Falcon Energy Materials Plc · TSXV:FLCN
Falcon Energy Materials — SRG Mining — Investor Presentation (March 2024)
21 slides from Falcon Energy Materials's investor presentation, March 2024
Slide 1: SRG Mining: Corporate Presentation
SRG Mining: Corporate Presentation March 2024 1 www.srgmining.com | TSX.V SRG
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You
Slide 3: Company Highlights
Company Highlights Capital Structure (1) Share Price Performance Basic Shares Outstanding (M) 117.4 $0.90 Options (M)(2) 8.5 $0.70 Update RSU and DSU’s (M) 2.5 $0.50 1 Mar ‘23 1 Sep ‘23 1 Mar ‘24 Fully Diluted Shares Outstanding (M) 128.4 Major Shareholders Market Capitalisation (C$) $67M La Mancha
Slide 4: Investment Highlights
Investment Highlights ❖ Graphite has significant and well-established traditional usage (refractory bricks, lubricants, etc.) ❖ Active Anode Material (“AAM”) is a growth market as an essential input for lithium-ion batteries GRAPHITE ❖ Offtakers seeking diversity of supply as China dominates current
Slide 5: The Role of Graphite
The Role of Graphite Source: IEA The Anode is Almost Exclusively Made from Graphite 5 www.srgmining.com | TSX.V SRG
Slide 6: The Double Graphite Problem
The Double Graphite Problem Note: Percentages for mining and EV output based on actual production. All other percentages are based on production capacity 1. Refers to the country where production occurs Source: IEA, FT China Dominates Downstream EV Battery Supply Chain, Especially in Graphite 6 www.
Slide 7: Decoupling vs. De-risking
Decoupling vs. De-risking Financial Times, 13 February 2023 Financial Times, 30 April 2023 Financial Times, 4 May 2023 Financial Times, 13 March 2023 Bloomberg, 30 March 2023 Bloomberg, 12 August 2023 Volvo, 4 February 2023 Reuters, 1 June 2023 De-risking is the Solution to Complex Supply Chain Real
Slide 8: Vertical Integration Strategy
Vertical Integration Strategy GRAPHITE CONCENTRATE ~$1,400/T ❖ Updated Feasibility Study on first phase of development completed ❖ Discussions underway to finance construction capital expenditure (debt & equity) - ❖ Target to produce approximately 94ktpa of high-purity flakes in concentrate INCREASI
Slide 9: La Mancha Investment
La Mancha Investment “La Mancha has seen significant successes in the gold industry, and this investment in SRG is a logical continuation of the Fund’s strategy to invest in commodities necessary to shift the energy system away from one dominated by hydrocarbons. The supply-demand dynamics for clean
Slide 10: Executive Team
Executive Team Benoit La Salle, FCPA, FCA, MBA – Director and Chairman of the Board: Founder, President & CEO of Semafo, Current President & CEO of AYA Gold & Silver Inc. and Executive Chairman of Sama Resources Inc. Matthieu Bos, MSc – President and Chief Executive Officer: Former Executive Vice Pr
Slide 11: Lola Graphite Project Mining License
Lola Graphite Project Mining License 1 Mining Permit (#22709) 1 SRG Mining Inc. 94 km2 Lola Graphite Project 2 Exploration Permit (#23178) SRG Mining Inc. 3 92 km2 Gogota Nickel-Cobalt Project 4 5 1 2 “Zone Stratégique” 3 Guinea Ministry of Mines 99 km2 4 “Zone Stratégique” 4 Guinea Ministry of Mine
Slide 12: Lola Graphite Project
Lola Graphite Project ❖ Completed NI 43-101 compliant Bankable Updated Feasibility Study March 2023 by DRA ❖ Environmental and mining permit received from Government of Guinea ❖ 15 year mining permit awarded on Nov. 2019 for 94 Km2 Resource Statement (Cut-Off Cg 1.0% oxides, 1.4% FR) Category Tonnag
Slide 13: Flake Distribution
The 4 Key Resource Qualities 8 8 1&2 0 Size Distribution & Grade 30 SP20 Purification Results Head Grade 4.14% Cg PPM Limit Parameter Overall Recovery 84.2% Al 3.4 <20 ICP Results Alkaline Roasting Ca 15.1 25.0 Mass Recovery 84.5% Cr 4.5 <5 Concentrate Grade 95.4% Cu 0.9 <5 (July 2022) Distr. Grade
Slide 14: Feasibility Study Results
Feasibility Study Results 2023 FS – 94ktpa Sensitivity Analysis Direct $136M Price $1,120 $1,260 $1,400 $1,540 $1,681 Indirect $25M Avg. $36M $45M $53M $62M $71M Sensitivity (Post-Tax) Capex Contingency $17M CFO Owner’s Cost $6M NPV8% $78M $148M $218M $287M $357M Total $185M IRR 15% 20% 25% 29% 33%
Slide 15: Capital and Operating Costs
Capital and Operating Costs Pre-Production Capital Costs Operating Costs (US$/t) Mining $8M Mining (contract mining) $171 Process Plant $62M Process $323 Tailings & Water Management $4M Site General & Administrative $51 Site Infrastructure $11M Direct $545 Power Plant & Distribution $36M Concentrate
Slide 16: Key Focus Areas & Opportunities
Key Focus Areas & Opportunities ❖ Increased plant production to 100ktpa graphite concentrate (from 50ktpa in 2019 FS) ❖ NI 43-101 compliant Feasibility Study (“FS”) completed in March 2022 EPC PROPOSAL MINE [H1 2024] ❖ Solicited EPC proposals for mine development, aim to reduce development capital (
Slide 17: Appendix
Appendix 17 www.srgmining.com | TSX.V SRG
Slide 18: Synthetic vs. Natural Graphite
Synthetic vs. Natural Graphite TOP 10 PRODUCERS OF NATURAL GRAPHITE (2020E, tonnes) 8 Sulfur Nitrogen Particulate 80g 14g 6g 0 Oxide Oxide Matter 5kg of CO2 Per kg of graphite SYNTHETIC GRAPHITE 1-2kg of CO2 Per kg of graphite NATURAL GRAPHITE SYNTHETIC GRAPHITE NATURAL GRAPHITE Water and air pollut
Slide 19: Flake Size Distribution Comparison
Flake Size Distribution Comparison FLAKE SIZE DISTRIBUTION 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Syrah Battery Minerals Mason Graphite Sovereign NextSource SRG Nouveau Monde Triton South Star Northern (Mozambique) (Mozambique) (Canada) (Malawi) (Madagascar) (Guinea) (Canada) (Mozambique) (Braz
Slide 20: ESG Principles
ESG Principles ❖ Health, safety, and environmental leadership come first ❖ Target ZERO Recordable Incident Rate and ZERO Environmental Incident Rate ❖ Development in line with best practice health, safety and environmental standards HSE ❖ Active engagement with national and regional stakeholders and
Slide 21: 1320 Graham boulevard, suite 132 Mont-Royal, Quebec Canada H3P 3C8
1320 Graham boulevard, suite 132 Mont-Royal, Quebec Canada H3P 3C8 [email protected] TSX.V: SRG 21 www.srgmining.com | TSX.V SRG