Nordic Iron Ore Ab · OMXSTO:NIO
Nordic Iron Ore Ab — Investor Presentation (August 2024)
25 slides from Nordic Iron Ore Ab's investor presentation, August 2024
Slide 1: Nordic Iron Ore AB Company Presentation August 2024
͟ Picture: Rendered schematic of Ludvika mines surface infrastructure NORDIC IRON ORE AB (PUBL) COMPANY PRESENTATION ͟ AUGUST 2024
Slide 2: The global steel market is steadily growing on the back of worldwide drivers
THE GLOBAL STEEL MARKET IS STEADILY GROWING ON THE BACK OF WORLDWIDE DRIVERS ͟ Steel demand expected to increase with more than 56% between 2015-2050 Million tonnes steel +56% Drivers 2 500 Growth in 900 Unmet market global GDP demand Growing 1 600 population Increased urbanisation Increased spendin
Slide 3: Green steel plays an important role in reaching global CO2 targets
GREEN STEEL PLAYS AN IMPORTANT ROLE IN REACHING GLOBAL CO2 TARGETS ͟ Required change in steel production carbon intensity in line with the Paris agreement Tonnes CO2 per tonne steel produced -89% 1,8 ~0,2 2015 2050E European green steel initiatives ~90% lower carbon intensity New metallurgy is neede
Slide 4: Offers ultra high-grade iron ore concentrate - in the top 3% seaborne market
OFFERS ULTRA HIGH-GRADE IRON ORE CONCENTRATE - IN THE TOP 3% SEABORNE MARKET ͟ Higher iron grade leads to less CO2 emissions and a premium valuation Changing market conditions increase demand for seaborne high grade iron ore and green mining1) >66% ✓ Only 3% of the global iron ore supply is above Ir
Slide 5: Nordic Iron Ore has secured SEK 35bn offtake agreement
NORDIC IRON ORE HAS SECURED SEK 35BN OFFTAKE AGREEMENT ͟ Secured permissions and qualified iron ore deposit Blötberget overview Cargill investment and commitment Mine assets (mt) 12 Measured 55 1) 10 Indicated Offtake agreement Funding2) 45 Inferred 25mt SEK 60m Iron ore concentrate Initial investme
Slide 6: Breakdown of near-term plan
BREAKDOWN OF NEAR-TERM PLAN ͟ Commence of the pre-construction phase in Q3 2024 Construction of mining Pre-construction facility Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Ongoing: Secure environmental permit and other permits for the construction phase Build organisation and company structure
Slide 7: Renowned investors participated in the SEK 163m directed rights issue 2024
RENOWNED INVESTORS PARTICIPATED IN THE SEK 163M DIRECTED RIGHTS ISSUE 2024 ͟ Cargill – Long-term partner and new largest shareholder ͟ Svelland Capital – New large shareholder with ~10% of capital ▪ Offtake agreement regarding 25mt ultra high-grade iron ore ▪ Svelland Capital (UK) Ltd is a commoditi
Slide 8: Blötberget has strategic location with several important connections
BLÖTBERGET HAS STRATEGIC LOCATION WITH SEVERAL IMPORTANT CONNECTIONS ͟ Roads and railroads connecting Ludvika to the rest of Sweden Blötberget is strategically located next to highways part of the Swedish national road system Highways in the With a population of ~26,500, Ludvika can Swedish national
Slide 9: Nordic Iron Ore electrified fleet in comparison with traditional diesel fleet
NORDIC IRON ORE ELECTRIFIED FLEET IN COMPARISON WITH TRADITIONAL DIESEL FLEET ͟ An electrified fleet demonstrates significantly reduced emissions Electrified Fleet – Diesel Fleet Emissions Electrified Fleet – Overall CO2t-(Scope 1-3) Comparison 14 25 12 20 CO2t-e emissions CO2t-e emissions 10 8 15 S
Slide 10: Net present value of Blötberget USD ~450m
NET PRESENT VALUE OF BLÖTBERGET USD ~450M ͟ Financial evaluation summary – Company estimates1) ͟ Sensitivity analysis at different long-term sales prices KPI EBITDA and average price for LoM USDm USD Mining period >15 years +12% in price -> 3 000 +19% in EBITDA 145 150 130 120 Average Fe grades >36.
Slide 11: Free cash flow and payback period of Blötberget
FREE CASH FLOW AND PAYBACK PERIOD OF BLÖTBERGET1) ͟ Free cash flow and discounted cash flow USDm 1 250 1 050 Payback period ~5 years Cumulative FCF 850 Payback period ~6 years Cumulative DCF (8%) 650 450 250 50 -150 -350 Y-2 Y-1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Free cash flow (
Slide 12: Blötberget and beyond
BLÖTBERGET AND BEYOND Phase 1 Future expansion phases Blötberget mine Väsman mine Håksberg mine • Mineable reserve: 34mt according to DFS • NIO performed a confirmation drilling • Mining concession 2011 2019 program in 2012 • Environmental permit 2014 • Production start end of 2028, enabling • Minin
Slide 13: Beyond iron ore concentrates
BEYOND IRON ORE CONCENTRATES ͟ Initial focus on iron ore concentrates but opportunity to explore new products • Future growth opportunities through new product development, increased sales, and improved margins • Expanding market reach and customer base through diversification of product Direct redu
Slide 14: Key company highlights
KEY COMPANY HIGHLIGHTS ͟ Secured with offtake agreement, logistics and high-grade iron ore concentrates - short lead-time to production Strong global demand for high grade iron ore concentrates Highly attractive ESG profile Offtake agreement ensuring cash flow and long-term partnership Attractive bu
Slide 15: Nordic Iron Ore
Nordi 7 lron Ore
Slide 16: Appendix
Appendix Nordic Iron Ore
Slide 17: Executive management
EXECUTIVE MANAGEMENT Management Preliminary organisation at production Ronne Hamerslag CEO CEO since July 2022 Long experience from international operations and business leadership within mining and other industries • Former Head of Supply Management at Boliden Director Marketing CFO & Business • Va
Slide 18: Board of directors
BOARD OF DIRECTORS Bengt Nilsson Tomas Olofsson Anders Bengtsson Gösta Bergman Chairman of the board Board member Board member Board member 30 years of experience as manager and leader in Entrepreneur with 20 years of experience in the Partner in Bengtssons Tidnings Aktiebolag, invests in Business l
Slide 19: Shareholders & the share
SHAREHOLDERS & THE SHARE ͟ Top 10 largest shareholders1) Shareholder Comment % of capital & votes Key Data2) Cargill Inc Leon Davis, Board member 16.67% Sector Basic Materials Bengtssons Tidnings AB Anders Bengtsson, Board member 15.51% Ticker NIO Ludvika Holding AB Tomas Olofsson, Board member 9.94
Slide 20: Exploration results
EXPLORATION RESULTS ͟ The characteristics of mineral resources and mineral reserves Mineral Resources Mineral Reserves Inferred Increasing level of geological Indicated Probable knowledge and confidence Measured Proved Consideration of mining, processing, metallurgical, economic, marketing, legal, e
Slide 21: Income statement
INCOME STATEMENT SEKm 2019 2020 2021 2022 2023 Net sales - - - - - Other external expenses -5.0 -4.3 -4.6 -6.5 -6.8 Personnel costs -3.7 -3.2 -3.4 -2.1 -4.1 Depreciation and write - downs of tangible and -0.8 -0.8 -0,4 -0.8 -0.2 intangible assets EBIT -9.5 -8.3 -8.2 -9.4 -11.1 Financial income 0.0 0
Slide 22: Balance sheet
BALANCE SHEET SEKm 2019 2020 2021 2022 2023 Intangible assets 149.4 156.7 160.4 164.9 166.9 Tangible fixed assets 3.2 2.4 2.0 1.8 1.7 Financial fixed assets 0.0 0.0 0.0 0.0 0.0 Other current assets 0.8 0.5 0.5 0.5 1.0 Cash and cash equivalents 13.0 5.2 2.8 2.7 0.9 Total assets 166.4 164.9 165.7 170.
Slide 23: Key historical financials
KEY HISTORICAL FINANCIALS SEKm 2019 2020 2021 2022 2023 EBIT -9.5 -8.3 -8.2 -9.4 -11.1 Net result -11.2 -9.0 -8.8 -10.5 -12.9 Outstanding shares 29,969,470 33,582,993 37,135,055 37,135,055 37,135,055 FTEs 4 3 3 3 3 New share issue 25.6 6.9 10.7 0.0 0.0 Cash balance 13.0 5.2 2.8 2.7 0.9 23
Slide 24: Disclaimer & definitions
DISCLAIMER & DEFINITIONS Disclaimer: This presentation has been compiled based on information from Nordic Iron Ore AB (publ) (”NIO" or "the Company") and on public information with the purpose to describe the Company's operations, the market in which the Company operates, the Company's financial dev
Slide 25: Nordic Iron Ore
Nordi 7 lron Ore
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