Nickel 28 Capital Corp · TSXV:NKL
Nickel 28 Capital — Investor Presentation (May 2024)
27 slides from Nickel 28 Capital's investor presentation, May 2024
Slide 1: Accelerating Growth
TSX-V: NKL Investor Presentation | May 2024 Accelerating Growth
Slide 2: Forward-Looking Statements + Qualified Person
Forward-Looking Intro Statements + Qualified Person Ramu Upside This presentation contains certain information which constitutes performance or achievements could vary materially from those expressed accurate, as actual results and future events could differ materially from ‘forward-looking statemen
Slide 3: Investment Highlights
Investment NKL’s Annual Ramu Cash Flow(1) Intro Highlights ~$24M Ramu Cash-Flow Generating Low-Cost Nickel Mine + Only Pure Ni-Play on TSX-V Upside ▪ Low cost open-pit nickel-cobalt mine located in Papua New Guinea ▪ Mine generating substantial free cash flow ~$16M ~$8M Ni Market ▪ NKL now receiving
Slide 4: Nickel28's Portfolio
Nickel28’s NORTH CANOL Property 1 Property 2 2% Co NSR Portfolio Intro SUNSET DUMONT Ni-Co 2% Co NSR WATERTON 1.75% NSR Ramu PROFESSOR & WALDMAN TURNAGAIN Ni-Co GIGA METALS 2.0% NSR Property 1 Property 2 Full Pipeline 2% Co NSR of Projects Upside RAMU Ni-Co SEWA BAY Ni-Co METALLURGICAL Pure Minerals
Slide 5: Corporate Structure
Corporate Structure TSX-V: NKL Board & Management is Strongly Aligned with >35% ownership of NKL $0.75 7 May 2024 1 Apr 2024 22 Feb 2024 16 Jan 2024 6 Dec 2023 31 Oct 2023 CAD$0.75 91.1M USD$72.28M USD$49.04M USD$9.85M USD$0.0M USD$125.67M 22 Sep 2023 16 Aug 2023 10 Jul 2023 1 Jun 2023 25 Apr 2023 1
Slide 6: Ramu Cash Flow to NKL
Ramu Cash Flow to NKL Intro Ramu Low-Cost Ramu Nickel Price: $9.00/lb Cobalt Price: $20.00/lb (1) Nickel Price: $15.00/lb Cobalt Price: $35.00/lb (1) US$30.0 Cash Flow (US$ Millions) US$60.0 Cash Flow (US$ Millions) Mine Leveraged Upside US$25.0 US$50.0 to Commodity US$20.0 US$40.0 Price Ni Market U
Slide 7: Debt Repayment Plan
Debt Repayment Construction debt can be repaid at any time without penalty. Intro Plan Operating + Construction Debt (in US$ Millions) (1) Ramu US$140.00 US$120.00 Debt Refinancing is Upside US$100.00 Possible Given US$80.00 Ramu’s Cash Flow US$60.00 Ni Market Profile US$40.00 US$20.00 US$0.00 Dec-1
Slide 8: Leadership Team Overview
Leadership Team Intro Christopher S. Wallace Interim CEO ▪ An experienced corporate director, with a wealth of Overview experience in leadership and finance, including in the critical minerals industry through other public corporate Ramu directorships ▪ Serves as Chair of the audit committee and as
Slide 9: Board of Directors
Board of Directors Intro Christopher S. Wallace Interim Chief Executive Officer Ramu lan Ross (Chairman) Edward (Ned) Collery Brett Richards Maurice Swan Christopher Wallace ▪ Chairman and Interim ▪ Over a decade of ▪ Experienced and ▪ Practiced corporate ▪ Experienced corporate CEO of Growthworks e
Slide 10: RAMU
TSX-V: NKL Nickel28 Capital Corp. RAMU World-Class Low-Cost Nickel Mine Generating Substantial Cashflow
Slide 11: Ramu Highlights
Ramu Highlights Intro Ramu ▪ Consistently ranks at or near first-quartile of the global nickel cost curve1 Ramu High-Margin Ni Operation ▪ Expanding margins w/ annual Cash Cost ~$3-$4/lb – one of the best US$16.00 performing Ni mines in the world today Upside ▪ Producing at or above nameplate capaci
Slide 12: Ni-Co Integrated Operation
Ni-Co Ra MADANG PROVINCE m u Ri ve r Integrated Intro Madang Operation Basamuk Ramu Usino Plant Ramu Nickel-Cobalt Operation Upside Kurumbukari Mine Site Ma Ni Market da ng –L ae Hi gh Exploration Licence wa y Ramu All Weather Roads Nickel-Cobalt Operation Highway Madang Basamuk Plant Pipeline (134
Slide 13: Ramu Reserves + Resources
Ore Reserves Ramu Reserves + As at December 31, 2023 Intro Nickel Cobalt (Mt) (%) (%) Resources Ramu Proven 60 0.80 0.09 Probable 8.9 0.91 0.09 Total Reserves 68.9 0.81 0.09 Significant Potential Upside Mineral Resources As at December 31, 2023 (Mt) Nickel (%) Cobalt (%) to Deliver Decades of Produc
Slide 14: Ramu Performance
Ramu Performance Intro Production in Mixed Hydroxide Ramu Production Has Exceeded 000s of Tonnes 34.7 35.4 33.7 34.3 33.6 32.7 32.8 Design Capacity for the 30.0 Upside Last 7 Years 25.6 22.3 21.0 Ni Market 11.4 5.3 3.3 3.3 2.9 2.9 3.0 3.0 3.1 2.8 2.1 2.5 2.2 0.5 1.0 2012 2013 2014 2015 2016 2017 201
Slide 15: Sensitivity to Ni Price
Sensitivity to Ni Price Intro Ramu NPV Sensitivity to Ni Price (US$) Ni Price $7.50 $10.00 $12.50 $15.00 $17.50 $20.00 Upside Ramu JV NPV – US$(1) $70M $161M $252M $343M $440M $529M Ramu NPV / Share – C$(2) $0.96 $2.21 $3.46 $4.72 $6.05 $7.29 Ni Market CURRENT EV (excluding JV Debt) = $38M Current S
Slide 16: Metallurgical Corporation of China
Metallurgical Corporation Intro ▪ 65th on the Fortune Global 500 list ▪ US$133B in revenue and US$153B in assets of China Ramu ▪ MCC currently developing >2,000 projects worldwide ▪ Specializes in metallurgical engineering, construction & development ▪ MCC has engineered and constructed some of the
Slide 17: JV Structure + Optionality
JV Structure + Optionality Intro Pro Forma Ramu Ownership Effective JV Interest % Ramu JV interest increases Metallurgical Corporation of China Ni28 PNG Interests(1) to 11.3% once debt is Upside 8.6% 6.4% 8.7% 11.3% 14.5% repaid 20.6% Ni Market 64.9% 85.0% 80.0% PRE-LOAN REPAYMENT POST-LOAN REPAYMEN
Slide 18: UPSIDE
TSX-V: NKL Nickel28 Capital Corp. UPSIDE Royalty Portfolio on Some of the Most Prospective Ni –Co Reserves & Resources
Slide 19: Portfolio of Streams + Royalties
Portfolio of Streams + Intro Royalties Primary Ramu Royalty Name Operator Location Stage Metal(s) Royalty Type Construction- Dumont Waterton Global Res. Mgmt Québec Ni-Co 1.75% NSR ready British Optionality on Turnagain Giga Metals Exploration Ni-Co 2% NSR Upside Columbia Construction- Nyngan Scandi
Slide 20: Dumont Project + Royalty
Dumont Project + Intro Royalty Ramu ▪ One of the largest undeveloped nickel and cobalt reserves in the world Nickel Reserves Benchmarking (MT NI) ▪ Fully permitted, construction-ready Upside 7 ▪ Impacts and Benefits Agreement successfully negotiated with local First Nation 6 ▪ Initial mine life of 3
Slide 21: Turnagain Project + Royalty
▪ ▪ Nickel-cobalt deposit, 85%/15% joint venture between Giga Metals and Mitsubishi Corp. Turnagain Project Among the world's largest undeveloped nickel-cobalt sulphide deposits Intro ▪ Low technical risk & significant exploration upside ▪ Ideally suited to be refined into Class 1 nickel and cobalt
Slide 22: Ni MARKET
TSX-V: NKL Nickel28 Capital Corp. Ni MARKET Rising Prices Supported by Strong Demand for Nickel in EV
Slide 23: EV Market Growth
EV Market Growth Intro Global Plug-in Vehicle Markets Ramu BEV & PHEV – Light Vehicles 19.6% 18,000,000 17.8M EV Sales Grew 16.0% Over 34% in 2023 Upside 13,500,000 13.0% Despite Supply Constraints Ni Market 9,000,000 8.3% 4.2% 4,500,000 2.5% 2.2% 0.6% 0.9% 1.3% PEV share 0.2% 0.4% 0 2010 2011 2012
Slide 24: Nickel's Importance in the Electric Vehicle Industry
Nickel’s Importance Intro EV Nickel Demand: +1.3 Mtpa in the Electric by 20301 Ramu Contained Nickel in EVs (Mt) 59% 59% Vehicle EV Nickel Demand as a % of Supply Upside % of 2018 Ni Supply Industry Ni Market 18% 5% 3% 2018 2020 2025 2030 Source: Glencore estimates, Wood Mackenzie, CRU, BNEF 24 (1)
Slide 25: WHY INVEST?
TSX-V: NKL Nickel28 Capital Corp. WHY INVEST?
Slide 26: Milestones + Catalysts
Milestones + Catalysts Why Invest? 20 RAMU GENERATING FREE OPTIONALITY 20 Q2E 20 POSITIVE NEWS 20 INSTITUTE A SHARE BUYBACK 20 21 22 23 SUBSTANTIAL ON FULLY PAID FULL REPAYMENT FLOW FROM AND/OR DIVIDEND FREE CASH FOR ROYALTY OF JV OPERATING ROYALTY WITH RAMU CASH FLOW PORTFOLIO DEBT INVESTMENTS DIST
Slide 27: TSX-V: NKL
TSX-V: NKL c/o McCarthy Tétrault LLP Suite 5 3 0 0 TD Bank Tower Box 48, 66 Wellington Street West Toronto ON M5K 1E6 info@nickel28.com nickel28.com