hpq presentation ver 1 nov 24 2016 - hpq silicon · the terms sgsi, solar grade silicon and...
TRANSCRIPT
BecomingtheWorld’sLeaderinLowCostSolarGradeSiliconMetal
“Polysilicon”
HPQ - SILICONR E S O U R C E S
TSX-V:HPQ
Thispresenta,onincludescertain“forward-lookingstatements”
Allstatements,otherthanstatementsofhistorical fact, includedherein, including,without limita5on,
statementsregardingfutureplansandobjec5vesofthecompany,areforward-lookingstatementsthat
involvevariousrisks,assump5ons,es5matesanduncertain5es,andanyorallofthesefutureplansand
objec5ves may not be achieved. The terms SGSI, Solar Grade Silicon and Polysilicon are used
interchangeablyandrefertohighpuritysiliconusedinthesolarpanelindustry,with99.9999%purity,also
referredtoas“6N”.
These statements reflect the current expecta5ons or beliefs of HPQ-Silicon Resources Inc. (“the
Company”) and are based on informa5on currently available to the Company. There can be no
assurancethatsuchstatementswillprovetobeaccurate,andactualresultsandfutureeventscoulddiffer
materiallyfromthosean5cipatedinsuchstatements.Alloftheforwardlookingstatementscontainedin
thispresenta5onarequalifiedby thesecau5onary statementsand the risk factorsdescribedabove.
Furthermore,allsuchstatementsaremadeasofthedatethispresenta5onisgiven.
AninvestmentintheCompanyisspecula5veduetothenatureoftheitsbusiness. Theabilityofthe
Companytocarryoutitsplansasdescribedinthisconfiden5alpresenta5onisdependingonobtaining
therequiredcapital.ThereisnoassurancethattheCompanywillbeabletosuccessfullyraisethecapital
requiredortocompleteeachofthegrowthini5a5vesdescribed. Investorsmustrelyupontheability,
exper5se,judgment,discre5on,integrityandgoodfaithofthemanagementandBoardoftheCompany.
DISCLAIMERSHPQ - SILICONR E S O U R C E S
November2016–Page2
HPQ - SILICONR E S O U R C E S
HPQHasrecentlydevelopedwithitspartnerPyroGenesisaone-stepSolarGradeSiliconMetalprocess
THEDisrupIveTechnologyinSolarGradeSiliconMetal
SolarGradeSiliconMetal“Polysilicon”99.9999+%Si
SiO299.0+%
Carbon
• HighPuritySiliconMetalisafounda,onofthesolarpanelindustry
• SolarGradeSiliconisaUS$5Billionperyearmarket,growingat15%CAGR
• HighBarrierstoEntry:Capex,Opera,ngCost,PermiWngareresolvedinthissimpleone–stepprocess
Theresultsareradicalbutthescienceissimple
November2016–Page3
Debt free after gold spinout
CorporateandCapitalSummaryHPQ - SILICONR E S O U R C E S
*Independentdirectorsmayreceiveaddi,onalcompensa,onforprojectwork.
Management IndependentDirector(*)
BernardJTourillon,BAA,MBA RichardMimeau,B.Sc.Chairman,CEOandDirector Director
PatrickLevasseur PeterSmith,PhD,P.Eng.President,COOandDirector Director
NoelleDrapeau,LLL,MBA,PMP RobertRobitaille,B.A.,L.Ph.,MBACorporateSecretaryandDirector Director
FrancoisRivard DarylHodgesH.BSc,M.Sc..CFO Director
Auditors
RaymondChabotGrantThornton
TransferAgent
Computershares
Consultants
MarcelDrapeau,BA,B.Sc.Comm,LLLCompanyLawyer
MarcRicher-Laflèche,P.Geo,PhDTechnicalAdvisor(INRS-ETE)
November2016–Page4
SharePrice(November23,2016) $0.115 Cashandequivalentinhand
52WeekLow $0.020 Cashvalueofwarrantsinthemoney
52WeekHigh $0.305 Breakdownofwarrantsinthemoney # $
SharesOutstanding: 148,262,845 Warrantswith$0.07StrikePrice 26,805,176 $1,876,362
Warrants: 50,148,745 Warrantswith$0.10StrikePrice 464,587 $46,459
Options: 12,187,672 Warrantswith$0.15StrikePrice 4,375,000 $0
FullyDiluted: 210,599,262 Warrantswith$0.20StrikePrice 8,000,000 $0
MarketCapitalization: $17,050,227 Warrantswith$0.25StrikePrice 6,200,000 $0
MarketCapitalization(FD): $24,218,915 Warrantswith$0.30StrikePrice 2,840,909 $0
Warrantswith$0.35StrikePrice 1,462,500 $0
$1,450,000
$1,922,821
Management&Board ≈17% ≈25%(FD)KeyInvestorGroup ≈18% ≈17%(FD)Fancamp ≈4% ≈7%(FD)Institutions ≈4% ≈6%(FD)TaiwaneseGroup ≈2% ≈3%(FD)PyroGenesis ≈2% ≈2%(FD)
TOTAL ≈47% ≈60%(FD)
MajorInvestors
HPQSiliconplanstobecomeaver,callyintegratedSiliconMetalCompany
CorporateStructureandBusinessesHPQ - SILICONR E S O U R C E S
November2016–Page5
Subsidiaries BEAUCEGOLDFIELDSINC
QUARTZPROPERTIES
PUREVAPQRR
BEAUCEGOLD
PROJECT
RONCEVAUXGOLD
OPTION
QuartzQuarries
ProductsHighPurityQuartz
by-products
SolarGrade
SiliconMetal
SpecialtyGrade
SiliconMetalandSiliconCarbide
MetallurgicalGrade
SiliconMetal
Purity 99.99+%SIO2 99.9999+%SI99.6+to
99.999%SIorSiC
98.0%to99.5%SI
MarketSize ≈100KMTperYear
≈350KMTperYear
Smallmarket ≈2.2MillionMTperYear
AveragesellingpriceinKg(USD)
>$5.00$13.00to$16.00 >$5.00
$2.40to$2.80
2016-2017developmentstepsforHPQ
Explorationworktostart,
goaldelineatingresourcesonProperties
OngoingR&Dtovalidate
PurevapQRRcanproduce6Npurity
HPQSiliconResourcesInc.
Divisions
GoldassetsplannedtobespunouttounlockvalueduringQ42016/Q12107
Ownership:100%now,20%afterspinout
Labscalevalidationreached,buildingpilotplanttoconfirm
commercialscalability
OutsourcingR&DAndPartneringWithTheIndustryLeader
HPQ - SILICONR E S O U R C E S
November2016–Page6
STRATEGICDEVELOPMENTAGREEMENTWITHPYROGENESIS
• HPQhasacquiredtheintellectualpropertyrightstothePUREVAP™QRRprocessandwillfinancethedevelopmentasitrelatesexclusivelytotheproduc5onofsiliconmetalfromquartz(*)
• PyroGenesisisdevelopingforHPQ-Silicon’sexclusiveusethePUREVAP™QRR(PatentPending)a1Step,CleanTechprocessformakingSGSidirectlyfromQuartz,usingaplasmasubmergedarc
• PyroGenesiswillbuildandcommenceproduc5onfroma200TPYSGSiR&Dpilotplant(PressreleasesAugust2,2016,September30,2015)
VALIDATION
• HPQconfirmsthePUREVAP™QRRprocesscantransformQuartzinto>99.9%SiliconMetal(Si)
• HPQannouncesindependentconfirma5onvalida5ngthePUREVAP™QRRcapabili5esof• Produc5onofupto99.97%(3N+)duringphase1test
• Demonstratedtheremovalofkeyimpuri5esfromthefinalproduct,notablyBoron(B)
• Secondphaseoftes5ngunderway(PressreleasesJune29,September1andSeptember29,2016)
• HPQannouncesonNovember2,2106thatthePUREVAP™QRRiscapableof
• Using97.57%SiO2feedmaterial,(belowminimalindustryspecifica5onforFerrosilicon)ands5llproduce
HighPuritySiliconMetalof99.936%Purity
RAPIDPROGRESSSINCEFINALIZINGAGREEMENT
*PyroGenesisretainsaroyalty-free,exclusive,irrevocableworldwidelicensetousetheprocessforpurposesotherthantheproduc5onofsiliconmetalfromquartz
HPQ - SILICONR E S O U R C E S
November2016–Page7
Silicondioxide,Silica,QuartzandSiO2,Synonymfortheworld’smostcommonmineral…HighPuritydeposits(SiO2>99.0%)withlowimpuri-esarerare!HighPurityQuartz:TheKeyToProduceMetallurgicalGradeSiliconMetal(MGSi)• Today’sKeyGreenStrategicMineralsWithApplicaIonsInTheSilicone,Aluminium,SolarAndHigh
TechIndustries• Designated A CriIcal RawMaterials For The EU In 2014 AndA CriIcal Ingredients ForMaking
Aluminum,SolarPanelsAndOtherProductsByTheUSDepartmentOfJusIceIn2015
PresentlySolarGradeSiCanOnlyBeMadeByRefiningMGSiIntoHigherPurityMaterial
SILICA/QUARTZ/SILICONMETAL101HPQ - SILICONR E S O U R C E S
Purity 99.5%to99.7%Price(US$/Ton) 40to60CashCost(US$/Ton) 20to30SupplyPicture InequilibriumPriceTrend Stable
Quartz/SiO2ForMGSi
SiO2ToMGSi MGSitoSGSi
SiPurity 6Nto9NMarketSize(Ton) ≈350KTonsMarketSize(US$) ≈5BillionDemandGrowth ≈15%CAGRSupplyPicture InDeficitPriceTrend UpPrice(US$/kg) 12.80to15.67CashCost(US$/kg) 12.0to17.0CapexCost(US$/kg) 75to100
SolarGradeSIandHigher
2015Data(SourcesCRU,GTW,IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015,Bloomberg)
SiPurity 98%to99.5%MarketSize(Ton) ≈2.2MillionTonsMarketSize(US$) ≈6BillionDemandGrowth ≈6%CAGRSupplyPicture InequilibriumPriceTrend Upfrom2016Price(US$/kg) 2.4to2.8CashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7to14
MGSI
2015Data(SourcesCRU,Ferroglobe,Bloomberg,Viridis.oq,Roskill)
November2016–Page8
MGSiliconMetal98.0%to99.5%Si
ElectricArcFurnaceSiO299.5%+Coal+WoodChips
CURRENTTECHNOLOGYPROCESSvs.PUREVAP™HPQ - SILICONR E S O U R C E S
MGSiliconMetalIsDissolvedInHydrochloricAcidToFormTrichlorosilane(HSiCl3)
SolarGradeSiliconMetalPolysilicon99.9999+%SiSIEMENSReactor
Trichlorosilane(HSiCl3)isFurtherRefined
SolarGradeSiliconMetal“Polysilicon”99.9999+%Si
SiO299.0+%
Carbon
PUREVAP™QuartzReducIonReactorAProprietary(PatentPending)One-stepProcessToMakeSolarGradeSiliconMetal
November2016–Page9
SIMPLEPUREVAPTM1-STEPPROCESS“ELEGANTINITSSIMPLICITY”
+PlasmaArc
Silicon
Vacuum
Impuri,es
ONESTEP
QuartzReduc,onReactor• Quartzreduc5onwithcarbonusingplasmasubmergedarc
• Siliconrefiningundervacuumtoremoveimpuri5es
VacuumArcFurnace• Reachingverylowairpressurelevel
ü (mbar)• Veryhightemperatureplasmaarc
ü +3500degC• Resul,nginvaporizedimpuri,esbefore
Sicanvaporize
ü P,K,Mg,Zn,Ca,Mn,Pb,Al,Fe,etc
HPQ - SILICONR E S O U R C E S
SolarGradeSiliconMetal“Polysilicon”November2016–Page10
PUREVAPTMPROVENCONCEPTATLABSCALEHPQ - SILICONR E S O U R C E S
CaptureoftransiIonfromCtoSiCtoSiusingPurevapTM
SEM-EDXimagefromtestdoneatCentredeCaractérisa5onMicroscopiquedesMatériaux(CM2)
Phase1Tes5ngProgramconfirmedthatthePUREVAPtmQuartzReduc-onReactor(“QRR”)conceptofcombiningdifferentknownstepsintoaonestepprocessisworking• Test results clearly indicate that the process can successfully remove impuri5es from the material while
transformingSiO2intoSiliconMetal(Si)inonestepaspredictedbyPyroGenesisTheore5calModel
Elem. #6 #7 #9 #10 #15Al 86% 96% 98% 97% 74%B 97% 98% 91% 83% 96%Ca 12% 23% 99% 96% 82%Fe -208% 61% -214% -148% 7%P 94% 97% 67% 78% 92%Ti -321% -63% -93% -49% -93%
ImpurityremovalperPhase1testthatproducematerial
>99.9%SiliconMetal
Transi,onalSilicon-Carbide
Carbon“skin”
November2016–Page11
0
4
8
12
16
20
24
28
32
0 40,400 80,800 121,200 161,600 202,000 242,400 282,800 323,200 363,600 404,000
Uni
t Cos
t ($/
kg)
Capacity (MT/Year)
2016 Average Spot Price $16.92
CashCostvs.CapacityforallSGSiManufactures
PUREVAP™QRRPotenIalOpexRange
(CashCost)
Source:Compe5torreleases,industryanalysts,RECSiliconMarketIntelligence,SilicorMaterialsInc
HPQ - SILICONR E S O U R C E S
PUREVAP™OPEXDISRUPTIVEPOTENTIAL
SilicorMaterialsInc.isinves-ngUS$665MilliontobuildanewpantinIcelandthatwillhaveacashcostof
US$7perKG.
November2016–Page12
PUREVAP™CAPEXDISRUPTIVEPOTENTIALHPQ - SILICONR E S O U R C E S
• PUREVAPTMQRRPilotplantwithitsUS$18.5CapExperkgofcapacityhasthepoten5altotransformquartztoSolarGradeSi inonestepandbecomingthedisrupIvetechnologyfortheSolarindustry
FollowingPilotScaleValida,onofthePUREVAP™QRRprocess;
• Thegoalwillbetomovetoacommercialphase,withanobjec5veofbuildingcapacity
capableofproducing20,000TPYofSGSiwithin5-7yearsNovember2016–Page13
Technologies FeedMaterial
CapableofTransforming Si02toCapableofUpgrading MGSitoNumberofeffectivecompetitors
KeyCapexmatrixMinimumCapacityRequirement(MT)
CapExperKgofannualinstalledcapacity(US$/kg)
CapitalCostrequirements(US$million)
NEWTECHNOLOGY
SiemensHC FBRReactorwithSilane
SilicorAluminumSolventRefining
PUREVAPQRRR&DPilotPlant
PUREVAPQRRCommercialplant
SolarGradeSi SolarGradeSiSolarGradeSi SolarGradeSi SolarGradeSi
1
19,000 200 10,00070(U.S.) 100(U.S.)45(China) 75(China)455(U.S.) 650(U.S.)292(China) 488(China)
17
6,500
35
665
18 4
4 38
(all$valuesinUSD)HPQTECHNOLOGY
CapitalCostPerTechnologiesAvailableToProduceSGSiMaterial
EXISTINGTECHNOLOGY
SOURCES: SilicorMaterials PyroGenesisCanadaInc(PRAugust2,2016)
RougOrderofMagnitudeStudybyPyroGenesis
IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015
2016R&D–PilotPlantWorkOutline
1. Labscaletes,ngareongoingun,ltheendofJanuary2017I. ResultsarebeingusedasthebasisfortheFurnace'sSec,ondesign
2. DetailedEngineeringWorkInProgress:
i. GeneralProcessDesign
ii. ProcessSimula,on
iii. Processflowdiagram(PFD)
iv. Pipingandinstrumenta,ondiagram(P&ID)
3. ProcessDrawingsI. TobecompletedbytheendofDecember2016
HPQ - SILICONR E S O U R C E S
November2016–Page14
Phase 1: Detailed Engineering
Process Engineering
Mechanical Engineering
Electrical Engineering
Automation Engineering
Phase 2: Pilot Plant Fabrication
Equipment Sourcing
Equipment Delivery & Inspection
Fabrication, Assembly & Installation
Sep-17 Oct-17 Nov-17Task Name
Sep-16
ScheduleOct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17
HPQ - SILICONR E S O U R C E S
DesignandPilotPlantFabrica,onSchedule
Phase3:HotcommissioningofPilotPlantschedulefromNov2017
Phase4:Tes,ngandOpera,ngPilotPlantschedulefromMarch2018
November2016–Page15
PUREVAP™PILOTPLANT:CAPITALNEEDS,TIMING
Thetotalcost topurchaseandcommissionthePUREVAPTMQRRPilotPlantandrelatedIntellectualPropertyisCDN$8,260,000overthenext30months:
• $1,000,000forpurchaseoftherelatedIntellectualProperty(Completed)• $4,430,000fordesign,fabrica5on,assembly,coldcommissioning&tes5ng($490KDone,over,metoOct-2017)• $520,000forhotcommissioningofthepilotsystem(TobepaidFromNov-2017toFeb-2018)• $2,310,000fortes5ngandopera5ngthepilotsystemduring10months(TobepaidFromMarchtoDec-2018)
TheProjectedCashcalloverthenext30monthsare:• $1,900,000fortheremainderof2016
• $2,296,000for2017
• $2,570,000for2018
HPQSiliconfundingadvantages:
• HPQwillbeen5tledtoR&Dresearchcreditsworthabout30%ofCDN$7,260,000oftheprogram
• Theprojectiseligibleforgovernmentfunding(ProvincialandFederal)for55%to80%ofthecosts
• OverCDN$1,900,000worthofwarrantsareinthemoney,majorityinfriendlyhands• Theacquisi5onofPUREVAPTMIntellectualpropertyopensupaddi5onalop5onsforfinancing
becauseinvestorswanttoseedirectcontroloverthekeyintellectualproperty
• Managementisexploringseverallikelynon–dilu5vepathsforfinancingthePilotPlant
HPQ - SILICONR E S O U R C E S
November2016–Page16
HPQ–PUREVAP™RAWMATERIALHPQ - SILICONR E S O U R C E S
• HPQ-Silicon isthelargestholderofHighPurityQuartzproper,esinQuebec,withover3,500Haunderclaims
• The High Purity Quartz from our Roncevaux property is already in high
demand,as itsuccessfullypassedrigoroustes5ngprotocolsofamajorsilicon
metalproducer
November2016–Page17
• 12HighPurityQuartzDepositsInQuebec• 61ClaimsTotaling3,500Ha
• AllClosetoTransport,Infrastructure&TargetMarkets
QUARTZPROPERTIESLOCATIONHPQ - SILICONR E S O U R C E S
November2016–Page18
HPQVERTICALINTEGRATIONSTRATEGY
PlansAreToEstablishHPQQuarryOpera,onsinordertomeetourRawMaterialRequirementForFuturePUREVAP™QRRPlants.
• InparalleltoscalingupourPUREVAP™QRR process,HPQwillbedevelopingtheRoncevauxQuartzPoten5al,withagoalofdelinea5ngasignificantresourceontheProperty
• EventwhenasignificantresourceisdelineatedontheRoncevauxproperty,workona
Preliminary Economic Assessment (PEA) will only be undertaken when required for
permitngpurposes
• Un5l that 5me, all our financial models will assume purchasing the raw High Purity
Quartzrequiredfortheplantsintheopenmarketatmarketprices
• Upon successful start of quarry opera5ons on Roncevaux, HPQ Silicon will be a fully
integratedSiliconMetalProducer
HPQ - SILICONR E S O U R C E S
November2016–Page19
HPQ - SILICONR E S O U R C E S
HPQPUREVAP™Proprietarytechnologyis:• LowOpex,LowCapex,MinimalCarbonFootprintandEnvironmentallyfriendly
• Lessthan20%oftheIndustry’scashcost,• 5%ofIndustryCapex,and
• Witha75%reduc,onincarbonfootprintsincetheProcessises,matedtogenerate14.1kgCO2eqperKgSGSiproducedcomparedtothestandard2stageprocesscurrentlyinusethatgeneratesabout54.0kgCO2eqperKgSGSiproduced
WhyInvestinHPQNow?
HPQIsCanada’sOnlyPublicPurePlayInvestmentIntheLucraIveSolarGradeSiliconMarket
HPQSiliconhasastagedplantobecomeacapitalefficientintegrated
producertoarapidlygrowingindustry
November2016–Page20
Appendix(SupporIngSlides)
HPQ - SILICONR E S O U R C E S
TSX-V:HPQ
HPQ - SILICONR E S O U R C E S
HPQAndTheSolarPVManufacturingSpace
November2016–Page22
Successfully Going From Quartz To CrystallisaIon in one step, HPQ CouldReduce The Cost Of Solar Cell Systems Enough To Make Solar Energy TheGreenestAndLowestCostEnergySource
Tradi,onalSolarCellManufacturingandImpuri,es
DiagramRef:GianlucaCole\2012]p://]p.ecn.nl/pub/www/library/report/2012/o12048.pdf
GrowthinMGSiConsump,onExpectedtoAcceleratefromHistoricalLevels
KMT
$/t
3,500
3,000
2,500
2,000
1,500
1,000
500
0
20072008200920102011201220132014201520162017201820192020
WesternWorld China
RisingMGSiDemandExpectedtoDrivePriceRecoveryin2017-2020
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
20072008200920102011201220132014201520162017201820192020
USA Europe Source:CRU2015,FerroglobeNote:Siliconconsump-on,pricing,andcapacitydataarefromCRU.
Japan
HPQ - SILICONR E S O U R C E S
GROWINGMETALLURGICALGRADESILICONMETALMARKET
n MGSi2015consump5onwas2.2MillionTons;
• >$US6billioninworldwidesales
n Demandisexpectedtogrowat6.0%CAGRfrom2016–2020
n CRU forecasts a 2017-2020 price recovery for MG SidrivenbyrisingMGSidemand
n In 2015, 15%ofGlobalMGSi (98.5% Si) produc,onwas further refined to Solar Grade Si (SG Si, or“Polysilicon”)at99.9999%(6N)purity
• 350KTonsofSGSiwassoldin2015(≈$US5Billion)
n Growthwill be largely driven by the growing demandforSolarGrade(SG)Si(Polysilicon)materialtobeusedinPhotovoltaic(PV)solarpanels
n EachWay(W)ofenergyproducedbyaPVsolarsystemdemands≈5grofSGSi
n GTMResearch es5mates that Installed PV demand togrowth 15 % - 23 % annually, represen5ng about 10Gigaway(GW)peryear
n Significant SG Si Deficit are forecast from 2017 on asGigaway(GW)producewithSolarpanelsincreases
November2016–Page23
LowSGSi(Polysilicon)Produc,onLimi,ngPVGrowth
Source: Demand Data Installations: GTM Research, PV Pulse, January 2016 Supply Data: Competitor releases, industry analysts, REC Market Intelligence
Semi Semi Semi Semi Semi
ROW ROW ROW
China Top 3
China Top 3 China Top 3
China Top 3
China Top 3
Other China Other China Other China
Other China
Other China
41GW
59GW 64GW
78GW
0
100
200
300
400
500
2014 2015 2017 2018
Pol
ysili
con
(kM
T)
SG Si (Polysilicon) Supply/Demand Forecast
2016
Total SG Si Demand
(70)
(60)
(50)
(40) ROW
ROW
(30)
(20)
(10)
0
10
20 95GW
2014 2016 2017 2018
Pol
ysili
con
(kM
T)
SG Si (Polysilicon) Market Balance Forecast
2015
Supply Excess Supply Deficit
HPQ - SILICONR E S O U R C E S
November2016–Page24
PUREVAP™EnvironmentallyFriendly
CarbonFootprint75%LowerThanConven,onalProcess.ThePUREVAP™QRRprocessises5matedtogenerate14.1kgCO2eq/KgSGSi;
TheSiemensprocess(theindustrystandard)normallygenerates54.0kgCO2eq/
KgSGSiofemissions.*
• Thisrepresents75%fewergreenhousegasemissions,whichisjus5fiedbyelimina5on
oftheemissionsemana5ngfromtheuseofchemicals,aswellas,energyconsump5on
fromtheaddi5onalpurifica5onstep.
HPQ - SILICONR E S O U R C E S
*Source:R.Glöckner.M.deWild-Scholten.Energypayback-meandcarbonfootprintofElkemSolarsilicon.27thEuropeanPhotovoltaicSolarEnergyConferenceandExhibi5on November2016–Page25
PUREVAP™RECAPHPQ - SILICONR E S O U R C E S
November2016–Page26
NEWTECHNOLOGY
Technologies FeedMaterial
Traditionalelectrical
Arc-FurnacesSmelters
SiemensHC FBRReactorwithSilane
SilicorAluminumSolventRefining
PUREVAPQRRR&DPilotPlant
PUREVAPQRRCommercialplant
CapableofTransforming Si02to MGSi SolarGradeSi SolarGradeSiCapableofUpgrading MGSito SolarGradeSi SolarGradeSi SolarGradeSi
>100 1
35,000 19,000 200 10,0007(U.S.) 70(U.S.) 100(U.S.)
4.5(China) 45(China) 75(China)245(U.S) 455(U.S.) 650(U.S.)158(China) 292(China) 488(China)
1.8 13 10 7 10 2
14.2 39.8 ? ? 14.2 7
Ferroglobe,Viridis.iQGmbH,Bloomberg
SilicorMaterials PyroGenesisCanadaInc(PRAugust2,2016)
RougOrderofMagnitudeStudybyPyroGenesis
BestinClassReportedCashCost(US$/kg)KeyGreenmatrix
KgofCo2estimatedtobeproduced(KgC02eq/kgSiproduced)
SOURCES:IEEEJOURNALOFPHOTOVOLTAICS,
VOL.5,NO.2,MARCH2015
4
CapitalCostrequirements(US$million) 665 4 38
KeyOpexmatrix
KeyCapexmatrixMinimumCapacityRequirement(MT) 6,500
CapExperKgofannualinstalledcapacity(US$/kg) 35 18
CapitalCostPerTechnologiesAvailableToProduceSGSiMaterial(all$valuesinUSD)
EXISTINGTECHNOLOGY HPQTECHNOLOGY
Numberofeffectivecompetitors 7 1