IBC Corporate Presentation

Investor Relations

ibc-advanced-alloys-corp
  • 1. Specialty Alloys & Engineered Materials A Platform For Growth Corporate Presentation October / November 2014 TSX-V: IB OTCQX: IAALF
  • 2. 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 2 TSX-V: IB OTCQX: IAALF
  • 3. IBC Advanced Alloys Corp. Contents 3 TSX-V: IB OTCQX: IAALF IBC - Business Markets / Products Future Growth
  • 4. IBC - Business •Proprietary manufacturing process; •Sustainable competitive advantages; •Existing $17M year business; •Historical gross margins up to 25%; •Value add high margin growth opportunities. IBC manufactures specialty alloys and advanced materials for the aerospace, automotive and other high performance industries. •2014 new products and alloys; •100% revenue growth with minimal capex. •Proprietary casting technology; •Substitution opportunity for high cost machined parts. 4 TSX-V: IB OTCQX: IAALF Targeting profitability calendar year end 2014
  • 5. IBC-Business Beryllium (Be): • Rare metal with unique characteristics. • Excellent thermal conductivity; • Weight by weight, stiffer than steel; • Second lightest metal (after lithium); • High melting point with excellent thermal conductivity. • Use as pure metal or an alloy with copper or aluminum to: • Increase hardness; • Dramatically reduce weight; • Improve thermal conductivity. 5 TSX-V: IB OTCQX: IAALF What is Beryllium?
  • 6. IBC - Business 1. Manufacturing 2. R&D Copper Alloys Products: •Beryllium Copper •Chrome Copper •Aluminum Bronze •Specialty Copper Alloys Products: •Beralcast® - castable Be/Al •ABX™ - castable Al/Be alloy for commercial applications. •Casting technology •Engineered Materials: New alloys in development. •Nuclear fuels* 6 TSX-V: IB OTCQX: IAALF Engineered Materials *Purdue University, Texas A&M University, Massachusetts Institute of Technology
  • 7. Automotive Oil & Gas Electronics High End Plastics Copper Alloys – Markets Injection molds for wide range of parts Large Rings Down Hole Tubing Directional Drilling Electrical Connectors Industrial Motors Robotic Equipment High performance Injection molds liners 7 TSX-V: IB OTCQX: IAALF IBC - Business
  • 8. Aerospace & UAV Defense Manufacturing Specialized Replacement Materials Engineered Materials – Markets Cast Components and sub-structural parts Weapons Infrared Systems Optical Targeting High Performance Core Components Replacement for aluminum, titanium & advanced composites 8 TSX-V: IB OTCQX: IAALF IBC - Business
  • 9. IBC Plant Locations 9 TSX-V: IB OTCQX: IAALF FACILITY LOCATION AREA (m2) AREA (sq. feet) LEASED/ OWNED Copper Alloys Franklin, IN 4,800 48,800 Owned Copper Alloys Royersford, PA 1,500 16,000 Leased Copper Alloys New Madrid, MO 2,500 26,500 Owned Engineered Materials Wilmington, MA 5,800 63,000 Leased IBC - Business
  • 10. Current Facilities & Revenues 10 TSX-V: IB OTCQX: IAALF Current •3 facilities; •Operating at 70% with single shift; •Currently delivers approximately 85% of overall revenues; •Historical gross margins of up to 25%; •$30M capacity as configured. •Diversified global customer base; •Sell direct and via distributors; •No customer > 10% of sales. Copper Alloys Engineered Materials Current •New advanced vacuum casting facility; •Operating at 20% with single furnace; •High margin business; •High barriers to entry; •$5M break even; •~$10M capacity as configured; •Capacity limited by furnace not plant; •Addition of up to 3 furnaces without plant expansion; •Received AS9100C certification essential for aerospace. IBC - Business
  • 11. Objectives For Facilities & Revenues 11 TSX-V: IB OTCQX: IAALF Target •Focus on constant incremental margin and yield improvements; •Develop “value add” semi finished product mix (example – CuBe rings); •Expand machining and finishing capacity; •Expand international distributor network; •Grow cast input billets business; •Introduce new alloys; •Add Indiana manufacturing capacity of 20,000 – 40,000 ft2 Copper Alloys Engineered Materials Target •Add second furnace for growth; •Additional growth capacity exists; •Add de-waxing and machining capacity; •Existing 63,000 ft2 configurable for 3-5x capacity growth; •L/T aerospace & UAV (DRONE) contracts •R&D agreements •Development contracts •Purchase orders; •Increase profile in automotive and high tech industries. IBC - Business
  • 12. Growth Drivers 12 TSX-V: IB OTCQX: IAALF •New products and alloys; •Machining capacity to offer wider range of semi finished products; •Expansion of distribution channels; •Focus on business development; •Plant and equipment upgrades. •Proprietary process for delivering proven alloy at lower cost point; •New markets, applications and alloys; •Acquisitions and joint ventures; •Materials performance awareness and substitution opportunities. Copper Alloys Engineered Materials •Nuclear fuels. •Alloys and composite development. Research & Development IBC - Business
  • 13. Lighter •22% less weight than aluminum. Faster •Weeks vs. months for machined parts. High Volume •Precision cast to simple and complex geometries. •Cast to near net shape reducing expensive machining. Low CTE •Critical in certain applications with wide operating temperature ranges. The Beralcast® Advantage 0 50 100 150 200 250 300 350 400 Steel Magnesium Titanium Aluminum Beralcast® Specific Stiffness Comparison (Modulus/Density) Cheaper •Up to 50 - 80% cheaper than machined competitive material; •Significantly improved lead times over beryllium aluminum machined parts. Stiffer •300% stiffer than aluminum. Beralcast® is an excellent material when light weight and high modulus applications are required. 13 TSX-V: IB OTCQX: IAALF Markets/Products
  • 14. Cast Performance Alloys 14 TSX-V: IB OTCQX: IAALF IBC Engineered Materials Beralcast castings offer significant advantages over machined parts. Faster delivery Suited to high volume applications Cost control / competitive pricing Markets/Products
  • 15. Nuclear fuels research with Purdue University, Texas A&M University and MIT. Nuclear fuel development MOU with GNF (GE) Provisional patents filed Expected Benefits: •Increased MW-days per ton. •Utility cost savings. •Extended fuel cycle. •Reduce waste. •Lower core temperature and lower temperature gradient across the fuel. •Enhance reactor safety. Nuclear fuels market currently: $25 billion Nuclear fuels market projected for 2020: $35 billion 15 TSX-V: IB OTCQX: IAALF Nuclear Fuels Opportunity
  • 16. The Opportunity •Existing $17M business; •Copper Alloys division is cash flow positive; •Historical gross margins of up to 25%; •Introducing high margin semi- finished products; •Targeting continued growth. •Beryllium aluminum proven and widely used material; •IBC’s casting process provides opportunity to substitute machined parts with castings; •Management estimates for castings are $200M annually; •Enormous market potential. Copper Alloys Engineered Materials 17 TSX-V: IB OTCQX: IAALF Future Growth
  • 17. Corporate Information October 15, 2014 Inception 2007 Head Office Vancouver F2012 Revenues $25.5M F2013 Revenues $20.9M F2014 Revenues $16.9M TSX-V:IB 100 Day Average Daily Vol. 163.5K 100 Day High/Low Close $0.22 - $0.12 OTCQX:IAALF 100 Day Average Daily Vol. 53.0K 100 Day High/Low Close $0.207 - $0.11 19 TSX-V: IB OTCQX: IAALF Corporate Summary
  • 18. Options 5,903,333 Exercise Price C$ Amount 0.14 2,005,000 0.15 3,755,000 0.90 16,667 1.02 58,334 1.08 51,666 1.56 33,333 Share Structure To October 15, 2014 Shares Outstanding 80.6M Fully Diluted* 110.7M Market Cap $9.7M 20 TSX-V: IB OTCQX: IAALF Corporate Summary Warrants Expiry Date Financing Warrants Broker Warrants Price C$ 28-Feb-15 0 120,699 0.12 28-Feb-15 14,590,097 171,459 0.18 13-May-15 0 40,383 0.12 13-May-15 576,900 0 0.18 13-Mar-16 7,500,000 1,027,289 0.24 Total 22,666,997 1,359,830
  • 19. Management & Directors Anthony Dutton Director, President & CEO Finance & Strategic Advisory Background Simon J. Anderson Chief Financial Officer Chartered Accountant with public and private company experience as director / officer Major General David R. Heinz (Ret) Director Retired US Marine Corp officer. Former PEO for F- 35 JSF Program Dal S. Brynelsen Director President and CEO of Vangold Resources Ltd., Corporate Finance Jim Malone Vice President Nuclear Fuels, Chair, IBC Nuclear Fuels Advisory Board Former VP Nuclear Fuels for Exelon Corp. Mike Jarvis Director Former President of Franklin Power Products and Delco Remy’s Powertrain Division Alastair Neill Director Former VP Sales & GM of AMR (Neo-Material Technologies) Ray White President of IBC Engineered Materials Mark Wolma President of IBC Nonferrous Douglas Veitch Vice President of Business Development Rajeev Jain Vice President of Sales Chris Huskamp Executive VP Business & Technical Development – IBC Engineered Materials 22 TSX-V: IB OTCQX: IAALF Corporate Summary
  • 20. Specialty Alloys & Engineered Materials A Platform For Growth Contact Investor Relations: IBC Advanced Alloys Ian Tootill Director of Corporate Communications itootill@ibcadvancedalloys.com (604) 685-6263 ext. 110 TSX-V: IB OTCQX: IAALF Thank You The Howard Group Dave Burwell / Brad Dryer Senior Associate dave@howardgroupinc.com (403) 221-0915
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IBC Advanced Alloys Corp. presentation
Text
  • 1. Specialty Alloys & Engineered Materials A Platform For Growth Corporate Presentation October / November 2014 TSX-V: IB OTCQX: IAALF
  • 2. 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 2 TSX-V: IB OTCQX: IAALF
  • 3. IBC Advanced Alloys Corp. Contents 3 TSX-V: IB OTCQX: IAALF IBC - Business Markets / Products Future Growth
  • 4. IBC - Business •Proprietary manufacturing process; •Sustainable competitive advantages; •Existing $17M year business; •Historical gross margins up to 25%; •Value add high margin growth opportunities. IBC manufactures specialty alloys and advanced materials for the aerospace, automotive and other high performance industries. •2014 new products and alloys; •100% revenue growth with minimal capex. •Proprietary casting technology; •Substitution opportunity for high cost machined parts. 4 TSX-V: IB OTCQX: IAALF Targeting profitability calendar year end 2014
  • 5. IBC-Business Beryllium (Be): • Rare metal with unique characteristics. • Excellent thermal conductivity; • Weight by weight, stiffer than steel; • Second lightest metal (after lithium); • High melting point with excellent thermal conductivity. • Use as pure metal or an alloy with copper or aluminum to: • Increase hardness; • Dramatically reduce weight; • Improve thermal conductivity. 5 TSX-V: IB OTCQX: IAALF What is Beryllium?
  • 6. IBC - Business 1. Manufacturing 2. R&D Copper Alloys Products: •Beryllium Copper •Chrome Copper •Aluminum Bronze •Specialty Copper Alloys Products: •Beralcast® - castable Be/Al •ABX™ - castable Al/Be alloy for commercial applications. •Casting technology •Engineered Materials: New alloys in development. •Nuclear fuels* 6 TSX-V: IB OTCQX: IAALF Engineered Materials *Purdue University, Texas A&M University, Massachusetts Institute of Technology
  • 7. Automotive Oil & Gas Electronics High End Plastics Copper Alloys – Markets Injection molds for wide range of parts Large Rings Down Hole Tubing Directional Drilling Electrical Connectors Industrial Motors Robotic Equipment High performance Injection molds liners 7 TSX-V: IB OTCQX: IAALF IBC - Business
  • 8. Aerospace & UAV Defense Manufacturing Specialized Replacement Materials Engineered Materials – Markets Cast Components and sub-structural parts Weapons Infrared Systems Optical Targeting High Performance Core Components Replacement for aluminum, titanium & advanced composites 8 TSX-V: IB OTCQX: IAALF IBC - Business
  • 9. IBC Plant Locations 9 TSX-V: IB OTCQX: IAALF FACILITY LOCATION AREA (m2) AREA (sq. feet) LEASED/ OWNED Copper Alloys Franklin, IN 4,800 48,800 Owned Copper Alloys Royersford, PA 1,500 16,000 Leased Copper Alloys New Madrid, MO 2,500 26,500 Owned Engineered Materials Wilmington, MA 5,800 63,000 Leased IBC - Business
  • 10. Current Facilities & Revenues 10 TSX-V: IB OTCQX: IAALF Current •3 facilities; •Operating at 70% with single shift; •Currently delivers approximately 85% of overall revenues; •Historical gross margins of up to 25%; •$30M capacity as configured. •Diversified global customer base; •Sell direct and via distributors; •No customer > 10% of sales. Copper Alloys Engineered Materials Current •New advanced vacuum casting facility; •Operating at 20% with single furnace; •High margin business; •High barriers to entry; •$5M break even; •~$10M capacity as configured; •Capacity limited by furnace not plant; •Addition of up to 3 furnaces without plant expansion; •Received AS9100C certification essential for aerospace. IBC - Business
  • 11. Objectives For Facilities & Revenues 11 TSX-V: IB OTCQX: IAALF Target •Focus on constant incremental margin and yield improvements; •Develop “value add” semi finished product mix (example – CuBe rings); •Expand machining and finishing capacity; •Expand international distributor network; •Grow cast input billets business; •Introduce new alloys; •Add Indiana manufacturing capacity of 20,000 – 40,000 ft2 Copper Alloys Engineered Materials Target •Add second furnace for growth; •Additional growth capacity exists; •Add de-waxing and machining capacity; •Existing 63,000 ft2 configurable for 3-5x capacity growth; •L/T aerospace & UAV (DRONE) contracts •R&D agreements •Development contracts •Purchase orders; •Increase profile in automotive and high tech industries. IBC - Business
  • 12. Growth Drivers 12 TSX-V: IB OTCQX: IAALF •New products and alloys; •Machining capacity to offer wider range of semi finished products; •Expansion of distribution channels; •Focus on business development; •Plant and equipment upgrades. •Proprietary process for delivering proven alloy at lower cost point; •New markets, applications and alloys; •Acquisitions and joint ventures; •Materials performance awareness and substitution opportunities. Copper Alloys Engineered Materials •Nuclear fuels. •Alloys and composite development. Research & Development IBC - Business
  • 13. Lighter •22% less weight than aluminum. Faster •Weeks vs. months for machined parts. High Volume •Precision cast to simple and complex geometries. •Cast to near net shape reducing expensive machining. Low CTE •Critical in certain applications with wide operating temperature ranges. The Beralcast® Advantage 0 50 100 150 200 250 300 350 400 Steel Magnesium Titanium Aluminum Beralcast® Specific Stiffness Comparison (Modulus/Density) Cheaper •Up to 50 - 80% cheaper than machined competitive material; •Significantly improved lead times over beryllium aluminum machined parts. Stiffer •300% stiffer than aluminum. Beralcast® is an excellent material when light weight and high modulus applications are required. 13 TSX-V: IB OTCQX: IAALF Markets/Products
  • 14. Cast Performance Alloys 14 TSX-V: IB OTCQX: IAALF IBC Engineered Materials Beralcast castings offer significant advantages over machined parts. Faster delivery Suited to high volume applications Cost control / competitive pricing Markets/Products
  • 15. Nuclear fuels research with Purdue University, Texas A&M University and MIT. Nuclear fuel development MOU with GNF (GE) Provisional patents filed Expected Benefits: •Increased MW-days per ton. •Utility cost savings. •Extended fuel cycle. •Reduce waste. •Lower core temperature and lower temperature gradient across the fuel. •Enhance reactor safety. Nuclear fuels market currently: $25 billion Nuclear fuels market projected for 2020: $35 billion 15 TSX-V: IB OTCQX: IAALF Nuclear Fuels Opportunity
  • 16. The Opportunity •Existing $17M business; •Copper Alloys division is cash flow positive; •Historical gross margins of up to 25%; •Introducing high margin semi- finished products; •Targeting continued growth. •Beryllium aluminum proven and widely used material; •IBC’s casting process provides opportunity to substitute machined parts with castings; •Management estimates for castings are $200M annually; •Enormous market potential. Copper Alloys Engineered Materials 17 TSX-V: IB OTCQX: IAALF Future Growth
  • 17. Corporate Information October 15, 2014 Inception 2007 Head Office Vancouver F2012 Revenues $25.5M F2013 Revenues $20.9M F2014 Revenues $16.9M TSX-V:IB 100 Day Average Daily Vol. 163.5K 100 Day High/Low Close $0.22 - $0.12 OTCQX:IAALF 100 Day Average Daily Vol. 53.0K 100 Day High/Low Close $0.207 - $0.11 19 TSX-V: IB OTCQX: IAALF Corporate Summary
  • 18. Options 5,903,333 Exercise Price C$ Amount 0.14 2,005,000 0.15 3,755,000 0.90 16,667 1.02 58,334 1.08 51,666 1.56 33,333 Share Structure To October 15, 2014 Shares Outstanding 80.6M Fully Diluted* 110.7M Market Cap $9.7M 20 TSX-V: IB OTCQX: IAALF Corporate Summary Warrants Expiry Date Financing Warrants Broker Warrants Price C$ 28-Feb-15 0 120,699 0.12 28-Feb-15 14,590,097 171,459 0.18 13-May-15 0 40,383 0.12 13-May-15 576,900 0 0.18 13-Mar-16 7,500,000 1,027,289 0.24 Total 22,666,997 1,359,830
  • 19. Management & Directors Anthony Dutton Director, President & CEO Finance & Strategic Advisory Background Simon J. Anderson Chief Financial Officer Chartered Accountant with public and private company experience as director / officer Major General David R. Heinz (Ret) Director Retired US Marine Corp officer. Former PEO for F- 35 JSF Program Dal S. Brynelsen Director President and CEO of Vangold Resources Ltd., Corporate Finance Jim Malone Vice President Nuclear Fuels, Chair, IBC Nuclear Fuels Advisory Board Former VP Nuclear Fuels for Exelon Corp. Mike Jarvis Director Former President of Franklin Power Products and Delco Remy’s Powertrain Division Alastair Neill Director Former VP Sales & GM of AMR (Neo-Material Technologies) Ray White President of IBC Engineered Materials Mark Wolma President of IBC Nonferrous Douglas Veitch Vice President of Business Development Rajeev Jain Vice President of Sales Chris Huskamp Executive VP Business & Technical Development – IBC Engineered Materials 22 TSX-V: IB OTCQX: IAALF Corporate Summary
  • 20. Specialty Alloys & Engineered Materials A Platform For Growth Contact Investor Relations: IBC Advanced Alloys Ian Tootill Director of Corporate Communications itootill@ibcadvancedalloys.com (604) 685-6263 ext. 110 TSX-V: IB OTCQX: IAALF Thank You The Howard Group Dave Burwell / Brad Dryer Senior Associate dave@howardgroupinc.com (403) 221-0915
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