Announcement PDF Australian Critical Rare Earth Minerals Broker Briefing 6 July 2023 ASX I OD6 Important Information Disclaimer This presentation has been prepared by OD6 Metals Ltd (ACN 654 839 602) (OD6) and is current as at the date of this document. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without considering the investment objectives, financial situation or needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate considering your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. Any securities that may be issued by OD6 should be considered speculative and there is no guarantee implied or explicit that there will be a return on the capital invested or that any dividend will be paid or that there will be an increase in the price or value of OD6’s shares in the future. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of OD6, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Competent Person Statement The information contained in this presentation that relates to exploration results is based on and fairly represents information and supporting documentation prepared Mr Jeremy Peters, Director of Burnt Shirt Pty Ltd. Mr Peters is a Fellow of the Australasian Institute of Mining and Metallurgy and a Chartered Professional Geologist and Mining Engineer of that organisation. Mr Peters has sufficient experience relevant to the style of mineralisation and type of deposits under consideration, and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code. Mr Peters consents to the inclusion of the matters based on his information in the form and context in which the exploration results and supporting information are presented in this presentation. Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of OD6 and its projects, are forward looking statements. Such forward looking statements: • may include, among other things, statements regarding incomplete and uncertain proposals or targets, production and prices, operating costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions; • are necessarily based upon several estimates and assumptions that, while considered reasonable by OD6, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and • involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardlooking statements. OD6 disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements. All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. No representation is made that, in relation to the tenements the subject of this presentation, OD6 has now or will at any time in the future develop further resources or reserves within the meaning of the Australian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (The JORC Code). No New Information This document contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (2012 JORC Code) and available for viewing at https://www.od6metals.com.au/investors/asx-announcements/. OD6 confirms that it is not aware of any new information or data that materially affects the information included in any original ASX market announcement. 2 Globally Significant Clay Hosted Rare Earth Discovery 100% Owned • Immence 4,828 km2 tenement package • Multiple large-scale prospects identified • Grades averaging >1,000ppm TREO @ ~22% MagREO • 10-80m thick intersections, near surface • 60 to 75% average acid leach recoveries • 250km2 of clay basins mapped by an Airborne electromagnetics (AEM) survey • Close to port, roads & essential infrastructure TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MagREO (Magnet Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 % Magnet REO = (MagREO / TREO)*100 3 Rapid Exploration Progress Since IPO Doing what we said we would do IPO and ASX Listing CSIRO engaged for REE exploration Continued excellent drilling success Drilling commences at Grass Patch High-grade REEs identified at Grass Patch Bumper REE grades at Splinter Rock A$8M raised at A$0.20/share Utilising cutting edge exploration tools Further extensions of 10-80m thick highgrade clay hosted REE Initial 93-hole AC program for 3,399m of drilling Grades up to 3,340ppm TREO, with up to 38.5% MagREO 74 out of 83 holes returned significant high grade TREO results Sep 22 Dec 23 Jun 22 Mar 23 Drilling commences at Splinter Rock Immediate outstanding drilling success Airborne Electromagnetic Survey complete Second phase drilling complete at Splinter Rock Initial 179-hole AC program for 5,862m of drilling Results from first 65hole returns grades up to 6,729ppm TREO average 22.3% MagREO Vast scale of target areas identified with over 250km2 clay basins mapped , Very high metallurgical recoveries Total 83 holes drilled for 4,305m at average depth of 50m and max depth 100m Up to 96% of MagREO acid leach recoveries. Average 60 to 75% Refer to OD6 ASX Announcements https://www.od6metals.com.au/investors/asx-announcements/ Jun 23 Third phase drilling underway at Splinter Rock Further 188 holes for 10,000m planned 4 Highly Targeted Exploration Program Airborne Electromagnetic (AEM) Success Salt water • AEM has facilitated mapping of clay locations, expanse and potential thickness A • 250km2 of clay basins mapped • Clays are conductive, and are readily mapped with AEM (yellow to red colours). Salt water • Granites are not conductive (blues to green) • 74 out of 83 holes (~90%) returned significant high grade TREO results from last drill program B Salt water Refer to: ASX announcement 15 December 2022, “AEM shows Vast Scale of Target Areas” 5 Splinter Rock Geology Heavily enriched in Rare Earths A • Splinter Rock tenure and exploration model targeting clay basins fed by REE weathering of Booanya granites X Y • The strong enrichments in REE distinguishes Booanya granites from all other granite groups in the Esperance area • CSIRO engaged to use cutting edge exploration tools A X B Y B 6 Four Significant Prospects at Splinter Rock Thickness x Area x Density = Massive Potential Scale A X Y B Prospect TREO Grade # MagREO % # Clay Thickness AEM width x length AEM Clay Basin Area Cover Thickness Met Leach Recovery Scrum 1,000 to 1,290ppm 23 to 24% 10 to 48m 1-5km x 11km ~ 26 km2 15 to 35m 64% Centre 1,260 to 1,590ppm 22 to 23% 10 to 70m 5-10km x 27km ~ 136 km2 5 to 10m 54 to 78% Flanker 1,050 to 1,310ppm 23 to 24% 10 to 30m 3-5km x 17km ~ 42 km2 3 to 15m 76% Prop 740 to 1,420ppm 20 to 22% 10 to 80m 3-9km x 5-11km ~ 49 km2 3 to 24m 44 to 96% # Indicative average grades based on a 300ppm and 750ppm cut off grade Airborne Electromagnetic Survey (AEM) Refer to: ASX announcement 18 April 2023, “Bumper REE Grades and Extensive Thicknesses at Splinter Rock” Refer to: ASX announcement 15 December 2022, “AEM shows Vast Scale of Target Areas” Refer to: ASX announcement 3 April 2023, “Very High Metallurgical Recoveries” 7 Deep REE Clay Basins Drilling Success The thickest and highest grade in Australia • Near surface, thick clay basins • 60 to 70m thick mineralised clays • Predicted by AEM to continue along strike for kilometres • 55m @ 1,781ppm TREO • 71m @ 1,330ppm TREO X Y • 69m @ 1,483ppm TREO • 68m @ 1,316ppm TREO Refer to: ASX announcement 18 April 2023, “Bumper REE Grades and Extensive Thicknesses at Splinter Rock” 8 Phase 3 Drilling Continues At Splinter Rock Pursuing the “Best of the Best” Centre Prospect • 188 hole, 10,000m drill program due commenced in June 2023 • Highly targeted utilising AEM • Focus on testing the length, continuity of grade and thickness of the prospects Scrum Prospect 54% to 78% recoveries (average 62%) three samples 64% recovery from single sample Prop Prospect • Metallurgical samples will also be selected for further work at ANSTO 44% to 96% recoveries (average 71%) five samples • A$180k will be co-funded by the WA Government flagship Exploration Incentive Scheme (EIS) Flanker Prospect Refer to ASX announcement 24 April 2023, “Successful Exploration Incentive Scheme Application” 76% recovery from single sample 9 Strong Metallurgical Results Identifying the best metallurgical areas Centre Prospect • Very high metallurgical recoveries achieved using simple acid leach • Highest recoveries are in clay basins and channels away from granites margins • Centre Prospect: 54% to 78% with average 62% Scrum Prospect 54% to 78% recoveries (average 62%) three samples 64% recovery from single sample • Prop Prospect: 44% to 96% with average 71% • Impressive leach response time observed: • indicating reductions in acid strength is possible • Screening of coarse grained material expected to reduce leach material by 30-50% without appreciable loss of MagREO • Testing, analysis, optimisation and mineralogy continuing at ANSTO, CSIRO and Murdoch University Refer to: ASX announcement 3 April 2023, “Very High Metallurgical Recoveries” Prop Prospect 44% to 96% recoveries (average 71%) five samples Flanker Prospect 76% recovery from single sample 10 Targeting a Maiden Mineral Resource Estimate All key elements present for maximum economic potential TREO MagREO Grade MagREO Thickness Leachability Exceptional clay rare earth grades returned at multiple, large-scale Prospect areas Valuable magnet rare earth elements represent large proportion of TREO grade Extensive clay thickness with evidence of continuity and consistency of grade Very high metallurgical recoveries achieved with impressive leach response observed 11 Corporate snapshot High calibre leadership team, tight capital structure and well funded Capital Structure ASX: OD6 Price per share1 A$0.23 Total number of shares on issue2 102.45M Performance rights and options2 32.70M Market capitalisation (undiluted)1 A$23.56M Cash2 A$3.52M Debt2 A$0.00M Enterprise value1 A$20.04M Share Price History A$/share Dr Darren Holden Mr Brett Hazelden Mr Piers Lewis Dr Mitch Loan NON-EXECUTIVE CHAIR MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Register Detail 0.72 0.62 Founders (exc. Directors and Management) 0.52 0.42 40% 42% 0.32 Institutions 0.22 0.12 Jun 22 Aug 22 1. As at 05 July 2023 2. As at 30 June 2023 Oct 22 Dec 22 Feb 23 Apr 23 Directors and Management 5% 13% Retail / Other Jun 23 Note: 47,435,249 shares (46%) escrowed until 22 June 2024 12 Investment Highlights 1 Dominant land holding near Esperance port 100% interest in a vast tenement package with multiple rare earth mineralised prospects 2 Consumption of rare earth magnets expected to triple by 2035 3 Globally significant new discovery 4 Strong metallurgical results 5 6 Targeting critical rare earth element materials Exceptional rare earth grades >1,00ppm TERO @ ~22% Mag REO and extensive thicknesses of 10m to 80m Simple Acid Leach process with high recoveries of 60% to 75% Focused on Maiden Mineral Resource Estimate Rapidly unlocking over 250km2 of identified clay basins of international importance Skilled board and management High calibre geological, metallurgical, project development and corporate professionals 13 Appendix ASX I OD6 Insatiable Demand For Rare Earth Magnets A growing NdPr rare earth supply deficit • Transitions from carbon to renewable economy - strong demand for critical MagREO MagREO demand forecast (t)1,2 Approximately 8.6% CAGR • 8.6% expected compound annual growth rate (CAGR) for MagREO • Value of global MagREO consumption expected to triple by 2035 – rising from US$15.1 billion in 2022 to US$46.2 billion in 20352 168,200 116,360 1. MagREO (Magnetic Rare Earth Oxide) = Pr6O11 + Nd2O3 + Tb4O7 + Dy2O3 2. Source Adamas Intelligence, June 2022 3. NdPr = Two of the critical rare earth elements Neodymium (Nd) and Praseodymium (Pr), represent the major value and revenue sources from Rare Earth Element production. 67,662 51,851 2015 2020 2025 2030 2035 NdPr market balance (t)2,3 2,968 • Significant NdPr supply deficits expected, • Demand underpinned by growth from electric vehicles, wind power and consumer electronics 246,111 (4,620) (12,042) (15,532) (20,834) (37,811) Rapidly emerging NdPr market deficit forecast 2022 2024 2026 (57,063) 2028 2030 2032 2034 15 New Australian Supply Urgently Needed Mine concentration is a significant risk to the global supply chain Existing global mine production (t) 140,000 Diversity of supply is a priority for governments and corporations with Australia well placed to provide additional capacity China continues to dominate both mine production and downstream processing 38,000 30,000 17,000 100 500 1,000 1,000 2,000 2,700 3,000 8,000 Source: USGS Mineral Commodity Summaries, Rare Earths: https://pubs.usgs.gov/periodicals/mcs2021/mcs2021.pdf 16 Grass Patch Project Three high-potential Prospect areas confirmed • High-grade clay REEs successfully identified in 93-hole reconnaissance drilling program • Grades of up 3,340ppm TREO with up to 38.5% MagREO encountered • Thick clays encountered of up to 59m (average range of 3m to 20m) • Three key areas to be targeted for further exploration: • Belgian Prospect • Circle Valley Prospect • Scaddan Prospect • High-potential Prospect areas to undergo metallurgical testing to determine potential recoveries and inform future exploration Refer to ASX announcement 24 March 2023, “Grass Patch Drilling Identifies High-Grade REEs” 17 Sustainably Creating Value Acting with integrity to responsibility deliver rare earth resources for a low carbon future Our sustainability priorities: ESG Workplace health and saftey and mental health Our aim is to minimize our environmental impact, look after our people, grow with our communities and create value for our investors Aboriginal engagement, heritage and Traditional Owners Business ethics RISK Regulatory compliance and change Flora and fauna Corporate governance and risk management 18 Contact us Registered Office c/o LCP Group Level 1, 50 Kings Park Road West Perth WA 6005 Phone: +61 8 6189 8515 Email: info@od6metals.com.au Share Registry Computershare Investor Services Level 11, 172 St Georges Tce Perth WA 6000 www.od6metals.com.au ASX I OD6