Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q3 2021 Earnings Presentation
29 slides from Nordic Mining Asa's earnings presentation, Nov 9, 2021
Slide 1: Q3 2021 Interim Presentation
Multi asset exposure Large deposit with unique location Minerals for a sustainable future All major permits in place EN Expand Oslo: NOM Valuable investment in lithium Q3 2021 Interim Presentation November 9, 2021
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
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 3
Slide 4: Climate awareness increases focus on mineral supply
Climate awareness increases focus on mineral supply Green transition = increased mineral production • New government: Strong ambitions for the Norwegian mining industry • Sustainability: Norway is rolling out the rating system Towards Sustainable Mining (TSM) 4
Slide 5: Sustainable production of high-end industrial minerals and metals
Sustainable production of high-end industrial minerals and metals Rutile (Titanium dioxide) • Environmentally friendly pigment • Air cleaning surface materials • Aircrafts and aerospace • Health applications Garnet Engebø Rutile (TiO2) and Garnet • Health and environmentally (100%) friendly cutting
Slide 6: R & D opens new avenues for the mineral industry
R & D opens new avenues for the mineral industry Alumina Battery production • Qualification of patented technology for green alumina • Multi discipline research project production with integrated CO2 with focus on critical steps of big consumption scale battery manufacturing. Partners: Partners: Fun
Slide 7: Q3 2021 Highlights
Q3 2021 Highlights ➢ Engebø mineral rights confirmed in court ruling ➢ Lump sum agreements signed with 3 of 4 EPC partners for the Engebø construction ➢ Engebø engineering is progressing in preparation for construction start-up ➢ Long term price for Rutile adjusted upwards ➢ Fair value of investment
Slide 8: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 8
Slide 9: NM's mining rights at Engebø confirmed in court ruling
NM’s mining rights at Engebø confirmed in court ruling Ruling by Oslo District Court: • NM’s mining rights are valid and cover the entire Engebø eclogite deposit • NM will be the sole mining company granted rights to mineral extractions from Engebø • AMR has to pay legal expenses of NOK 3,5 million
Slide 10: Lump-sum agreements signed with 3 of 4 EPC partners
Lump-sum agreements signed with 3 of 4 EPC partners EPC 1 Site wide earthworks and tunneling EPC 2 Civil work and buildings EPC 3 Structural, mechanical, plating & piping, underground comminution • EPCs are progressing on selected detailed engineering work, originally part of the UDFS construction w
Slide 11: EPC 3 advancing engineering of comminution unit
EPC 3 advancing engineering of comminution unit Source: Nordic Bulk AS 11
Slide 12: ESG embedded in plans for construction and operation
ESG embedded in plans for construction and operation Use of electrical dryers instead of natural gas Climate responsibility fueled dryers results in ~80% reduction of total CO2 emissions New process chemicals have been approved by Environmental footprint the Environment Agency, confirming reduction
Slide 13: Engebø will report according to TSM from day one
Engebø will report according to TSM from day one Source: Mining Association of Canada 13
Slide 14: Minimizing visual impact - utilizing existing topography
Minimizing visual impact - utilizing existing topography 14
Slide 15: Towards fossil free mining; electrification reduces CO2 emission
Towards fossil free mining; electrification reduces CO2 emission • Use of electrical dryers will make the process plant CO2 equivalents from the operation1 free of CO2 emissions and reduce operating cost Kg CO2e per • Overall CO2 emissions at low levels tonne of TiO2 compared to the international Ti
Slide 16: Strong demand growth firm long-term price for rutile
Strong demand growth firm long-term price for rutile Rutile: • Bulk rutile prices continued to increase in third quarter of 2021 as the already strong demand for high-grade feedstocks was inflated by low inventory levels and shortages of chloride feedstocks in North America and Europe. • TZMI has re
Slide 17: Processes ongoing with selected strategic investors
Processes ongoing with selected strategic investors • Investment banks Clarkson Platou Securities AS and SpareBank 1 Markets AS are engaged to advice on Engebø project financing • Processes ongoing with selected strategic investors for possible sizeable equity and/or debt participation in project fi
Slide 18: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 18
Slide 19: Keliber progresses as lithium prices has rallied in 2021
Keliber progresses as lithium prices has rallied in 2021…. • Total proven and probable ore reserves have increased to 12.30 million tonnes, representing a growth of 32 percent. The ore reserves of the largest lithium deposit Rapasaari have increased by 55 percent. • Keliber are progressing its updat
Slide 20: Boosting valuation of lithium development projects
…boosting valuation of lithium development projects Development of a Keliber peer-group LTM (indexed) • Fair value of Keliber investment increased by NOK 73 500% million to NOK 194 million per Q3 2021 450% • Lithium development equities has seen a positive movement over the past year driven by the m
Slide 21: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 21
Slide 22: Towards greener mineral and metal production
Towards greener mineral and metal production Less waste and integrated CO2 capture Key achievements: • Favorable kinetics have been demonstrated for anorthosite leaching • Alumina and silica with high purity have successfully been produced • Resources from multiple deposits across the world have bee
Slide 23: Nordic Ocean Resources (NORA) – pioneering seabed minerals
Nordic Ocean Resources (NORA) – pioneering seabed minerals • The Norwegian Petroleum Directorate has started the Environmental Impact Assessment(EIA) of the area on the Norwegian continental shelf that is scheduled for licensing. • The assessment is expected to last approximately 1,5 years, followed
Slide 24: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 24
Slide 25: Fair value gain on Keliber investment of 60% in Q3 bolsters balance sheet
Fair value gain on Keliber investment of 60% in Q3 bolsters balance sheet The Group’s balance sheet remains solid: o NOK 47.9 million in cash - Net cash outflow from operations of NOK 15.6 million in the quarter, reflecting ongoing pre- construction work originally part of the UDFS construction work
Slide 26: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Other developments 5. Financial update 6. Q & A 26
Slide 27: Q & A
Q&A ➢ Engebø mineral rights confirmed in court ruling ➢ Lump sum agreements signed with 3 of 4 EPC partners for the Engebø construction ➢ Engebø engineering is progressing in preparations for construction start-up ➢ Long term price for Rutile adjusted upwards ➢ Fair valuation assessment of investmen
Slide 28: Appendix #1 Consolidated income statement
Appendix #1 Consolidated income statement Q3-2021 Q3-2020 Acc.2021 Acc.2020 2020 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Sales 0.0 - - (3.8) (3.9) Payroll and related costs (12.5) (10.2) (14.4) (0.0) (0.1) Depreciation and amortization (0.1) (0.2) (0.2) (12.8) (2.1
Slide 29: Appendix #2 Consolidated statement of financial position
Appendix #2 Consolidated statement of financial position 30.09.2021 31.12.2020 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.7 28.3 Property, plant and equipment 0.2 0.4 Right-of-use assets 0.3 0.4 Financial investments 193.9 100.1 Total non-current assets 223.