Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q3 2020 Earnings Presentation
22 slides from Nordic Mining Asa's earnings presentation, Nov 3, 2020
Slide 1: Minerals for a sustainable future
Well funded Large deposit with unique location Minerals for a sustainable future All major permits in place OAX: NOM Valuable investment in lithium Q3 2020 Presentation November 3, 2020
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. Introduction 2. Engebø Rutile and Garnet 3. Keliber Oy Lithium 4. Financial update 5. Q & A 3
Slide 4: European supply of high-end industrial minerals
European supply of high-end industrial minerals Rutile • Environmentally friendly pigment • Air cleaning surface materials • Energy efficient air transportation • Health applications Garnet • Health and environmentally friendly cutting and blasting Engebø Rutile material (TiO2) and Garnet (100%) Lit
Slide 5: World class assets nearing construction
World class assets nearing construction Engebø – Rutile and Garnet (100%) • Post-tax NPV@ 8% of USD 344m and IRR 20% • Payback <5 years from start of production • Life of Mine of 42 years, with substantial resources for future extension • All major permits granted Engebø Rutile • Heads of Agreement
Slide 6: Titanium and Lithium are widely used in critical ecosystems
Titanium and Lithium are widely used in critical ecosystems Energy Aerospace/ Mobility/ intensive Renewable Electronics Health Construction defense Automotive industries energy Titanium Lithium Source: European Institute of Innovation and 6 Technology (EIT) Raw Materials
Slide 7: Titanium and Lithium added to the list of Critical Raw Materials
Titanium and Lithium added to the list of Critical Raw Materials September: EU Commission announces actions on Critical Technologies and sectors from the 2030 and 2050 perspectives. The List of Critical Raw Materials has been updated to reflect economic importance and supply challenges. Titanium and
Slide 8: ESG at the core of Nordic Mining’s corporate strategy
ESG at the core of Nordic Mining’s corporate strategy Take climate responsibility • Company’s ESG goals are based on the United Nation’s sustainable development goals • Our goals are integrated in our Project development in accordance with high international standards Reduce environmental footprint
Slide 9: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber Oy Lithium 4. Financial update 5. Q & A 9
Slide 10: Rutile prices stable - positive interest for garnet
Rutile prices stable - positive interest for garnet • Rutile prices remain stable and well above the long-term price assumption used in the DFS study, despite reduced demand • Chinese pigment market has recovered after the initial pandemic impact, with strong demand from the household sectors • Majo
Slide 11: DFS update progressing - reducing CAPEX
DFS update progressing - reducing CAPEX • Engineering firm Hatch is engaged to coordinate the DFS update with Axe Valley Mining on mine design and modelling • Early engagement with selected suppliers on infrastructure and civil works has provided new and effective solutions indicating material reduc
Slide 12: Simplified contracting strategy - reducing execution risk
Simplified contracting strategy - reducing execution risk Electro, control and Instrumentation • Moving to fit-for-purpose stick-built construction • Focus on bundling equipment Process plant packages • Few, larger EPC contracts • Reduced EPCM scope in combination with sub-EPCs Buildings Civil and e
Slide 13: Mature project with clear plan to construction
Mature project with clear plan to construction Definitive Feasibility Value Engineering indicates Financing for project Study confirms Engebø potential for considerable construction as a world class rutile reduction in initial capital (timeline for financing can and garnet project expenditure vary 1
Slide 14: Environmental and Social Performance - key to success
Environmental and Social Performance - key to success Main targets for Environmental and Social Performance: o Design for energy efficiency o Minimize climate impact by electrification o Minimize and substitute chemicals o Increase stakeholder engagement o Reduce footprint through waste reduction an
Slide 15: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber Oy Lithium 4. Financial update 5. Q & A 15
Slide 16: EV production drives demand for lithium
EV production drives demand for lithium • Lithium prices starting to rebound, inventories reduced • European EV manufacturers to become world leaders in 2021 • Keliber in process to raise EUR 30 million to finance development and early works in 2021 and 2022 • Positive interest from investors; expec
Slide 17: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber Oy Lithium 4. Financial update 5. Q & A 17
Slide 18: Fully financed for the ongoing DFS update and further into 2021
Fully financed for the ongoing DFS update and further into 2021 Financial status as of Q3: ▪ The Group’s balance sheet remains solid: o NOK 49.5 million in cash o Net cash outflow NOK 7.5 million, down from NOK 11.7 million in Q2 o Financial asset of NOK 87.6 million in Keliber Oy o No interest-bear
Slide 19: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber Oy Lithium 4. Financial update 5. Q & A 19
Slide 20: Q & A
Q&A DFS update progressing according to plan Indication of material reduction of CAPEX based on work to date Discussions with potential offtake partners on garnet Fully financed for the ongoing DFS update and further into 2021 20
Slide 21: Appendices - Consolidated income statement
Appendices Consolidated income statement Q3-2020 Q3-2019 Acc.2020 Acc.2019 2019 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Sales - - - (3.9) (4.2) Payroll and related costs (10.2) (11.4) (15.5) (0.1) - Depreciation and amortization (0.2) (0.1) (0.2) (2.1) (17.1) Other
Slide 22: Appendices - Consolidated statement of financial position
Appendices Consolidated statement of financial position 30.09.2020 31.12.2019 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 26.5 26.1 Property, plant and equipment 0.4 0.5 Right-of-use assets 0.0 0.1 Financial assets 87.6 90.8 Total non-current assets 114.4 117.5