Building a North American Supply Chain - January 25, 2021 TSX-V: FCC
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Building a North American Supply Chain
January 25, 2021 TSX-V: FCC
OTCQX:
TSX.V: FCCFTSSF
| OTCQX: FTSSF 1
FORWARD All statements in this presentation other than statements of historical fact constitute “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under
LOOKING similar Canadian legislation and are based on the reasonable expectations, estimates and projections of First Cobalt Corp.
as of the date of this presentation. Forward-looking statements and forward-looking information include, without limitation,
STATEMENTS
possible events, trends and opportunities and statements, including with respect to the state of the cobalt market, global
market conditions, the proposed development of the First Cobalt Refinery, the processing of cobalt hydroxide feedstock, the
ability to secure financing, results of exploration activities, potential acquisitions, capital expenditures, successful development of assets, currency fluctuations,
government policy and regulation and environmental regulation. In particular, forward-looking information included in this presentation includes, without limitation,
the opportunity to restart the First Cobalt refinery and targeted metrics. Generally, forward-looking statements and forward-looking information can be identified by
the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, “believes”, or variations of such words or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. Forward-looking statements and forward-looking information are necessarily based upon a number of estimates and assumptions that, while
considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties
and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and forward-
looking information. Such factors include changes in supply and demand for cobalt, the results of metallurgical and engineering studies, changes in competitive
pressures, timing and amount of capital expenditures, changes in capital markets, changes in exchange rates, unexpected geological or environmental
conditions, changes in and the effects of, government legislation, taxation and regulations and political or economic developments, success in attracting officers
for the future success of the Company’s business, success in obtaining any required additional financing to advance strategic priorities, and risks associated with
obtaining necessary licenses or permits.
Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or
implied in any forward-looking statements and forward-looking information made by, or on behalf of, the Company. There can be no assurance that forward-
looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in
such statements. All of the forward-looking statements and forward-looking information made in this presentation are qualified by these cautionary statements.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in
forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that
such statements will prove to be accurate, as actual results could differ materially from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements
or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
Timelines used in this presentation are for the purpose of aiding management in the planning and implementation of the projects and are not based on a detailed
assessment of project requirements. Consequently, the timelines are subject to material revision as subsequent technical reports and assessments are
completed. Future phases of the project are contingent upon completion of preceding phases. Nothing in this presentation should be construed as either an offer
to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
This presentation includes a summary of the results of a feasibility study related to the First Cobalt Refinery Project. This study does not constitute a feasibility
study within the definition employed by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), as it relates to a stand-alone industrial project and does
not concern a mineral project of First Cobalt. As a result, disclosure standards prescribed by National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (NI 43-101) are not applicable to the scientific and technical disclosure in the study and in this presentation to the extent it relates to the Refinery Project.
Dr. Frank Santaguida, P.Geo and Peter Campbell, P.Eng. are Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral
Project (“NI 43-101”) and has reviewed and approved the technical content in this presentation. Both are employed as officers of First Cobalt.
TSX.V: FCC | OTCQX: FTSSF 2
INVESTMENT THESIS
North America is 100% Reliant on Foreign-Sourced Cobalt for Batteries
01 Expanding First Cobalt’s permitted Canadian refinery to become the only North
American producer of cobalt sulfate for EVs
02 Strategic relationships with leading industry players
03 Flagship mineral asset is a high-grade cobalt-copper deposit in Idaho, USA – one
of the few primary cobalt deposits in the world
04 Peer-leading ESG credentials, including 51% reduction in CO2 emissions
compared to a leading Chinese refiner
TSX.V: FCC | OTCQX: FTSSF 3
SHARE STRUCTURE TICKERS:
(TSX-V: FCC, OTCQX: FTSSF)
450.7M
Covering Analysts
SHARE PRICE Basic
(TSX-V January 22, 2021)
C$0.315
40.3M
52 WEEK C$0.410
4.5M at $0.27
Mitch Vanderydt HIGH/LOW C$0.075 19.9M at $0.21
15.8M at $0.50
AVE. VOL/DAY Warrants
6,000,000
(20-DAY)
David Talbot 14.9M
MARKET CAP C$127M
$0.33 ave. price
Options
WORKING CAPITAL ~C$15.0M
(January 22, 2021)
TSX.V: FCC | OTCQX: FTSSF 4
LEADERSHIP TEAM
MANAGEMENT BOARD OF DIRECTORS
TRENT MELL RYAN SNYDER CPA JOHN POLLESEL GARETT MACDONALD P.ENG
President, CEO & Director Chief Financial Officer Chairman Director
CEO, Boreal Agrominerals Inc. President & CEO, Maritime Resources
MARK TREVISIOL P.ENG PETER CAMPBELL P.ENG GOV. BUTCH OTTER SUSAN UTHAYAKUMAR
Vice President, Project Development Vice President, Business Development Director Director
Retired, Governor of Idaho (’07-’19) Global Sustainability Leader,
Schneider Electric
DR. FRANK SANTAGUIDA P.GEO HENRIK FISKER
Vice President, Exploration Special Advisor
Chairman & CEO Fisker Inc.
TSX.V: FCC | OTCQX: FTSSF 5
COBALT REFINING
A North American First
TSX.V: FCC | OTCQX: FTSSF 6
ESG STRATEGY
Our mission is to provide a clean and
ethical supply of cobalt for the North
American and European EV market
Responsible Sourcing
• Responsible Minerals Initiative (RMI)
• OECD Due Diligence Guidance
• UN Guiding Principles for Business
and Human Rights
LCA Environmental Impact
• 51% lower CO2 emissions
• 73% lower water consumption Photo: First Cobalt tree planting initiative (Ontario, Canada)
• 30% lower eutrophication potential
Societal Impact
• Remove up to 650,000 combustion
engines from the road every year
• CO2 reduction of 3m tonnes/year
TSX.V: FCC | OTCQX: FTSSF 7
FIRST COBALT REFINERY
• Hydrometallurgical facility commissioned in 1996 and on care and maintenance since 2015
• Poised to become the only cobalt refinery in North America producing cobalt sulfate for EV market
• US$60M capex and 18 months to commissioning
• Strong interest from cobalt miners, metal traders and OEMs
Cobalt Sulfate
>20.5% CoSO4 5,000 tpa cobalt US$78M
Battery grade, high 25,000 tpa of cobalt Replacement Value
purity cobalt sulfate sulfate product (Hatch Report, 2012)
TSX.V: FCC | OTCQX: FTSSF 8
FEASIBILITY STUDY
Highlights
With most of the
Annual production of 5,000 tonnes of cobalt (25,000t cobalt
world’s cobalt refining 1 sulfate) representing ~5% of global market
capacity located in
China, there is strong
demand for a North $60 million capex and an operating cost that is competitive with
American alternative 2 Chinese refiners
3 $177 million after-tax NPV8 and 55% after-tax IRR
Feed purchase contracts in place – financing discussions
4 advancing
5 Strong offtake interest in a North American cobalt supply
TSX.V: FCC | OTCQX: FTSSF 9
Refinery Economics (US$M/yr, pre-tax)
REFINERY
ECONOMICS
$2
$27
Base case
projects US$35 $35 Raw Material Purchase
million in annual Operating Cost
pre-tax cash flow Transport
$218 Refinery Margin
Assumptions (US$)
• 75% long-term cobalt hydroxide feed payability
Operating costs
• 97% refinery recovery
are globally
• $25/lb long-term cobalt price
competitive
Sensitivity Table (US$)
Cobalt Price $15 $20 $25 $30 $35
Hydroxide Payability 70% 72.5% 75% 77.5% 80%
FCC Annual Margin $18 $28 $35 $39 $41
TSX.V: FCC | OTCQX: FTSSF 10FEASIBILITY STUDY
Site Layout
New structures for crystallizer, solvent extraction and filtered tailings preparation
Solvent Extraction
Building (new)
Existing
TMF
Tailings Dry Stack Tailings
Filters (new) (Phase 1)
Crystallizer
(new)
Existing Refinery
Existing Building
Warehouse
Admin Offices
Analytical Lab
Existing
Power and
Access Roads
TSX.V: FCC | OTCQX: FTSSF 11NEAR TERM CATALYSTS
• Financing – part 1 – COMPLETED
Q4’20
• $10M Government Investment
− $5M provincial grant
− $5M federal interest-free loan
• Feed purchase contracts – COMPLETED
Q1’21 • Financing – part 2 – Partially Completed
• Battery recycling test work
Q2’21 • Pre-construction activities
• Permit Amendments Received
2021 • Offtake Contracts
H2’22 • Commissioning
• Responsible Sourcing Certification
TSX.V: FCC | OTCQX: FTSSF 12COBALT
PROPERTIES
TSX.V: FCC | OTCQX: FTSSF 13IRON CREEK, Idaho, USA COBALT CAMP, Ontario, Canada
1. Flagship primary cobalt deposit with 1. 50 historic mines in a district that
significant copper credits on patented land produced 600 Moz silver + 50 Mlbs cobalt
2. 900m of strike extension and 350 depth 2. High-grade vein-style, native silver, mined
from surface; remains open at up to 185 oz/t Ag (5,200 g/t Ag)
3. Extensive infrastructure, including 3 adits 3. District-scale opportunity from 10,000
with 600m of underground development hectares of contiguous patented and
exploration claims
4. Stratabound cobalt and copper
mineralization; true widths +30m; optimal 4. Pending joint venture with Kuya Silver to
for underground bulk mining provide capital and focus on refinery
project
TSX.V: FCC | OTCQX: FTSSF 14IDAHO COBALT BELT Iron Creek Project
Largest unmined cobalt 42km from town of Salmon & Challis in central Idaho
resource in U.S.
• Primary cobalt deposits with
copper byproduct 2,600
7 mining patents surrounded by 126 claims
acres
• Idaho has a long mining history,
currently producing silver and
phosphate
• Includes former producing
Blackbird Mine (1902-1968);
supplied 50% US cobalt in 1954
1952
TSX.V: FCC | OTCQX: FTSSF 15IRON CREEK, IDAHO
GROWING HIGH-GRADE
COBALT SUPPLY
Higher-grade Co and Cu zones to the
east and west respectively remain
Schematic Long Section of Resource
open along strike and down-dip
Long section looking Northeast through mineralization
Mineralization is stratabound with
true widths up to 30 metres thick
High property potential with other
known surface mineralized zones
Resource calculation at 0.18% CoEq cutoff.
Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM), CIM Standards on Mineral Resources and Reserves, Mineral Resources, which are not Mineral
Reserves, do not have demonstrated economic viability.
Complete description of estimation parameters is available within the NI 43-101 technical report
Metallurgical tests show conventional available on the First Cobalt website.
extraction methods applicable
TSX.V: FCC | OTCQX: FTSSF 16IRON CREEK, IDAHO
REGIONAL EXPLORATION POTENTIAL
Opportunities for resource growth
and new discoveries:
• Resource drilling (20,000m) to
extend strike and down dip
extension
• Ground geophysical surveys to
detect mineralization below
cover
• Drill testing exposed
mineralization at Ruby Zone
along Jackass Creek for new
resources
• Prospecting other areas within
property footprint west of Iron
Creek
TSX.V: FCC | OTCQX: FTSSF 17COBALT CAMP, ONTARIO
FIRST COBALT EXPLORATION WORK
• First Cobalt and several predecessor
companies consolidated >10,000 hectares
− 50% of the “Cobalt Camp”
• $10 million to conduct district-scale exploration
program, including >35,000m of drilling on 12
target areas across Camp
Kerr Area
• Exploration premised on identifying large scale
disseminated mineralization
− Renewed interest in high grade silver veins today
North (Kerr Area) – Silver identified over near- Central Area
surface trends extending up to 500m strike length
(shallow,COBALT CAMP, ONTARIO PAST PRODUCTION – KERR AREA • First Cobalt controls several past producers in the silver-rich Kerr area of Cobalt North − Known historic production of 75.8M oz Ag • Shallow mining, typically
COBALT MARKET
TSX.V: FCC | OTCQX: FTSSF 20COBALT DEMAND
Strong Correlation to Battery Market
Global Cobalt Demand – by end use (tonnes)
Tonnes Co
1,000,000
• EV market growing at a
Super Alloys compound annual growth rate
(CAGR) of 16% from 2020-20271
Hard metals
Ceramics/Colours
750,000 Catalysts
Hard Facing
Tyres, soaps, paint driers
500,000
Magnets
Others
• European EV sales exceeded
Battery China in 2020 ytd
250,000
0
2015 2016 2017 2018 2019 2020 20212022 20232024 2025 2026 202720282029 20302031 20322033 2034 20352036 20372038 2039 2040
Benchmark Minerals
• EV market growth at the expense
of traditional internal combustion
engine (ICE) vehicles
• Europe surpasses China in 2020
for EV sales
1 Global Industry Analysts Rho Motion
TSX.V: FCC | OTCQX: FTSSF 21AMERICA WILL SOON HAVE MANY MODELS TO CHOOSE FROM
140 Forecast of EV Models
121
114
98
Cadillac Lyriq
76
70
39
GMC Hummer Pickup
14 13 15 16
9 12
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Ford Mach E Data: LMC Automotive
TSX.V: FCC | OTCQX: FTSSF 22EV INVESTMENT LANDSCAPE
Many of the EV jobs are in Republican states, providing support for bipartisan support
Cadillac Lyriq
Volkswagen expanding
EV operations
Nissan Leaf
Michigan
Tesla Plant
Ohio
Tesla Plant
California
SK Innovation battery
Tennessee
plants
Arizona
Lordstown Motors
Georgia
Lucid
Texas
Nikola
GM-LG Chem
Tesla Plant
TSX.V: FCC | OTCQX: FTSSF 23COBALT THRIFTING OFFSET BY EV GROWTH
195,000 tpa cobalt
kg/kWH
Tonnes
48,000 tpa
Source: Benchmark Mineral Intelligence
Cobalt ratio projected to decrease ~60% by 2026 while EV demand increases 4x
TSX.V: FCC | OTCQX: FTSSF 24INFO@FIRSTCOBALT.COM
+1 416 900 3891
FIRSTCOBALT.COM
TSX.V: FCC | OTCQX:
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