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STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS April 2014

Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

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NovX21’s strategy is focused on vertical integration with refiners and partners who can supply large volumes of catalytic converters. NovX21 uses a new patented chlorination technology to quickly and ecologically recover precious metals from recycled materials. The technology transforms PGE-rich materials into a highly-concentrated metallic powder in just a few days, recycling over 97% of PGM content. The product is sent to a refiner to be separated into the three most important precious metals from the Platinum Group: platinum, palladium and rhodium.

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Page 1: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS

April 2014

Page 2: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

2 NovX21 – TSX.V: NOV

March 31st 2014

FORWARD LOOKING STATEMENT

Except for statements of historical fact relating to the Company, certain information contained in this presentation and in subsequent oral statements made by and on behalf of the Company constitutes "forward looking statements" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of metal prices, the estimation of mineral resources, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: general business, economic, competitive, political and social uncertainties; the actual results of current exploration and development activities; risks relating to title to properties; risks associated with obtaining necessary permits; risks associated with foreign operations, including government regulation and political stability risks; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of mineral grade ore recovery rates; accidents, labor disputes and other risks of the mining industry, including but not limited to environmental hazards, cave-ins, pit-wall failures, flooding, rock bursts and other acts of God or unfavorable operating conditions and losses, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction Activities. Although the Company has attempted to identify import ant factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking 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.

Page 3: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

3

WHERE WE ARE HEADING

NovX21 is in the commercial rollout for a first recycling plant extracting PGM from spent catalytic converters (CC)

– R&D on the technology is complete and NovX21 has been operating a

50-ton reactor for the last 2 years

– The economics of our planned 200-ton (200,000 (CC))⁽¹⁾ facility are

compelling :

C$22 M to $29 M in revenues per year depending on metal prices

Gross Margin of 33%

Low Opex

Low Energy cost

Quick Payback on Capex

⁽¹⁾ 3 grams average of PGM per kilogram of CC

NovX21 – TSX.V: NOV

Page 4: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

4

The size and

state of the

CC Market

The NA market amounts to 15 million spent (CC) per year

An estimated $2 billion market

There are 55 million used cars around the world per year

Less than 50% are currently recycled

NovX21 – TSX.V: NOV

Here is the conventional way to recycle (CC):

Few grams of PGMs per ton of ore are mixed with spent (CC) to increase yield

The complete supply chain and processing takes about 36 weeks

It is very capital intensive (billions of dollars in Capex)

It is very energy intensive to melt metal at 1500°C to 3000 °C

It generates a lot of pollution (“smokestacks industry”)

Page 5: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

5

THE NOVX21

TECHNOLOGY

NovX21 – TSX.V: NOV

Our proposed plant will be automated to

handle (CC) material in a Clean and

Environmentally Friendly way

– Our recovery rate of precious metals is more than

97% and we are working on the remaining 3%

– On average we recover 3,000 grams per ton of

(CC) or 3 grams / kg

– Our process is 7 to 8 weeks long, including

refining time

– Very low energy consumption

– No pollution

– Opex cost per troy ounce to recover

PGM about $168 / Toz

Page 6: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

6

GLOBAL AUTOMOBILE PRODUCTION (2009-2017)

NovX21 – TSX.V: NOV

Page 7: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

7

RECYCLING AS A DEMAND AND A NEED FOR ALL METALS

Various

definitions of

recycling rates

and data for

elements in the

periodic table

(Source: UNEP

2011)

NovX21 – TSX.V: NOV

Page 8: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

8

NEW PRODUCTS NEED NEW TECHNOLOGIES

NovX21 Autocat PGM Recovery Process

The “Metal Wheel” / Reuter and van Schaik, 2012 a&b; Ullmann‘s Encyclopaedia,2005 NovX21 – TSX.V: NOV

Page 9: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

9

THE BUILD OUT OF OUR FIRST PLANT

NovX21 – TSX.V: NOV

As soon as debt financing and subsidies for $ 5 million will be confirmed,

the plant will be built in 8 to 12 months

- High level engineering design is completed

- We will lease a building in the Province of Quebec to install the

equipment for a minimum of 200-ton-per-year facility (4 reactors, 50

tons each)

- We want to secure feedstock from multiple locations for the first

plant

Page 10: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

10

ECONOMICS

NovX21 – TSX.V: NOV

Key assumptions:

• CAPEX of $2.65 million for the first plant (includes equipment from the

prototype plant)

• No cost for building acquisition

• Work in process inventory of $ 2 million with a ramp up of 4 months for a

period of 10 months

• Plant footprint approximately 10,000 sq. ft.

• PGM content of 3 grams / kg

• PGM ratio: Pt= 52% Pd=42% Rh=6%

• Gross Profit Margin on Final Product Sales – PGM value @ $1,182 /Toz. ($38 /

gram - avg 2013)

Operating Costs

Final Product Sales 200,000 CC @ $ 114 /kg 22,800,000 $

CC Feedstock 200,000 kg @ $ 72 /kg 14,400,000 $

Operating Costs $13.93/ Kg of recycled (CC) 2,786,000 $

Gross Profit Margin > 33% on final product sales 5,614,000 $

Page 11: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

11

PLANT OPERATING MARGIN - SENSITIVITY TABLE

NovX21 – TSX.V: NOV

Key Assumptions:

• Three variable components (1) CC feedstock cost (2) PGM content per Kg (3) PGM market price

• Fixed operating cost of $13.93 per kg

• First plant processing

Page 12: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

12

FIVE-YEAR FORECAST

NovX21 – TSX.V: NOV

2014 2015 2016 2017 2018 2019

Cumm T/Yr 40 333 700 933 1933 2800

Cumm. # Reactors 4 14 32 56 64 76

Revenues M$/Yr 6 $ 49 $ 103 $ 137 $ 284 $ 412 $

40

333

700

933

1933

2800

4 14

32

56 64 76

6 $

49 $ 103 $

137 $

284 $

412 $

0

50

100

150

200

250

300

350

400

450

-500

0

500

1000

1500

2000

2500

3000

Revenues M$/yr.

Tons/yr. - Cumulative # of reactors

Worldwide implementation of reactors

Page 13: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

13

REVENUE

SOURCES

1. Operate our own commercial PGM Recovery Plant

• A minimum of 4 reactors (200 TPY) could

operate 24 / 365

• Dedicated reactors will be installed to

process other sources of material with high

concentrations of precious metals

2. Joint Venture Partnership to build / operate plants

and grow the market

3. New higher margin products in response to

customers’ specifications for immediate use

NovX21 – TSX.V: NOV

Page 14: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

14

2014-2015 TIMELINE

NovX21 – TSX.V: NOV

– January 2014 - November 2014

• Financing /Construction 200tpy plant in Quebec

–Testing material from suppliers with prototype reactor

–Site selection for first commercial plant

–Equipment purchasing, construction of reactors, plant construction

- Equipment installation, hiring of employees, commissioning period, start of commercial production

– 2014-2015

•On-going JV Discussions for installation of other commercial plants

•R&D for liquid phase, capture of iridium and other valuable precious metals, ewaste

Page 15: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

15

CAPITAL

STRUCTURE MARCH 2014

TSX-V: NOV Share Price

(March 31, 2014) $ 0.17

52 Week Low/High $ 0.065 - 0.35

Daily Volume 161,500

Market Cap (MM)

$ 17M

Issued & Outstanding (MM) ( * )

99.9

Warrants (MM) ( * )

49.9 @ 0.23$

avg.

Options (MMM) 5.4 @ 0.21$ avg.

Fully Diluted (MM) ( * ) 155.2

( * ) after completion of the private placement - 30 million shares

and warrants

NovX21 – TSX.V: NOV

Page 16: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

16

BACKGROUND INFO. ON SYLVAIN BOULANGER

NovX21 – TSX.V: NOV

Manufacturing

General Motors 11 years

Paccar 8 years

Bauer – Nike 5 years

Logistics and Supply Chain

ALDO Group 9 years

Genco – Canadian Tire 2 years

Page 17: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

17

EXPERIENCED LEADERSHIP

NovX21 – TSX.V: NOV

Management

Sylvain Boulanger

President, CEO

• B.A., BSc Elec. Eng. (1977),

• 23 years Manufacturing experience with GM, Nike,

Paccar

• 10 years of senior management in the supply chain

industry

Fayçal Salek • Interim CFO

Pierre Gévry

Director of exploration

• CEO of les Mines J.A.G. Ltd.

• Over 40 years in the financial, mining sectors

Directors

John LeBoutillier • Member of the Order of Canada

• Chairman of the Board of Industrial Alliance Insurance

& Financial Services Inc. and Groupe Deschênes Inc.,

André Boulanger • President of Hydro-Québec TransÉnergie

• BSc, MSc. Mechanical Engineering

René Branchaud • partner of the law firm Lavery, de Billy, L.L.P

Jean-Paul Schaack • BSc., MSc, MBA

Page 18: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

18

NOVX21 CHRONOLOGICAL EVENTS

NovX21 – TSX.V: NOV

• 1988 Pro-Or begins mining exploration

• 2000 Chromite deposit (1.6 to 1 ratio) found at Menarik property

• R&D to upgrade the ratio of iron to chromite through Research Institute (INRS)

• Pro-Or files patent for process to upgrade Chromite ratio

• 2005 After more R&D from INRS, Pro-Or files patent for process to recover PGM from concentrate and ore

• 2005 Pro-Or builds prototype plant

• 2007 – 2011 Development of the commercial equipment to recover PGM and final improvements

• April 2012 Completion of mass balance yield study

• June 2013 Completion of the pre-feasibility study

• December 2013 Shareholders approve change of name to NovX21 and change of status to a “technology

issuer” and a “mining issuer”

• January – November 2014 Financing / Construction of the plant and ongoing JV discussions

Page 19: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

Contact Information

Sylvain Boulanger, ing.

President & CEO

620 St-Jacques # 110 Montreal,

Quebec H3C 1C7

Tel: 514-282-2110

[email protected]

Nicole Blanchard

Strategic Communications & Investor Relations

Sun International Communications

545 Promenade Centropolis

Laval , Quebec, H7T 0A3

Cell : 514-961-0229, Tel : 450-973-6600

[email protected]

Page 20: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

South Africa 71.8%

Russia 13.6%

Others 14.6%

2013 Platinum Supply

5.74M oz

The deficit in the platinum market is forecast to increase in

2013 to 605,000 oz, from 340,000 oz in 2012. Supply of

platinum will rise by 1.6% to 5.74 million ounces, with higher

output from Zimbabwe accounting for most of the gains.

Strong offtake by industrial users and investors will lift gross

platinum demand by 4.9% to 8.42 million ounces. Recycling

of platinum will grow slightly to 2.08 million ounces.

Source: Johnson Matthey Platinum 2013 Interim Report

20 NovX21 – TSX.V: NOV

Page 21: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

Jewelry is the second largest sector

of pgm demand. 85% of platinum

jewelry is made and sold in China,

Japan and USA.

Autocatalyst is the second largest

sector of pgm demand. 85% of

platinum jewelry is made and sold in

China, Japan and USA.

Industrial is the second largest

sector of pgm demand. 85% of

platinum jewelry is made and sold in

China, Japan and USA.

USE OF PLATINUM

Source: Chart - Johnson Matthey Platinum 2013 Interim Report

Text and Images – Johnson Matthey www.matthey.com

Auto 37%

Jewelry 33%

Chemical 6%

Electrical 2%

Glass 3%

Petroleum 2%

Others 8%

Investment 9%2013 Platinum Demand

8.42M oz (Gross)

21 NovX21 – TSX.V: NOV

Page 22: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

2013 Palladium Supply

6.43M oz

Source: Johnson Matthey Platinum 2013 Interim Report 22 NovX21 – TSX.V: NOV

palladium, while production from Zimbabwe will rise strongly due to

another round of mine expansion.

North American output of palladium as a by-product of nickel mining

will also increase.

World supplies of palladium will decline by 1.5% to 6.43 million ounces in 2013, as sales from Russian

government stocks drop to 100,000 oz. There will be a marginal recovery in South African shipments of

South Africa 36.5%

Russia 42.0%

Others 21.5%

Page 23: Novx21 Corporate Presentation April 2014 - STATE OF THE ART CLEAN TECHNOLOGY LOW ENERGY, LOW COST, HIGH RECOVERY PROCESS - PGM Platinum Group Metals Recovery Recycling Palladium Rhodium

Source: Johnson Matthey Platinum 2013 Interim Report

2013 Palladium Demand

9.63M oz (Gross)

Auto 72.4%

Jewelry 4.0%

Chemical 5.5%

Electrical 11.0%

Dental 5.3%

Others 1.0%

Investment 0.8%

Although the gap between palladium supply and demand will narrow in

2013, the market will be in deficit by 740,000 oz. Primary supplies will

decline to 6.43 million ounces, due to lower Russian stock sales, but

recycling will grow by 7.4% to 2.46 million ounces.

A return to boom conditions in the Chinese car market will lift global

autocatalyst demand for palladium by 4.0% to 6.97 million ounces.

23 NovX21 – TSX.V: NOV