Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Investor Presentation (June 2018)
27 slides from Nordic Mining Asa's investor presentation, June 2018
Slide 1: Minerals for a sustainable future
Minerals for a sustainable future TITANIUM & GARNET (100%) LITHIUM (22%) Company presentation, June 2018 OAX: NOM Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Org. no 989 796 739 | post@nordicmining.com
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: Developing high-value assets in the Nordic Region
Developing high-value assets in the Nordic Region Platinum, Palladium Engebø Rutile and Garnet (100%) High Purity Quartz Keliber Seabed minerals Lithium (22%) 3
Slide 4: Board of Directors and Management
Board of Directors and Management Management team Board of Directors Ivar S. Fossum, CEO Tarmo Tuominen, Chairman Fossum has 20 years experience from management positions in Deputy CEO in the Finnish mineral group Nordkalk. Geologist with Norsk Hydro (oil/gas and fertilizers) and FMC Technologies. H
Slide 5: Shareholder structure and share price development
Shareholder structure and share price development Largest shareholders* Share overview and share price development* Name of shareholder No. of shares % Share overview 1 NORDNET BANK AB (NOMINEE) 10 616 633 9,4 % Number of issued shares 113 450 468 2 NORDEA BANK FINLAND (NOMINEE) 5 070 366 4,5 % Owne
Slide 6: Large rutile and garnet deposit located at tidal waters
Large rutile and garnet deposit located at tidal waters ✓ Outcropping eclogite orebody with unknown extension to depth ✓ Geotechnically stable rock allows for effective mining ✓ Low impurities, negligible content of heavy metals and radioactive elements ✓ Easy transition from open pit to underground
Slide 7: High grade rutile and garnet mineralisation
High grade rutile and garnet mineralisation Mineral resource and reserve classifications* Among the highest rutile grades ✓ Increased cut-off implies stronger financial ✓ Rutile grade for current producers and performance in early mining years planned projects ✓ Large potential in inferred resources
Slide 8: Rutile and garnet - unique mineral properties, increasing demand
Rutile and garnet - unique mineral properties, increasing demand Rutile (TiO2) Garnet Current world production: ~ 0.8 million tonnes Current world production: ~ 1.4 million tonnes PIGMENT WELDING RODS TITANIUM WATERJET CUTTING SAND BLASTING ABRASIVES Tests have demonstrated that Engebø can produce 9
Slide 9: Rutile demand expected to grow with increasing prices
Rutile demand expected to grow with increasing prices Global rutile demand is forecasted to outpace supply… …driving rutile prices up in the forecast period Thousand TiO2 units USD per tonne South Africa Sierra Leone Kenya CIS Rutile price High est. Base est. Low est. 1 000 Australia Other 3 000 900
Slide 10: Export sales to Europe and overseas markets
Export sales to Europe and overseas markets ✓ The largest pigment manufacturers in Europe have chloride technology that benefits from high grade feedstock ✓ Several can consume Engebø’s annual volume ✓ Plant-to-plant shipment ✓ Logistical and freight cost advantages 10
Slide 11: First European producer of garnet
First European producer of garnet Garnet market and price assumptions Current world production • Emerging mineral with strong growth in the waterjet cutting markets Estimated garnet price, Engebø PFS • Currently no European production Product / Case Low price High price Australi China 80 mesh waterj
Slide 12: Cooperation with the US Barton Group for garnet
Cooperation with the US Barton Group for garnet The Barton Group Heads of Agreement ✓ Barton, family owned and founded in 1878. Nordic Mining entered into a Heads of Agreement with Barton Group, on the following main principles: ✓ Leading US garnet producer and distributor ✓ Offtake agreement for No
Slide 13: PFS process testwork; industrial scale equipment
PFS process testwork; industrial scale equipment ✓ Comprehensive testwork has documented commercial products from rutile and garnet according to market specifications ✓ Testwork has demonstrated rutile recovery of approximately 60% 13
Slide 14: Key project assumptions, PFS
Key project assumptions, PFS Mine production Assumptions Value 6,0 Ore production Waste production 5,0 Garnet price USD 250/tonne 4,0 Million tonnes 3,0 Rutile price USD 1 070/tonne 2,0 1,0 1.5 mill. tonnes/yr Garnet sales (from ~2027) 261 000 tpa 0,0 Rutile sales (average) 32 500 tpa Garnet sales a
Slide 15: Attractive project economics, PFS
Attractive project economics, PFS Metric Value Pre-tax NPV @ 8% USD 332 mill. Pre-tax IRR 23.8% Life of mine 29 years 200 Pay-back period < 5 years Post-tax NPV @ 6.8% USD 305 mill. 150 Post-tax IRR 20.8% 100 50 USD million 0 -50 -100 Garnet Revenue Rutile Revenue Capex Maintenance capex (SIB) -150
Slide 16: PFS with large upside potential
PFS with large upside potential +40% 500 A. Increased production of garnet 450 51 to 300 000 tonnes/year 400 69 13 Pre-tax NPV @ 8% (USD million) 350 B. Extension of mine life to 40 300 years by including Inferred 250 Resources 465 200 150 332 C. Additional garnet sales in early years 100 50 0 NPV b
Slide 17: Competitive PFS rutile revenue-to-cash cost position
Competitive PFS rutile revenue-to-cash cost position ✓ The revenue-to-cash cost ratio is based on the first ten years of operations ✓ Engebø benefits from producing two high value products with low mining and processing costs Source: TZMI 17
Slide 18: Towards construction and production
Towards construction and production 2017 2018 2019 2020 2021 2H 1H 2H 1H 2H 1H 2H 1H 2H Definitive Feasibility Study Off-take agreements Construction financing FEED* Construction period Production ramp-up * FEED: Front End Engineering & Design 18
Slide 19: Ongoing Definitive Feasibility Study targets project bankability
Ongoing Definitive Feasibility Study targets project bankability ✓ Mining trade-off studies, mine design and schedule ✓ Processing testwork, ore variability and flowsheet optimisation ✓ Modularisation and logistical studies ✓ Procurement strategy and procurement operating plan ✓ Multi-disciplinary d
Slide 20: Keliber – Lithium from Europe for future energy solutions
Keliber – Lithium from Europe for future energy solutions
Slide 21: Lithium-ion megafactories
Lithium-ion megafactories New lithium battery projects have been announced in Europe by SDI Samsung (Hungary), Daimler (Germany), Nissan (UK), Northvolt (Sweden), LG (Poland) and Tesla (location TBD) 8 Source: Benchmark Mineral Intelligence, 2017
Slide 22: Global mine production of lithium
Global mine production of lithium Figure 1: World: Mine production of lithium by type, 2000-2016 (t LCE and % brine) 140 000 100% 120 000 90% In 2016 mine production of 80% 100 000 70% lithium totalled 216 740 LCE tons 60% 80 000 t LCE 50% 60 000 40 000 40% 30% • 20 % increase in production 20 000 2
Slide 23: Project in a nutshell
Project in a nutshell Lithium carbonate production with high value creation potential • Efficient and environmentally sound production 1 Innovative clean tech process • Potential for recovery of valuable by-products Production of • 9 000 tonnes of lithium carbonate per annum for +10 2 high purity li
Slide 24: Way to production
Way to production Definitive feasibility study and preparation for production Tentative timeline for the next stages 2017 2018 2019 2020 Basic Engineering – Definite Feasibility Study Permitting (environmental, mining and other) Detailed Engineering Construction Commissioning and testing Production
Slide 25: Summary
Summary ￭ Total of M&I of 98 mill. tonnes (3% TiO2 cut-off) The Engebø project – One of the world’s 1 ￭ High metal grades: 3.9% rutile grade and share of garnet is 44% best rutile and garnet deposits ￭ Favorable logistical location in a stable political environment in Norway ￭ Rutile – depleting exi
Slide 26: Financing
Financing ✓ Sufficiently financed until Q4 2018, based on current activity plans ✓ Consideration of various opportunities for further financing is ongoing - New equity - Divestments - Strategic partnerships - Debt instruments Tentative outline of construction financing: Sources of capital • Equity (
Slide 27: THANK YOU!
THANK YOU! Safety – Environment - Innovation www.nordicmining.com 27