Renascor Resources (RNU) Investor Presentation summary

Project overview and strategy

• Developing a vertically integrated Battery Anode Material (BAM) project in South Australia, combining upstream graphite mining and downstream Purified Spherical Graphite (PSG) production for the lithium-ion battery sector.

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

• Project aims to become a leading global supplier of sustainable, 100% Australian-made battery anode material, with staged expansion plans for both concentrate and PSG production.

• All major regulatory approvals for upstream operations are in place, and the project is development-ready.

• BAM project aligns with Australia's National Battery Strategy and global efforts to secure ex-China battery supply chains.

Market dynamics and demand drivers

• EV and lithium-ion battery markets continue to grow, driving significant increases in graphite demand, especially for battery anodes.

• 96% of graphite demand is expected to be driven by the battery sector, with -100 mesh graphite demand forecast to grow ~680% by 2040.

• Natural graphite prices declined sharply in 2023 due to increased Chinese synthetic anode production, but stabilized in 2024.

• Chinese synthetic anode prices are unsustainably low and not replicable outside China, supporting long-term demand for natural graphite.

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

Project economics and funding

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

• Initial upstream investment of A$215 million, with a 4.5-year payback period.

• Projected OPEX for graphite concentrate is US$405/t and for PSG is US$1,782/t (years 1-10), among the lowest globally.

• Strong funding position with A$109 million cash and a conditional A$185 million loan facility from the Australian Government's Critical Minerals Facility.

• Actively negotiating offtake agreements and potential equity investments to support project financing.