Kuniko Driving Battery Metals Exploration in Europe

• Kuniko has a portfolio of battery metals projects in Norway, Canada targeting copper, nickel, cobalt and lithium.
• Projects located in historically mineral-rich areas with little modern exploration, offering upside. Proximity to Europe gives strategic advantage.
• Kuniko management based in Norway, building local teams and relationships. Achieved carbon neutral certification for exploration.
• Recent drilling has yielded positive results at cobalt project Skuterud and nickel project Røstvangen. Still at early exploration stage, production is years away.
• Kuniko aiming to follow in major shareholder Vulcan Energy's footsteps - build partnerships and deliver exploration success over next 5 years.

Kuniko Limited (ASX: KNI) is an Australian mineral exploration company targeting a diversified portfolio of battery metals projects located across Norway and Canada. With the global transition towards electric vehicles accelerating, Kuniko is strategically positioned to capitalize on the associated growth in demand for copper, nickel, cobalt and lithium.

Strategic Focus on Growing the European EV Market

As outlined by Kuniko CEO Anthony Beckmand in a recent interview, the company’s strategy is closely aligned with the development of battery metals supply chains for the burgeoning European electric vehicle market. Kuniko’s Norway-based management team have established local exploration teams to progress projects in the country, while maintaining close relationships with industry bodies and stakeholders. This local presence provides Kuniko with valuable expertise and insight into the Norwegian regulatory framework.

“Our management team is based here in Norway, we’re very close to our projects, the industry players, government regulators and local stakeholders," says Beckmand.

The European Union has implemented increasingly stringent emission standards and regulations supporting EV adoption. Major European automakers like Volkswagen and Stellantis are also making significant investments to vertically integrate their battery metals supply chains. These dynamics reinforce the strategic value of Kuniko’s focus on exploring and developing projects within proximity to European end-users.

Diversified Exposure to Battery Metals Growth

Unlike lithium-focused peers such as major shareholder Vulcan Energy Resources, Kuniko has adopted a diversified approach across multiple battery metals. The company’s projects provide exposure to the growing market for copper, nickel, cobalt and lithium.

“While Vulcan specializes in lithium, Kuniko has a diversified portfolio of copper, nickel, cobalt and lithium, allowing us to capitalize on growing demand across battery metals,” said Beckmand.

In Norway, Kuniko’s assets include the Skuterud cobalt project, formerly one of the world’s largest cobalt mines, and the Røstvangen nickel-copper project. The company also holds three prospective copper projects in central Norway and three early-stage lithium projects in the James Bay area of Québec, Canada. Beckmand highlighted that Kuniko’s assets are not only strategically located but also largely consist of underexplored regions with rich mineral endowments.

“Our projects are located in areas which have rich mineral and mining history that have had little or no modern exploration, so there’s significant upside there," he noted.

Recent Exploration Delivers Promising Results

Despite its projects remaining at an early stage, Kuniko has made rapid progress with exploration activities over the past year. Drilling campaigns were undertaken across the firm’s Norwegian copper, nickel and cobalt projects in early 2022. At the Skuterud cobalt project, shallow high-grade cobalt mineralization was discovered, underscoring the potential for a significant deposit.

“The Skuterud cobalt project has delivered some exciting results with the discovery of that high-grade shallow zone of mineralization which is really showcasing the potential of the Skuterud license for a significant mineral deposit,” explains Beckmand.

Meanwhile, drilling at the Røstvangen nickel project successfully intersected significant grades of nickel, copper and cobalt. With a previous resource estimate in place, Røstvangen is Kuniko’s most advanced project. However, the results from Skuterud have increased the priority on fast-tracking exploration efforts at this promising cobalt project.

In addition, preliminary exploration work kicked-off at the Canadian lithium projects in mid-2022. The drilling and sampling results achieved to date have validated Kuniko’s systematic approach to advancing its portfolio, guiding project prioritization and budget allocation. While production timelines remain several years away, the initial success of Kuniko’s exploration activities highlights the potential value creation on offer across its strategically located battery metals projects.

“These recent developments really highlight the way we're trying to progress the projects and unlock the value for our shareholders,” said Beckmand.

Carbon Neutral Exploration and ESG Focus

Kuniko is striving to differentiate itself from peers through a clear commitment to sustainable operating practices and ESG principles. In 2021, the company achieved carbon neutral certification for its exploration activities, becoming one of the first junior explorers to accomplish this. Beckmand attributes Kuniko’s carbon neutral achievement to the abundant renewable hydropower available in Norway, underscoring the advantageous location of its assets:

“Our projects being located in Norway and Canada, 95% of electricity comes from renewable hydropower, so we’re well positioned for carbon neutral or low emission operations.”

More broadly, Kuniko has engaged external advisors to provide guidance on implementing its ESG roadmap in alignment with the company’s stage of development. This includes working closely with local communities and stakeholders impacted by its activities. Kuniko's ESG credentials and decarbonization potential in Norway strengthen its investment case among ethical and ESG-focused investors.

Positioned to Capitalize on Battery Metals Demand Surge

Summarizing Kuniko’s investor proposition, Beckmand emphasized that the company is uniquely positioned to meet the unprecedented growth in demand for battery metals being driven by the global energy transition.

"The world is looking to junior explorers like Kuniko to make major discoveries to meet its transition goals to a low-emission society," he stated.

With its strategic European focus, diversified battery metals exposure, promising early results and commitment to ESG, Kuniko is primed to emulate the success of major shareholder Vulcan Energy in the years ahead. Leveraging its extensive local expertise and relationships, Kuniko aims to build partnerships, deliver exploration success and develop its portfolio into production. Beckmand asserts, by maintaining its sharp focus on the battery metals megatrend, Kuniko is expected to continue generating substantial value for shareholders over the next five years.

The Investment Thesis for Kuniko

• Strategically positioned for growing EV battery metals demand in Europe
• Local presence and expertise in Norway provides competitive advantage
• Diversified project portfolio offers leveraged exposure to key battery metals
• Assets in proven mineral-rich jurisdictions with significant exploration upside
• Early drilling demonstrating high-grade results across cobalt and nickel projects
• Commitment to ESG and carbon neutral exploration strengthens investment case
• Following major shareholder Vulcan’s blueprint to build partnerships and achieve success
• Primed to capitalize on unprecedented growth in battery metals over coming decade