Nordic Iron Ore Ab · OMXSTO:NIO
Nordic Iron Ore Ab — Investor Presentation (April 2024)
27 slides from Nordic Iron Ore Ab's investor presentation, April 2024
Slide 1: Nordic Iron Ore AB (publ) Company Presentation April 2024
͟ Picture: Rendered schematic of Ludvika mines surface infrastructure NORDIC IRON ORE AB (PUBL) COMPANY PRESENTATION ͟ APRIL 2024
Slide 2: Disclaimer & Definitions
DISCLAIMER & DEFINITIONS Disclaimer: This presentation has been compiled based on information from Nordic Iron Ore AB (publ) (”NIO" or "the Company") and on public information with the purpose to describe the Company's operations, the market in which the Company operates, the Company's financial dev
Slide 3: Contents
CONTENTS Market Overview 4 Company Overview 7 Corporate Governance, Shareholders & Financials 17 Appendix 21
Slide 4: The global steel market is steadily growing on the back of worldwide drivers
THE GLOBAL STEEL MARKET IS STEADILY GROWING ON THE BACK OF WORLDWIDE DRIVERS ͟ Steel demand expected to increase with more than 56% between 2015-2050 Million tonnes steel +56% Drivers 2 500 Growth in 900 Unmet market global GDP demand Growing 1 600 population Increased urbanisation Increased spendin
Slide 5: Green steel plays an important role in reaching global CO2 targets
GREEN STEEL PLAYS AN IMPORTANT ROLE IN REACHING GLOBAL CO2 TARGETS ͟ Required change in steel production carbon intensity in line with the Paris agreement Tonnes CO2 per tonne steel produced -89% 1,8 ~0,2 2015 2050E European green steel initiatives ~90% lower carbon intensity New metallurgy is neede
Slide 6: Higher iron grade leads to less CO2 emissions and a premium valuation
HIGHER IRON GRADE LEADS TO LESS CO2 EMISSIONS AND A PREMIUM VALUATION ͟ Nordic Iron Ore offers ultra high-grade iron ore concentrate, qualifying in the top 3% seaborne market Changing market conditions increase demand for seaborne high grade iron ore and green mining1) >66% ✓ Only 3% of the global i
Slide 7: Nordic Iron Ore has secured SEK 35bn offtake agreement
NORDIC IRON ORE HAS SECURED SEK 35BN OFFTAKE AGREEMENT ͟ Secured permissions and qualified iron ore deposit Blötberget overview Cargill commitments Mine assets (mt) 12 Measured 55 1) 10 Indicated Offtake agreement Funding2) 45 Inferred 25mt Iron ore concentrate 60m Initial investment, SEK Secured lo
Slide 8: Cargill – Long-term partnership
CARGILL – LONG-TERM PARTNERSHIP Major global industry leading ͟ supplier of commodities and Milestone offtake agreement signed in July 2023 several other business operations, with +160k ▪ Offtake agreement regarding 25mt high grade iron employees and USD 177bn ore concentrates (~15 years of mining)
Slide 9: Blötberget has strategic location with several important connections
BLÖTBERGET HAS STRATEGIC LOCATION WITH SEVERAL IMPORTANT CONNECTIONS ͟ Roads and railroads connecting Ludvika to the rest of Sweden Blötberget is strategically located next to highways part of the Swedish national road system Highways in the With a population of ~26,000, Ludvika can Swedish national
Slide 10: Key company highlights
KEY COMPANY HIGHLIGHTS ͟ Secured with offtake agreement, logistics and high-grade iron ore concentrates - short lead-time to production Strong global demand for high grade iron ore concentrates Highly attractive ESG profile Offtake agreement ensuring cash flow and long-term partnership Attractive bu
Slide 11: Market outlook with evident need of green steel
MARKET OUTLOOK WITH EVIDENT NEED OF GREEN STEEL ͟ Changing market conditions The landscape Regulations and fierce competition for Environmental concerns and customer Shortage of green steel supply for the available emission rights makes pressure foreseeable future traditional steelmaking unprofitabl
Slide 12: Nordic Iron Ore electrified fleet in comparison with traditional diesel fleet
NORDIC IRON ORE ELECTRIFIED FLEET IN COMPARISON WITH TRADITIONAL DIESEL FLEET ͟ An electrified fleet demonstrates significantly reduced emissions Electrified Fleet – Diesel Fleet Emissions Electrified Fleet – Overall CO2t-(Scope 1-3) Comparison 14 25 12 20 CO2t-e emissions CO2t-e emissions 10 8 15 S
Slide 13: Net present value of Blötberget USD ~450m
NET PRESENT VALUE OF BLÖTBERGET USD ~450M ͟ Financial evaluation summary – Company estimates1) ͟ Sensitivity analysis at different long-term sales prices KPI EBITDA and average price for LoM USDm USD Mining period >15 years +12% in price -> 3 000 +19% in EBITDA 145 150 130 120 Average Fe grades >36.
Slide 14: Free cash flow and payback period of Blötberget
FREE CASH FLOW AND PAYBACK PERIOD OF BLÖTBERGET1) ͟ Free cash flow and discounted cash flow USDm 1 250 1 050 Payback period ~5 years Cumulative FCF 850 Payback period ~6 years Cumulative DCF (8%) 650 450 250 50 -150 -350 Y-2 Y-1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Free cash flow (
Slide 15: Blötberget and beyond
BLÖTBERGET AND BEYOND Phase 1 Future expansion phases Blötberget mine Väsman mine Håksberg mine • Mineable reserve: 34mt according to DFS • NIO performed a confirmation drilling • Mining concession 2011 2019 program in 2012 • Environmental permit 2014 • Production start end of 2028, enabling • Minin
Slide 16: Beyond iron ore concentrates
BEYOND IRON ORE CONCENTRATES ͟ Initial focus on iron ore concentrates but opportunity to explore new products • Future growth opportunities through new product development, increased sales, and improved margins • Expanding market reach and customer base through diversification of product Direct redu
Slide 17: Executive management
EXECUTIVE MANAGEMENT Management Organisation at production Ronne Hamerslag Ulf Kasshag CEO since July 2022 CFO since March 2024 CEO Long experience from international Extensive experience as auditor, operations and business leadership controller, internal auditor and CFO within mining and other indu
Slide 18: Board of directors – new Cargill director to be appointed
BOARD OF DIRECTORS – NEW CARGILL DIRECTOR TO BE APPOINTED Bengt Nilsson Tomas Olofsson Jonas Bengtsson Gösta Bergman Tobias Hansson Chairman of the board Board member Board member Board member Board Member 30 years of experience as Entrepreneur with 20 years of Over 15 years of experience Business l
Slide 19: Shareholders & the share
SHAREHOLDERS & THE SHARE ͟ Top 10 largest shareholders1) Shareholder Comment % of capital & votes Key Data2) Bengtssons Tidnings AB Jonas Bengtsson, board member 21.00% Sector Basic Materials Ludvika Holding AB Tomas Olofsson, board member 11.99% Ticker NIO Kopparinvest AB 7.00% Market Nasdaq First
Slide 20: Nordic Iron Ore
Nordi 7 lron Ore
Slide 21: Appendix
Appendix Nordic Iron Ore
Slide 22: Company history
COMPANY HISTORY ͟ With the Cargill deal in 2023, new management and all permits in place, NIO is now ready for production end of 2028 2008–2020: Regulatory, organisational and DFS 2021-2023: Milestone deal securing 15-year cash flow • 2008 - Nordic Iron Ore was founded and received 12 exploration pe
Slide 23: Exploration results
EXPLORATION RESULTS ͟ The characteristics of mineral resources and mineral reserves Mineral Resources Mineral Reserves Inferred Increasing level of geological Indicated Probable knowledge and confidence Measured Proved Consideration of mining, processing, metallurgical, economic, marketing, legal, e
Slide 24: Income statement
INCOME STATEMENT SEKm 2019 2020 2021 2022 2023 Net sales - - - - - Other external expenses -5.0 -4.3 -4.6 -6.5 -6.8 Personnel costs -3.7 -3.2 -3.4 -2.1 -4.1 Depreciation and write - downs of tangible and -0.8 -0.8 -0,4 -0.8 -0.2 intangible assets EBIT -9.5 -8.3 -8.2 -9.4 -11.1 Financial income 0.0 0
Slide 25: Balance sheet
BALANCE SHEET SEKm 2019 2020 2021 2022 2023 Intangible assets 149.4 156.7 160.4 164.9 166.9 Tangible fixed assets 3.2 2.4 2.0 1.8 1.7 Financial fixed assets 0.0 0.0 0.0 0.0 0.0 Other current assets 0.8 0.5 0.5 0.5 1.0 Cash and cash equivalents 13.0 5.2 2.8 2.7 0.9 Total assets 166.4 164.9 165.7 170.
Slide 26: Key historical financials
KEY HISTORICAL FINANCIALS SEKm 2019 2020 2021 2022 2023 EBIT -9.5 -8.3 -8.2 -9.4 -11.1 Net result -11.2 -9.0 -8.8 -10.5 -12.9 Outstanding shares 29,969,470 33,582,993 37,135,055 37,135,055 37,135,055 FTEs 4 3 3 3 3 New share issue 25.6 6.9 10.7 0.0 0.0 Cash balance 13.0 5.2 2.8 2.7 0.9 26
Slide 27: Nordic Iron Ore
Nordi 7 lron Ore