Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2018 Earnings Presentation
31 slides from Nordic Mining Asa's earnings presentation, Feb 19, 2019
Slide 1: Q4 2018 Presentation
OAX: NOM Q4 2018 Presentation Oslo, 19 February 2019 Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com 1
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: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 4: Developing high-value assets in the Nordic Region
Developing high-value assets in the Nordic Region Pd Pt Platinum, Palladium Ti Engebø Rutile and Garnet (100%) Si Li High Purity Quartz Keliber Oy Lithium (19%) 4
Slide 5: Our purpose: Sustainable production of strategic minerals and metals
Our purpose: Sustainable production of strategic minerals and metals, creating long term value for society and shareholders 5
Slide 6: Denis Mukwege, winner of the Nobel peace price 2018
Denis Mukwege, winner of the Nobel peace price 2018 Congo is suffering from illegal mining and trade of Cobalt. You have a responsibility to contribute to sustainable sourcing of needed minerals. 6
Slide 7: Dam failures result in dramatic consequences for humans and the environment
Dam failures result in dramatic consequences for humans and the environment Vale’s tailings dam broke on 25 January in Minas Gerais, Brazil In an long-term perspective, most man-made tailing dams are at risk 7
Slide 8: Norway on tailings management
Norway on tailings management: The Norwegian Environment Agency has evaluated experiences and best practices regarding tailings management Conclusion: “It is unwise to prohibit sea disposal as they in many cases represent the most environmentally and safest solutions for disposal” Tailings dam at Ti
Slide 9: Norwegian parliament debating new act for seabed minerals
The Norwegian parliament is debating the proposal for a new act for exploration and production of seabed minerals “Exploration of seabed minerals may be an important industry for Norway. The minerals at the seafloor are critical for many of our future technologies.» 9
Slide 10: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 11: Consolidated Income Statement
Consolidated Income Statement Q4-2018 Q4-2017 2018 2017 Unaudited Unaudited Amounts in NOK million Unaudited Audited - - Sales - - (4.0) (2.7) Payroll and related costs (11.8) (10.9) - - Depreciation and amortisation (0.1) (0.2) (13.2) (6.4) Other operating expences (48.6) (25.2) (17.3) (9.1) Operat
Slide 12: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31.12.2018 31.12.2017 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.0 21.6 Property, plant and equipment 0.3 0.2 Investment in an associate 21.3 29.3 Total non-current assets 49.5 51.1 Cash 49.9 21.5 Other current as
Slide 13: Financing
Financing Rights issue • Rights issue of 17,391,304 shares at a subscription price of NOK 2.30 per share and gross proceeds of NOK 40.0 million successfully completed in November • The main purpose of the rights issue was to continue the development of the Engebø rutile and garnet project towards co
Slide 14: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 15: Engebø Rutile and Garnet
Engebø Rutile and Garnet Creating long-term regional employment, growth and development 15
Slide 16: Engebø Rutile and Garnet
Engebø Rutile and Garnet • Highlights • DFS status • Regulation • Operational license • Markets 16
Slide 17: Engebø progress highlights
Engebø progress highlights Ø Engagement of financial debt advisor on 30 January Ø HOA with Japanese trading house for rutile offtake and financing signed on 31 January Ø Application for operational license filed on 1 February Ø Framework for environmental monitoring filed to the Norwegian Environmen
Slide 18: Definitive Feasibility Study – main activities
Definitive Feasibility Study – main activities q Resource update q Mining Open Pit and Underground studies q Mining Open Pit Optimization schedule q Process Testwork q Engineering • Bulk test program q Procurement/bids • Validation program q Construction execution plan • Variability program q Capex
Slide 19: Infrastructure planning and engineering
Infrastructure planning and engineering Jan Feb Mar. April May June July Aug. Sept Oct. Nov. Dec, Details - 2019 Water Supply - Engineering for Regulation Plan √ - Detail Engineering - Procurement Power Supply - Engineering for Regulation Plan √ - Detail Engineering - Cost Estimate County Road - Fv6
Slide 20: Detailed regulation of water supply and mine site
Detailed regulation of water supply and mine site Jan Feb Mar. April May June July Aug. Sept Oct. Nov. Dec, Activities 2019 Skorven-Engebø water supply - Municipality hearing initiation - Public hearing (6 weeks) - Review of hearing comments - Municipality Review - Municipality Council – Approval Pr
Slide 21: Operational license filed on 1 February
Operational license filed on 1 February 21
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Slide 24: High grade TiO2 feedstock markets with increasing prices
High grade TiO2 feedstock markets with increasing prices Iluka: Rutile production in 2018 was down 22% to 122 kt, compared to 168 kt in 2017 New contract prices for natural rutile: Exceeding USD 1,100 for pigment and USD 1,300 for welding, up approx. 23% from 2018 Lomon Billions: Announcing price in
Slide 25: Garnet market suffers from unreliable supply
Garnet market suffers from unreliable supply • Garnet is the only viable medium for use in waterjet cutting • Consistency in quality is a key success factor, in particular for waterjet • Garnet for waterjet is the primary growth market in Europe • Supply situation out of India remains unclear and un
Slide 26: Tentative timeline towards production
Tentative timeline towards production 2017 2018 2019 2020 2021 2022 Timeline to production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Regulation plan Skorven - Engebø Detail regulation plan Engebø Operational License Definitive feasibility study Offtake agreements Enviro
Slide 27: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 28: Equity issue successfully completed
Equity issue successfully completed • On 15 February 2019, Keliber completed a share issue with total gross proceeds of EUR 10m • The proceeds will be used for pre-construction development work and financing preparations, i.a. IPO • Following the share issue, the state-owned company Finnish Minerals
Slide 29: Steady progress towards construction and production
Steady progress towards construction and production • Test work successfully completed demonstrating production of battery-grade lithium hydroxide • Technical and financial assessments of hydroxide scheme targeting DFS standard to be completed in Q1 2019 • If positive, production of hydroxide will o
Slide 30: Introduction, Financial status, Update on projects
1. Introduction 2. Financial status 3. Update on projects - Engebø, rutile and garnet - Keliber, lithium 4. Q&A
Slide 31: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 3 1