European Green Transition (LSE:EGT) — Company Presentation

0:00 Good afternoon, and welcome to the European Green Transition PLC Investor Presentation. Throughout this recorded meeting, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Just click Q and A, scroll to the bottom, type your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand over to Cavill Frill, cofounder and director. Good afternoon, sir.

0:32 Paul, thank you very much, and thank you very for dialing in tonight. I know this is a quick out of the blocks, but, basically, as the title says here, we want to talk about an option. Let's say it's solely an option at this point in time, but, hopefully, it'll be a lot more than an option over copper tailings recycling project in Cyprus. Aidan will talk us through in more detail. But I think during the IPO, and I know feedback from a lot of investors is that there were there was an eagerness to make sure we do have some mining assets. It will do a quick update, and those are up in Sweden. We're probably the most exciting rare earth asset in Europe. I'd say, but I do know our investors during the roadshow made it very clear that we are not a mining company. So today is for significant update post IPO is very definitely not mining.

1:18 It's cleaning up the aftermath of mining that's copper recycling project in Cyprus. As we've all seen in recent weeks, BHB bidding for Anglo goes to show you copper is a good place to be. There isn't that many copper tailing projects around, but this one looks interesting. And more importantly, Aidan has some knowledge of it. He had been done. He took some photographs. He did some work on it in 2017, so he can tell us more what he thinks. Why I like it and why I'm excited about it is that this is my fifth IPO. To fight the odds on everyone before. Every time I've done an IPO, we we have done something different, I think it was told today. Our r and s this morning is the first time people use color pictures on the r and s. Well, hopefully, this European green transition company will be quite novel and unique. My only guiding light on every one of them, I'm usually the largest shareholder.

2:14 I'm usually the last person to sell, and I'm usually the lowest paid in the companies, but I usually have a large stake, and I'm always the last person to sell shares. So my guiding light is, can we double or triple the share price? You, as investors, are not investing in small cap in companies to get five or 10 or 20% per annum. You can get none in the big caps. You're investing like I in small cap to get a double or triple, and that's what we're aiming to do here. So without further ado, let me just bring you through where we're going. So first of all, in case for any of you, I'm sure people on the board have seen this before, just a quick recap on where we're from and what we're planning. What we're planning, we see a substantial opportunity to build sustainable and profitable business in European green economy.

3:00 This profitable is very important. Our project today could have, if we really want it, within less than twelve months of exercise option, getting a certain amount of revenue from a water treatment plant and taking out the copper. Ain't no time over that. So this is one of the first projects you'll see. We could potentially have revenue in year one. Every other business we've been involved in, we have revenue in year one and we're profitable in year two and that is the mantra I'm determined to stick to in this company. We're only four or five weeks out, we're showing some of this potential to have revenue within the first year. We know that green economy's thrown up huge opportunities. We have some green assets as we speak, mainly our Swedish rare earths. And I emphasize that is a mining asset. We will never be mining. We'll bring in the big heavy guns, the heavy lifting. Our view in small cap companies, we find it and somebody with the skills and the else helps to develop

3:57 that. I do have a mantra. I like targeting distressed and undervalued assets. I'm not saying today's asset is distressed or undervalued, but I think it's an attractive value if we decide to access option. And we have a track record. Very, very briefly, the three more important. This is my fifth IPO. Cove Energy. I was creating a development the other day one. That was August 2009. It was on AIM for sub 1,000,000 when Michael Nolan, John Craven got involved and took control of it. I was there helping in the background. I was not the founder,

4:29 but I was very involved. Thirty three months later, was sold for 1,900,000. That was pretty good. They acquired Artemis out of administration. The one I absolutely led and I'm very proud of, Amrit Pharma, the IPO 2016. It wasn't a 100 x, but it was a very good five, six x. And if you take in the 10,000,000 dividend payment that came from the regional Amrit shareholders in last six weeks, it's probably a seven x. So Amrit worked rather well. Again, distressed assets. The one some of you tonight will probably know is open orphan. Again, we we IPO ed in 2019 and defied the odds. People say, what are you doing there? Well, we acquired two little companies then for 4,000,000, HVivo for 13,000,000, put the two together, and within two years neither had ever made profits in their life before. And within twelve months of acquiring them, we had an EBITDA profit and within twenty four months, we had them generate significant profits.

5:27 H. Vivo, which is just open orphan with the name change today, is a very attractive 200,000,000 plus market cap, very substantial tens of millions in the bank, 55 odd million revenue last year, growing and paying the dividend. So that's the way we want to go. Oops. Gone the wrong way. Oh, let me go back again. I hit the wrong button. Let me bring back to where we go. Okay. Look. Presenting team, I'm not gonna talk about beans. It's my fifth IPO, so I'm not gonna bore you as who I am or what I am. Aidan, maybe give us a couple of minutes, a brief overview on yourself. Yeah. Thank you, Carl. So Aidan Lavelle is my name. I am the CEO. I'm a chartered geologist by background. I've been working in AIM listed companies for many years now. Started off with a company called Stratix in East Africa, and then I was a founder shareholder of Eris Resources.

6:19 And, more importantly, while I was there, we, managed a strategic alliance for four years in Sweden, with Centerra Gold. So I'm very familiar with operating on the ground in Sweden, which is one where one of our projects is. And so I've been working with Carl over the last two years now, building up the assets in the company, and very excited by the new acquisition that we announced or the new option for for acquisition that we announced today. So we'll talk about that later. So over to you, Carl. Thanks, Hayden. Am going the right way? Yeah. I'm going the right way. So, look, briefly our current portfolio, I emphasize at the IPO, I say we'll have some resource ones. We'll have recycling projects. We're gonna have e waste project, and we

7:06 might have carbon sink projects at some stage in the future. So this is gonna be a busy company. Every previous IPO before, we were going like, little Duracell bunnies and that that's the only way. Think small cap companies, you've gotta move very fast. We leave the lumbering and the slumbering to the bigger companies. So portfolio, I'm gonna tell you more about the rare earths as of this week. We think that could be the first commercial rare earths project in Europe. We will not be doing that. We will bring in the large, well capitalized companies into it. Small companies find it, the big companies should develop it. We have copper graphite in Sweden. That's lower priority. Saxony, cradle metal, lower priority. But the real priority we wanna talk, we wanna keep the session relatively short today, but probably wrap it up within the half hour or so, is the Cypress copper tailings recycling project. We did announce the IPO. We would be targeting recycling projects, and this is the first. It's not gonna be the last one.

8:04 Basically, it's potential to recover meaningful amounts of copper in a capital efficient manner. And like all recycling projects within Europe, there's a number of them. When you rehabilitate and clean up and recycle the product, generally, those lands are not for agriculturalists for quite some time in the future. So they make excellent solar facilities. But we're also in discussions to a broad range of other attractive green opportunities, including solar, wind, for the rehabilitation, processing, e waste recycling, and critical minerals. So all we're trying to say that we're going to have a busy, interesting, exciting weeks and months ahead with the view of building this company fast. We are not going to blow our cash. The plan is we are not going out to raise more money. We can make a small amount of money go a very long way by using other parties leveraging their balance sheets.

9:03 On that, the m and a model, how we're gonna do this business. I was a banker for fifteen years, buying and selling other people's business. So I learned quite fast how to buy companies. It's a skill. So anything you can buy if you pay too much, We like buying at a very attractive price. So we've identified numerous green economy assets. Some of the more attractive ones are on the balance sheets of lumbering small cap and companies going nowhere fast, and we may be looking at acquiring some of those. Our plan is always to crack acquire for a fraction of the invested capital. Are we doing that here? Not sure. Aden will be heading to Cyprus. He has been there before to look at it, and we'll make up a a good view in the coming weeks ahead. Many of the projects we're looking, they're good projects, including this one. And this one, we gather, has been unable to raise sufficient cash.

9:53 EGT's plan is always usually to acquire without management teams, but particularly this one, if there's good teams with it, they can come. What we don't, we don't think of big lumping companies with overheads and structures. We usually structure the deals at modest, small upfront payments. You can see what we did today. Just over a 100,000. It's very modest. And when you think in overall market cap of $1,718,000,000, so I think that's 100,000,125 over 18. That's modest in my books. You know, some people might say it's not modest, but think on overall scheme of things, it's modest. And in future payments, we always put them on milestones on achieving these actives. We derisk our projects. We try and keep them cost effective and CapEx to the absolute minimum. For major projects, and that's where the rare earths project, I say small cap companies should find it. The big companies are good. For major, we'll always bring in the large partners.

10:47 And for instance, where there's solar available such as in this project, we'll bring in the solar provider who has the solar balance sheets, and we will get an income stream on any future solar projects. So our goal is to build a sustainable and profitable business, and that's our guiding light. Aidan, I might hand over to you, and you might take us briefly through our copper project. And then Aidan's also gonna give us a quick update on was in Sweden and recent weeks of where he got with the Swedish project. Aidan, over to you. Yep. Thank you, Carl. So it's a really interesting time in Europe. The the EU has finally passed the European Critical Raw Materials Act, and that was signed into law in the past month. And so that actually mandates that 25% of critical metals in Europe should be sourced from recycling here in Europe. So we feel that it's really good timing to have this coming online now, and it fits perfectly with our Cypress Copper project, which is a recycling project.

11:43 And we're really excited by the not only by by this coming into play, but also by the the recent uptick in the copper price and the very strong fundamentals for copper, which is an essential commodity for the green energy transition.

12:02 So I'm gonna bring it through the the the Cypress project. This is a tailings recycling project, and we have exposure here to near term revenue from this project. We have signed a twelve month exclusive option agreement with the licensed solar, and that's over the Limni site. You can see the pictures there of the that lovely blue water, which is very much enriched with copper. And that's the site of a former, mine, the Limni Mine, which was actually the second biggest mine in Cyprus, and it had 8,100,000 tons at 1.1% copper. That was mined between 1937 and and 1978, so quite a long time ago. And the tailings from that deposit sat on a a piece of land beside the coast, oxidizing, exposed to the air. And then, in 2010, all of that was trucked back up to backfill the pit at at the mine. So what has resulted now is that you get metals, in the water circulating in the old pit, and you can clearly see that in the pictures. So we see great potential to actually extract that copper, from the existing pit waters, and there is scope to, to recover meaningful amounts of copper.

13:14 We will be doing the the due diligence on that and and looking into that. And so we that's why we have signed this option, for a year. But not only that, as copper as Colin mentioned, the site has great optionality, so there is potential for other revenue generation there. So I'll just bring you on to the next slide. The optionality for value creation is well, number one, we have the low cost hydraulic pumping of waters, to directly extract copper, and that is a low impact solution. It could be rapidly implemented and would also produce cash flow within twelve months of executing the option. So you can see how big the pit is there in that picture. That is the pitch picture of the pit prior to it being infilled, and you can see that almost 8,000,000 tons of tailings have gone back into that. And not only from this mine, but from adjacent deposits that were also mined and processed at the same facility, two and a half kilometers northwest of where this mine is. So the tailings, from Lemmy and the other deposits actually are back in this pit, and that's that's there's a lot of copper sitting in that in the in the material there.

14:25 And then if, in addition to the water potential, there's also a more conventional tailings reprocessing option that we will we will investigate. So we will work with consultants and and local stakeholders in the coming months to assess the viability and best route to near term cash flow with a capitalized investment. And we would expect actually to exercise this option much sooner, and and we probably won't have to wait twelve months. I think in the next two, three months, we can, work rapidly with consultants and see the see the real potential for this. And then as you can see in that picture on the bottom there, the the nice flat area of the the the tailings that have been backfilled into the pit, that would make a really good solar site.

15:10 Cypress actually has, an 80% reliance on fossil fuels at present, But, yeah, it is it is an excellent location for solar energy, and there's excellent sites around the the pit and also on the backfill tailings. So we'll we will look at the potential for solar energy development here. But, of course, we will be bringing in a partner and, discussing with local stakeholders, how to build an energy asset that will deliver long term income, an income stream to European green transition. And so on this map, you can just see how well, located Cyprus is. It gets a lot of sunshine. It is an EU country. So from this map, you can see that it is actually one of the EU countries that gets the highest solar irradiance in the EU.

16:00 So potentially, the solar opportunity from these sites is is great, and especially when you consider that Cyprus really needs to diversify its energy away from fossil fuels.

16:12 Okay. So briefly on to, what we've been up to on our other projects, so the Alstrom Railroad project, one of Europe's leading railroads projects located in South Sweden. We've done a lot of work there over the past few months, and I'm just gonna bring you through that. So we had field work, at Alserum and Jupiter, which is a prospect to the Northwest, about two kilometers from where the historic resource is. That that work has been, quite, very successful, I should say, in mapping of the Jupiter prospect, has outlined a district scale system. We have a very, very large new target area. We've sent a lot of samples to the lab in the past, two months, and we have results pending. And, last month, we announced as well that we had received the drill permit. So we have a a very flexible drill permit, that lasts for two years that allows allows us to drill essentially all of the targets, that we intended to drill, and it will allow us or our partner also to do an infill program, on the resource. But, of course, we we will be talking, to partners about that.

17:18 And also last month, we had the SGU, the Swedish Geological Survey on-site. They have recently, commenced a brand new mapping program of this region and just released a very large dataset of airborne magnetic, and electromagnetic data, which is essentially available for free to us. And that is, a really good resource to have to expand out, and better understand the mineralization. And also on the last one, we had a very positive community meeting. So you can see there on the lower left image, I presented the plans and, you know, the the general area that we were working in, to locals. We received some very positive feedback there. They're very happy to be informed of where exactly we will be working and what exactly we were we are doing. So that's really in line with our strategy to have full and transparent communications with the the local stakeholders.

18:13 And it's been very well received. We're very pleased with, how they have accepted and actually really approved of of the work and the plans moving forward. So we have a lot of news flow in the pipeline. So as I mentioned, we have rock chip and channel samples from Jupiter. We intend to get them fairly soon. We also have a large composite sample from the Alstrom resource at GTK in Finland, and that is a sample we sent a couple of months back. And they've been doing some updated metallurgical results on studies on that, and that will really derisk the project for incoming partners. And then also, we have we plan to commence drilling in August at Alstrom and Jupiter. That would lead to news flow, in September and October with drilling results.

19:05 And in the meantime, we will be con commencing our due diligence on Cypress, and that, too, will have news flow. And then as Carl mentioned, we have ongoing review, reviews of other opportunities. So we have a strong m m m and a focus, and we expect to deliver substantial volume of additional news flow in the coming weeks and months ahead. So I'll hand back now to Karl, and he can summarize the opportunity that is in European green transition. Eidin, thanks very much. And so this approach tonight was just to give a quick light touch, quick catch up on the r and s this morning. So, hopefully, that would have filled people in. We've got a a bunch of questions, which I'm gonna read out now and some here that come in.

19:53 I will answer my questions when I say them. But look, in summary, we think there's a huge opportunity of what we're doing. We have a proven team. This is my fifth IPO. Four previous one, everybody made money from start to finish, and I'm an obsession with that. Because I'm the largest shareholder, my salary in European Green is 25,000, but I'm by far the largest shareholder at the IPO of £300,000 starting in a 10 p, and that I locked that up for three years, and all pre IPO shareholders are locked up, hard locked for three years. So it allows you, the real investors who are coming in at the IPO or post IPO, a chance to make up a decent bit of money. We've ranged we have a range of distressed assets and some not distressed. I'm not calling this one today particularly distressed, but it's a low cost assets probably. Right? We have a very flexible financial model. We have a low committed capital spending. Aidan highlighted that with a drill program open for the next two years in Sweden. What kills me about small cap miners, we raised 6,500,000.

20:52 I think before you look sideways, they've committed, and they're back in eighteen months. You don't hear from them till the money's gone and, please, sir, can you give me more? Our plan is not to spend. We spend a small proportion of the money we raised in Sweden to get a result, and we'll take it from there. Naturally, we're very ESG focused. I have young kids. I'm turning 60 this year. I've got a 11 year old, a 14 year old, a six year old. So what's the birthdays? Give out to me if they hear me. I can't remember. And they're regularly giving me I'll use the word chip. Daddy, what are you doing for the environment? And they're very we all know the younger generation are hyper focused in the whole climate change and climate warming and all that good stuff. So I think we all know it's the last week or two in London, and then Dublin has been pretty Baltic, so climate change hasn't come this far. But look, it's great being involved in the project. I go home and tell my kids, well, kids, look what I'm doing. I'm helping with part of the European clean energy transition.

21:47 So briefly, couple of quick questions. Just looking at ones that have just come in, and then we've got a printout from earlier ones, from James. EGT has a wide permit. Typically, projects are capital intensive. How do you envision the structure of bringing out value you see in securing the capital required? Well, this goes back to my banking days as an investment banker for fifteen years, but it also goes back having done four previous IPOs. I raise money. I contribute to the money it was raised, and I'm kinda unique. I treat your money, the shareholders' money, as my own money. And I just I've almost an allergic reaction when people raise money. Oh, let's go spend it. Let's pay ourselves a lot of money, and then let's go and raise more money and say we didn't get the result. So how we envisage to answer that question, securing the capital.

22:33 If the solar potential, we will never pay for solar. The world is full of very large utilities who will fund solar facilities. We can provide sites. If Aden gets lucky, this summer not drilling, and we get what we hope we get also from, we will bring in the heavy lifting. Is that one of the sovereign wealth funds in The Middle East? Is it a large miner? But we use their balance sheet. Insanity in the past as small mining companies. Small junior small description, just taking the money and blowing it. So we don't intend. So hopefully, James, your question's answered. We will use other people's. Our jobs have moved fast, put a number of puts together, get a decent share of the equity in the upside, and protect the downside by using other people's balance sheets. Hopefully, I answered that one.

23:20 Next question. Is the agreement for EGT to buy a 100% of budget? Absolutely. It's an option. It's not an agreement. This is an option. It's for twelve months. We know some of the partners around it. We've dealt with them in the past. Aden has been down there under look again. This is quasi minerals metals. He was down there under different ownership. We believe the current donors, we can work with them, but our plan would be over the two, three, four months to decide we're exercising the option. If we exercise it, it'll be a modest payment. And if you then, I would be very keen. Now this is to go to all the geological people to agree what's the best plan, but I would be very keen. And the beauty about small cap income is to show some revenue within the first year and go back. I can see that blue water. There's a very large copper content there and find a low cost way of harvesting that copper that's oozing out of the site. So, yes, if we exercise, we will have a 100% of the project. The former owners will probably get some carried interest in it.

24:20 What is the total consideration for the potential acquisition? We don't know. That's been honest. It's a kind of silk and see. We won't we don't believe we'll be paying a large consideration. Our Nomad would have been clear. We've given guidance. It's a modest upfront if we access the option. I'm optimistic we will exercise it. That's up for grabs. We need to find out. But there won't be a huge consideration. So folks, I don't want people worrying, oh, we're all blowing the shareholders cash. That's sure shareholders cash is sacrosanct. Your release mentions the current owners see great potential. Why don't the current owners wish to develop the site? I think I alluded that at the start of our conversation tonight is that when I said, a lot of companies can't raise cash. The current owners, I'm sure if they could have raised boxes of cash, they wouldn't be talking to us.

25:11 We've been lucky. We sold Amrit last year for 1,480,000,000. That was a bloody good exit. People made five, six times their money. We've got a lot of people on here tonight to see some of the names are recognized from hVIVO. I IPO ed hVIVO at five point seven p. It's trading well over 30 p. It had been as high as forty five p. We have made people money, and that's why we can go back and raise money. So we're of the view. We can raise money if necessary. But more importantly, we can use other people's balance sheet. The benefit in the background, you see I'm involved. I'm I'm still very much executive chairman of Poolbag that that has is a trajectory, hopefully, to grow very big. The I'm a team of point over my shoulder there. That's still the old logos of open orphan. That is h v v o. I'm in London tomorrow with Moe Can, our CEO, most literally printing money for us. So to answer your question, why does the current door is not funded?

26:06 It's not easy for people to raise money, and we currently have money, and we'll allocate a small proportion. Is gonna is a small proportion of money will go to. A small proportion of our money will go to this, and we'll bring in the all our parties then with the bigger balance sheet. Do you anticipate local opposition to the project? You know, as we don't know, Aiden made it very clear on his earlier parts that he's been up in Sweden, engaged in extensively. I think, hopefully, where we come in is that we are looking at a number of approaches. I think in the past, small cap aim and some bigger ones went in somewhat with jackboots and said, we have a right to drill. We have a right to do that. We do the opposite. We believe we're guests on these people's lands. We're guests on them. So I think, yes, there's always objections, but we'll work our way through them.

26:56 A recycling project has a has the more fundamental interest that technically you may. Not saying there is a problem there, but technically maybe you're not coming to make a bigger mess. You're checking to probably improve things that are already there. Why was the mine abandoned? I think very simply the mine was a very large mine. You saw the pictures, huge mine. And it wasn't abandoned. It basically ran out of production. So the waste was processed on the beach. I got there's a very large EU funding. There was millions of tons transported back up, put in to that rather large hole in the ground. So the mine came to the end of its life. We see the potential yet to be proven in those copper tailings. BHP see potential in Anglo copper, so we see potential. And it emphasizes potential.

27:43 But in the past, I'm not being cocky, we saw potential as a small group of us in a number of different public companies. And so far, we've managed to deliver in potential and that was whether it was FastNet, if it was Emirates, it was open or off in a pool bag. We like delivering on what we see potential. Look, finally, we did say we want to try and wrap up around the thirty minutes. And the last question I see here at the moment, how soon would you look to monetize a project or pass to a buyer? Look, we don't really like the word pass into a buyer. That's called quick flips, and that's what we're emphasizing in Sweden. If we're on here tonight telling people we're gonna quick do a quick flip anywhere, that means it's much more difficult. Small cap companies, I think London's the most amazing place in the world to do small cap IPOs, don't have to do quick flips. But what you can do is a rapid monetization and uplift as we reassure the market and build a trust that we're not gonna blow their cash in any one project.

28:42 And as we demonstrate, I think we've got a we've got to run very fast to prove we can bring in a funder, a player, an operator for Alstrom. The same with this project. Can we bring in a funder? And the job of these small companies such as us is to bring in the big parties. HVIVO in London has now five of the top seven pharma companies dealing with them. When I took it over in 2019, big pharma wouldn't touch HVIVO. It was all small caps. So we're now using big pharma to fund the rollout of Canary Wharf, two floors of Canary Wharf tour. So I think to answer that last question, how do we monetize? There's no quick flip, but we anything we're looking at, we see substantial value. And finally, say to repeat is this is not a mining company. Absolutely not. We do have some mining assets in Sweden that somebody else will help us deliver in their balance sheet.

29:35 This is proof our first post IPO runs is a recycling and copper. That's pretty cool and sexy. We are looking at e waste, and we're looking at carbon sinks and carbon credits. That was all listed as projects in our prospectus in the IPO. So if people would bear with us, let's we go oh, there's one moment. Just another lesson has come in. Are you looking at asset realization versus long term revenue? I love long term revenue from assets, and this is the difference of QuickFlip. So many people come in, shake it all around, think they're really smart, lift a bit of money off the market, and leave the mess for the next person. So we're looking for long term value, get revenue streams. The people who did this really well is the Canadians who built up royalty companies.

30:22 The Canadians would get out fast and early, bring in the big player and have a carried interest, a long term interest in the project so the local community doesn't get worried. Our real money will be the long term. If it's the mining assets, it'll be, revenue streams. If it's recycling, it'll be short term revenue, and then long term revenue streams as we potentially roll out solar. Folks, I'm conscious to stick. We say we say it'd be a half an hour short thirty minute presentation. So without further ado, I I think we'll wrap it up. As we have more projects, we'll do these very quickie thirty minutes updates, and I think Aidan's looking forward to being done on-site and seeing, let's say, where this project goes. So thank you very much. Fantastic. I will aid and thank you indeed for updating investors today. Can I please ask investors not to close the session? Should be automatically redirected to provide your feedback, and all the team can better understand your views and expectations.

31:16 So I'll take a few moments to complete. I'm sure it'd be greatly valued by the company. On behalf of the management team of European Green Transition PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all. Paul.