Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (September 2024)
51 slides from Northern Minerals's investor presentation, Sep 16, 2024
Slide 1: Equity Raising Presentation
Equity Raising Presentation Creating value and contributing to a cleaner earth 16 SEPTEMBER 2024 ASX:NTU NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Important Information
Important Information This investor presentation (“Presentation”) is dated 16 September 2024 and has been prepared by Northern Minerals Presentation for further details about international offer restrictions. Limited (ACN 119 966 353) (“NTU”, “Northern Minerals” or the “Company”). By attending an in
Slide 3: Important Information
Important Information You are strongly cautioned not to place undue reliance on forward-looking statements, particularly in light of the requirements and standards, including the requirements of the Corporations Act and the ASX Listing Rules. Investors current economic climate and the significant vo
Slide 4: Investment Highlights
Investment Highlights UNIQUELY PLACED TO BECOME A SIGNIFICANT SUPPLIER OF HEAVY RARE EARTHS ALONGSIDE AN EXTENSIVE EXPLORATION PORTFOLIO Globally significant Strategic partnership with Accelerated pathway to high-grade Dysprosium (Dy) Iluka Resources establishing a production via expansion of and Te
Slide 5: Equity Raising
Equity Raising 5
Slide 6: Equity Raising Overview
Equity Raising Overview EQUITY RAISING COMPRISING PLACEMENT AND SPP • Northern Minerals is conducting an equity raising (the “Offer”), comprising: • a two tranche non-underwritten Placement to institutional and sophisticated investors, with $43 million in binding commitments having been received for
Slide 7: Equity Raising Outcome
Equity Raising Outcome PROCEEDS WILL ENSURE NORTHERN MINERALS IS FUNDED 1 THROUGH TO COMPLETION OF THE BROWNS RANGE HEAVY RARE EARTH PROJECT DFS AND PROGRESS TOWARDS FID Sources $M Finalisation of DFS: • DFS repricing and contract negotiation Existing cash (as at 30 June 2024) – unaudited 8.3 • Meta
Slide 8: Equity Raising Timetable
Equity Raising Timetable Event Date1 SPP Record Date Friday, 13 September 2024 Launch of Offer (Placement and SPP) and lodgment of Appendix 3B with ASX Monday, 16 September 2024 Placement Tranche One Settlement Monday, 23 September 2024 Placement Tranche One Allotment Tuesday, 24 September 2024 SPP
Slide 9: Corporate Snapshot
Corporate Snapshot COMPANY OVERVIEW AND INVESTMENT HIGHLIGHTS 9
Slide 10: Company Introduction
Company Introduction A HIGH-GRADE HEAVY RARE EARTHS DEPOSIT, EXPANSIVE EXPLORATION POTENTIAL AND AN EXPERIENCED TEAM DRIVING BROWNS RANGE TO OPERATION 1 BROWNS RANGE HEAVY RARE EARTHS (HRE) PROJECT $0.0240 Browns Range is the most advanced HRE project globally2 Share price4 Moving towards FID, t
Slide 11: Supplying a Sustainable Future
Supplying a Sustainable Future DYSPROSIUM (Dy) AND TERBIUM (Tb) ARE KEY INPUTS TO HIGH TEMPERATURE PERFORMANCE MAGNETS HIGH TEMPERATURE PERFORMANCE MAGNETS ARE CRITICAL COMPONENTS OF ELECTRIC VEHICLES, WIND TURBINES, DEFENCE APPLICATIONS AND BROADER CLEAN ENERGY TECHNOLOGIES Investor Presentation |
Slide 12: Rare Earth Basket
Rare Earth Basket BROWNS RANGE HAS THE POTENTIAL TO BE THE LARGEST SOURCE OF Dy AND Tb OUTSIDE OF CHINA 2 2,3 Dy/Tb assemblage by volume Rare earth assemblage basket value ▪ High Dy/Tb Concentration: Browns US$/kg Range has a rare earths assemblage of 10% 50.00 10%1 Dy and Tb, among the highest of a
Slide 13: Board and Management
Board and Management FOCUSSED ON EXECUTING FID AND DEVELOPMENT STRATEGY ADAM HANDLEY Executive Chairman ANGELA GLOVER Chief Operations Officer • Past President of the Australia China Business Council, specialising in • 20+ years’ experience in the resources and infrastructure industries, with advisi
Slide 14: Environmental, Social and Governance
Environmental, Social and Governance ESTABLISHED COMMUNITY ENGAGEMENT, ONGOING ENVIRONMENTAL MONITORING AND MANAGEMENT, PLANNING FOR SUSTAINABLE DEVELOPMENT AND REPORTING Continuous All site activities improvement of Ongoing environmental Extensive environmental Pursuing a hybrid undertaken with zer
Slide 15: Browns Range HRE Project
Browns Range HRE Project UNDERPINNED BY THE WOLVERINE DEPOSIT, THE HIGHEST KNOWN GRADE Dy AND Tb DEPOSIT 1 High Value • Mining and processing at site to produce c. 25% Concentrate TREO concentrate rich in heavy rare earths Exploration • Recent drilling results confirm deposit is open Upside at depth
Slide 16: DFS Update
DFS Update 1 PRODUCTION OF Dy/Tb-RICH CONCENTRATE INCORPORATING LESSONS LEARNT FROM PILOT PLANT Conventional open pit mining followed by underground mining using sublevel caving Established flowsheet informed by comprehensive metallurgical testwork and three-year pilot plant operation Xenotime ore i
Slide 17: Resource Definition Drilling
Resource Definition Drilling EXCEPTIONALLY HIGH-GRADE ASSAYS RETURNED OVER WIDE MINERALISED INTERVALS 1,2 In May 2024, 16,586 m (42 holes) of drilling completed at Wolverine Nominal 25 m grid spacing Average depth of 486 m Program designed to improve the Inferred Resource classification to a
Slide 18: Proposed Funding Pathway
Proposed Funding Pathway PROGRESSING TOWARDS SECURING AN OPTIMAL FUNDING STRUCTURE Potential Project Funding Sources Recent Funding Progress ✓ Discussions underway with NAIF Debt Equity Other and EFA ✓ Previously fulfilled the strategic EFA / NAIF1 Iluka Resources Other assessment phase of NAIF’s St
Slide 19: Iluka Resources Partnership
Iluka Resources Partnership BROWNS RANGE FURTHER STRENGTHENED BY LONG-TERM SUPPLY AND FUNDING ARRANGEMENTS WITH DOMESTIC PARTNER ILUKA RESOURCES Indicative illustration of price received by Northern Minerals Supply of up to 5.5 kt contained TREO in for TREO contained in concentrate concentrate per
Slide 20: Pathway to Production
Pathway to Production ACHIEVING KEY MILESTONES AND MAINTAINING MOMENTUM TOWARDS FID 1 Iluka Resources Mineral Resource Exceptional assay DFS updates incl. Final DFS & strategic Definition Drilling results from Drilling Mineral Resource Ore Reserve Targeted Targeted Mining partnership Program commenc
Slide 21: Wolverine Deposit
Wolverine Deposit NEAR-TERM DEVELOPMENT WITH A CLEAR PATHWAY TO PRODUCTION 21
Slide 22: Wolverine Resource
Wolverine Resource WOLVERINE UNDERPINS THE INITIAL LIFE OF MINE, WITH CONSIDERABLE OPPORTUNITY TO DEVELOP NEARBY RARE EARTH DEPOSITS Current Resource Estimate Wolverine Deposit Expansion JORC-compliant Mineral Resource estimate1 kt 80 1.2% Ore TREO4 Dy Tb TREO4 Mt % kg/t kg/t t 0.96% 0.86%2 1.0% Wol
Slide 23: Geology
Geology ROBUST GEOLOGICAL DATA SUPPORTED BY EXTENSIVE DRILLING EFFORTS OF > 160,000 METERS 1 Wolverine is the largest deposit discovered to date within the Browns Range system, with the dominant mineralisation being xenotime hosted within an extensive structurally controlled hydrothermal breccia
Slide 24: Browns Range Pilot Plant
Browns Range Pilot Plant CRITICAL STEP TO DE-RISKING OPERATIONAL FLOWSHEET AND ENABLED ESTABLISHMENT OF KEY MINE OPERATIONS INFRASTRUCTURE Trialing of mining and processing techniques during the three-year operation informed strategic shift to simplify to mining and beneficiation project, which re
Slide 25: Vast Exploration Portfolio
Vast Exploration Portfolio >5,600 KM 2 LANDHOLDING ACROSS WA & NT HIGHLY PROSPECTIVE FOR RARE EARTHS 25
Slide 26: Significant Tenure Holdings
Significant Tenure Holdings Investor Presentation | September 2024 26
Slide 27: Exploration Potential
Exploration Potential STRONG PIPELINE OF DEFINED MINERAL RESOURCES 1 AND PROSPECTS TO SUPPORT POTENTIAL MINERAL RESOURCE EXPANSION Northern Minerals assets are centred on the Browns Range Dome, a major geological structure of ~1,500 km2 traversing the WA/NT border Highly prospective and underexp
Slide 28: Proposed Exploration Program
Proposed Exploration Program UP TO $6.3M 1 ALLOCATED TO A TWO-PHASE EXPLORATION DRILLING PROGRAM IN FY2025 2 FOR RESOURCE EXTENSION AND TARGET DEVELOPMENT Phase 1 Phase 2 Proposed budget: $3.0M Proposed budget: $2.8M ▪ ~3,600 m diamond drilling to explore for mineralised feeder ▪ ~600 m stratigraphi
Slide 29: Investment Summary
Investment Summary A COMPELLING RARE EARTHS INVESTMENT OPPORTUNITY 29
Slide 30: Active Work Programs
Active Work Programs PROGRESSING BROWNS RANGE: NEXT 12 MONTHS TO FID Technical Funding Social & Environmental Update Wolverine Mineral Resource Progress financing discussions with NAIF Maintain and progress regulatory estimate and EFA compliance and permitting Update mine design, scheduling and cave
Slide 31: Investment Recap
Investment Recap STRATEGIC PARTNERSHIP Long-term supply and funding partnership with Iluka Resources BROWNS RANGE VAST EXPLORATION HRE PROJECT PORTFOLIO LONG-TERM >5,600 km2 of total Flagship project at near-term development OFFTAKE landholding across WA with defined pathway to AGREEMENT & NT highly
Slide 32: Our Office / Visit Us Online / Contact Us
OUR OFFICE Northern Minerals Limited Ground Floor, 40 Kings Park Road West Perth, Western Australia, 6005 Australia VISIT US ONLINE www.northernminerals.com.au LinkedIn: Northern-Minerals X: NorthernMins CONTACT US Phone: + 61 8 9481 2344 invest@northernminerals.com.au info@northernminerals.com.au 3
Slide 33: Appendix
Appendix 33
Slide 34: Appendix A: Source Documents
Appendix A: Source Documents PEER COMPARISON REFERENCE DETAILS Development TREO Dy/Tb:TREO Project Company Category Source Stage Grade ratio Measured and 10 October 2022: ASX Announcement – “Updated Wolverine Browns Range Northern Minerals Ltd (ASX:NTU) Feasibility Study 0.76% 10.01% Indicated Miner
Slide 35: Rare Earths Market Opportunity
Rare Earths Market Opportunity COMPELLING MARKET OPPORTUNITY DRIVEN BY PUSH FOR GLOBAL DECARBONISATION AND ELECTRIFICATION Dy and Tb oxide historical and forecast demand2 kt 10 • Dy and Tb enable Neodymium-Iron-Boron (NdFeB) magnet 9 Others performance at high temperature 8 7 Wind Power • NdFeB magn
Slide 36: Rare Earths Pricing
Rare Earths Pricing STRONG MARKET FUNDAMENTALS SUPPORT EXPECTATIONS OF LONG -TERM INCREASE IN Dy/Tb PRICES FROM CURRENT LEVELS • Prices expected to continue to improve from recent lows: increasing Dy and Tb oxide historical prices4 demand from EV and wind power applications is catching up with suppl
Slide 37: Rare Earth Elements at Wolverine
Rare Earth Elements at Wolverine Dy/Tb ACCOUNTS FOR >70% OF THE RARE EARTH BASKET VALUE AT WOLVERINE MAKING NORTHERN MINERALS HIGHLY LEVERAGED TO Dy/Tb PRICE INCREASES Resource REO distribution1 REO contribution to basket value2 1) Based on October 2022 Wolverine JORC compliant Measured Mineral Reso
Slide 38: Diversifying the Global Magnet Value Chain
Diversifying the Global Magnet Value Chain CHINA DOMINATES THE VALUE CHAIN, OPPORTUNITY TO SUPPLY CRITICAL FEEDSTOCK FOR DOWNSTREAM PROCESSING OF Dy AND Tb IN AUSTRALIA CRACKING & MAGNET MINING BENEFICIATION REFINING METALLISATION MAKING MANUFACTURING LEACHING China 67% U.S. 10% China 88% Chin
Slide 39: Strong Government Sector Support
Strong Government Sector Support NORTHERN MINERALS IS WELL POSITIONED TO ACCESS GOVERNMENT FUNDING The critical minerals and rare earth industries are perfect examples of sectors that will be crucial to our future…The Government has backed the Browns Range Heavy Rare Earths Project… - Madeline King,
Slide 40: Appendix B: Mineral Resource
Appendix B: Mineral Resource GLOBAL MINERAL RESOURCE BROWNS RANGE HEAVY RARE EARTHS ESTIMATE (OCTOBER 2022) 1,2 PROJECT OVERVIEW TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Deposit Classification Mt % kg/t kg/t kg/t % kg • The Project is located in the East Kimberley region of Western Australia, Measured 0.14 0
Slide 41: Appendix C: Key Risks
Appendix C: Key Risks Northern Minerals is subject to a variety of risk factors. Some of these are specific to its business activities, while Furthermore, development of and production from rare earths projects is subject to many risks, including low side others are of a more general nature. Individ
Slide 42: Appendix C: Key Risks
Appendix C: Key Risks Volatility of the price of rare earth elements of rare earths, will adversely affect Northern Minerals’ business, results of operations and its ability to finance Northern Minerals’ future revenue will be affected by market fluctuations in rare earth prices. This is because a p
Slide 43: Appendix C: Key Risks
Appendix C: Key Risks Supply agreement Browns Range Project. If the conditions are not satisfied or waived, this would also result in the Company not raising Northern Minerals has entered into the Supply Agreement with Iluka in respect of rare earths product from the a significant portion of the exp
Slide 44: Appendix C: Key Risks
Appendix C: Key Risks Reserves and resource estimates The Company notes that it is currently undertaking a mineral resource estimate update of the Wolverine deposit at No assurance can be given that the anticipated tonnages and grades of ore will be achieved during production or the Browns Range Hea
Slide 45: Appendix C: Key Risks
Appendix C: Key Risks Title/Land Tenure The Group requires government regulatory approvals for its operations. The impact of actions, including delays and Securing and maintaining tenure over mining tenements is critical to the future development of the Group’s inactions, by state, local shire and F
Slide 46: Appendix C: Key Risks
Appendix C: Key Risks Third party risk Federal Treasurer’s Orders The Group relies significantly on strategic relationships with other entities and also on a good relationship with Northern Minerals refers to its ASX Announcements dated 3 June 2024 and 2 September 2024, in which the regulatory and g
Slide 47: Appendix C: Key Risks
Appendix C: Key Risks Market conditions Market liquidity There are general risks associated with investments in equity capital markets. Australian and international share There can be no guarantee of an active market for the Company’s shares or that the price of the Company’s shares market condition
Slide 48: Appendix C: Key Risks
Appendix C: Key Risks Dilution risk In light of the breach the Group has engaged legal, technical and cyber security specialists to assist with the Existing shareholders who do not participate in the Placement will have their percentage shareholding in the repairing of affected systems and implement
Slide 49: Appendix D: International Offer Restrictions
Appendix D: International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any Certain Canadian income tax considerations. Prospective purchasers of the New Shares should consult their own jurisdiction in which it would be unlawful
Slide 50: Appendix D: International Offer Restrictions
Appendix D: International Offer Restrictions Hong Kong Singapore WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding This document and any other materials relating to the New Shares have not been, and will not be, lodged or Up and Miscellaneo
Slide 51: Appendix D: International Offer Restrictions
Appendix D: International Offer Restrictions United Kingdom United States Neither this document nor any other document relating to the offer has been delivered for approval to the Financial This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the Un
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