Giga Metals Corporation · TSXV:GIGA
Giga Metals — Investor Presentation (February 2022)
28 slides from Giga Metals's investor presentation, Feb 28, 2022
Slide 1: Battery Metals for a Clean Energy Future
TSX.V: GIGA | OTCQX: HNCKF | FSE: BRR2 Battery Metals for a Clean Energy Future February 28, 2022 www.gigametals.com
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being issued by Giga Metals Corporation (the “Company” or “Giga Metals”) for information purposes only. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all o
Slide 3: About Giga Metals
About Giga Metals Giga Metals is a TSX.V & OTCQX listed junior mining company World is in critical need of nickel to meet global battery demand Objective: build a 35+ year operation, averaging 33,000 t/y nickel Owns 100% of the Turnagain nickel and cobalt deposit Seeking strategic partners to advanc
Slide 4: Located in an Attractive Mining Jurisdiction
Located in an Attractive Mining Jurisdiction LEGEND Silvertip Past Producing Mine LOCATION ADVANTAGES Operating Mine Deepwater Port Turnagain Railway § Strong ESG practices Highway Red Chris § Access to a deep-water Pacific port Kemess Brucejack and North American rail Mt Milligan Endako Huckleberry
Slide 5: Project Highlights
Project Highlights HIGH-GRADE CONCENTRATE VERY LARGE RESOURCE Traditional processing or MEASURED & INDICATED direct leaching 2.36 Mt Ni (5B lb), 141 kt Co SIMPLE FLOWSHEET GRADE: 0.22% Ni, 0.013% Co Crush – grind – froth flotation INFERRED 2.48 Mt Ni (5B lb), 148 kt Co LOW CARBON Carbon sequestratio
Slide 6: PEA Summary
PEA Summary PRODUCTION HIGHLIGHTS 33,000 t/y Ni 18% Ni, 1% Co < 2.5 t CO2e/t Ni Average output LOM High-grade nickel sulphide in concentrate, low carbon footprint concentrate ECONOMIC HIGHLIGHTS US $1.4B US $0.5B US$2.81/lb. Ni Phase 1 Capital Cost Phase 2 Capital Cost Net operating cost average, in
Slide 7: Canadian Projects Comparison
Canadian Projects Comparison Project Turnagain Dumont Crawford Baptiste Study Status and Effective Date PEA – Nov 2020 Feasibility – Jul 2019 PEA – May 2021 PEA – Sep 2020 Recovered Ni - LOM 0.11% 0.12% 0.09% 0.10% Sale to Sale to or tolling by Sale to Sale to Proposed Product Destination sulphide s
Slide 8: Plans & Catalysts
Plans & Catalysts 2022 2024 2027-2028 2028-2055 Update resource model Feasibility Study Startup LOM Production average 33,000 t/y Ni Update metallurgical test work 1,800 t/y Co Conduct early optimization studies Environmental Assessment Acquire remaining geotechnical data PFS Engineering Goal: compl
Slide 9: 18% Ni Concentrate Product
18% Ni Concentrate Product § Multiple testwork campaigns: 15 to 21% Ni.1 Average of 5 Locked- § Low impurities such as arsenic, mercury, cadmium Cycle Tests1 Ni 19.7% § Suitable for PEA Base Case – smelting Co 1.2% § Suitable for direct pressure oxidation to produce Cu 0.46% refined nickel end produ
Slide 10: Mixed Hydroxide Precipitate (MHP)
Mixed Hydroxide Precipitate (MHP) Typical MHP Composition1 § MHP is a chemical form of nickel that is in extremely high demand from battery makers today § Testwork has proven that Turnagain concentrate is suitable for processing to MHP § Turnagain MHP quality is superior to currently available comme
Slide 11: Modern Tailings Management
Modern Tailings Management Efficient valley location minimizes dam construction Dam construction by centerline method, constructed from inert quarried rock or mined waste hard rock Tailings to be sub-aerial (dry beach), allowing mineral carbonation Low seismic risk Relatively low precipitation (~0.6
Slide 12: Nickel Prices are Historically Volatile
Nickel Prices are Historically Volatile § Orange line represents nominal dollars § Black line represents current dollars inflated to 2021 using compounded inflation. 12
Slide 13: Class One Nickel Is Getting Tight
Class One Nickel Is Getting Tight 13
Slide 14: Batteries Have Become the Second Largest Use of Nickel
Batteries Have Become the Second Largest Use of Nickel § Batteries consumed around 360kt of primary nickel, up from 200kt in 2020 § In 2017, batteries represented 3% of total nickel use 14
Slide 15: Li-ion Batteries - the Fastest Growing Source of Demand for Nickel
Li-ion Batteries - the Fastest Growing Source of Demand for Nickel 1.5 to 2.5 Mt/y1 of new battery-grade nickel could be required by 2040 for lithium-ion batteries alone. 40-70 new large mines would be needed 2040 to meet this demand. 1. Turnagain PEA (effective date Oct 28, 2020) 15
Slide 16: Battery Projects in North America
Battery Projects in North America § The supply chain for new giga factories is not yet resolved § 150,000 to 250,000 t/y incremental nickel is needed to supply the new projects § Actual demand depends on chemistry evolution and further project announcements Source: CIC energiGUNE 16
Slide 17: Nickel Operations in North America
Nickel Operations in North America § Canada has nickel mines, smelters, and refineries. RAGLAN, NUNAVIK (Mines) § Most current global VOISEY’S BAY production is unsuitable (Mine) for batteries. COREFCO (Refinery) LONG HARBOUR § New mines and processing (Refinery) are needed to make the right THOMPSO
Slide 18: Nickel Projects in North America
Nickel Projects in North America GIGA METALS § Turnagain is the largest 33 kt/year Class 1, Battery-Grade SILVER ELEPHANT potential project in 11 kt/year North America targeting battery-grade nickel FPX NICKEL 44 kt/year NORONT supply. Class 2, Stainless Steel 15 kt/year § To date, other large GRID
Slide 19: Nickel Price Sensitivity Analysis
Nickel Price Sensitivity Analysis § PEA Base Case nickel price of $7.50/pound § Post-tax NPV of -$443M § Skewed nickel price distributions result in larger upside benefit than downside risk § 10th, 25th, 50th, 75th, 90th percentile pricing reflected Derived from internal analysis using Turnagain PEA
Slide 20: Cumulative Cash Flow Comparison with HPAL
Cumulative Cash Flow Comparison with HPAL PEA Base Case nickel price of $7.50/pound: Turnagain project has a pre-tax IRR of 6.3% and an after-tax IRR of 4.9%. The cash-flow is presented on a pre-tax basis. Turnagain data is derived from the Turnagain PEA (effective date Oct 28, 2020) which includes
Slide 21: Comparison with Laterite Projects
Comparison with Laterite Projects TURNAGAIN PROSPECTIVE LATERITE § Open pit mine in hard rock § Strip mining soft deposits § Deep deposit minimizes mine deforestation § Thin deposits increase mine deforestation § Low erosion potential, pit water used/treated § High erosion potential, river/ocean con
Slide 22: Carbon Intensity of Nickel Processing
Carbon Intensity of Nickel Processing § Sulphide projects have lower carbon intensities § Upgrading of ores to concentrates § Sulphur is a fuel for smelting § Laterite processes treat entire orebody with chemical leaching or smelting è higher carbon intensity IEA, The Role of Critical Minerals in Cl
Slide 23: Emission Intensity of Probable Nickel Projects
Emission Intensity of Probable Nickel Projects Expected CO2 Intensity of Turnagain before sequestration1 1. Turnagain CO2 intensity is for nickel contained in concentrate and not to final refined product, excluding sequestration 23
Slide 24: Carbon Neutrality at Turnagain
Carbon Neutrality at Turnagain Annual Average GHG Emissions § Turnagain tailings will sequester CO2 2.50 (t CO2e/t Ni) 2.24 § Reaction with silicates creates carbonates, 2.00 locking away CO2 for millennia 1.50 § Testing by Dr. Greg Dipple (University of British Columbia) demonstrated stable 1.00 re
Slide 25: Board of Directors
Board of Directors Robert Morris, Director Mr. Morris is a former senior executive with Vale S.A., the largest nickel producer in the world, and most recently as Executive Vice President with global accountability for sales and marketing of Vale's base metals portfolio, Mark Jarvis, CEO, Chairman of
Slide 26: Capital Structure
Capital Structure Trading Symbols TSX.V: GIGA | OTCQX: HNCKF | FSE: BRR2 Capital Structure (Feb 15, 2022) Shares Outstanding 97,854,128 Total Warrants 28,372,224 Free Trading Warrants GIGA.WT, strike price $0.60, exp. Apr. 23, 2024 13,667,755 Free trading warrants GIGA.WT.A, strike price $0.45, exp.
Slide 27: Why Invest in Giga Metals?
Why Invest in Giga Metals? Large deposit: average of High-grade concentrate 40-70 new Turnagain- 33,000 t/y Ni for 37 years for standard processing scale projects needed or pressure oxidation in next 20 years Ethical nickel for batteries will be in short supply. Where will nickel supply for North Am
Slide 28: Let's Talk.
Let’s Talk. To book a meeting: click here Email: hmillar@gigametals.com Call: +1 (604) 681-2300 Suite 203 – 700 West Pender Street Vancouver, British Columbia Canada, V6C 1G8 www.gigametals.com