Interview with Chris Showalter, Director & CEO of Lifezone Metals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/lifezone-metals-nyselzm-powering-the-ev-revolution-with-clean-nickel-technology-in-tanzania-6232

Recording date: 20th December 2024

Lifezone Metals has strengthened its position in the nickel market with a significant resource upgrade at its Kabanga project in Tanzania. The company recently announced a 20% increase in contained nickel in measured and indicated resources, reaching 46.8 million tons at 2.09% nickel grade, including over 3 million tons grading above 3% nickel.

The Kabanga project, which has seen over $200 million invested in drilling to date, has emerged as one of the highest-grade undeveloped nickel deposits globally. The project's resource base is notably well-defined, with more than 80% classified in the measured and indicated categories – an uncommon achievement for a development-stage project.

Lifezone has made substantial progress in securing financial backing for Kabanga's development. Mining giant BHP has joined as a strategic partner, while discussions are advancing with the U.S. International Development Finance Corporation (DFC) for political risk insurance. The company has also signed an MOU with Japan's JOGMEC to facilitate nickel marketing to Japanese end-users, potentially opening doors for additional strategic partnerships.

On the technical front, Lifezone has successfully demonstrated its processing capabilities, producing high-purity battery-grade nickel and cobalt products from Kabanga ore samples. This achievement marks the first time Kabanga's nickel has been processed to a final refined end-product, validating the company's hydromet processing technology.

Beyond Kabanga, Lifezone is diversifying through its recycling business. The company has formed a 50/50 joint venture with Glencore to recover valuable metals, including PGMs, nickel, cobalt, and copper, from recycled batteries and end-of-life vehicles in North America. This venture aims to streamline the currently fragmented battery recycling supply chain through vertical integration.

CEO Chris Showalter emphasizes the strategic importance of Kabanga's high-grade resource in an increasingly competitive market, particularly given Indonesia's dominant position in global nickel supply. The project's superior grade is expected to enable lower-cost production and reduced environmental impact compared to peers.

The investment case for Lifezone Metals centers on its exposure to growing nickel demand from the electric vehicle sector, anchored by a high-grade resource and clear financing strategy. With both the Kabanga project and recycling business advancing, near-term catalysts include the completion of Kabanga's definitive feasibility study, financing milestones, and recycling business developments.

View Lifezone Metals' company profile: https://www.cruxinvestor.com/companies/lifezone-metals

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