Company Overview

Company Overview

Corporate

A-Cap Energy Limited (A-Cap) is an ASX-listed (ASX: ACB) minerals exploration company currently progressing its diversified minerals strategy. The Company’s strategy is to diversify its minerals portfolio focussing on the acquisition of cobalt-nickel laterite projects. The Wilconi Project represents the Company’s first cobalt-nickel laterite project and, after completion of project and development funding, the Company aims to supply cathode materials to the battery industry.

A-Cap is dual listed on the following publicly traded stock exchanges:

  1. Frankfurt Stock Exchange from May 2019; and
  2. Botswana Stock Exchange from September 2006.

Diversified Minerals Strategy

The Board’s diversified minerals strategy is focussed on the significant growth expectation in cathode materials supply to the OEM automotive and battery industries. The Company is committed to becoming a relevant supplier to the OEM automotive and battery industries.

The Wilconi Project represents the Company’s first cobalt-nickel laterite project interest. The Wilconi project resource has been remodelled as a primary cobalt deposit with nickel as a by-product. The Company aims to establish key strategic and commercial relationships to take advantage of new materials processing and refinery technologies, particularly in production of cobalt and nickel sulphates products used directly in battery manufacture.

The cobalt industry is responding to an anticipated demand increase driven predominantly by the EV battery industry. McKinsey Minespan estimates that the industry could add capacity expansions of between 110 and 120kt by 2025, bringing the total potential mine supply to 225 to 235kt (refer Figure 1). Approximately 40 to 45kt of cobalt mine capacity additions are expected to come from two projects, both in the Congo – Glencore’s Katanga Mining Joint Venture and Metalkol Roan Tailings Reclamation. The DRC represents 70% of global mine supply of cobalt. Given the increasing supply exposure in the DRC, the proposed development of new cobalt projects in Australia are a direct response to the anticipated shortfall in mine capacity supply.

The cobalt commodity spot price can be expected to be volatile as it will be linked to the speed and rate of adoption of all batteries EV and battery chemistries. Cobalt has in the past been dominantly a by-product of nickel and copper mining. China still dominates the world in battery making capacity, currently making up over fifty percent of global lithium-ion battery production.

1- McKinsey & Company, Lithium and Cobalt -a tale of two commodities, Metals and Mining June 2018

A-Cap’s key strategic and commercial relationships will be pivotal to the Company’s implementation of its diversified minerals strategy. The Company intends to introduce the Wilconi Project to strategic product supply partners identified in China, Europe and the United States.

The Company’s Letlhakane uranium project located in Botswana remains an important project asset within the diversified mineral strategy. While the nuclear industry is confident in the long-term fundamentals of uranium and nuclear power, there is less certainty in the short term with industry expectation that the market will gradually move towards balance from calendar year 2023.