Capital Metals Plc

Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Taprobane Minerals Sands Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The project is one of the highest-grade mineral sands projects globally, with potential for further resource expansion. Based on an updated internal financial model developed with the support of Mineral Technologies last year, the project has an NPV8 (post tax) of US$180 - US$289m (based on the current resource alone). We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$200m in direct government royalties and taxes to be paid in the initial 10 year phase of the Project.

Management Profile:

Gregory Martyr - Executive Chairman

Mr Martyr is an experienced resource industry banker, advisor and corporate executive. He has over 35 years’ experience in resources investment banking and corporate finance, as well as the management of international mining companies. From 2011 to 2016, Mr Martyr was a Managing Director with Standard Chartered Bank ultimately as the Global Head of Advisory, Mining and Metals. From 2005 until its 2011 acquisition by Standard Chartered Bank, he was a partner with Gryphon Partners, a boutique resource advisory firm, and from 1994 to 2003, he was employed in several executive roles by Normandy Mining Ltd., including President, Americas. Prior to that he held positions with Deutsche Bank and Morgan Grenfell. Mr Martyr obtained a Bachelor of Economics and a Bachelor of Laws from the University of Sydney, Australia.

Stuart Forrester - Chief Operating Officer

Mr Forrester is an experienced engineering professional specialising in mining, processing, and project management, with a comprehensive track record throughout the lifecycle of mineral sands projects from mine construction to reclamation.

Mr Forrester is an experienced engineering professional specialising in mining, processing and project management, with a comprehensive track record throughout the lifecycle of mineral sands projects from mine construction to reclamation.

Prior to joining Capital Metals, Mr Forrester played a pivotal role in the creation and leadership of Black Mountain Metals II, a mining investment vehicle in Australia, which facilitated the deployment of US private equity funds for the development of Australian resource companies. Prior to this, from 2019 to 2021, he served as Senior Director, Minerals Operations, for The Chemours Company, where he was responsible for all leadership aspects of Chemours’ mineral sands operations, from greenfield project development to mining to finished production and sales. He was accountable for five operating locations and seven mining/processing facilities in the USA. While at Chemours, Mr Forrester successfully commissioned the Jesup mine site in Georgia.

From 2017 until its acquisition by Chemours, Mr Forrester was President at Southern Ionics Minerals, where he directed all aspects of the mineral sands business, achieving significant increases in mining and processing production rates, leading to a turnaround of the business. From 2006-2017, Mr Forrester held various roles at Iluka Resources, a global leader in zircon production and a major supplier of high-grade titanium dioxide feedstocks, including rutile and synthetic rutile. His positions included USA Director & Regional Manager and Midwest Operations Manager, where he was responsible for the world’s largest zircon mineral separation plant and the renowned Eneabba mine.. Mr Forrester commenced his career at Rio Tinto, with various positions within their iron ore division.

What are your key goals for the next 3, 6 and 12 months?

3 Months

Obtain one additional mining licence (2 in place already) to have critical mass to start construction

Conclude Project Funding transaction to commence construction.

FID.

6 Months

Commence construction activities.

Additional drilling programmes to exponentially increase the current Resource

12 Months

Construction activities concluded.

Commence commercial production.

What do you think makes your company such a compelling investment?

This is an exceptionally high-grade project. Super high grades enable a rapid, low-cost solution with relatively low risk and a simple mine plan and plant with high recoveries.

Project NPV8 (post tax) equates to 27-44p per share against a current share price of 5.1p. There remains significant resource upside at depth and laterally which would significantly improve economics.

The introduction of Ambeon Capital, a Sri Lankan conglomerate, which is now our largest shareholder, means we are not only funded beyond FID but also have very well-established relationships in Sri Lanka with all stakeholders.

The publication of the new National Minerals Policy in January this year in Sri Lanka sent a strong signal that its government is open for business for mining.