Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2017 Earnings Presentation
36 slides from Nordic Mining Asa's earnings presentation, Feb 16, 2018
Slide 1: Q4 2017 Presentation
OAX: NOM Q4 2017 Presentation Oslo, 16 February 2018 Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com 1
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
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 4: 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%) 4
Slide 5: Financial status
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 6: Consolidated Income Statements
Consolidated Income Statements Q4-2017 Q4-2016 Acc. 2017 2016 Unaudited Unaudited Amounts in NOK million Unaudited Audited - - Sales - - (2.7) (2.1) Payroll and related costs (10.9) (7.8) - - Share-based payment - (1.4) - - Depreciation and amortisation (0.2) - - - Impairment of exploration assets -
Slide 7: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position 31.12.2017 31.12.2016 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 21.6 21.2 Property, plant and equipment 0.2 0.3 Investment in an associate 29.3 15.0 Total non-current assets 51.1 36.6 Cash 21.5 66.1 Trade and other
Slide 8: Equity issues completed in December 2017/January 2018
Equity issues completed in December 2017/January 2018 • A private placement and a subsequent offering with gross proceeds of NOK 59.6 million have been completed • In total, approximately 18.6 million shares have been issued at a subscription price of NOK 3.20 per share • As per 15 February 2018, No
Slide 9: 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) 9 812 957 8,6 % Number of issued shares 113 450 468 2 NORDEA BANK FINLAND (NOMINEE) 5 003 245 4,4 % Owned
Slide 10: Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 11: World class deposit of high grade rutile and garnet
World class deposit of high grade rutile and garnet Efficient mining concept with minimal footprint 11
Slide 12: Attractive PFS project economics
Attractive PFS project economics 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 O
Slide 13: The way forward
The way forward 2017 2018 2019 2020 2021 2H 1H 2H 1H 2H 1H 2H 1H 2H Definitive Feasibility Study Off-take agreements Construction financing FEED* Construction Production ramp-up * FEED: Front End Engineering & Design 13
Slide 14: Definitive Feasibility Study moving forward
Definitive Feasibility Study moving forward ✓ Geotech and resource drilling campaign ongoing ✓ Modularisation vs stick build trade-off considerations ✓ Processing testwork, ore variability and flowsheet optimisations ✓ Infrastructure preparations, e.g. road and civil works ✓ Regulatory work for proc
Slide 15: Drilling program January and February 2018
Drilling program January and February 2018 • Limited drilling program to verify geotechnical conditions related to pit design and further mapping of resource • Drilling program from mid January to mid February 2018 • Drilling is carried out by Arctic Drilling AS Core drilling Logging of cores Splitt
Slide 16: Drilling rig at Engebø
Drilling rig at Engebø 16
Slide 17: Down-hole tool for teleview inspections
Down-hole tool for teleview inspections 17
Slide 18: Core logging at NM test center in Naustdal
Core logging at NM test center in Naustdal 18
Slide 19: Preliminary lay-out, process plant
Preliminary lay-out, process plant 19
Slide 20: Engebø deep sea key
Engebø deep sea key
Slide 21: Module-build construction considerations
Module-build construction considerations Length – 19 m Width – 13 m Height – 34 m Weight – 414 tonnes 21
Slide 22: Module-build construction considerations
Module-build construction considerations 22
Slide 23: Rutile and Garnet - unique mineral properties, increasing demand
Rutile and Garnet - unique mineral properties, increasing demand Garnet Rutile Current world production: ~ 1.4 million tonnes Current world production: ~ 0.8 million tonnes WATERJET CUTTING SAND BLASTING ABRASIVES PIGMENT WELDING RODS TITANIUM Tests have demonstrated that Engebø can produce coarse a
Slide 24: Titanium feedstock market development
Titanium feedstock market development ✓ China still the most important market ✓ China has introduced stronger environmental control on industries, including pigment plants ✓ World pigment inventories are declining ✓ Iluka has increased rutile prices by USD 70 per tonne in 2018; this indicates a pric
Slide 25: Keliber, lithium
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 26: KELIBER - Lithium Mining
KELIBER - Lithium Mining for Rapidly Growing Markets High-Purity Lithium Carbonate for Sustainable Energy mh
Slide 27: Lithium-ion markets
Lithium-ion markets Forecast li-ion battery demand by sector, 2010-25mn cells Monthly lithium-ion battery exports, 2016-17. mn cells 600 Others Singapore HongKong =m South Koreas miJapan = China 500 400 300 200 100 o 2010 2012 2015 2020 2025 Oct Nov Dec 2017 Feb Mar Apr May Jun July Aug Sep Oct —Avi
Slide 28: European car majors are entering the EV market
European car majors are entering the EV market
Slide 29: Active resource exploration during recent years
Active resource exploration during recent years
Slide 30: Q&A
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 31: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 3 1
Slide 32: Appendix
Appendix 32
Slide 33: Engebø, high grade rutile and garnet mineralisation
Engebø, high grade rutile and garnet mineralisation Mineral resource and reserves classification* 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 r
Slide 34: Key project assumptions, Engebø PFS
Key project assumptions, Engebø PFS Mining 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 Garne
Slide 35: Engebø PFS; Large upside potential
Engebø PFS; 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 NP
Slide 36: Engebø PFS; Competitive rutile revenue-to-cash cost position
Engebø PFS; Competitive 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 36