Nickel Industries Limited · ASX:NIC
Nickel Industries — Shareholder Meeting (May 2022)
21 slides from Nickel Industries's shareholder meeting presentation, May 31, 2022
Slide 1: Building a Nickel Empire - Annual General Meeting
BUILDING A NICKEL EMPIRE For personal use only Annual General Meeting 31 May 2022 A clearly defined growth path to becoming a top-10 global nickel producer 0
Slide 2: Disclaimer
Disclaimer 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 context. For persona
Slide 3: A new name to reflect the industrial nature of our operations
A new name to reflect the industrial nature of our operations For personal use only A WORLD CLASS INDUSTRIAL PRODUCING THE LOWEST CAPITAL INTENSIVE AND SOME OF THE MOST PROFITABLE NICKEL UNITS IN THE GLOBAL MARKET IN PROCESSING BUSINESS PARTNERSHIP WITH TSINGSHAN - THE WORLD’S LARGEST, LOWEST COST S
Slide 4: Indonesia – the undisputed epicentre of global nickel supply
Indonesia – the undisputed epicentre of global nickel supply For personal use only HALMAHERA IWIP ANI Nickel Mines has established IMIP operating footprints in what are HNI, RNI, ONI now two of the world’s largest MOROWALI HM MINE nickel production centres 3
Slide 5: Two world class nickel production centres employing ~70,000 local workers
For personal use only IMIP IWIP RKEF lines 44 operating RKEF lines 31 operating RKEF lines (8 under construction) RKEF lines (17 under construction) Steel production capacity 3Mt stainless-steel per annum Steel production capacity Currently no stainless-steel capacity Employees ~45,000 total (40,000
Slide 6: The RKEF business
The RKEF business IMIP IMIP IWIP IMIP HNI RNI ANI ONI For personal use only 80% 80% 80% 30% OPERATING OPERATING COMMISSIONING UNDER CONSTRUCTION Hengjaya Nickel Project (HNI) Ranger Nickel Project (RNI) Angel Nickel Project (ANI) Oracle Nickel Project (ONI) 2 RKEF lines 2 RKEF lines 4 RKEF lines 4 R
Slide 7: Illustrative business model
Illustrative business model Mining business Hengjaya Mine ~80 other nickel ore suppliers from across Indonesia For personal use only FY 2021 ~3MT pa US$22M EBITDA Morowali and Weda Bay Industrial Parks Centralised nickel ore stockpile RKEF operations Industrial business In addition to NIC’s RKEF lin
Slide 8: Current operations
For personal use only Current operations 7
Slide 9: Financial snapshot – an excellent full year result across all operations
Financial snapshot – an excellent full year result across all operations ▪ Record FY2021 financial performance underpinned by: All figures in US$M FY 2021 FY 2020 For personal use only – strong and consistent RKEF production (>10kt per quarter) – higher realised NPI prices RKEF sales revenue $645 $5
Slide 10: March quarter summary
March quarter summary December quarter March quarter For personal use only tonnes Gross Ni metal production (100% basis) 10,087 11,166 10.7% NIC attributable Ni metal production tonnes 8,069 8,933 10.7% Realised NPI price $/t Ni 18,545 Record 19,368 4.4% US$M Record Sales revenue (100% basis) 187.1
Slide 11: Operational consistency – a hallmark of our business
Operational consistency – a hallmark of our business…. Consistent, industrial style production and cost base with production profile set to triple over the next 12 months For personal use only RKEF production March Qtr June Qtr September Qtr December Qtr FY 2021 March Qtr NPI production tonnes 71,93
Slide 12: …with key operating metrics to support this
…..with key operating metrics to support this Charts below represent the quarterly performance from 4 RKEF lines. These numbers are set to triple with the introduction of 8 new RKEF lines within the next 12 months For personal use only 11
Slide 13: The next wave of growth
For personal use only The next wave of growth 12
Slide 14: ANI and ONI capacity coming online
ANI capacity New overview coming online within the next 12 months Capital cost guarantee For personal use only ▪ Not to exceed US$700m (1) Angel ▪ No cost overrun risk Nickel First production (“ANI”) 4 next generation RKEF lines 80% interest for ▪ Commissioning commenced in and a 380MW power plant U
Slide 15: Establishing Nickel Mines as a top global nickel producer
ANI overview Establishing Nickel Mines as a top 10 global nickel producer ONI acquisition to add significant scale, while diversifying Nickel Mines’ production footprint 2021 Processed Nickel Production (kt) For personal use only 596 269 193 190 168 148 138 103 86 70 68 65 64 46 44 38 32 31 29 26 24
Slide 16: ANI and ONI expected to be transformative to NIC’s production and financial profile
ANI and ONI expected to be transformative to NIC’s production and financial profile Consolidated production (100% basis) Existing operations demonstrate consistent 12 RKEF lines performance of 30%+ above nameplate For personal use only 140,000 Ni Eq production (tpa)(3) capacity 120,000 32,010 100,00
Slide 17: EBITDA profile set to triple in months
EBITDA profile set to triple in 12 months ▪ FY 2021 RKEF EBITDA of US$225M, delivered at Assumed margin per tonne US$/t 5,000 6,000 7,000 a margin of US$5,607/t of Ni sold For personal use only – 2H2021 margin was US$6,109/t of Ni sold Production (tonnes) RKEF EBITDA ($m) (1) – 1Q2022 margin was US$
Slide 18: A compelling valuation
A compelling valuation Growth-EV/EBITDA Correlation Chart Bubble size represents 2023E EBITDA (US$m) For personal use only Source: Capital IQ as of 9 May 2022 Notes: Nickel Mines 2023E EBITDA as per company estimates; Removed Chalice Gold, Panoramic Resources, Buenaventura, Turquoise Hill and PT Mer
Slide 19: A compelling valuation (cont’d)
A compelling valuation (cont’d) Growth-P/NAV Correlation Chart For personal use only Bubble size represents 2023E EBITDA (US$m) Source: Capital IQ as of 9 May 2022 Notes: Removed Chalice Gold, Panoramic Resources and KGHM Polska as outlier 18
Slide 20: Why invest now?
Why invest now? Production and EBITDA profile to grow >3x over the next 12 months as 2 new projects come online For personal use only A compelling growth profile An attractive valuation entry point Growth that does not rely on Unrivalled growth delivered through increasing production and strong, sta
Slide 21: Thank you
For personal use only THANK YOU For further inquiries please contact Justin Werner Chris Shepherd Cameron Peacock Managing Director Chief Financial Officer Investor Relations & Business Development jwerner@nickelmines.com.au cshepherd@nickelmines.com.au cpeacock@nickelmines.com.au 20