Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (November 2021)
44 slides from Canada Nickel's investor presentation, November 2021
Slide 1: Introduction to Canada Nickel Company
Introduction to Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC November 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC”). Forward looking information includes, but is not limited to, the results of the Crawf
Slide 3: Summary
Summary Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China Nickel market fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China – potential supercyc
Slide 4: Board and Management Team
Board and Management Team David Smith • Senior VP, Finance and CFO of Agnico Eagle Mines Mark Selby • Previous CEO of Royal Nickel Corporation Director Limited; Chairman, CEO • Corporate development, strategy, business P.Eng., C.Dir. • Chartered Director, Director of Sprott Resource B.Comm. planning
Slide 5: Nickel Demand Growth Accelerating from EVs
Nickel Demand Growth Accelerating from EVs Nickel demand growth continues to be underestimated – up 15%+ this year (3-5X other base metals) and forecasted by CNC to double by 2030 to 5+ Mt - even at low end of trend 4-5% demand growth for historical nickel uses Global Nickel Demand (Mtpa) 2020, 2021
Slide 6: Tesla: Please mine more nickel
Tesla: “Please mine more nickel…” Recognition of environmental footprint issues “…please mine more nickel... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call Ju
Slide 7: Crawford Nickel Sulphide Project Location & Infrastructure
Crawford Nickel Sulphide Project Location & Infrastructure One of the largest nickel sulphide resources located in a well established mining camp with infrastructure ✓ Major support infrastructure in place – Roads, rail, power, water – Rail connection ✓ Rich mining history and skilled, local workfor
Slide 8: Crawford PEA Highlights
Crawford PEA Highlights The Crawford PEA demonstrates strong financial returns based on a large resource with significant upside potential ✓ US$1.2 billion after-tax NPV8% Robust Economics ✓ 16% after-tax IRR ✓ 42ktpa nickel at peak production (Phase III), 34ktpa nickel LOM Large Scale, ✓ 1.9 Billio
Slide 9: Crawford PEA Summary Operating Costs & Capex
Crawford PEA Summary Operating Costs & Capex Three phase production plan peaks at nickel production of 42ktpa with a life-of-mine AISC of US$1.94/lb ($4,300 per tonne) Phase I Phase II Phase III Life-of-Mine Unit (Years 1 – 3.5) (Years 3.5 – 7) (Years 8 – 18) (Years 1 – 25) Mill Capacity ktpd 42.5 8
Slide 10: A Top Nickel Sulphide Operation Globally
Crawford A Top 5 Nickel Sulphide Operation Globally Based on PEA results, Crawford is expected to be among the top 5 nickel sulphide operations globally. Largest Nickel Sulfide Operations by 2020 Annual Production 208 (kt of Nickel/Year) 77 75 43 42 (2) 36 33 30 29 Kola (1) Polar (1) Jinchuan Nickel
Slide 11: The Largest Base Metals Mine in Canada
Crawford The Largest Base Metals Mine in Canada Based on PEA results, Crawford is expected to be one of the largest base metal mines in Canada Largest Canadian Base Metals Mines by 2020 Annual Ni-eq Production(1) (kt of Nickel Equivalent/Year) Nickel Copper Zinc Molybdenum Cobalt Precious Metals PGE
Slide 12: A 1st Quartile Net Cash Cost Producer
Crawford A 1st Quartile Net Cash Cost Producer Based on PEA results, Crawford is expected to be a low cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs Crawford's Net C1 Cash Cost vs 2020 Net C1 Cash Cost of Global Nickel Operations $10.00 Spot Nickel Price: $7.75/lb Net C
Slide 13: A Low Carbon Footprint
Crawford A Low Carbon Footprint Crawford estimate of 2.8 tonnes of CO2 per tonne of Ni-eq production – 90% lower than industry average of 28 tonnes CO2 (based on Skarn E0) Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t Ni eq) 0% 25% 50% 75% 100% 180 160 CO2e Intensity (tCO2e/t Ni eq.) 140 120
Slide 14: Producing Two Nickel Concentrates + Iron Concentrate
Crawford Producing Two Nickel Concentrates + Iron Concentrate Crawford will produce two nickel concentrates, including a high grade concentrate expected to be the highest grade nickel concentrate at 35% nickel, and an iron concentrate containing chrome 2020 Concentrate Grade (% Ni and % Co) for Glob
Slide 15: Flowsheet Improvements Deliver Substantial Metallurgical Improvements
Flowsheet Improvements Deliver Substantial Metallurgical Improvements Latest locked cycle test delivered 62% total nickel recovery – a 10 percentage point recovery improvement over the PEA – and improvements in cobalt recovery, and iron grades & recovery Improved Ni Flotation Recovery compared to th
Slide 16: Successful Infill Drilling Program in East Zone
Successful Infill Drilling Program in East Zone High-Grade Core Identified Infill drilling supports target of increasing the East Zone resource for feasibility study by 2-3x and the identification of an extensive Higher Grade Core, similar to the Main Zone. ▪ High-Grade Core extends a combined 1.6km
Slide 17: Current Downstream Path to Stainless Steel
Current Downstream Path to Stainless Steel Future Path Likely to Include Path to EV ▪ Nickel, iron and chromium are three key alloying US Stainless Conversion Margins metals in the production of stainless steel, which (US$/lb Nickel) vs makes Crawford products suitable feeds Nickel Sulphate Premiums
Slide 18: NetZero Carbon Production Potential
NetZero Metals NetZero Carbon Production Potential A number of key technologies are being utilized to develop a Net Zero carbon footprint operation Mining ▪ Utilization of electric rope shovels and trolley trucks which utilize hydroelectricity, rather than diesel fuel, as a power source wherever pos
Slide 19: Ground-breaking MOU Signed with Local First Nations
Ground-breaking MOU Signed with Local First Nations Canada Nickel has entered into Memorandum of Understandings with Taykwa Tagamou Nation and the Matachewan and Mattagami First Nations. “Our community favours a “Mark is genuinely committed to “…happy to be forging a strong and development project l
Slide 20: Additional Opportunities
Additional Opportunities 1 Exploration Upside 2 Recovery Optimization 3 NetZero Carbon Footprint Determine the carbon capture Significant additional exploration Optimization of nickel, iron, chrome potential from the carbon potential within the Crawford recovery and concentrate grades sequestration
Slide 21: Carbon Sequestration Potential
Crawford Nickel Project Carbon Sequestration Potential Canada Nickel completed its initial lab scale tests which highlighted the carbon capture potential of its tailings which, if fully confirmed in subsequent testwork, would achieve NetZero production and provide substantial CO2 credits Tailings Ca
Slide 22: Crawford is Largest Nickel Sulphide Discovery Since Early 1970s
Crawford is Largest Nickel Sulphide Discovery Since Early 1970s Sudbury Jinchuan Norilsk-Polar Norilsk-Kola ? Crawford Source: Vale presentation at the Metal Bulletin 3rd International Nickel Conference , London, April 29, 2015 22
Slide 23: District Scale Potential
District Scale Potential >50% Crawford + Multiple New Targets Fully consolidated properties contain multiple nickel-bearing target structures 30km of total strike length and 150 - 600m wide ▪ For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide Historic drilling yiel
Slide 24: Significant Discovery at Nesbitt
Significant Discovery at Nesbitt The first three drill holes returned significant intersections of mineralization with intervals of visible disseminated sulphides consistent with Higher Grade Zone at Crawford Plan view of Nesbitt Property Outline of Gravity Low and Magnetic High geophysics anomaly H
Slide 25: Significant Discovery at MacDiarmid
Significant Discovery at MacDiarmid 15% Larger Anomaly than Crawford Main Zone The first three holes drilled at MacDiarmid returned significant intersections of mineralized dunite similar to the average mineralization initially discovered at Crawford Plan view of Crawford and MacDiarmid Properties O
Slide 26: A New Nickel District - Hiding in Plain Sight
A New Nickel District - Hiding in Plain Sight …. The acquisition of 13 new properties positions Canada Nickel to become the leader of the third generation of nickel supply – large, scaleable, zero carbon potential – located in one of the best mining jurisdictions in the world in close proximity to i
Slide 27: Unlocking the Timmins Nickel District
Unlocking the Timmins Nickel District ▪ Each target has had some amount of historical work, (in some cases, much more than Crawford did initially) confirming that these targets contain the same serpentinized dunite and/or peridotite that hosts the Crawford mineralization and has the potential to per
Slide 28: Really?? A New Nickel District?
Really?? A New Nickel District? ▪ Nickel resources are very concentrated in just 6 regions – East half Sulawesi (Indonesia), Sudbury (Canada), Taimyr Peninsula (Russia), Eastern Goldfields (Australia), Bushveld (southern Africa), Surigao/Palwan (Philippines), Jinchuan (China) – The transactions demo
Slide 29: Canada Nickel Well-Positioned Versus Peers
Canada Nickel Well-Positioned Versus Peers $3,098 $446 Market Cap (C$ M) $359 $314 $138 $122 $106 $36 $42 $29 $33 Garibaldi St George Estrella GIGA Azure FPX Nickel Legend Centaurus Talon Chalice Resources Mining Resources Metals Minerals Mining Metals Metals Gold Ni Project E&L Hawaii Carr Boyd Tur
Slide 30: Corporate Activity in Nickel Accelerating
Corporate Activity in Nickel Accelerating Nickel market has already seen significant corporate activity since mid-2020 particularly in nickel sulphide projects – In June 2020, BHP acquired the Honeymoon Well project from Norilsk ▪ The tenements are located 50km from BHP’s Mt. Keith operation lying i
Slide 31: New Nickel Sulphide Discoveries Acquired at Significant Valuations
New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations Multiple Nova Voisey’s Bay Cosmos Mines Bollinger Acquisition C$4.5 B A$3.1 B C$6.8 B A$1.8B Value & Year (1996 $) (2007 $) (2007 $) (2015 $) Share Price 37x 58x 6.5x 15x Accumulation Reserve (Mt) 0.9 0.09 1.4 0.27 Resource
Slide 32: Capital Structure
Capital Structure Share Price Performance Capitalization as of November 24, 2021 Ticker TSXV: CNC Share Price (C$) $3.55 Basic Shares Outstanding (M) 88.51 Market Capitalization (C$M) $314 Total Debt (1) (C$M) -- Cash & Equivalents (1) (C$M) $11.5 Market Data 20-Day VWAP (C$) $3.40 52-Week High / Lo
Slide 33: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China Nickel market fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China
Slide 34: Appendix
CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 35: Crawford PEA Operating Cost Summary
Crawford PEA1 Operating Cost Summary Phase I Phase II Phase III Life-Of-Mine (Years 1 - 3.5) (Years 3.5 - 7) (Years 8 - 18) (Years 1 - 25) Operating Costs US$ C$ US$ C$ US$ C$ US$ C$ ($ / tonne milled) Labour $2.39 $3.19 $1.49 $1.98 $1.20 $1.60 $1.26 $1.68 Consumables $2.49 $3.31 $2.35 $3.14 $2.30 $
Slide 36: Crawford Is a Structurally Low Cost Project
Crawford Is a Structurally Low Cost Project Crawford is a structurally low cost operation - Large scale mine / mill operation expanded in 2 stages from 42.5 ktpd to 120 ktpd - Low strip ratio – life of mine 2.1:1 and initial phase 1.3:1 - Use of trolley trucks and electric shovels reduce diesel cons
Slide 37: Crawford PEA Detailed Summary
Crawford PEA Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 7) (8 - 18) (Years 1 - 25) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,188 $543 $194 $1,925 Sustaining & Closure US$ millions / year $238 $254 $512 $1,0
Slide 38: Crawford PEA Sensitivities
Crawford PEA Sensitivities Delta NPV8% Delta IRR Delta Net C1 Cash Cost (US$ millions) (%) (US$ / lb) Sensitivity - + - + - + Nickel Price ±$1/lb ($445) $435 (2.8%) 2.6% n.a. n.a. ($6.75/lb - $8.75/lb) Nickel Price ±10% ($342) $341 (2.1%) 2.0% n.a. n.a. ($6.98/lb - $8.53/lb) Iron Price ±10% ($101) $
Slide 39: Crawford PEA Assumptions
Crawford PEA Assumptions Unit Model Assumptions Parameter Nickel Price S/lb ($/tonne) $7.75 ($17,000 ) Chromium Price $/lb ($/tonne) $1.04 ($2,300 ) Iron Ore Price $ / tonne $290 US$/C$ Exchange Rate USD:CAD 0.75 Oil $/barrel $60 39
Slide 40: Crawford Mineral Resource
Crawford Mineral Resource Crawford’s resource ranks as one of the 10 largest nickel sulphide resources globally and now includes chrome values ▪ Higher grade core of M&I Resource of 280 Mt at 0.31% Ni, 0.59% Cr and 6.31% Fe within an overall M&I resource of 653 Mt at 0.26% Ni, 0.60% Cr and 6.58% Fe
Slide 41: Main Zone Mineralization Doubled by 1.8 km
Main Zone Mineralization Doubled by 1.8 km Lower Grade West Zone Identified Delineation of significantly larger Main Zone resource well underway Main Zone Western Extension & West Zone Results (Total Magnetic Intensity) Main Zone drilling extended mineralization to the north and northwest by 1.8 kil
Slide 42: PGM Potential: ~10km Structure Continues to be Intersected
PGM Potential: ~10km Structure Continues to be Intersected Multiple Times PGM structure continues to be intersected in multiple locations. First higher grade PGMs in Main Zone Mineralization PGM Intervals – Main and East Zones (Vertical Gravity Gradient) ▪ PGM zone successfully intersected by an add
Slide 43: MOU Signed for Potential Use of Glencore Kidd Concentrator & Met Site
MOU Signed for Potential Use of Glencore Kidd Concentrator & Met Site The opportunity to utilize the excess capacity and existing infrastructure at the Kidd Met Site provides the potential to allow a faster, simpler, smaller scale start-up of Crawford at a vastly lower capital cost while the Company
Slide 44: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com www.canadanickel.com Twitter: @CanadaNickel
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