Nickel Asia Corp. · PSE:NIKL
Nickel Asia — Investor Presentation (2021)
21 slides from Nickel Asia's investor presentation, 2021
Slide 1: Investor Presentation
Slide 2: NAC at a Glance
NICKEL ASIA CORPORATION AT A Largest nickel mining company in the Philippines and one of the largest suppliers of lateritic G LA N Cc E nickel ore globally. OPERATING As of 2020, total resources of 320M WMT 4 COINS and reserves of 240M WMT. Any of which may become operational in EXPLORATION _ 3 MINE
Slide 3: Financial Highlights
NICKEL ASIA CORPORATION FINANCIAL HIGHLIGHTS Revenue (Php MM) : EBITDA’ (Php MM) Net Income? (Php MM) mSale of ore Services and others 21,772 9,345 4,069 2771 3,008 2.685 2,035 1,966 201820162017, 2018 = 2019 2020 2015 2016 = 2017,— 2018 = 2019-2020 2015 2016 = 2017_— 2018 = 2019-2020 2 16 17 18 201
Slide 4: Overview of Our Mines
WN NicKEL ASIA CORPORATION OVERVIEW OF OUR MINES a aw RIO TUBA NICKEL 60% EQUITY OWNERSHIP. 1975 COMMENCED OPERATION 1425 YEARS REMAINING MPSA LIFE oo = = CAGDIANAO MINING 100% EQUITY OWNERSHIP 1999 COMMENCED OPERATION 1425 Years REMAINING MPSA LIFE 2 TAGANITO MINING 65% EQUITY OWNERSHIP 1987 COMMEN
Slide 5: Rio Tuba and Bulanjao
18 125 87 12 88 Bulanjao 15 47 8 24 8 2 Rio Tuba 4 3 3 * Includes Bulanjao
Slide 6: Ore Products
NICKEL ASIA CORPORATION NICKEL ORE PRODUCTS ORE TYPE DESCRIPTION SAPROLITE | Saprolite HIGH. Limo-HiFe LIMONITE LOW GRADE Limo-HPAL CONTENT Ni: 1.4-1.8% Fe: below 20% Ni: 0.8-0.9% Fe: 48-50% Ni: 1.0-1.2% Fe: 230% CUSTOMER COUNTRY / TECHNOLOGY FINAL PRODUCT Japan @ rani Ferronickel China NPI (10% Ni)
Slide 7: Annual Shipments by Ore Type (Thousand WMT)
(Thousand WMT) 25,000 20,000 19,254 19,349 18,836 18,203 17,703 CAGR: 20% 15,000 9,029 9,974 9,044 11,912 8,716 10,572 10,000 7,063 5,000 10,320 8,987 8,861 9,159 2,685 7,342 880 1,400 3,508 108 772 1,285 - 1977-2004 FY 2005 2006-2015 2016 2017 2018 2019 2020 Annual Average FY Saprolite Limonite
Slide 8: Shipments and Revenues by Ore Type
WN NICKEL ASIA CORPORATION 8 SHIPMENTS AND REVENUES BY ORE TYPE Shipments by Ore Type (mWMT) Prices by Ore Type (US$/WMT) Revenue by Ore Type (bPhp) 9.2 89 35.30 15.9 8.33 8.19 Saprolite Limo-HiFE Limo-HPAL Saprolite Limo-HiFe Limo-HPAL. Saprolite Limo-HiFe Limo-HPAL, ™ 2020 ™2019 =| 2020 = 2019 ™ 2
Slide 9: Investment in HPAL Projects
NICKEL ASIA CORPORATION INVESTMENT IN HPAL PROJECTS = Most successful implementation of HPAL technology in the world = End products are refined in Japan by Sumitomo Metal Mining and ultimately utilized in the production of EV batteries = Provides captive market for our low- grade limonite ore, that
Slide 10: NAC's Development Pipeline
WN NICKEL ASIA CORPORATION NAC'S DEVELOPMENT PIPELINE Resources as of 12/31/2020 Percent of MPSA Area Drilled Target Annual Production Target Annual Product Mix Pending Issues Target Start Date Bulanjao 70m WMT @1.61% Ni 17% of 3,553 hectares 4M+ WMT 35% Saprolite 65% Limonite Regulatory 2022 Dinapi
Slide 11: Nickel Use in EV
NICKEL ASIA CORPORATION n NICKEL USE IN EV * NCA (Nickel Cobalt Aluminum, * At US$18,000 LME Ni, the cost approx. 80% Ni) and NMC of nickel in a high range EV = (Nickel Manganese Cobalt, US$18,000 x .09 = US$1,620. At approx. 33% Ni) batteries are US$25,000 LME Ni price, the preferred due to the sma
Slide 12: Growth in Nickel Demand
NICKEL ASIA CORPORATION 12 GROWTH IN ee ee ee eng eee oles NICKEL DEMAND grow by 13.5% per year. 2020 2025 2030 2040 mFor Batteries For Stainless Steel Source: Roskill
Slide 13: Nickel Balance Forecast
WN NICKEL ASIA CORPORATION NICKEL BALANCE FORECAST Supply =" Massive deficits projected from 2025 onwards unless new greenfield projects are developed in the next 2-3 years. = To incentivize greenfield projects (such as HPAL) LME Ni price of US$18,000 to 20,000/t is Demand required. = NPI / FeNi may
Slide 14: NAC's Foray into Renewable Energy
NICKEL ASIA CORPORATION NAC'S FORAY INTO RENEWABLE ENERGY ~~ EPI 87% OWNED BY NAC SOLAR POWER ASSETS GEOTHERM AL POWER ASSETS 90% OWNED BY EPI Jobin SQM, Inc. (JSI) * Subic Bay Freeport Zone * 50-year (+25) lease for 800 hectares 4 * 25-year Service Contracts * 230kv line can accommodate 200MW+ * 68
Slide 15: EPI's Development Pipeline
NICKEL ASIA CORPORATION 15 EPI'S DEVELOPMENT PIPELINE Solar (JSI) Geothermal (BGI) Target Capacity by 2025, MWs 200 (68 existing) 3.5-50 Expected Energy Generation, MWh Per Year 309,000 28,000 - 403,000 70% Contracted 30% WESM Must-Dispatch 70% Contracted 30% WESM Priority Dispatch Target Offtake Ar
Slide 16: Luzon and Visayas Supply, Demand and WESM Prices
16000 6000 14000 5000 12000 4000 10000 Php/MWh MW 8000 3000 6000 2000 4000 1000 2000 0 0 2014 2015 2016 2017 2018 2019 2020 Demand Plus Reserve 7679 7804 9262 9803 10497 11121 10521 Effective Supply (with Outages) 8934 9189 10880 11652 12562 12856 13336 Supply Margin 1255 1385 1618 1849 2072 179
Slide 17: Philippines Power Demand Outlook
60000 50000 40000 MW 30000 20000 10000 0 2005 2010 2015 2020 2025 2030 2035 2040 Source: NGCP TDP 2021-2040 Consultation Draft (Philippines Data)
Slide 18: Philippines' Shift to Renewable Energy
WN NICKEL ASIA CORPORATION PHILIPPINES’ SHIFT TO RENEWABLE ENERGY GW 100 Target Total Installed Capacity 2019 m@ Conventional 2030 m Renewables 2040 18 ™ Renewable Portfolio Standards (RPS) is a major DOE policy that requires customers to source a portion of their electricity from renewable energy s
Slide 19: Our ESG Focus
NICKEL ASIA CORPORATION OUR ESG FOCUS CARBON NEGATIVE OPERATIONS NAC joined the UN Global Compact: the first Philippine mining company to do so. The company has consistently been carbon negative operations since start of measurement in 2018. BY THE NUMBERS 19 $356M Total taxes and royalties paid for
Slide 20: Looking Forward
NICKEL ASIA CORPORATION 20 LOOKING FORWARD =" LME Ni outlook is positive due to the EV story, especially after 2025. ™ NAC mining volumes are sustainable, with 320M WMT of resources as of end 2020. = We continue to exert our utmost efforts to develop three significant nickel mining projects, which w
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