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Nov 17, 2022 •678 likes •889 views

The replacement of fossil fuels by electrification is the greatest energy transition in history But its not just EVs $400bn Its also offshore wind turbines, all forms of transport, domestic appliances, military EV boom underway

  1. The replacement of fossil fuels by electrification is the greatest energy transition in history But it’s not just EVs $400bn It‘s also offshore wind turbines, all forms of transport, domestic appliances, military EV boom underway equipment and a growing universe of clean energy applications. Source: Reuters BNEF

  2. Co Li Ni Mn Which metal is going to be the Sn V biggest beneficiary? CLUE: It’s not one of the battery metals

  3. Neodymium is the critical Energy Transition metal Powerful NdPr Permanent Magnets are the key to modern electric motors Electric motor Controller Battery Charger Source: Dr. Bruno Lequesne, E-Motors Consulting, LLC

  4. EVs will drive a 350% increase in demand for neodymium oxide by 2025 “Demand for neodymium oxide will substantially exceed global annual production leading to shortages of these critical magnet metals.” Ryan Castilloux Adamas Intelligence Q2 2019 Source: Adamas Intelligence Q2 2019

  5. Offshore Wind set to overwhelm demand from EVs growing at 1500% over the next 20 years An EV uses 2 kilograms of Permanent Magnets A 5MW Offshore Wind turbine uses 3 tonnes China and EU plan to install 350GW equivalent to 60,000 turbines $1trillion Offshore Wind boom Offshore wind is set to become the largest source of electricity in the European Union by 2040 Source: IEA Offshore Wind Outlook October 2019

  6. Chinese companies control 87% of the world’s magnet metal production Russia 1% China 87% India Vietnam 1% Longonjo ?% <1% Thailand 1% Brazil Australia 7% Malaysia 1% <1% (ASX:LYC) Lynas Corporation’s Mt Weld is the world’s only independent major Rare Earth mine Source: ASX Lynas Corporation, Roskills

  7. North Angola Hydro Power Interconnection The world class Longonjo project is located adjacent to the US$1.8 billion Benguela rail line linking it to the Port of Lobito. Lobito RAIL LINE Atlantic Port International Airport Huambo LONGONJO PROJECT Gove Hydro Dam Source: Port of Lobito E P

  8. With a thick blanket of NdPr mineralisation extending over 1.5 kilometres Longonjo is one of the largest and highest-grade Rare Earth deposits in the world 523400 523600 523800 524000 524200 524400 524600 524800 18m at 1.04% NdPr 22m at 1.02% NdPr (4.88% REO) (4.68% REO) 4m at 0.62% NdPr 16m at 0.65% NdPr (2.93% REO) (3.05% REO) 12m at 0.55% NdPr 1580m 16m at 1.06% NdPr (2.71% REO) (5.36% REO) 6m at 0.60% NdPr 14m at 0.57% NdPr (2.98% REO) 10m at 0.93% NdPr (2.81% REO) (4.78% REO) 1540m Weathered Zone 30m 37m 40m 22m at 0.87% NdPr 28m at 0.85% NdPr (4.86% REO) (4.08% REO) 32m 35m 37m 45m 51m 12m at 0.97% NdPr 40m at 0.43% NdPr (6.38% REO) 6m at 0.50% NdPr (2.14% REO) 53m 24m at 0.69% NdPr (2.34% REO) 45m (3.05% REO) 1500m 50m 50m 50m 60m JORC Mineral Resource estimate 60m Fresh Rock Primary Zone 226 million tonnes 1.47% REO incl. 0.33% NdPr 22m at 0.72% NdPr containing 3,320,000 tonnes REO incl. 735,000 tonnes NdPr (4.07% REO) 100m Source ASX announcement: “First drill results extend NdPr mineralisation at Longonjo” of 31 October 2018 and ”Mineral Resource estimate” 19 February 2019

  9. “The fresh rock mineralisation underlying the weathered zone has reported some very good grades. Preliminary met testwork suggests the potential is real and adds a whole new dimension to the project.” COO Dave Hammond

  10. The recently commissioned $1.8 billion Benguela rail line links the project to the Port of Lobito

  11. The Port of Lobito has recently been refurbished and has excess capacity for the Longonjo concentrates

  12. Since 2008 China has invested over US$20 billion into Angola “The rail, power and port infrastructure are some of the best I have seen.” Tim George CEO ex Anglo American

  13. Wood Group Study: Access to world class infrastructure means very low Capital and Operating costs Rail Loading Capital Cost of US$131 million including 15% contingency Open Pit Flotation Plant Operating costs US$1,323 per tonne of concentrate Mining 2 mtpa of near surface weathered material and producing 56,000 tpa of NdPr rich concentrate for export Source: ASX Announcement Preliminary Feasibility Study 14 November 2019

  14. No need for capital Ultra low capex and World’s #2 Rare Earth intensive chemical fast track to miner processing production The access to major rail, port and The mine and flotation plant can be When in production Longonjo will power infrastructure means that constructed for US$131 million and become one of the world’s largest the mine can export a concentrate put into production in less than 18 producers exporting around 4,600 rather than having to invest in the months. tonnes of NdPr in concentrate, complex and highly capital- second only to Lynas’s Mt Weld intensive chemical processing which produces an estimated 7,100 required to produce an oxide. tonnes in concentrate annually. Source: ASX Announcement Preliminary Feasibility Study 14 November 2019

  15. Value of investment set to grow as Rare Earth prices rise with increased demand from EVs and Wind turbines The project economics have been evaluated over the first 9 years of operations based on an upfront capital cost of US$131 million and using Roskill’s NdPr US$/tonne price forecasts Source: ASX Announcement Preliminary Feasibility Study 14 November 2019

  16. Strong Board and Management team Tight Shareholder ownership Management team has extensive African experience and ASX:PM8/PM8-AU a strong project delivery track record Market Cap US$19 million 153 million shares on issue • Tim George CEO ex Anglo American 164 million fully diluted • Dave Hammond COO ex Peak Resources 95 shareholders own 75% Major Shareholders Board has strong track record in mine financing and Fidelity UK 9.9% delivering exceptional returns to shareholders Selection Capital 5.7% Richard Lockwood 3.4% • Paul Atherley Chairman previously Berkeley Energia Ltd Ashanti Capital 2.3% • Mark Hohnen NED currently Bacanora Lithium plc and Salt Lake BPM Capital 2.3% Potash previously Kalahari Minerals, Extract Resources Mark Hohnen 2.2% • Neil McLaghlan NED previously Kalahari Minerals and Extract Arredo 1.6% Resources.

  17. Designed to the highest ESG standards The investment has been designed to meet the Equator Principles and Scope 1, 2 and 3 emissions under the Green House Gas protocol. Access to low carbon power from the Luaca hydro-electric dam and local PV and storage facilities will enable a very low carbon footprint. Closed circuit zero discharge for process water and tailings with full end of life rehabilitation. Consultations underway for a positive impact on the local community by providing training for over 260 direct jobs and preparing local businesses to become service providers. A particular focus is on the training of young women for technical and engineering roles.

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