Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q2 2018 Earnings Presentation
26 slides from Nordic Mining Asa's earnings presentation, Aug 17, 2018
Slide 1: Q2 2018 Presentation
OAX: NOM Q2 2018 Presentation Oslo, 17 August 2018 Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com 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: Agenda
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 4: 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 Seabed minerals Lithium (22%) 4
Slide 5: Board of Directors and Management
Board of Directors and Management Management team Board of Directors Ivar S. Fossum, CEO Tarmo Tuominen, Chairman Fossum has 20 years experience from management positions in Deputy CEO in the Finnish mineral group Nordkalk. Geologist with Norsk Hydro (oil/gas and fertilizers) and FMC Technologies. H
Slide 6: Financial status
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 7: Consolidated Income Statements
Consolidated Income Statements Q2-2018 Q2-2017 Acc. 2018 Acc. 2017 2017 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Sales - - - (2.7) (3.8) Payroll and related costs (4.6) (6.3) (10.9) - - Depreciation and amortisation (0.1) (0.1) (0.2) (10.9) (4.5) Other operating exp
Slide 8: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position 30.06.2018 31.12.2017 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 25.0 21.6 Property, plant and equipment 0.1 0.2 Investment in an associate 24.5 29.3 Total non-current assets 49.7 51.1 Cash 48.3 21.5 Other current a
Slide 9: Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 10: World class deposit of high grade rutile and garnet
World class deposit of high grade rutile and garnet Efficient mining concept with minimal footprint 10
Slide 11: Landowner and mining rights
Landowner and mining rights • Agreements with the main landowners at Engebø are signed. The agreements regulate acquisition of the area for the planned processing plant, including harbour facility, and compensation to the landowners for mining and sale of minerals. • The mining area comprised by the
Slide 12: Definitive Feasibility Study – progress in multiple areas
Definitive Feasibility Study – progress in multiple areas Technical development Processing ▪ Finalizing flow sheet based on process test results ▪ Commencing bulk sample program Mining ▪ Investigating optimized open-pit access from service area Modularization ▪ Draft list of potential module yards a
Slide 13: Definitive Feasibility Study – progress in multiple areas
Definitive Feasibility Study – progress in multiple areas Infrastructure and readiness Infrastructure • Discussion with architects for office buildings and external architecture of process plant modules Regulations ▪ Water supply regulation and detail regulation plan of process and mining area Count
Slide 14: Definitive Feasibility Study – comprehensive test work
Definitive Feasibility Study – comprehensive test work • Process test work; repeatability and variability tests and optimization studies are ongoing • Certain aspects of the mineralogy and texture of the Engebø deposit is complex. Therefore, the ongoing process testwork is comprehensive • Additional
Slide 15: Extensive environmental monitoring program
Extensive environmental monitoring program Scope of work • Proposed measuring program for critical parameters according to the waste disposal permit • Proposed monitoring program for the surrounding area, onshore and in the fjord and neighbouring riversystems • Test work related to additives for pro
Slide 16: Rutile: Supply constraints tighten the feedstock markets
Rutile: Supply constraints tighten the feedstock markets Industrial Minerals Magazine market update 24 July 2018 “…… means the already tight rutile market, plagued by supply disruptions, will tighten further this year. Illuka also said that demand for high-grade titanium ores remains very strong. Ti
Slide 17: Keliber, lithium
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 18: Keliber: DFS confirms profitable lithium project
Keliber Definitive feasibility study confirms profitable lithium project • Strong project financials: o Pre-tax NPV@8% of EUR 295 million o Post tax NPV@8% of EUR 225 million o Pre-tax IRR 24% o Post tax IRR 22% o Pay-back period: 5.5 years • Average battery grade lithium carbonate sales volume of 1
Slide 19: Keliber: Efficient ore production mainly from open pits
Keliber Efficient ore production mainly from open pits 19
Slide 20: Keliber: Significantly increased resource base
Keliber Significantly increased resource base Estimated mineral resources 10 9 8 7 Million tonnes 6 5 4 3 2 1 0 sep.12 sep.13 nov.14 mar.16 jun.17 jun.18 Keliber continues with drilling in the prosperouse Ostrobothnia lithium province
Slide 21: Keliber: Priority to secure offtake agreements and financing
Keliber Priority to secure offtake agreements and financing to execute the project • Lithium contract prices have developed positively in the first part of 2018 • Going forward, continued demand growth for batteries for EV/HEV and energy storage is expected to be the main driver for lithium consumpt
Slide 22: Kvinnherad, high purity quartz
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 23: Kvinnherad, high purity quartz
Kvinnherad, high purity quartz • Renewed interest for high purity quartz has caused a review of strategy and new development activities in progress • Additional process testwork on drill cores from the depth is planned • Complete process tests of selected samples will further document the quality of
Slide 24: Q&A
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium - Kvinnherad, high purity quartz 4. Q&A
Slide 25: Norway: Seabed minerals act proposed to parliament
Norway: Seabed minerals act proposed to parliament
Slide 26: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 2 6