Falcon Energy Materials Plc · TSXV:FLCN
Falcon Energy Materials — SRG Mining — Investor Presentation (March 2023)
22 slides from Falcon Energy Materials's investor presentation, March 2023
Slide 1: SRG Mining: Corporate Presentation
SRG Mining: Corporate Presentation March 2023 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) 113.8 Warrants (M)(2) 14.9 Options (M)(3) 8.7 RSU and DSU’s (M) 1.9 Fully Diluted Shares Outstanding (M) 139.4 Market Capitalisation (C$) $77M Major Shareholders La Mancha Fund 24.1% Cash (C$) $11.1M Sama Re
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 essential input for Lithium-Ion Batteries (“LIB”) GRAPHITE ❖ Offtakers seeking diversity of supply as China dominates cu
Slide 5: Graphite is Poised to Follow a Similar Price Response as Other EV Metals
Structural Issues Not Limited to Lithium…… LOCATIONS CHALLENGES (May ‘19-’22) PRICE +383% +26% +154% +173% Source: Benchmark Minerals, Trading Economics Graphite is Poised to Follow a Similar Price Response as Other EV Metals 5 www.srgmining.com | TSX.V SRG
Slide 6: Cost of a Battery Cell and Expected Progress
Cost of a Battery Cell and Expected Progress % OVERALL COST (2021) CATHODE EV CHASSIS 51% LITHIUM NICKEL COBALT MANGANESE CATHODE + PRODUCTION 80% OF ALL CELL MANUFACTURING OCCURS IN CHINA 24% 86% OF BATTERY ANODE ANODE MATERIAL IS 12% PRODUCED IN CHINA FLAKE GRAPHITE SEPARATOR 7% Approximate Timeli
Slide 7: 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 8: EU Giga Factories
EU Giga Factories >400 Gwh Planned Capacity But No Raw Material Procurement Strategy…… 8 www.srgmining.com | TSX.V SRG
Slide 9: 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 10: 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 11: Partners, Technical Consultants & Advisors
Partners, Technical Consultants & Advisors SRG Feasibility Study Has been Prepared by World-Leading Consultants 11 www.srgmining.com | TSX.V SRG
Slide 12: Vertical Integration Strategy
Vertical Integration Strategy GRAPHITE CONCENTRATE ~$1,200/T ❖ Updated Feasibility Study on first phase of development completed ❖ Discussions underway to finance construction capital expenditure (debt & equity) + PHASE I ❖ Target to produce approximately 94ktpa of high-purity flakes in concentrate
Slide 13: 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 14: 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 15: The Key Resource Qualities
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 Ca 15.1 25.0 ICP Results Alkaline Roasting Mass Recovery 84.5% Cr 4.5 <5 Concentrate Grade 95.4% Cu 0.9 <5 (July 2022) Distr. Grade
Slide 16: 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 17: Key Focus Areas & Opportunities
Key Focus Areas & Opportunities ❖ Additional drilling campaign to increase reserves and resources along strike and at depth RESOURCES UPDATED FS ❖ Increased plant production to 100ktpa graphite concentrate (from 50ktpa in 2019 FS) H1 2022 ❖ Trade-off between contract vs. owner mining ❖ Trade-off bet
Slide 18: 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 19: Appendix
Appendix 19 www.srgmining.com | TSX.V SRG
Slide 20: 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 21: Metallurgical Tests
Metallurgical Tests ❖ Metallurgical tests performed at ProGraphite and SGS Canada returned excellent results ❖ 10 tonnes of material remains available for future testing by potential offtakers (40 clients have already tested the material) ❖ ProGraphite results summary: ❖ Main elemental impurities ar
Slide 22: 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 22 www.srgmining.com | TSX.V SRG