Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Corporate Update (March 2023)
38 slides from Nordic Mining Asa's corporate update, Mar 27, 2023
Slide 1: Minerals for a sustainable future
Minerals for a sustainable future Investor Webinar – Engebø Rutile and Garnet 27 March 2023
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This extended company presentation (the "Presentation") has been prepared by Nordic Mining ASA ("Nordic Mining" or the "Company") with the assistance of Clarksons Securities AS and SpareBank 1 Markets AS (the "Financial Advisors"), solely for use at the Nordic Mining’s we
Slide 3: Today's presenters and management
Today's presenters and management Management with complementary skillset and extensive mining experience Ivar S. Fossum | Chief Executive Officer Terje Gundersen | Project Director, Engebø • 16 years’ with Nordic Mining (since founding) • With the company since February 2022 • 20 years experience fr
Slide 4: Building a Norwegian sustainable industrial company to deliver critical minerals
Engebø Rutile and Garnet Building a Norwegian sustainable industrial company to deliver critical minerals Broad push from Norwegian industry, High-quality asset under construction Strong political drive in the EU and politicians and local communities for with low cost and industry-leading Western wo
Slide 5: Sustainability at the core of our business
Engebø Rutile and Garnet Sustainability at the core of our business Environmental responsible Positive impact on communities Safe and healthy work environment ✓ Work towards zero-emission operations and ✓ Establish relations based on transparency, ✓ Build operations with safety embedded in contribut
Slide 6: Fully financed and in construction on track for production in 2024
Engebø Rutile and Garnet Fully financed and in construction on track for production in 2024 Project highlights Minerals for a sustainable future Engebø Rutile and Garnet Engebø Rutile (TiO2) and Garnet (100%) Titanium Garnet Oslo Large dual-mineral resource with high-grade rutile and garnet Headquar
Slide 7: World class high-grade rutile resources secures long term strategic supply position
Engebø Rutile and Garnet World class high-grade rutile resources secures long term strategic supply position Compared with major operational and planned rutile resources (MI) Indicative rutile grades (TiO2) for current producers and planned projects (MI&I) Major Rutile Resources West Balranald, Aust
Slide 8: Supplying critical industrial minerals - mitigating supply chain risk
Engebø Rutile and Garnet Supplying critical industrial minerals - mitigating supply chain risk Rutile Garnet Application areas Application areas Ti-metal Renewable energy Waterjet cutting Water cleaning Pigment Welding Sand blasting Abrasives/other • Titanium is one of the most versatile elements wi
Slide 9: Positive pricing dynamics to continue due to structural supply-demand deficit
Engebø Rutile and Garnet Positive pricing dynamics to continue due to structural supply-demand deficit Rutile • Supply has been decreasing steadily over the last few years due to several large • Natural rutile is expected to continue to benefit from positive pricing dynamics resources have depleted
Slide 10: Demand growth combined with limited new supply drives higher prices
Engebø Rutile and Garnet Demand growth combined with limited new supply drives higher prices Garnet • Demand growth to be driven by GDP growth and construction activities • Garnet prices vary according to the source location, hard-rock versus alluvial, coarseness, bulk or container freight, distribu
Slide 11: Long-term offtake agreements for full production of rutile and garnet secured
Engebø Rutile and Garnet Long-term offtake agreements for full production of rutile and garnet secured Rutile Garnet Global TiO2 Partner Global Partner on Garnet Binding offtake agreement signed in June 2022 Binding offtake signed October 2022 Binding offtake agreement signed January 2023 5-year agr
Slide 12: Pyrite sale will reduce chemicals in tailings
Engebø Rutile and Garnet Pyrite sale will reduce chemicals in tailings Pyrite High-density rock ▪ Memorandum of Understanding with Green Trail Holding Ltd, a trading ▪ In order to mine for minerals, high-density rock is removed company with over 30 years of experience, for offtake of pyrite ▪ High-d
Slide 13: Location and topography offers efficient design and solutions
Engebø Rutile and Garnet Location and topography offers efficient design and solutions Engebø Deposit Compact and simple infrastructure reduces risk and capex New pit design enables reduced fleet size and reduces bench height and width • Optimized mine access and pushback design • Improved ore logis
Slide 14: 39 years mine-life with rapid ramp-up of production
Engebø Rutile and Garnet 39 years mine-life with rapid ramp-up of production Production profile Mtpa ore 3.0 Open pit ore to plant Underground ore to plant Stockpile to plant feed Ore to stockpile Feed to plant 2.5 2.0 1.5 1.0 0.5 0.0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046
Slide 15: Integrated owners' team ensures control and reduces execution risk
Engebø Rutile and Garnet Integrated owners’ team ensures control and reduces execution risk Project Director1 • Carefully selected project organization Terje Gundersen • with significant experience within project execution and mining operations Environment & Process & Production Sustainability Elin
Slide 16: Lump-sum EPC agreements reduce execution and cost overrun risk
Engebø Rutile and Garnet Lump-sum EPC agreements reduce execution and cost overrun risk Sunnfjord Industripartner AS Åsen & Øvrelid AS Sitewide Earthworks and Underground Civil and Buildings Infrastructure • Established as a logging company in 1988 Experienced regional • A combination of four local
Slide 17: Engebø operations team expanding with new resources and ongoing recruitments
Engebø Rutile and Garnet Engebø operations team expanding with new resources and ongoing recruitments • Operations Team ramping-up Operations Director towards handover from EPCs from after Kenneth Nakken Angedal commissioning supported by the Execution Team • Key management recruitment Environment &
Slide 18: 17 years of development, positioned for 40 years production
Engebø Rutile and Garnet 17 years of development, positioned for 40 years production 2006 2007 – 2022 2022 and onwards Project initiated Studies, regulatory, permits and stakeholders Construction and long-term value-creation 2006: Acquired rights to the 2009: Scoping Study completed 2022: Keliber st
Slide 19: EPC contracts fully activated, on track to start production in 2024
Engebø Rutile and Garnet EPC contracts fully activated, on track to start production in 2024 Project Timeline 2022 2023 2024 Full Project Financing secured and FID activation of EPC contracts Process Design Owners team – Follow-up EPC 1 - Earthworks EPC 2 – Civil & Buildings EPC 3 – Structural & Mec
Slide 20: Site construction progress
Waste rock/ stockpile Access road Open pit Ore shaft • Total staff of ~60 persons at site • Groundworks on schedule, construction of administration building ongoing • Access road >90% completed • Conveyor tunnel finalized and crushing chamber in progress. Preparation for raise-bore drilling of verti
Slide 21: Engebø Rutile and Garnet flyover March 2023
Engebø Rutile and Garnet flyover 24 March 2023 Source:
Slide 22: Blasting of bypass tunnel and preparation for raise-bore drilling of vertical ore shaft
Blasting of bypass tunnel and preparation for raise-bore drilling of vertical ore shaft
Slide 23: First walls on administration building being raised
First walls on administration building being raised
Slide 24: Lower process plant area being finalized
Lower process plant area being finalized Source:
Slide 25: Access road up to mining service area being finalized
Access road up to mining service area being finalized
Slide 26: Preparation for raise-bore drilling of vertical ore shaft on top of Engebø
Preparation for raise-bore drilling of vertical ore shaft on top of Engebø Source:
Slide 27: Detail Engineering on process plant ongoing with EPC 2-4
Engebø Rutile and Garnet Detail Engineering on process plant ongoing with EPC 2-4 27
Slide 28: Long lead technology packages secured with leading sustainable suppliers
Engebø Rutile and Garnet Long lead technology packages secured with leading sustainable suppliers Mechanical Process Equipment Metso Outotec will be the main technology provider for comminution circuit ~55% of technology packages of USD 30 million with agreed price for Engebø Rutile and Garnet, whic
Slide 29: World's most climate friendly titanium feedstock
Engebø Rutile and Garnet World’s most climate friendly titanium feedstock Industry leader on GHG emissions1 Life Cycle Analysis proves superior rutile product2 Titanium producers analysis Global Warming Potential 3.3 Total Scope 1 and 2 Emissions vs Emission Intensity Emissions Intensity (tCO2e/t pr
Slide 30: Fully permitted, well-proven tailings solutions
Engebø Rutile and Garnet Fully permitted, well-proven tailings solutions Seabed Tailings Disposal “STD” Design measures to reduce risk • Seabed Tailing Disposal ‘STD’ is a well-proven solution with 5 operative • Tailings is conditioned by seawater to increase density of the discharge and several his
Slide 31: Taking action for biodiversity
Engebø Rutile and Garnet Taking action for biodiversity Environmentally responsible • As a response to the United Nation’s goal to stop loss of biodiversity, Nordic Mining has adopted a goal of net biodiversity gain over the life of mine for the Engebø project • To achieve this, a Biodiversity Actio
Slide 32: Engebø will report according to TSM from day one
Engebø Rutile and Garnet Engebø will report according to TSM from day one ENERGY COMMUNITIES AND PEOPLE ENVIRONMENTAL STEWARDSHIP EFFIENCY Crisis Indigenous and Biodiversity Energy Use and Management and Safety and Preventing Child Tailings Water Community Conservation GHG Emissions Communication He
Slide 33: Revenue supported take-or-pay offtake agreements for all production first 5 years
Engebø Rutile and Garnet Revenue supported take-or-pay offtake agreements for all production first 5 years USD million +39 years revenue and EBITDA generation Total revenue of USD 578 96 million from Royalty Prepayment 92 2023-2030 Revenue 87 85 84 EBITDA incl. Royalty 73 Avg. EBITDA 62 66 margin of
Slide 34: Low operational cash-cost ensures high margins and…
Engebø Rutile and Garnet Low operational cash-cost ensures high margins and… Cash cost build-up for combined sales through 20302 Margins through 2030 USD/t Production kt Rutile 220 Average estimated realized sales price through 2030: 408 USD/t, incl. rutile and garnet offtakes 400 Garnet 1,075 Total
Slide 35: …1st quartile industry Revenue to Cash Cost position
Engebø Rutile and Garnet …1st quartile industry Revenue to Cash Cost position Comments TZMI’s projected industry curve in 2024 (2021 UDFS) • Industry curve indicates ratio of revenue to cash cost (R/C Ratio), e.g., ratio of 2 = 50% EBITDA margin • The Engebø Rutile and Garnet Project is a dual miner
Slide 36: Strong EBITDA numbers and low sustaining CAPEX for attractive cash flow to firm
Engebø Rutile and Garnet Strong EBITDA numbers and low sustaining CAPEX for attractive cash flow to firm EBITDA incl. Royalty Comments 70 • Average annual EBITDA initial 5 years 60 post ramp-up is USD 57m 50 • Pre-production operating costs are 40 capitalized and accounted in CAPEX plan 62 66 30 55
Slide 37: Forecast for material cash flow generation and shareholder distributions
Engebø Rutile and Garnet Forecast for material cash flow generation and shareholder distributions Potential for strong cash flow generation (cumulative unlevered)12 USDm Annual free cash flow Accumulated free cash flow 2003 1700 Nordic Mining intends to pay 1200 competitive dividend in line with key
Slide 38: Highlights and Q&A
Highlights and Q&A Fully financed with construction on track for production in 2024 5-year offtake agreements for full production of rutile and garnet Industry-leading ESG profile, minerals producer for the SAFETY - ENVIRONMENT - INNOVATION next 40 years Attractive economics and significant revenue