Fpx Nickel Corp · TSXV:FPX
Fpx Nickel — Investor Presentation (January 2021)
36 slides from Fpx Nickel's investor presentation, January 2021
Slide 1: Nickel for the 21st Century
Nickel for the 21st Century January 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward looking statements” within the meaning of “forward looking information” under applicable Canadian securities laws, concerning the business, operations and financial performance and condition of FPX Nickel Corp. (“FPX Nickel”, “th
Slide 3: Decar Nickel District hosts the Baptiste Project
FPX’s Decar Nickel District hosts the Baptiste Project – one of the world’s best development-stage nickel projects ● Large Resource, Long Life ● Low Projected Costs ● High-Value, Strategic Nickel Product ➢ Projected to be among world’s 10 ➢ Potential for lowest quartile ➢ High-grade nickel product (
Slide 4: The Case for Nickel
The Case for Nickel Global Refined Nickel Supply/Demand and Price 250 $20.00 Forecast 200 $18.00 $16.00 150 $14.00 100 000s Tonnes $12.00 US$ /lb 50 $10.00 - $8.00 (50) $6.00 (100) $4.00 (150) $2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Implie
Slide 5: Decar Nickel District – Ownership History
Decar Nickel District – Ownership History 2010 to 2013 Cliffs November expenditures 2015 2008 to 2009 of US $22 FPX Nickel re- Surface million toward establishes sampling and completion of 100% project initial PEA in 2013, ownership via discovery by establishing payment of US FPX Nickel 60% project
Slide 6: Decar Nickel District – Excellent Location, Central British Columbia
Decar Nickel District Excellent Location – Central British Columbia ● Road accessible ● 5 km to rail line ● 100 km to hydro- power grid Blackwater Au Project: Receipt of federal & provincial environment assessment certificates in 2019 6
Slide 7: Decar Nickel District (245 km2)
Decar Nickel District (245 km2) Van Target • Drill-ready target • Surface samples up to 0.16% DTR Ni 1 B Target • Exploration target ~3 km2 • 1 hole drilled, 1.7 km from Sid • 263m of 0.132% DTR Ni 1 • Open along strike and at depth Sid Target Baptiste Deposit (2020 PEA) • 2 holes drilled, 320m apar
Slide 8: Decar Nickel District – Exploration Upside
Decar Nickel District Exploration Upside Van Target B Target Sid Target Baptiste Deposit 8
Slide 9: Decar Nickel District – Baptiste Deposit
Decar Nickel District – Baptiste Deposit ● Southeast Zone: Higher grade near-surface zone measuring 1,000 metres east-west by up to 600 metres wide ● Deposit remains open to southeast, northwest & northeast and at depth 9
Slide 10: Baptiste Deposit – 2020 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2020 Mineral Resource Estimate Area of 2017 Drilling 2020 PEA Ultimate Pit 500m - 2020 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Significantly improves Baptiste mine plan by incorporating nea
Slide 11: Baptiste Deposit – 2020 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2020 Mineral Resource Estimate * Davis Tube Recoverable Nickel”; 0.06% cut-off Davis Tube Recoverable (“DTR”) Ni Content Category Tonnes (000’s) 2020 estimate dated September 9, 2020 % Ni Tonnes Ni Pounds Ni (000’s) by GeoSim Services Inc. Mineral Indicated 1
Slide 12: Decar Nickel District – Van Target
Decar Nickel District – Van Target • Van Target is drill ready and measures ~3 km2 based on 54 bedrock surface samples • ~35% of surface samples in Van Target area grading over 0.12% DTR Ni • Van Target located 6 km north of Baptiste and remains open to the east • Baptiste Target was ~2 km2 prior to
Slide 13: Decar Nickel District – Mineralization
Decar Nickel District – Mineralization Awaruite – Naturally-Occurring Nickel-Iron Alloy ● Targets are large-scale and near-surface ● Disseminated nickel mineralization ● Consistent grade and grain size distribution ● Highly magnetic ● Very dense (8.2 gm/cc) ● No sulphur in mineral or host rock Formu
Slide 14: Decar Nickel District – Conventional Metallurgy
Decar Nickel District – Conventional Metallurgy Simple, two-stage process ➢ Magnetic separation ➢ Conventional flotation High recoveries, high grade products ➢ 85% recovery of DTR Ni grade ➢ Ni concentrate grading 63% Ni and 30% Fe ➢ By-product iron ore concentrate grading 60- 65% Fe Clean process,
Slide 15: An Integrated Nickel Operation for the 21st Century
An Integrated Nickel Operation for the 21st Century Premium Nickel Product Suitable for Stainless Steel or Electric Vehicle Battery Markets Concentrate (63% Ni, 30% Fe, 1% Co) Conventional briquetting Leaching under moderate conditions Stainless Steel Market – EV Battery Market – Ferronickel Briquet
Slide 16: Baptiste Nickel Briquette – Premium Product
Baptiste Nickel Briquette – Premium Product FPX FeNi briquette to yield high payability given similarity to NPI & Ferronickel Global Nickel Products -- Ni Content & Payability (% LME Nickel Price) Sulphide Concentrate (~15% Ni) Baptiste FeNi Briquette (~63% Ni, ~30% Fe) Ferronickel (~30% Ni, ~70% Fe
Slide 17: Ni Concentrate Feed for EV Battery Market
Decar Ni Concentrate Feed for EV Battery Market ➢ Leach testing confirms the potential for the production of nickel sulphate and cobalt sulphate from Baptiste awaruite ore ➢ Simple 3-stage process, with potential to be more efficient than the typical 5-stage processes required to convert sulphide an
Slide 18: Baptiste Project – 2020 PEA
Baptiste Project – 2020 PEA Confirms Baptiste as one of the world’s most robust large-scale nickel projects Results Pre-tax NPV (8% discount rate) $2.93 billion Pre-tax IRR 22.5% Payback period (pre-tax) 3.5 years After-tax NPV (8% discount rate) $1.72 billion After-tax IRR 18.3% Payback period (aft
Slide 19: Baptiste Project – 2020 PEA Capital Costs
Baptiste Project – 2020 PEA Summary of capital cost expenditures (US$) Pre-Production In-Pit Deposition Sustaining Total LOM Category M$ M$ M$ M$ Direct Costs Mobile Equipment $155.1 $0.0 $353.5 $508.6 TSF $137.9 $14.5 $534.3 $686.6 Mine and TSF Site Preparation $95.5 $0.0 $90.4 $185.9 Mineral Proce
Slide 20: Baptiste Project – 2020 PEA Operating Expenditures
Baptiste Project – 2020 PEA Operating expenditures (US$/t milled) Phase 1 Phase 2 Total Estimated Average LOM OPEX Yr 1 - 21 Yr 22 - 35 LOM Mining $2.28 $2.66 $2.43 Mineral Processing $2.71 $2.91 $2.79 Briquette Transport $0.19 $0.18 $0.19 Rail Terminal and Access Road $0.05 $0.05 $0.05 General Site
Slide 21: Baptiste Project – 2020 PEA Cost Curve
Baptiste Project – 2020 PEA Confirms potential for lowest quartile position on nickel cost curve Global Nickel Market Cost Curve Baptiste C1 $2.74/lb Source: Wood Mackenzie, RBC Capital Markets, spot price on August 11, 2020 All figures in US$ C1 operating costs are the costs of mining, milling and
Slide 22: Overview of Global Base Metals Projects
Overview of Global Base Metals Projects Decar’s Baptiste Project ranks highly among global base metals projects Strategic Value Index - Ratio of Mine Life to Payback (After-Tax) - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Taylor, USA, South 32, Zn 18.1 Alpala, Ecuador, Solgold, Cu 12.9 Kamoa-Kak
Slide 23: Baptiste Project – Low Capital Intensity
Decar Nickel District – Baptiste Project Low initial capital intensity compared to other recent large nickel mines US$ capital cost per tonne annual Ni production $92,000 $83,000 $79,000 $73,000 $60,000 $56,000 $53,000 $37,000 Baptiste (Canada) Barro Alto Ramu Onca Puma Goro Ravensthorpe Koniambo Am
Slide 24: Baptiste Project – Low Capital and Operating Cost
Decar Nickel District – Baptiste Project Low capital and operating cost compared to other nickel mines Selected HPAL & Caron Ni Project Costs, Adjusted to $2017 Basis 16,000 Yabulu (Queensland - Australia) Ramu (MCC - Papua New Guinea) 14,000 US$/tonne Operating Cost 12,000 VNC (Vale - New Caledonia
Slide 25: Global Base Metals Projects – P/NPV
Global Base Metals Projects – P/NPV FPX Nickel has significant potential upside to re-rate to the peer group on P/NPV basis P/NPV - Base Metals Tamarack, USA, Talon Metals, Ni 0.78 Araguaia, Brazil, Horizonte Minerals, Ni 0.41 Arctic, USA, Trilogy, Cu 0.25 Kwanika, Canada, Serengeti, Cu 0.24 Filo de
Slide 26: Baptiste – The Green Choice for Nickel
Baptiste – The Green Choice for Nickel Baptiste Ni production to have lowest carbon intensity in global nickel market Estimated Carbon Footprint Tonnes CO2/Tonne Refined Ni produced 80.00 69.00 70.00 60.00 50.00 45.00 40.00 30.00 27.50 20.00 10.00 7.19 2.40 - FPX Baptiste Nickel Class 1 Nickel Class
Slide 27: Baptiste – The Green Choice for Nickel
Baptiste – The Green Choice for Nickel Low-strip ratio and production of Ni product with no smelting required allows Baptiste Ni production to have significantly lower carbon intensity than sulphide Ni production Estimated Carbon Footprint Tonnes CO2/Tonne Refined Ni by Stage of Production 8.00 7.19
Slide 28: Baptiste – A Potential Carbon Neutral Mine
Baptiste – A Potential Carbon Neutral Mine According to Dr. Ian Power (Professor, Trent University), Baptiste “offers a tremendous opportunity for developing a carbon-neutral mine” - Baptiste mill waste (brucite) naturally sequesters CO2 - Generates a possible carbon benefit under the B.C. carbon ta
Slide 29: 2021 – Focus on Growth & Discovery
2021 – Focus on Growth & Discovery Dual-track strategy for Baptiste project development and Van Target drilling Baptiste Project Development • Prefeasibility metallurgical test program and pilot testing, including optimization of key parameters and production of key products: • Ferronickel concentra
Slide 30: Baptiste Project – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Near-Surface Consistent Grade Conventional Open Pit • Consistent grade with low Mining variability • Bulk mining operation • Higher-grade near-surface zone • Truck and shovel for starter pit • Low strip ratio 0.40:1 Large Resource with C
Slide 31: Baptiste Project – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Low Capital Intensity High-Value Nickel Product • Low capital intensity compared • High-grade Ni product (63% Ni) to recent Ni projects with low impurities • ~US$37K/t annual Ni output • Suited for direct feed to (2020 PEA) stainless ste
Slide 32: Baptiste Project – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Excellent Jurisdiction Excellent Local Relationships • British Columbia rated 2nd most • Signed MOU and strong attractive mining jurisdiction in relationship with First Nations world by Mining Journal (2017) • Local community involvement
Slide 33: Share Structure & Financial Position
Share Structure & Financial Position Recent Price: C$ 0.70/share FPX (TSX-V): 2016-2021 Price Chart (C$/share) ➢ 52-week Range: C$ 0.11 – C$ 0.84 ➢ Market Capitalization: ~ C$ 126 million ➢ Average daily volume: ~ 200,000 shares Shares Outstanding ➢ Basic: 181.0 million ➢ Fully Diluted: 195.8 millio
Slide 34: Management
Management ● Martin Turenne – President, CEO & Director ➢ Executive with over 17 years’ experience in the commodities industry, including over 7 years in the mining industry ➢ Formerly CFO of FPX Nickel from 2012 to 2015 ➢ Formerly with KPMG LLP and Methanex Corporation ➢ Chartered Professional Acco
Slide 35: Board of Directors
Board of Directors ● Peter Bradshaw – Chairman ➢ Exploration geologist with 45 years experience with Barringer Research, Placer Dome and Orvana Minerals ➢ Key Discoveries/projects: Porgera, Kidston, Misima, Omai, Decar ➢ Member, Canadian Mining Hall of Fame ● Peter Marshall ➢ Mining engineer with 30
Slide 36: FPX Nickel Corp. contact details
FPX Nickel Corp. Suite 620 – 1155 West Pender Street Vancouver, BC Canada V6E 2P4 Phone: +1 604-681-8600 www.fpxnickel.com info@fpxnickel.com Twitter: @FPX_Nickel 36