Q1 2024 Lifezone Metals Ltd Earnings Call

Chris: We're able to do this at an economically driven value alternative to smelting. We bring the combined benefit of this is a cleaner process, this is a better economic process, but then there's a third strategic advantage in that we do this locally to empower local governments, local communities. These are the three pillars that really drive the value of partnering with Lifezone Metals in alternative to doing a dirty smelting process. Really, we remove smelting and we demonstrate more competitive economics, and we're empowering local people to benefit at the source of these metals, which is a critical part of how we view our partnerships, which we'll talk a little bit more as well going forward. This is something we're commercializing into not only mining, but also into the recycling space. We establish other growth sectors for us as a company. Okay.

We're able to do this in an economically driven value alternative to smelting.

So we bring the combined benefit of.

This is a cleaner process. This is a better economic process, but then there's a third strategic advantage in that we do this locally to empower our local governments local communities. So these are the three pillars that really drive the.

The value of partnering with a limestone metals and alternative to doing a dirty smelting process. So it's a really it's we remove smelting.

We demonstrate more competitive economics, and we're empowering local people to benefit at the source of these metals, which is a critical part of how we view our partnerships, which we'll talk a little bit more as well going forward and this is something we're commercializing into not only mining, but also into the recycling space. So we so we establish other growth sectors for us as a key.

Yeah.

Okay.

Chris: Okay, it's been a big year for us. Obviously, we debuted July of last year. Really for us, there's been a number of key milestones that we have set for management and for the team to deliver. We've been able to deliver on those milestones. One of the key things for us going forward is to continue to deliver. When you look at what we've done in a very short amount of time, we've been able to successfully list on the NYSE. We have updated our resource statement to enable us to go to a larger mine size. We've brought in new strategic partners demonstrating that the technological capability of Lifezone is applicable to other options throughout the industry.

And so it's been a big year for us It would be obviously, we debuted July of last year and really for US has been a number of key milestones that we've set for management and for the team to deliver and we've been able to deliver on those milestones and one of the key things for us going forward is to continue to deliver.

When you look at what we've done in a very short amount of time.

We've been able to successfully list on the NYSE, we have updated our resource statement to enable us to go to a larger mine size. We've brought in new strategic partners demonstrating that the technological capability of lifestyle and is applicable to other options.

About the industry.

Chris: We've demonstrated our partnership with the Tanzanian government has resulted in not only our additional mining license, but also the establishment of the Special Economic Zone, which is critically important. We've been endorsed by additional investors with a $50 million placement, which we'll go in a little bit more detail on. Obviously, with our inaugural annual report, we're on a very good track. We continue to focus on key milestones, but we've been able to deliver on time a lot of the key initiatives that we've embarked upon, that we've basically communicated that we're going to be focused on going forward. Okay. Just quickly to emphasize where we are, the Kabanga Nickel Project. The Kabanga Nickel Project, it's important to note that we are actually two projects. We are a mine as well as a refinery location in Tanzania, northwest Tanzania.

And we've demonstrated our partnership with the Tanzanian government has resulted in not only our additional mining license, but also these steps into the special economic zone, which is critically important.

Been endorsed by additional investors with a $50 million placement, which will go a little bit more detail on that.

And obviously with our inaugural annual report one of very contracts. So we continue to focus on key milestones, but we've been able to deliver on time a lot of the key initiatives that we've embarked upon to be basically communicated that we're going to focus on going forward.

Okay.

So just a just quickly episodes, where we are the Canadian nickel projects. So.

The <unk> project. It is important to note that we are actually two projects. So we are a mine as well as a refinery location in Tanzania, and northwest Tanzania, and this is really.

Chris: This is really empowering East Africa to be a new mineral supply chain. That's something that's getting a tremendous amount of support from governments around the world. This is a critical policy initiative for Tanzania. We are developing a project that's going to enable Tanzania to be at the forefront of the mineral supply chain in East Africa. This is enabled by a tremendous amount of infrastructure that's being laid down in Tanzania. Also when you look at the new sources of clean hydroelectric power that's come in, new standard gauge rail, there's a lot of enabling infrastructure that has been committed by the government of Tanzania to support this project. Really a collaborative partnership that's behind this entire unlocking of this new source of clean nickel and cobalt coming out of Tanzania. Okay.

Empowering East Africa to be a new mineral supply chain and that's that's something that's getting a tremendous amount of support from governments around the world. This is a critical policy initiatives for Tanzania. So we are developing a project that's going to enable tanzania to be at the forefront.

The mineral supply chain in East Africa, and this is enabled by a tremendous amount of infrastructure being laid down in Tanzania.

But then also when you look at the you know the the.

New sources of clean hydroelectric power Thats come in new standard gauge rail, there's a lot of enabling infrastructure that has been committed by the government of Tanzania.

To support this project so really a collaborative partnership that's behind this entire unlocking of this new source of clean nickel and cobalt coming out of Tanzania.

Okay.

Chris: Okay, I will turn it over here to our CFO, Ingo Hofmaier.

Okay, I will turn it over here to our CFO Ingo hoffmeyer.

Ingo Hofmaier: Thank you, Chris. Good morning and good afternoon. I'm going to provide you with an update on our Q1 highlights and recent fundraising activities. Later in the presentation, a summary of our unaudited financial results. With regards to Glencore, as announced in January, we closed the partnership with Glencore to undertake confirmatory pilot work and a feasibility study in our Simulus Laboratories in Perth, Australia. To that end, we received $1.5 million subscription proceeds from Glencore for a 6% stake in our US recycling subsidiary. Based on budget stands at $3 million, is fully funded and progressing well for an expected completion in Q3 this year. With regards to convertible, as announced late March, we closed the $50 million non-brokered private placement of unsecured convertible debentures to a group of North American investors, leaving us with a healthy cash balance.

Ingo Hoffmeyer: Thank you Chris Good morning, and good afternoon, I'm going to provide you with an update on our Q1 highlights.

Ingo Hoffmeyer: And Lisa fundraising activities plus later in the presentation, a summary of our unaudited financial results.

Ingo Hoffmeyer: With regards to Glencore as announced in January we closed the partnership with Glencore to undertake confirmatory pilot work and the feasibility study in our seamless labor quotas in Perth, Australia.

Ingo Hoffmeyer: And we received $1 $5 million subscription perceived some tanker four 6% stake in our Westwood Socgen subsidiary.

Ingo Hoffmeyer: Just on budget stands at $3 million is fully funded and Bucharest matter for an expected completion in Q3 this year.

Ingo Hoffmeyer: With regards to the convertible as announced late March with close to $50 million Nonpareil cuts private placement of unsecured convertible debentures to coupe of North American investors, leaving us with a healthy cash balance.

Ingo Hofmaier: I will speak more about our financial results towards the end of the presentation, and Chris will speak about the Safari Link drilling, a key Q1 highlight providing further evidence of the attractiveness and additional potential of Kabanga as a high-grade and large ore body unmatched among nickel production companies. Next page, please. The nickel industry was struggling with structural changes in 2023 and early 2024, leading to a reduction in earnings and valuations. We are therefore pleased to have concluded a relatively substantial fundraise with a group of marquee investors. Four-year notes and our ability to pay interest in cash, PIK, and shares provides us with flexibility. The coupon stands at SOFR, currently around 5.3%, payable quarterly with a SOFR floor of 3%. The first interest payment date will be 30 June.

Ingo Hoffmeyer: I will speak more about our financial results towards the end of the presentation and placement speak about the Sofia drilling a key Q1 highlights providing further evidence of the effectiveness and additional potential of Katanga has the highest weight of logical I believe unmatched among reproduction companies.

Page <unk>.

Ingo Hoffmeyer: Yeah, Nick this live ascribing the structural changes in 2023 in early 2024, leading to a reduction in earnings and valuations.

And we are therefore pleased to have concluded.

Ingo Hoffmeyer: Given the substantial fund plays with the group of marquee investors.

Ingo Hoffmeyer: A four year notes and our ability to pay interest in cash pick N shares provides us with flexibility.

Ingo Hoffmeyer: <unk> stands at Sofar currently around five 3% favorite quarterly with a sulfur floor of 3%. The first interest payment date will be June 30th.

Ingo Hofmaier: The holders of the converts can convert at $8 per share, and the company can buy back the convert. Enforced conversion if the share price is 50% above the $8 exercise price. In terms of net proceeds, we agreed an issue discount of 1.5%. Important for the Q1 figures, we had only one trading and bank day left post-closing, and therefore, we didn't receive all the funds. We received the net proceeds from one investor amounting $4.9 million on 1 April, and therefore, not included in the Q1 cash balance. With this, I hand back to Chris.

Ingo Hoffmeyer: The holders of the Congress can converted $8 per share and the company can buyback the Congress and force conversion, if the share price blades, 50% above the $8 exercise price.

Ingo Hoffmeyer: In terms of net proceeds we include an issue discount of 1.5% and important for the Q1 figures we had only one trading in banks. They left post closing and therefore, we didn't receive all the funds you can see the net proceeds from one investor amounting to $4 9 billion on first of April and therefore not <unk>.

Ingo Hoffmeyer: We live in the Q1 cash balance.

With this I hand basically.

Chris: Okay. Thank you, Ingo. One of the things that really is of paramount importance to our team and really the company is delivering the definitive feasibility study on time and on budget. What I'm happy to convey today on this call is that we continue to be on track for an end of Q3 completion date. The enormity of work that's gone into this process has resulted in really what we've done is we've looked at a larger mine size, which we announced several months ago. That is driven by really the exceptional ore body, and I'll show on the next slide. Currently right now, we have a two-phase development plan, 1.7 million ton per annum phase 1, with what we're looking at is potentially an accelerated phase 2 ramp up of 1.7. A total combined of 3.4 million ton per annum operation.

Thank you Inger.

Ingo Hoffmeyer:

Speaker Change: So one of the things that really is a paramount importance to our team and really.

Speaker Change: The company is delivering the definitive feasibility study on.

Speaker Change: On time and on budget and so what I'm happy to convey today on this call is that we continue to be on track for end of Q3 completion date and the enormity of work that's gone into this process has resulted in.

Speaker Change: Really what we've done is we've looked at a larger mine site, which we announced.

Speaker Change: Months ago, but.

That is driven by really the exceptional ore body and I'll show on the next slide but currently right now we have a two phase development plan $1 7 million ton per annum phase one with what we're looking at is potentially an accelerated phase two ramp up of $1 seven so a total combined.

Speaker Change: 4 million ton per annum operation.

Chris: What I would say about the feasibility study is this is a highly collaborative process with our partners in BHP, who are intimately involved in all aspects of the DFS with us, as well as our independent engineering firm, DRA. Really the amount of teamwork going into this project is exceptional. Congrats to everyone who's been involved in this, keeping this on time, and look forward to a very positive conclusion. We've been very encouraged by the results to date, which we'll be announcing obviously at the conclusion and end of Q3. As part of our focus, really sustainability has been a driving factor.

Speaker Change: And what I would say about the feasibility study is this is this is a highly collaborative process with our partners and PHP, who are intimately involved in all aspects of the DFS with us as well as our independent engineering firm DRA.

Speaker Change: So really the amount of teamwork going into this project as exceptional so congrats to everyone who's been involved in this keeping this on time and look forward to a very positive conclusion, and we've been very very encouraged by by the results today, which will be in.

Speaker Change: Announcing obviously the conclusions and ended Q3.

Speaker Change: The next.

Speaker Change:

Speaker Change: As part of our our focus really sustainability has been a driving factor in and I've been I have to say I've been unbelievably impressed it not only into the standard we've committed to but also the standards that BHP has supported us and applying to the project I'm really across all aspects of the operations on the ground.

Chris: I have to say, I've been unbelievably impressed at not only the standard we've committed to, but also the standards that BHP has supported us in applying to the project, really across all aspects of the operations on the ground. This has really driven us to lead in with a sustainability-driven philosophy. An enormous amount of work has gone into supporting the local community, communicating, having a very collaborative approach, and the benefits that will accrue to the local population. It's been really rewarding being part of this project, seeing the excitement, the support, both from the local communities all the way up through to senior government. It's something that will continue to be a driving initiative for us going forward. Okay, next. Okay, we mentioned a little bit earlier, one of the things we focused on was increasing some of the infill drilling.

Speaker Change: And this is really driven us to to lead in.

Speaker Change: With a sustainably sustainability, driven philosophy and an enormous amount of work has gone into supporting the local community.

Speaker Change: Communicating having a very collaborative approach.

Speaker Change: And the benefits that will accrue to the local population.

Speaker Change: It's been really rewarding being part of this project seeing the excitement the support both from the local communities all the way up through to senior government.

Speaker Change: And it's something that it will continue to be a driving.

Speaker Change: Initiative for us going forward.

Speaker Change: Okay next.

Speaker Change: We met we mentioned a little bit earlier, one of the things we focused on was.

Speaker Change: Increasing some of the infill drilling and with Quebec.

Chris: With Kabanga, this is really a multi-generational project. We have two very defined resource bodies in North and Tembo Zone that will be driving the initial production for the operation. What we've done over the past year is demonstrate some of the upside potential. The Safari Zone on the right, what we've done is we've done some initial drilling to establish that this is a contiguous continuation of the Tembo Zone. Also what we have identified as well is several potential target sites within our SML. Not only is this an incredibly well-established ore body that can match the 3.4 target production rate, there are other additional ore bodies on just the Special Mining License that will feed into a much longer life mine we anticipate in the future. Okay, next.

Speaker Change: This is really a multi generational project.

Speaker Change: We have two very.

Speaker Change: Find resource bodies and in North and Tembo, there will be driving the initial production for the operation, but what we've done over the past last year as demonstrates some of the upside potential. So the Safari zone on the right. What we've done is we've done some initial.

Speaker Change: Drilling to establish this as a contiguous continuation of the timber zone, but also what we have identified as well as several potential.

Speaker Change: Target sites within our S amounts. So so not only is this an incredibly well established ore body that can match. The 3.4 target production rates. There are other additional ore bodies on just the special mining license that will feed into a much longer.

Speaker Change: Life mine, we anticipate in the future.

Speaker Change: The next.

Chris: What we have here are some visual representations of some of the engineering design work that's come out, and I think what I'd like to do is congratulate the technical teams that have been working on this. I think having been to Perth over the past month, seeing the integration of Simulus engineers who we acquired last year, and seeing that team fully integrated with our team at Lifezone, I think that really demonstrates the power of what we've been able to put together in terms of some of the best, brightest people in the industry on the hydrometallurgical side. Seeing the delivery, and the recoveries we've had, even on some of the initial pressure leach extractions, we've had 98.5% for nickel we announced on some of the initial test results, and even 98.9% for cobalt. Really hitting on all the key milestones in the study.

Speaker Change: So what we have here some visits visual representation of some of the engineering design work, that's come out and I think what I'd like to do is to congratulate.

Technical teams have been working on this.

Speaker Change: I think having been the Perth over the past months seeing the integration of stimulus engineers, who we acquired last year and seeing that team fully.

Speaker Change: Integrated with our team at lifestyle.

That really demonstrates the power of what we'd be able to put together in terms of some of the best brightest people in the industry and the hydro metallurgical side and so seeing the delivery.

Speaker Change: And the the recoveries we've had.

Even on some of the initial press release distractions, we've had 98, 5% for nickel, we announced on some of the initial test results and even 98, 9% for cobalt. So so really hitting on all the key milestones in the study and I think this is a result of pulling together some of the teams that we had into one.

Chris: I think this is a result of pulling together some of the teams that we had into one collaborative effort is really demonstrating an amazing amount of productivity. Okay, next. I'll absolutely always emphasize the sincere partnership we have with the Tanzanian government. They continue to deliver on their side of the project. I was in Tanzania last month receiving our refinery license. They have gazetted the Special Economic Zone. They have pulled the regional power line into camp. To bring that 33-kilowatt power line into the campsite is something that they endeavored to do and have done on their own. That's a tremendous demonstration. It's a small thing, but I can tell you in a project of this magnitude, having connected power on site, the support that's provided to us from the government is a dramatic statement for the partnership. Next.

Speaker Change: Collaborative effort is really demonstrating an amazing amount of productivity.

Speaker Change: And next.

Speaker Change: Well, absolutely always emphasized.

Speaker Change: The sincere partnership we have with Tanzanian government they continue to deliver on their side.

Speaker Change: The project I was in Tanzania last month, receiving our refinery license. They have presented the special economic zone they have pulled.

Speaker Change: The regional power line into camp so really.

Speaker Change: So to bring that 33 kilowatt power line into the camp site is something that they they endeavor to do and have done on their on their own and that's a tremendous demonstration. It's a small thing, but I can tell you in the.

Speaker Change: Project of this magnitude having a connected power on site.

Speaker Change: To support that is provided to us from the government as a as a.

Speaker Change: Dramatic.

Speaker Change: Statement for.

Speaker Change: For the partnership.

Chris: I'll turn it back over to Ingo to talk here.

Speaker Change: So I'll turn it back over to Ingo.

Speaker Change: Soccer.

Ingo Hofmaier: Thank you, Chris. At the outset, I would like to mention that as a foreign private issuer, we are not required by the SEC to provide quarterly financial reports. Our next set of financials will be unaudited H1 statements as of 30 June. Nonetheless, we want to continue with this practice of operational and financial summary results and webinars on a quarterly basis. That means for the June and then for the September before we get to the year-end, 31 December. At the end of Q1, Lifezone Metals had a cash balance of $79.6 million, up $30.2 million. As I mentioned before, that reflects the proceeds of $44.3 million out of the $50 million convertible debentures, plus the $1.5 million from Glencore. We are funding the other parts, the other 50% to the $3 million budget.

Ingo Hoffmeyer: Thank you Chris.

Ingo Hoffmeyer: At the outset, I would like to mention that as a foreign private issuer. We are not required by the SEC to provide quarterly financial reports, our next set of financial financials will be unloaded at half year.

Statements as of June 30th.

Ingo Hoffmeyer: And last we want to continue with display.

Ingo Hoffmeyer: Of operational and financial summary, besides and leaving us on a quarterly basis. So that means for the tool and then for the September before we get to the year end after.

Ingo Hoffmeyer: For the first of December.

Ingo Hoffmeyer: At the end of Q1 left some metals had a cash balance of $79 6 million.

Ingo Hoffmeyer: Up $30 2 million as I mentioned before it reflects the proceeds of $44 3 million out of the $50 million.

Ingo Hoffmeyer: The debentures.

Ingo Hoffmeyer: Last month, one 5 million from a claim we are funding the other part the other 50% with a $3 million.

Ingo Hoffmeyer: Richard.

Ingo Hoffmeyer:

Ingo Hofmaier: In terms of spending for operational and investing cash flows, our more conservative approach led to cash outflows of $15.4 million, with $11.7 million gone to Kabanga, where really our focus is. We completed a group-wide program of rightsizing, which, again, included a reduction of 29% of our workforce, including contractors, and in-housing of critical work streams earlier done by consultants. Ensuring the effective allocation of capital to the most critical work streams meant that we stopped exploration drilling and deferred various CapEx items like, for instance, the construction of the ESP at Kabanga, which is fully permitted. The focus at the moment of the cash outflows, and this will continue until Q3, is, of course, the delivery of the feasibility study.

Ingo Hoffmeyer: In terms of.

Ingo Hoffmeyer: Spending for operational and investing cash flows a more conservative approach.

Ingo Hoffmeyer: The cash outflows of $15 4 million with $11 7 million gone two cabana really our focus is.

The completed a group wide Gordon Mcguire sizing, which are accountable included the reduction of 29% of our workforce, including conflict.

Ingo Hoffmeyer: And in housing of critical work streams earlier done by our consultants.

Ensuring the effective allocation of capital to the most critical work streams meant that we stopped exploration cooling and deferred various capex items like for instance, the construction of the estimate at Katanga.

Ingo Hoffmeyer: Which is fully permitted.

Ingo Hoffmeyer: The focus at the moment of the cash outflows and this will continue until Q3 is of course to deliberately off the feasibility study we had a net loss of $4 million basic and diluted loss being the same.

Ingo Hofmaier: We had a net loss of $4 million, basic and diluted loss being the same, because it was a loss of $0.05, with a comparison of $0.10 the quarter the year before. For more information, please go to our 6-K, wherein the summary of the P&L, breakdown of G&A expenses, and cash flow statement. Thank you. That's it from my side. Back over to Chris.

Ingo Hoffmeyer: Because it was a loss of 0.5.

Ingo Hoffmeyer: With a comparison of 10 cents.

Ingo Hoffmeyer: The quarter the year before.

Speaker Change: For more information. Please go to our 6K and the summary of the P&L. Thanks.

Speaker Change: Based on of G&A expenses, and our cash flow statement. Thank.

Speaker Change: Thank you.

Speaker Change: That's it from my side, a big order Chris.

Chris: Great. Thanks, Ingo. Just to conclude, really where we are as management, we are absolutely focused on our key milestones. Really that is the number one. We are fully engaged in a process that we announced publicly where we are looking to negotiate an offtake agreement, and that is still expected mid-2024. We are on target. We are in final negotiations with a short list, that is on track, that is a process we're very excited, we will be announcing in the near term. Number two, the DFS, as we articulated, on time to be concluded by end of Q3 2024. This is the absolute focus of our teams in collaboration with BHP and DRA. That is really the trigger to start the process with BHP and their ability to come in on their additional investment option process.

Chris: Okay. Thanks Inger.

Chris: So just to conclude so really.

Chris: Where we are as management, we are absolutely focused on our key milestones.

Chris: And so really that is the.

Chris: Number one we.

Chris: We are fully engaged.

Chris: And our process that we announced publically, where we are looking to negotiate an off take agreement and that is still expected mid 2020 for us. So we are on target we are in final.

Chris: Negotiations with a shortlist and so that is on track and that is up.

Chris: A process, where we're very excited and we will be announcing.

Chris: In the near term.

Chris: Number two the <unk>.

Chris: DSS as we articulated on time to be concluded by the end of Q3 2024. This is the absolute focus of our teams.

Chris: In collaboration with BHP and DRA and so.

Chris: That is the really the trigger to start the process with BHP.

Chris: And.

Chris: Their ability to come in on their additional investment.

Chris: That's really coming to a head towards end of Q3. In parallel to that, the teams are busy on the PGM recycling project with Glencore, which is also expected to come into FID around Q3 2024. Really these two core projects are getting the bulk of the team's time and focus as well as management. This is really a demonstration of where we're going to be directionally going as a company. Demonstrating the commercialization of our capability with two of the top five mining companies in the world is really just a start for us. The pipeline of projects we have going forward in the back of this year, very exciting.

Option process. So so that's really coming to a head towards end of Q3.

Chris: And then in parallel to that the teams are busy on the PGM recycling project with Glencore, which is also expected to come into.

Chris: Around Q3 2024, so it's really these two core.

Chris: Projects are getting the bulk of the team's time and focus as well as management and this is really a demonstration of where we're going to be directionally going as a company. So demonstrating the commercialization of our capability with two of the top five mining companies in the World is it really just to start for us and so the pipeline of projects, we have going for in the back of this.

Chris: Pierre <unk>.

Chris: Very exciting are really happy to see the technical teams and their capability to produce these two projects and it's really a sign of things to come in terms of what we're going to be delivering to the market for clean processing solutions going forward.

Chris: Really happy to see the technical teams and their capability to produce these two projects, and it's really a sign of things to come in terms of what we're going to be delivering to the market for clean processing solutions going forward. With that, I'll thank everyone for their time, and I will turn it back over to Evan in case we have any Q&A to follow up with.

Chris: So with that I'll, thank everyone for their time and I'll turn it back over to Evan in case, we have.

Evan: Any Q&A to follow up with.

Evan Young: Thank you, Chris and Ingo. As a reminder, if you have a question, please indicate your interest in the Q&A box located at the top of your screen.

Evan: Thank you, Chris and NGO and as a reminder, if you have a question. Please indicate.

Evan: Your interest in the Q&A box located at the top of your screen. When prompted your line will become active and please remember to on mute yourself.

Chris: Thank you.

Evan Young: Okay. First question that has been written in. It relates to BHP, and have their challenges in Western Australia had any impact on your relationship with them?

Evan: Okay. Our first question that has been.

Evan: And then.

Evan: As it relates to the BHP and have their challenges in Western Australia had any impact on your relationship with them.

Evan: Mhm.

Chris: Of course. Thanks for the question. This is a question we get quite a bit. I think what we have seen from BHP is really a continuation of their public comments, which is, number 1, a commitment to future facing metals, of which nickel is one. They have consistently committed to the process they are in with us and the government of Tanzania to conclude the DFS. As far as we're concerned, nothing has changed. We continue to work with BHP in an incredibly collaborative, goal-oriented process to get to the DFS and get that done to AusIMM standards. They can commence the process of their next investment options.

Speaker Change: Of course, thanks for the question.

This is a question we get quite a bit I.

Speaker Change: I think what we have seen from from BHP is really a continuation of their public comments, which is number one a commitment to future facing metals of which nickel was one they have consistently committed to the process, they're in with us and the government of Tanzania.

Speaker Change: To conclude the DFS so as far as we're concerned nothing has changed we continue to work with BHP in an incredibly collaborative.

Speaker Change: Goal oriented process to get to the DFS and get that done to ours aiman standards.

Speaker Change: So they can commence the process of.

Speaker Change: They are in their next investment options. So so really nothing nothing has changed in terms of our.

Chris: Really nothing has changed in terms of our relationship with BHP and what they've communicated to both us and the government of Tanzania and said publicly that this is a operational specific assessment they're going through, and that really does not affect us right now in terms of the Lifezone Kabanga Project. If anything, we continue to work at a very intensely collaborative pace and that's actually increasing as we get closer to the conclusion. Very happy with the relationship with BHP and we've had a tremendous chemistry with them so far.

Speaker Change: Our relationship with BHP, and what they've communicated to both us and the government of Tanzania and said publicly that this is a.

Speaker Change: A operational specific assessment theyre going through.

Speaker Change: And that really does not affect us.

Speaker Change: Right now in terms of the a limestone keybank a project so.

Speaker Change: And if anything we continue to work at a very intensely collab.

Speaker Change: Collaborative pace and that's actually increasing as we get closer to the conclusion, so very happy with the relationship with BHP are named Bob maybe without a tremendous chemistry with them so far.

Evan Young: Thanks, Chris. Looks like we have a question from Ben Davis at Liberum. Ben, your line will be open if you can please unmute.

Speaker Change: Thanks, Chris It looks like we have a question from Ben Davis at Liberum, Ben Your line will be open if you can please on mute.

Ben Davis: Perfect. Can you hear me?

Ben Davis: Perfect Okay.

Ben Davis: Danny.

Evan Young: Loud and clear.

Ben Davis: Great. Thanks, guys for the presentation. Just a couple of questions from me. Firstly, on the cash balance that you finished with, also plus the additional proceeds post quarter end, is there any earmarked specifically for Kabanga or for PGM recycling or that can be used for general usage? Is there any way that we should be thinking about how that's carved up? Secondly, given where we are in the cycle in platinum mining, where people are kind of cost cutting, do you see more opportunity on the recycling side? You've got, obviously the relationship with Glencore, or do you still think that there's a chance to see a combination with a mining entity? Thanks.

Speaker Change: Loud and clear.

Ben Davis: Great. Thanks, Thanks, guys for the presentation just a couple of questions for me firstly on the cash balance that you. You are finished with the OCI plus the additional proceeds post acute rent what exactly how it is that any came out specifically for <unk> or for PGM recycling of where that can be used for general.

Ben Davis: Usage is there any way that we should be thinking about how that that's comped up and then secondly, a given where we are in the cycle in a platinum mining.

Ben Davis: Where people that kind of cost cutting it do you see more opportunity on the recycling side, you've got obviously the relationship with tank or would you still think that there's a chance to see a combination with it with the mining etsy. Thanks.

Chris: Yeah, thanks, Ben. I'll take the second question, maybe I'll give Ingo a chance to answer the first one. On the recycling project with Glencore, I think really this is an opportunity where we see the ability to demonstrate with Glencore that this is not just a small one-time project. If anything, this is a scalable opportunity for us that we see the first plant being placed in North America as being one of a number of plants that we can strategically place to capture market share in the PGM space. I think that where we are in the cycle right now with PGMs, I think it's a exceptional point for us to be getting in, given the weakness and given some of the challenges in the market.

Ben Davis: Mhm.

Speaker Change: Thanks, Ben I'll take the second question, maybe I'll have giving.

Speaker Change: Giving you a chance to answer the first one on the on the recycling project with Glencore I think really this is this is something that.

Speaker Change: This was an opportunity where we see the opportunity the ability to demonstrate with Glencore that this is not just.

Speaker Change: Small onetime project if anything this is a scalable.

An opportunity for us that we see the first plant being placed in North America as being one of.

Speaker Change: A number of plants that we can strategically place to capture market share in the PGM space I think that where we are in the cycle right now with Pjm's I think its acceptable point for us to be getting again, given the weakness in given some of the.

Chris: In terms of getting in kind of at the bottom of the cycle, I think for us it's the right time. It's a demonstration of us getting into recycling, but this is just the beginning. This is something that on the R&D side, we'll be looking at a number of other types of projects and we continue to be doing so in our labs in Perth. I would say this is just recycling. The pipeline of interest we have from other mining companies is quite robust. We are absolutely focused on the two core priority projects, being Kabanga and then the AutoCat with Glencore. The amount of interest we're seeing from other mining companies wanting clean processing solutions to replace smelting, that's going to be the future of our activity going forward.

Speaker Change: Challenges in the market. So in terms of getting in the Parliament the cycle I think for us it's.

Speaker Change: It's the right time, so it's it's a demonstration of us getting into recycling, but this is just the beginning and this is something that on the R&D side, we'll be looking at a number of other types of projects and we continue to be doing so in our in our labs in Perth.

And I would say this is.

Speaker Change: In addition to recycling the pipeline of interest we have from other mining companies is quite robust. So we are absolutely focused on the two core priority projects being Cabana and then the auto cast of Glencore, but the amount of interest we're seeing from other mining companies wanting clean processing solutions to replace smelting.

Speaker Change:

Speaker Change: It's really that that's going be the future of our activity going forward. So we continue to do initial work with a number of companies.

Chris: We continue to do initial work with a number of companies, and we will continue to do so. Ingo?

Speaker Change: And we will continue to do so.

Speaker Change: Hum.

Ingo Hofmaier: I think you have also given half the answer in terms of uses of funds. Technically there is, as it is top co-investment, it includes administrative and overhead expenses, but the focus is on our two key projects and within the two of us, the lion's share of the funds goes to Kabanga. There's no restriction as such. Thank you.

Speaker Change: Yeah, I think you have also given half the answer in terms of uses of funds. So technically days as it is top co investment.

Speaker Change: It includes it.

Speaker Change: Administrative and overhead expenses, but the focus is in our two.

Speaker Change: Key projects and within the two what was the lion's share of the funds close to <unk>, but there's no restriction as such.

Ben Davis: Well done.

Speaker Change: Thank you Robert.

Evan Young: Okay. For our next questions, we'll go to Greg Lewis at BTIG. Greg, your line will be open. Please unmute yourself.

Speaker Change: Okay for our next questions. We'll go to Greg Lewis at P. T. I G. Greg you will be.

Greg Lewis: Your line will be opened please on mute yourself.

Greg Lewis: Okay.

Greg Lewis: Hello? Oh, man.

Greg Lewis: Hello.

Evan Young: Hi, Greg. We can hear you.

Chris: Greg.

Greg Lewis: Hi, Greg we can hear you are correct.

Greg Lewis: You can?

Greg Lewis: You can't get you can.

Evan Young: Yes, sir.

Chris: Yep.

Greg Lewis: Okay. Great.

Chris: Go ahead.

Greg Lewis: Yes, Sir Okay, Okay, Great Hey, guys. Thanks, Thanks for taking my call.

Greg Lewis: Hey. Hey, guys. Thanks for taking my call. Just as we think about the opportunity with the PGM, where we are in the process, could you maybe talk a little bit about just, I guess this is, we're already in mid Q2. This is expected. I guess in the next few months, as we think about the growth there, how far along beyond being up and running, do we need to think about before we can kind of start rolling this out more broadly? Whether that's with Glencore or others abroad. Is this kind of like a chicken and egg where it's going to be up and running, but then there's going to be this incubation period, or could we actually see this maybe grow a little bit faster, quicker?

Greg Lewis: Just as we think about the opportunity with the PGM you know where we are in the process could you maybe talk a little bit about you know.

Greg Lewis: I guess this is I mean, we're and Marty.

Q2 this is expected.

Greg Lewis: I guess in the next few months.

Greg Lewis:

Greg Lewis: And as we think about the growth there.

Speaker Change: How far along beyond being up and running do we need to think about before we can kind of start rolling. This out you know more broadly yen and whether that's with claim core or are others abroad is this kind of like a chicken and egg where we you know it's going to be up and running but then there's going to be this incubate.

Speaker Change: <unk> period are we.

Speaker Change: We actually see this maybe.

Speaker Change: Grow little bit faster quicker.

Speaker Change: Quaker.

Chris: Thanks, Greg. I think, really importantly for us and the way I think about this specifically is we are really commercializing two flagship projects, those are going to be the catalyst for us to then go into a much more aggressive scale up of our capability across a number of other projects. Really this is us getting into the game. I think we're privileged to be doing that with the highest possible pedigree partners. I think directly to your question, I would, especially on the AutoCat, see us in a position to scale quite aggressively. These are small plants that can be replicated. There's an ability for us to commission a number of plants on the back end of a successful first plant running.

Speaker Change: Yeah. Thanks, Greg I think a really importantly for us and the way I think about this specifically.

Speaker Change: As we are really commercializing two flagship projects and there's going to be the catalyst for us to then go into a much more aggressive.

Speaker Change: Scale up of our capability across a number of other projects. So really this is us getting in to get into the game I think we're privileged to be doing that with the highest possible pedigree partners, but I think directly to your question.

Speaker Change: I would especially on the auto cats see us in a position to scale quite aggressively.

Speaker Change: These are small plants that can be.

Speaker Change: Replicated.

Speaker Change: And in the end there's a.

Speaker Change: There is an ability for us to to commission a number of plants on the back end of a successful first time running that'll be dictated by really discussions with with our partner partners of Glencore.

Chris: That'll be dictated by really discussions with our partners at Glencore identifying additional geographic target locations and really getting that first plant operational, getting that optimized, successfully delivering clean process metals from that first plant. That will really drive what I would expect would be a pretty aggressive growth of additional plants being commissioned on the back end. I would have quite bold expectations in terms of a scale-up strategy on the back of that first plant.

Speaker Change: Identifying additional geographic target locations and really getting in getting that first plant operational getting that optimized successfully delivering clean process metals from that first plant.

Speaker Change: That will that will really drive what I would expect would be a a pretty aggressive.

Growth of additional plants being commissioned on the backend. So so I would be I would.

Speaker Change: [noise] have quite bold expectations in terms of a.

Speaker Change: On a scale up strategy on the back of that first plant.

Ingo Hofmaier: Greg, in addition to this, just on the very core of your question with regards to timeline, phase I includes a feasibility study, and part of the feasibility study is, of course, to understand the input costs in the US for a specific site. Even though most of the activities are happening in Perth, of course, we are already in the process. Chris has been visiting with some of our partners as well as with our own team sites to find the perfect site in the US for the first auto catalyst recycling refinery. Once we have phase I done, it should include a feasibility study that is execution ready. Phase II, which is the execution, is already agreed how it's being funded between us and Glencore. We still have to put the fine print in place, but the broad strokes are there.

Speaker Change: And Greg in addition to this just in the very core of your question with blood gas. The timeline phase. One includes a feasibility study and part of the event visibility study is of course to understand the input costs in the U S or specific sites, but even given that most of the activities.

Speaker Change: Happening in Perth of course, we are all in <unk> and the polls as cliff has been visiting with some of our partners as well as.

Speaker Change: With our own team sites and to find the perfect type in the U S for the first.

Speaker Change: Altogether recycling refinery and so once we have phase one done and should include a feasibility study that is execution of any in phase two which is the execution is already read how it's being funded between us and claim quickly we still have to put the Franklin in place of the broad slots in there so that will be built.

Ingo Hofmaier: We will commercially advance this as we advance the technical feasibility study. Ideally, we then are close to execution when the feasibility study comes out. There's a really clear timeline here.

Speaker Change: <unk> advanced this as we advance the technical feasibility study so ideally be then.

Speaker Change: Most of the execution when the feasibility study comes out so there's willing.

Speaker Change: A clear timeline here.

Chris: Yeah. I'd say one additional comment there is we have the technical expertise to understand the processing of PGMs and being able to recover those metals. Also the market dynamics in the recycling space and then also the catalytic converter market. We've brought in Justin Froneman, who has an incredible amount of experience in the North American recycling market, in the PGM market. Really, bringing Justin in has been really that perfect complementary piece. We're pretty excited to crack into the market, and that's something we're really on the verge of doing, which is very exciting.

Speaker Change: Yeah, I'd say orders. So comment there is we we have the technical expertise to understand the processing of pjm's and being able to recover those metals.

Speaker Change: But also the market dynamics in the recycling space and then also the catalytic converter market.

Speaker Change: We brought in just in front of men, who who has an incredible amount of XP.

Speaker Change: Experience.

Speaker Change: And there are north American recycling market in the PGM market and so to really bringing Justin and has been really that perfect complementary piece.

Speaker Change: And so we're pretty excited to crack into the market and that's something where we're really on the verge of doing which is a which is very exciting.

Speaker Change: Okay.

Evan Young: Okay, for our next question, we'll go to Mike Niehuser from ROTH MKM. Mike, you'll be unmuted. Please go ahead. Mike, you might be muted on your own end. Yes. If you please unmute. What are the use of funds with the monetization of the offtake agreement?

Speaker Change: Okay for our next question will go to like the user from Roth M. K M.

Speaker Change: Mike you'll be muted. Please go ahead.

Speaker Change: Okay.

Mike: Mike I did not.

I can imagine muted on euro and yen.

Mike: Presenting.

Mike: What are the <unk>.

Mike: With the monetization of the Opco.

Mike: Okay.

Chris: Yep. No, I heard you, Mike. In terms of the offtake agreement, we're, as I indicated, in some pretty advanced negotiations. Any additional funding from the monetization of an offtake agreement will give us two things. Number one, it'll give us the ability to assess any potential additional pre-development work or pull forward any timelines on the Kabanga project that would add value really to Lifezone and the project timeline. That's going to be something we can assess at that point in time, and specifically once we see the feasibility study get close to a conclusion. Secondly, this will give us additional ability to look at other pipeline projects. That's something, the optionality to have that and do additional R&D work, look at additional projects, is something that, absolutely, we'll have the ability to assess at that point in time.

Speaker Change: Yeah, No I heard you Mike.

Speaker Change: So I think so in terms of the offtake agreement. So we're as I indicated in some pretty advanced negotiations.

Speaker Change: Any additional funding from the.

Speaker Change: The monetization of an off take agreement give us two things number one it will give us the ability to assess any potential additional pre development work or pull forward any timeline on the <unk> projects.

Speaker Change: That would add value to brilinta lifestyle and the project timelines. So that's something we can assess at that point in time and specifically once we see the the.

Speaker Change: The feasibility study costs for conclusion, secondly, this will give us.

Speaker Change: Additional ability to look at other pipeline projects and so that's something.

Speaker Change: The optionality to have that and do additional R&D work look at additional projects is something that.

Speaker Change: Yeah, absolutely we will have the ability to to assess at that point in time, but the.

Chris: The bulk of a lot of the funds will continue to be allocated and focused on ensuring that the Kabanga project is delivered on time and on the schedule that we're finalizing with the engineers and with BHP.

Speaker Change: The bulk of a lot of the funds will continue to be.

Speaker Change: Allocated and focused on ensuring that the Keybank a project is delivered.

Speaker Change: On time on the schedule that we're finalizing with the engineers and with BHP.

Evan Young: Okay, great. I think we've pretty much covered all the questions today. We'll wrap up the webcast. Just a quick reminder, if you do have any outstanding questions, please feel free to follow up with me directly. My email is evan.young@lifezonemetals.com, and I'd be happy to answer that question offline. This concludes the webcast. I'd like to thank everyone for attending today's event, and we look forward to speaking with you soon on the many exciting milestones coming up this year. Thank you for your time.

Speaker Change: Okay great.

Speaker Change: And I think we've pretty much covered all the questions today, So I will wrap up the webcast just.

Just a quick reminder, if you do have any outstanding questions. Pete Please feel free to follow up with me directly My E. Mail is Evan dot young at lifestyle metals Dot com and I'd be happy to answer that question offline.

Speaker Change: But this concludes the webcast I'd like to thank everyone for attending today's event and we look forward to speaking with you soon on the many exciting milestones coming up this year. Thank you for your time.

Chris: Thank you, everyone.

Ingo Hofmaier: Thank you very much.

Speaker Change: Thank you everyone. Thank you very much.

Evan Young: Of course.

Speaker Change: Yeah.