MOX Morien by the Charts Where Business Meets Mining January 2020 - PowerPoint PPT Presentation

TSX-V MOX Morien by the Charts Where Business Meets Mining January 2020

Forward Looking Statements Some of the statements made by Mo Mori rien Re Resou ources Co Corp. (“Morien”) in this presentation may constitute "forward-looking information" as defined under applicable securities laws. These statements reflect Morien's current expectations of future revenues and business prospects and opportunities and are based on information currently available to Morien. Morien cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Morien currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in Morien’s annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com). Morien cautions that its royalty revenue will be based on production by third party property owners and operators who will be responsible for determining the manner and timing for the properties forming part of Morien’s royalty portfolio. These third party owners and operators are also subject to risk factors that could cause actual results to differ materially from those predicted herein including: volatility in financial markets or general economic conditions; capital requirements and the need for additional financing; fluctuations in the rates of exchange for the currencies of Canada and the United States; prices for commodities including gold, coal and aggregate; unanticipated changes in production, mineral reserves and mineral resources, metallurgical recoveries and/or exploration results; changes in regulations and unpredictable political or economic developments; loss of key personnel; labour disputes; and ineffective title to mineral claims or property. There are other business risks and hazards associated with mineral exploration, development and mining. Although Morien believes that the forward-looking information contained herein is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Morien expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. Unless otherwise indicated, all dollar values herein are in C$. w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 02

Corporate Snapshot MOX 52.9 mln 55.6 mln $25 mln $3.5 mln nil TSX-V Shares o/s Shares f/d Market cap Working cap Debt 16% Donkin Coal Board & Management 41% Project 11% Retail The Cline Group 4% Black Point Institutional Aggregate Project 28% (Holding > 1%) High Net Worth Retail w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 03

Board of Directors John P. A. Budreski Charles G. Pitcher John P. Byrne J. William Ritchie • 30+ years of extensive capital • 40+ years experience in • 30+ years of investment • Mr. Ritchie’s distinguished markets and executive operations, engineering, banking and corporate career includes having been management experience management and mining finance experience chair and CEO of Scotia Bond project development • Former Head of Investment • President of Petroleum Ltd., as well as being one of Banking for Scotia Capital. • Former President of Wilson Corporation of Canada the founders of Keltic Savings Formerly Vice Chairman of Creek Coal in Pennsylvania, Exploration Ltd., which Corporation Limited. Cormark Securities Inc. and and former President & CEO helped finance Enerplus • Over the years, Mr. Ritchie prior to that, President and of Western Canadian Coal Energy Services Ltd. for has served on boards of CEO of Orion Securities Inc. where he led the which Mr. Byrne served as companies including Empire acquisition, development its Vice Chairman • Director of EnWave Company Ltd., Sobeys Inc., and startup of major coal Corporation, Sandstorm Gold • Former senior executive and DHX Media Ltd. projects in western Canada. and NuLegacy Gold with Levesque Beaubien • Inducted into the Nova Scotia Geoffrion (now NBF) Business Hall of Fame in 2010 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 04

Morien’s Three Pillars Donkin Coal Mine Black Point Aggregate Capital Allocation Royalty Project Royalty Strategy Dividend NCIB Project Generation 2% to 4% production Per-tonne production Disciplined strategy to § § § royalty royalty (undisclosed) drive higher returns on invested capital Operation ramping up Production decision in § § toward full production Q2 2020 No debt § w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 05

Morien’s Approach to Business 1. Maintain and grow the dividend commensurate with growth in royalty income; 2. Grow its portfolio by acquiring additional long-life, cash- flowing royalties in the bulk commodity and industrial mineral sectors in North America; and 3. Continue increasing individual shareholder value in Morien through its annual normal course issuer bid program. w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 06

Overhead Costs (G&A) Down 38% $1,200,000 Corporate Overhead Costs (G&A) $1,000,000 $800,000 $600,000 $400,000 $200,000 2019 2013 2020 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 07

Common Shares Down 13% Since 2015 60,000,000 Total Common Shares Outstanding 57,500,000 55,000,000 52,500,000 50,000,000 2019 2015 2020 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 08

Management Ownership Up 10% Since 2013 16% Management & Directors 14% Ownership 12% 10% 8% 6% 4% 2% 0% 2019 2013 2020 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 09

Number of Shareholders Down by 58% Since 2013 3,500 Total Number of Shareholders 3,000 2,500 2,000 1,500 1,000 500 - 2013 2019 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 10

2019 Cash Flow Summary Increase Decrease Total $6,000,000 $400,000 $940,000 $5,000,000 ($660,000) $110,000 $810,000 ($530,000) $4,000,000 $3,485,000 $3,300,000 ($750,000) ($135,000) $3,000,000 $2,000,000 $1,000,000 $0 Working Capital Black Point Royalty Asset Sale Option Proceeds Dividends NCIB Working Capital Overhead Costs (G&A) Project Generation 9 y e s A s B 9 Donkin Royalty 1 d t d 1 … l 1 & I a l C e n 0 a 0 t S G N … e e 2 y n 2 d o c d / t / i o c 1 o 1 R n i v e P r 0 a 3 01/01/2019 12/31/2019 i n P j L D / / k o i 1 2 k n c r 0 1 P n a o l o i B t D p O (1) The reported 2019 Donkin royalty of $810k is an estimate only; Morien’s Q4-2019 Donkin royalty payment is not due until February 15, 2020 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 11

Coal Markets – A Reality Check w w w . m o r i e n r e s . c o m | T S X - V : M O X

Global Seaborne Coal Trade Up 3% in 2018 Total volume of coal traded on global seaborne market from 2010 to 2018 (in million metric tons) 1240 1216 1203 1182 1138 1142 1119 1000 930 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: S&P Global Platts data (no distinction made between thermal and metallurgical coal) w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 13

Why? … Growth in Global Energy Demand ▸ Driven by Increasing Prosperity and Improving Living Standards in Fast- Growing Emerging Economies Global Energy Consumption; 1970 to 2040 20 Billion Tonnes (oil equiv.) 15 10 5 Bi - 1970 1980 1990 2000 2010 2020 2030 2040 Source: BP 2018 Energy Outlook w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 14

Thermal Coal - A Dominant Energy Source ▸ Global electricity demand grew 2.3% in 2018, the fastest pace in a decade ▸ It is currently not possible to decarbonize the power sector fast enough to offset the global growth in power demand Power Generation Fuel Mix; 1970 to 2040 20 Renewables Hydro .) onnes (oil equiv.) Nuclear 15 Billion Tonnes (oil equiv Coal Gas 21% 23% 10 28% Oil 33% Billion T 25% 28% 27% 5 30% - 1970 1980 1990 2000 2010 2020 2030 2040 Source: BP 2018 Energy Outlook w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 15

Renewable Energy ▸ Renewable energy demand grew 14% per year over the last 5 years Renewables includes wind, solar, geothermal, biomass, and biofuels. w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 16

Renewable Energy Put Into Perspective ▸ … and now accounts for 4% of global energy consumption Renewables includes wind, solar, geothermal, biomass, and biofuels. w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 17

Metallurgical Coal – Essential for Steel Construction w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 18

Rising Annual Global Steel Production ▸ Every Ton of Steel Needs 0.7 Tons of Metallurgical Coal (in Millions of Metric Tons) 1809 1730 1669 1650 1627 1620 1560 1538 2011 2012 2013 2014 2015 2016 2017 2018 w w w . m o r i e n r e s . c o m | T S X - V : M O X Page | 19