Refining titanium for industrial use

INDUSTRIAL METALS, MINERALS
AND MINEABLE ENERGY
INVESTMENT SUMMIT 2010
LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010
www.ObjectiveCapitalConferences.com
Refining titanium for industrial use
Mark Bertolini – CEO, Metalysis

Copyright © 2010 Metalysis Ltd
Industrial Metals Investment Summit
3 November 2010

To tell you about a new technology that will
have a big impact on the way metals are
produced in the future
Purpose of this presentation
Metals & Mining
Cleantech Technology
Which Sector?

Breakthrough technology,
for production of high value metals
 Breakthrough technology in $1trillion+ metals & mining sector.
 Simple, clean, oxide to metal (O2M) electrolysis technology.
 Significantly lower capital and manufacturing costs.
 Solid IPR, successfully defended.
 Samples qualified by customers, initial production investments made.
 A very valuable business built on high margin metal production and
technology enablement.

Technology Reach
FFC process is applicable to much of the periodic table. Tantalum represents
the first production investment with Titanium and other elements to follow.
Suitable
Commercial production
Scaled-up to multi kg quantities
Produced at lab scale

Early opportunities
• Tantalum
– Fabulous electronic, medical, high temperature and
chemical properties
– Supply Chain DYSFUNCTIONAL
– Market opaque and volatile
– Current process environmentally ugly and very
expensive
– Metalysis have proven technology
– First real orders soon

Early opportunities
• Titanium
– Very superior engineering material compared to steel,
stronger, lighter, more corrosion-resistant
– Titanium usage severely BOTTLENECKED by price
– Old & complex methods will be supplemented by new
simple methods
– Metalysis holds the keys
– Step change needed

video www.metalysis.com
Strictly Confidential
The Metalysis Solution
Simple, low-cost, clean route to metal powders

Copywrite
Metalysis Ltd
The Kroll Process – TiCl4 Plant

The Solution
Metalysis low cost and clean route to metal powders

From Australian synthetic rutile sands to green pellet, sintered pellet, and finally reduced metal (alloy)
From sand to high performance
metal with 3 volts

Titanium Opportunity
Titanium market is $3,000m (~120,000 t pa)
 Aerospace (strength-to-weight)
 Industrial (corrosion resistance, non-
magnetic)
 Dental implants, prosthetics
(bio-stability)
 Automotive
 Jewellery, watches, sports goods
Significant margin opportunity*
 99.99% oxide $2/kg
 Mill product $25-70/kg
 Spherical powder $150-300/kg
Forecast return per 5,000t O2M plant......*
 NPV ~$230m
 IRR ~39%
 EBITDA ~$75m pa
* 2009 price levels
Laser
sintered
titanium
dental
implant
lower cost
in titanium
than steel.
175,000 hip
replacements
are performed
annually, and
those
numbers are
on the rise
expected to
increase
174%
All titanium M777 matches the
firepower of current generation at
less than half the weight.
Jewellery and
commissioned art
work becoming
fashionable in
titanium.
Market awaits
lower-cost powder
to enable near net
shape production
CP grade 2 titanium
means no
allowance required
for corrosion .

Ore extraction &
processing
Oxide/
synthetic
rutile
Sponge
production
Mill
processing
(incl melt &
metallurgy)
Customers
Titanium - Partnerships
Titanium Industry:
BHP Tronox ATI Allegheny Chemical
Rio Tinto Huntsman Timet Marine
Exxaro Dupont VSMPO Aerospace
RBM Cristal Osaka Medical
Austpac Toho Automotive
BHP Tronox Mitsui Jewellery
RTI Sports
Steel additives Turbines
Powder Metallurgy
Other Industries:
Chemical BASF, Bayer, Dow
Aluminium Norsk Hydro, Alcoa, RTZ Alcan, BHP, Dubal
Plant build RTZ, Jacobs, Foster Wheeler, Bechtel, Fluor
Distribution
Strictly Confidential

Tantalum Opportunity
Tantalum market is $800m (~2,000 t pa)
 Electronics grade - high and low
voltage applications
 Metallurgical
 Medical implants, prosthetics
 Sputter targets
 Chemical liners
 Aerospace super-alloys
Significant margin opportunity*
 99.99% oxide $150/kg
 Met grade metal $250/kg
 Capacitor metal powder
$350/kg - $800/kg
Forecast return per 100t O2M plant......*
 NPV ~$40m
 IRR ~85%
 EBITDA ~$15m pa
Market is growing and
prices are rising
* 2009 price levels

Company
5,000 tonne titanium plant discussions
Semi-continuous design/process cost review
100 tonne plant  1,000 tonne titanium plant
Ti: Sputtering targets
Ta: Fabricated parts. Rated FFC product “high purity”
Tantalum prosthetics. Product meets requirements
Looking to build on common ground and combine
Metalysis IP with their scale-up knowledge
Powder consolidation discussions
Interest in both CP and Ti 6,4.
Metalysis joined Boeing collaboration
Engaged Blue Chip Customers
Several Top 10
Aluminium players
Several Top 7
Titanium players
2 of Top 3
A/C Engine players

Metalysis ready for production
Next investments establish capacity for commercial production
FY 2010/11 FY 2011/12 FY 2012/13
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Tantalum
increase to
96t/yr
Tantalum Roadmap 3-5% of $1B market.
1st plant ~$39m NPV
Tantalum
Investment
$15m
250t
MODULE
PROVE
OUT
Build first production module
Titanium
Investment
$15m
Build 1st Plant
~$240m NPV
Pipeline; Rollout O2M technology to other elements and special alloy development,
Value creation
options
Production Plant
Build & Commission
Improving grades and yields
First
revenues
Titanium partnering & industrialisation plans

Current Facility
CP Development
 Scale up design
 Pilot experimental testing
 Design validation
O2M
Reduction

Strategy
Achieve value triggers by end of 2011to facilitate IPO/Trade sale in 2012/3
Status:
–Proven at small scale
–Production plant built and commissioning now
Value triggers:
 Increase tantalum production volumes
 (eg mobile telephony) and medical prosthesis)
 Prove viability of technology for high volume metals
 (Titanium, eg aerospace & medical)
 Prioritize and select next value creation opportunities
 (Pipeline, eg PV Silicon & Rare Earths)
 Protect long-term value (IPR generation)
 Achieve commercial traction
Provide confidence that Metalysis can be worth $0.5B-$1B in 2 to 3 years

Intellectual Property
• 19 live, published families of patents
• Combined IP from;
– Cambridge University
– BHP Billiton
– Qinetiq
– Metalysis
• 2nd Generation Technology focussed on
– product uniformity, productivity and cost reduction
– developing significant plant and process design know how

Creating a High Value Company
2011
 Selling Ti and Ta products in volume to
customers
 Proven production technology and
economics
 License to third parties
 $150m – $250m valuation expectation
2013 - 2015
 In-house high margin production of Ta
 Ti licensing or Joint-Venture
 Further Ti licensing opportunities
 Product pipeline
 > $500m valuation expectation

Aluminium Production History
Titanium growth could be similar to that of Aluminium after
introduction of electrolytic process
•Aluminium 2007 38 Mt $106B
•Titanium 2007 0.1 Mt $3B
•Titanium 2020? 3.8Mt $76B
Imagine .......
Norwegian/CanadianTitanium at
400kTpa
Selling at $20,000/t
Costing say $4,000/t
Gives revenue of ~$8Bpa
And profit circa $6.4Bpa
Lets work together to
make it happen

Summary
• Game changing process for producing advanced
materials
• Green technology applicable to huge markets
• Early commercial traction with Blue Chips
• Starting to scale-up for commercial production
• Comprehensive intellectual property position with 19 key
patents; extensive trade secrets; vast IP pipeline
• Opportunities relating to one third of periodic table
• Opportunity to get in now

Old vs New
OLD
• Traditional metrics have been
volume
• Millions of Tonnes @ $50/T
• Requires very high & inflexible
investment in land, capital &
people
• Very competitive and volatile
NEW
• Add on opportunity; high
value/very high margin metals.
Metric $’s, EBITDA, cash &
never mind the volume
• Relatively low capital per
revenue or EBITDA dollar
• Less cash inflexibility/lock in
• Less commodity orientation so
less competition/less volatility
If traditional mining company market has a market cap of $Xb
& an innovative mining cap creates at 10% premium..
What is this worth to your shareholders?

Invest in Intellectual Property and Land

Time to make change happen?
Conventional
Routes
FFC
Process?
1950’s2010

Mark Bertolini – CEO
+44 1709 872111
+44 7887 503937
mark.bertolini@metalysis.com

Refining titanium for industrial use

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