Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q2 2023 Earnings Presentation
24 slides from Nordic Mining Asa's earnings presentation, Aug 15, 2023
Slide 1: Minerals for a sustainable future
Minerals for a sustainable future Q2 2023 interim presentation 15 August 2023
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. Engebø Rutile and Garnet 3. Financial update Q2-2023 4. Q & A
Slide 4: Q2 2023 Highlights
Introduction Q2 2023 Highlights • No Lost Time Injuries (LTI) in the 2d quarter Safety & • Nordic Mining’s transparency report published ESG • Waste management plan for Engebø approved • Construction works progressing according to plan Construction • Several milestones completed closing out risks re
Slide 5: Norwegian government launches a new, ambitious mineral strategy
Introduction Norwegian government launches a new, ambitious mineral strategy On June 21st, the Norwegian government presented its new mineral strategy for Norway. The strategy follows many of the pillars in EU’s Critical Raw Material Act, with emphasis on the following: 1. Faster permitting of new m
Slide 6: Nordic Mining will pause its engagement in seabed minerals
Introduction Nordic Mining will pause its engagement in seabed minerals During the last year, Nordic Mining has considered various strategic opportunities within exploration of seabed minerals as well as future opportunities on land The lead time to develop and establish viable and commercial exploi
Slide 7: Engebø Rutile and Garnet
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q2-2023 4. Q & A
Slide 8: Health & Safety
Engebø Rutile and Garnet Health & Safety Key Performance Project to HSE status Q2 Target indicator date ▪ Maintained around 70 workers on site in average for Q2 with some Lost time injuries (1/1 million working 0 0 <2,5* reduction in EPC1 resources while EPC2 ramping up in July. hours) Total recorda
Slide 9: Significant progress in Q2, preparations for increased site activity underway
Engebø Rutile and Garnet Significant progress in Q2, preparations for increased site activity underway • Fundamenter for prosessbygninger • Ferdigstillelse av malmsjakt • Mekanisk utstyr under fabrikasjon? • Miljømålinger med mennesker • NM konferanse i Førde, mennesker Overview of process plant are
Slide 10: Update of environmental baseline ongoing
Engebø Rutile and Garnet Update of environmental baseline ongoing Water sampling, vibration measurements 10
Slide 11: Underground infrastructure completed, civil foundations to start
Engebø Rutile and Garnet Underground infrastructure completed, civil foundations to start From left: Chamber for primary crusher, top of vertical ore shaft, bottom of vertical ore shaft 11
Slide 12: Owner's site team will increase in the next quarter
Engebø Rutile and Garnet Owner’s site team will increase in the next quarter From left: View over process area, inside of administration building and workshop 12
Slide 13: Groundwork and civil foundations for the process plant well underway
Engebø Rutile and Garnet Groundwork and civil foundations for the process plant well underway • Fundamenter for prosessbygninger • Ferdigstillelse av malmsjakt • Mekanisk utstyr under fabrikasjon? • Miljømålinger med mennesker • NM konferanse i Førde, mennesker From left: Area and foundations for pr
Slide 14: Active communication builds knowledge and stakeholder engagement
Engebø Rutile and Garnet Active communication builds knowledge and stakeholder engagement 14
Slide 15: Construction on track to start production in Q4 2024 at budget
Engebø Rutile and Garnet Construction on track to start production in Q4 2024 at budget Main Highlights Construction by EPC1 Sunnfjord Industripartner AS: ▪ Completed ore conveyor and primary crushing chamber, and new bypass tunnel for improved operational flexibility. ▪ Completed new 3 km access ro
Slide 16: Recruitment of operational resources according to plan
Engebø Rutile and Garnet Recruitment of operational resources according to plan Operations Team is ramping-up Key management recruitment Operators and Engineers towards handover from EPCs after Is close to final and onboarded, with only Mining engineer started 1st August. Four engineers commissionin
Slide 17: Long lead technology packages in fabrication at leading sustainable suppliers
Engebø Rutile and Garnet Long lead technology packages in fabrication at leading sustainable suppliers Package ID Package name Procurement status PM012B Wet Vibrating Screens Contract Signed Metso Outotec will be the main technology provider for comminution & milling for Engebø Rutile and Garnet, wh
Slide 18: Rutile demand supported by welding and Ti-metal market segments
Engebø Rutile and Garnet Rutile demand supported by welding and Ti-metal market segments Mixed demand for TiO2 feedstocks: - China: mixed picture where chloride feedstocks are in high demand whereas sulphate feedstock demand is subdued - Europe / USA: feedstock demand down vs last year, both reflect
Slide 19: Garnet market remain steady
Engebø Rutile and Garnet Garnet market remain steady • Industrial demand in North America was variable in the second quarter. High inventories and concern for the US debt ceiling slowed demand in April and early May. This trend has been reversed and there was fairly strong demand in June. • Demand i
Slide 20: Financial update Q2-2023
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q2-2023 4. Q & A
Slide 21: Fully funded up to production: ~NOK 370m invested in Q2 post-FID
Financial update Q2-2023 Fully funded up to production:~ NOK 370m invested in Q2 post-FID ▪ The Group’s financial position remains solid: o The Group had NOK 687 million in cash and cash equivalents at quarter-end o NOK 566 million in cash and cash equivalents in Engebø Garnet and Rutile, plus USD 5
Slide 22: Highlights and Q&A
Highlights and Q&A • No Lost Time Injuries (LTI) in the 2d quarter Safety & • Nordic Mining’s transparency report published ESG • Waste management plan for Engebø approved • Construction works progressing according to plan Construction • Several milestones completed closing out risks related to HSE,
Slide 23: Consolidated income statement
Appendix Consolidated income statement 1 Main financial items in Q2: - net gain on foreign exchange Q2-2023 Q2-2022 Acc.2023 Acc.2022 2022 related to the bond of NOK Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited 0.6 million; - - Other income - - - - interest income on cash h
Slide 24: Consolidated statement of financial position
Appendix Consolidated statement of financial position 30.06.2023 31.12.2022 Amounts in NOK million Unaudited Audited ASSETS 1 Engebø construction works of NOK 368 million, Mine under construction 1 788.9 288.4 capitalized under «Mine under construction» in Q2, Property, plant and equipment 1.0 1.1 u