Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q2 2021 Earnings Presentation
21 slides from Nordic Mining Asa's earnings presentation, Aug 13, 2021
Slide 1: Q2 2021 Interim Presentation
Multi asset exposure Large deposit with unique location Minerals for a sustainable future All major permits in place EN Expand Oslo: NOM Valuable investment in lithium Q2 2021 Interim Presentation August 13, 2021
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
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Financial update 5. Q & A 3
Slide 4: Sustainable production of high-end industrial minerals
Sustainable production of high-end industrial minerals Rutile (Titanium dioxide) • Environmentally friendly pigment • Air cleaning surface materials • Aircrafts and aerospace • Health applications Garnet Engebø Rutile (TiO2) and Garnet • Health and environmentally (100%) friendly cutting and blastin
Slide 5: Q2 2021 Highlights
Q2 2021 Highlights ➢ Updated Definitive Feasibility Study (UDFS) for Engebø reconfirms the project as a world class mineral project ➢ Letter of Intent signed with EPC partners for Engebø construction work and with PMC partner on project management ➢ Offtake term sheet for total production of rutile
Slide 6: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Financial update 5. Q & A 6
Slide 7: Updated Feasibility Study: Sustainable project with robust economics
Updated Feasibility Study: Sustainable project with robust economics Plant CO2 Significant footprint emissions CAPEX reduced by reduced by reduction over 40% ~80% (93 MUSD) Post-tax Post-tax NPV @8% IRR of of 260 19.8 % MUSD
Slide 8: High-margin Free Cash Flow of USD 1.4 billion
High-margin Free Cash Flow of USD 1.4 billion UDFS Financial Dashboard1 Project Free Cash Flow (USD million)1 2025 2030 2035 2040 2045 2050 2055 2060 Post-tax IRR of 19.8% and 100 1400 NPV@8% USD 260.4 million 1000 EBITDA 50 600 USD 2.1 billion (68%) 200 39 years 0 Project Free Cash Flow2 -200 ~ USD
Slide 9: Lump-sum EPC contracts reduce execution and cost overrun risks
Lump-sum EPC contracts reduce execution and cost overrun risks • EPC contracts cover over 70% of construction capex • Pre-construction activities ongoing; - Basic engineering - Project set-up and system integration • Recruitment of owner’s team in process 9
Slide 10: ESG embedded in plans for construction and operation
ESG embedded in plans for construction and operation Use of electrical dryers instead of natural gas Climate responsibility fueled dryers results in ~80% reduction of total CO2 emissions New process chemicals have been approved by Environmental footprint the Environment Agency, confirming reduction
Slide 11: Long-term offtake secured for total production of rutile
Long-term offtake secured for total production of rutile • Term sheet agreement signed with reputable Japanese trading house for the majority of the rutile production • Term sheet agreement signed with Kronos (US), INC. for the remaining production of rutile • Demand for rutile and high-grade feedst
Slide 12: Mining rights and operational license secured for Engebø
Mining rights and operational license secured for Engebø • NM’s mining rights cover the entire Engebø eclogite deposit • Operational license granted from the Directorate of Mining confirms NMs right to all minerals in the deposit • AMR’s claim is contrary to the Directorate’s decision and contrary t
Slide 13: Full speed on preparing for Engebø project financing
Full speed on preparing for Engebø project financing • Investment banks Clarkson Platou Securities AS and SpareBank 1 Markets AS engaged to advice on Engebø project financing • Pre-sounding started with selected and strategic and financial investors to explore available equity and debt structures •
Slide 14: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Financial update 5. Q & A 14
Slide 15: Keliber progressing with updated feasibility study
Keliber progressing with updated feasibility study • New resource assessments for the Rapasaari deposit increased by over 30%. Keliber’s total resource base is up to 13,69 Mill tonnes from 11,7 mill. tonnes • Keliber is progressing its updated feasibility study scheduled to be published early 2022 •
Slide 16: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Financial update 5. Q & A 16
Slide 17: Fully funded towards start of Engebø construction
Fully funded towards start of Engebø construction The Group’s balance sheet remains solid: o NOK 65,4 million in cash - Net cash outflow from operations of NOK 18.8 million in the quarter, reflecting activities to finalize the UDFS, and further activities towards construction and production - Net ca
Slide 18: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Financial update 5. Q & A 18
Slide 19: Questions?
QUESTIONS? ➢ Updated Definitive Feasibility Study (UDFS) for Engebø reconfirms the project as a world class mineral project ➢ Letter of Intent signed with EPC partners for Engebø construction work and with PMC partner on project management ➢ Offtake term sheet for total production of rutile from Eng
Slide 20: Appendix #1 Consolidated income statement
Appendix #1 Consolidated income statement Q2-2021 Q2-2020 Acc.2021 Acc.2020 2020 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Sales 0.0 - - (4.5) (2.6) Payroll and related costs (8.7) (6.3) (14.4) (0.0) (0.1) Depreciation and amortization (0.1) (0.1) (0.2) (7.8) (5.0) O
Slide 21: Appendix #2 Consolidated statement of financial position
Appendix #2 Consolidated statement of financial position 30.06.2021 31.12.2020 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.6 28.3 Property, plant and equipment 0.2 0.4 Right-of-use assets 0.3 0.4 Financial investments 121.3 100.1 Total non-current assets 150.