Nickel 28 Capital Corp · TSXV:NKL
Nickel 28 Capital — Investor Presentation (January 2023)
28 slides from Nickel 28 Capital's investor presentation, January 2023
Slide 1: Accelerating Growth
TSX-V: NKL Investor Presentation | January 2023 Accelerating Growth
Slide 2: Forward-Looking Statements + Qualified Person
Forward-Looking Statements + Intro Qualified Person Ramu Upside This presentation contains certain information which constitutes materialize, or should assumptions underlying the forward-looking anticipated, estimated or intended. There can be no assurance that ‘forward-looking statements’ and ‘forw
Slide 3: Investment Highlights
Investment NKL’s Annual Ramu Cash Flow(1) Highlights Intro ~$34M Ramu Cash-Flow Generating Low-Cost Nickel Mine + Only Pure Ni-Play on TSX-V Upside Low cost open-pit nickel-cobalt mine located in Papua New Guinea Mine generating substantial free cash flow ~$22M ~$12M Ni Market Operational debt
Slide 4: Nickel28's Portfolio
NORTH CANOL PROPERTIES 2% Co NSR Nickel28’s Portfolio Intro SUNSET DUMONT Ni-Co 2% Co NSR WATERTON 1.75% NSR Ramu TRIANGLE RUSTY LAKE & TURNAGAIN Ni-Co GIGA METALS 2.0% NSR PROFESSOR & WALDMAN 2% Co NSR Full Pipeline of Projects Upside RAMU Ni-Co METALLURGICAL CORPORATION OF CHINA 8.56%-OWNERSHIP Ni
Slide 5: Corporate Structure
Ni Market Ramu 04 Upside Intro Jun. 17, 2020 Jul. 13, 2020 Aug. 06, 2020 Aug. 31, 2020 Total Debt Sep. 24, 2020 Share Price NKL.V: $1.05 Basic Shares Oct. 20, 2020 Nov. 12, 2020 Enterprise Value Cash + Equivalent Basic Market Cap Dec. 07, 2020 As at January 1, 2023 Equity Investments Jan. 04, 2021 J
Slide 6: Ramu Cash Flow
Ramu Cash Flow Intro Ramu Nickel Price: $12.00/lb Cobalt Price: $25.00/lb (1) Cash Flow (US$ Millions) Nickel Price: $15.00/lb Cobalt Price: $40.00/lb (1) Cash Flow (US$ Millions) Low-Cost Ramu $70.0 $70.0 US$64m Mine Leveraged $60.0 $60.0 to Commodity Upside $50.0 $50.0 $40.0 $40.0 Rise in Ni-Co pr
Slide 7: Debt Repayment Plan
Construction debt can be repaid at any time without penalty. Debt Repayment Intro Operating + Construction Debt (in US$ Millions) (1) Plan Ramu $140.00 $120.00 Positioned to Organically Upside $100.00 $80.00 Repay Construction Debt $60.00 By Early 2025 Ni Market $40.00 $20.00 $0.00 Dec-18 Dec-19 Dec
Slide 8: Leadership Team Overview
Leadership Team Intro Anthony Milewski Chairman of the Board Distinguished leader in the metals & mining industry, having Overview been a director, advisor, founder, or investor in multiple Ramu mining companies Former Chairman & CEO of Cobalt 27 Capital Corp. Upside Justin Cochrane President Co
Slide 9: Board of Directors
Board of Directors Intro Ramu Anthony Milewski Justin Cochrane Chairman of the Board President & Director Upside Philip Maurie Williams Swan Ni Market +15 years of mining and finance Practiced corporate law at Stikeman experience, including roles in Elliott LLP for +24 years with wide corporate
Slide 10: RAMU
TSX-V: NKL Nickel28 Capital Corp. RAMU World-Class Low-Cost Nickel Mine Generating Substantial Cashflow
Slide 11: Ramu Highlights
Ramu Highlights Intro Ramu Ramu High-Margin Ni Operation Consistently ranks at or near first-quartile of the global nickel cost curve1 $16.00 Expanding margins w/ annual Cash Cost ~$3/lb – one of the best performing Ni $14.00 mines in the world today Upside Producing at or above nameplate capa
Slide 12: Ni-Co Integrated Operation
Ni-Co MADANG PROVINCE Integrated Intro Madang Operation Basamuk Ramu Usino Plant Ramu Nickel-Cobalt Operation Upside Kurumbukari Mine Site Ni Market Exploration Licence Ramu All Weather Roads Nickel-Cobalt Operation Highway Madang Basamuk Plant Pipeline (134 km) Lae City Port Morseby 0 100 011 TSX-V
Slide 13: Ramu Reserves + Resources
Ore Reserves Ramu Reserves + As at December 31, 2019 Intro Nickel Cobalt (Mt) (%) (%) Resources Proven 21 0.91 0.10 Ramu Probable 33 0.85 0.09 Total Reserves 54 0.88 0.09 Significant Potential Upside Mineral Resources As at December 31, 2019 Nickel Cobalt to Deliver Decades of (Mt) (%) (%) Productio
Slide 14: Ramu Performance
Ramu Performance Intro Production in Mixed Hydroxide Ramu Production Has Exceeded 000s of Tonnes 34.7 35.4 33.7 34.0 32.7 32.8 Design Capacity for the Last 6 Years Upside 25.6 22.3 21.0 Ni Market 11.4 5.3 3.3 3.3 2.9 2.9 3.0 3.0 2.1 2.5 2.2 0.5 1.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 15: Sensitivity to Ni Price
Sensitivity to Ni Price Intro Ramu NPV Sensitivity to Ni Price (US$) Ni Price $7.50 $10.00 $12.50 $15.00 $17.50 $20.00 Upside Ramu JV NPV – US$(1) $64M $167M $272M $376M $486M $588M Ramu NPV / Share – C$(2) $0.93 $2.44 $3.97 $5.49 $7.10 $8.59 Ni Market CURRENT EV (excluding JV Debt) = $68M Current S
Slide 16: Metallurgical Corporation of China
Metallurgical Corporation Intro 65th on the Fortune Global 500 list US$110B in revenue and US$154B in assets of China Ramu MCC currently developing >2,000 projects worldwide Specializes in metallurgical engineering, construction & development MCC has engineered and constructed some of the
Slide 17: JV Structure + Optionality
JV Structure + Optionality Intro Pro Forma Ramu Ownership Effective JV Interest % Ramu JV interest increases Metallurgical Corporation of China Ni28 PNG Interests(1) to 11.3% once debt is repaid Upside 6.4% 8.7% 14.5% 8.6% 11.3% 20.6% Ni Market 64.9% 85.0% 80.0% PRE-LOAN REPAYMENT POST-LOAN REPAYMEN
Slide 18: UPSIDE
TSX-V: NKL Nickel28 Capital Corp. UPSIDE Royalty Portfolio on Some of the Most Prospective Ni –Co Reserves & Resources
Slide 19: Portfolio of Streams + Royalties
Portfolio of Primary Streams + Intro Royalty Name Operator Location Stage Metal(s) Royalty Type Construction- Dumont Waterton Global Res. Mgmt Québec Ni-Co 1.75% NSR ready Royalties Ramu Turnagain Giga Metals British Columbia Exploration Ni-Co 2% NSR Construction- Nyngan Scandium Int’l Mining Austra
Slide 20: Dumont Project + Royalty
Dumont Project + Intro Royalty Ramu One of the largest undeveloped nickel and cobalt reserves in the world Fully permitted, construction-ready Upside Impacts and Benefits Agreement successfully negotiated with local First Nickel Reserves Benchmarking (MT NI) Nation 7 Initial mine life of 30
Slide 21: Turnagain Project + Royalty
Nickel-cobalt deposit, 100% owned by Giga Metals Among the world's largest undeveloped nickel-cobalt sulphide deposits Turnagain Project Intro Low technical risk & significant exploration upside Ideally suited to be refined into Class 1 nickel and cobalt +Royalty Targeting to be world’s fi
Slide 22: Ni MARKET
TSX-V: NKL Nickel28 Capital Corp. Ni MARKET Rising Prices Supported by Strong Demand for Nickel in EV
Slide 23: EV Market Growth
EV Market Growth Intro Global Plug-in Vehicle Markets 8.3% Ramu 8,000,000 BEV & PHEV – Light Vehicles EV Sales Grew by 7,000,000 108% in 2021 Despite Upside 6,000,000 2.5% 4.2% 6.75M COVID Disruptions 2.2% 5,000,000 Ni Market 4,000,000 1.3% 3,000,000 0.9% 2,000,000 0.6% 0.4% 0.2% 1,000,000 PEV share
Slide 24: Nickel's Importance in the Electric Vehicle Industry
Nickel’s Importance Intro EV Nickel Demand: +1.3 Mtpa by 20301 in the Electric Ramu Contained Nickel in EVs (Mt) Vehicle 59% EV Nickel Demand as a % of Supply Upside % of 2018 Ni Supply Industry Ni Market 18% 5% 3% 2018 2020E 2025E 2030E Source: Glencore estimates, Wood Mackenzie, CRU, BNEF 023 (1)
Slide 25: Higher Ni Price Needed to Incentivize Supply
Higher Ni Price Needed to Intro Incentivize Ramu Nickel Laterite Capital Intensity US$/t Ni | Capex (US$B) Supply Upside 160,000 $6.3B +$6B 140,000 Capital Intensity (US$/t Ni) $2.8B 120,000 +$6B Investment of $50 - Ni Market 100,000 80,000 $1.7B $3.0B $2.5B $1.3B $1.9B $100 Billion Required to 60,0
Slide 26: WHY INVEST?
TSX-V: NKL Nickel28 Capital Corp. WHY INVEST?
Slide 27: Milestones + Catalysts
Milestones + Catalysts Why Invest? RAMU FREE JV INTEREST GENERATING OPTIONALITY Q2E POSITIVE NEWS INCREASES FROM SUBSTANTIAL ON FULLY PAID FULL REPAYMENT FLOW FROM 8.56% TO 11.3% FREE CASH FOR ROYALTY OF JV OPERATING ROYALTY WHEN JV LOAN IS FLOW PORTFOLIO DEBT INVESTMENTS REPAID TO MCC SIGNIFICANT S
Slide 28: TSX-V: NKL
TSX-V: NKL 4 King Street West, Suite 401 Toronto, Ontario CA M5H 1B6 info@nickel28.com nickel28.com
Nickel 28 Capital — Investor Presentation (January 2023) on 6ix