DevelopingAustralia’sLargestOnshoreManganeseResourceProducingHighPurityManganeseforLi-IonBatteries.
MONTEZUMAMININGCOMPANYLTDMunichconference- October2017
LARGEMANGANESERESOURCE HIGHPURITYMANGANESEPRODUCTSINNOVATIVEPROCESSING
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ThispresentationcontainsonlyabriefoverviewofMontezumaMiningCompanyLtdanditsassociatedentities(“Montezuma")andtheirrespectiveactivitiesandoperations.Thecontentsofthispresentation,includingmattersrelatingtothegeologyofMontezuma’sprojects,mayrelyonvariousassumptionsandsubjectiveinterpretationswhichitisnotpossibletodetailinthispresentationandwhichhavenotbeensubjecttoanyindependentverification.
Thispresentationcontainsanumberofforward-lookingstatements.Knownandunknownrisksanduncertainties,andfactorsoutsideofMontezuma’scontrol,maycausetheactualresults,performanceandachievementsofMontezumatodiffermateriallyfromthoseexpressedorimpliedinthispresentation.
Tothemaximumextentpermittedbylaw,Montezumadoesnotwarranttheaccuracy,currencyorcompletenessoftheinformationinthispresentation,northefutureperformanceofMontezuma,andwillnotberesponsibleforanylossordamagearisingfromtheuseoftheinformation.
Theinformationcontainedinthispresentationisnotasubstitutefordetailedinvestigationoranalysisofanyparticularissue.CurrentandpotentialinvestorsandshareholdersshouldseekindependentadvicebeforemakinganyinvestmentdecisioninregardtoMontezumaoritsactivities.
Disclaimer
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TightCapitalStructureStrongBalanceSheet
CORPORATEOVERVIEW
FinancialInformationASXTicker MZM
SharesonIssue 83.5M
SharePrice $0.285
MarketCapitalisation $23.8M
Cash&Investments(30Sept17) ~12M
Debt Nil
EnterpriseValue ~$12.8M
Top20Shareholders ~67%
Board andManagementSeamusCornelius Chairman
JustinBrown Executive Director
JohnRibbons Non ExecutiveDirector
DaveO’Neill ExplorationManager
SharePricePerformance
MajorShareholdersTop20Shareholders 67%
BoardandManagement 8.2%
JPMorganNomineesAustralia 11.4%
Duketon MiningLtd 6.5%
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1Source:UBS Global Research May 2017
StrongLi-IonmarketgrowthwilldrivedemandforTechMetals1,2
2Avicenne Energy Analysis 2014 et al as indicated. Avicenneestimates include China Auto Upside case
§ Over15Melectricvehiclesforecastby2025.§ NonEVLi-Ionbatterydemandtoalsogrowstronglyincluding;
§ GridStorage§ CellularPhones§ Powertools,EBikes,medicalapplicationsetc
§ ChinapushingforZeroEmissionVehicle(ZEV)program:8%EVby2018,12%by2020.§ ForecastCAGRof6.1%to2021.§ Alotmorehighpuritymanganeseisneededforthistohappen.
GrowthinBatterySales(GWh)2
TECHMETALSUPERCYCLE
GrowthinBatteryEV’s
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Manganeseisabigpartofabatterypoweredfuturen 3MhasitsownpatentedNMC,basedonworkdoneat
DalhousieUniversity.
n LGChemmakes NMC batteriesusedinthe ChevyVoltandNissanLeaf.
n GeneralElectricusesthe Li-MnO2 systemasitoffersthebestbalanceofsafetyandperformance.
n BMWi3alsouseNMCbatteries.
n Teslasigned5-yearexclusivepartnershipwithDr.JeffDahn,aprominentNMCbatteryresearcher.
“M” is for Manganese
TECHMETALSUPERCYCLE
https://media.gm.com/content/dam/Media/microsites/product/Volt_2016/doc/VOLT_BATTERY.pdfhttp://batteryuniversity.com/learn/article/electric_vehicle_evhttp://fortune.com/2015/06/17/meet-teslas-new-weapon-a-battery-scientist/
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High purity manganese makes up;
§ 10% of the global manganese market by volume but;
§ 40% of the global market by value.
MANGANESEMARKET – HIGHPURITYISHIGHVALUE
Apremium product
ManganeseOre17,000,000 tpa
HighPurityManganese1,800,000 tpa
ManganeseOre$5,491,000,000pa
HighPurityManganese$3,600,000,000pa
1UBS Global Research May 2017Assumes EMM price of USD$2,000/t Ref: https://www.metalbulletin.com/My-price-book.html?price=34473Assumes manganese price of USD$3.23/dmtu Ref:https://www.south32.net/docs/default-source/all-financial-results/reports-and-presentations/mamatwan-site-tour-2016.pdf
At100%electriccarpenetration,marketforecasttogrowby240%1,equivalentto+$5B
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§ Australia’slargestonshoremanganesedeposit.
§ >180Mtofmanganeseore1.
§ Excellentlocalinfrastructure.
§ Movingtowardsdevelopment.
§ 100%ownedbyMontezuma.
§ Lowriskminingjurisdiction.
BUTCHERBIRD MANGANESE
DEPOSIT
1Reference: Montezuma Mining Company Ltd ASX release dated 12 October 2017
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§ InferredResourceEstimatescompletedforeightdeposits.§ Significantupsidepotentialtoincreasetheresourcewithfurtherdrilling.§ Scaleofdevelopmentnotresourceconstrained.
Reference: Montezuma Mining Company Ltd ASX release dated 12 October 2017
WorldClassManganeseResource
BUTCHERBIRDMANGANESEDEPOSIT
Prospect Tonnes (Mt) Mn (%) SiO2 (%) Fe (%) P2O5 (%) Al2O3 (%)
Yanneri RidgeInferred 48.0 10.7 43.0 11.1 0.262 10.7
Indicated 22.5 12.0 43.8 11.6 0.297 10.6Additional DepositsInferred 110.3 10.6 44.4 11.9 0.3 11.0Total 180.8 10.8 43.9 11.7 0.3 10.9
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Note: All intersections are approximately true width
SimpleGeology/Favourable Infrastructure
Manganese orebody• Starts at surface• Low strip ratio• Low cost mining
Orestartsatsurface;
§ lowstripratio
§ lowminingcost
Gaspipeline;
§ lowenergycost
Straddlesbitumenhighway;
§ lowinfrastructurecost
PortHeadland550kmnorth;
§ logisticssolutioninplace
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BreakthroughTechnology§ CSIROdesigningflowsheettargeting highpurity(>99.7%)batterygrademanganese.
§ PotentialproductsincludeElectrolyticManganeseDioxide(“EMD”),Metal(“EMM”),and/ormanganesesulphate.
§ Highpuritymanganeseisahighvalueproductwhichsellsfor>USD$2,000/dmt*.
LOWCOSTPLANTFEEDFROM100%OWNEDMANGANESERESOURCES
DEVELOPINGINNOVATIVE,NOVELPROCESSTOPURIFYORETO>99.7%
HIGHPURITYPRODUCTSFORLi-IonBATTERIES,HIGHVALUE:>US$2000/t*
*https://www.metalbulletin.com/My-price-book.html?price=34473
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Keydifferentiators
§ Benign leach conditions and rapid leach kinetics in a simple, single stage leach process:
§ >95% of manganese leached in 30 minutes.
§ >90% Mn purity after single leach stage.
§ Ambient temperature and atmospheric pressure.
§ Exothermic reaction produces energy.
§ No sulphuric acid.
§ Excellent leach selectivity.
§ Simple, industry proven purification pathway.
BUTCHERBIRDMANGANESEDEPOSIT
§ Complex leach conditions, multi stage, expensive process:
§ Requires high grade manganese ore.
§ Reduction Roasting to 800-1000ºC.
§ Sulphuric acid leach.
§ Purification.
§ Production of final product using toxic selenium.
§ High cost energy input ~7000 Kwh for EMM
ButcherbirdProject CurrentProducers(China/SouthAfrica)
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InvestmentCaseSummaryn Worldclass,verylargemanganesedeposit.
n Technologybreakthroughonprocessing.
n Simplegeologyandflowsheet.
n Lowproductioncostsanticipated.
n Strongdemandgrowthfrombatteryrevolution.
n Commercialstudiesunderway.
n Strongbalancesheet,tightcapitalstructure.
n TheonlyASXlistedexposuretothissector.
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Note:TheinformationinthispresentationthatrelatestoExplorationResults,andMineralResourcesisbasedoninformationcompiledbyMr JustinBrownwhoisafull-timeemployeeoftheCompanyandisamemberoftheAustralasianInstituteofMiningandMetallurgy.
JustinBrownhassufficientexperiencewhichisrelevanttothestyleofmineralisation andtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012Editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.JustinBrownconsentstotheinclusioninthereportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.
Pleasenotewithregardtoexplorationtargets,thepotentialquantityandgradeisconceptualinnature,thattherehasbeeninsufficientexplorationtodefineaMineralResourceandthatitisuncertainiffurtherexplorationwillresultinthedeterminationofaMineralResource.
TheinformationinthisreportthatrelatestoMineralResourcesisbasedoninformationcompiledbyMrMarkGlassockwhoisamemberoftheAustralasianInstituteofMiningandMetallurgy.AtthetimethattheMineralResourceswerecompiled,MrGlassockwasa consultanttoMontezumaMiningCompanyLtd.MrGlassockisageologistandhassufficientexperiencewhichisrelevanttothestyleofmineralisation andtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012editionofthe‘AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.MrGlassockconsentstotheinclusionofthisinformationintheformandcontextinwhichitappearsinthisreport
COMPETENTPERSON’SSTATEMENTF
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