Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Technical Presentation (May 2021)
35 slides from Nordic Mining Asa's technical presentation, May 11, 2021
Slide 1: Engebø Rutile and Garnet
Engebø Rutile and Garnet EN Expand Oslo: NOM Updated Definitive Feasibility Study 11 May 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 Highlights 2 Project 3 Financials 4 Execution 5 Appendix 3
Slide 4: Reduced CAPEX and increased market resilience
Reduced CAPEX Increased Reduced and market execution financing resilience risk risk Improved Retained environmental financial performance returns
Slide 5: Sustainable project with robust project economics
Sustainable project with robust project 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 6: A strategic position in the growing USD billion TiO2 market
A strategic position in the growing USD 15 billion TiO2 market Titanium, one of the most Rutile is the cleanest and purest form Rutile versatile elements with broad of TiO2 and the only feedstock that can applications in multiple value be used directly in production of chains environmentally friendl
Slide 7: Significant rutile supply deficit ahead
Significant rutile supply deficit ahead • Supply outlook indicates significant decrease in production • Supply decline follows from resource depletion in Australia, Africa and CIS • According to TZMI, a lasting supply deficit is expected from 2023 • High grade feedstock, including rutile, is vital t
Slide 8: Garnet: industrial mineral with growing applications and environmental benefits
Industrial mineral with growing applications and environmental benefits The only viable mineral for Garnet is a completely inert industrial waterjet cutting mineral without health implications The waterjet technology has revolutionized the production Garnet is easily recyclable for processes for e.g
Slide 9: Strategic market position as first garnet producer in Europe
Strategic market position as first garnet producer in Europe • Solid demand growth forecasted in the next decade • Waterjet cutting is the driving application area • The largest markets, US and Europe remain dependant on significant imports • Engebø has logistical advantages to both Europe and US •
Slide 10: Pre-construction
Q3/2021 Pre-construction work & financing
Slide 11: Agenda
Agenda 1 Highlights 2 Project 3 Financials 4 Execution 5 Appendix 11
Slide 12: Large, high-grade deposit with unique characteristics
Large, high-grade deposit with unique characteristics Deposit Deposit Location Location Infrastructure Infrastructure • 2.5 km eclogite ore body • Location by the North Sea • 40 minutes drive from outcropping at surface with ice-free, deepsea quay regional centre and two nearby airports • Long mine
Slide 13: Improved Life of Mine schedule increases project value
Improved Life of Mine schedule increases project value Engebø UDFS Life of Mine Schedule • High-grading increases rutile (TiO2) head grade Mt TiO2 % 6 4,5 % • Improved schedule for waste rock and 4,0 % stockpiling, with low open pit stripping ratio 5 (waste to ore ratio) of 0.6 3,5 % 4 3,0 % • Remov
Slide 14: Simplified underground infrastructure reduces capex
Simplified underground infrastructure reduces capex • Optimized mine access and pushback design • New pit design enables reduced fleet size and reduces bench height and width • Improved ore logistics from mine to process plant • Overall mass flow supported by gravity from mine to ship • Significant
Slide 15: Fit-for-purpose plant layout reduces capex
Fit-for-purpose plant layout reduces capex • Stick-build methodology enables larger process buildings and compact plant layout • Physical footprint of process plant reduced by over 40% • Fit-to-purpose design to optimize use of land and infrastructure • Reduction of civil and earthworks • Reduction
Slide 16: Integrated process based on proven technology and extensive test work
Integrated process based on proven technology and extensive test work • Integrated processing and production of high quality rutile and garnet • Industrial scale test work of all critical process steps • Limited rutile flotation with approved chemicals • High grade rutile (95% TiO2) with negligible
Slide 17: Towards a fossil free operation; electrification reduces CO2 emission
Towards a fossil free operation; electrification reduces CO2 emission • Use of electrical dryers will make the CO2 equivalents from the operation process plant free of CO2 emissions and reduce operating cost Kg CO2e per tonne of TiO2 • Overall CO2 emissions at low levels 1000 compared to the interna
Slide 18: 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 19: Agenda
Agenda 1 Highlights 2 Project 3 Financials 4 Execution 5 Appendix 19
Slide 20: High-margin EBITDA of USD 2.1 billion over Life of Mine
High-margin EBITDA of USD 2.1 billion over Life of Mine 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 million 1000 Life of Mine Operating Cash Flow 50 600 USD 1.7 billion 200 39 years 0 Free C
Slide 21: Dual mineral revenues position Engebø in 1st quartile of the R/C curve
Dual mineral revenues position Engebø in 1st quartile of the R/C curve TZMI 2024 Industry Revenue-to-Cash Cost ratio curve (R/C Ratio) 5 1st quartile 2nd quartile 3rd quartile 4th quartile 4 Engebø (TiO2 units x 2) Engebø is positioned in the 1st quartile of the titanium 3 feedstock industry R/C cur
Slide 22: Project optimizations improve financial resilience
Project optimizations improve financial resilience Project IRR sensitivities (%) Project NPV sensitivities (USD million) 25% 350 24% 330 23% 310 22% 290 21% 270 20% 250 19% 230 18% 210 17% 190 16% 170 15% 150 -20% -10% 0% 10% 20% -20% -10% 0% 10% 20% Capex Opex Rutile Price Garnet Price Capex Opex R
Slide 23: Agenda
Agenda 1 Highlights 2 Project 3 Financials 4 Execution 5 Appendix 23
Slide 24: Lump-sum EPC contracts reduce execution and cost overrun risks
Lump-sum EPC contracts reduce execution and cost overrun risks • Early engagement with potential EPC partners to bring new ideas and reduce risk • Project structured in 4 major EPC contracts comprising over 70% of total capex • EPC partnerships drive ownership and common project focus • Owner’s team
Slide 25: Lean project team strengthens control and reduces schedule risk
Lean project team strengthens control and reduces schedule risk Project Director Environment & Process & Production • Owner’s team will be strengthened by Communications experts from a reputable Project Management Consultant (PMC) Contract Administration Technical & Maintenance • PMC supports with a
Slide 26: Integrating FEED in construction shortens time to production
Integrating FEED in construction shortens time to production 2021 2022 2023 2024 FID1 Detail Engineering EPC 1 - Earthworks EPC 2 – Civil & Buildings EPC 3 – Structural & Mechanical EPC 4 – Electro & Installation Mechanical completion Cold commissioning Hot commissioning Production ramp-up Q3 Q4 Q1
Slide 27: Acknowledgements
Acknowledgements COWL AXE VALLEY MINING. JKizy splan viak Technology Transfer £))) Mineral Technologies IMS aa MINTS ENGINEERING DNV SINTEF == srk consulting ai % aS DEEP Wii Unearthing Mineral Excellence (ALS) Minerals
Slide 28: Near-term activities
Near-term activities • Formalize partnerships with EPC Contractors • Preparation for Owner’s team build-up: o Recruitment of key project resources o Assigning PMC • Project setup and planning with PMC and EPCs • Defining pre-construction activities (Eg. design and engineering) • Finalize offtake agr
Slide 29: Questions?
Questions? 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 30: Agenda
Agenda 1 Highlights 2 Project 3 Financials 4 Execution 5 Appendix 30
Slide 31: Appendix #1 Mineral resources and ore reserves
Appendix #1 Mineral resources and ore reserves Mineral resources (2% TiO2 cut-off) Ore reserves Tonnes (Mt) TiO2 grade (%) Garnet grade (%) Tonnes (Mt) TiO2 grade (%) Garnet grade (%) Measured (M) 29.2 3.60 44.5 Open Pit Indicated (I) 104.0 3.48 43.9 Proven (P) 19.33 3.56 44.25 Probable (Pr) 10.33 3
Slide 32: Appendix #2 Key project figures and assumptions
Appendix #2 Key project figures and assumptions Mining and Processing Operating Costs Description Units Value Description Units USD/Unit Open Pit Phase Years 15 Open Pit Mining - Waste2 Waste Tonne 2.53 Total Open Pit Ore Production Mt 29.7 Open Pit Mining – Ore2 Ore Tonne 2.48 Underground Phase Yea
Slide 33: Appendix #3 Key project financials
Appendix #3 Key project financials Project Economics1 Pre-Production Capital Expenditure Description Units Value Description Units Value Pre-tax NPV @ 8.0% USD million 354.6 Initial Capital Expenditure for Open Pit USD Million 203.4 and Processing Plant Pre-tax IRR % 22.5 Capital Intensity for Open
Slide 34: Appendix #4 Board and Management
Appendix #4 Board and Management Board of Directors Management Kjell Roland, Chairman Ivar S. Fossum, CEO • Former CEO of Norfund • 15 years with Nordic Mining (since founding) • Previous experience as partner and CEO in ECON Management AS and ECON Analysis • 20 years experience from management posi
Slide 35: Appendix #5 Responding to the need of critical minerals
Appendix #5 Responding to the need of critical minerals • EU Commission has taken actions to make Europe’s raw material supply more secure and sustainable • EU’s list of Critical Raw Materials reflects economic importance and supply challenges • Titanium and Lithium are both on the list of critical