Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q1 2023 Earnings Presentation
25 slides from Nordic Mining Asa's earnings presentation, May 10, 2023
Slide 1: Minerals for a sustainable future
Minerals for a sustainable future Q1 2023 interim presentation 10 May 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 Q1-2023 4. Q & A
Slide 4: Q1 2023 Highlights
Introduction Q1 2023 Highlights • Full project financing package of USD 277 million secured Financing • Final Investment Decision (FID) resolved • Repair issue completed towards existing shareholders • Groundworks progressing in line with schedule Construction • Underground infrastructure works ongo
Slide 5: Building a Norwegian sustainable industrial company to deliver critical minerals
Introduction Building a Norwegian sustainable industrial company to deliver critical minerals Broad push from Norwegian industry, High-quality asset under construction Strong political drive in the EU and politicians and local communities for with low cost and industry-leading Western world to incre
Slide 6: EU pushes new reforms to ensure European supply of minerals
Introduction EU pushes new reforms to ensure European supply of minerals • On 16 March, EU launched a new act with ambitious goals for extracting, processing and recycling of strategic raw materials in EU • The Norwegian government has stated that they intend to follow up on the EU initiative • The
Slide 7: Engebø Rutile and Garnet
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q1-2023 4. Q & A
Slide 8: Health & Safety
Engebø Rutile and Garnet Health & Safety Key Performance Project to HSE status Q1 Target indicator date ▪ 1 year without LTI (Lost Time Injuries) incidents Lost time injuries (1/1 million working 0 0 <2,5* hours) ▪ Multiple EPCs and personnel on site, increased need for coordination Total recordable
Slide 9: Process plant area – ongoing concrete and steel work on admin building and workshop
Process plant area – ongoing concrete and steel work on admin building and workshop 9
Slide 10: Access road on North side of the mountain is under completion
Access road on North side of the mountain is under completion 10
Slide 11: Ongoing work on the mine service area on North side of the mountain
11 Ongoing work on the mine service area on North side of the mountain 11
Slide 12: Ongoing raise bore drilling at the top of Engebø
Ongoing raise bore drilling at the top of Engebø 12
Slide 13: Finalization of pilot drilling, raiseboring of vertical shaft commenced
Engebø Rutile and Garnet Headline Finalization of pilot drilling, raiseboring of vertical shaft commenced 13 13
Slide 14: Construction on track to start production in Q4 2024 at budget
Engebø Rutile and Garnet Construction on track to start production in Q4 2024 at budget Comments Construction by EPC1 Sunnfjord Industripartner AS: ▪ Ongoing groundworks on process plant area and preparatory works for underground infrastructure since April 2022. ▪ The process plant the area has been
Slide 15: Long lead technology packages secured with leading sustainable suppliers
Engebø Rutile and Garnet Long lead technology packages secured with leading sustainable suppliers ~78% of technology packages of USD 30 million on signed contracts, with Package ID Package name Procurement status price and delivery agreed. Detail Engineering or Fabrication ongoing on all PM012B Wet
Slide 16: Integrated owners' team fully ramped up
Engebø Rutile and Garnet Integrated owners’ team fully ramped up Project Director Terje Gundersen Environment & Operation Readiness & Sustainability Communication Ylva Wård Kenneth Nakken Angedal Procurement & Logistics HSEQ & Risk Siri M. Olsen/Inventura Espen Midtbø Haugvaldstad Cost & Administrat
Slide 17: Operations team growing with new resources and ongoing recruitments
Engebø Rutile and Garnet Operations team growing with new resources and ongoing recruitments • Operations Team ramping-up Operations Director towards handover from EPCs from after Kenneth Nakken Angedal commissioning supported by Owner’s Team • Key management recruitment • with onboarding in Q2 and
Slide 18: Subdued pigment demand in Q1 softens demand for rutile
Engebø Rutile and Garnet Subdued pigment demand in Q1 softens demand for rutile • Titanium metal demand, being an important driver for rutile, remained robust: - ongoing revival of air traffic, - increasing demand for non-Russian products - • The outlook remains strong throughout 2023 • Slower start
Slide 19: Garnet market starts slow in Q1 2023
Engebø Rutile and Garnet Garnet market starts slow in Q1 2023 • Industrial demand in both North America and Europe slowed in the first quarter. This was reflected in lower demand for waterjet cutting abrasives • Demand for blasting garnet remained more stable because of ongoing projects and generall
Slide 20: By-products and market opportunities
Engebø Rutile and Garnet By-products and market opportunities Pyrite (Iron sulphate) High-density rock ▪ Memorandum of Understanding with Green Trail Holding Ltd, a trading ▪ High-density rock has several applications and is currently being used company with over 30 years of experience, for offtake
Slide 21: Financial update Q1-2023
1. Introduction 2. Engebø Rutile and Garnet 3. Financial update Q1-2023 4. Q & A Source:
Slide 22: Fully funded to bring Engebø into commercial production
Financial update Q1-2023 Fully funded to bring Engebø into commercial production ▪ The Group’s balance sheet remains solid: o The Group had NOK 957 million in cash and cash equivalents at quarter-end, plus NOK 1.07 billion on bond Escrow to be used for costs and expenditures related to the Engebø Pr
Slide 23: Highlights and Q&A
Highlights and Q&A • Full project financing package of USD 277 million secured Financing • Final Investment Decision (FID) resolved • Repair issue completed towards existing shareholders • Groundworks progressing in line with schedule Construction • Underground infrastructure works ongoing • Civil w
Slide 24: Consolidated income statement
Appendix Consolidated income statement Q1-2023 Q1-2022 2022 1 Main financial items: Unaudited Unaudited Amounts in NOK million Audited - net gain on foreign exchange related to the - - Other income - bond of NOK 1.1 million; (4.4) (4.4) Payroll and related costs (11.7) - net interest cost of NOK –13
Slide 25: Consolidated statement of financial position
Appendix Consolidated statement of financial position 31.03.2023 31.12.2022 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets - - Mine under construction 1 420.7 1 288.4 1 Early construction works in Q1 of around Property, plant and equipment 1.0 1.1 Right-of-use asse