Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (October 2023)
33 slides from Canada Nickel's investor presentation, October 2023
Slide 1: Canada Nickel Company: Delivering the Next Generation of Nickel
Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC October 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC” or the "Company"). All statements, other than statements of historical fact, are forwar
Slide 3: Summary
Summary Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China Nickel market fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China – potential supercyc
Slide 4: Capital Structure and Analyst Coverage
Capital Structure Analyst Coverage Share Price Performance Proforma Capitalization as of October 11, 2023 Ticker TSXV: CNC Share Price (C$) $1.26 Market Capitalization (C$M) $179 (1) (3) Cash & Equivalents (C$M) $24 Debt(3) (C$M) $16 Market Data 20-Day VWAP (C$) $1.18 (2) 52-Week High / Low (C$) $2.
Slide 5: Management and Board
Management and Board Mark Selby ▪ Previous CEO of Royal Nickel Corporation David Smith ▪ Senior VP, Finance and CFO of Agnico Eagle Mines CEO ▪ Corporate development, strategy, business Chair Limited; B.Comm. planning and market research Executive with P.Eng., C.Dir. ▪ Chartered Director, Director o
Slide 6: Nickel Demand Growth Accelerating from EVs
Nickel Demand Growth Accelerating from EVs Nickel demand growth continues to be underestimated – demand on track to be up 9- 10% annually in first 3 years of decade (3-4X other base metals) and forecasted by CNC to double by 2030 to 5+ Mt and potentially > 6 Mt. Global Nickel Demand (Mtpa) 2020, 202
Slide 7: Nickel Supply – Don't Fear Indonesia! Carbon Footprint & Chinese Control Concerns
Nickel Supply – Don’t Fear Indonesia! Carbon Footprint & Chinese Control Concerns Future supply has a “dirty nickel” issue - Indonesian supply will NOT be a solution for a number of consumers due to its massive carbon footprint. Other consumers will be deterred by integrated Chinese supply chains. E
Slide 8: Nickel Supply – Significant Political Risk
Nickel Supply – Significant Political Risk Is there an ONEC in our future?? Nickel supply facing increasing political risk as Indonesia now dominates nickel supply growth. Just 3 countries control more nickel supply than OPEC did at its peak in 1973. Once HPAL build out largely completed by 2026, ex
Slide 9: Crawford Nickel Sulphide Project Location & Infrastructure
Crawford Nickel Sulphide Project Location & Infrastructure One of the largest nickel sulphide resources located in a well-established mining camp with infrastructure ▪ Major support infrastructure in place ‒ Roads, power, water ‒ Rail connection ▪ Rich mining history and skilled, local workforce ▪ L
Slide 10: Crawford Bankable Feasibility Study Highlights
Crawford Bankable Feasibility Study Highlights The Crawford BFS demonstrates strong financial returns based on a large resource with significant upside potential. ▪ US$2.5 billion after-tax NPV8; ($2.6 billion including expected Robust Carbon Capture & Storage tax credit) Economics ▪ 17.1% after-tax
Slide 11: Crawford BFS Operating Costs & Capex
Crawford BFS Operating Costs & Capex Two phase production plan peaks at nickel production of 48ktpa with a life-of-mine AISC of US$1.54/lb ($3,395 per tonne) Unit Phase I Phase II Phase III Life-of-Mine (Years 1 – 3.5) (Years 3.5 – 29) (Years 30 – 41) (Years 1 – 41) Mill Capacity ktpd 60 120 120 120
Slide 12: Crawford: 1st Quartile Net Cash Cost Producer
Crawford: 1st Quartile Net Cash Cost Producer Based on BFS results, Crawford is expected to be a low-cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs. Crawford's Net C1 Cash Cost vs 2023 Net C1 Cash Cost of Global Nickel Operations Source: Wood Mackenzie 12
Slide 13: Crawford: Low Carbon Footprint
Crawford: Low Carbon Footprint Crawford estimated to produce 2.3 tonnes CO2 per tonne of nickel equivalent production: 89% lower than industry average of 34 tonnes of CO2 based on Skarn E0. Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t NiEq) Crawford 2.3 Source: Skarn Associates Q2-2023 E0 ba
Slide 14: Second Largest Nickel Operation & Project Globally (Proven & Probable Reserves)
Second Largest Nickel Operation & Project Globally (Proven & Probable Reserves) Crawford contains the world’s 2nd largest nickel reserves Largest Global Nickel Operations and Projects by Reserves (Mt Contained Nickel) Source: Wood Mackenzie, Company fillings 14
Slide 15: Crawford Nickel Sulphide Project
Crawford Nickel Sulphide Project Crawford is expected to be the 3rd largest nickel sulphide operation globally, based on bankable feasibility study results Largest Global Nickel Sulphide Operations Based on 2022 Annual Production Source: Wood Mackenzie, Company fillings 15
Slide 16: Crawford Anchored by 2nd Largest Nickel Resource
Crawford Anchored by 2nd Largest Nickel Resource1 Measured & Indicated resource increased by 74% (compared to the 2022 resource estimate) to 6.0 million tonnes 1 Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data 16
Slide 17: Accelerated Carbonation Process Achieves NetZero and Generates Substantial CO2 Credits
Accelerated Carbonation Process Achieves NetZero and Generates Substantial CO2 Credits Canada Nickel’s simple carbon storage approach – IPT Carbonation or In-Process Tailings Carbonation – utilizes tailings directly from the mineral processing circuit and conditions them with CO2 for a brief period
Slide 18: Permitting Milestone: Successful Completion of First Phase of Federal Permitting
Permitting Milestone: Successful Completion of First Phase of Federal Permitting “Taykwa Tagamou Nation is proud of the partnership we have with Canada Nickel. This innovative model of applying Traditional Knowledge through a land use study enables our community to both understand the project’s Succ
Slide 19: Crawford Project Milestones
Crawford Project Milestones Project is less than 21 months away from target receipt of permits and construction decision 2024 2025 2026 2027 ❑ Filing of ❑ Receipt of ❑ Construction ❑ First Environmental final permits production Impact by mid-2025 by year-end Statement by mid-2024 ❑ Construction deci
Slide 20: Unlocking the Timmins Nickel District
Unlocking the Timmins Nickel District Potential Zero-Carbon Nickel District A substantial new nickel district has been consolidated with 20+ nickel targets ▪ 42km2 of ultramafic/mag highs – 25X the scale of 1.6 km2 mag anomaly footprint of Crawford (containing 6.0 Mt of M&I nickel and a further 3.7
Slide 21: Regional Exploration Success – Multiple Deposits with Larger Footprint than Crawford
Regional Exploration Success – Multiple Deposits with Larger Footprint than Crawford ▪ Potential to unlock a district scale nickel camp with multiple deposits comparable to Crawford ▪ Current drilling confirms large scale discovery at Reid – delineated mineralized footprint already 90% of Crawford f
Slide 22: Texmont Mine Acquisition: Near Term Production Potential
Texmont Mine Acquisition: Near Term Production Potential ▪ In March 2023, Canada Nickel acquired the past producing Texmont mine. A mine and mill operated on the site from July 1971 to December 1972 at a capacity of 500 tpd. ▪ Provides potential for near-term open pit production from near-surface hi
Slide 23: Really?? A New Nickel District?
Really?? A New Nickel District? ▪ Nickel resources are very concentrated in just 6 regions – East half Sulawesi (Indonesia), Sudbury (Canada), Taimyr Peninsula (Russia), Eastern Goldfields (Australia), Bushveld (southern Africa), Surigao/Palawan (Philippines), Jinchuan (China) – The transactions dem
Slide 24: Corporate Activity in Nickel Accelerating
Corporate Activity in Nickel Accelerating In June 2020, BHP acquired the Honeymoon Well project from Norilsk Nickel. The tenements are located 50km ` from BHP’s Mt. Keith operation lying in the prolific Agnew-Wiluna greenstone belt; contains estimated 173Mt of M&I resource grading 0.68% nickel. In O
Slide 25: Summary: Investment Highlights and 2023 Catalysts
Summary Investment Highlights 2023 Catalysts ▪ Nickel market entering “supercycle” by mid-decade driven by EV demand ✓ Strategic Investor ▪ Recent nickel supply growth largely “dirty nickel” - ✓ Appointment of Debt Advisors little visibility on supply growth outside Indonesia ▪ Crawford largest nick
Slide 26: Appendix
zg) CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 27: Crawford BFS Detailed Summary
Crawford BFS Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 29) (30 - 41) (Years 1 - 41) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,943 $1,600 $0 $3,543 Sustaining & Closure US$ millions / year $0 $52 $10 $36 Mi
Slide 28: Crawford BFS Summary – Capital Costs
Crawford BFS Summary – Capital Costs Project construction to be done with single expansion from 60ktpd to 120ktpd mill capacity. Peak capital investment of $1.7 billion for both phases due to Critical Minerals refundable tax credit and expected Carbon Capture & Storage tax credit The bankable feasib
Slide 29: Crawford Proven & Probable Reserves
Crawford Proven & Probable Reserves Crawford Mineral Reserves (effective August 31, 2023) The Mineral Reserve Estimate was prepared in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM, 2014) by QP Dave Penswick, P.Eng who is an independent consultant. Mineral
Slide 30: Crawford Mineral Resources
Crawford Mineral Resources Crawford Mineral Resources (effective August 31, 2023) Mineral Resources have an effective date of August 31, 2023. Mr Scott Jobin-Bevans with Caracle Creek International Consulting Inc at the time of preparation of the estimate, is the Qualified Person responsible for the
Slide 31: Comparison of Key Metrics: BFS vs PEA
Comparison of Key Metrics: BFS vs PEA The feasibility study had multiple improvements to the PEA in mine life and recoveries Source: Bankable Feasibility Study news release, titled “Canada Nickel Announces Positive Bankable Feasibility Study For its Crawford Nickel Sulphide Project”, Effective Date
Slide 32: Current Downstream Path to Stainless Steel
Current Downstream Path to Stainless Steel Future Path Likely to Include Path to EV ▪ Nickel, iron and chromium are three key alloying US Stainless Conversion Margins metals in the production of stainless steel, which (US$/lb Nickel) vs makes Crawford products suitable feeds Nickel Sulphate Premiums
Slide 33: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com www.canadanickel.com Twitter: @CanadaNickel
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