Recyclico Battery Materials Inc. (AMYZF)

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American Manganese Inc. invites you to view the following Article by Ken Reser:

Manganese: Confusions & Clarifications

Recently more than a few news articles have been coming forth regarding Manganese, more specifically worldwide Ore prices declining by 40% over the past few months. BHP recently dropped their ore prices by a further 14%. Recent commentaries have little to do with American Manganese Inc.’s (TSXV: AMY) Artillery Peak project scope, success or its viability. With that in mind I will give a few clarifications for those so interested.

Firstly, Electrolytic Manganese Metal (EMM), which is the “Purest Form” of Manganese Metal, is the main (one of) end product(s) of Artillery Peak. (Currently Kemetco Laboratories is testing for AMY to have potential Electrolytic Manganese Dioxide (EMD) production for the Li-Ion Manganese Battery Industry).

Secondly, it is not the raw Manganese ore, Ferro-Manganese, or Silico-Manganese that American Manganese Inc. (AMY) will be producing and marketing.

*Manganese Raw Ore (worldwide) is currently trading @ $0.10/lb.

*EMM is currently trading in the USA @ $1.79/lb.

*EMM is currently trading in Beijing @ $1.45 lb.

*EMM is currently trading in Rotterdam @ $1.31/lb. (price has only dropped from $1.50/lb. this year)

There are other factors that should be considered by those who hold an interest in this Company as well. The ore at Artillery Peak is somewhat unique in the fact that it is what the mining industry refers to as ‘Friable”. That is to say it requires no grinding and crushing mills before the metal can be leached or recovered and is a carbonate ore with no “Impurities” such as Iron, Copper or Selenium etc. These factors make for a much less expensive recovery process as well as huge Capex cost savings.

With Kemetco Laboratories pilot plant tests complete AMY appears to be on track to potentially become the lowest cost producer of EMM in the world. It is obvious that China who produces 98.5% of the world’s EMM, with their high costs of production can’t compete when they receive raw ore from around the world before the actual refining takes place and then ship it again to end users. Also to be remembered is the 20% export duty China places on EMM shipments and the 14% import duty the US places on the metal. China’s cost of EMM production is currently between $1.10 to $1.20/lb., a far cry from that of Artillery Peak.

With the worldwide decline in Manganese Ore prices over the last few months it only makes sense that this will further make Artillery Peak’s low cost EMM production more viable for domestic end users. As well, exports from some off-shore mines are shutting down raw ore production and refineries are curtailing raw ore imports due to higher costs of production and less demand due to low steel prices.

There is “No” substitute for Manganese used as an alloy in the Steel industry. Then you must also factor in the demand for the Aluminum industry, the rapidly expanding Lith-Ion Mn Battery industry, as well as the Chemical industries which also must have EMM for their production.

Without Manganese for Steel, the World Stops…I say, without EMM, the world stops. With the success of Artillery Peak, the USA is about to have its first and “ONLY” domestic supply of this much needed pure metal without fear of what China or any other nation decides to do in the future.

Ken Reser;
[e-mail]
Office: 403-844-2914

Disclaimer: Ken Reser is a paid IR Consultant to American Manganese Inc. and owns shares of the aforementioned Company.



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