Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (January 2018)
38 slides from Northern Minerals's investor presentation, Jan 10, 2018
Slide 1: Delivering critical technology metals to the EV evolution
Delivering critical technology metals to the EV evolution For personal use only SPP to accelerate growth plans January 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an For personal use only offer or invitatio
Slide 3: Four stage approach to full value capture
Four stage approach to full value capture For personal use only Stage 1 Stage 2 Stage 3 Stage 4 TEST PILOT PLANT REFINE PROJECT BUILD FULL SCALE DOWNSTREAM • 10% of full scale capacity • Reduce mining cost - • 585,000tpa operation • Downstream separation • Production – July 2018 modify mining method
Slide 4: Electric Vehicles – Not just a lithium story!
Electric Vehicles – Not just a lithium story! Li Lithium For personal use only Al Aluminium Co Cobalt Mg Magnesium Copper C Graphite Cu Ni Nickel Dysprosium Dy Fe Mn Mo V Neodymium Nd
Slide 5: Dysprosium
Dysprosium For personal use only 66 99% Dy Production from China Lighter & More Efficient 162.5 20m 100g 2,000tpa Forecast EV Dysprosium per EV demand for Government sales by 2025 electric vehicle Dy by 2025 mandated change
Slide 6: Rare earth distribution and oxide composition vs Lynas
Northern Minerals Lynas Browns Range Mt Weld For personal use only Rare earth distribution 1 Rare earth oxide composition 2 1 Based on Wolverine Mineral Resource 2 Source: Lynas Corporation website
Slide 7: Browns Range - Filling the Dysprosium supply gap
Browns Range - Filling the Dysprosium supply gap For personal use only Browns Range More than one Browns Range required to fill the supply gap Dysprosium Production forecast Browns Range Dysprosium forecast* Forecast Dysprosium demand Source: Adamus Intelligence, Northern Minerals
Slide 8: HRE – sustainable pricing
HRE – sustainable pricing Dysprosium Oxide 99%min China US$/kg 500 For personal use only 400 Dy US$/kg Increased demand from new EV sales 300 200 100 coupled with crackdown on illegal 0 mining in China will positively impact prices Terbium Oxide 99.9%min China US$/kg 800 700 600 Tb US$/kg 500 400 30
Slide 9: Share Purchase Plan to drive second wave
Share Purchase Plan to drive second wave For personal use only SPP Details Use of Funds Four project enhancement initiatives: • Offer to existing shareholders; • Right to subscribe for $5,000, $10,000 or 1) Exploration – increased exploration budget $15,000 worth of NTU shares; aimed at increasing m
Slide 10: For personal use only
In 2017, Northern Minerals completed stacking of raw For personal use only product ready for processing In 2018, we will commence a new supply of heavy rare earths to the global market
Slide 11: Enhancement projects underway
For personal use only Enhancement projects underway Mining Processing Plant Schedule Financing Sales Agreement Community Feasibility • 205,000t ore mined at Wolverine and Gambit West; • Steeper walls employed, resulting in more ore and less waste; • SPP funding to investigate this and other project
Slide 12: Pilot Plant Flowsheet
Pilot Plant Flowsheet For personal use only Mining Processing Plant Schedule Financing Sales Agreement Community Components and equipment unloaded in Darwin Feasibility Project Component: Contractor: Modular processing plant Sinosteel MECC Annual Production: Capital Cost: 60,000tpa (based on 10 A$39
Slide 13: Pilot Plant Equipment
Pilot Plant Equipment For personal use only Mining Processing Plant Schedule Financing Sales Agreement Community Feasibility Fabrication works 98% completed in China & delivered to site
Slide 14: Project development schedule
Project development schedule For personal use only Mining Apr ‘17 Jun ‘17 Sep ‘17 Dec ‘17 Mar ‘18 Jun ‘18 Processing Plant Final Investment Decision Schedule Mining completed, ore stockpiled Financing Fabrication 98% Plant modules complete in China transported to Australia Sales Agreement Commenceme
Slide 15: Pilot Plant financing
Pilot Plant financing For personal use only Mining $10 million $31.5 million Sales Agreement R&D Financing Facility - Prepayment** Available Processing Plant $11 million $3 million Sinosteel Deferred Lind Financing Payment* Schedule Facility*** - available Financing $11 million Lind Financing Facili
Slide 16: Secure sales agreement
Secure sales agreement For personal use only 100% of Browns Range Pilot Plant Mining production to be purchased by Lianyugang Zeyu New Materials Sales Processing Plant Co Ltd (JFMAG), a 51% owned Direct shipping subsidiary of Guangdong Rare Earths route from Wyndham or Group. Darwin to Schedule Lian
Slide 17: Training-to-Work Facility
Training-to-Work Facility For personal use only Mining Processing Plant Schedule Financing Sales Agreement Community Feasibility • Northern Minerals has partnered with The Wunan Foundation for the establishment of an $8.1 million indigenous training-to-work facility at Browns Range. • The Federal Go
Slide 18: Full scale feasibility
Full scale feasibility For personal use only Mining • The three-year pilot project has been designed to assess the technical Processing Plant and economic feasibility of the proposed full-scale development. • Key aspects of assessment during the Pilot Plant phase: Schedule Mining and ore variability
Slide 19: Blue Sky potential
Blue Sky potential For personal use only The Browns Range dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored JORC Resource supporting an 11 year full scale operation Exploration target to add additional 9 years of JORC Res
Slide 20: Beyond Browns Range
Beyond Browns Range For personal use only Rock chip samples up to 42% TREO with approximately 95% Heavy REO Rock chip samples from the Boulder Ridge Preliminary metallurgical tests indicate excellent project confirm high-grade Heavy Rare Earths recovery rates (>90%) (HRE) Potential for concentrate g
Slide 21: Key Personnel and Partners
Key Personnel and Partners For personal use only Key Site Personnel: Eben Van Rooyen – Resident Manager Louis de Klerk – R&D Manager Robin Jones Chief Operating Officer George Bauk Bin Cai Managing Executive Officer Director/CEO Mark Tory Chief Financial Officer Robin Wilson Exploration Manager
Slide 22: Key Highlights
For personal use only Key Highlights
Slide 23: 2018 – Delivering on potential
2018 – Delivering on potential For personal use only
Slide 24: Corporate Overview
For personal use only Corporate Overview
Slide 25: Share Purchase Plan to drive second wave
Share Purchase Plan to drive second wave For personal use only SPP Details • Offer to existing shareholders; • Right to subscribe for $5,000, $10,000 or $15,000 worth of NTU shares; • Issue Price $0.078; • Raising up to $5 million, however management reserves rights to vary amount raised; • Offer ma
Slide 26: Delivering critical technology metals to the EV evolution
For personal use only Delivering critical technology metals to the EV evolution
Slide 27: Appendices
For personal use only Appendices
Slide 28: Heavy rare earths crucial to growth of electric vehicle sector
Heavy rare earths crucial to growth of electric vehicle sector For personal use only NdDyFeB permanent magnets used by major electric vehicle (EV) manufacturers require Dysprosium and Terbium as key additives for high performance Changing policy settings by European governments and future developmen
Slide 29: Browns Range – An Eight Year Journey
For personal use only Browns Range – An Eight Year Journey
Slide 30: Global EV growth drivers
Global EV growth drivers For personal use only Battery technology Regulatory support for eliminating range technology lower emission vehicles Consumer demand EVs approaching price reaches inflection point parity with combustion vehicles
Slide 31: EV acceptance reaches inflection point in 2017
EV acceptance reaches inflection point in 2017 For personal use only
Slide 32: Chinese carmakers to dominate EV production
Chinese carmakers to dominate EV production For personal use only
Slide 33: Mineral Resources
For personal use only Mineral Resources 1 – Rounding may cause some computational discrepancies (TREO (metal) tonnes estimated from Mt x TREO%)
Slide 34: Ore Reserves
For personal use only Ore Reserves
Slide 35: Pilot plant: targeted production
Pilot plant: targeted production For personal use only Mixed RE carbonate (REC) produced Product specification available for REC REC samples validated by several downstream separators REC suitable for solvent extraction separation Low thorium and uranium levels First shipment planned for September q
Slide 36: NTU Board
NTU Board For personal use only Colin McCavana - Non-executive Chairman (appointed 2006) Mr McCavana has more than 35 years of management experience worldwide in the earthworks, construction and mining industries. George Bauk - Managing Director / CEO (appointed 2010) George is an experienced execut
Slide 37: Executive Team
Executive Team For personal use only 5 years 5 years 11 years 1 year Mark Tory Robin Jones Robin Wilson Eben Van Rooyen Chief Financial Officer Chief Operating Officer Exploration Manager Resident Manager Mark is a Chartered Robin has more than 20 Robin has held senior Mr Van Rooyen is a Project Acc
Slide 38: The Northern Minerals SPIRIT
For personal use only The Northern Minerals SPIRIT
Northern Minerals — Investor Presentation (January 2018) on 6ix