Renascor Resources (RNU) Investor Presentation summary

Project overview and strategy

• Developing a vertically integrated Battery Anode Material (BAM) project to supply 100% Australian-made purified spherical graphite (PSG) for lithium-ion battery anodes, targeting the EV sector.

• Siviour deposit is the world's second largest proven graphite reserve and the largest outside Africa, with a total mineral resource of 123.6 Mt at 6.9% TGC and ore reserve of 61.8 Mt at 7.0% TGC.

• Project aims for low-cost, high-margin production, leveraging favorable geology, near-surface flat-lying ore, and in-country vertical integration.

• Staged development approach: initial mining and concentrate production, PSG demonstration plant, and full-scale PSG operation.

• Goal to become a leading global supplier of PSG, supporting ex-China battery supply chains.

Market dynamics and policy environment

• EV and lithium-ion battery markets are growing, driving a forecasted 680% increase in natural graphite demand for anodes by 2040.

• Battery mineral prices, including graphite, declined in 2023 due to increased Chinese synthetic anode production but stabilized in 2024.

• Chinese dominance in synthetic anode production has led to unsustainably low prices, but ex-China supply is favored for ESG and security reasons.

• Government policies in the US, EU, and Australia are incentivizing ex-China supply chains, including tariffs and critical mineral funding.

Project economics and funding

• Post-tax NPV10 of A$1.5 billion, IRR of 26%, and average annual EBITDA of A$363 million.

• Initial upstream investment of A$215 million, with a conditional A$185 million loan from the Australian Government's Critical Minerals Facility.

• Current cash balance of A$109 million and no debt as of September 2024.

• Upstream graphite concentrate OPEX projected at US$405/t (years 1-10); PSG OPEX at US$1,782/t.