Lodestar Minerals Limited · ASX:LSR
Lodestar Minerals — Mincor Resources NL — Rottnest Conference 2021
22 slides from Lodestar Minerals's conference presentation, March 2021
Slide 1: High grade nickel mining in Kambalda
High grade nickel mining in Kambalda The world’s newest nickel sulphide mine timed perfectly for a new nickel dynamic Kambalda Perth Rottnest Conference David Southam, Managing Director March 2021
Slide 2: Important Notice Disclaimer
Important Notice Disclaimer This presentation (Presentation) has been prepared by Mincor Resources NL (MCR) and is authorised by the Board of Directors of MCR. By retaining this Presentation, you (the Recipient) acknowledge and represent to MCR that you have read, understood and accept the terms of
Slide 3: Today: Permitted, funded, approved and underway
Today: Permitted, funded, approved and underway • Ore Reserves: ~71,100t of contained nickel • Operational management team in place • Mining contractor mobilised • Fully-funded to production with low gearing and a substantial buffer* • We’ve moved from shovel ready to well advanced development • Mar
Slide 4: What did Mincor promise at the 2020 Rottnest Conference
What did Mincor promise at the 2020 Rottnest Conference 1. Deliver an economically robust DFS 2. Deliver Mineral Resource conversion at Cassini 3. Drill at Cassini North Cassini box-cut location cleared – 11 February 2020 ROM pad clearing 1 March 2020 4. Finalise project funding solution 5. Drilling
Slide 5: Mincor delivered all of its promises, and more
Mincor delivered all of it’s promises, and more…… 1 6 Ongoing March 2020 Republican Hill interest and follow-up DSF announced, with 12-month RC program commences April 2021 payback and capex of $68m 2 March 2020 Resource upgrades at Cassini and maiden Ore Reserve announced 3 September 2020 Cassini N
Slide 6: Some photos of progress
Some photos of progress MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 6
Slide 7: It's all about LOCATION
It’s all about LOCATION….. • Strategic Kambalda Dome and Widgiemooltha Dome land-holdings • New discoveries being made – Cassini Main and Cassini North • Infrastructure and services everywhere you look: • BHP Kambalda Nickel Concentrator and smelter • Roads, rail, townships, water pipeline, grid pow
Slide 8: Strategic importance of Mincor
Strategic importance of Mincor Nickel Sulphide Ore Nickel Sulphide Ore BHP BHP BHP Kambalda Mt Keith Leinster Nickel Nickel Nickel Conc Conc Conc Concentrate Concentrate Dryer Tier-1 offtake partner, committed to nickel IGO WSA BHP Matte BHP Export Nova Forrestania Kalgoorlie Kwinana Nickel Smelter
Slide 9: Cassini: The new flagship mine, greenfields discovery by Mincor
Cassini: The new flagship mine, greenfields discovery by Mincor • Mineral Resources of 1.5Mt @ 4.0% Ni for 58.7kt of nickel • Ore Reserves of 1.2Mt @ 3.3% Ni for 40.1kt of nickel • Underground mining via box-cut and decline • Contributes 56% of total forecast nickel-in-concentrate production over in
Slide 10: Cassini: An emerging nickel camp
Cassini: An emerging nickel camp Cassini Main: ● Mineral Resources: 1.5Mt @ 4.0% Ni for 58.7kt of contained nickel (four consecutive upgrades) ● Ore Reserves: 1.2Mt @ 3.3% Ni for 40.1kt of contained nickel (maiden Resource and one upgrade to date) ● Total discovery cost around US$0.05/lb of nickel ●
Slide 11: Cassini Outlook: Where can Cassini Main go?
Cassini Outlook: Where can Cassini Main go? History of long-life assets in the Kambalda district which exceeded initial mine life projections Kambalda District Nickel Deposits – Starting Inventory vs. Historical Production (Nickel Grade vs Contained Nickel) 5.5 Chart Legend Lunnon 5.0 Mincor’s Cassi
Slide 12: Northern Operations: The "golden mile of nickel"
Northern Operations: The “golden mile of nickel” • Established mining centre – one of the most highly endowed, high-grade nickel sulphide mining areas in Australia • Historical production of 23.0Mt @ 3.6% Ni for 818kt of nickel (from Otter Juan and Long mines) • Initial mine plan focused on the Durk
Slide 13: Funding solution in place
Funding solution in place Fully-funded for Kambalda Nickel Restart, with a prudent contingency buffer and exploration funding Facility Amount $55 million (50% BNP Paribas & 50% Société Générale) ▪ Credit & ESG Approved Terms Sheet for Tenor 3.75 years $55M Project Debt Facility from BNP Last Repayme
Slide 14: Focus on safety, sustainability and community – embrace the Mincor Way
Focus on safety, sustainability and community – embrace the Mincor Way • LOM capital investment of ~$179m • ~200 long-term jobs during operations • Positively skewed towards engaging local employees and contractors • Kalgoorlie based Pit N Portal mobilised as mining contractor • Strong commitment to
Slide 15: Nickel is the key to making EV's more affordable
Nickel is the key to making EV’s more affordable • EV batteries have a current average price of US$156/kWh… but this needs to drop to ~US$100/kWh to match Internal Combustion Engines • One focus for manufacturers is replacing high-cost cobalt with nickel – nickel is cheaper and holds more energy • H
Slide 16: Nickel demand is set to grow exponentially as the EV market takes off
Nickel demand is therefore set to grow exponentially as the EV • Passenger EV sales jumped from 450,000 in market 2015 to 2.1 takes million inoff 2019 • Passenger EV sales jumped from 450,000 in 2015 to 2.1 million in 2019 • Passenger EV sales are forecast to soar to 26 million by 2030 and 54 millio
Slide 17: Nickel demand will grow as the EV market takes off
Nickel demand will grow as the EV market takes off “Nickel is a standout winner from a decarbonising world. It secures this position because no matter what metals (or combination of metals) are tested in lithium-ion battery cathodes, nickel produces the highest energy density of any.” Eduard Haegel,
Slide 18: The final word – an investable, modern nickel company
The final word – an investable, modern nickel company ✓ Premier location ✓ Rare high grades ✓ High margins ✓ Strong economics ✓ Fully funded ✓ Simple strategy ✓ Tier-1 partner ✓ Right timing MINCOR RESOURCES NL – www.mincor.com.au I HIGH GRADE NICKEL DEVELOPMENT & PRODUCTION 18
Slide 19: The End
The End
Slide 20: Appendices
Appendices
Slide 21: Competent Person Statements
Competent Person Statements Nickel Mineral Resources as at 25 June 2020 MEASURED INDICATED INFERRED TOTAL RESOURCE The information in this presentation that Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni tonnes relates to nickel Exploration Results and Cassini - - 1,282,000 4.0 194,000 4
Slide 22: Competent Person Statements (continued)
Competent Person Statements (continued..) Nickel Ore Reserves as at 30 June 2020 PROVED PROBABLE TOTAL The information in this presentation that relates to nickel Ore RESERVE Reserves at Cassini and Long is based on information compiled by Tonnes Ni (%) Tonnes Ni (%) Tonnes Ni (%) Ni tonnes Dean Wil