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 March 2019 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 THE 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 Eu Gd Tb Dy Ho Er Tm Yb Lutetium 71 Lu Yttrium 39 Y Nd Pr Dy Tb = 30% of global demand = 80% of market value Key demand is the permanent magnet the driver of the renewable energy revolution & transportation electrification >85% produced in China Strong demand growth (Wind Power & EV Industry) Expected supply shortfall & increase in Magnet REE prices 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 Result: REE consumer is >85% in China & Japan Page 5 Geomega & Innord (GMA.V)

6 HOW TO ENTER THE REE MARKET? Focus on high price & high demand REE Nd, Pr, Dy, Tb HHREE (46, 57, 206, 455 US$/kg oxide respectively SMM 03/18/2019) Target European & North American markets < 5,000 tpy of HHREE Mining requires economy of scale = too much material for the market Mining requires large CAPEX = difficult to finance Focus on small volume & high grade feed 500 1, % REE = up to 400 tpy of HHREE Need clean technology to compete with SX = ISR Need high margin operation = NdFeB Magnet Recycling Page 6 Geomega & Innord (GMA.V)

7 INNORD S SEPARATION OF REE ISR TECHNOLOGY Clean technology for REE separation Organic solvent free process Sustainable & competitive alternative to SX Page 7 Geomega & Innord (GMA.V)

8 ISR SCALE UP PROGRESS DRAMATIC DECREASES IN COST ($/L Capacity) COST ($/L Capacity) log. scale $1,000,000 $100,000 $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 30 to 40% REO (Nd, Pr, Tb, Dy) Two main sources available: 1. Primary Magnet & alloy manufacturers residues 2. End of Life (EOL) Bulk magnets Page 9 Geomega & Innord (GMA.V)

10 FEED MATERIAL LOI with RockLink 100 to 200 tpy German based specialist in production waste and EOL recycling LOI with US based magnet manufacturer 12 to 24 tpy Collaboration with Comet Traitement & U. Liege in a Recycling Pilot study by major EV manufacturer Working on securing additional sources of both feed types Page 10 Geomega & Innord (GMA.V)

11 IS THERE MORE FEED? 2018 NdFeB magnet demand 160,000 tonnes ($11B US) 15 30% waste in production = 24,000 to 48,000 tpy Wind Power 3Mw = up to 2 tonnes NdFeB Annual growth avg. 50,000 Mw = up to 33,000 tpy NdFeB In 2017 decommissioned 650 Mw = up to 400 t NdFeB Decomissioning growth approx. 25% per year Electric Vehicles Avg. 3 kg NdFeB per EV 2018 sales 2M EV = 6,000 tonnes NdFeB Avg. lifespan 8 10 years MORE GROWTH = MORE MAGNET WASTE IN THE FUTURE Page 11 Geomega & Innord (GMA.V)

12 SALES AGREEMENTS Ginger International Trade & Investment Pte Ltd ( GITI ) Appointed official sales representative for Europe & Asia Singapore based, specializes in rare earths and minor metals Extensive network with REE manufacturers, traders and end users Working on securing offtakes in Europe & North America Page 12 Geomega & Innord (GMA.V)

13 PRODUCTION FROM RECYCLING & MINING 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 HHREE more than $10M in value at current pricing 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 13 Geomega & Innord (GMA.V)

14 REE IN THE INDUSTRIAL CYCLE different feeds Page 14 Geomega & Innord (GMA.V)

15 INVESTING IN THE CRITICAL METALS FOR FUTURE TECHNOLOGIES? Innovative Technologies Alternative sources Recycling Derisking through production & cash flow Mining is not the only answer! Page 15 Geomega & Innord (GMA.V)

16 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 16 Geomega & Innord (GMA.V)

17 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 17 Geomega & Innord (GMA.V)

18 WHY INVEST IN GMA? Direct exposure to near term REE production in North America Main R&D years are now behind Recycling is a growing market Potential near term cash flow Focusing on a high margin feed Clean & sustainable technology Page 18 Geomega & Innord (GMA.V)

19 UPCOMING MILESTONES Validation results from 20L testing unit Additional supply agreements Offtake agreements Scale up to next stage to allow for cash flow High purity testing (99.9%+) Page 19 Geomega & Innord (GMA.V)

20 SHARE STRUCTURE SHARE STRUCTURE As of March 1, 2019 Issued & Outstanding 90,072,634 Stock Options 5,855,000 Warrants 6,928,778 Fully Diluted 102,856, % 47.6% 11.1% 3.6% Management & Insiders Quebec Inst. Funds Private large positions Retail Page 20 Geomega & Innord (GMA.V)

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