Nickel Industries Limited · ASX:NIC
Nickel Industries — Nickel Mines — Diggers & Dealers Mining Forum 2019
30 slides from Nickel Industries's conference presentation, Aug 5, 2019
Slide 1: Presentation to Investors (ASX cover letter)
ABN 44 127 510 589 Level 2, 66 Hunter Street Sydney NSW 2000 Australia T: +61 2 9300 3311 F: +61 2 9221 6333 E: info@nickelmines.com.au 5 August 2019 The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000 (30 pages by email) PRESENTATION TO INVESTORS I attach a PowerPoint presentation be
Slide 2: Emerging as a Globally Significant Nickel Producer
NICKEL emercine.AS.A GLOBALLY SIGNIFICANT NICKEL PRODUCER a MINES@elV| TED DIGGERS & DEALERS - KALGOORLIE AUGUST 2019
Slide 3: Disclaimer
NICKEL DISCLAIMER MINES LIMITED This presentation has been prepared by Nickel Mines Limited (ABN 44 127 510 589) (‘NIC’). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that
Slide 4: Executive Summary
EXECUTIVE SUMMARY EMERGING AS A GLOBALLY SIGNIFICANT NICKEL PRODUCER Nickel Mines Limited (NIC) is an Australian company publicly listed on the ASX. AS200M IPO completed on 20 August 2018. NIC holds an 80% interest in PT Hengjaya Mineralindo (PTHM) which holds 100% of the Hengjaya Nickel Mine (HM).
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT Shareholder Structure ASX Code NIC Shares on Issue 1.525.5B 1.665.4B Share Price AS0.55 AS0.55 Range A$0.22-A$0.585 20 August 2018 - 2 August 2019 * Dire Management # Shanghai Decent» Blackrock Shanghai Regal = Other ee a “ Shanghai Decent (SDI) 10.6% 18.1% Bell Potter Target Pric
Slide 6: Hengjaya Mine: The Foundation Asset
HENGJAYA MINE THE FOUNDATION ASSET LOCATION + Morowali Regency, Central Sulawesi, Indonesia. = Alarge tonnage, high grade, open-cut mine in MAKASSAR | close proximity to IMIP. ) LICENCE Mahalona @ = IUP licence covering 6,249 s hectares. = 20 year mining operation/ production licence with a further
Slide 7: This Is Not a Mining Story
While we own a world class nickel laterite mine... THIS IS NOT A MINING STORY It’s a story about the production of the most profitable nickel units in the global market in partnership with the world’s largest stainless steel producer
Slide 8: Introduction to Tsingshan, SDI and IMIP
INTRODUCTION TO TSINGSHAN, SDI and IMIP TSNGSHa? Currently the world’s largest stainless steel producer with output of 9.29 Mt in 2018. Established a clear early mover advantage in building in-country processing capacity within Indonesia. Arecognised global leader in RKEF processing technology to pr
Slide 9: Improving outlook for stainless steel and battery nickel demand
Underpinned by an improving outlook for stainless steel and an exponentially increasing battery market for Electric Vehicles, nickel demand is expected to grow by 2- 3% pa over the medium to longer term. With supply not forecast to keep pace with demand, the nickel market returned to deficit in 2016
Slide 10: Nickel market deficit outlook
Underpinned by an improving outlook for stainless steel and an exponentially increasing battery market for Electric Vehicles, nickel demand is expected to grow by 2- 3% pa over the medium to longer term. With supply not forecast to keep pace with demand, the nickel market returned to deficit in 2016
Slide 11: Supported by World Class Facilities & Infrastructure
SUPPORTED BY WORLD CLASS FACILITIES & INFRASTRUCTURE
Slide 12: Hengjaya Mine: Nickel Location Is Everything
HENGJAYA MINE NICKEL LOCATION IS EVERYTHING WINES IMITED ETE BETE CENTRAL PIT © ws HM JETTY : - PT. HM IUP = ULTRA MAFIC AREA ‘2 Sn ll
Slide 13: What Does Nickel Mines Benefit From by Partnering with Tsingshan?
WHAT DOES NICKEL MINES BENEFIT FROM BY PARTNERING WITH TSINGSHAN? 12
Slide 14: Plant Capacity, Capital Cost and Cost per tonne Nickel Equivalent
PROJECT PLANT NICAPACITY (Ktpa) CAPITAL COST COST/t NiEq (UssM) (uss) QUARTILE 2 QUARTILE Murrin Murrin 1999 1,700 42,500 Ravensthorpe 2007 3,000 75,000 VNC (Goro) 2010 6,000 100,000 Ambatovy 2012 5,500 91,667 Koniambo. 2013 6,300 105,000 Onca Puma 2011 3,200 61,538 Barro Alto 2011 1,900 47,500 Ramu
Slide 15: Superior NPI Payabilities
SUPERIOR NPI PAYABILITIES 110% 100% 90% 80% 70% 60% 50% NICKEL MINES LIMITED Superior Payabilities Underpin a Compelling Economic Advantage for NPI Producers NPI payabilities typically range from > 90% to a small premium to LME veg cil Concentrate payabilities typically range from 65% to 75% of LME
Slide 16: Tax Concessions
NICKEI MINES LI By official decree of the Minister of Finance of the Republic of Indonesia material tax concessions have been granted to both HNI and RNI. = 100% Corporate Income Tax Reduction for 7 years commencing from the year of commercial production. = Plus an additional 2 Years Corporate Incom
Slide 17: The Current State of Play
THE CURRENT STATE OF PLAY 16
Slide 18: Hengjaya Nickel Now Producing Above Nameplate Capacity
HENGJAYA NICKEL NOW PRODUCING ABOVE NAMEPLATE CAPACITY Commissioning of both RKEF lines continues to ramp up to a steady state production and operating cost profile. NPI Production 11,320.5 11,251.1 31,256.4 NPI Grade % . 13.4 14.0 14.0 Nickel Metal Production tonnes 1,518.1 1,578.8 4,386.3" IMIP NP
Slide 19: Hengjaya Nickel: A Seamless Ramp-Up
HENGJAYA NICKEL NICKEL A SEAMLESS RAMP-UP HINES LIMITED Hengjaya Nickel - Commissioning ramp-up mmm Kiln#1 mamKkiln#2 —=Cash Costs 1,578.8 7,648 1,518.1 7,601 (16.5kt pa) 1,200 Cash Costs (USD/T) 2 3 é S es € 2 i 2 S = g 3 g zg 2 February
Slide 20: Ranger Nickel Now Commissioning
RANGER NICKEL NICKEI NOW COMMISSIONING ; MINES LI Kiln #1 commenced commissioning on 31 May 2019 with Kiln #2 coming on line a month later on 29 June 2019. Commissioning of both RKEF lines continues to ramp up to a steady state production and operating cost profile. NPI Production NPI Grade % Nickel
Slide 21: Ranger Nickel Commissioning Ramp-Up
RANGER NICKEL NICKEL NOW COMMISSIONING FINES LIMITED Ranger Nickel - Commissioning ramp-up mKiln #1 mw Kiln #2 o 3 2 § 2 € a o 2 5 > & 2 2 2 June July Ranger Nickel’s ramp-up in production is expected to be consistent with that of Hengjaya Nickel
Slide 22: Ranger Nickel: Increasing Interest to 60%
RANGER NICKEL NICKEL INCREASING INTEREST TO 60% ae y, = Acquisition to be completed via a ~US$160M financing package comprising: o tobe provided by Shanghai Decent. ~137.5M new shares issued at $0.40. Strongly supported by new and existing institutional and sophisticated investors. Shanghai Decent e
Slide 23: Why Invest?
WHY INVEST? 22
Slide 24: Unique Growth Nickel Optionality
UNIQUE GROWTH NICKEL OPTIONALITY A Clear Line of Sight on Additional Nickel Units 35,000 = HNI = RNI 30,000 NIC distinguishes itself from its peer group with its unique growth optionality. 25,000 tionality NIC possesses contractual options to increase its ownership interests in 20,000 both the HNI a
Slide 25: Compelling Nickel Economics
COMPELLING NICKEL ECONOMICS A Clear Line of Sight on Strong EBITDA and FCF Growth 35,000 =RNI 30,000 . a Industry leading payabilities for contained nickel in NPI. 25,000 Bottom quartile cost profile underpinned by: 20,000 © Ability to utilise low-cost, high grade nickel laterite ore. o Access to ab
Slide 26: Nearly Year On....
Nearly 1 Year On.... $0.55 = 60% interest in HNI and RNI Both Projects in production within 12 months of breaking ground HNI production run rate well in excess of nameplate capacity Material income tax concessions for HNI and RNI MOU to supply limonite ore to IMIP’s HPAL plant 80% interest in HM min
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS WORLD CLASS NICKEL RESOURCE JORC compliant resource with significant extension potential. o 37.5M dmt at 1.81% nickel (1.5% COG) for ~680k tonnes contained nickel.’ © 180M dmt at 1.30% nickel (1.0% COG) for ~2.3M tonnes contained nickel? Ability to supply RKEF plant for 30+ yea
Slide 28: Investment Thesis
INVESTMENT NICKEL THESIS MINES LIMITED Indonesia is now the epicentre of global nickel supply growth. = If you want nickel exposure you need to be invested in this region. NPI is the now the most prevalent source of new nickel supply. = While NPI is currently predominantly consumed by the stainless
Slide 29: PETER WEI LE
“ Peter Wei le 73 Directoumicy Manca Pres
Slide 30: Statement of Compliance
NICKEL STATEMENT OF MINES LIMITED COMPLIANCE The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by the staff and contractors of Nickel Mines Limited and its subsidiaries and approved by Mr Brett Gunter, a Member of the Australasi