Suvo Strategic Minerals Ltd.

Arrowhead is updating its coverage on Suvo Strategic Minerals Limited (Suvo, SUV, or the Company) with a fair value bracket of AUD 0.12 per share to AUD 0.19 per share (share price on June 05, 2024: AUD 0.052) based on a Sum of Parts (SOP) methodology.

• Suvo generated AUD 3.1 mn in revenue in Q3 2024 with sales of 5,321 tons, resulting
  in an average selling price of AUD 588 per ton. During Q3, SUV received purchase orders from five new customers totaling 730 tons, generating an additional AUD 0.63 mn in annual turnover.
• Suvo finalized a sales agreement with Fagron, a European pharma company, to supply 300 metric tonnes of hydrous kaolin over 3 years for a sum of AUD 588k; the deal will enable Suvo to command premium pricing and expand its sales into the European pharma market
• Suvo signed a non-binding MoU with PERMAcast and Dowsing to develop low-carbon concretes for deployment in various end-use markets serviced by these companies
• Suvo executed a non-binding term sheet with PERMAcast to enter into a joint development agreement (JDA) and incorporate a joint venture to develop and commercialize low carbon geopolymer concrete (GPC) products
• In late April 2024, Suvo successfully completed trial pours of Colliecrete, facilitated by
  Dowsing at Peel Resources facility (a waste management company in Western Australia); this demonstrated scalability and application of Suvo’s low-carbon geopolymer concrete; (7) SUV ppointed Dr. Anda and Mr. Snowsill on a part-time yet formal arrangement to accelerate the commercialization of its geopolymer concrete; Moreover, Mr. Aaron Banks was appointed as the executive chairman to advance the development of its geopolymer IP; (8) Suvo raised a total of AUD 4.5 mn through placement and SPP to support the ramp-up of Pittong operations and to advance its geopolymer initiatives.

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News Release:

• Suvo Strategic Minerals is pleased to announce that it has executed a non-binding term sheet with Polvine Pty Ltd (PERMAcast). The term sheet provides a 30-day exclusivity period whereby Suvo and PERMAcast will negotiate and execute a binding Joint Development Agreement (JDA) for the delivery of low carbon geopolymer concrete (GPC) products and projects.
• Suvo and PERMAcast propose to deliver low carbon GPC products and projects and otherwise commercialize the IP created under the JDA through the SPV Entity, in which Suvo and PERMAcast will each hold 50% of the shares issued.
• The proposed JDA terms stipulate that PERMAcast will provide all the necessary capital funding required. whilst leveraging their expertise to fast-track Suvo’s the commercialization process and industry validation, while both retain their existing intellectual property rights.

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Video Highlights:

• Suvo Strategic Minerals interim CEO Bojan Bogunovic and non-executive chairman Aaron Banks joined Proactive’s Stephen Gunnion with a rundown of the company’s quarterly activities report, highlighting revenue of AUD3.1 million for the quarter ended 31 March, 2024, from the sale of 5,321 tonnes of hydrous kaolin.

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Report Highlights:

• During the quarter, Suvo generated AUD 3.1 million in sales, up 15% compared to FY23 quarterly average. New purchase orders for hydrous kaolin from the Pittong operation weighing 730 tonnes generated an additional AUD 0.63 million in annual turnover.
• Five new customers buying at AUD 863/tonne and over 20 potential end users throughout Asia Pacific continuing to test the product samples of Suvo’s hydrous kaolin indicates market expansion as projected.
• Suvo successfully completed a Placement and Share Purchase Plan (Capital Raise), raising AUD 4.5 million to commercialize its low carbon geopolymer concrete formulation, “Colliecrete”, which achieves a 50% reduction in GHG compared to Ordinary Portland Cement (OPC).

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Release Highlights:

• Suvo successfully completes a series of 5 x 2m3 trial pours of Colliecrete, a low carbon geopolymer concrete, in preparation for the Bunbury Outer Ring Road Project (BORR).
• Colliecrete achieves a GHG emissions reduction of approximately 50% compared to Ordinary Portland Cement (OPC), the single largest source of global emissions, equivalent to the entire global car fleet.
• The trial pours demonstrate scalability and application (moving from lab scale trials to a series of 5 x 2m3 pours) of low carbon geopolymer concrete to Dowsing and PERMAcast.

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Suvo Strategic Minerals Ltd non-executive chairman Aaron Banks discusses latest developments with Colliecrete

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