Ingredient 25 SPP Investor Presentation Might 2024

Overview

Ingredient 25 (ASX:E25, OTCQX:ELMTF) is a manganese-focused firm with 100% possession of the biggest onshore manganese deposit in Australia, which is at present producing high-quality manganese focus. The corporate’s Butcherbird Mine in Western Australia is at present producing round 365,000 tons each year. The corporate is advancing in the direction of 1 million tons (Mt) each year by optimizing its engineering processes. Ingredient 25 (E25) has set the tempo by getting up and working rapidly.

Ingredient 25 has additionally moved rapidly to progress its ambitions to be a globally vital producer of moral high-purity manganese sulphate monohydrate (HPMSM) for provide to the quick rising EV battery uncooked materials provide chains. The corporate has signed a binding settlement with Stellantis NV (NYSE:STLA) to provide battery-grade HPMSM from E25’s proposed USA-based HPMSM processing facility. Stellantis has additional accomplished its first US$15-million fairness funding in E25 in July 2023 in the direction of the event of a battery-grade HPMSM facility within the USA.

Ingredient 25 has additionally entered an off-take cope with Common Motors (GM) to provide the automotive producer as much as 32,500 metric tons of manganese sulfate to help GMs annual manufacturing of greater than 1 million electrical automobiles in North America. Beneath this settlement, GM will present an US$85-million mortgage to E25 to partially fund the development of the brand new facility in Louisiana, USA, which can produce battery-grade manganese sulfate. Anticipated to be the primary of its type within the US, the ability will course of manganese focus from E25’s mining operations in Western Australia to supply HPMSM.

Manganese is Constructing Momentum

Gross sales of EVs have exceeded 10 million in 2022 with market analysts anticipating the momentum to proceed in 2023 and past. It’s clear that customers and automakers are embracing EVs worldwide, with gigafactories arising throughout the globe to help the EV transition. But, EVs require vital supplies to help the rising demand.

Manganese is crucial in manufacturing the nickel-manganese-cobalt cathodes EVs require and is the most affordable and most ample materials out there. Moreover, nickel and cobalt have vital provide constraints, whereas manganese doesn’t. The relative abundance and excessive worth in using manganese as a cathode materials has prompted automakers reminiscent of Tesla, Volkswagen and Stellantis to show to high-manganese cathodes to fulfill their provide chain necessities.

Manganese additionally has sturdy present demand for utilization in metal, aluminum merchandise and specialty alloys. There isn’t any substitute for the component in metal. Mining corporations specializing in this very important component are uniquely positioned to serve each established and rising industries.

The Future has At all times Been Electrical

Ingredient 25 is dedicated to delivering on its technique of manufacturing battery grade HPMSM for EV batteries to energy the worldwide transition away from fossil-fuel-powered mobility.

The development of EV batteries requires an unlimited quantity of cathode supplies. Put merely, nickel and cobalt provides merely can not meet projected demand for New Power Automobile (NEV) development.

By 2040 it’s estimated that 58 p.c of recent automobiles shall be EV or hybrid.

As demand continues to rise, EV battery makers globally are selecting to undertake manganese-rich cathode designs for safer, less expensive battery options and E25’s high-purity manganese technique is ideally positioned to feed these surging markets.

Superior flowsheet growth work undertaken in 2019 and 2020 has confirmed a easy, proprietary leach course of for E25 ores which, when mixed with offsets, will goal the world’s first zero-carbon manganese for EV cathode manufacture. Flowsheet optimization for inclusion in upcoming feasibility research is ongoing.

Sturdy ESG Credentials

Ingredient 25 understands the significance of a superb environmental, social and governance (ESG) score for serving the EV market, as this score straight displays on the businesses it provides. The corporate is working in the direction of producing zero-carbon, high-purity manganese by leveraging sustainable applied sciences at each step in its course of via its Zero Carbon Manganese marketing campaign. This marketing campaign consists of sustainable extraction, utilizing renewable vitality, low-carbon processing and carbon offsets. Ingredient 25 has partnered with Circulor to offer real-time insights into its ESG standing.

Ingredient 25’s Butcherbird Mine has a Joint Ore Reserves Committee (JORC) compliant useful resource estimate indicating over 260 megatonnes of manganese ore. This vital deposit is Australia’s largest onshore manganese deposit, with an estimated mine lifetime of 42 years. The mine doesn’t require blasting or dewatering, as an alternative leveraging a easy mining and processing wash plant.

Importantly, Ingredient 25’s board and administration group has a long time of expertise throughout a spread of key sectors together with mining, authorized experience, mineral challenge growth, company administration and operational excellence. The administration group’s observe file of success supplies the corporate with a fantastic platform to ship on its deliberate milestones as E25 positions itself as a number one manganese participant on the worldwide stage.

Firm Highlights

• 100-percent possession of Australia’s largest onshore manganese mine – the Butcherbird Manganese Deposit – comprising greater than 260 million tons (Mt) of manganese ore in JORC sources.
• Lengthy mine lifetime of 42 years utilizing solely 20 p.c of the worldwide useful resource, vital potential to broaden with additional drilling.
• At present producing high-quality manganese lump focus for the metal business.
• Multi-staged growth technique to extend focus manufacturing and transfer into downstream processing to supply high-purity manganese sulphate monohydrate (HPMSM) as electrical automobile (EV) gas for lithium-ion batteries.
• Enlargement plans to extend ore manufacturing to 1 Mt each year effectively superior.
• Off-take and funding settlement with Common Motors (GM) to provide the EV producer as much as 32,500 metric tons of HPMSM yearly to help GM’s annual manufacturing of greater than 1 million EVs in North America.
• GM to offer US$85 million in challenge finance for the HPMSM facility in Louisiana, USA.
• Offtake and funding settlement with world automaker Stellantis NV (NYSE/MTA/Euronext Paris:STLA) consists of lately accomplished US$15-million fairness funding to fund HPMSM brief and medium time period challenge execution prices.
• STLA is now Ingredient 25’s largest shareholder with a ten.2-percent shareholding.
• STLA has dedicated to offtake for 15 p.c of HPMSM manufacturing from the Louisiana facility.
• Ingredient 25 is led by a administration group with a long time of expertise in mineral challenge administration, company administration and worldwide regulation.

Positioned in Western Australia, the Butcherbird Manganese Venture is presently producing manganese focus for the metal business. The mine has already reached manufacturing and is now optimizing its course of to enhance output. E25 is working in the direction of producing high-quality HPMSM to be used in new vitality markets.

Venture Highlights:

• Australia’s Largest Onshore Manganese Deposit: The Butcherbird Venture has a JORC-compliant complete useful resource estimate of 263 megatonnes of ore at 10 p.c manganese. The deposit has an estimated mine lifetime of 42 years and the potential to extend drilling sooner or later.
• 4-stage Progress Technique: Ingredient 25 has established a four-stage technique as outlined beneath:
  • Stage 1 (delivered): 365 ktpa
  • Stage 2 (2023): 1 Mt each year by optimizing engineering processes
  • Stage 3: Produce sustainable high-purity manganese.
  • Stage 4: Excessive-purity manganese sulphate with zero carbon footprint
• Constructive Feasibility Examine: A feasibility research launchd in 2023 confirmed the technical and monetary feasibility of manufacturing HPMSM at a Louisiana location on the market to native and worldwide offtake companions. Apart from indicating a internet current worth of US$1.66 million, the feasibility research additionally confirmed an environmental impression that’s considerably decrease than incumbent producers.

• Specializing in a superb ESG Ranking: Reaching and sustaining a fantastic ESG score is important to serving the EV market. Ingredient 25 has partnered with Circulor to offer real-time monitoring and insights into its ESG score all through your complete operation.

Administration Group

John Ribbons – Chairperson

John Ribbons is an accountant who has labored inside the sources business for over fifteen years within the capability of firm accountant, group monetary controller or firm secretary. Ribbons has intensive data and expertise with ASX-listed manufacturing and exploration corporations. He has appreciable site-based expertise with working mines and has additionally been concerned with the itemizing of a number of exploration corporations on the ASX. Ribbons has expertise in capital elevating, ASX and TSX compliance and regulatory necessities.

Justin Brown – Managing Director

Justin Brown is a geologist with over 20 years of expertise in world mineral exploration and mining. He has been concerned within the full spectrum of mineral exploration via to mining in a spread of commodities. Brown has additionally held quite a few board positions, together with an govt function with Ingredient 25 Restricted since 2006. He has a powerful observe file of closing profitable business transactions and brings a well-rounded set of expertise to the administration of the Firm’s actions.

Sam Lancuba – Non-executive Director

Sam Lancuba is a chemical engineer with greater than 40 years’ expertise within the world fertilizer business. Lancuba has labored in analysis and growth, course of engineering, manufacturing and administration. Following 27 years at Incitec Pivot Restricted, an ASX prime 50 firm, He has been offering professional consulting companies for business shoppers in Australia, New Zealand, USA, South America, Europe, India and China.

Fanie van Jaarsveld – Non-executive Director

Fanie van Jaarsveld is an skilled firm director and has held quite a few senior administration and govt positions over a profession spanning greater than 40 years. With a demonstrated historical past of working within the mining and metals business, van Jaarsveld is the managing director for OM Manganese which operates the Bootu Creek manganese mine within the Northern Territory and is very expert in mining, mineral processing and operational administration. He has sturdy enterprise growth experience and shall be a key asset in reaching the corporate’s manufacturing targets on the present manganese operation in addition to serving to to information the planning and implementation of the corporate’s expanded manufacturing plans and the downstream manufacturing of HPMSM. van Jaarsveld has an ND in analytical chemistry from the Cape Peninsula College of Expertise – Cape City.

Sias Jordaan – VP Battery Minerals & Advertising Supervisor

Sias Jordaan has been concerned within the stainless-steel manufacturing and uncooked materials provide markets in addition to uncommon metals markets for over 25 years. Jordaan held numerous roles inside BHP Billiton in South Africa, The Netherlands and Western Australia within the stainless-steel, ferrochrome and nickel divisions. Consequently, he has gained intensive expertise within the procurement, advertising and logistics of assorted steel-making metals. Jordaan was additionally concerned within the administration group that commissioned the Ravensthorpe Nickel Plant. Extra lately he carried out research work for Arafura Sources Ltd (2011-2015), particularly the Nolans Uncommon Earths Venture positioned within the Northern Territory, together with the research into an appropriate offshore separation facility and the institution of a Letter of Intent with a Korean-based companion. Jordaan has an accounting diploma and is certified as a chartered accountant in South Africa. He additionally holds a diploma in worldwide logistics from the College of Navarra and is a licensed actual property and enterprise agent in Western Australia.

Neil Graham – VP Battery Minerals & Improvement Supervisor

Neil Graham is a chartered chemical engineer with greater than 30 years of worldwide expertise within the chemical and sources industries. His expertise in greenfield and brownfield challenge growth, driving operational change and delivering efficiency turnarounds has been gained in numerous managing director/basic supervisor roles, throughout a breadth of organizations and places. These roles have been European, Asian and Australian primarily based with multi-nationals, reminiscent of Huntsman and Orica, and West Australian sources companies.

Clint Moxham – Common Supervisor Operations

Clint Moxham has joined the group as basic supervisor operations. Moxham’s key tasks embrace statutory and operational oversight of the secure operation of the Butcherbird Manganese Mine, implementation and oversight of improved operational processes and continued enchancment in plant preventative upkeep focusing on improved run instances to extend manufacturing. He’s a vision-driven miner with a observe file of delivering greenfield and start-up operations. Moxham has a fame of secure operations with a career-long file of group administration and mining operations success.

Ian Huitson – Examine Supervisor

Ian Huitson is a mining govt with 33 years’ expertise in govt, operational and technical roles within the manganese, chromite, gold, silver and nickel industries in Australia, Africa and Asia. Huitson has intensive manganese expertise via roles as research supervisor at Shaw River Manganese (2012-2014), chief working officer at Auvex Sources (2009-2011), group mining engineer at Consolidated Minerals Ltd (2005-2007) and resident supervisor at Consolidated Minerals’ Woodie Woodie mine web site (1999-2005). Along with the above, Huitson has govt administration expertise together with roles as operations director and managing director at Monarch Gold Mining Firm (2007-2009). Previous to this, he had 15 years’ expertise as a mining engineer with WMC Sources, Dominion Mining/Plutonic Sources and the Walhalla Mining Firm. He has a level in mining engineering and is a fellow of the AusIMM. Huitson has accomplished a number of scoping and pre-feasibility research all through his profession.