Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q1 2019 Earnings Presentation
25 slides from Nordic Mining Asa's earnings presentation, May 10, 2019
Slide 1: Minerals for a sustainable future – Q1 2019 presentation
Minerals for a sustainable future OAX: NOM Q1 2019 presentation Oslo, 10 May 2019
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. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A
Slide 4: Highlights
Highlights • Record group profit due to value increase in NM’s Keliber asset • All major test works completed for Engebø • Engebø DFS progressing into the final phase • Engebø garnet performs in line with premium products • Positive market outlooks
Slide 5: Close to construction of two strategic assets
Close to construction of two strategic assets Engebø Rutile and Garnet (100%) • Large resource base • Long term industrial partners • First European producer of garnet • Post tax NPV of USD 305m Keliber – Lithium hydroxide (18.5%) • First European producer • Large resource potential • Scalable produ
Slide 6: Engebø Rutile and Garnet
Engebø Rutile and Garnet Large outcropping deposit, next to tidal waters Unique mineral properties, solid market fundamentals Minimum ore haulage, effective mining concept Robust project economics, short payback period Environmental permit granted International offtake partners 6
Slide 7: Agenda
1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A
Slide 8: Consolidated income statement
Consolidated income statement Q1-2019 Q1-2018 (Amounts in NOK million) Unaudited Unaudited Sales - - • Operating loss reflects the cost of Payroll and related costs (4,3) (1,9) ongoing DFS activities Depreciation and amortisation - - • Gain on investment of NOK 98m Other operating expenses (10,9) (1
Slide 9: Consolidated statement of financial position
Consolidated statement of financial position 31.03.2019 31.12.2018 (Amounts in NOK million) Unaudited Audited ASSETS Evaluation and exploration assets 25,7 25,6 • Shareholding in Keliber reclassified Property, plant & equipment 0,4 0,2 from associate to financial asset Financial assets 113,1 - Inves
Slide 10: Financing plan
Financing plan • Capital requirement to complete Engebø DFS; approx. NOK 40m • Completion of DFS represents a key milestone for de-risking of the Engebø project and will form the basis for further financing • Key options under assessment: o Divestment o Strategic investor/offtake partners o Private
Slide 11: Agenda
1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A
Slide 12: Project development – DFS in final phase
Project development – DFS in final phase All major process test work completed Engineering progressing on all working areas Requests for Quotation (RFQ) ongoing Regulation plans for minesite and water supply released for public hearing Engebø garnet performance tests completed Offtake discussions pr
Slide 13: Major test work completed; Product performance tests
Major test work completed • Test work programs completed: - Bulk program - Validation program - Variability program • Flow sheet optimized with regard to rutile and garnet Product performance tests • Product tests of garnet carried out with full scale water jet cutting equipment • Engebø garnet prod
Slide 14: Engineering is progressing in all working areas
Engineering is progressing in all working areas • Process flow diagrams and P&IDs generated • 3D modelling of underground crushing chamber, service area and haul roads completed • 3D modelling of process modules commenced • Detailed specifications of equipment packages in final stage • Initial const
Slide 15: Regulation plans on public hearing; Process plant site layout optimized
Regulation plans on public hearing • The zoning plan for fresh water pipeline has been sent on hearing in two municipalities, Askvoll and Naustdal • Detailed regulation plan for the mine site has been issued for hearing in the Naustdal municipality Process plant site layout optimized • Logistics for
Slide 16: Local stakeholder communication
Local stakeholder communication • Meetings with local municipalities, political parties and politicians • Project briefings with potential local vendors • Participation at relevant regional conferences and business fora • Site visits and presentations for students • Engaging the local community in e
Slide 17: DFS Progress overview
DFS Progress overview Activities 2019 Q1 Q2 Q3 Q4 Mining studies Mining optimization schedule Process testwork Engineering Procurement/RFQs Construction execution plan Capex estimate Opex estimate Risk management / QRA Final economic analysis DFS report Today Cost Economic Test work Engineering RFQs
Slide 18: Offtake discussions progressing
Offtake discussions progressing Rutile • Heads of Agreement for rutile offtake and financing Heads of • Comprising offtake for the majority of the rutile production agreement with • Intention to participate with a substantial portion of the Japanese trading construction financing house • Engebø ruti
Slide 19: Rutile prices forecasted to increase with growing demand
Rutile prices forecasted to increase with growing demand Global rutile demand has outpaced supply….. …..driving rutile prices up US$ 1,118/tonne FOB (Real 2018$) 19
Slide 20: Nearing construction and production
Nearing construction and production 20
Slide 21: Agenda
1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A
Slide 22: First producer of battery-grade lithium hydroxide in Europe
First producer of battery-grade lithium hydroxide in Europe Lithium-ion gigafactories in Europe Yearly demand from European gigafactories 8GWh in 2020 By 2023 2 GWh 32 GWh in 2023 4 GWh Gigafactories are 1 Gwh Planned to triple capacity demands expected to 0.8 kt of demand 73 kt LCE lithium per year
Slide 23: Solid project economics in updated DFS
Solid project economics in updated DFS Increased NPV by switching output to hydroxide Keliber ownership as of April 2019 • Aiming to be the first European company to produce high-purity lithium hydroxide from its own ore • Six deposits in one of the most significant lithium bearing areas in Europe •
Slide 24: Agenda
1. Introduction 2. Financial update 3. Engebø Rutile and Garnet 4. Keliber Oy Lithium 5. Q & A
Slide 25: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 2 5