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E3 Metals Corp - A Petro-Lithium Company
ETMC
Alberta Petro-Lithium
This presentation contains forward-looking statements regarding E3 Metals Corp (“E3 Metals”)
and the potential of its current and future projects. Generally, forward-looking statements can
be identified by the use of forward-looking language such as “plans”, “expects”, “budgets”,
“schedules”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or variations of such
words and phrases, and statements that certain actions, events or results “may”, “could”,
“would”, “might” ,“will be taken”, “will occur” or “will be achieved”. Forward-looking statements
are based on the opinions and estimates of E3 Metals as of the date such statements are made.
Forward-looking statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, levels of activity, performance or achievements of E3
Metals to be materially different from those expressed or implied by such forward-looking
statements, including, but not limited to, risks related to: E3 Metals’ ability to effectively
implement its planned exploration programs; unexpected events and delays in the course of E3
Metals’ exploration and drilling programs; changes in project parameters as plans continue to be
refined; the ability of E3 Metals to raise the capital necessary to conduct its planned exploration
programs and to continue exploration on its properties; the failure to discover any significant
amounts of lithium or other minerals on any of E3 Metals’ properties; the fact that E3 Metals’
properties are in the exploration stage and exploration and development of mineral properties
involves a high degree of risk and few properties which are explored are ultimately developed
into producing mineral properties; the fact that the mineral industry is highly competitive and E3
Metals will be competing against competitors that may be larger and better capitalized, have
access to more efficient technology, and have access to reserves of minerals that are cheaper to
extract and process; the fluctuations in the price of minerals and the future prices of minerals;
the fact that if the price of minerals deceases significantly, any minerals discovered on any of E3
Metals’ properties may become uneconomical to extract; the continued demand for minerals
and lithium; that fact that resource figures for minerals are estimates only and no assurances
can be given than any estimated levels of minerals will actually be produced; governmental
regulation of mining activities and oil and gas in Alberta and elsewhere, including regulations
relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and
environmental protection; environmental regulation, which mandate, among other things, the
maintenance of air and water quality standards and land reclamation, limitations on the general,
transportation, storage and disposal of solid and hazardous waste; environmental hazards
which may exist on the properties which are unknown to E3 Metals at present and which have
been caused by previous or existing owners or operators of the properties; reclamation costs
which are uncertain; the fact that commercial quantities of minerals may not be discovered on
current properties or other future properties and even if commercial quantities of minerals are
discovered, that such properties can be brought to a stage where such mineral resources can
profitably be produced therefrom; the failure of plant or equipment processes to operate as
anticipated; the inability to obtain the necessary approvals for the further exploration and
development of all or any of E3 Metals’ properties; risks inherent in the mineral exploration and
development business; the uncertainty of the requirements demanded by environmental
agencies; E3 Metals’ ability to hire and retain qualified employees and consultants necessary for
the exploration and development of any of E3 Metals’ properties and for the operation of E3
Metals’ business; and other risks related to mining activities that are beyond E3 Metals’ control.
Although E3 Metals has attempted to identify important factors that could cause actual results
to differ materially from those contained in the forward-looking statements in this presentation,
there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements contained in this
presentation. E3 Metals does not undertake to update any forward-looking statements except in
accordance with applicable securities laws.
Chris Doornbos (P.Geo), President, CEO and a Director of E3 Metals Corp., is a Qualified Person
as defined by National Instrument 43-101 and has read and approved the technical information
contained in this presentation.
Forward Looking StatementsDisclaimer For Forward-Looking Information
E3 Metals Corp - A Petro-Lithium Company
ETMC
About Petro-LithiumE3 Metals is a Petro-Lithium development company in Alberta with a large prospective land base
Petro-Lithium: A New Potential Source of Lithium
Ø Petro-Lithium refers to lithium that is dissolved in brines below and adjacent to oil and gas
reservoirs, providing significant advantages:
Ø Large volumes of brines available at surface
Ø Low finding cost from sampling of existing wells
Ø Possibility to leverage infrastructure existing for exploration, as well as any
development or eventual production
E3 Metals’ Value Creation Plan
Ø Already defined 2.83 million tonnes (Mt) lithium carbonate equivalent (LCE) Inferred
Resources1
Ø Testing and scale-up of extraction technology
Ø Optimization of resource, plan to upgrade to Measure and Indicated
Ø Future Steps: work towards demonstration of project feasibility aiming for 2021
production
Alberta Petro-Lithium
E3 Metals Corp - A Petro-Lithium Company
ETMC
Greenbushes, Australia
Salar de Atacama, Chile
Salars (Brines - Evaporative)
Hard Rock Mining (Spodumene)
UNCONVENTIONAL
Leduc Reservoir Alberta, Canada
Sources of LithiumCONVENTIONAL
Petro-Lithium (Brines – Direct Extraction)
• Conventional evaporation process for brine concentration
• Slow process with large environmental footprint
• Existing production & disposal infrastructure from legacy oil and gas
• Large available brine volumes
• Direct processing means faster process
• Environmentally responsible and energy efficient
• Energy and capital intensive • Large environmental footprint
Water
OilGas
Emulsion Fluid(Oil/Gas/Water)
E3’s Lithium Extraction Model
Li2CO3 or Li(OH)
LEDUC RESERVOIR(historic oil and gas)
Injection Wastewater
E3 Metals Corp - A Petro-Lithium Company
ETMC
Alberta Petro-Lithium Advantages
Well defined Leduc Reservoir with proven deliverability, lithium content and geothermal potential
Resource development primarily through brine sampling via oil & gas partnerships
Leveraging existing wells and pipelines to lower capital costs
Brownfield development with closed loop production system and significant geothermal potential
Friendly jurisdiction with mature regulatory environment, potential for grant funding
Major Advantages for E3 Metals
E3 Metals Corp - A Petro-Lithium Company
ETMC
Turning our Vision into RealityE3’s First Year Accomplishments
Early Mover
Advantage
• 1.4 million acres of
prospective MIM
permits
• Largest contiguous
land holder in
South-Central
Alberta
Oil and Gas
Partnerships
• 14 operational
collaborative
relationships
• Over 70 wells
sampled
• Access to oil and
gas subsurface
database
Low Cost
Subsurface
Delineation
• Leduc reservoir
exploration and
sampling with no
drilling
• Contiguous
resource with
proven deliverability
Defined
Resource
• 2.83 Mt LCE1 (NI
43-101) completed
at low cost
• <20% of land base
explored,
significant growth
potential
• Minimal work
expected to M+I
Extraction Testing
• Developing
concentration
technology with the
U of A
• Testing 3rd party
extraction
technology with E3
brine
E3 Metals Corp - A Petro-Lithium Company
ETMC
E3 Metal Petro-Lithium Focus: The Leduc ReservoirLithium in the Leduc Reservoir First Mover Advantage – Secured 1.4 million acres of lithium permits in the Leduc Reef Trend
New vertical well potentially capable of producing 10,000 m3/day.
Pressure Support: Active Water Drive
Clearwater Project Schematic• High density of producing and
suspended wells located within
project areas
• 1000’s of km of existing pipeline
network
• Easy access and available
infrastructure (highways, lease roads,
power, etc.)
• Prolific world class reservoir defined by oil and gas development
• Large producible brine volumes at high flow rates
• Consistent lithium concentrations
• Geothermal electric power potential (70oC – 100oC)
E3 Metals Corp - A Petro-Lithium Company
ETMC
E3 Metals’ 2.83 Mt LCE – One of the world’s largest
• Over 70 wells sampled • Low finding cost ($0.18/tonne LCE)
from existing O&G partnerships• 2 key resource areas defined <20% of
land base• E3 further expanding its resource
Clearwater: 1.9 Mt LCE1
• Pressure: 17.6 MPa
• Average Porosity: 6%
Rocky: 0.93 Mt LCE1
• Pressure: 18 MPa
• Average Porosity: 6.5%
1: The October 2017 Technical 43-101 reports for the Clearwater and Rocky inferred mineral
resources can be found on E3 Metals website (www.e3metalscorp.com) or SEDAR
(www.sedar.com)
A Large and
Expanding
Resource
Rocky
Clearwater
E3 Metals Corp - A Petro-Lithium Company
ETMC
Planned Development Timeline
• Ongoing sampling to grow
E3’s 2.83Mt resource and
continued definition of a
potentially expanding
resource base
• Achieving efficient concentration
is the main focus; perfecting the
chemical process
• The remaining components of
the extraction process (polish
and production) have been
proven on a commercial scale
• E3’s planned lab-scale and field
demonstration of extraction
technology can lead to a
prefeasibility study
• E3 aims to develop a
commercial production plant
• Initial target is to produce
10,000 tonnes/year LCE
• Potential to scale up
production across the
reservoir
Resource Extraction Technology Production
Completed 2018-2019 2020-2021
E3’s Value Creation Plan
E3 Metals Corp - A Petro-Lithium Company
ETMC
Why Concentration is Key
• Larger volumes of brine to process with lower grades (vs. salars)
• Efficient concentration ➢ lower costs and higher production rates: low total operating costs
• Commercially proven technologies exist for purification and production of battery-grade lithium hydroxide or
lithium carbonate
E3 Metals’ Objective
• Concentration step that achieves: 10x concentration with >90% lithium recovery & <10% impurities
• Continued development of E3's concentration technology in partnership with U of A
• Also reviewing other third party concentration technologies under
development
The Key to Commercial Viability: Concentration
E3’s Lithium
Concentration
Technology
Proven
Purification
& Polishing
Technology
Production of
High Grade
Lithium Products
Brine Production
Extraction Technology will Unlock the Value of our Vast Resource
E3’s Current Focus
E3 Metals Corp - A Petro-Lithium Company
ETMC
Extraction Technology Demonstration: Timeline
• Developing and perfecting
concentration technology
• Continue to evaluate
technology options
• Partnerships with University of
Alberta and with national
laboratories
Optimized chemical concentration
• Operate demonstration plant
• Design of commercial
production facility
Demonstration Facility
• Integrate concentration
development with proven
commercial technology
• Development & field testing of
extraction prototype
• Prefeasibility study
• Optimize plans for scaled up
(1000 L/h) demonstration
plant with engineering
development & oil/gas partner
Lab scale prototype & prefeasibility study
MID-2018 to EARLY 2019EARLY TO MID-2018 MID to LATE 2019
Relatively
Short
Timeframe to
Feasibility
E3 Metals Corp - A Petro-Lithium Company
ETMC
The Goal: Lithium Production • Low cost development leveraging existing infrastructure
• Scalable, high rate direct-brine extraction technology
• Multiple production feed streams using a central production facility (hub-and-spoke approach)
• Geothermal power co-generation to lower OPEX; grid power readily available
• 10,000 tonnes/year LCE, scalable to 50,000 tonnes/year LCE
E3 Metals'
Lithium Concentration
Technology
Purification&
Production
Concentrated
Lithium Brine
Petro Lithium
Brine Production
70 to 100ºC
Lithium Free
Brine Injection
High-Grade
Lithium Products for
Battery Production
Re-Purposing Energy Infrastructure
E3 Metals Corp - A Petro-Lithium Company
ETMC
Lithium Demand
• Continued demand from growing consumer tech sector
• Significant growth expected due to the shift in the transportation sector to the electric vehicle
• Largest growth expected in grid scale energy storage that bridges the gap between generation and electricity consumption
Source: Bloomberg, BMO Capital Markets
Growing Demand for Lithium
• Total lithium demand growth expected to be 14% annual growth to 2025 and 26% for the EV market.
Source: BMO Capital Markets 2018CAGR: Compound Annual Growth Rate
E3 Metals Corp - A Petro-Lithium Company
ETMC
Key Sector Valuation Metrics for Developers2:Average industry market value for developers: $271/tonne LCE ➤ E3 Metals: $2/tonne LCE
Investing in E3 Metals
E3 Metals: A Deep Value Play in the Lithium Sector
2: Based on comparable company’s publicly available data from March 2018. E3 Metals is not responsible the accuracy of this data.
*Adjusted market cap = Market cap adjusted to account for lithium asset ownership
Company Symbol Project type Resource Res. typeAdj. Mkt
cap.* Resource ProductionLCE Mt M+I/Inf. $M (CAD) $ LCE t $M LCE 10000 t
E3 Metals Corp. ETMC Brine - Unconv. 2.8 0.0/2.8 6 2
Standard Lithium Ltd. SLL Brine - Unconv. - - 109 -
LSC Lithium Corp. LSC Brine - Conv. 4.0 1.3/2.7 145 36
Millennial Lithium Corp. ML Brine - Conv. 3.0 2.1/0.9 154 51
Bearing Lithium Corp. BRZ Brine - Conv. 2.1 1.7/0.4 175 83
Neo Lithium Corp. NLC Brine - Conv. 2.1 0.7/1.4 189 90
Advantage Lithium AAL Brine - Conv. 0.5 0.0/0.5 259 519
Nemaska Lithium Inc. NMX Spodumene 1.3 1.1/0.2 500 385
Lithium Americas Corp. LSC Brine - Conv. 13.2 13.2/0.0 9,702 735
Average 271Producer
Orocobre Limited ORL Brine - Conv. 6.4 6.4/0.0 2,060 322 17,500
E3 Metals Corp - A Petro-Lithium Company
ETMC
Chris Doornbos (P.Geo) President, CEO, Director
Seasoned industry professional managing exploration and development companies in Canada and across the globe. Specializing in project advancement
Liz Lappin (P.Geo)
VP Project Development
Professional Geologist with over 14 years experience in Alberta’s Energy industry working for some of Canada’s largest oil and gas producers
Paul Reinhart Director
Early stage project financing and startup advisor Developing successful business from the early stages
Mike O’Hara (P.Eng) Director
Professional Engineer founding and developing growth oriented companies. Managing resource and technology businesses and capturing shareholder value
Peeyush Varshney LL.B Director
Industry executive and corporate advisor
Founding and funding mineral exploration companies in Vancouver
Simon Geoghegan MBA Manager Corp. Development Professional Biologist with over 18 years experience in corporate planning & development in the energy & resource sectors.
The Right Team
E3 Metals Corp - A Petro-Lithium Company
ETMC
E3 Metals Advisory BoardThe E3 Metals TeamThe E3 Metals Team
Jean CroteauAfter beginning his career in auditing at Deloitte Touche, Jean Croteau has honed his acumen in the
financial markets since 1986 as a portfolio manager and financial analyst in various positions held at
large Canadian financial institutions in Toronto and Montreal. Now semiretired, his focus is on
investing privately; mostly in the resource sector which remains his true passion. Jean also has an in-
depth knowledge of the global macroeconomic and geopolitical backdrops and their incidence on the
financial markets.
Kevin ReinhartKevin was part of the executive team for 20 years at Nexen, a publicly listed major upstream oil and gas
company with an enterprise value of over $20 billion. As CEO, he led the assessment and negotiation of
the sale of the company to CNOOC Ltd in 2013.
Wayne Monnery, PhDWayne is E3 Metals’ Chief Technical Advisor for extraction and process engineering. Wayne has a PhD
in Process Engineering specializing in fluid flow and has 30+ years’ experience in chemical process
engineering development and design. This includes advising on the scale-up from bench scale to pilot
and ultimately commercial scale process facilities with Xergy Processing Inc. and MEC Resource.
The Right Team
E3 Metals Corp - A Petro-Lithium Company
ETMC
Why invest in E3 Metals
1. E3 holds the world’s eighth largest lithium resource at 2.83Mt1,2, working to add low cost, value-added resource definition in 2018
2. Ability to leverage existing infrastructure reduces environmental footprint and reduces development cost and risk
3. Near-term focus on advancing concentration and extraction technologies should unlock resource value
4. Compelling valuation: undervalued relative to our resource size2
5. Stable and attractive jurisdiction for resource development
6. Significant geothermal power potential
7. The right management team, directors and advisors
E3 is a leader in Petro-Lithium Development Unlocking Canada’s Petro-Lithium Potential
E3 Metals Corp - A Petro-Lithium Company
ETMC
Chris Doornbos
President | CEO | Director
Simon Geoghegan
Manager Corporate Development
Corporate Information
• TSXV: ETMC
• Share Price: $0.40*
• Shares Outstanding: 17.0M
• Market Cap: $6.9M
Capital Structure*
TSXV: ETMC
FSE: OU7A
OTC: EEMMFUnlocking
Canada’s
Petro-Lithium
Potential
*Data as of March, 2018