GreenX Metals Limited ($GRX)

Good morning, and welcome to the Virtual Investor Current Conference on Critical Resources in cooperation with Montega Market. Disruptive supply change, geopolitical tensions and the growing demand of raw materials driven by AI, the energy transition and the defense spendings have made critical resources, the dominant topic of the stock market. The issue, the supply security has long since become a strategic concern of the entire industry. So today, from [ 9 till 12, 6 exciting ] companies operating at the heart of this dynamic landscape will present themselves in short focused sessions. So the management teams of GreenX Metals, HMS Bergbau, Savanna Resources, ACG Metals, [indiscernible] and St. Judge Mining Limited will share the perspectives on markets, projects and strategic directions. We have kept our format compact, so a 20-minute presentation on sourcing, sales, market strategy followed by a 10-minute Q&A session, where you can ask your questions directly to the management. In terms of content, you can expect insights into copper, oil and gas, coals, marine fuels, gold, silver and lithium and other key resources shaping the current market environment. So thank you for joining us today. And with that, let's dive right into the first session that is dedicated to GreenX Metals Limited. So therefore, I'm pleased to welcome the CEO, Ben Stoikovich, who will guide us through the presentation followed by the mentioned Q&A session. So with that introduction, Ben I would like to hand over to you.

Thank you, Sarah. Well, good morning, everybody. My name is Ben Stoikovich. I am the CEO of GreenX Metals. I'm a mining and environmental engineer by background, having worked in industry with BHP early in my career in Australia and then having worked in the investment banking industry in London, servicing the international mining and metals sector. So let me dive into this presentation. GreenX has secured a very large and potentially significant copper project in Hessen in Central Germany. It's a large-scale brownfield license covering 1,900 square kilometers. You can see the licenses here. There's actually 2 licenses, the smaller one, which contains 3 previously operating copper mines and then the larger license which is the Blue Sky potential. The history of these 3 operating copper mines was that they were formerly operated copper mines was that they were discovered by the National Socialists in the 1930s, and they were constructed in the lead up to the Second World War to provide copper for the German war effort. Those mines were closed at the end of World War II, briefly reopened in the 1950s and then closed again when there was an international or global fall in copper prices. So our projects set along what we call the European copper belt. And this is indeed a prolific copper and silver production center over many centuries, in fact, copper and silver mining started in this area signified by the red will here on the map of Poland and Germany. In the middle ages, in terms of modern day mining, the most prolific company is KGHM, which operates in Poland. It is listed on the Warsaw Stock Exchange. It's been a global producer since 1961. And KGHM is the world's ninth largest copper producer and second largest silver producer. And more recently, [indiscernible] Metals, which is a private company founded by Ross Beaty, the famous Canadian mining entrepreneur. They've made one of the largest copper discoveries in the last 20 years, finding 21 million tonnes of contained copper, 1.5 billion ounces of silver, about 150 kilometers north of KGHM. Lumina Metals is in the process of IPO in these projects on the Toronto Stock Exchange in the next couple of weeks. Also active is Anglo American, one of the global major mining companies who have been exploring in the German side of this copper belt for 4 years now. And then there's us, GreenX Metals here in Hessen with our Canenberg project. Okay. So in terms of the -- our Canenberg [indiscernible] mining district was called the Ritter district. It had 3 producing copper mines, and they had a proven production history [indiscernible] copper, 33 million ounces of silver before closure in the 1950s. So for me, if I look at this as a mining engineer, this is already substantially derisked. There's proven copper here in the middle of this zone from these 3 mines. And then from some exploration drilling that was conducted in the 1980s, there's very good copper and silver intercepts to the south here and to the north. And we're talking 2.5 liters at 1.7% copper, 19 grams a tonne silver, up here to the north, 2 meters at 1.6% copper 19 grams a tonne silver. And this occurs along a 14-kilometer strike. So there's a lot of area here for filling in those gaps to prove up a lot more copper. What I should add is that we have probably the shallowest [ Cofashiper ] in the European copper belt. By way of comparison, KGHM, the Polish operator is now mining at nearly 1,400 meters depth shown here. Anglo American is mining at nearly [indiscernible] exploring at nearly 800 meters depth. But you can see here from this cross-section, the red line there is our target horizon, the [indiscernible] shale and the surrounding footwall and hanging wall. And you can see that in our area, it outcrops at surface. So we sort of can operate between 0 meters from surface down to a maximum 500 meters average depth sort of 300 to 350 meters. Now from a mining engineering perspective, the [indiscernible] the more expensive it is to build and operate mines, the higher CapEx, the higher your OpEx. So for us to have the shallowest copper mineralization in the European copper built, we should ultimately end up having the lowest CapEx and OpEx of any of the competitors. Okay. Now we're going to take a history lesson. When copper mining stopped in Germany -- in West Germany, at least in the 1950's, they were mining only the shallow band, the [ Koppesiper ] shale, and here's a picture in black & white from one of the mines in our area, where the miners laid on their side and mined a 40 to 60-centimeter horizon. They also didn't understand back then that the copper didn't just exist in the shale, which is shown here in the red or the dark, the dark purple. It also exists in the limestones above shown in the blue and the shale stones below. So if we take Polish knowledge, in Poland has been mining for the last 60-odd years in the Kupasifa. In Poland, they understand that there's a lot of copper in the footwall at hanging wall. In fact, they can find copper 30 meters above the shale and up to 60 meters of beneath the shale. So in Poland's minds, only 5% of their reserves are actually in the shale. The rest are in the [indiscernible] stones and limestones. And because of that knowledge in Polish mines today, there's a picture here at the bottom, you can see they're mining a very thick sort of 3- to 5-meter mining section taking out the shale, the limestone and the sandstone. So we've taken this concept, and we've now applied it to our German project. And we've been able to test this concept very easily because there is some existing core from the 1980s, which the Hessen government kindly loaned to us, and we've managed to resample and re-log a lot of it. And we've already proven that we had copper in the sandstone and the limestone. So let's talk about history here. In the 1930s, this area on our Canenberg 1 license was explored by the National Socialist government. They drilled 95 holes here in the south and here in the north. And based on this work, they made significant copper discoveries. For this southern area here, we found in the archives a 1940 historical estimate from the German government of the day defined by this blue polygon you can see on screen. And by their calculations based on that drilling, they calculated 728,000 tonnes of contained copper at an average rate of 2.6%. Now there's silver there as well, which they didn't bother assaying back then. So that would be a credit to this deposit. But what's more important is that this 1940 estimate, it only considered the copper in that thin [indiscernible] shale horizon on average, 40 centimeters thick. What we've now proven due to the records we have from historical drilling from the 1980s, and that's shown in this green polygon here to the south of our project, we've actually shown that they're getting grades -- equivalent grades but over much thicker horizons up to 3.45 meters. So this is starting to look more like the Polish example with each new piece of information we get. And so that tells us we have the potential to take this 1940 estimate of 728,000 tonnes of contained copper. And if we can prove and demonstrate that it's actually thicker than that, we have an excellent potential to double or triple that amount of copper in the ground. We did the silver byproduct credit. So just a little bit more information that the Hessen Mining Authority had a lot of core from the 1980s in a core archive. A lot of that was made available to us. And so we've been able to reassay some of these holes here, the ones shown in yellow. And as I just mentioned, we're already demonstrating that we're getting good mining thicknesses and intervals of copper and silver at commercial grades. And not only do we have the old record from our exploration programs -- historical exploration programs, but we have the information and production records from the old mine workings. So here is the old blueprint of the [indiscernible] mine. This started production in the early 1940s and it was closed when the occupying American forces came through in 1944, and it was then flooded. But we can see here if you zoom in to these workings here, you see all these white dots, they're actually underground channel samples. So just in this small area of mine working, we have 15,000 unique grade sample records. So our team has been very busy incorporating this into a modern geological digitized database, where we can start to make 3D models and really understand the nature of this geology. In some of these channel samples here, we're seeing mineralization 4, 5, 6 meters thick, again, proving our hypothesis that this part of Germany probably is more like Poland than people have understood in the past. We've also gone ahead and conducted modern geophysical surveys where we've flow on Aromax over this area. And the important part here is that we know from the Polish example that the thickest highest grade copper horizons are controlled by faults where the mineralizing fluids came up into the sediments. And so with this geophysic survey, these green dots here, these are some of the fault zones that we've been able to identify and understanding where those faults are is a very, very efficient way to target for copper in our upcoming drilling programs. One thing I should also mention is that we've recently learned that we can actually get access to the old underground workings here at Porsburgmine. There's a portal that was built again in the 1930s. It's got a lot gate on it, but the Hess and Mining authority goes underground there to conduct a safety inspection every year. So as we understand it. So we have very good potential to get underground there and actually start to do some channel sampling ourselves to, again, get more geological data points to prove up our new copper deposit. In January last year, we were the recipient of the BHP Explore brand. As you would know, many of you, BHP is the world's largest mining company. They hold a competition every year for the most promising exploration projects. We applied. We're 1 of 8 winners internationally. And so we took the grant money of USD 500,000. But more importantly, we've had some of BHP's best copper geologists working with our team during 2025 to accelerate and help us get a better understanding of [indiscernible]. So that was -- we're very pleased to be a participant in that program, and it has accelerated our knowledge of the deposit. Okay. So back to the history lesson here. Why are you only learning about this project today. The reason is simple that our project was on the border zone between the old East and West Germany, that's marked by the red line here. So you had the iron curtain on one side and NATO and West Germany on the other. So where these mines are situated, there was actually a U.S. military observation post. It had up to 500 U.S. soldiers stationed there up until 1996. So nobody built anything here. The area remained pretty well undeveloped. Now the other interesting fact is that back in historical times, Germany had a national champion copper mining company, Mansfeldt AG. And they were headquartered in the [indiscernible] region, which ended up in East Germany behind the iron curtain. So it was the [indiscernible] company that did all of the exploration here in [indiscernible] and built the mines. But when the war ended and when the East, West German border was defined in '47, a lot of those records ended up in East Germany Archives. And we're the first group to have found those historical records in the East German Archives and put them back together with this deposit. So that's how we've come to find all of this historical data like the '95 National Socialist drill holes and all of their records and the historical resource estimates. Okay. As Sarah alluded to, copper is one of the most important commodities for Germany's industrial future, whether it's for the energy transition, defense and security, the automotive industry, noting that EVs require 3 to 4x as much copper than a normal internal combustion engine. AI, data centers, digital infrastructure, I think defense is a big one. We know that the German government is now contributing more to defense and prioritizing the defense industry. There's not a fighter jet, a submarine or a munition that doesn't rely on copper. There's also a global structural shortage in copper supply. Global demand is set to rise by 40% until the year 2040, which means we need something like 40 new copper lines to come online between now and then. And there's just not enough new discoveries to make that happen. Noting also that Germany is the #1 consumer of copper in Europe. So in terms of the policy environment, now is the right time to be exploring and developing critical raw material projects in Germany and in the EU. The EU's critical raw materials came into force in May 2024 and copper is named as a strategic raw material, and it means that you can apply to the EU to get strategic project designation, meaning that you'll get fast track permitting in less than 27 months. The law mandates that at least 10% of the EU's annual supply of copper must be extracted in the EU, 40% of finished goods need to be companies to be processed within the EU. So that's a very supportive policy environment. And then on top of that, we have German government support and KFW. KFW, the German development bank, has a new EUR 1 billion raw materials fund. The German government is now focused on active facilitation of responsible mining and mine financing. And we like to think that our [ Canabo ] project aligns very, very well with this new German government policy as well. I'll briefly mention our other projects. We have gold tungsten and antimony projects in Greenland. And the constant anatomy are both defense metals as well. We have historic drilling and resources on our Greenland tungsten antimony project. We're sending a field expedition out there this year to prove up those deposits further. So we'll update the market in due course about that. So to summarize, we have a proven management team with an excellent track record of project discovery. And in my case, that's with silver metals, our large titanium deposit we discovered in Malawi, where we're in partnership with Rio Tinto, the world's second largest mining company. And now we're on to a very exciting project in Germany. We've got a supportive policy environment with the EU Critical Raw Materials Act and German government support for domestic mining. We're in strategic commodities, especially copper. It's at the top of the EUs critical raw material list. We have the brownfield advantage in that these deposits in Germany are very much derisked because they've been mined before. They've been processed before. There's been a lot of drilling before. So we know the copper is there. We just have to now define how much. And a lot of that advantage came through the lost data from the old East German records that we have now been able to find and we're now digitizing into a modern data set. And of course, on top of the German copper, we have significant upside in our Greenland asset portfolio, particularly defense metals of tungsten and antimony. So on that point, I will hand over to Q&A. Thank you.

Thank you so much, Ben, for the dive [indiscernible] company. So ladies and gentlemen, we are now happy to take your questions, if you may have. [Operator Instructions] And having said this, we received the first hand from Ingo Schmidt.

I understand [indiscernible] interest about the project. I just have a few quick questions to better understand the economic sense [indiscernible]. First, how should we think about total copper production costs in Germany, especially with higher labor costs, environment and high energy prices. Could you give us a rough idea of the all-in costs? And how would that compare to Poland and the global average. And lastly, also what companies do you think is needed to make production in Germany profitable?

Okay. So look, I can't answer all of your questions because we are still in the exploration phase, and I haven't done the mining engineering technical studies yet. We will get to that over the next 2 years. But the easier way to think about it is what I said earlier about the depth of mining. When you're talking about underground mining of any kind of coal, copper, talk about it. The deeper the deposits, the higher cost of the mining and the capital cost to build the mine. So we [indiscernible] in the European Copper bill. At earlier Poland's [indiscernible] about 1,400 meters debt. We can start mining from almost from surface. Now Poland, KGHM have an all-in average cost of production of around $1.50 a pound, I think. So -- and that's at great depth. So I'm quite confident that in Germany, we can match those types of production costs despite higher energy costs and higher labor costs simply because we're shallower, but also Germany has a very sophisticated modern economy with a lot of equipment providers and we can make a modern mine with a high degree of automation and cutting-edge technology, which will also help lower costs.

So let's have a look. By now, we have no further questions by hands, but written one in our Q&A. So the question is, to what extent is GreenX connected with the derisking efforts on the German European government?

Okay. So we've had connections at multiple levels. We've got significant support with -- from the local municipalities and particularly from the mining authority in Hessen, who have permitted our new applications in record time who were kind enough [indiscernible] Germany to loan us over 4 kilometers of historical core, which we then shipped to Sweden to a specialist laboratory, and we did our own analysis. So huge support at that level. But we've also had very meaningful contact with the German Federal Government via the Ministry of Economy. And we've been invited to Brussels to EU Parliament, where we have presented this project to a group of German MEPs and the Chairperson of the EU's critical raw materials committee. So I think we're very confident that everybody who needs to be aware of this project is aware.

All right. Thank you. So now, no further questions. So ladies and gentlemen, if there's still something you would like to ask Ben or ask him to go a bit deeper into GreenX Metals, just let us know [indiscernible] today's roundtable from GreenX Metals. So thank you very much, Ben, for your time and for presenting GreenX Metals to us. So should you have further questions, maybe at a later time, please feel free to contact Ben and his team. So yes, we will now move on with the [indiscernible]. So Ben, thank you. And yes, last sentence maybe belongs you.

Thank you, everybody, for your attention. Thank you, Sarah, for moderating this. Maybe I would just -- my parting comment will be that one of our team members is Professor Gregor Borg, who's an economic geologist and Professor at Martin Luther University in Germany. He is the world's [indiscernible] geologist and he's a member of our team. So for the German audience, you can look Gregor up and Gregor and I are often marketing together throughout Germany. So as Sarah says, you're welcome to get in touch and join one of our next roadshows to meet us in person. Thank you.

Thank you.