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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011Ironmongers' Hall, City of London17 March 2011Speaker: Anthony Dutton, IBC Advanced Alloys
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RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT
IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com
From mine-to-market in berylliumAnthony Dutton – CEO, IBC Advanced Alloys
IBC Advanced Alloys
A Vertically Integrated Beryllium and Advanced Alloys CompanyMarch 2011Corporate Presentation TSX-V:IB
IBC Advanced Alloys
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• Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those pressed in such statements, depending on a variety of factors.
• Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.
• Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in IBC Advanced Alloys Corp., or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith.
Legal Disclaimer
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IBC Advanced Alloys
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Resources – R&D – Manufacturing• Established 2007 to capitalize on rare metals opportunity• Vertically integrated from mine to market• Strategic supply partnership with Kazatomprom(1)
• Copper alloys and Aluminum alloys leaders• Manufacturing in MA, IN, PA, MO• Proprietary beryllium alloy technology• R & D in nuclear fuel, lithium hydride batteries and wind turbine plasma coating• 2010 revenues $14m and 2011 revenue estimated $20m(2)
Opportunity:• Acquire market share
• $2 b global market (Be, Be alloys & nonferrous alloys)(3)
• Fractured market / two major suppliers• Acquisition and consolidation
• Grow the overall market• Stimulate Be demand with new products R&D and market growth• Manufacture high margin profitable applications• Prove and develop resources
At a Glance
Opportunity exists to grow current market
share and dramatically increase Be market size
(1) On March 24, 2010, IBC signed a binding three-year supply agreement whereby Kazatomprom’s wholly owned subsidiary, Ulba Metallurgical Plant, will supply beryllium and beryllium alloys to IBC on agreed terms
(2) Management estimate based on historical performance(3) Management estimate
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IBC Advanced Alloys
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At a Glance
Inception: 2007
Revenues: 2010- $14m (A) 2011-$20m (E)
Shares Outstanding: 191,698,821
(Fully Diluted) 250,256,308
Options: $.015 to $0.20 – 13,615,000
$.050 to $0.83 – 869,000
Total – 14,484,000
Warrants: (financing) 39,061,723
(broker) 4,761,764
3 month average vol: (to Feb. 28, 2011) 396,215
3 Month Range: 0.1250 – 0.19
Market Cap: $33M
Head Office: Vancouver, BC
Operations: Wilmington, MA
Franklin, IN
Royersford, PA
New Madrid, MO
Trading: TSX-V: IB
Share Ownership:
Firebird Master Fund 30%
Other Institutions 40%
Insider Ownership 2.4%
Financings:
March 2010 $10.35M
May 2009 $1.25M
March 2008 $7M
July 2007 $10M
May 2007 $1.1M 5
IBC Advanced Alloys
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BerylliumIBC
Advanced Alloys
Opportunity
At a Glance
At A Glance
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IBC Advanced Alloys
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What is Beryllium? Beryllium
Be
Rare
Stronger than Steel
2nd Lightest Metal
X-Ray Transpartent
Melting Point 1278°
Non Magnetic and Non Sparking
Beryllium is a rare metal with unique characteristics.
It is used as a pure metal or as an alloy with copper and aluminum.
Bertrandite and beryl pegmatite are the two most common beryllium ores.
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IBC Advanced Alloys
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Where is Be Used? Beryllium
Pure Beryllium: Government and Strategic
• Nuclear
• Aerospace
• Defense
Beryllium Alloy: Commercial and Industrial
• Telecom
• Computing
• Electronics
• Medical
• Oil & Gas
• Automotive
• Aerospace
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IBC Advanced Alloys
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‘Global Beryllium Demand to Reach 465 Metric Tons by 2015” Global Industry Analysts, Inc. 2010
Growing Be supply/demandImbalance favors suppliers• Only three primary sources
globally (BW, Ulba, US gov’t)
• No spot market
• Dramatic price rise (44%) between 2006 and 2008 (up to $500kg)
• High price has prevented wider use of Be
• One source (US Govt. stockpile) decreased availability 2008 / 2009
Beryllium Market Beryllium
WORLD BERYLLIUM CONSUMPTION (METRIC TONS)
Source: Beryllium – A Global Strategic Business Report, Global Industry Analysts, Inc.
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IBC Advanced Alloys
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IBC Divisions IBC
R&DMineral Properties Manufacturing
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IBC Advanced Alloys
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IBC Value Chain IBC
RESOURCES
Mineral Properties
DISTRIBUTIONUtah
ColoradoBrazil
Kazatomprom(Ulba)
Customers:HondaToshiba
NGKUS National Labs
HoneywellGeneral Dynamics
Raytheon
Processing Manufacturing Distribution
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•Product Dev•Market Dev•R&D
•Nuclear fuels•LiBe Hydrides•Plasma coatings
Copper Alloys
Aluminum Alloys
IBC Advanced Alloys
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Management & Directors IBC
Anthony DuttonDirector, President & CEOFinance & Strategic Advisory Background
Denis BradyDirectorPrevious owner of Nonferrous Products. Manufacturing Expertise
Dal S. Brynelsen Director, President and CEO of VangoldResources Ltd., Corporate Finance
Ian SlaterDirector CA and past Managing Partner of Ernst & Young’s Canadian mining practice
Lee R. RiceDirector / VP ExplorationRegistered professional engineer, geologist and 43-101 qualified
Jim MaloneVice President Nuclear FuelsChair, IBC Nuclear Fuels Advisory BoardFormer VP Nuclear Fuels for Exelon Corp.
Douglas VeitchVice President of Business DevelopmentFormerly with Brush Wellman
Mark Wolma President of IBC NonferrousPreviously VP Operations Scherer Industrial Group
Rajeev JainVice President of SalesFormerly at Hussey Copper
Simon J. AndersonChief Financial Officer Chartered Accountant with public and private company experience as director / officer
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IBC Advanced Alloys
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Plant Locations IBC
Freedom Alloys
NonferrousBeralcast
Manufacturing headquartersIndiana
48,800 sq. ft.Owned 12 acre property
Manufacturing headquarters MassachusettsPrototypingBeing relocated
Two facilities:Pennsylvania and MissouriOwned/Leased 42,500 sq. ft.
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IBC Advanced Alloys
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Expand Be market and attract market share• Expand sales and marketing team / aggressively pursue new business• Increase business growth through existing customer base• Develop new markets and offer competitive products
Continue manufacturing consolidation• Move Beralcast to larger facility (est. April 2011)• Increase margins• Improve production efficiencies• Seize highly accretive acquisition opportunities
Develop exploration resources• Prove up resource base to NI 43-101• Acquire other world class beryllium ore bodies
Continual investment in beryllium R&D• Nuclear fuels / wind power / new products• Objective to increase demand for Be resource
Business Strategy IBC
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IBC Advanced Alloys
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• Close customer relationships– Best lead times in the industry
• Dependable sources of raw material– Long term strategic relationship with Kazatomprom
– Approved buyer from DOD
• Proprietary technology
• Processing and metallurgical expertise
• Specialized market
• Unique structure (vertically integrated)
IBC’s Competitive Advantage IBC
Close customer relationships
Dependable sources of raw material
Proprietary technology & patents
Processing & metallurgical expertise
Specialized market
Unique structure
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IBC Advanced Alloys
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• Beralcast is a Be alloy with superior capabilities to other metals
Superior Patented Product IBC
Satellites
Military Aerospace
Commercial Aerospace
Automated Assembly
Computers
Recreation
High Performance Automotive
HIGHER
HIGHER LOWER
LOWER
PERFORMANCE SENSITIVE
PRIC
E SE
NSI
TIV
E
Stiffness to weight (108 inches)
Tailored alloys to meet
performance cost objectives
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IBC Advanced Alloys
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Potential of the Beryllium Market IBC
Opportunities for growth
Potential applications:
• Nuclear fuel
• Wind turbine components
• Golf club shafts
• Engine blocks
• Disc drives
• Wheel rims
Huge market potential to for materials substitution
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IBC Advanced Alloys
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Customer Base Provides Strong Foundation for Growth
Metals & Industrial Supplies
US Navy Defense Contractors
Aerospace Defense Contractors
Oil & Gas Industries
Supplier to the Nuclear Power Industry
Technology, Energy & Media Company
• Leverage increased business with existing customers• Marketing program to reach new customers• Recent expansion has expanded capacity
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IBC Advanced Alloys
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Growth Drivers OPPORTUNITY
Acquisitions & Joint
Ventures
Future
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Alternative Energy
Aerospace
New R&D
Materials Performance
New Technologies
IBC Advanced Alloys
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Exploration – Mineral Properties OPPORTUNITY
Brazil, Minas Gerais State
• 2,432 Acres
• Well mineralized region with historical beryl production
• World’s largest pegmatite provinces
• 3 year research licenses with 3 year renewal
• Research license allows mapping, soil sampling, definition drill and trenching
Colorado, Lake George
• 10,680 Acres
• Includes Boomer Mine
• Second largest historical beryllium mine in US
• Staked additional 517 beryllium mining claims totaling 10,000 acres
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IBC Advanced Alloys
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Juab County, Utah – Spor Mountain:• 371 claims over 7,630 Acres
• Adjacent to the world’s biggest beryllium deposit and mine – operated by Brush Wellman
• USGS confirmed Beryllium mineralization
• IBC properties located on extension of geologic system currently being mined
• Significant potential in excess of SporMountain mine
• Exploration program targeted for 2010 leading to NI 43-101
Exploration – Mineral Properties OPPORTUNITY
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IBC Advanced Alloys
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Nuclear Fuels Advisory Board:Dr. Alvin Solomon - Professor Emeritus, PurdueJoel Gingold - Retired VP, GM and Director of Stoller NF James Malone – IBC VP Nuclear Fuels, Former Senior VP NF, Exelon Corp.
Nuclear fuels research with Purdue and Texas A&M Universities
Nuclear Fuel development MOU with GNF (GE Electric) Provisional Patents Filed
Expected Benefits:
• Increased MWdays per tonne
– Utility cost savings
• Lengthened fuel cycle
– Less waste
– Less uranium required
• Lower core temperature lower temperature gradient
– Increased reactor safety
Nuclear Fuel – R&D Partnership OPPORTUNITY
Nuclear fuels market currently $25 billion, projected $35
billion by 2020(1)
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IBC Advanced Alloys
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IBC represents an excellent investment opportunity• Profitable and growing manufacturing operations;
• Widening rare metal portfolio with new applications;
• Global presence and strong growth fundamentals;
• Additional consolidation potential;
• Strong management and board of directors;
• Value added opportunities through R&D and synergies;
• Significant barriers to entry;
• Attractive valuation to peers.
IBC Conclusion
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IBC Advanced Alloys
IBC Advanced Alloys
Thank You