Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q1 2022 Earnings Presentation
26 slides from Nordic Mining Asa's earnings presentation, May 10, 2022
Slide 1: Q1 2022 Interim Presentation
Large deposit with unique location Fully permitted project Minerals for a sustainable future Early construction works started EN Expand Oslo: NOM Significant value increase in lithium Q1 2022 Interim Presentation May 10, 2022
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 and metals
Sustainable production of high-end industrial minerals and metals 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
Slide 5: Q1 2022 Highlights and YTD 2022
Q1 2022 Highlights and YTD 2022 ➢ Operational license for Engebø finally granted ➢ Permits for groundworks at Engebø resolved by Sunnfjord municipality ➢ Landowner properties acquired for process area at Engebø ➢ Early construction work commenced at Engebø ➢ Keliber’s DFS update - project post-tax N
Slide 6: Strengthening of group management
Strengthening of group management Mr. Maurice Kok engaged as Commercial Director Mr. Kok will have overall responsibilities for sales and marketing and will participate in the Groups activities within Business Development. Mr. Kok is a Dutch citizen and resides in Norway. Mr. Kok has broad and inter
Slide 7: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 7
Slide 8: Health and Safety
Health and Safety HSE status Key Performance Year to Q1 Target * indicator date ▪ Fencing to secure the working area was completed in April Lost time injuries ▪ Main construction work started after fencing on April 21st (1/1 million working 0 0 <2,5 hours) ▪ Mandatory HSE training completed for curr
Slide 9: Operational license finally resolved by Ministry of Trade, Industry and Fisheries
Operational license finally resolved by Ministry of Trade, Industry and Fisheries • On May 5, the ministry resolved that the operating license for Engebø is maintained as granted with full rights to the Engebø deposit, confirming the resolution from the Directorate of Mining (“DirMin”). The decision
Slide 10: A focused ESG policy – aiming for A-level rating
A focused ESG policy – aiming for A-level rating • Our ESG Policy is based on the United Nations sustainability goals • We aim for A-level rating for our operations according to the Towards Sustainable Mining Initiative Environmentally responsible Positive impact on communities A safe and healthy wo
Slide 11: Engebø has superior climate footprint
Engebø has superior climate footprint Titanium producers analysis Total Scope 1 and 2 Emissions vs Emission Intensity Climate goals 4 500 000 3.5 • To produce top-rated products on Global Warming Potential 4 000 000 Total scope 1 and 2 emissions (tCO2e) 2020 3.0 GHG emission intensity (tCO2e per ton
Slide 12: Goal of net gain for biodiversity
Goal of net gain for biodiversity New methods for continuous tracking of biodiversity • As a response to The UN Convention on biodiversity ’The Post-2020 Global Biodiversity Framework’, the Engebø project has a goal of net gain for biodiversity over the Life of Mine • A Biodiversity Action Plan is b
Slide 13: The Engebø project is positively anchored locally
The Engebø project is positively anchored locally • On February 1st, 2022 the Sunnfjord Municipality Board resolved to approve the building permit for Engebø Rutile and Garnet. The Resolution was made with 35 of 42 members voting in favor. • Nordic Mining entered into EPC contracts with the fourth l
Slide 14: Early construction work on process area started in April
Early construction work on process area started in April • On April 20th NM finalized its process of acquiring landowner properties necessary for commencing construction work at the designated process plant area. • The early construction works started at site on April 21st. Progress of the early wor
Slide 15: Globalization being reversed; EU and US call for increased domestic production
Globalization being reversed; EU and US call for increased domestic production • The western world is increasingly dependent on foreign mineral sources that are essential for modern technologies, national security and prosperity. The war in Ukraine has led to an even stronger focus on production and
Slide 16: Q1 remained firm for Ti feedstocks and TiO2 pigment production
Q1 remained firm for Ti feedstocks and TiO2 pigment production TiO2 pigment • Kronos reported a 23% sales increase in Q1 2022 vs Q1 2021 • Tronox’ TiO2 revenues for Q1 increased by 11% compared to Q1 2021 • TiO2 inventory levels remain low and below seasonal norms. Rutile • Strong demand from all se
Slide 17: Progressing financing discussions – target financial close before end H1 2022
Progressing financing discussions – target financial close before end H1 2022 • NM is progressing assessment of several financing structures, with discussion on possible participation in project financing from selected strategic investors in final stages • Remaining project financing package is expe
Slide 18: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 18
Slide 19: Keliber project value increases by 220% to EUR 1.2 billion in updated DFS
Keliber project value increases by 220% to EUR 1.2 billion in updated DFS ▪ Keliber is planned as the first fully integrated lithium producer in Europe with direct access to key European battery markets Project financials UDFS (DFS 2019) Post-tax NPV @8.0% EUR 1.23bn (EUR 384m) Post-tax IRR 31% (24%
Slide 20: Positioned to be first supplier of battery grade lithium in Europe
Positioned to be first supplier of battery grade lithium in Europe BASF TESLA • Europe is at the global j a p Operational 2020 TBC forefront in the EV CATL k KELIBER revolution, with Norway as b a spearhead 24 GWh 60 GWh 2026 LiOH plant, 2024 SAMSUNG SDI GS YUASA l 3 GWh plant operational r c 3 GWh
Slide 21: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 21
Slide 22: Fully funded up to remaining project financing targeted before end H1 2022
Fully funded up to remaining project financing targeted before end H1 2022 The Group’s balance sheet remains solid: o NOK 32 million in cash - NOK 112.5 million on Escrow account for early construction works - Net cash outflow from operating activities of NOK 14 million, reflecting the ongoing work
Slide 23: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 23
Slide 24: Q & A
Q&A ➢ Operational license for Engebø finally granted ➢ Permits for groundworks at Engebø resolved by Sunnfjord municipality ➢ Landowner properties acquired for process area at Engebø ➢ Early construction work commenced at Engebø ➢ Keliber’s DFS update states project post-tax NPV of EUR 1.2 billion
Slide 25: Appendix #1 Consolidated income statement
Appendix #1 Consolidated income statement Q1-2022 Q1-2021 2021 Unaudited Unaudited Amounts in NOK million Audited - 0.2 Other income 0.2 (4.4) (4.2) Payroll and related costs (16.2) (0.0) (0.0) Depreciation and amortization (0.1) (13.3) (11.8) Other operating expenses (44.5) (17.7) (15.9) Operating
Slide 26: Appendix #2 Consolidated statement of financial position
Appendix #2 Consolidated statement of financial position 31.03.2022 31.12.2021 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.9 28.8 Property, plant and equipment 0.2 0.2 Right-of-use assets 0.2 0.2 Financial investments 396.5 190.5 Total non-current assets 425.