Nordic Iron Ore Ab · OMXSTO:NIO
Nordic Iron Ore Ab — IntierraRMG Mining on the Top 10th Anniversary Conference 2013
28 slides from Nordic Iron Ore Ab's conference presentation, Nov 26, 2013
Slide 1: Europe's next iron ore producer
Europe’s next iron ore producer IntierraRMG - Mining on the Top – Stockholm 10th Anniversary Conference 26-27 Nov 2013 1
Slide 2: Agenda
Agenda Introduction Investment highlights Financial information Conclusion 2
Slide 3: Nordic Iron Ore at a glance
Nordic Iron Ore at a glance Restarting Ludvika Mines – Blötberget – concession granted – Väsman field – under further exploration – Håksberg – concession granted A brownfield iron ore project Existing rail from mine to deep water port Environmental permit expected shortly Scoping study sho
Slide 4: Nordic Iron Ore - Project Update: Major Achievements 2013
Nordic Iron Ore - Project Up date Major Achievements 2013 New Scoping study Ludvika Mines - double production capacity Definite Feasibility Study - Phase 1 Blötberget commenced New Financier - State Investment Fund Inlandsinnovation AB Increase in mineral resources; + 180% LoI Oxelösund Po
Slide 5: Our targets
Our targets Production 4.3 Mtpa Production start coarse fines: Q3 2015 Start new beneficiation plant Q3 2016 Concentrate 67% Fe or better 5
Slide 6: Solid economics
Solid economics IRR 24 per cent Pay back period 5.4 years At least 15 year life of mine 6
Slide 7: Competitive cost level
Competitive cost level Competitive cash cost and premium product Fortescue USD 76/dmt /NIO 7
Slide 8: Investment highlights
Agenda Introduction Investment highlights Financial information Conclusion 8
Slide 9: One of Sweden's largest mineralisations
One of Sweden’s largest mineralisations Håksberg: Indicated 25 mt @ 36% Inferred 12 mt @ 36% Väsmans South mineralisation: Indicated 7 mt @ 39% Inferred 86 mt @ 38% Blötberget : Indicated 30 mt @ 45% Inferred 10 mt @ 43% 9
Slide 10: One of Sweden's largest iron mineralisations
One of Sweden’s largest iron mineralisations Håksberg: 3 Indicated 25 mt @ 36% Inferred 12 mt @ 36% Väsmans South mineralisation: Indicated 7 mt @ 39% Inferred 86 mt @ 38% Blötberget : Indicated 30 mt @ 45% Inferred 10 mt @ 43% 10
Slide 11: Expansion potential
Expansion potential 75000 MagTot (nt) 65000 55000 Targeting mineral resources in excess of 300mt N S 11
Slide 12: Beneficiation plant next to existing railway
Beneficiation plant next to existing railway 12
Slide 13: Processing plant and terminal in Skeppmora (Blötberget)
Processing plant and terminal in Skeppmora (Blötberget) Existing Rail Road: Bergslagsbanan Processing plant designed for expansion 13 1) mtpy = million tonnes per year
Slide 14: Existing logistics – Large Competitive Advantage
Existing logistics – Large Competitive Advantage Existing railway from mine to deep water port MSEK 900 (MUSD 130) committed by government for refurbishment of railway All year ice free port Baby Cape/Panamax capacity LoI signed with Oxelösund port 14
Slide 15: Integrated scaleable project
Integrated scaleable project Development in three phases 15
Slide 16: Low development risk
Low development risk Scalable project Experienced team Existing mine infrastructure
Slide 17: Product price premium
Product price premium High quality product 67% Fe Concentrate 17
Slide 18: High quality product
High quality product NIO will produce high quality pellet fines (possibility to produce sinter fines), expected to Comparison of average % Fe yield premium pricing 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Resources Fortescue Dannemora (fines) Kumba Cleveland Cliffs BHP Northern Iron Vale Dannemora
Slide 19: Risk mitigation
Risk mitigation Construction risk and process risk greatly reduced due to: 1 Complete DFS before final investment decision 2 Experienced project management team 3 Detailed planning and close monitoring of schedule 4 Focus on cost control and follow up systems 5 Professional procurement with close mo
Slide 20: Risk mitigation – separate project organisation
Risk mitigation – separate project organisation Project director Exploration Procurement & Controller quality Production Economy & finance Planning HSE CEO Logistics HR Marketing and sales Blötberget Väsman Environment Håksberg Skeppmora 20
Slide 21: Project development schedule
Project development schedule - Key milestones Investment decision, Financing & Organisational build up Construction Phase 1 Beneficiation start DFS-Phase 1 Installation & commissioning & ramp up 2013 2014 2015 2016 2017-2021 Environmental permit B+H • Phase 1 Blötberget – viable stand alone project:
Slide 22: Financial information
Agenda Introduction Investment highlights Financial information Conclusion 22
Slide 23: Attractive economics
Attractive economics Exemple calculation at full production, USD/t Assumed long term price (62% Fe) 120 Premium (67% Fe) +15 Freight –24 FOB 111 OPEX* -52 OH-cost -1 Financing cost** -10 Margin 48 *During the first 2 years OPEX will be higher ** Financing cost should be lower after ≈ 5 years
Slide 24: Capex incl DFS and production ramp-up
Capex incl DFS and production ramp-up (Pre financing cost and pre tax) Second fund raise only after production start Phase I Revenue from Q3 2015 Gradual ramp up of logistics chain Large part of Capex financed internally - external need MUSD 306 200 For Phase Ia Phase I-III Internally financ
Slide 25: Key figures
Key figures Targeting a 4.3 Mtpa operation OPEX 51.5 USD/t CAPEX to full production USD 678 million Pay back period ≈ 5.4 years NPV (@ 8.0%) USD 952million IRR 24%mine at
Slide 26: Conclusion
Agenda Introduction Investment highlights Financial information Conclusion 26
Slide 27: Conclusion
Conclusion 1 Large mineralization with expansion potential 2 High quality product 3 Low development risk 4 Very competitive OPEX and existing logistics 27
Slide 28: Thank you
Thank you www.nordicironore.se
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