Nickel Industries Limited · ASX:NIC
Nickel Industries — Nickel Mines — Macquarie Australia Conference 2021
25 slides from Nickel Industries's conference presentation, May 5, 2021
Slide 1: Presentation to Macquarie Australia Conference (ASX cover letter)
ABN 44 127 510 589 Level 2, 66 Hunter Street Sydney NSW 2000 Australia For personal use only T: +61 2 9300 3311 F: +61 2 9221 6333 E: info@nickelmines.com.au 5 May 2021 The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000 (25 pages by email) PRESENTATION TO MACQUARIE AUSTRALIA CONFEREN
Slide 2: A New Force in Global Nickel
A NEW FORCE IN GLOBAL NICKEL For personal use only Macquarie Australia Conference May 2021 0
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Nickel Mines Limited (ABN 44 127 510 589) (‘NIC’). The information contained in this presentation is for information For personal use only purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in tha
Slide 4: This is not a mining story
For personal use only WHILST WE OWN A WORLD CLASS NICKEL LATERITE MINE… IT’S A STORY ABOUT THE PRODUCTION OF THE LOWEST CAPITAL INTENSIVE AND SOME OF THE MOST PROFITABLE NICKEL UNITS IN THIS IS NOT A THE GLOBAL MARKET IN PARTNERSHIP WITH THE WORLD’S LARGEST, LOWEST COST STAINLESS STEEL PRODUCER. MIN
Slide 5: Nickel Mines – Who are we?
Nickel Mines – Who are we? IMIP IMIP MOROWALI IWIP For personal use only NIC HNI RNI HM ANI ASX 80% 80% 80% 50% ▪ Nickel Mines Limited ▪Hengjaya Nickel Project ▪Ranger Nickel Project ▪Hengjaya Mine. ▪Definitive Agreement to (NIC) is an Australian (HNI). (RNI). ▪80% interest in acquire an 80% interes
Slide 6: Corporate snapshot
Corporate snapshot TRADING INFORMATION 4 MAY 2021 For personal use only 8.9% ASX Code NIC Directors and Management 18.6% Shares on Issue 2.515B Shanghai Decent 45.5% PT Karunia Bara Perkasa Share Price A$1.14 Blackrock Market Capitalisation A$2.87B Ballie Gifford 16.1% Other Indexes ASX All Ords / A
Slide 7: Significant value creation delivered through rapid production growth
Significant value creation delivered through rapid production growth Since its IPO in 2018, Nickel Mines has transitioned from a small-scale supplier of nickel laterite to a globally significant nickel producer with attributable nickel production of ~35 ktpa of nickel metal. For personal use only $1
Slide 8: Building a Nickel Empire - Introducing ANI
Building a Nickel Empire - Introducing ANI Nickel Mines will have operating footprints in what are predicted to be the world’s two largest nickel production centres For personal use only HALMAHERA IWIP ANI IMIP MOROWALI HNI & RNI HM MINE 6
Slide 9: Comparing IMIP and IWIP
Comparing IMIP and IWIP IMIP and IWIP are estimated to become the world’s two largest nickel production centres… For personal use only IMIP IWIP Steel production capacity 3Mt Stainless Steel per annum 12 operating RKEF lines RKEF lines Further RKEF lines planned and underway RKEF lines 36 operating
Slide 10: ANI overview
ANI overview For personal use only CAPITAL COST GUARANTEE - Not to exceed US$700M(3) - No cost overrun risk 380MW POWER PLANT FIRST PRODUCTION 4 NEXT GENERATION ANI DEVELOPMENT COST - “CAPTIVE” POWER RKEF LINES(1) CAPPED AT US$700M - ~20% SAVINGS ON POWER - Scheduled Q3 2022 COSTS(2) FIRST ACQUISITI
Slide 11: Proven commissioning and production expansion track record - ANI the next growth leg
Proven commissioning and production expansion track record - ANI the next growth leg The ANI acquisition continues Nickel Mines’ steady accumulation of nickel production capacity For personal use only Nameplate capacity set to double from 2022 (1) (2) Nameplate Attributable production above nameplat
Slide 12: Top nickel producer globally with scale, efficiency and expertise
Top 10 nickel producer globally with scale, efficiency and expertise ANI acquisition to add significant scale, while diversifying Nickel Mines’ geographic and production footprint NiEq Kt For personal use only 395 400 350 300 250 206 200 185 150 115 109 105 100 65 64 61 55 46 41 50 37 35 34 32 - Tsi
Slide 13: Angel Nickel - progress report
Angel Nickel - progress report Engineering, procurement and construction activities at Angel Nickel are progressing well. All material earthworks and plant footings now largely completed together with the fabrication of key long lead items including boilers, turbines and generators. For personal use
Slide 14: First quartile operating costs reflecting advantages of integrated production chain
First quartile operating costs reflecting advantages of integrated production chain Cost Advantages for Nickel Mine’s operations 16,000 For personal use only ▪ The IMIP and IWIP are estimated to be located in 15,000 the first quartile of the global nickel cost curve. 14,000 1st Quartile 2nd Quartile
Slide 15: Nickel Mines - NPI price payability versus LME nickel
Nickel Mines - NPI price payability versus LME nickel How does Nickel Mines get paid? LME nickel versus NPI prices since 2015(1) Recent nickel price strength has been driven by a number of ▪ Undertaking in place for Shanghai Decent to For personal use only US$/t Ni factors, including the demand purc
Slide 16: Taxation concessions
Taxation concessions By official decree of the Minister of Finance of the Republic of Indonesia. For personal use only Material tax concessions have been granted to both HNI and RNI. It is the intention for ANI to apply for these tax concessions in due course. 100% TAX EXEMPTION +2 Years WHT Free ▪
Slide 17: Hengjaya Mine – The Foundation Asset
Hengjaya Mine – The Foundation Asset For personal use only Location Licence Resource Mining ▪ Morowali Regency, Central ▪ IUP licence covering 5,983 ▪ Updated Resource released ▪ Geology de-risked by mining Sulawesi, Indonesia. hectares. in August 2020(1). activity to date. ▪ A large tonnage, high g
Slide 18: Operations Update
For personal use only OPERATIONS UPDATE 16
Slide 19: Financial Results
Financial Results (US$) Full year to March Qtr 2021 31 December 2020 Gross production 43,621.1 tonnes of nickel metal (100% basis) 10,067.5 tonnes of nickel metal (100% basis) For personal use only NIC attributable production 30,617.8 tonnes of nickel metal 8,054.0 tonnes of nickel metal Sales $523.
Slide 20: Record operational performance at HNI and RNI
Record operational performance at HNI and RNI * 16.5kt pa / 1,375t pm (Prospectus guidance) ^ 15.0kt pa / 1,250t pm (design capacity at HNI/RNI) For personal use only 1,375* 1,250^ ▪ RKEF production of 10,067.5 tonnes ▪ HNI Cash Costs US$8,725/t ▪ Record attributable production of 8,054.0 tonnes ▪ R
Slide 21: RKEF Operations – A solid start to 2021
RKEF Operations – A solid start to 2021…coming off a record December qtr HENGJAYA NICKEL January February March Quarter Total Dec Quarter For personal use only NPI Production tonnes 11,527.0 12,740.3 12,544.1 36,811.4 38.389.6 NPI Grade % 14.2 13.2 14.0 13.8 14.9 Nickel Metal Production tonnes 1,631
Slide 22: Hengjaya Mine – March Quarter Performance
Hengjaya Mine – March Quarter Performance Production summary January 2021 February 2021 March 2021 Quarter Total Dec 2020 Quarter For personal use only Tonnes mined Wmt 156,039 117,728 182,720 456,487 499,877 Overburden mined BCM 81,528 98,560 82,182 262,270 266,960 Limonite mined BCM 119,119 137,55
Slide 23: The Nickel Mines Story – Why Invest?
The Nickel Mines Story – Why Invest? For personal use only Strategic Partnership Established Tenant Leaders in Nickel Processing Consistent Production with Tsingshan within the IMIP/IWIP Technology Outperformance ▪ Partnership in multiple operating NPI ▪ Indonesia/IMIP/IWIP are the epicentres ▪ Tsin
Slide 24: Contacts
www.nickelmines.com.au For personal use only Robert Neale Peter Nightingale Chairman Director and Chief Financial Officer rneale@nickelmines.com.au pnightingale@nickelmines.com.au Norman Seckold Richard Edwards Deputy Chairman Company Secretary nseckold@nickelmines.com.au redwards@nickelmines.com.au
Slide 25: Thank You
For personal use only THANK YOU 23