Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2022 Earnings Presentation
25 slides from Nordic Mining Asa's earnings presentation, Feb 7, 2023
Slide 1: Minerals for a sustainable future – Q4 2022 presentation
Minerals for a sustainable future Q4 2022 presentation 07 February 2023
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
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q4-2022 4. Q & A 3
Slide 4: Q4 2022 Highlights
Q4 2022 Highlights • Over 75% of project financing for the Engebø Project secured • Summons for extraordinary general assembly 3 March: Proposed Financing private placement of USD 66 million to secure the remaining financing • Groundworks progressing ahead of schedule Construction • Underground infr
Slide 5: Engebø Rutile and Garnet
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q4-2022 4. Q & A 5
Slide 6: Health & Safety
Engebø Rutile and Garnet Health & Safety Key Performance Q4 Year to Target HSE status indicator date ▪ No injuries in Q4 and 2022 Lost time injuries (1/1 million working 0 0 <2,5* hours) ▪ Focus on correct use of protective equipment Total recordable injuries (1/1 million 0 0 <8,8* ▪ Several risk wo
Slide 7: Engebø site construction status
Waste rock/ stockpile Access road Open pit Ore shaft • Total staff of ~55 persons at site • Groundworks on schedule, work on concrete foundations to start in Q1-2023 • Access road 70% completed • Conveyor tunnel and crushing chamber 55% complete • Detail Engineering ongoing with all EPCs Process pla
Slide 8: Groundworks on western part of process area close to ready for civil works
Engebø Rutile and Garnet Groundworks on western part of process area close to ready for civil works 8
Slide 9: Access road to mine service area ~70% completed
Engebø Rutile and Garnet Access road to mine service area ~70 % completed 9
Slide 10: Preparation for raise boring of vertical ore shaft started on top of deposit
Engebø Rutile and Garnet Preparation for raise boring of vertical ore shaft started on top of deposit 10
Slide 11: Ore conveyor tunnel from crushing chamber progressing, ~55% completed
Engebø Rutile and Garnet Ore conveyor tunnel from crushing chamber progressing, ~55% completed 11
Slide 12: Drilling confirms the expected geotechnical conditions in the ore
Engebø Rutile and Garnet Drilling confirms the expected geotechnical conditions in the ore 12
Slide 13: Sampling of drill cuttings has commenced for data gathering
Engebø Rutile and Garnet Sampling of drill cuttings has commenced for data gathering 13
Slide 14: Procurement of mechanical technology packages in process
Engebø Rutile and Garnet Procurement of mechanical technology packages in process • December 8, 2022: NM partners with Metso Outotec for delivery of a comprehensive comminution package for Engebø Rutile and Garnet, comprising over 30% of the process equipment expenditure • Procurement to secure time
Slide 15: Building the team - recruitment of key discipline managers ongoing
Engebø Rutile and Garnet Building the team - recruitment of key discipline managers ongoing • Positive response from recent recruitment advertisements for key positions • Strong interest from competent applicants from both local and regional areas • The feedback so far is encouraging towards a diver
Slide 16: Rutile demand remained firm in Q4 despite pause in pigment demand
Engebø Rutile and Garnet Rutile demand remained firm in Q4 despite pause in pigment demand • The fourth quarter 2022 showed strong results for titanium feedstock producers. Rutile sales volumes exceeded production and prices for rutile continued to increase during the quarter • Lower pigment demand
Slide 17: Titanium sponge production in increasing demand
Engebø Rutile and Garnet Titanium sponge production in increasing demand • Titanium metal demand, being an important driver for rutile, remained robust due to the ongoing revival of air traffic, as well as demand for non-Russian products. • Titanium metal producers reported strong demand and increas
Slide 18: Long-term offtake agreements signed for full production of rutile and garnet
Engebø Rutile and Garnet Long-term offtake agreements signed for full production of rutile and garnet Rutile Garnet Global TiO2 Partner Global Partner on Garnet Binding offtake agreement signed in June 2022 Binding offtake signed October 2022 Binding offtake agreement signed January 2023 5-year agre
Slide 19: Financial update Q4-2022
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q4-2022 4. Q & A 19
Slide 20: Funding to continue Engebø early construction
Financial update Q4-2022 Funding to continue Engebø early construction ▪ The Group’s balance sheet remains solid: o NOK 165 million in cash and cash equivalents at year-end, ensuring funding to continue Engebø construction until remaining equity financing is secured o Engebø construction expenditure
Slide 21: Highlights and Q&A
Highlights and Q&A Over /5% of project financing for the Engebo Project secured ~ Summons for extraordinary general assembly 3 March: Proposed private placement of USD 66 million to secure the remaining Groundworks progressing ahead of schedule Underground infrastructure works ongoing Offtake secure
Slide 22: Consolidated income statement
Appendix Consolidated income statement Q4-2022 Q4-2021 Acc.2022 Acc.2021 Unaudited Unaudited Amounts in NOK million Unaudited Audited - - Other income - 0.2 (2.9) (3.8) Payroll and related costs (11.7) (16.2) (0.1) (0.0) Depreciation and amortization (0.2) (0.1) (5.0) (12.1) Other operating expenses
Slide 23: Consolidated statement of financial position
Appendix Consolidated statement of financial position 31.12.2022 31.12.2021 Amounts in NOK million Unaudited Audited ASSETS 1 Early construction works in Q4 of around Evaluation and exploration assets - 28.8 NOK 120 million, capitalized under «Mine Mine under construction 1 288.4 - under constructio
Slide 24: World's most climate friendly titanium feedstock
Appendix World’s most climate friendly titanium feedstock Industry leader on GHG emissions1 Life Cycle Analysis proves superior rutile product2 Titanium producers analysis Global Warming Potential 3.3 Total Scope 1 and 2 Emissions vs Emission Intensity Emissions Intensity (tCO2e/t product) Total Emi
Slide 25: Taking action for biodiversity
Appendix Taking action for biodiversity Environmentally responsible • As a response to the United Nation’s goal to stop loss of biodiversity, Nordic Mining has adopted a goal of net biodiversity gain over the life of mine for the Engebø project • To achieve this, a Biodiversity Action Plan is under