Alliance Nickel Limited · ASX:AXN
Alliance Nickel — Investor Presentation (May 2023)
23 slides from Alliance Nickel's investor presentation, May 1, 2023
Slide 1: NiWest Project
NiWest Project Australia’s next nickel and cobalt producer Investor Presentation | May 2023
Slide 2: Important Disclaimer
IMPORTANT DISCLAIMER This presentation has been prepared by Alliance Nickel Limited (“Alliance”) and consists of written materials/slides for a presentation concerning Alliance. This presentation is a summary only which is current at the date of this presentation. By reviewing/attending this present
Slide 3: NiWest – a future battery-grade nickel and cobalt supplier
NiWest – a future battery-grade nickel and cobalt supplier Targeting the start of project construction in 2024 • NiWest is one of the highest-grade undeveloped nickel laterite mineral resources in Australia (and grade is king!) • Strategically located next to Australia’s largest nickel-cobalt operat
Slide 4: Cornerstone investment and offtake with Stellantis
Cornerstone investment and offtake with Stellantis Strategic partnership and long-term nickel and cobalt supply contract Stellantis is a leading global automaker with an iconic brand portfolio including Jeep, RAM, Chrysler, Maserati, Alfa Romeo, Fiat and Peugeot • Partnership follows extensive techn
Slide 5: Offtake strategy tied to project funding and development
Offtake strategy tied to project funding and development One of the world’s leading automakers Vietnam’s largest private conglomerate Global battery and car makers Binding offtake agreement and $15M Framework agreement for future offtake Offtake and financing discussions cornerstone equity investmen
Slide 6: Global nickel demand growth: the future is batteries
Global nickel demand growth: the future is batteries • EV batteries demand will drive a structural change in nickel demand by 2030 • Battery manufacturing to account for 40% of nickel consumption by 2040 • Rising demand for EVs is forcing automakers to secure reliable long-term nickel supply to supp
Slide 7: Importance of the Inflation Reduction Act (IRA) to the EV industry
Importance of the Inflation Reduction Act (IRA) to the EV industry The IRA transforms the choice between an EV and internal combustion engine by using U.S. government tax credits to incentivise auto makers to switch to EV manufacturing In order for a vehicle manufacturer to receive generous tax cred
Slide 8: Management and DFS team
Management and DFS team • Chemical Engineer and Member of the Australian Institute of Company Directors • Over 25 years of leadership experience in the Australian and international resources industry Chief Executive • Direct experience in nickel laterites having been involved in development of the B
Slide 9: A Tier 1 critical mineral inventory
A Tier 1 critical mineral inventory Uncomplicated geology with large resource and scalability Global Resource (0.8% Ni cut-off): 85Mt at 1.03% Ni and 0.07% Co • Large, shallow and flat lying structures 878kt nickel and 55kt cobalt (~80% in M&I categories) • Mineralisation near surface and typically
Slide 10: Simple, low cost mining near existing infrastructure
Simple, low cost mining near existing infrastructure Ideal mining scenario – shallow, free dig with low strip ratio • Relatively flat lying sheets of shallow mineralisation • Low life-of-mine strip ratio (2.0:1) • Soft, free dig ore with no/minimal blasting requirements • Conventional truck and shov
Slide 11: Located near the nickel laterite capital of Australia
Located near the nickel laterite capital of Australia Well serviced mining province with +20 years of Ni-Co operations including commercial Ni-Co heap leach at Murrin Murrin “Glencore’s Murrin incentivize mine is now becoming one of the company’s flagship battery metals producers, with the cobalt it
Slide 12: Heap leach processing – a competitive advantage
Heap leach processing – a competitive advantage Unique ore characteristics deliver absolute lower capital costs when compared to HPAL • Alliance commenced Heap Leach (HL) assessment / metallurgical test work in 2007 • Results of PFS show materially lower capital-cost relative to alternate process of
Slide 13: Murrin Murrin heap leach operation (2007 – 2012)
Murrin Murrin heap leach operation (2007 – 2012) A directly comparable nickel laterite heap leach operation which successfully operated within 20km of NiWest 12
Slide 14: Strategy to produce Class 1 nickel and cobalt sulphates
Strategy to produce Class 1 nickel and cobalt sulphates Nickel and cobalt sulphates are important materials for cathodes in the new generation of clean energy and EV battery technologies Battery makers require Ni and Co metal to be supplied as salts, usually By producing directly to nickel and cobal
Slide 15: Updated PFS highlights (July 2022)
Updated PFS highlights (July 2022) Confirms robust financial returns in the current cost environment Financial metrics (all USD unless stated) 2022 Updated PFS • Long life operation with +25 year mine life Macro assumptions • Nickel Sulphate annual production: 90,000 tons (99.95% purity) LME nickel
Slide 16: Future catalysts to drive shareholder value to end of Year
Future catalysts to drive shareholder value to end of Year Event Target Date Status Grant of Mining Leases Mar 2005 ✓ Pre Feasibility Study (PFS) Completed Aug 2018 ✓ Updated NiWest PFS outcomes Jul 2022 ✓ Sign Non-Binding MOU with VinES Feb 2023 ✓ Commence debt discussions (banks, government, credi
Slide 17: Compelling leverage to nickel and cobalt battery inputs
Compelling leverage to nickel and cobalt battery inputs An advanced asset of scale in a first-class mining region • Mine life of +25 years • High-grade Resource on granted Mining Leases Ore properties deliver a competitive advantage to nickel laterite peers • Heap leach processing confirmed by exten
Slide 18: Contact
CONTACT Head office: Level 1, Suite 1.02 45 Stirling Highway Nedlands WA 6009 Postal address: PO Box 39 West Perth WA 6872 Phone: +61 8 6182 2718 Email: info@alliancenickel.au
Slide 19: Appendices
Appendices Investor Presentation | May 2023
Slide 20: An experienced Board
An experienced Board Previous experience • Has been involved in management and strategic development of resource companies and projects for Non- Peter more than 20 years Executive Sullivan • Also a director of Zeta Resources Limited and Panoramic Resources Limited Chairman • Chair of Remuneration Co
Slide 21: Mineral Resource Estimate (0.8% nickel cut-off)
Mineral Resource Estimate (0.8% nickel cut-off) Deposit Tonnes (million) Nickel Grade (%) Cobalt Grade (%) Nickel Metal (kt) Cobalt Metal (kt) Eucalyptus¹ 36.5 1.01 0.061 368 22.4 Hepi¹ 4.5 1.06 0.075 48 3.4 Mt Kilkenny¹ 26.0 1.08 0.069 279 17.9 PFS Total* 67.0 1.04 0.065 695 43.6 Mertondale² 1.9 0.
Slide 22: Ore Reserve Estimate (at 0.5% Ni cut-off)
Ore Reserve Estimate (at 0.5% Ni cut-off) JORC Orebody Tonnes (million) Nickel Grade (%) Cobalt Grade (%) Classification Eucalyptus Probable 32.2 0.87 0.05 Hepi Probable 4.7 0.91 0.06 Mt Kilkenny Probable 27.9 0.96 0.06 Total* Probable 64.9 0.91 0.06 Initial 27 year operation including average head
Slide 23: Competent Person’s Statement
Competent Person’s Statement Where Alliance refers to the NiWest Mineral Resource Estimate and the NiWest Ore Reserve Estimate, as disclosed in an ASX market release on 2 August 2018 and titled “Pre-Feasibility Study Delivers Outstanding Results”, it confirms that it is not aware of any new informat