Fpx Nickel Corp · TSXV:FPX
Fpx Nickel — Investor Presentation (March 2022)
36 slides from Fpx Nickel's investor presentation, Mar 11, 2022
Slide 1: Nickel for the 21st Century
Nickel for the April st 2021 21 Century TSX-V: FPX OTCQB: FPOCF Q1 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward looking statements” within the meaning of “forward looking information” under applicable Canadian securities laws, concerning the business, operations and financial performance and condition of FPX Nickel Corp. (“FPX Nickel”, “th
Slide 3: Decar Nickel District hosts the Baptiste Project
FPX’s Decar Nickel District hosts the Baptiste Project – one of the world’s best development-stage nickel projects ● Large Resource, Long Life ● Low Projected Costs ● High-Value, Strategic Nickel Product ➢ Projected to be among world’s 10 ➢ Potential for lowest quartile ➢ High-grade nickel product (
Slide 4: Nickel Demand Set for Exponential Growth
Nickel Demand Set for Exponential Growth Electric vehicles to drive significant demand growth for decades to come Glencore foresees 3.7X growth in nickel demand by 2050 as compared to 2019 levels Source Glencore 4
Slide 5: The Case for Nickel
The Case for Nickel Global Refined Nickel Supply/Demand and Price 300 $20.00 250 Forecast $18.00 200 $16.00 150 $14.00 100 000s Tonnes 50 $12.00 US$ /lb - $10.00 (50) $8.00 (100) $6.00 (150) $4.00 (200) (250) $2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 6: Decar Nickel District
Decar Nickel District Unique Opportunity to Develop a Fully-Integrated Nickel Operation Strategic Product ● High-value, clean Ni product bypasses smelters to achieve high payability ● Direct integration into both the stainless steel and EV battery markets Baptiste Nickel Mine ● Low-carbon footprint
Slide 7: Excellent Location – Central British Columbia
Decar Nickel District Excellent Location – Central British Columbia ● Road accessible ● 5 km to rail line ● 100 km to hydro- power grid Blackwater Au Project: Receipt of federal & provincial environment assessment certificates in 2019 7
Slide 8: Decar Nickel District (245 km2)
Decar Nickel District (245 km2) Van Target • Drill-ready target • Surface samples up to 0.16% DTR Ni 1 • Exploration target ~3 km2 B Target • 1 hole drilled, 1.7 km from Sid, 263m of 0.132% DTR Ni 1 • Open along strike and at depth Areas 1-5 Prospective areas slated for surface 1. DTR = Davis sampli
Slide 9: Baptiste Deposit – 2020 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2020 Mineral Resource Estimate Area of 2017 Drilling 2020 PEA Ultimate Pit 500m - 2020 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Significantly improves Baptiste mine plan by incorporating nea
Slide 10: Baptiste Deposit – 2020 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2020 Mineral Resource Estimate * Davis Tube Recoverable Nickel”; 0.06% cut-off Davis Tube Recoverable (“DTR”) Ni Content Category Tonnes (000’s) 2020 estimate dated September 9, 2020 % Ni Tonnes Ni Pounds Ni (000’s) by GeoSim Services Inc. Mineral Indicated 1
Slide 11: Significant New Discovery at Van Target
Significant New Discovery at Van Target • 2021 Maiden Drill Program • Van Target measures ~2.5 km2 based on 54 bedrock surface samples • ~35% of surface samples in Van Target area grading over 0.12% DTR Ni • Van Target located 6 km north of Baptiste and remains open to the east • Baptiste Target was
Slide 12: New Discovery at Van Target – Holes 1 & 2
New Discovery at Van Target – Holes 1 & 2 • First seven show that strong mineralization in previously reported outcrop samples continues to depth, with higher-grade Ni grades near- surface • 21VAN-001: 101 m at 0.150% DTR nickel (0.207% total nickel), starting at an approximate vertical depth of 27
Slide 13: Decar Nickel District – Mineralization
Decar Nickel District – Mineralization Awaruite – Naturally-Occurring Nickel-Iron Alloy ● Targets are large-scale and near-surface ● Disseminated nickel mineralization ● Consistent grade and grain size distribution ● Highly magnetic ● Very dense (8.2 gm/cc) ● No sulphur in mineral or host rock Formu
Slide 14: Baptiste Project Simplified Flowsheet
Baptiste Project Simplified Flowsheet & Current Met Program Objectives High recoveries, high grade Clean process, clean products Simple, two-stage process products ➢ Magnetic separation ➢ 85% recovery of DTR Ni grade ➢ Non acid-generating host rock ➢ Conventional flotation ➢ Ni concentrate grading 6
Slide 15: An Integrated Nickel Operation for the 21st Century
An Integrated Nickel Operation for the 21st Century Premium Nickel Product Suitable for Stainless Steel or Electric Vehicle Battery Markets Concentrate (63% Ni, 30% Fe, 1% Co) Conventional briquetting Leaching under moderate conditions Stainless Steel Market – EV Battery Market – Ferronickel Briquet
Slide 16: Baptiste Nickel Briquette – Premium Product
Baptiste Nickel Briquette – Premium Product FPX FeNi briquette to yield high payability given similarity to NPI & Ferronickel Global Nickel Products -- Ni Content & Payability (% LME Nickel Price) Sulphide Concentrate (~15% Ni) Baptiste FeNi Briquette (~63% Ni, ~30% Fe) Ferronickel (~30% Ni, ~70% Fe
Slide 17: Baptiste Ni Concentrate Feed for EV Battery Market
Baptiste Ni Concentrate Feed for EV Battery Market ➢ Leach testing confirms the potential for production of nickel sulphate and cobalt sulphate from Baptiste’s awaruite mineralization. ➢ Simple 3-stage process, with potential to be more efficient than the typical 5-stage processes required to conver
Slide 18: Baptiste Project – 2020 PEA
Baptiste Project – 2020 PEA Confirms Baptiste as one of the world’s most robust large-scale nickel projects Results Pre-tax NPV (8% discount rate) $2.93 billion Pre-tax IRR 22.5% Payback period (pre-tax) 3.5 years After-tax NPV (8% discount rate) $1.72 billion After-tax IRR 18.3% Payback period (aft
Slide 19: Baptiste Project – 2020 PEA
Baptiste Project – 2020 PEA Operating expenditures (US$/t milled) Phase 1 Phase 2 Total Estimated Average LOM OPEX Yr 1 - 21 Yr 22 - 35 LOM Mining $2.28 $2.66 $2.43 Mineral Processing $2.71 $2.91 $2.79 Briquette Transport $0.19 $0.18 $0.19 Rail Terminal and Access Road $0.05 $0.05 $0.05 General Site
Slide 20: Baptiste Project – 2020 PEA
Baptiste Project – 2020 PEA Confirms potential for lowest quartile position on nickel cost curve Global Nickel Market Cost Curve Baptiste C1 $2.74/lb Source: Wood Mackenzie, RBC Capital Markets All figures in US$ C1 operating costs are the costs of mining, milling and concentrating, on-site administ
Slide 21: Low initial capital intensity compared to other nickel mines
Decar Nickel District – Baptiste Project Low initial capital intensity compared to other recent large nickel mines US$ capital cost per tonne annual Ni production $92,000 $83,000 $79,000 $73,000 $60,000 $56,000 $53,000 $37,000 Baptiste (Canada) Barro Alto Ramu Onca Puma Goro Ravensthorpe Koniambo Am
Slide 22: Overview of Global Nickel Projects
Overview of Global Nickel Projects Baptiste stands out as a large, low-cost, long mine life nickel asset G l o b a l N i c ke l P r o j e c t s R a n ke d b y S i ze , C 1 O p e rat i n g C o s t & M i n e L i fe $5.00 Sunrise $4.50 High Cost, Short Mine Life (Australia) Crawford Turnagain $4.00 Kun
Slide 23: Overview of Global Nickel Projects
Overview of Global Nickel Projects Decar’s Baptiste Project ranks highly among global nickel projects Ratio of Mine Life to Payback (After-Tax) for Selected Nickel Projects - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Baptiste, Canada, FPX Nickel 8.8 Araguaia, Brazil, Horizonte Minerals 6.7 35-year mi
Slide 24: Overview of Global Base Metals Projects
Overview of Global Base Metals Projects Decar’s Baptiste Project ranks highly among global base metals projects Strategic Value Index - Ratio of Mine Life to Payback (After-Tax) - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Taylor, USA, South 32, Zn 18.1 Alpala, Ecuador, Solgold, Cu 12.9 Kamoa-Kak
Slide 25: Global Base Metals Projects – P/NPV
Global Base Metals Projects – P/NPV FPX Nickel has significant potential upside to re-rate to the peer group on P/NPV basis P/NPV - Base Metals Filo del Sol, Chile/Argentina, Filo, Cu 1.10 Tamarack, USA, Talon Metals, Ni 0.59 Araguaia, Brazil, Horizonte Minerals, Ni 0.38 Arctic, USA, Trilogy, Cu 0.2
Slide 26: Baptiste – The Green Choice for Nickel
Baptiste – The Green Choice for Nickel Baptiste Ni production to have lowest carbon intensity in global nickel market Estimated Carbon Footprint Tonnes CO2/Tonne Refined Ni produced 80.00 69.00 70.00 60.00 50.00 45.00 40.00 30.00 27.50 20.00 10.00 7.19 2.40 - FPX Baptiste Nickel Class 1 Nickel Class
Slide 27: Baptiste – The Green Choice for Nickel
Baptiste – The Green Choice for Nickel Low-strip ratio and production of Ni product with no smelting required allows Baptiste Ni production to have significantly lower carbon intensity than sulphide Ni production Estimated Carbon Footprint Tonnes CO2/Tonne Refined Ni by Stage of Production 8.00 7.19
Slide 28: Baptiste – A Potential Low-Carbon Mine
Baptiste – A Potential Low-Carbon Mine Baptiste offers a tremendous opportunity for lowering the carbon footprint of nickel - Baptiste mill waste (brucite) naturally sequesters CO2 - Generates a possible carbon benefit under the B.C. carbon tax - Binding and cementation of tailings has numerous co-b
Slide 29: 2022 – Focus on Growth & Discovery
2022 – Focus on Growth & Discovery Dual-track strategy for Baptiste project development and Van Target drilling Baptiste Project Development Toward PFS • Prefeasibility metallurgical test program and pilot testing, including optimization of key parameters and production of key products: • Ferronicke
Slide 30: Decar Nickel District – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Near-Surface Consistent Grade Conventional Open Pit • Consistent grade with low Mining variability • Bulk mining operation • Higher-grade near-surface zone • Truck and shovel for starter pit • Low strip ratio 0.40:1 Large Resource with C
Slide 31: Decar Nickel District – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Low Capital Intensity High-Value Nickel Product • Low capital intensity compared • High-grade Ni product (63% Ni) to recent Ni projects with low impurities • ~US$37K/t annual Ni output • Suited for direct feed to (2020 PEA) stainless ste
Slide 32: Decar Nickel District – Ticking all the boxes
Decar Nickel District – Baptiste Project Ticking all the boxes Excellent Jurisdiction Excellent Local Relationships • British Columbia rated 2nd most • Signed MOU and strong attractive mining jurisdiction in relationship with First Nations world by Mining Journal (2017) • Local community involvement
Slide 33: Share Structure & Financial Position
Share Structure & Financial Position Recent Price: C$ 0.60/share FPX (TSX-V): 2019-2022 Price Chart (C$/share) ➢ 52-week Range: C$ 0.42 – C$ 0.94 ➢ Market Capitalization: ~ C$ 125 million ➢ Average daily volume: ~ 300,000 shares Shares Outstanding ➢ Basic: 213.6 million ➢ Fully Diluted: 231.6 millio
Slide 34: Management
Management ● Martin Turenne – President, CEO & Director ➢ Executive with over 20 years’ experience in the commodities industry, including over 10 years in the mining industry ➢ Formerly CFO of FPX Nickel from 2012 to 2015 ➢ Formerly with KPMG LLP and Methanex Corporation ➢ Chartered Professional Acc
Slide 35: Board of Directors
Board of Directors ● Peter Bradshaw – Chairman ➢ Exploration geologist with 45 years experience with Barringer Research, Placer Dome and Orvana Minerals ➢ Key Discoveries/projects: Porgera, Kidston, Misima, Omai, Decar ➢ Member, Canadian Mining Hall of Fame ● Peter Marshall ➢ Mining engineer with 30
Slide 36: FPX Nickel Corp. contact details
FPX Nickel Corp. Suite 320 – 1155 West Pender Street Vancouver, BC Canada V6E 2P4 Phone: +1 604-681-8600 TSX-V: FPX OTCQB: FPOCF www.fpxnickel.com info@fpxnickel.com Twitter: @FPX_Nickel 36