Nickel Industries Limited · ASX:NIC
Nickel Industries — H1 2021 Earnings Presentation
20 slides from Nickel Industries's earnings presentation, Aug 26, 2021
Slide 1: A New Force in Global Nickel: Results Presentation 1H 2021
A NEW FORCE IN GLOBAL NICKEL For personal use only Results Presentation 1H 2021 Consistent operations deliver record 1H financial performance 0
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Nickel Mines Limited (ABN 44 127 510 589) (‘NIC’). The information contained in this presentation is for information purposes For personal use only only and has been prepared for use in conjunction with a verbal presentation and should be read in tha
Slide 3: 1H 2021 Highlights
1H 1H2021 Review 2021 HIGHLIGHTS 2 For personal use only ▪ Gross Profit of US$93.4M ▪ 20,210.3 tonnes Ni production ▪ Mine production of +1M wmt ▪ Increased acquisition in Angel ▪ Operating Profit of US$89.9M ▪ Record attributable Ni production ▪ HM EBITDA US$11.5M on a Nickel from 20% to 50% ▪ Stro
Slide 4: Financial Snapshot - An Excellent 1H Across Both RKEF and Mine Operations
FINANCIAL SNAPSHOT - AN EXCELLENT 1H ACROSS BOTH RKEF AND MINE OPERATIONS All figures in US$M 1H 2021 1H 2020 For personal use only ▪ Excellent 1H 2021 financial performance underpinned by: o Strong and consistent RKEF production. Sales Revenue $288.7 $227.8 27% o Higher realised NPI prices. Gross P
Slide 5: Balance Sheet - Growing with Significant Flexibility for the Future
BALANCE SHEET - GROWING WITH SIGNIFICANT FLEXIBILITY FOR THE FUTURE 30 June 31 December For personal use only All figures in US$M 2021 2020 ▪ Strong operational performance has underpinned Current Assets $386.2 $538.6 the maintenance of a robust balance sheet. ▪ During 1H 2021 NIC repaid the remaini
Slide 6: RKEF Production - Industrial Style Consistency
RKEF PRODUCTION - INDUSTRIAL STYLE CONSISTENCY EBITDA figures in US$M 1H 2021 1H 2020 For personal use only EBITDA margins in US$/t Hengjaya Nickel Production (Ni tonnes) 10,073.0 10,651.9 (5.4%) ▪ Consistent production from both Hengjaya Nickel and Ranger Nickel of > 10,000 tonnes. Ranger Nickel Pr
Slide 7: RKEF Operations - Another Period of Consistent Production Performance
RKEF OPERATIONS - ANOTHER PERIOD OF CONSISTENT PRODUCTION PERFORMANCE HENGJAYA NICKEL March 2021 Quarter June 2021 Quarter 1H 2021 RANGER NICKEL March 2021 Quarter June 2021 Quarter 1H 2021 For personal use only NPI Production tonnes 36,811.4 36,927.8 73,739.2 NPI Production tonnes 35,127.9 37,558.7
Slide 8: RKEF Operations – Another Quarter of Strong EBITDA Margins
RKEF OPERATIONS – ANOTHER QUARTER OF STRONG EBITDA MARGINS For personal use only Reliability and consistency are the hallmarks of NIC’s RKEF operations (1) (1) Pricing in the June quarter of 2020 was impacted by COVID-19. 7
Slide 9: NPI Contract Prices - Capturing the Current NPI Tailwinds
NPI CONTRACT PRICES - CAPTURING THE CURRENT NPI TAILWINDS For personal use only ▪ For 1H 2021 o Average China NPI price(1) was ~US$15,300/t Ni representing approximately 88% of the average LME nickel price during the half. o NIC’s weighted average contract sales prices (pre-final assay) was 90.7% of
Slide 10: We Are a Low-Cost Producer of NPI, Generating Strong EBITDA Margins
WE ARE A LOW-COST PRODUCER OF NPI, GENERATING STRONG EBITDA MARGINS ▪ NIC is a low cost, bottom cost quartile producer of NPI. For personal use only o Certain input costs did however increase in 1H 2021 Whilst the overall cost curve has increased – rising nickel ore, electricity and coking coal pric
Slide 11: Hengjaya Mine – A Tale of Two Halves
HENGJAYA MINE – A TALE OF TWO HALVES March Qtr June Qtr March Qtr June Qtr Production summary 1H2020 1H2021 For personal use only 2020 2020 2021 2021 Saprolite mined wmt 149,958 62,610 212,568 456,487 574,791 1,031,278 +385% Overburden mined BCM 179,524 150,817 330,341 262,270 549,213 811,483 Limoni
Slide 12: Angel Nickel Overview - A Quick Refresher
ANGEL NICKEL OVERVIEW - A QUICK REFRESHER Nickel Mines is acquiring an 80% interest in Angel Nickel, with 50% already completed For personal use only ▪ Nickel Mines has executed a binding definitive agreement with Shanghai The Acquisition will add significant scale to Nickel Mines’ attributable nick
Slide 13: Angel Nickel - On Track for Commissioning in 2H 2022
ANGEL NICKEL - ON TRACK FOR COMMISSIONING IN 2H 2022 Engineering, procurement and construction activities at Angel Nickel are progressing well. All material earthworks and plant footings are largely completed, together with the fabrication of key long lead items including boilers, turbines and gener
Slide 14: ESG & Safety
ESG & SAFETY For personal use only Community Environment Health & Safety ▪ Employee numbers are > 1,850 locals(1) at current ▪ Since early 2020 IMIP has cumulatively invested more ▪ Nickel Mines is committed to upholding high standards operations, with an additional ~2,000 expected to be than US$300
Slide 15: COVID-19 Pandemic Prevention and Control
COVID-19 PANDEMIC PREVENTION AND CONTROL ▪ There have been no COVID-19 related disruptions to For personal use only production since the onset of the pandemic in early 2020. ▪ Continued strict enforcement of access controls into and out of the IMIP. ▪ Local government enforcement of a valid negative
Slide 16: 1H 2021 - Consistent, Steady-State Industrial Production and Strong EBITDA Margins
1H 2021 - CONSISTENT, STEADY-STATE INDUSTRIAL PRODUCTION AND STRONG EBITDA MARGINS Quarterly RKEF Ni Production and RKEF EBITDA margin per tonne US$/t 1H 2021: For personal use only ▪ Consistent levels of production of ~10,000/t Ni per quarter. Nickel tonnes ▪ Improved EBITDA margins. ▪ Attractive s
Slide 17: Thank You
For personal use only THANK YOU For further inquiries please contact Justin Werner Cameron Peacock Managing Director Investor Relations & Business Development jwerner@nickelmines.com.au cpeacock@nickelmines.com.au +61 439 908 732 16
Slide 18: Appendix: Additional Information
For personal use only APPENDIX: ADDITIONAL INFORMATION 17
Slide 19: Tsingshan Group Is the Best Partner in the Stainless Steel and Nickel Value Chain
TSINGSHAN GROUP IS THE BEST PARTNER IN THE STAINLESS STEEL AND NICKEL VALUE CHAIN #1 Stainless Steel Producer Globally Robust Growth of Stainless Steel Production For personal use only Global Stainless Steel Market Share (2020) Global Stainless Steel Production Ranking (2) Tsingshan Stainless Steel
Slide 20: Stainless Steel Producer Benchmarking
STAINLESS STEEL PRODUCER BENCHMARKING Market Cap FY20 Stainless Steel Geographic Presence Product Mix FY20 Revenue (US$bn) FY20 EBITDA (US$m) (US$bn) Production Capacity (Mt) For personal use only Indonesia, 21% 19% (1) (2) Private 10.8 42.4 NA China, No Rating 81% 79% 8% 24% (3) 46% 2.5 4.1 388 US$