Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (December 2024)
32 slides from Canada Nickel's investor presentation, December 2024
Slide 1: Canada Nickel Company: Delivering the Next Generation of Nickel
Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC December 2024
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 Pro Forma Capitalization Ticker TSXV: CNC Share Price (C$) $0.94 Market Capitalization (C$M) $171 Cash & Equivalents (C$M) $45 (1,2) Debt(2) (C$M) $40 Market Data 20-Day VWAP (C$) $0.91 52-Week High / Low (C$) $2.24 / $0.89 30-Day Avg. Daily
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 Inco P.Eng., C.Dir. ▪ Chartered Director, Direc
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 – 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 8: Indonesia facing real ore constraints
Indonesia facing real ore constraints Nearly 20 years of “Triple high-grading” – nickel grade, Fe/Ni ratio, slag chemistry – taking toll on Indonesian laterite ore availability Source:Macquarie 8
Slide 9: Indonesia Facing Real Ore Constraints
Indonesia Facing Real Ore Constraints Local Indonesian ore prices now in-line with Chinese prices and Indonesian imports of Philippines ore now ~8% of global supply. Source:Macquarie 9
Slide 10: 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 11: 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 12: 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 13: 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 13
Slide 14: 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 15: Second Largest Nickel Operation & Project Globally (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 15
Slide 16: 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 16
Slide 17: Accelerated Carbonation Process Achieves NetZero and Generates 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 Filing of Impact Statement
Permitting Milestone: Successful Completion of Filing of Impact Statement “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 Successfull
Slide 19: TTN Investment Partnership
TTN Investment Partnership $20 million investment by Taykwa Tagamou Nation (“TTN”) – largest ever known direct investment into a mining project in Canada by a First Nation • TTN will invest $20 million of its own capital in a 5-year Convertible Note, yielding 4.75%, convertible into 16.67 million sh
Slide 20: Crawford Project Milestones
Crawford Project Milestones Project is less than one year away from target receipt of permits and construction decision 2024 2025 2026 2027 ❑ Receipt of final ❑ Construction ❑ First ❑ Environmental permits by fall 2025 production Impact Statement by year-end filed Nov 2024 ❑ Debt & Equity funding pa
Slide 21: Timmins Nickel District
Timmins Nickel District Potential to be World’s Largest Nickel Sulphide District Consolidated 20+ targets with 42km2 of target geophysical footprint 25X the scale of 1.6 km2 at Crawford - 18 properties successfully drilled - 10 properties have target footprint larger than Crawford - 98% success rate
Slide 22: Bannockburn – Massive Sulphide Discovery
Bannockburn – Massive Sulphide Discovery Massive sulphide discovery at Bannockburn F-Zone: 3.95% nickel, 0.40% Cu, 0.15% Co, 1.08 g/t Pd & Pt over 4.0 metres within 1.61% nickel over 12 metres • First massive sulphide drilled by Canada Nickel in Total Magnetic Intensity and F-zone location Timmins N
Slide 23: 2024 Exploration Objectives
2024 Exploration Objectives Deloro is first of seven new nickel resources expected by spring 2025, demonstrating the potential scale of the Timmins Nickel District Resource Targets Discovery Targets Property Drilling Resource Geophysical Property Geophysical Start Timeline footprint footprint (km2)
Slide 24: 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 25: NetZero Metals – Downstream Nickel & Stainless Steel Processing Facilities
NetZero Metals – Downstream Nickel & Stainless Steel Processing Facilities Canada Nickel’s wholly owned subsidiary, NetZero Metals – to develop Downstream Nickel Processing & Stainless Steel Facilities in the Timmins Region • Expected to be the largest nickel processing facility in North America and
Slide 26: Summary: Investment Highlights and 2024 Catalysts
Summary Investment Highlights 2024 Catalysts ▪ Key Investors: Agnico Eagle (11%), Samsung SDI (8.7%) and Anglo American (7.6%) and $20 million Investment by Taykwa Tagamou ✓ $35 Million Flow-Through Financing Nation – largest ever known direct investment into a critical minerals mining project in Ca
Slide 27: Appendix
CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 28: Crawford BFS Detailed Summary
Crawford BFS Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 29) (30 - 41) (Years 1 - 41) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,943 $1,600 $0 $3,543 Sustaining & Closure US$ millions / year $0 $52 $10 $36 Mi
Slide 29: 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 30: 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 31: 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 32: 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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