CORPORATE PRESENTATION - Critical Metals Recovery Project - TSX:SCY www.scandiummining.com
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TSX:SCY
www.scandiummining.com
CORPORATE PRESENTATION
Critical Metals Recovery Project
Public Document – August 24. 2021
CONFIDENTIAL SCANDIUM INTERNATIONAL |
CAUTIONARY NOTES
Forward-looking Statements public disclosure an issuer makes of scientific and technical information
This presentation contains certain statements that may be deemed "forward-looking statements". concerning mineral projects. All resource estimates contained in this circular
Information set forth may involve forward-looking statements under applicable securities laws. Forward- have been prepared in accordance with NI 43-101 and the Canadian Institute of
looking statements are statements that relate to future, not past, events. In this context, forward-looking Mining, Metallurgy and Petroleum Classification System.
statements often address expected future business and financial performance, and often contain words
such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or Company Estimates.
event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All This presentation contains certain specifically identified economic estimates
statements, other than statements of historical fact, included herein including, without limitation; regarding project financial performance that are SCY estimates, prepared by the
statements about the terms and completion of the Merger and related transactions are forward-looking Company, and are not supported by independent engineering work or by an
statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties independent QP. They should be treated by investors as indicative estimates
and other factors which may cause the actual results, performance or achievements, or other future events, only. These projects (specifically CMR and HPA) are upgrade facilities only, and
to be materially different from any future results, performance or achievements expressed or implied by they do not source their mineral inputs from Company-owned resources. They
such forward-looking statements. Forward-looking statements are made based on management's beliefs, are designed to either purchase feedstocks at market prices, from suppliers, or
estimates and opinions on the date that statements are made and the respective companies undertakes no be granted access to mineral-containing solutions for compensation, from which
obligation to update forward-looking statements if these beliefs, estimates and opinions or other they are allowed to extract minerals for upgrade and sale.
circumstances should change, except as required by applicable securities laws. Investors are cautioned
against attributing undue certainty to forward-looking statements. The information provided in this Qualified Person.
presentation is provided solely for general knowledge purposes. This presentation is not intended to be a Mr. Willem Duyvesteyn, MSc, AIME, CIM, a Director of Scandium International
comprehensive review of all matters and developments concerning the Company and the Company and a "qualified person“ within the definition of that term in NI 43-101, has
assumes no responsibility for its completeness, accuracy and currency. Although information used in this approved the technical information contained in this news release that is
presentation is believed to be accurate as at the date hereof, it may not be accurate when read. The covered by NI 43-101 law.
Company does not undertake to update any of the information provided in this presentation. For current
information please refer to the Company's filings on SEDAR (www.sedar.com) or EDGAR (www.edgar.com),
or contact the Company.
Resource Estimates.
This document uses the term “resources”, “measured resources” and “indicated resources”. United States
investors are advised that, while such terms are recognized and required by Canadian securities laws, the
United States Securities and Exchange Commission (the “SEC”) does not recognize them. United States
investors are cautioned not to assume that all or any part of measured or indicated resources will ever be
converted into reserves. National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-
101”) is a rule developed by the Canadian Securities Administrators, which established standards for all
SCANDIUM INTERNATIONAL | 2
INVESTOR SUMMARY — SCY
SCY HAS WIDENED ITS HORIZONS. The company is now pursuing
multiple critical metals opportunities, based on a foundation of innovative metals
recovery and processing IP and patent portfolio.
BATTERY METALS FOCUS. Global supply gaps evident and represent a
huge near-term development opportunity.
A CLEAR PATH TO DEVELOPMENT. LOI signed with Nevada Gold Mines
(NGM) to partner in a development program for critical metals recovery (CMR).
DEVELOPMENT PROGRAM OBJECTIVES. Demonstrate capability to
extract and refine Li-ion battery metals (Ni/Co), and scandium from mine process
solutions, at the Phoenix Mine, near Battle Mountain, NEVADA.
CMR REPRESENTS A NEW CRITICAL METALS SOURCE. Local
sourcing, huge ‘repeat’ possibilities, low environmental footprint.
A SECOND PATH INTO BATTERY METALS MARKETS. The company
intends to pursue a development program in high purity alumina (HPA), to
leverage SCY technical capability and expand our battery metals portfolio.
SCANDIUM REMAINS SIGNIFICANT. Scandium retains a place in our
expanding portfolio, servicing both technology and structural uses, potentially
from both Nyngan and Phoenix CMR.
SCANDIUM INTERNATIONAL | 3
SCY STRATEGY SUMMARY
MINERALS TO SUPPORT A SUSTAINABLE WORLD
• SCY’s development focus centers on producing
critical minerals needed for next-gen product BATTERY
SCY
components. PATENT
METALS
PORTFOLIO
– Everything in the SCY development portfolio
has a product offer for batteries. PHOENIX CMR
– SCY wants to be a materials supplier, not a PROJECT
components manufacturer. TECH
METALS
• Phoenix CMR Project is our focus now.
– CMR is a multi-mineral producer concept.
– The Phoenix project product suite is supported
by established metals markets.
AI ALLOY
• The two new projects are fast to market, and METALS
NYNGAN HPA
also environmentally friendly. SCANDIUM PROJECT
– Much faster to develop than mine alternatives. PROJECT
– Both have low environmental impacts and service
ESG-positive applications.
– Both have initiating potential in the USA, which is
our intent.
SCANDIUM INTERNATIONAL | 4
CRITICAL METALS – DEFINED
MOST EXHIBIT TECHNOLOGY-DRIVEN DEMAND
• US DOC 35 element ‘Critical Minerals List’ represents
“A Federal Strategy to Ensure Secure and
identified supply exposure-points to key US industries. Reliable Supplies of Critical Minerals,”
– Identified on basis of limited or vulnerable supply sourcing.
US Department of Commerce
– Forecast for rapid demand growth, in high value applications. 35 Identified Critical Minerals
– With limited or no substitution potential in those applications.
• The transition from fossil fuels to renewables, combined Aluminum Graphite Rubidium
Antimony Hafnium Scandium
with the electrification trend, creates strong demand for Arsenic Helium Strontium
battery metals. Barite Indium Tantalum
Beryllium Lithium Tellurium
– Li-ion battery metals top the list, along with solar energy metals.
Bismuth Magnesium Tin
– RED highlighted minerals – in SCY’s development portfolio. Cesium Manganese Titanium
Chromium Niobium Tungsten
• Harvesting critical metals from existing mineral processing Cobalt Platinum Uranium
streams is both economically and ESG-attractive. Fluorspar Potash Vanadium
Gallium Rare Earths Zirconium
– Eco-friendly. Low incremental environmental footprint. Germanium Rhenium
– Easily source-traced. Local sourcing advantages possible.
– Economic. Incremental cost, no new mining. Final list, subject to update, as identified by the US
Secretary of Interior in 2018, pursuant to
• The mining industry is now actively investigating recovery compliance with Exec. Order 13817.
of hi-value secondary metals at existing mining sites.
SCANDIUM INTERNATIONAL | 5
SCY’S CMR PROJECT OVERVIEW
LOI AGREED WITH NEVADA GOLD MINES AS HOST
• Letter of Intent agreed, with following steps outlined. Phoenix Mine
– Recovery circuit development program defined.
– Outlines a 50:50 sharing on $2.7M program costs.
– Two stage 15-month technical work plan established.
Recovery Circuit
• Joint recovery circuit development program scoped.
(50:50)
– Phase I – scoping and bench testing programs.
– Phase II – on-site pilot plant and advanced project design. Concentrate
– Covers recovery plant development only. Refinery plant
development will be independently pursued by SCY. Refinery Circuit
(100% SCY)
• Rights to develop a commercial project established.
– Commercial construction/operation requires mutual consent. Finished Product
– The recovery plant asset will be operated by Phoenix Mine, owned
50:50 by the partners, located inside the mine gate. CUSTOMERS
– Other ownership and commercial rights have been pre-agreed.
SCANDIUM INTERNATIONAL | 6
SCOPING STAGE PHOENIX CMR ECONOMICS
POTENTIAL OPERATING PROJECT – 100% VIEW
DEVELOPMENT PRODUCT TARGETS
PRODUCT SALES INDICATIVE*
PROGRAMS are lithium-ion battery
AND MARKETING metal precursors CMR PROJECT ECONOMICS
Timeframes and cost
• Shared recover plant • SCY responsible for • Nickel and cobalt products
development program
– US$2.7M
sales and marketing
final products.
will be either sulfates or
customer order.
100% $80M
TOTAL ANNUAL REVENUE
• SCY refinery • Nickel and cobalt are • Scandium will be either PROJECT ESTIMATE
development program primary targets – master alloy, or as oxide
– US$2.0M +50% total revenue. for technical applications.
• Target completion on
shared development is
• Scandium and zinc
outputs represent
• Products will be offered
under contract, designed
$100M $55M
CAPITAL COST ANNUAL EBITDA
15 months. remainder. to meet specific
TOTAL PROJECT ESTIMATE
customer specifications.
NOTES: Capital costs are SCY estimates, figures
shown for entire project, partner’s individual shares
not disclosed. Metals prices based on LME reference
Phoenix CMR project holds potential to become the USA’s first prices, where available. Economics are annual
cobalt and nickel refinery. estimates only.
*NOTE: Qualifications: Project economics presented above for CMR are SCY-prepared, table-top estimates, to be considered as indicative only. They are not endorsed by NGM, nor supported by an
independent engineering review. The CMR project does not include ownership rights for SCY in any existing mineral interests of the mine owner. The project, if built, will have potential access to mineral-
containing solutions considered barren of recoverable minerals in current form. Assumptions: Current LME prices used as benchmarks, where applicable. Capital estimates are based on indicative third
party quotes or Company estimates, metals volumes based on a portion of available SX raffinate available and analysis of SX raffinate metals content, recoveries based on IX systems knowledge and
current metals-selective resins. Risks: Project capital or operating cost over-runs, poor recoveries, disruptions or discontinuance of feedstock solutions availability, change in feedstock solutions grades,
and LME metal reference price changes.
SCANDIUM INTERNATIONAL | 7HIGH PURITY ALUMINA (HPA)
A KEY INGREDIENT IN A GREENER FUTURE
• HPA (Al2O3) currently used in numerous technical applications.
– Substrate material in LED light bulb construction.
– Scratch-resistant lenses in watches/smart phones (synthetic sapphire).
– Coating material for Li-ion battery separators and electrodes.
• Product purity is an imperative for high value and performance.
– 99.99% (4N) is the premium market and increasingly demanded.
– Existing high quality HPA producers rely on high purity aluminum as
feedstock to meet grade – an expensive and indirect route.
• Manufacture from alumina clays or alumina feedstocks could be
cheaper, but contaminants must be eliminated in process.
– Process routes are available to reach 4N specs from cheaper feedstocks.
– SCY has filed a US Patent application on novel HPA production from both
low-cost liquid and solid feedstocks.
– The SCY patent application supports production of boehmites, aluminum
nitrites and sulfates as well.
• Growth forecasts are very strong, from current markets.
– CRU calls for 20-30% CAGR, from 2020 to 2028.
– Existing capacity cannot expand to meet this level of growth. SCANDIUM INTERNATIONAL | 8HIGH PURITY ALUMINA PROJECT
CONGRUENT WITH CMR AND BATTERY METALS EMPHASIS
DEVELOPMENT EXPANDING HPA INDICATIVE*
PROCESSING OPPORTUNITY IN
PROGRAMS ESG-ALIGNED HPA PROJECT ECONOMICS
Timeframes and cost
AND POSTIONING (Generic Project Estimate)
MARKETS
• Development program • Capability to use • Customers make ESG
•
US$1.8M (100%)
Program will test and
multiple alumina
feedstocks is a
friendly products, globally
recognized as such.
2,500 $60M
TPY PLANT ANNUAL REVENUE
pilot a 2,500-5,000TPY competitive advantage. • SCY flowsheet utilizes CAPACITY ESTIMATE
HPA production plant. • Local sourcing and low-cost alumina
• Program timeframe is custom products feedstocks, employs
valued by customers. closed loop flowsheet,
15 months from
initiation. • Project partners may with low waste volumes. $70M $45M
• Flowsheet will be prove advantageous • HPA market forecasted CAPITAL COST ANNUAL EBITDA
but are not required. for continued growth. TOTAL PROJECT ESTIMATE
consistent with US
Patent Application. • US and Euro markets
are excellent targets. NOTES: Capital costs are SCY estimates. HPA price
assumption for 4N grade is US$25/kg.
This project holds potential to offer a key component to both
EV/battery markets and ESG-mandated lighting markets, rapidly.
*NOTE: Qualifications: Project economics presented above for HPA are SCY-prepared, table-top estimates, to be considered as indicative only, and not supported by an independent engineering review.
The project, if built, will likely purchase smelter grade alumina as feedstock from available sources at market price. Assumptions: Current 4N HPA pricing used. Capital and operating costs are based on
company estimates. Risks: Project capital and operating cost over-runs, changes in price of smelter grade alumina feedstocks or HPA market pricing, or other factors.
SCANDIUM INTERNATIONAL | 9SCANDIUM – ELEMENT 21
AN ALLOYING ELEMENT FOR ALUMINUM……AND MORE
• Scandium is well known for improving aluminum alloy properties.
– Increases strength - when properly matched with other alloy additions.
– Improves weldability – particularly in A5000 series (Mg) alloys.
– Raises heat-working tolerance – better strength retention when hot.
• Improved corrosion resistance promises huge benefits.
– SCY programs have demonstrated superior marine alloy performance
with low scandium additions (0.1%) to existing certified alloys.
– Results; +35% yield strength AND lower corrosion. Better weld result.
• Electrical conductivity applications hold significant promise.
– Small scandium additions add strength with minor conductivity loss.
– Deliver a unique set of properties in challenging electrical applications.
• Emerging uses for scandium in numerous technology areas.
– Scandium delivers real value in aluminum 3D print applications.
– Non-alloy applications: Li-ion batteries, Al-nitride chips, lasers, SOFC’s,
medical, lighting. catalysts, touch screens, photovoltaics, piezo-electrics.
• Emerging and diverse uses for scandium-doped materials are
increasing the need for reliable, transparent scandium supply.
SCANDIUM INTERNATIONAL | 10NYNGAN SCANDIUM PROJECT
POSITIONED TO BE WORLD’S FIRST PRIMARY SCANDIUM MINE
NYNGAN SCANDIUM PROJECT MARKET SUPPLY NYNGAN SCANDIUM PROJECT
PROJECT DEVELOPMENT DYNAMICS VERY
ENCOURAGING ECONOMICS – DFS*
NSW, Australia DYNAMICS
• Definitive Feasibility • Aluminum alloy R&D • Chinese scandium oxide
Study completed May
2016 (Lycopodium).
has confirmed multiple
viable applications.
production increasing, for
internal consumption.
$87M $225M
CAPITAL COST PROJECT
• Permitting completed • Project construction • Projects based on mine TOTAL PROJECT NPV (8%i)
in 2017. Processing timeline is 18 months. waste streams now
patents granted. • Multi-year sales moving to development.
• Local landowner
objections have been
contracts are required
for development.
• Physical availability will
support a variety of $75M $50M
settled through uptakes and interest. TOTAL PROJECT ANNUAL EBITDA
government process. REVENUE ESTIMATE
NOTES: NI 43-101 DFS, filed 2016 on SEDAR. All
SHORT TERM AVAILABILITY OF SCANDIUM figures in US$, Fx rate: A$0.70, Sc oxide price
• assumption US$2,000/kg, production capacity 37,500
FOR CUSTOMERS IS GROWING
Near
kg/year of scandium oxide.
NEAR-TERM AVAILABLE SCANDIUM SUPPLY WILL INITIATE
DEMAND GROWTH IN MULTIPLE APPLICATIONS.
*NOTE:Financial information referenced from SCY-filed NI 43-101 DFS on SEDAR on May 4, 2016, titled “FEASIBILITY STUDY – NYNGAN SCANDIUM
PROJECT, BOGAN SHIRE, NSW, AUSTRALIA”.
SCANDIUM INTERNATIONAL | 11INVESTOR RECAP
ACCELERATING THE GROWTH POTENTIAL
• SCY is now focused on two new Li-ion battery metals
supply projects.
• The Phoenix CMR and HPA projects are both inherently
fast-to-market production strategies.
• Both new projects will serve established metals markets.
• The technical requirements for CMR and HPA are well
served by targeted SCY Patent Applications.
• All projects have strong growth potential, based on
repeatability and expanding end-use markets.
• Both HPA and CMR projects serve ESG-friendly product
markets with critical metals and from existing mining
resources.
SCANDIUM INTERNATIONAL | 12CORPORATE OVERVIEW
TICKER (TSX) – SCY
CAPITALIZATION STOCK INFORMATION
OUTSTANDING SHARES 316M CURRENT SHARE PRICE C$0.20
MANAGEMENT OPTIONS 30.8M CURRENT MARKET CAP. (I/O) C$63M
OUTSTANDING WARRANTS NONE 52 WEEK STOCK PRICE (hi/lo) C$0.35/0.10
INSIDER/MGMT OWNERSHIP 33% AVERAGE 90 DAY TRADE VOLUME 105K s/d
CASH (Q2 2021 FINANCIALS) US$0.16M
DEBT NONE
Capitalization and Stock Info as at: August 24, 2021 SCANDIUM INTERNATIONAL | 13You can also read
