Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2021 Earnings Presentation
23 slides from Nordic Mining Asa's earnings presentation, Feb 8, 2022
Slide 1: Q4 2021 Interim Presentation
Large deposit with unique location All major permits in place Minerals for a sustainable future Preparing for construction EN Expand Oslo: NOM Valuable investment in lithium Q4 2021 Interim Presentation February 8, 2022
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 – Lithium 4. Financial update 5. Q & A 3
Slide 4: Sustainable production of high-end industrial minerals and metals
Sustainable production of high-end industrial minerals and metals Rutile (Titanium dioxide) • Environmentally friendly pigment • Air cleaning surface materials • Aircrafts and aerospace • Health applications Garnet Engebø Rutile (TiO2) and Garnet • Health and environmentally (100%) friendly cutting
Slide 5: R & D opens new avenues for the mineral industry
R & D opens new avenues for the mineral industry Alumina Battery production • Qualification of patented technology for green alumina • Multi discipline research project production with integrated CO2 with focus on critical steps of big consumption scale battery manufacturing. Partners: Partners: Fun
Slide 6: Q4 2021 Highlights and YTD 2022
Q4 2021 Highlights and YTD 2022 ➢ First project financing equity for Engebø secured from local investors ➢ Lump-sum contracts with all EPCs for Engebø construction signed ➢ Revised waste disposal permit confirmed by the Ministry of Climate and Environment ➢ Titanium and Lithium markets remain strong
Slide 7: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 7
Slide 8: Preparing for Engebø construction
Preparing for Engebø construction Long-term sustainable mineral production for employment and value for stakeholders and society 8
Slide 9: De-risking project execution
De-risking project execution… EPC 1 EPC 2 EPC 3 EPC 4 Site wide Civil work and Structural, Electro, control earthworks and buildings mechanical, plating system and tunneling & piping, instrumentation underground comminution …lump-sum agreements signed with all EPC partners 9
Slide 10: Focus on project management and execution
Focus on project management and execution Mr. Terje Gundersen engaged as Project Director Gundersen holds a Master of Science in Industrial Economics with specializations in contract administration and project management from the University of Stavanger. He has broad experience from industry and con
Slide 11: Building the project management team
Building the project management team Project Director Terje Gundersen Environment Process & Production Hiring process Hiring process Cost & Admin Technical & Maintenance Kaja Døssland Hiring process Procurement & Logistics Operation Readiness Siri Merete Olsen Kenneth Nakken Angedal Planning QHSE Jo
Slide 12: Ambitious goals for sustainable production
Ambitious goals for sustainable production Our goals are based on the UN Sustainability Goals A comprehensive Environmental and Social Management System(“ESMS”) is in progress, including: Minimize climate impact • A Construction Environmental Management Plan will be completed Q1 2022 to ensure adher
Slide 13: Preparing for start of construction
Preparing for start of construction • Revised waste disposal permit granted by The Ministry of Climate and Environment in November 2021, reducing overall use of chemicals by 99% • Building permit granted by the municipality presidency on January 20, to be finally resolved by the municipality board o
Slide 14: Long-term rutile price expectations increase
Long-term rutile price expectations increase Rutile • Bulk rutile prices continued to increase in Q4 of 2021 as the pigment market remained strong and feedstock demand continuing to exceed supply. • Tight supply has limited pigment producers from rebuilding inventories resulting in inventory levels
Slide 15: NOK 132.5 million project financing secured for Engebø
NOK 132.5 million project financing secured for Engebø • Investment led by two of EPC partners for Engebø Project together with local Sunnfjord investors • Industrial validation by EPCs that will deliver the project and confirmation of local support • Investment structured as a loan with conversion
Slide 16: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 16
Slide 17: Lithium prices continue to rally
Lithium prices continue to rally LME Lithium Hydroxide Future - 15 months (Fastmarkets MB)1 • Electric Vehicles (EVs) sales increased by 160% in 2021, with deliveries in China expected to double in 44 000 2022 • Lithium hydroxide futures with delivery in end-April 42 000 2023 have increased 30% in 2
Slide 18: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 18
Slide 19: Fully funded for continuation of the Engebø project
Fully funded for continuation of the Engebø project The Group’s balance sheet remains solid: o NOK 32 million in cash - Net cash outflow from operations of NOK 15.7 million in Q4, reflecting pre-construction work - NOK 18 million spend on pre-construction in 2021, of which most is deductible towards
Slide 20: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 20
Slide 21: Q&A
Q&A ➢ First project financing equity for Engebø secured from local investors ➢ Lump-sum contract with all EPCs for Engebø construction signed ➢ Revised waste disposal permit confirmed by the Ministry of Climate and Environment ➢ Titanium and Lithium markets remain strong
Slide 22: Appendix #1 Consolidated income statement
Appendix #1 Consolidated income statement Q4-2021 Q4-2020 Acc.2021 2020 Unaudited Unaudited Amounts in NOK million Unaudited Audited - - Sales 0.0 - (3.8) (4.2) Payroll and related costs (16.2) (14.4) (0.0) (0.1) Depreciation and amortization (0.1) (0.2) (12.1) (7.5) Other operating expenses (44.5)
Slide 23: Appendix #2 Consolidated statement of financial position
Appendix #2 Consolidated statement of financial position 31.12.2021 31.12.2020 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.8 28.3 Property, plant and equipment 0.2 0.4 Right-of-use assets 0.2 0.4 Financial investments 190.5 100.1 Total non-current assets 219.