Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Investor Presentation (November 2017)
34 slides from Nordic Mining Asa's investor presentation, Nov 1, 2017
Slide 1: Engebø Rutile and Garnet Project
Ti Pt Lighter aircrafts Clean air Pd Engebø Rutile and Garnet Project CEO Ivar S. Fossum, November 1, 2017 MINERALS FOR A SUSTAINABLE FUTURE Li OAX: NOM Electric cars Renewable energy Si 1
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: Developing high-value assets in the Nordic Region
Developing high-value assets in the Nordic Region Platinum, Palladium Engebø Rutile and Garnet (100%) High Purity Quartz Keliber Oy Seabed minerals Lithium (22%) 3
Slide 4: Engebø Rutile and Garnet Project Prefeasibility Study
Engebø Rutile and Garnet Project Prefeasibility Study ✓ Published on October 30, 2017 ✓ Full report available on company website ✓ www.nordicmining.com 4
Slide 5: Summary of the Engebø Prefeasibility Study (PFS)
Summary of the Engebø Prefeasibility Study (PFS) • Large outcropping deposit of natural rutile and garnet 1 World class rutile and garnet deposit • High grades, low impurities • Geotechnically stable, enables efficient mining • Minerals with unique properties and growing demand Solid market fundamen
Slide 6: World class rutile and garnet deposit
1 World class rutile and garnet deposit 2 Solid market fundamentals, favourable location 3 Scalable operation with limited environmental footprint 4 Project pre-tax NPV8% of USD 332 mill; IRR 24% 5 PFS supports further progress towards production 6
Slide 7: Large eclogite deposit located at tidal waters
Large eclogite deposit located at tidal waters ✓ Outcropping deposit with unknown extension to depth ✓ Geotechnically stable orebody allows for effective mining ✓ Low impurities, negligible content of heavy metals and radioactive elements ✓ Easy transition from open pit to underground mining 7
Slide 8: High grade rutile and garnet mineralisation
High grade rutile and garnet mineralisation Mineral resource classification* Among the highest rutile grades ✓ The mineral resource is defined with 3% cut-off ✓ Rutile grade for current producers and planned projects ✓ Increased cut-off implies stronger financial performance in early mining years En
Slide 9: Solid market fundamentals, favourable location
1 World class rutile and garnet deposit 2 Solid market fundamentals, favourable location 3 Scalable operation with limited environmental footprint 4 Project pre-tax NPV8% of USD 332 mill; IRR 24% 5 PFS supports further progress towards production 9
Slide 10: Rutile and Garnet - unique mineral properties, increasing demand
Rutile and Garnet - unique mineral properties, increasing demand Garnet Rutile Current world production: ~ 1.4 million tonnes Current world production: ~ 0.8 million tonnes WATERJET CUTTING SAND BLASTING ABRASIVES PIGMENT WELDING RODS TITANIUM Tests have demonstrated that Engebø can produce coarse a
Slide 11: Titanium dioxide – a part of everyday life
Titanium dioxide – a part of everyday life 11
Slide 12: Garnet - young mineral with strong growth
Garnet - young mineral with strong growth Apparent consumption of garnet (excl. China)* Current world production* 1 600 1 400 China 1 200 Australia 1 000 1 000 tonnes 800 ~ 1.4 mill. tonnes 600 Other 400 India 200 0 * Source: TAK Industrial Mineral Consultancy 12
Slide 13: Garnet market and price forecast
Garnet market and price forecast Average garnet export prices (FOB)* $350 ✓ Emerging mineral with strong growth in the waterjet cutting markets $300 ✓ Currently no European production $250 ✓ Engebø is one of few hard rock deposits of almandine garnet $200 ✓ Engebø will produce commercial end-product
Slide 14: Rutile market and price forecast
Rutile market and price forecast Global rutile supply/demand balance* Rutile price forecast* 1 000 000 $3 000 900 000 $2 500 800 000 700 000 $2 000 600 000 USD per tonne TiO2 units 500 000 $1 500 400 000 $1 000 300 000 200 000 $500 100 000 0 $0 South Africa Sierra Leone Rutile price High est. Base e
Slide 15: Export sales from Engebø
Export sales from Engebø Rutile off-take Garnet off-take ✓ The largest pigment manufacturers in Europe ✓ Nordic Mining has signed a MoU with a with chloride technology have a total production leading, international producer of industrial capacity above 500,000 tonnes per annum minerals ✓ Several can
Slide 16: Scalable operation with limited environmental footprint
1 World class rutile and garnet deposit 2 Solid market fundamentals, favourable location 3 Scalable operation with limited environmental footprint 4 Project pre-tax NPV8% of USD 332 mill; IRR 24% 5 PFS supports further progress towards production 16
Slide 17: Favourable internal logistics, short haulage distance
Favourable internal logistics, short haulage distance ✓ 16 years open pit mining ✓ Rich ore in the early years ✓ Low stripping ratio ✓ Glory hole concept with underground crushing facility and ore silos ✓ Limited visual impact ✓ Open pit gives easy access to underground ore ✓ Permit allows for futur
Slide 18: Open pit mining (2021-2036)
Open pit mining (2021-2036) Units Run of mine 1.5 Mtpa Mine life 16 Years Average production garnet 261 ktpa Average production rutile 33 ktpa Strip ratio 1.34 Waste/ore 18
Slide 19: Underground mining (2037-2049)
Underground mining (2037-2049) Units Run of mine 1.5 Mtpa Mine life 13 Years Average production garnet 262 ktpa Average production rutile 35 ktpa 19
Slide 20: PFS process testwork; industrial scale equipment
PFS process testwork; industrial scale equipment ✓ Comprehensive testwork has documented commercial products from rutile and garnet according to market specifications ✓ Testwork has demonstrated rutile recovery of approximately 60% 20
Slide 21: Flowsheet of rutile and garnet process
Flowsheet of rutile and garnet process 21
Slide 22: Zoning plan and environmental permits fully granted
Zoning plan and environmental permits fully granted ✓ Deep-sea disposal offers safe and sustainable tailings solution ✓ The tailings will mainly sediment within the regulated area ✓ The currents in the tailings area are moderate and there is limited risk for erosion currents ✓ Continuous monitoring
Slide 23: Compact process plant, including ship-loading facilities
Compact process plant, including ship-loading facilities 23
Slide 24: Project pre-tax NPV8% of USD 332 mill; IRR 24%
1 World class rutile and garnet deposit 2 Solid market fundamentals, favourable location 3 Scalable operation with limited environmental footprint 4 Project pre-tax NPV8% of USD 332 mill; IRR 24% 5 PFS supports further progress towards production 24
Slide 25: Key project assumptions
Key project assumptions Mining production Assumptions Value 6,0 Ore production Waste production 5,0 Garnet price USD 250/tonne 4,0 Million tonnes 3,0 Rutile price USD 1 070/tonne 2,0 1,0 1.5 mill. tonnes/yr Garnet sales (from ~2027) 261 000 tpa 0,0 Rutile sales (average) 32 500 tpa Garnet sales and
Slide 26: Attractive project economics
Attractive project economics Metric Value Pre-tax NPV @ 8% USD 332 mill. Pre-tax IRR 23.8% Life of mine 29 years 200 Pay-back period < 5 years Post-tax NPV @ 6.8% USD 305 mill. 150 Post-tax IRR 20.8% 100 50 USD million 0 -50 -100 Garnet Revenue Rutile Revenue Capex Maintenance capex (SIB) -150 Opex,
Slide 27: Competitive rutile revenue-to-cash cost position
Competitive rutile revenue-to-cash cost position ✓ The revenue-to-cash cost ratio is based on the first ten years of operations ✓ Engebø benefits from producing two high value products with low mining and processing costs Source: TZMI 27
Slide 28: Large upside potential
Large upside potential +40% 500 A. Increased production of garnet 450 51 to 300 000 tonnes/year 400 69 13 Pre-tax NPV @ 8% (USD million) 350 B. Extension of mine life to 40 300 years by including Inferred 250 Resources 465 200 150 332 C. Additional garnet sales in early years 100 50 0 NPV base A. In
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Slide 30: PFS supports further progress towards production
1 World class rutile and garnet deposit 2 Solid market fundamentals, favourable location 3 Scalable operation with limited environmental footprint 4 Project pre-tax NPV8% of USD 332 mill; IRR 24% 5 PFS supports further progress towards production 30
Slide 31: The way forward
The way forward 2017 2018 2019 2020 2021 2H 1H 2H 1H 2H 1H 2H 1H 2H Definitive Feasibility Study Off-take agreements Construction financing FEED* Construction period Production ramp-up Preliminary indicated pre-construction and general corporate expenditures of approx. USD 20 million * FEED: Front E
Slide 32: Definitive Feasibility Study (DFS) targets project bankability
Definitive Feasibility Study (DFS) targets project bankability ✓ Mining trade-off studies, mine design and schedule ✓ Mineral processing testwork, ore variability and flowsheet optimisation ✓ Modularisation and logistical studies ✓ Procurement strategy and procurement operating plan ✓ Multi-discipli
Slide 33: Promising results from the Prefeasibility study
Promising results from the Prefeasibility study ✓ Robust dual-mine operation with high-quality garnet and rutile ✓ Low investments ✓ Attractive project economics 33
Slide 34: THANK YOU!
THANK YOU! Safety – Environment - Innovation www.nordicmining.com 34
Nordic Mining — Investor Presentation (November 2017) on 6ix