes the small-scale demonstration and production facility (SSP). Cadoux is very focused on the commercial development of the HPA project. Attention includes addressing the technical challenges of the process as well as determining the funding requirements of the project. Cadoux has been exploring a number of funding options to address the funding requirements. Cadoux has gained considerable insight and comfort in the HPA market since entering the industry. Direct customer outreach has been positive and engaging. Independent product research indicates ~30% CAGR* and a looming supply deficit. Cadoux has a well-developed understanding of customer specifications and offtake requirements via the development of HPA products. 8 Technavio (2024): Global High Purity Alumina Market 2024-2028 HPA Development Pathway Commercialising our innovative HPA production process Proven HPA quality and purity Demonstrated HPA project Project Valuation Pathway 1 Pilot Plant 2 CSI* 3 value of over US$1.0 bn Well timed strategy to meet increased forecast demand FS/FEED 4 Final Investment Decision Clear pathway to production and achieving project valuation Cadoux (FYI) HPA Project DFS April 2021 * Customer Service and Innovation Centre ** Small Scale and Demonstration HPA production facility 5 Staged Commercial Facility SSP** 6 NPV # US$1.01b 9 Rare Earths Minhub Operations