Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2019 Earnings Presentation
22 slides from Nordic Mining Asa's earnings presentation, Feb 11, 2020
Slide 1: Minerals for a sustainable future
Large deposit with unique location Quality offtake partners Robust project economics Minerals for a sustainable future Strong competitive position OAX: NOM Valuable investment in lithium Q4 2019 Presentation February 11, 2020
Slide 2: Disclaimer
Disclaimer This document has been used by Nordic Mining during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or wa
Slide 3: Agenda
Agenda 1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A 3
Slide 4: Highlights
Highlights • DFS represents a major de-risking milestone and reinforces Engebø as a robust and attractive project • Fully financed until start of construction • Progressing towards project realization – Step-up of project finance activities – Finalizing offtake agreements – Build-up of the project t
Slide 5: Project economics – A strong business case
Project economics – A strong business case Pre-Tax Post-Tax Net Present Value @ 8% USD 450m USD 344m Internal rate of return 21.9% 19.8% Garnet Rutile Yearly average sales1 278 ktpa 34 ktpa Revenue3 Opex EBITDA Average per tonne sold1,2 USD 339 USD 73 USD 266 Average per year1,2 USD 106m USD 24m USD
Slide 6: Overarching ESG goals
Overarching ESG goals Nordic Mining will develop the Company’s Projects in accordance with IFC Performance Standards and the Equator Principles, and on the basis of the United Nation’s sustainable development goals • Energy efficient mining and processing operations Climate • Emphasize use of renewa
Slide 7: Agenda
Agenda 1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A 8
Slide 8: Consolidated income statement
Consolidated income statement Q4-2019 2019 Q4-2018 2018 (Amounts in NOK million) Unaudited Unaudited Unaudited Audited Sales - - - - Payroll and related costs -4.0 -15.5 -4.0 -11.8 Depreciation and amortisation -0.1 -0.2 -2.4 -2.5 Other operating expenses -11.5 -57.2 -14.5 -49.9 Operating profit/(lo
Slide 9: Consolidated statement of financial position
Consolidated statement of financial position • Financial asset comprise investment in Keliber Oy • Cash and equivalents of NOK 30.6m • Equity issue with gross proceeds of NOK 57.4m executed in January; not included in Q4 figures • No interest bearing debt 10
Slide 10: Pre-construction financing completed
Pre-construction financing completed • Private placement of 28,700,000 shares at a subscription price of NOK 2.00 per share and gross proceeds of NOK 57.4 million successfully completed in January • Extraordinary general meeting to be held on 25 February 2020 to resolve on a subsequent share issue o
Slide 11: Construction financing
Construction financing • Completion of DFS triggers increase in activities towards finance partners • Banks’ due diligence activities ongoing • Appointment of Clarksons Platou Securities and Sparebank 1 Markets as joint lead managers; complimentary to previous appointment of Northcott Capital • Offt
Slide 12: Agenda
Agenda 1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A 13
Slide 13: Progressing towards construction and production
Progressing towards construction and production FEED • Detailed engineering • EPCM bid process • Final negotiations of main contract packages • Procurement preparations, long lead items • Building permits at site • Environmental monitoring Strategic focus • Contracted EPCM services • Off-site constr
Slide 14: Building a long-term industrial operation
Building a long-term industrial operation Owner’s team Evaluation of contract strategy • Reducing risk; early recruitment of key personnel for procurement, construction and commissioning • Build permanent organization for long-term operations and employment Owners Team • Contract mining during the f
Slide 15: Modular construction secures quality and schedule
Modular construction secures quality and schedule 16
Slide 16: Stepping up project financing activities
Stepping up project financing activities Status of activities Sources of financing and guarantees • Debt advisor appointed • Bank debt • Initial meetings with banks and guarantors • ECA (Export Credit Agencies) • Banks’ due diligence activities ongoing • Offtake finance • Traditional project financi
Slide 17: Stepping up project financing activities
Stepping up project financing activities Status of activities Sources of financing and guarantees • Debt advisor appointed • Bank debt • Initial meetings with banks and guarantors • ECA (Export Credit Agencies) • Banks’ due diligence activities ongoing • Offtake finance • Traditional project financi
Slide 18: Comprehensive Environmental and Social Management System (ESMS)
Comprehensive Environmental and Social Management System (ESMS) ESMS programs • Environmental monitoring program • Stakeholder engagement plan and grievance mechanisms • Internal control system • Extractive waste management plan • Emergency prevention and preparedness plan • Energy leadership progra
Slide 19: Agenda
Agenda 1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A 20
Slide 20: Keliber Oy - Lithium
Keliber Oy - Lithium Status for Keliber’s project development + Significant improvements achieved: – Increased mineral resource and ore reserve estimates – Increased processing recoveries ÷ Start of construction delayed until 2021: – Extensive lenders’ due diligence – Uncertain timeline for permitti
Slide 21: Agenda
Agenda 1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A 22
Slide 22: Questions?
Questions? 23