hpq - silicon · 2018. 11. 27. · $0.12 strike price warrants - feb. 19 4,375,000 $525,000 $0.25...

HPQ - SILICONR E S O U R C E S

TSX-V:HPQ

BecomingtheWorld’sLeaderinProducingLowCostGreenSolarGradeSiliconMetal

Thispresenta,onincludescertain“forward-lookingstatements”

Allstatements,otherthanstatementsofhistorical fact, includedherein, including,without limita5on,

statementsregardingfutureplansandobjec5vesofthecompany,areforward-lookingstatementsthat

involvevariousrisks,assump5ons,es5matesanduncertain5es,andanyorallofthesefutureplansand

objec5ves may not be achieved. The terms SGSI, Solar Grade Silicon and Polysilicon are used

interchangeablyandrefertohighpuritysiliconusedinthesolarpanelindustry,with99.999%purity,also

referredtoas“5N”.

These statements reflect the current expecta5ons or beliefs of HPQ-Silicon Resources Inc. (“the

Company”) and are based on informa5on currently available to the Company. There can be no

assurancethatsuchstatementswillprovetobeaccurate,andactualresultsandfutureeventscoulddiffer

materiallyfromthosean5cipatedinsuchstatements.Alloftheforwardlookingstatementscontainedin

thispresenta5onarequalifiedby thesecau5onary statementsand the risk factorsdescribedabove.

Furthermore,allsuchstatementsaremadeasofthedatethispresenta5onisgiven.

AninvestmentintheCompanyisspecula5veduetothenatureoftheitsbusiness. Theabilityofthe

Companytocarryoutitsplansasdescribedinthisconfiden5alpresenta5onisdependingonobtaining

therequiredcapital.ThereisnoassurancethattheCompanywillbeabletosuccessfullyraisethecapital

requiredortocompleteeachofthegrowthini5a5vesdescribed. Investorsmustrelyupontheability,

exper5se,judgment,discre5on,integrityandgoodfaithofthemanagementandBoardoftheCompany.

DISCLAIMERSHPQ - SILICONR E S O U R C E S

JUNE2017–Page2


HPQPUREVAPTMQRRaonestepCarbothermicProcessexpectedtoreduceproducIoncostofSolarGradeSiliconMetalbyasmuchas80%

HPQISDEVELOPINGTHEDisrupIveTechnologyinGREENSolarGradeSiliconMetal

InvestmentProposiIon

Silica SolarGrade PolysiliconQuartz SiliconMetal Brick/Ingots Solar Solar SolarSiO2 SGSi Wafer Cell Module System

99.5%SiO2 99.999%SiandHigher 99.999%SiandHigher

PROCESS#1&2PUREVAPQRR

PROCESS#3CrystallisaLon Step1 Step2 Step3

SiO299.0+%

Carbon

Silica MetallurgicalGrade SolarGrade Polysilicon

Quartz SiliconMetal SiliconMetal Brick/Ingots Solar Solar Solar

SiO2 MGSi SGSi Wafer Cell Module System

99.5%SiO2 98.5to99.5%Si 99.999%SiandHigher 99.999%SiandHigher

PresentDayProcessing-FollowedbyDownstreamManufacturing

30%ofthecostsofnewPhotovoltaicsystem 70%ofthecostsofnewPhotovoltaicsystem,(100%ofcostreductions)

PROCESS#1

Smelter

PROCESS#2

Refining

PROCESS#3

CrystallisaXonStep1 Step2 Step3

Theresultsareradicalbutthescienceissimple!

JUNE2017–Page3

ThecostcurveforSGSI(polysilicon)suggestthatlong-termsolar-gradepolysiliconpricebelowUSD15/Kgisnotfeasible.HPQandthePUREVAPTMwillchallengethat.

PolycrystallineSiliconMarket2016–2025|©AMMS|Updated:2November2016

DAQO

Elkem

OCI

Hank

ookSilicon

GCLSiemensWackerN

ünchritz

WackerB

urghau

sen

TBEA

ChinaSilicon

Othersu

rvivingCh

inesecompa

nies

HanwhaChemical

RECSiliconFBR

Renesola

Hemlock

TokuyamaMalaysiaPhaseII

GCLFBR

SMP

WackerTennessee

RECSiliconSiemens

SunEdisonFBR

TokuyamaShunan,Mitsubishi,OsakaTitanium

Est.De

man

d

-

5.00

10.00

15.00

20.00

25.00

- 450,000

Es,m

ated

variablecostincl.SG&

A($/kg)

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000Source:PVMarketOutlook,Q12016,BloombergNewEnergyFinance,18February2016('BNEF')

Supplycurveforpolysilicon,2016


PUREVAP™QRRPotenIalOpexRange

(CashCost)

2016 Average Spot Price $16.92

PUREVAP™DISRUPTIVEPOTENTIALCashCostAnalysis

.

JUNE2017–Page4

PUREVAP™TheOnlyEnvironmentallyFriendlyOpIon


JUNE2017–Page5

Debt free after gold spinout

CorporateandCapitalSummaryHPQ - SILICONR E S O U R C E S

*Independentdirectorsmayreceiveaddi,onalcompensa,onforprojectwork.

Management IndependentDirector(*)

BernardJTourillon,BAA,MBA RichardMimeau,B.Sc.Chairman,CEOandDirector Director

PatrickLevasseur PeterSmith,PhD,P.Eng.President,COOandDirector Director

NoelleDrapeau,LLL,MBA,PMP RobertRobitaille,B.A.,L.Ph.,MBACorporateSecretaryandDirector Director

FrancoisRivard DarylHodgesH.BSc,M.Sc..CFO Director

Auditors

RaymondChabotGrantThornton

TransferAgent

Computershares

Consultants

MarcelDrapeau,BA,B.Sc.Comm,LLLCompanyLawyer

MarcRicher-Laflèche,P.Geo,PhDTechnicalAdvisor(INRS-ETE)

JUNE2017–Page6

SharePrice(May29,2017) $0.135 Cashandequivalentinhand

52WeekLow $0.105 Cashvalueofwarrantsinthemoney

52WeekHigh $0.305 BreakdownofwarrantsOutstanding # $

$0.07StrikePriceWarrants-Dec.17 6,325,000 $442,750$0.07StrikePriceWarrants-Feb.18 1,800,000 $126,000$0.07StrikePriceWarrants-Jun.18 3,915,750 $274,103$0.07StrikePriceWarrants-Aug.18 5,959,000 $417,130$0.07StrikePriceWarrants-Dec.18 7,006,000 $490,420$0.10StrikePriceWarrants-Jul17 232,769 $23,277$0.12StrikePriceWarrants-Feb.19 4,375,000 $525,000$0.25StrikePriceWarrants-Jul.18 6,200,000 -$0.25StrikePriceWarrants-Dec.18 6,448,211 -$0.25StrikePriceWarrants-Feb.19 9,411,766 -

$0.25StrikePriceWarrants-March.19 2,488,234 -$0.30StrikePriceWarrants-Jan.20 8,000,000 -$0.30StrikePriceWarrants-Oct.18 2,840,909 -

$0.35StrikePriceWarrants-March18 1,462,500 -MarketCapitalization(FD): $33,423,917

Options: 11,650,000

FullyDiluted: 247,584,573

MarketCapitalization: $22,878,374

$900,000

$2,298,679

SharesOutstanding: 169,469,434

Warrants: 66,465,139

Management&Board ≈15% ≈22%(FD)KeyInvestorGroup ≈14% ≈15%(FD)Fancamp ≈3% ≈5%(FD)Institutions ≈4% ≈5%(FD)TaiwaneseGroup ≈2% ≈3%(FD)PyroGenesis ≈2% ≈2%(FD)

TOTAL ≈39% ≈51%(FD)

MajorInvestors

HPQSiliconplanstobecomeaver,callyintegratedSiliconMetalCompany

CorporateStructureandBusinessesHPQ - SILICONR E S O U R C E S

SubsidiariesBEAUCEGOLD

FIELDSINC

QUARTZ

PROPERTIESPUREVAPQRR HPQSOLAR

BTGoldOption

andJVWith

GNH

BEAUCE

GOLD

PROJECT

RONCEVAUX

GOLD

OPTION

Quartz

Quarries

Products

HighPurity

Quartz

by-products

Metallurgical

Grade

SiliconMetal

HighPurityand

SpecialtyGrade

SiliconMetal

Solar

Grade

SiliconMetal

Polysilicon

Wafersfor

SolarCells

Purity 99.99+%SIO2

98.5%to

99.5%SI

99.6+to

99.99+%SI99.999+%SI

MarketSize≤100KMT

perYear

≥2.2Million

MTperYear

≥220KMT

perYear

≥350KMT

perYear

Average

sellingprice

inKg(USD)

>$5.00

$2.20

to

$2.60

$2.80

to

$3.75

$13.00

to

$16.00

2017,2018

development

stepsforHPQ

Exploration

worktostart,

goal

delineating

resourceson

Properties

R&Dongoing,

goalremains

validating

PurevapQRR

capacityto

produce5N+

purity

Studying

business

opportunities

ofexpanding

vertical

integration

furtherdown

thePV

manufacturing

cycle

Followinglegal

settlement,

workonthis

significanthard

rockgoldproject

re-starting.Goal

istransferring

lateratcosts+

theprojectto

BGF

Divisions

Goldassetsareintheprocesstobespun

outduring2017tounlockvalue

Ownership:100%now,20%afterspinout

Followinglabscalevalidation

confirmingcapacityoftaking98.1

SiO2feedstockandproduceHigh

PuritySi,theplansaretobuilda

pilotsystemtoconfirm

commercialscalabilityandstudy

commercialopportunitiesforthis

significantmarketsegment

HPQSiliconResourcesInc.

JUNE2017–Page7

STRATEGICDEVELOPMENTAGREEMENTWITHPYROGENESIS•  PyroGenesisisdevelopingforHPQ-Silicon’sexclusiveusethePUREVAP™QRR(PatentPending)a1Step,Clean

TechprocessformakingSGSidirectlyfromQuartz,usingaplasmasubmergedarc

•  HPQ has acquired the intellectual property rights to the PUREVAP™ QRR process and will finance thedevelopmentasitrelatesexclusivelytotheproduc5onofsiliconmetalfromquartz(*)

•  PyroGenesisisbuildingandwilloverseeproduc5onfroma200TPYSGSiR&Dpilotplant

(PressreleasesAugust2,2016,September30,2015)

*PyroGenesisretainsaroyalty-free,exclusive,irrevocableworldwidelicensetousetheprocessforpurposesotherthantheproduc5onofsiliconmetalfromquartz


OutsourcingR&DAndPartneringWithTheIndustryLeader

JUNE2017–Page8


HPQPUREVAPTMSCALINGUP:MakingRapidProgress

ProofofConceptMetallurgicalTestsProgram,Scalingupresults

Thinlayerofmaterialproducedduringfirsttests

FirstnuggetofSi(99.97%SI)producedduringfinalproofofconcepttest(About0.1g)

ProcessCharacteriza,onTes,ngPhase,Scalingupresults

15testslater

Smallbeadproducedduringtest#24

Seriesofchunksof99.93%Siproducedduringtest#32(8.8g)

Seriesofchunksof99.97%Siproducedduringtest#51(8.67g)

Modifica,ondonetothePUREVAPTMQRRhavemadeitpossiblefortest51toproducethesamequan,tyofSiasintest#32,whileusingsmallerbatchsizes(55wt%less)

Thisrepresenta531%increaseinYield!

JUNE2017–Page9

MGSiliconMetal98.0%to99.5%Si

ElectricArcFurnace

MGSiliconMetalIsDissolvedInHydrochloricAcidToFormTrichlorosilane(HSiCl3)

SolarGradeSiliconMetal99.999+%Si

SIEMENSTypeReactorhave90%MarketShare

Trichlorosilane(HSiCl3)is

FurtherRefined

SolarGradeSiliconMetal“Polysilicon”99.999+%Si

PUREVAP™QuartzReducIonReactor

MarketSize(Ton) ≈350KTonsMarketSize(US$) ≈5BillionDemandGrowth ≈15%CAGRPrice(US$/kg) 12.80to15.67CashCost(US$/kg) 12.0to17.0CapexCost(US$/kg) 75to100

SolarGradeSIKeyMatrix(5NandHigher)

2015Data(SourcesCRU,GTW,IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015,Bloomberg)

MarketSize(Ton) ≈2.2MillionTonsMarketSize(US$) ≈6BillionDemandGrowth ≈6%CAGRPrice(US$/kg) 2.4to2.8CashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7to14

MGSIKeyMatrix(98%to99.5%Si)

2015Data(SourcesCRU,Ferroglobe,Bloomberg,Viridis.oq,Roskill)

AProprietary(PatentPending)One-stepProcessToMakeSolarGradeSiliconMetal

“ELEGANTINITSSIMPLICITY”

PUREVAPProcessKeyWorkingMatrix

CombineMarketSize(Ton) >2.7MillionTonsCombineMarketSize(US$) >11BillionDemandGrowth >10%CAGRCashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7(2KTPYReactor)CapexCost(US$/kg) 4(10KTPYReactor)CapexCostSourcesfromPyroGenesisCanadaRoughOrder

ofMagnitudeStudy,(CapexandOpexnumberstoberefineafterPilotPlantstartoperation)

SiO299.5%Carbon

SiO299.5%Coal-WoodChips

COMPARISONofTODAY’SPROCESSandPUREVAP™HPQ - SILICONR E S O U R C E S

JUNE2017–Page10

PUREVAP™DISRUPTIVEPOTENTIALCapexAnalysis


FollowingPilotScaleValida,onofthePUREVAP™QRRprocess;•  Thegoalwillbetomovetoacommercialphase,withanobjec5veofbuildingcapacity

capableofproducing20,000TPYofSGSiwithin5-7years

PUREVAPTMQRRUS$18.5CapExperkgofannualcapacitymatrixatPilotPlant

phasedemonstratethedisrupIvepotenIalofthetechnology

Technologies FeedMaterial

CapableofTransforming Si02to

CapableofUpgrading MGSito

KeyCapexmatrixMinimumCapacityRequirement(MT)

CapExperKgofannualinstalledcapacity(US$/kg)

CapitalCostrequirements(US$million)

Numberofeffectivecompetitors

NEWTECHNOLOGY

SiemensHC SiemensHyperPure

FBRReactorwithSilane

SilicorAluminumSolventRefining

PUREVAPQRRR&DPilotPlant

PUREVAPQRRCommercialplant

SolarGradeSi SolarGradeSiSolarGradeSi

(4N-6N)ElectronicGradeSi

(8N-9N)SolarGradeSi

(5N-6N)SolarGradeSi

(6N-7N)1

19,000 200 10,00070(U.S.) 100(U.S.) 100(U.S.)45(China) 75(China) 75(China)455(U.S.) 650(U.S.) 650(U.S.)292(China) 488(China) 488(China)

(all$valuesinUSD)

7

6,500

35

665

EXISTINGTECHNOLOGY

18 4

4 38

HPQTECHNOLOGY

1

CapitalCostPerTechnologiesAvailableToProduceSGSiMaterial

SOURCES: SilicorMaterials PyroGenesisCanadaInc(PRAugust2,2016)

RoughOrderofMagnitudeStudybyPyroGenesis

IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015

JUNE2017–Page11

Phase 1: Detailed Engineering

Process Engineering

Mechanical Engineering

Electrical Engineering

Automation Engineering

Phase 2: Pilot Plant Fabrication

Equipment Sourcing

Equipment Delivery & Inspection

Fabrication, Assembly & Installation

Sep-17 Oct-17 Nov-17Task Name

Sep-16

ScheduleOct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17


DesignandPilotPlantFabrica,onSchedule

Phase3:HotcommissioningofPilotPlantschedulefromNov2017

Phase4:Tes,ngandOpera,ngPilotPlantschedulefromMarch2018

JUNE2017–Page12

PUREVAP™PILOTPLANT:CAPITALNEEDS,TIMING

Thetotalcost topurchaseandcommissionthePUREVAPTMQRRPilotPlantandrelatedIntellectualPropertyisCDN$8,260,000tobeinvestedbetween08/2016en12/2018:•  $1,000,000forpurchaseoftherelatedIntellectualProperty(Completed)•  $4,430,000fordesign,fabrica5on,assembly,andtes5ng($3,190,200Completed,$1,239,800byNov-2017)•  $520,000forhotcommissioningofthepilotsystem(TobepaidFromDec-2017toFeb-2018)•  $2,310,000fortes5ngandopera5ngthepilotsystemduring10months(TobepaidFromMarchtoDec-2018)

TheProjectedCashcalloverthenext24monthsare:•  $1,499,800for2017,(TobepaidFromOctober2017toDecember2017)

•  $2,570,000for2018

HPQSiliconfundingadvantages:

•  Theprojectiseligibleforgovernmentfunding(ProvincialandFederal)for55%to80%ofthecost

§  DiscussionwithbothlevelsofGovernmentareongoing,butapprovalsareonlyexpectedduringQ32017

•  OverCDN$2,300,000worthofwarrantsareinthemoney,majorityinfriendlyhands

•  Theacquisi5onofPUREVAPTMIntellectualpropertyopensupaddi5onalop5onsforfinancing

becauseinvestorswanttoseedirectcontroloverthekeyintellectualproperty

•  Managementisexploringseverallikelynon–dilu5vepathsforfinancingthePilotPlant

§  Ifthesharespricesexceed$C0.40,thenoverCDN$11,2Millioncouldberaisedviawarrantexercises

•  HPQwillbeen5tledtoR&Dresearchcreditsworthabout14%oftheCDN$7,260,000investment


JUNE2017–Page13

HPQ–PUREVAP™RAWMATERIALHPQ - SILICONR E S O U R C E S

•  HPQ-SiliconisthelargestholderofHighPurityQuartzproper,esinQuebec,withover3,500Haunderclaims

•  TheRoncevauxHighPurityQuartz,withitupto3Npurity(99.9%SiO2)samplesisinhigh

demand,andhassuccessfullypassedrigoroustes5ngprotocolsofamajorsiliconmetal

producer

•  The Mar5nville High Purity Quartz is unique and rare with samples up to 4N purity

(99.99%SiO2)

INRSTest2016ResultsJUNE2017–Page14

HPQVERTICALINTEGRATIONSTRATEGY

PlansAreToEstablishHPQQuarryOpera,onsinordertomeetourRawMaterialRequirementForFuturePUREVAP™QRRPlants.


•  For 2017, HPQ plans on developing the

RoncevauxQuartzPoten5al:

•  Keygoal,delinea,ngasignificantresource

•  A Preliminary Economic Assessment (PEA),

based on the fact that the PUREVAPTM QRR

process is the only process in theworld that

can transform 98.1% SiO2 into 99.9+% Si will

beundertakenin2018

•  Un5l its comple5on, all our financial models

will be based on purchasing the raw High

Purity Quartz required for the plants, in the

openmarketatmarketprices

•  Uponsuccessfulstartofquarryopera5onson

Roncevaux, HPQ Silicon will be a fully

integratedSiliconMetalProducer

JUNE2017–Page15

HPQ - SILICONR E S O U R C E S WhyInvestinHPQNow?

HPQIsCanada’sOnlyPublicPurePlayInvestmentIntheLucraIveSolarGradeSiliconMarket

HPQSiliconprovenbenchtestsuccessnowgradua,ngtoPilotPlant

HPQPUREVAP™ProprietarydisrupIvetechnology:•  LowOpex,LowCapex,MinimalCarbonFootprintandEnvironmentallyfriendly

•  Lessthan20%oftheIndustry’scashcost,•  5%ofIndustryCapex,and•  Es,mated75%reduc,onincarbonfootprint•  NoNastyby-products(Hydrochloricacid(HCI)/H2/SiliconTetrachloride(SiCI4))

•  200TPYPilotPlantalmostcompletedandtalkingtopoten,alindustrypartners•  Theonlyonestepprocessintheworldthatcantakelowqualityfeedstock

(98.1%SiO2)andproduceHighPuritySiliconMetal(99.97%Si)

JUNE2017–Page16


PUREVAPTM“FeedstockFlexibility:AVisibleAdvantage”

LowPurityFeedstock98.14%SiO2

HighPurityFeedstock99.9+%SiO2

Appendix:SupporIngSlides(slides17-23)

SIMPLEPUREVAPTM1-STEPPROCESS“ELEGANTINITSSIMPLICITY”

+PlasmaArc

Silicon

Vacuum

Impuri,es

ONESTEP

QuartzReduc,onReactor•  Quartzreduc5onwithcarbonusingplasmasubmergedarc

•  Siliconrefiningundervacuumtoremoveimpuri5es

VacuumArcFurnace•  Reachingverylowairpressurelevel

ü  (mbar)•  Veryhightemperatureplasmaarc

ü  +3500degC•  Resul,nginvaporizedimpuri,esbefore

Sicanvaporizeü  P,K,Mg,Zn,Ca,Mn,Pb,Al,Fe,etc


SolarGradeSiliconMetal“Polysilicon”JUNE2017–Page18

PUREVAP™TheOnlyEnvironmentallyFriendlyOpIon

CarbonFootprint75%LowerThanConven,onalProcess.ThePUREVAP™QRRprocessises5matedtogenerate14.1kgCO2eq/KgSGSi;

TheSiemensprocess(theindustrystandard)normallygenerates54.0kgCO2eq/

KgSGSiofemissions.*

•  Thisrepresents75%fewergreenhousegasemissions,whichisjus5fiedbyelimina5on

oftheemissionsemana5ngfromtheuseofchemicals,aswellas,energyconsump5on

fromtheaddi5onalpurifica5onstep.


*Source:R.Glöckner.M.deWild-Scholten.Energypayback4meandcarbonfootprintofElkemSolarsilicon.27thEuropeanPhotovoltaicSolarEnergyConferenceandExhibi5onJUNE2017–Page19

PUREVAP™EnvironmentallyCompeIIveAdvantage


China’scoalintensiveelectricitygridmeansthat

makingsiliconsolarpanelsthere‒althoughCheaper‒leavesacarbonfootprintalmosttwice

aslargeasthatmakingitinEurope.Source:StudyledbyFengqiYouatNorthwesternUniversity(NatureV510,19June2014)

Tradi5onalprocessoftransformingquartzin

solargradesiliconmetalrepresentthebiggest

contribu5ngsourcetothelifecycleofCO2

emissionsforsolarenergy

ADVANTAGEPUREVAP™GOINGFORWARD,ASMOREANDMORESOLARPRODUCERWILLBEASKTOCONSIDERTHELIFECYCLECO2FOOTPRINTOFTHEIRPROJECTS

JUNE2017–Page20

GrowthinMGSiConsump,onExpectedtoAcceleratefromHistoricalLevels

KMT

$/t

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

WesternWorld China

RisingMGSiDemandExpectedtoDrivePriceRecoveryin2017-2020

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

USA Europe Source:CRU2015,Ferroglobe

Note:Siliconconsump4on,pricing,andcapacitydataarefromCRU.

Japan


GROWINGMETALLURGICALGRADESILICONMETALMARKET

n  MGSi2015consump5onwas2.2MillionTons;

•  >$US6billioninworldwidesales

n  Demandisexpectedtogrowat6.0%CAGRfrom2016–2020

n  CRU forecasts a 2017-2020 price recovery for MG SidrivenbyrisingMGSidemand

n  In 2015, 15%ofGlobalMGSi (98.5% Si) produc,onwas further refined to Solar Grade Si (SG Si, or“Polysilicon”)at99.999%(5N)purity

•  350KTonsofSGSiwassoldin2015(≈$US5Billion)

n  Growthwill be largely driven by the growing demandforSolarGrade(SG)Si(Polysilicon)materialtobeusedinPhotovoltaic(PV)solarpanels

n  EachWax(W)ofenergyproducedbyaPVsolarsystemdemands≈5grofSGSi

n  GTMResearch es5mates that Installed PV demand togrowth 15 % - 23 % annually, represen5ng about 10Gigawax(GW)peryear

n  Significant SG Si Deficit are forecast from 2017 on asGigawax(GW)producewithSolarpanelsincreases

JUNE2017–Page21


JUNE2017–Page22

4 © REC Silicon ASA. All rights reserved. Confidential

Very Strong Growth in PV Demand

March 16, 2017

20.0

27.331.6

38.743.7

57.7

77.3 79.382.1

90.5

97.3

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E

GW

PV Installations by Region

Europe Africa and Middle East Americas China India Japan ROW› China still most important market, but reduced installations in coming years

› India and other emerging markets continue to grow

› Long term market outlook is increasingly geographically diversified

Results based on IHS Markit, Technology Group, PV Demand Market Tracker, Q4 2016. This data is not an endorsement of REC Silicon. Any reliance on the results are at the third party’s own risk. Visit www.technology.ihs.com for more details.

LowSGSi(Polysilicon)Produc,onLimi,ngPVGrowth

Source: Demand Data Installations: GTM Research, PV Pulse, January 2016 Supply Data: Competitor releases, industry analysts, REC Market Intelligence

Semi Semi Semi Semi Semi

ROW ROW ROW

China Top 3

China Top 3 China Top 3

China Top 3

China Top 3

Other China Other China Other China

Other China

Other China

41GW

59GW 64GW

78GW

0

100

200

300

400

500

2014 2015 2017 2018

Poly

silic

on (k

MT)

SG Si (Polysilicon) Supply/Demand Forecast

2016

Total SG Si Demand

(70)

(60)

(50)

(40) ROW

ROW

(30)

(20)

(10)

0

10

20 95GW

2014 2016 2017 2018

Poly

silic

on (k

MT)

SG Si (Polysilicon) Market Balance Forecast

2015

Supply Excess Supply Deficit


JUNE2017–Page23

3000 Omer-Lavallée St, Suite 306 Montreal, Quebec, CANADA, H1Y 3R8 Tel: +1 514 846 3271 Fax: +1 514 372 0066

www.hpqsilicon.com

CONTACT

Bernard J. Tourillon, B.A.A, MBA Chairman and CEO [email protected] +1 514 476-2133

Patrick Levasseur President, COO and Director [email protected] +1 514 262-9289


hpq - silicon · 2018. 11. 27. · $0.12 strike price warrants - feb. 19 4,375,000 $525,000 $0.25...

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