Northern Minerals Limited · ASX:NTU
Northern Minerals — Non-Deal Roadshow (May 2018)
37 slides from Northern Minerals's roadshow presentation, May 29, 2018
Slide 1: European Roadshow 2018
ASX:NTU MAY 29 – JUNE 1 2018 EUROPEAN ROADSHOW 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to thos
Slide 3: Rare Earths 2.0 – Strategically and Politically Critical
Rare Earths 2.0 – Strategically and Politically Critical 1992 2011 2018 “Saudi Arabia has oil, but China cuts rare earths exports “This executive order will prioritize reducing the nation’s vulnerability to China has rare earths” on South China Sea issues, disruptions in our supply of critical price
Slide 4: Rare Earths 2.0 - EVs not just a lithium story!
Rare Earths 2.0 - EVs not just a lithium story! Li Lithium Al Aluminium Co Cobalt Mg Magnesium Copper Cu C Graphite Ni Nickel Dysprosium Dy Fe Mn Mo V Neodymium Nd 4
Slide 5: Northern Minerals Browns Range
Northern Minerals Browns Range Rare earth distribution 1 1 Based on Wolverine Mineral Resource 5
Slide 6: Dysprosium
Dysprosium 66 98% Dy Production from China Lighter & More Efficient 162.5 35m 102g 3,500tpa Forecast EV Dysprosium per EV demand for Government sales by 2030 electric vehicle Dy by 2030 mandated change 6
Slide 7: Browns Range - Filling the Dysprosium supply gap
Browns Range - Filling the Dysprosium supply gap Even with motor efficiencies, the supply gap is growing and will require more Browns Range scale projects Source: Adamus Intelligence, Northern Minerals 7
Slide 8: HRE – sustainable pricing
2600 2400 Dysprosium Oxide 99%min China RMB/kg HRE – sustainable pricing 2200 2000 RMB/kg 1800 1600 1400 Increased demand from new EV sales coupled with 1200 1000 lower stockpiles and crackdown on illegal mining in 15/03/2013 15/03/2014 15/03/2015 15/03/2016 15/03/2017 15/03/2018 China will positive
Slide 9: Browns Range – An Eight Year $170m Journey
Browns Range – An Eight Year $170m Journey 9
Slide 10: Our Strategy – Building waves of momentum
Our Strategy – Building waves of momentum Stage 4 DOWNSTREAM Stage 3 • 10% of full scale capacity BUILD FULL SCALE • Production – July 2018 • Develop, mining, processing & offtake experience • 573tpa contained TREO • 72ktpa capacity beneficiation plant • 3,840tpa capacity Stage 2 hydrometallurgical
Slide 11: Three year pilot plant project
Stage 1: Test Three year pilot plant project 10% of full scale capacity Production – from June 2018 Develop, mining, processing & offtake experience 573tpa contained TREO 72ktpa capacity beneficiation plant 3,840tpa capacity hydrometallurgical plant 11
Slide 12: Three year pilot plant project May 2017
Stage 1: Test Three year pilot plant project Pilot Plant Site May 2017
Slide 13: Commissioning of crushing circuit commenced May 2018
In May 2018, Northern Minerals commenced commissioning of crushing circuit In September 2018, we will commence a new supply of heavy rare earths to the global market
Slide 14: Pilot Plant Flowsheet
Stage 1: Test Pilot Plant Flowsheet MINING STOCKPILES CRUSHING MILL & MAG SEP Components and equipment unloaded in Darwin RE CARBONATE WATER LEACH SULPHATION BAKE FLOT & TAILS 14
Slide 15: Operational readiness
Stage 1: Test Operational readiness • • • • •
Slide 16: Project Development Schedule
Stage 1: Test Project Development Schedule Apr ‘17 Jun ‘17 Sep ‘17 Dec ‘17 Mar ‘18 Jun ‘18 Final Investment Decision Mining completed, ore stockpiled Fabrication 98% Plant modules complete in China transported to Australia Commencement of Testing & Site preparation module installation Commissioning
Slide 17: Pilot plant: targeted production
Stage 1: Test Pilot plant: targeted production Mixed RE carbonate (REC) produced Product specification available for REC REC samples validated by several downstream separators REC suitable for solvent extraction separation Low thorium and uranium levels First shipment planned for September quarter F
Slide 18: Secure Sales Agreement
Stage 1: Test Secure Sales Agreement 100% of Browns Range Pilot Plant production to be purchased by Lianyugang Zeyu New Materials Sales Co Ltd (JFMAG), a 51% owned subsidiary of Guangdong Direct shipping Rare Earths Group. route from Wyndham or Darwin to Lianyungang, • Terms based off CIF Incoterms
Slide 19: Financing
Stage 1: Test Financing $10 million Sales Agreement Prepayment** $24.5 million R&D Financing Facility - Available $11 million $3 million Sinosteel Deferred Lind Financing Payment* Facility*** - available $11 million Lind Financing $13.5 million Facility*** - drawn R&D Financing Facility - down Drawn
Slide 20: Training-to-Work Facility
Stage 1: Test Training-to-Work Facility • Northern Minerals has partnered with The Wunan Foundation for the establishment of an $8.1 million indigenous training-to-work facility at Browns Range. • The Federal Government, under the Building Better Regions Fund (BBRF) has provided funding of $4.8 mill
Slide 21: Refine the project
Stage 2: Refine Refine the project Reduce mining cost - modify mining method Boost production – increase head grade Develop premium product – yttrium rejection Funding plan for progressing initiatives 21
Slide 22: Enhancement projects underway
Stage 2: Refine Enhancement projects underway 205,000t ore mined at Wolverine and Gambit West; Steeper walls employed, resulting in more ore and less waste; Funding secured to investigate this and other project enhancement initiatives for potential larger scale project. Opportunity to increase grade
Slide 23: Full scale operation
Stage 3: Full Scale Full scale operation 300,000kg Dysprosium production per annum 3,000,000kg TREO per annum Significant dysprosium supplier Initial 11 year life with significant upside through exploration 23
Slide 24: Blue sky potential
Stage 3: Full Scale Blue sky potential The Browns Range dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored JORC Resource supporting an 11 year full scale operation ICEMAN Exploration target to add additional 9 years of JOR
Slide 25: Beyond Browns Range
Stage 3: Full Scale Beyond Browns Range Rock chip samples from the Boulder Ridge project confirm high- Rock chip samples up to 42% TREO with approximately 95% Heavy REO grade Heavy Rare Earths (HRE) Preliminary metallurgical tests indicate excellent recovery rates (>90%) Best results exceed 12% TREO
Slide 26: Downstream Opportunities
Stage 4: Downstream Downstream Opportunities Downstream separation of heavy rare earth elements Production of dysprosium oxide and terbium oxide Wider potential customer base Additional value capture Funded plan to investigate downstream opportunities 26
Slide 27: Investigating separation technologies
Stage 4: Downstream Investigating separation technologies Initially investigating heavy rare earth separation 27
Slide 28: Key personnel and partners
Corporate Key personnel and partners Key Site Personnel: Eben Van Rooyen – Resident Manager Tony Hadley – General Manager Louis de Klerk – R&D Manager George Bauk Managing Robin Jones Director/CEO Chief Operating Officer Bin Cai Executive Officer Mark Tory Robin Wilson Chief Financial Exploration Of
Slide 29: Corporate Overview
Corporate Corporate Overview Northern Minerals Limited Share Price Performance 9.0 0.16 8.0 0.14 7.0 0.12 Share Price ($/share) 6.0 0.10 Volume (m) 5.0 0.08 4.0 0.06 3.0 0.04 2.0 1.0 0.02 0.0 0.00 09 May 06 Jun 04 Jul 01 Aug 29 Aug 26 Sep 24 Oct 21 Nov 19 Dec 16 Jan 13 Feb 13 Mar 10 Apr 08 May 17 17
Slide 30: 2018 – Delivering on potential
Corporate 2018 – Delivering on potential 30
Slide 31: In conclusion
Corporate In conclusion • Pilot plant production to commence in June 2018 • Three year project to demonstrate and assess economic and technical feasibility of full scale operation • Process commenced on separation • Browns Range on track to be a globally significant supplier of dysprosium • Quality
Slide 32: Delivering critical technology metals to the EV evolution
Delivering critical technology metals to the EV evolution ASX:NTU
Slide 33: Appendices
APPENDICES Heavy Rare | <q Earths > ASX:NTU ad ae all NORTHERN MINERALS Powering Technology northermminerals con at , i * ’ i> > i
Slide 34: NTU Board
NTU Board Colin McCavana - Non-executive Chairman (appointed 2006) Mr McCavana has more than 35 years of management experience worldwide in the earthworks, construction and mining industries. George Bauk - Managing Director / CEO (appointed 2010) George is an experienced executive, with over 25 year
Slide 35: Mineral Resources
Mineral Resources 1 – Rounding may cause some computational discrepancies (TREO (metal) tonnes estimated from Mt x TREO%) Mineral resources as per NTU announcement 2 March 2015 in relation to increased reserves. 35
Slide 36: Ore Reserves
Ore Reserves Ore reserves as per NTU announcement 2 March 2015 in relation to increased reserves. 36
Slide 37: The Northern Minerals SPIRIT
The Northern Minerals SPIRIT 37