Nickel Industries Limited · ASX:NIC
Nickel Industries — Nickel Mines — 28th BMO Capital Markets Global Metals & Mining Conference 2019
33 slides from Nickel Industries's conference presentation, Feb 25, 2019
Slide 1: BMO Conference Presentation ASX cover letter
ABN 44 127 510 589 Level 2,, 66 Hunter Stre eet Sydney NSW 2000 Ausstralia For personal use only T: +61 2 9300 3311 F: +61 2 9221 6333 E: info@ @nickelmines.co om.au 25 Februarry 2019 The Manag ger Compan nies ASX Limite ed 20 Bridge S Street Sydney NSSW 2000 (33 pa ages by ema ail) BM MO CONFE EREN
Slide 2: Joining the Ranks of Global Nickel Producers
NICKEL JoiNING THE RANKS OF GLOBAL NICKEL PRODUCERS be MINES@eLM| TED S NORTH AMERICA - FEBRU/
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 JOINING THE RANKS OF GLOBAL NICKEL PRODUCERS 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). HM is
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Slide 7: Hengjaya Mine Expansion Plans
HENGJAYA MINE EXPANSION PLANS Addition of mining at Central Pit to existing operations at Bete Bete to deliver significant operational benefits. The Central Pit will see: + Reduced moisture content due to lower elevation ~5km haulage to jetty (Bete Bete ~12km) Designated haul roads, no requirement f
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Slide 9: Nickel demand outlook
For personal use only 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 retur
Slide 10: Nickel market deficit
For personal use only 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 retur
Slide 11: Supported by World Class Facilities & Infrastructure
SUPPORTED BY WORLD CLASS FACILITIES & INFRASTRUCTURE
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Slide 13: Chinese and Indonesian NPI
I Feni ri HE npibr 6M Chinese NPI (7 Indonesian NPI NM Source : Wood Mackenzie 12
Slide 14: 2018 Nickel Month Review
2018 NICKEI 12 MONTH REVIEW TES ENTE January US$77M Pre-IPO November funding round. Collaboration Shanghai Decent June September Agreement and Shanghai MOU signed Increased interest signed for RNI. Wanlu become to acquire in HNI to 60% for Secured initial q | NIC shareholders interest in RNI US$70M
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Slide 18: Material tax concessions granted to HNI
NICKEI MINES LI By official decree of the Minister of Finance of the Republic of Indonesia material tax concessions have been granted to HNI ‘= 100% Corporate Income Tax Reduction for 7 years commencing from the year of commercial production. = Plus an additional 2 Years Corporate Income Tax Reducti
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Slide 23: 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." o 180M dmt at 1.30% nickel (1.0% COG) for ~2.3M tonnes contained nickel? Ability to supply RKEF plant for 30+ yea
Slide 24: A Compelling Nickel Investment Thesis
A COMPELLING NICKEL NICKEL INVESTMENT 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 consum
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Slide 26: 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
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Peter Wei le 73 Directoumicy Manca Freon,
Slide 28: A Partnership Underpinned by Trust, Respect and Friendship
NICKEL A Partnership Underpinned by Trust, Respect and Friendship
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Slide 30: Tsingshan nickel production and stainless steel output
For personal use only '000t Ni 0 50 100 150 200 250 300 350 2004 2005 2006 China 2007 2008 2009 2010 Indonesia 2011 2012 2013 2014 2015 2016 2017 Tsingshan nickel production 2018F 2019F 2020F % of world nickel production 0% 2% 6% 4% 8% 10% 12% 14% 16% % of world prodcution million tonnes 2 4 6 8 12
Slide 31: Indonesian nickel production and NPI production
For personal use only Indonesian nickel production by Nickel pig iron production application 185kt contained Ni 900 45% 2% 800 40% 2% 6% 700 35% % of wrold production 8% 600 30% 3% '000t Ni 500 25% 400 20% 300 15% 200 10% 100 5% 79% 0 0% 2011 2016 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 32: Indonesian nickel exports
For personal use only Indonesian nickel exports in value Indonesian nickel exports in volume terms terms 8000 40000 800 7000 35000 700 LME price: $/tonne 6000 30000 600 $US million 5000 25000 '000t nickel 500 400 4000 20000 300 3000 15000 200 2000 10000 100 1000 5000 0 0 0 2011 2017 2007 2008 2009 2
Slide 33: Mine versus RKEF Economics
NICKEL MINE VERSUS RKEF ECONOMICS Relative Economics of Shipping versus Processing 1.5Mt pa of Nickel Ore 250 Margin: ~US$13,700/t Mine EBITDA (IMIP Pricing) = Mine EBITDA (Market Pricing) ——RKEF EBITDA EBITDA: US$226.3M 200 150 Margin: ~US$7,700/t EBITDA: US$126.5M ge 3 7 1.5Mt pa Ni ore to an RKEF
Nickel Mines — 28th BMO Capital Markets Global Metals & Mining Conference 2019 on 6ix