Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q2 2017 Earnings Presentation
31 slides from Nordic Mining Asa's earnings presentation, Aug 18, 2017
Slide 1: Minerals for a sustainable future
Ti Pt Lighter aircrafts Clean air Pd Minerals for a sustainable future OAX: NOM Electric cars Li Renewable energy Si 1
Slide 2: Q2 2017 Presentation
OAX: NOM Q2 2017 Presentation Oslo, 18 August 2017 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 2
Slide 3: 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 4: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber Oy, lithium 4. Questions
Slide 5: Developing high-value assets in the Nordic Region
Developing high-value assets in the Nordic Region Platinum, Palladium Titanium - natural rutile (100%) High Purity Quartz Lithium (22%) Seabed minerals 5
Slide 6: NOM - Attractive value growth proposition
NOM - Attractive value growth proposition OAX: NOM • Fully financed for planned development activities in 2017 • Value increasing feasibility studies well under way • Engebø – Mining and processing scenarios based on two attractive minerals; rutile and garnet – Significant progress in process test w
Slide 7: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber Oy, lithium 4. Questions
Slide 8: Consolidated Income Statements
Consolidated Income Statements Q2-2017 Q2-2016 Acc. 2017 Acc. 2016 2016 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Sales - - - (3.8) (2.4) Payroll and related costs (6.3) (3.9) (7.8) - (1.4) Share-based payment - (1.4) (1.4) - - Depreciation and amortisation (0.1) - -
Slide 9: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position 31.06.2017 31.12.2016 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 21.4 21.2 Property, plant and equipment 0.3 0.3 Investment in an associate 32.2 15.0 Total non-current assets 53.8 36.6 Cash 40.9 66.1 Trade and other
Slide 10: 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) 9 487 429 10,0 % Number of issued shares 94 825 468 2 NORDEA BANK FINLAND (NOMINEE) 4 717 771 5,0 % Owned
Slide 11: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber Oy, lithium 4. Questions
Slide 12: Engebø, a high grade rutile and garnet deposit
Engebø, a high grade rutile and garnet deposit 13
Slide 13: Mine plans and schedule for open pit and underground established
Mine plans and schedule for open pit and underground established 14
Slide 14: Mine plans and schedule for open pit and underground established
Mine plans and schedule for open pit and underground established 15
Slide 15: Process flow diagram and plant layout
Process flow diagram and plant layout 16
Slide 16: Layout, crushing and milling plant
Layout, crushing and milling plant 17
Slide 17: Plant layout, main process and separation
Plant layout, main process and separation 18
Slide 18: Layout product storage and shiploading
Layout product storage and shiploading 19
Slide 19: Process testwork has proved increased recovery
Process testwork has proved increased recovery ROM DESLIMING 100 GARNET SEP. ELECTROSTATIC SEP. 90 WHIMS GRAVITY SEP. DRY MAGNETICSEP. 1245 80 70 TiO2 Recovery (%) 1231 60 WHIMS 50 GRAVITY SEP. 1308 GARNET SEP. DRY MAGNETICSEP. 40 DESLIMING 30 ELECTROSTATIC SEP. 1308 - FLOTATION Prelim 20 10 0 0 20
Slide 20: Reshaping the project through PFS
Reshaping the project through PFS • Reduced initial capex • Increased overall mineral recovery • Robust cost position • Staged development approach • Longer open pit mining
Slide 21: PFS targeted to be finalised late in Q3
PFS targeted to be finalised late in Q3 2016 2017 Aktiviteter Aug. Sept. Okt. Nov. Des. Jan. Feb. Mar. Apr Mai Jun. Jul. Aug. Sep. Resources & Reserves Mining Crushing - Milling Processing Tailings & Waste rock Infrastructure Engineering Market Financial analysis PFS report * * PFS draft for revisjo
Slide 22: Global rutile supply, existing producers
Global rutile supply, existing producers ‘000 TiO2 units 800 -8.1% © TZMI - NOT FOR REPRODUCTION 0 2005 2007 2009 2011 2013 2015 2017f 2019f 2021f 2023f 2025f Others India China Kenya Sierra Leone CIS South Africa Australia Source: TZMI’s August 2017 forecasts 23
Slide 23: Global rutile supply/demand balance and outlook
Global rutile supply/demand balance and outlook ‘000 TiO2 units 1,000 © TZMI - NOT FOR REPRODUCTION 0 2010 2011 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f 2025f Likely new projects* Nordic rutile Existing and approved production Source: TZMI’s August 2017 forecasts * Ba
Slide 24: Rutile price forecast
Rutile price forecast US$/tonne FOB (nominal) 2,000 High Base Low 0 2005 2007 2009 2011 2013 2015 2017f 2019f 2021f 2023f 2025f Source: TZMI’s May 2017 forecasts 25
Slide 25: Major European pigment plants are close to Engebø
Major European pigment plants are close to Engebø The largest pigment manufacturers in Europe with chlorine technology have a total production capacity above 500.000 tonnes per annum 26
Slide 26: Engebø rutile and garnet, key strengths
Engebø rutile and garnet, key strengths ✓ One of the world’s largest deposits of natural rutile ✓ Among the highest grades of current producers and projects ✓ Vast resource of high quality garnet ✓ Impurities at background levels ✓ Located next to tidal waters and European markets ✓ Mining and envir
Slide 27: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber Oy, lithium 4. Questions
Slide 28: World markets are still early in the EV cycle
World markets are still early in the EV cycle EV sales by region Commodity demand in 100% EV world
Slide 29: Lithium has a small share of a EV battery, but is key to performance
Lithium has a small share of a EV battery, but is key to performance Chevy Bolt battery pack and battery pack commodity break-down
Slide 30: Keliber is progressing towards DFS for the lithium project
Keliber is progressing towards DFS for the lithium project • Well financed for ongoing activities • Substantial increase in estimated resources; 8.1 million tonnes @ 1.19% Li2O in measured and indicated categories • Comprehensive DFS program is ongoing; main purpose to provide the base for project f
Slide 31: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 3 2