Nickel Industries Limited · ASX:NIC
Nickel Industries — Nickel Mines — BMO Global Metals & Mining Conference 2021
23 slides from Nickel Industries's conference presentation, Mar 3, 2021
Slide 1: Presentation to BMO Conference
ABN 44 127 510 589 Level 2, 66 Hunter Street Sydney NSW 2000 Australia T: +61 2 9300 3311 F: +61 2 9221 6333 E: info@nickelmines.com.au 3 March 2021 The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000 (23 pages by email) PRESENTATION TO BMO CONFERENCE Nickel Mines Limited is pleased t
Slide 2: A New Force in Global Nickel
A NEW FORCE IN GLOBAL NICKEL BMO Global Metals & Mining Conference March 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 purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The informa
Slide 4: This Is Not a Mining Story
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. MINING STORY 2
Slide 5: Nickel Mines – Who are we?
Nickel Mines – Who are we? IMIP IMIP MOROWALI IWIP NIC HNI RNI HM ANI ASX 80% 80% 80% 30% ▪ 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% interest in company publicly
Slide 6: Corporate snapshot
Corporate snapshot TRADING INFORMATION 26 FEBRUARY 2021 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$1.40 Blackrock Market Capitalisation A$3.52B Ballie Gifford 16.1% Other Indexes ASX All Ords / ASX 300/ MSCI 5.2
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. $1.60 Market Cap A$3.5B
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 HALMAHERA IWIP PT ANI IMIP MOROWALI 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… IMIP IWIP Steel production capacity 3Mt Stainless Steel per annum 8 operating RKEF lines RKEF lines Further RKEF lines planned and underway RKEF lines 36 operating RKEF lines Power capaci
Slide 10: ANI overview
ANI overview 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 ACQUISITION US$210M (Q1 2021)(3
Slide 11: Proven commissioning and production expansion track record
Proven commissioning and production expansion track record - ANI the next growth leg The ANI acquisition continues Nickel Mines’ steady accumulation of nickel production capacity Nameplate capacity set to double from 2022 (1) (2) Nameplate Attributable production above nameplate ANI illustratively a
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 395 400 350 300 250 206 200 185 150 115 109 105 100 65 64 61 55 46 41 50 37 35 34 32 - Tsingshan Tsingshan and N
Slide 13: First quartile operating costs reflecting integrated production chain
First quartile operating costs reflecting advantages of integrated production chain Cost Advantages for Nickel Mine’s operations 16,000 ▪ 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 3rd Quartile 4th Quar
Slide 14: Benefiting from superior NPI payabilities
Benefiting from superior NPI payabilities How does NIC get paid? ▪ Nickel Mines enters into NPI sales contracts with various Tsingshan group companies. ▪ An NPI sales price is quoted based on publicly available third-party reference prices (established in China) with adjustments made for: o Individu
Slide 15: Taxation concessions
Taxation concessions By official decree of the Minister of Finance of the Republic of Indonesia. 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 ▪ 100% Corporate Income
Slide 16: Hengjaya Mine – The Foundation Asset
Hengjaya Mine – The Foundation Asset 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 grade, ▪ 20-year mining
Slide 17: Operations Update
NICKEL MINES LIMITED. OPERATIONS UPDATE
Slide 18: December Quarter Headline Results
December Quarter Headline Results (All figures in US$) Record gross production 11,527 tonnes of nickel metal (100% basis) +7.7% from 10,699.9 tonnes in Sept Qtr Record NIC attributable production 9,221.6 tonnes of nickel metal +7.7% from 8,559.9 tonnes in Sept Qtr (1) Record RKEF sales $158.8M (100%
Slide 19: 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) 1,375* 1,250^ ▪ Record December quarter RKEF production of 11, 527 tonnes ▪ December quarter HNI Cash Costs US$7,612/t ▪ Attributable production of 9,221.6
Slide 20: FY 2020 Financial Results
FY 2020 Financial Results (All figures in US$) 12 months to 6 months to 31 December 2020 31 December 2019 Sales Revenue $523.5M $236.1M Gross Profit $165.1M $83.4M Operating Profit $157.7M $80.8M Profit after tax $153.7M $91.3M EBITDA $197.1M $97.2M 43,421 tonnes (30,618 tonnes attributable) of nick
Slide 21: Hengjaya Mine – 2020 Full Year Performance
Hengjaya Mine – 2020 Full Year Performance Production summary March 2020 Qtr June 2020 Qtr September 2020 Qtr December 2020 Qtr Total Tonnes mined Wmt 149,958 62,610 158,058 499,877 870,503 Overburden mined BCM 142,250 155,852 200,439 266,960 797,740 Limonite mined BCM 41,750 87,069 240,589 294,717
Slide 22: The Nickel Mines Story – Why Invest?
The Nickel Mines Story – Why Invest? Strategic Partnership Established Tenant RKEF Processing Consistent Production with Tsingshan within the IMIP Technology Outperformance ▪ Partnership in multiple (HNI and RNI) ▪ Indonesia/IMIP are the epicentre of ▪ Tsingshan has pioneered RKEF ▪ Monthly output c
Slide 23: Contact
www.nickelmines.com.au 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 Cameron Peacock Justi
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