Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (May 2021)
27 slides from Canada Nickel's investor presentation, May 26, 2021
Slide 1: Introduction to Canada Nickel Company
Introduction to Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC May 26, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC”). Forward looking information includes, but is not limited to, the results of the Crawf
Slide 3: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel (CNC) owns 100% of the Crawford Nickel-Cobalt Sulphide project: A new nickel discovery with large scale potential in an established mining camp adjacent to existing infrastructure north of Timmins, Ontario, Canada - One of the top 5 nickel sulphide resource
Slide 4: Crawford Nickel Sulphide Project
Crawford Nickel Sulphide Project One of largest nickel sulphide resources located in a well established mining camp with infrastructure • World-class jurisdiction in Ontario, Canada • Established Timmins mining camp with 100-year history of mining • Access to all major infrastructure including zero-
Slide 5: Crawford PEA Highlights
Crawford PEA Highlights The Crawford PEA demonstrates strong financial returns based on a large resource with significant upside potential US$1.2 billion after-tax NPV8% Robust Economics 16% after-tax IRR 42ktpa nickel at peak production (Phase III), 34ktpa nickel LOM Large Scale, 1.9 Billio
Slide 6: Crawford Is a Structurally Low Cost Project
Crawford Is a Structurally Low Cost Project Crawford is a structurally low cost operation - Large scale mine / mill operation expanded in 2 stages from 42.5 ktpd to 120 ktpd - Low strip ratio – life of mine 2.1:1 and initial phase 1.3:1 - Use of trolley trucks and electric shovels reduce diesel cons
Slide 7: Crawford PEA Summary - Capital Costs
Crawford PEA Summary - Capital Costs Project construction to be done with 2 expansions to 120ktpd capacity Initial and Expansion Initial 42.5 ktpd 85 ktpd 120 ktpd Life-Of-Mine (US$ millions) (Years 1 - 25) Mining $201 - - $201 Process plant $294 $294 $98 $686 Site and services $157 $132 $4 $293 Inf
Slide 8: Crawford PEA Summary – Operating Costs
Crawford PEA Summary – Operating Costs Three phase production plan peaks at nickel production of 42ktpa with a life-of- mine AISC of US$1.94/lb Unit Phase I Phase II Phase III Life-of-Mine (Years 1 – 3.5) (Years 3.5 – 7) (Years 8 – 18) (Years 1 – 25) Mill Capacity ktpd 42.5 85 120 100 Nickel Product
Slide 9: Current Downstream Path to Stainless Steel
Current Downstream Path to Stainless Steel Future Path Likely to Include Path to EV • Nickel, iron and chromium are three key alloying US Stainless Conversion Margins metals in the production of stainless steel, which (US$/lb Nickel) vs makes Crawford products suitable feeds Nickel Sulphate Premiums
Slide 10: A Top Nickel Sulphide Operation Globally
Crawford A Top 5 Nickel Sulphide Operation Globally Based on PEA results, Crawford is expected to be among the Top 5 nickel sulphide operations globally and would be largest single nickel sulphide mine outside Russia Largest Nickel Sulfide Operations by 2020 Annual Production 208 (kt of Nickel/Year)
Slide 11: The Largest Base Metals Mine in Canada
Crawford The Largest Base Metals Mine in Canada Based on PEA results, Crawford is expected to be one of the largest base metal mines in Canada Largest Canadian Base Metals Mines by 2020 Annual NiEq Production(1) (kt of Nickel Equivalent/Year) Nickel Copper Zinc Molybdenum Cobalt Precious Metals PGEs
Slide 12: A 1st Quartile Net Cash Cost Producer
Crawford A 1st Quartile Net Cash Cost Producer Based on PEA results, Crawford is expected to be a low cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs Crawford's Net C1 Cash Cost vs 2020 Net C1 Cash Cost of Global Nickel $10.00 Spot Nickel Price: $7.75/lb Turnagain Net C1
Slide 13: Additional Opportunities
Additional Opportunities 1 Exploration Upside 2 Recovery Optimization 3 NetZero Carbon Footprint Determine the carbon capture Significant additional exploration Optimization of nickel, iron, chrome potential from the carbon potential within the Crawford recovery and concentrate grades sequestration
Slide 14: Crawford Mineral Resource
Crawford Mineral Resource Crawford’s resource ranks as one of the 10 largest nickel sulphide resources globally and now includes chrome values • Higher grade core of M&I Resource of 280 Mt at 0.31% Ni, 0.59% Cr and 6.31% Fe within an overall M&I resource of 653 Mt at 0.26% Ni, 0.60% Cr and 6.58% Fe
Slide 15: Higher Grade Core – Crawford Main Zone
Higher Grade Core – Crawford Main Zone Clearly Defined in Resource A higher grade core of 201 Mt of 0.34% Ni including 58 Mt at 0.36% was defined within resource. Remains open to the west. The higher grade core has been defined for: • 1.8 km long • 150-220 m wide • Up to 650 m deep • Infill hole CR2
Slide 16: West Zone – Third New Discovery
West Zone – Third New Discovery Hole 74 Extends Higher Grade Core • Follow up drilling of hole CR20-74 Main-Higher Grade Zone and West Zone Holes 69, 70, 72, 74 in West Zone substantially over top of gravity gradient extends higher grade mineralization potential by 45% or 850 metres to northwest. –
Slide 17: Fourth New Discovery Reinforces Geophysical Understanding
Fourth New Discovery Reinforces Geophysical Understanding • Initial two drill holes collared 100 m apart intersected mineralized dunite in 1.1 km by 400 m wide geophysical anomaly approximately 2.5 km north of Main Zone. • Hole CR20-84 remained in mineralized dunite across its entire core length of
Slide 18: Significant Exploration Potential
Significant Exploration Potential >50% Crawford + Multiple New Targets Fully consolidated properties contain multiple nickel-bearing target structures 30km of total strike length and 150 - 600m wide • For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide Historic dril
Slide 19: MacDiarmid – 15% Larger Anomaly Than Crawford Main Zone
MacDiarmid – 15% Larger Anomaly Than Crawford Main Zone The first three holes drilled at MacDiarmid returned significant intersections of mineralized dunite similar to the average mineralization initially discovered at Crawford. Plan view of Crawford and MacDiarmid Properties Outline of Gravity Low
Slide 20: Crawford is Largest Nickel Sulphide Discovery Since Early 1970s
Crawford is Largest Nickel Sulphide Discovery Since Early 1970s ? Crawford Source: Vale presentation at the Metal Bulletin 3rd International Nickel Conference , London, April 29, 2015 20
Slide 21: Next Steps
Next Steps • Immediately initiating a feasibility study with a timeline for a mid-year 2022 release • Continue work on its Environmental and Social Impact Assessment which is a key step in the permitting process • Aggressively advance permitting work based on PEA results • Continue to explore and un
Slide 22: Appendix
CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 23: Crawford PEA Operating Cost Summary
Crawford PEA Operating Cost Summary Phase I Phase II Phase III Life-Of-Mine (Years 1 - 3.5) (Years 3.5 - 7) (Years 8 - 18) (Years 1 - 25) Operating Costs US$ C$ US$ C$ US$ C$ US$ C$ ($ / tonne milled) Labour $2.39 $3.19 $1.49 $1.98 $1.20 $1.60 $1.26 $1.68 Consumables $2.49 $3.31 $2.35 $3.14 $2.30 $3
Slide 24: Crawford PEA Sensitivities
Crawford PEA Sensitivities Delta NPV8% Delta IRR Delta Net C1 Cash Cost (US$ millions) (%) (US$ / lb) Sensitivity - + - + - + Nickel Price ±$1/lb ($445) $435 (2.8%) 2.6% n.a. n.a. ($6.75/lb - $8.75/lb) Nickel Price ±10% ($342) $341 (2.1%) 2.0% n.a. n.a. ($6.98/lb - $8.53/lb) Iron Price ±10% ($101) $
Slide 25: Crawford PEA Assumptions
Crawford PEA Assumptions Unit Model Assumptions Parameter Nickel Price US$/lb (US$/tonne) $7.75 ($17,000 ) Chromium Price US$/lb (US$/tonne) $1.04 ($2,300 ) Iron Ore Price US$ / tonne $290 US$/C$ Exchange Rate USD:CAD 0.75 Oil US$ / barrel $60 25
Slide 26: Crawford PEA Detailed Summary
Crawford PEA Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 7) (8 - 18) (Years 1 - 25) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,188 $543 $194 $1,925 Sustaining & Closure US$ millions / year $238 $254 $512 $1,0
Slide 27: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com Twitter: @CanadaNickel 27
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