RARE EARTHS RECYCLING FOR THE PERMANENT MAGNET INDUSTRY

Transcription

1 Neodymium Oxide Neodymium Metal NdFeB Magnets Electric Motors RARE EARTHS RECYCLING FOR THE PERMANENT MAGNET INDUSTRY Corporate Presentation November 2018 TSX.V: GMA

2 ABOUT US GEOMEGA Rare Earth Elements in Canada INNORD GeoMega s innovation arm focused on scaling up ISR, a local, environmentally friendly REE recycling and refining technology. MONTVIEL 100% owned REE asset located in Quebec with a resource, permanent access and excellent infrastructure. Page 2 Geomega & Innord (GMA.V)

3 FORWARD LOOKING STATEMENT Our presentation contains forward looking statements not based on historical facts. Forward looking statements express, as of the date of this presentation, our estimates, forecasts, projections, expectations and opinions as to future events or results. The forward looking statements that are contained in this presentation are based on various assumptions and estimates by the Corporation and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward looking statements and readers should not place undue reliance on forward looking statements. We caution you that such forward looking statements involve known and unknown risks and uncertainties, as discussed in the Corporation s filings with Canadian Securities Administrators. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and including as regards the commercialization of any of the technology, general business, economic, competitive, political and social conditions. The Corporation expressly disclaims any obligation to update any forward looking statements, except as required by applicable securities laws. TSX.V: GMA

4 WHY INVEST IN REE SECTOR? 15 Lanthanide elements critical to our clean tech & high tech Lanthanum Cerium Praseodymium Neodymium Promethium Samarium Europium Gadolinium Terbium Dysprosium Holmium Erbium Thulium Ytterbium industries La Ce Pr Nd Pm [145] Sm Key product is the permanent magnet the driver of the renewable energy revolution & transportation electrification Eu Gd Tb Dy Ho Er Tm Yb Lutetium 71 Lu Yttrium 39 Y >85% mined in China Strong demand growth (Wind Power & EV Industry) Expected supply shortfall & Reducing exports from China Expecting Magnet REE price increase in coming years Page 4 Geomega & Innord (GMA.V)

5 REE INDUSTRY BOTTLENECK REE refining capacity is >90% in China Know how for Solvent Extraction (SX) is in China Organic solvents not environmentally friendly High CAPEX & difficult to permit outside of China Page 5 Geomega & Innord (GMA.V)

6 INNORD S SEPARATION OF REE ISR TECHNOLOGY Organic solvent free Clean technology for REE separation Sustainable & competitive alternative to SX Page 6 Geomega & Innord (GMA.V)

7 ISR SCALE UP PROGRESS DRAMATIC INCREASES IN CONCENTRATION AND CAPACITY Increase in Capacity (L) L L 2019 (F) 200 L CONCENTRATION (g REO / L) CAPACITY (LITRES) Log scale Page 7 Geomega & Innord (GMA.V)

8 ISR SCALE UP PROGRESS DRAMATIC DECREASES IN COST ($/L Capacity) $1,000,000 $100,000 COST ($/L Capacity) log. scale $10,000 $1,000 $100 $10 $ Decrease in Capital Cost ($/L Capacity) 2014 $5M / L 2019 (F) $500 / L PURITY RECOVERY RESIDENCE TIME Purity (% REO) Recovery Single Run Residence Time (hr/l Capacity) Range of SF in Solvent Extraction INCREASE IN SEPARATION FACTOR Separation factor (SF) Page 8 Geomega & Innord (GMA.V)

9 FEED MATERIAL Focusing on magnet based feed Grades >25% TREO (Nd, Pr, Tb, Dy) Two main sources available: 1. Magnet & alloy manufacturers residues 2. Bulk magnets end of life recycling Page 9 Geomega & Innord (GMA.V)

10 FEED MATERIAL October 25, st feed secured LOI with US based magnet manufacturer 1,000 kg per month Potential to increase to 2,000 kg per month Working on securing additional sources of both feed types Page 10 Geomega & Innord (GMA.V)

11 PRODUCTION FROM RECYCLING & BLUE SKY Commercial production plans To be located in Quebec, Canada Initial throughput capacity of 500 tonnes per year Potential to produce over 150 tpy of Nd, Pr, Tb & Dy Growth potential Once ISR is derisked through magnetic feeds & cash flows: Expand toward other industrial feeds Mining feeds Montviel feed Category Million Tonnes TREO Grade (%) Pr 2 O 3 Nd 2 O 3 Nb 2 O 5 Grade (ppm) Grade (ppm) Grade (ppm) Indicated ,452 1,715 Inferred ,433 1,315 Page 11 Geomega & Innord (GMA.V)

12 REE IN THE INDUSTRIAL CYCLE different feeds Page 12 Geomega & Innord (GMA.V)

13 INVESTING IN THE CRITICAL METALS FOR FUTURE TECHNOLOGIES? Innovative Technologies Alternative sources Recycling Derisking through production & cash flow Mining should not be the only answer! Page 13 Geomega & Innord (GMA.V)

14 MANAGEMENT Kiril Mugerman President & CEO Over 8 years in the REE sector Previously mining analyst with IA Securities in industrial minerals and exploration geologist with Gold Fields Ltd. President & CEO of Kintavar Exploration Holds a B.Sc. With Honors from McGill University in Earth & Planetary Sciences Dr. Pouya Hajiani, Ph.D. Chief Technology Officer Over 5 years of research in lanthanides extraction and purification Inventor of the FFE and ISR separation of REE and hydrometallurgical extraction method for REE and Nb for Montviel ore Previously project manager and process engineer for petrochemical companies under RSI Mathieu Bourdeau, CPA, CA Chief Financial Officer 6 years at Deloitte as Director of Audit and Consulting Services Previously financial controller for Explorance Inc. Alain Cayer, P. Geo., M.Sc. VP Exploration Responsible for delineating the large carbonatite deposit at Montviel VP Exploration of Kintavar Exploration Discovered the Eleonore gold deposit and the Mitchi Copper project Page 14 Geomega & Innord (GMA.V)

15 BOARD OF DIRECTORS Gilles Gingras, CPA, CA Retired and former Partner in Audit and Advisory Services at Deloitte LLP (1987 to 2013) Member of Deloitte LLP Canadian Board of Directors and of its finance, risk management and governance committees (2002 to 2010) Kosta Kostic Partner and member of McMillan LLP National Capital Markets and M&A group Practice focused on corporate finance, securities and M&A in the mining, renewable energy and information technology Jean Demers, P. Geo President of Geodem Inc. consulting in corporate financing and evaluation Assistant syndic and trainer for the Ordre des Geologues du Quebec and previously a director Involved in corporate governance for 20+ year & receipient of the Quebec Interprofessional Council s Merit Award Mario Spino Model validations for National Bank of Canada Previously principal advisor with KPMG and financial market risk management and derivatives evaluation Holds a M.Sc. In financial engineering from HEC Page 15 Geomega & Innord (GMA.V)

16 SHARE STRUCTURE SHARE STRUCTURE As of May 31, 2018 Issued & Outstanding 90,072,634 Stock Options 4,530,000 Warrants 11,019,416 Fully Diluted 105,622, % 47.6% 11.1% 3.6% Management & Insiders Private large positions Quebec Inst. Funds Retail Page 16 Geomega & Innord (GMA.V)

17 RARE EARTHS RECYCLING FOR THE PERMANENT MAGNET INDUSTRY Kiril Mugerman President & CEO #5653 Dr. Pouya Hajiani CTO #5656 TSX.V: GMA