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Metalysis
16th Annual Mineral Sands Conference, Melbourne
March 2016
Dr. Kartik Rao - Director of Business Development
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Disclaimer
This presentation includes certain projections and forward-looking statements provided by the Company with respect to the anticipated future performance of the Company. Such projections and forward-looking statements reflect various assumptions and expectations of management concerning the future performance of the Company, and are subject to significant business, economic, political and competitive uncertainties and contingencies, many of which are beyond the Company’s control. Accordingly, there can be no assurance that such projections and forward-looking statements will be realised. The actual results may vary from the anticipated results, and such variations may be material. Each forward-looking statement or projection speaks only as of the date of that particular statement or projection. The Company, and its directors, officers and employees, make no representation or warranty in relation to whether such projections or forward-looking statements are achieved or realised and accept no responsibility and disclaim all liability in respect of the same.
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• Technology applicable, and practically proven, for a large number of elements across the periodic table
• Initial focus on Titanium and Tantalum, with a strong emphasis on Additive Manufacturing applications
• Small scale industrial production of Tantalum powder, and well-developed plans for installing titanium focused facility.
• Existing partnerships in the aerospace and automotive markets
• Proprietary, low-emission / low-cost process to produce a wide array of metal powders and novel alloys direct from natural and refined oxides (e.g. rutile sands)
• Based on University of Cambridge research, protected by 31 international patents
• Completing the value chain from ore to titanium powder at the lowest ‘all in’ cost
• Monetisation through licensing agreements
• Strategic partnerships to drive licensing pipeline
Multiple addressable
markets
Commercial Progress
Disruptive Technology
Business model
Executive Summary
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Shareholders
www.bhpbilliton.com
www.etf.eu.com
www.sevenspires.co.uk www.chordcapital.co.uk
www.djespirit.com
www.iluka.com https://woodfordfunds.com/
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Simple, Cost-effective, Greener Process
• Electrolytic process: highly efficient, proven and utilised extensively in metallurgy (Al, Mg).
• Relatively low temperature operation and lower energy consumption.
• Inexpensive components for electrolysis , cheap, and readily available: metal oxide cathode, graphite anode and molten salt.
• No toxic gases used: only by-product is CO/CO2.
• Powder feed to powder product: pre-alloyed or direct ore feedstock may be used directly.
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Metalysis spherical titanium powder
automotive turbocharger component
aerospace turbine guide vane SEM cross sectional
microstructure (guide vane)
Additive Manufacturing
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There is significant further value upside (above Titanium and Tantalum) with significant barriers to entry
31 live, published families of patents originally based on the FFC® approach
Patents covers multiple aspects of the process from:
Feedstock and oxide preparation
Reduction parameters
Cell design
Post processing
Bespoke ancillary services
Extensive know-how from c 500 man-years of work
Core patent has been filed in over 50 countries
A suite of next generation patents filed that deliver extended IP protection that goes out to 2032
Wide application across the periodic table
Combined IP now inclusive of portfolios from: -
Whilst focus and effort has initially been concentrated on Tantalum and Titanium – the process is effective on many elements across the periodic table and associated alloys
Polar Process®
EDO Process® FFC Process®
Wide Range of Applications
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Unconstrained Alloying • The vast majority of current alloys are produced by melting of the individual
constituents.
• However constraints such as contrasting melting & boiling points, and density differences can prove challenging.
• It is possible to co-reduce mixed oxides via the Metalysis process to form alloys.
70 Ti-30 Ta (bio-medical) 90 Ti-10 Mo (bio-medical)
Magnesium
Beryllium
Aluminium
Scandium
Titanium
Neodymium
Indium
Gadolinium
Dysprosium
Nickel
Molybdenum
Ruthenium
Rhodium
Hafnium
Tungsten
Rhenium
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New Alloys and New Markets
Combining elements through powder metallurgy to create novel alloys opens up new possibilities for markets and applications
The Metalysis process can be a key enabler for this process
Strength Corrosion
Temperature Modulus
Fatigue Shape Memory
Current
New
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The Technology: Titanium Powders
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R&D FACILITY COMPRISING OF 8 STATIONS & 2 DEVELOPMENT CELLS:
• Investigation of different product streams and pre-form types.
• Trialling of alternative electrode arrangements.
• Assessment of process parameters (time/temperature/current/voltage).
• Utilisation of in-process monitoring techniques.
• Materials of Construction testing and selection.
• Qualification of raw materials and support to quality control functions.
DEDICATED ANALYTICAL LABORATORY:
• Residual impurity analysis – gas fusion (O, N, C, S) & ICP-MS.
• Sample digestion facility (for ICP-MS).
• Electrical testing (capacitance & leakage current – tantalum specific).
• Microscopy suite (SEM) including associated sample preparation.
Technical Development Facilities
R&D CELLROOM
DEVELOPMENT CELLS
ICP-MS INSTRUMENT
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Titanium Product Development
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10
2
01
1
20
12
2
01
3
PIGMENT PRE-FORM PRODUCT
SPONGE
SUBSTITUTE POWDER
SPONGE
SUBSTITUTE
HONEYCOMB HONEYCOMB
PIGMENT PRE-FORM
BEAD
PIGMENT
GRANULE
POWDER
DIRECT ORE POWDER 3D PRINTING POWDER
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Metalysis has been working on developing a new titanium alloy that would enable low cost titanium to become a mass market commodity.
Iluka Resources
• Feedstock development
• Synthetic rutile has been identified as a suitable feedstock
University of Sheffield
• Alloy characterisation
• Downstream consolidation
• Alloy modelling
GKN
• Additive manufacturing trials and alloy characterisation
• Manufacturing envelope
Others
• Testing of two further derivatives, an alpha-beta alloy for general structures
• A beta alloy with a low modulus for spring applications
Ti-alloy Development
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DIRECT ORE POWDER
HIP’ed BILLET
409
430
316
303
2205 (DUPLEX)
2507 (DUPLEX)
RUTILE
ASTM 1
ASTM 2
ASTM 3
ASTM 4
ASTM 5
MIL
0
100
200
300
400
500
600
700
800
900
1000
0 200 400 600 800 1000
ULT
IMA
TE T
ENSI
LE S
TREN
GTH
(M
Pa)
YIELD STRENGTH (MPa)
() stainless steel grades; () titanium grades; () Metalysis rutile – tested to BS EN 2002-1:2005
MIL = MIL-DTL-46077G – Department of Defense, Detail Specification, Armor Plate, Titanium Alloy, Weldable
Metalysis rutile possesses a tensile strength:
• greater than commercially pure grades (ASTM 1 – 4) of titanium
• is equivalent to a weldable armour plate for defence applications
• is ca. 80% that of Ti-6Al-4V (ASTM grade 5) at this stage
Metal Powder Directly From Ores
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powder morphology microstructure from cell
microstructure post SPS microstructure post SPS microstructure post SPS
2 wt% Al addition 5 wt% Mo addition
Metal Powder Directly From Ores
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pigment derived titanium powder
rutile derived titanium powder
The relationship between the titanium product and the feed holds for a range of particle size diameters and feedstock types.
() pigment TiO2; () natural rutile; () synthetic rutile
PROPERTY PIGMENT RUTILE
Oxygen (wt%) 0.2 – 0.4 0.15 – 0.4
Apparent Density (g/cm3) 2.71 2.76
Tap Density (g/cm3) 2.92 2.95
Hall Flow (sec) 23 22
Spherical Titanium Powder
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Metalysis spherical titanium powder
automotive turbocharger component
aerospace turbine guide vane
SEM cross sectional microstructure (guide vane)
Additive Manufacturing
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Uses of Powder
0 20 40 60 80 100 120 140 160 180 200 220 240 260
particle diameter (mm)
MIM
GDCS
SLM
EBM
LMD
CIP
HIP
Hot Isostatic
Pressing
Cold Isostatic Pressing
Laser Metal Deposition
Electron Beam Melting (Arcam)
Cold Spray
Selective Laser
Melting
Metal Injection Moulding
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STRATEGY & MARKETS
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Initial Focus on Two Core Products • Metalysis has chosen to focus initially on two metals, tantalum and titanium
• Tantalum is the initial entry market as it is specialist, low volume and high margin
• High value metal - annual volumes of 2,000 tonnes
• Mainly produced by the Hunter process
• Substantial margin opportunities – a viable business in its own right
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Initial Focus on Two Core Products • Metalysis has chosen to focus initially on two metals, tantalum and titanium
• Tantalum is the initial entry market as it is specialist, low volume and high margin
• High value metal
• All titanium is produced by the Kroll process
• Current market size is constrained by the cost of the metal, poised to expand rapidly if the cost can be lowered
• A significant value opportunity
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Titanium Processing Costs
Titanium ore
TiO2 pigment
Metalysis Process
Titanium powder could replace mill products and enables near net shape production and 3D printing
Ti powder
Mill products Billet
Ingot
Kroll sponge
TiCl4
Spherical powder
Metalysis powder
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Routes to component
Titanium ore
Ti powder
Mill products
Billet
Ingot
Kroll sponge
BTF of 4:1 to 40:1
• New manufacturing methods are beginning to gain traction.
• The drivers are not just cost but increased functionality, tailoring, and reduced lead times.
• Traditional supply chain is still geared towards standard mill products.
• Novel powder production techniques could have a large role to play in accelerating the adoption of new manufacturing techniques.
BTF of 2:1
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The Titanium market TITANIUM MINERALS
Production 7,000ktpa – no capacity issue
BILLETS / MILL PRODUCTS Production 165ktpa
By-
pro
du
cts
TITANIUM SPONGE Production 172 ktpa
TITANIUM INGOT / SLAB Production 174 ktpa
TITANIUM POWDER Injection/pressing/ALM Production ca. 3-5 ktpa
FERROTITANIUM + ALLOYS Production 75ktpa
• Australia • South Africa • Canada • China
• China • Japan • Russia • Kazakhstan
• USA • China • Russia • Japan
1) Roskill 2015 2) Metalysis Management
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The Kroll Process
2Mg(l) + TiCl4(g) → 2MgCl2(l) + Ti(s) [T = 800–850 °C]
1) Roskill
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Sponge Producers
1) Roskill
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Sponge Producers - 2014
China 38%
Japan 22%
Russia 24%
Kazakhstan 5%
USA 7%
Ukraine 4%
China 38%
VSMPO, Russia 23%
Osaka, Japan 13%
Toho, Japan 9%
Timet, USA 7%
UKTMP, Kazakhstan
5%
ZMTC, Ukraine 4%
Solikamsk, Russia
1%
1) Roskill, 2015
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Additive Manufacturing 3D printing is the umbrella term typically used to describe the process of building a three dimensional object from a digital design, by depositing layer upon layer of a material, usually plastics and polymers, to gradually “grow” an object. This term is widely used in the media and typically refers to consumer, desktop-based digital printing using plastics and other non-metallic materials.
The term Additive Manufacturing, AM, is a more recent umbrella term used to describe industrial printing processes that typically produce metal components.
AM VALUE CHAIN
Material AM Systems Service Bureau / Production
• Creation of metal powder with high purity.
• Powder typically sold by AM system suppliers.
• Greater volume sales will encourage entry of large metals companies.
• System providers usually produce powder bed fusion systems.
• Low levels of vertical integration.
• Recurring revenues mainly from powder sales.
• Production carried out by OEMs or contract/specialised manufacturer.
• OEMs gaining capability through acquisitions, e.g. GE purchase of Morris Technologies.
1) EOS 2) Roland Berger Report, 2013 3) Arcam 4) 3TRPD
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Advantages of Additive Manufacturing Weight Reduction
Material Saving
Other Advantages
Elimination of Production Steps • Traditional manufacturing processes typically require multiple
process steps from raw material, such as ingots and mill products, to final component.
• Each process steps is combined with a QA assessment before being passed on.
Elimination of Tooling • A major attraction for using AM to manufacture parts is the ability
to increase production rate without a proportional supply chain infrastructure investment.
• Such investments have to be made for the traditional foundry processes as well as the hard metal machining centres.
Part Consolidation • AM can consolidate assemblies into one part, even complete
assemblies with embedded moving parts is possible. • GE have brought into production a fuel nozzle, now a single
component made by AM, onto the LEAP jet engine that used to made out of 20 parts.
Design Freedom • AM can produce parts with complex geometries and internal
structures that would be impossible to produce previously. • This allows greater functionality of components.
• Complex parts, optimised for weight reduction create a significant business case for OEMs.
• Conventional seat buckles weighs ~155g. • An equivalent titanium buckle designed with AM weighs ~70g • For an Airbus A380 (all economy seating) a total saving of 72.5 kg. • Over its lifetime, saves 3.3 million litres of fuel, or ~€2 million.
• Traditional titanium manufacturing processes typically generate lots of scrap, characterised by the “buy-to-fly (BTF)” ratio (amount of material procured versus material in the final component).
• AM allows OEMs to reduce BTFs from an average of 9:1 to 2:1. • Example above shows aircraft bracket (left) with BTF of 8:1 being
produced by AM (right) with a BTF of 1.5:1.
1) US Dept. of Energy 2) Roland Berger Report, 2013 3) Airbus Innovation 4) GE
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Titanium In Perspective…
1) South African Titanium, MSc Thesis, Willem van Tonder 2) Roskill 2013 and 2015 3) Dr. C Nappi, International Aluminium Institute, 2013
Steel 1.5 Btpa $1,100 B
Aluminium ~40 Mtpa $90 B
Stainless Steel ~33 Mtpa $110 B
Titanium ~170 ktpa $10 B
Magnesium ~1 Mtpa $10-20 B
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Future Titanium Markets
Historic price development in Aluminium
Historic volume development in Aluminium
Source: USGS, European Aluminium Association
Halving the price of Aluminium during the recent past has lead to significant growth in the sales of primary Aluminium
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Summary • Metalysis has developed a unique technology originally based on the FFC® Process invented at the University of
Cambridge, UK.
• Capable of producing metal powders for a range of niche and volume markets, including aerospace, electronics, bio-medical, petro-chemical and automotive.
• Metalysis has developed a technology to produce an alloyed titanium powder directly from rutile.
• Such powders can be used to 3D print components for a range of applications where complexity and functionality are prized.
• The market for metal powders is growing rapidly and is set to continue as end-users qualify and gain confidence in the 3D printing process.
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