Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (April 2023)
36 slides from Canada Nickel's investor presentation, April 2023
Slide 1: Canada Nickel Company: Delivering the Next Generation of Nickel
Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC April 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC”). Forward looking information includes, but is not limited to, the results of the Crawf
Slide 3: Summary
Summary Canada Nickel is the leader in the next generation of large scale nickel supply and one of few new sources of potential supply outside Indonesia/China Nickel market fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China – potential supercyc
Slide 4: Management and Board
Management and Board Mark Selby ▪ Previous CEO of Royal Nickel Corporation David Smith ▪ Senior VP, Finance and CFO of Agnico Eagle Mines CEO ▪ Corporate development, strategy, business planning Chair Limited; B.Comm. and market research Executive with Quadra Mining P.Eng., C.Dir. ▪ Chartered Direct
Slide 5: Capital Structure and Analyst Coverage
Capital Structure Analyst Coverage Share Price Performance Pro Forma Capitalization as of April 5, 2023 Ticker TSXV: CNC Share Price (C$) $1.58 Basic Shares Outstanding (M) 136.6 Market Capitalization (C$M) $216 Total Debt (C$M) $0 (1) Cash & Equivalents (C$M) $30 Market Data 20-Day VWAP (C$) $1.81
Slide 6: Nickel Demand Growth Accelerating from EVs
Nickel Demand Growth Accelerating from EVs Nickel demand growth continues to be underestimated – up 17% in 2021 (3-5X other base metals) and forecasted by CNC to double by 2030 to 5+ Mt. Corporate activity accelerating and EV companies pursuing offtake. Global Nickel Demand (Mtpa) 2020, 2021 & 2030
Slide 7: Tesla: "Please mine more nickel…"
Tesla: “Please mine more nickel…” Recognition of environmental footprint issues “…please mine more nickel... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call Ju
Slide 8: Crawford Nickel Sulphide Project Location & Infrastructure
Crawford Nickel Sulphide Project Location & Infrastructure One of the largest nickel sulphide resources located in a well-established mining camp with infrastructure ▪ Major support infrastructure in place ‒ Roads, power, water ‒ Rail connection ▪ Rich mining history and skilled, local workforce ▪ L
Slide 9: Crawford PEA Highlights
Crawford PEA Highlights The Crawford PEA demonstrates strong financial returns based on a large resource with significant upside potential. Robust ▪ US$1.2 billion after-tax NPV8% Economics ▪ 16% after-tax IRR ▪ 42ktpa nickel at peak production (Phase III), 34ktpa nickel LOM Large Scale, ▪ 842kt of
Slide 10: Net C1 Cash Costs (US$/lb)
Crawford: 1st Quartile Net Cash Cost Producer Based on PEA results, Crawford is expected to be a low-cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs. Crawford's Net C1 Cash Cost vs 2020 Net C1 Cash Cost of Global Nickel Operations $10 Net C1 Cash Costs (US$/lb) Crawford
Slide 11: Crawford: Low Carbon Footprint
Crawford: Low Carbon Footprint Crawford estimated to produce 2.8 tonnes CO2 per tonne of nickel equivalent production: 89% lower than industry average of 34 tonnes of CO2 based on Skarn E0. Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t NiEq) Crawford 2.8 Source: Skarn Associates Q2-2022. E0 b
Slide 12: Fifth Largest Nickel Sulphide Project Globally (M&I Only)
Fifth Largest Nickel Sulphide Project Globally (M&I Only) Crawford contains the 5th largest nickel sulphide resource globally based on Measured & Indicated resources. 12
Slide 13: Crawford Nickel Sulphide Project
Crawford Nickel Sulphide Project Crawford is expected to be among the Top 5 nickel sulphide operations globally, based on PEA results.* Largest Nickel Sulfide Operations by 2020 Annual Production (kt of Nickel / Year) 208 77 75 43 42 (2) 36 33 30 29 Kola (1) Polar (1) Jinchuan Nickel West (1) Sudbur
Slide 14: Crawford Nickel Sulphide Project
Crawford Nickel Sulphide Project Crawford is expected to be one of the largest base metal mines in Canada based on PEA results.* Largest Canadian Base Metals Mines by 2020 Annual Ni-eq Production(1) (kt of Nickel Equivalent / Year) Nickel Iron Chromium PGEs Cobalt Copper Zinc Molybdenum Precious Met
Slide 15: Additional Value Opportunities
Additional Value Opportunities 1 Resource Expansion 2 Recovery Optimization 3 NetZero Carbon Footprint Updated Mineral Resource Estimate Determine the carbon capture Doubled Measured & Indicated Optimization of nickel, iron, chrome potential from the carbon Resources at Crawford. recovery and concen
Slide 16: Updated Mineral Resource Estimate doubled M&I mineral resources at Crawford
Updated Mineral Resource Estimate doubled M&I mineral resources at Crawford ▪ Drilling completed during 2021 and early 2022 joined the two previously isolated sections of mineralization in the East Zone; higher grade mineralization continues at depth beyond the current resource as tested by hole CR2
Slide 17: Flowsheet Enhancements Delivered Substantial Metallurgical Improvements
Flowsheet Enhancements Delivered Substantial Metallurgical Improvements Latest locked cycle test delivered 62% total nickel recovery – 10 percentage points better than the PEA – and improvements in cobalt recovery, and iron grades & recovery. Improved Nickel Recoveries in the Open Circuit ▪ Results
Slide 18: Accelerated Carbon Capture Achieves NetZero Carbon and Generates Substantial CO2 Credits
Accelerated Carbon Capture Achieves NetZero Carbon and Generates Substantial CO2 Credits Canada Nickel’s simple carbon capture approach – IPT Carbonation or In-Process Tailings Carbonation – utilizes tailings directly from the mineral processing circuit and conditions them with CO2 for a brief perio
Slide 19: Crawford Producing Two Nickel Concentrates + Iron Concentrate
Crawford Producing Two Nickel Concentrates + Iron Concentrate Crawford will produce two nickel concentrates, including a high grade concentrate expected to be the highest grade nickel concentrate at 35% nickel, and an iron concentrate containing chrome 2020 Concentrate Grade (% Ni and % Co) for Glob
Slide 20: Texmont Mine Acquisition: Near Term Production Potential
Texmont Mine Acquisition: Near Term Production Potential ▪ In December 2022, Canada Nickel announced an agreement to acquire the past producing Texmont mine situated between the Company’s Deloro and Sothman properties south of Timmins (Ontario). ▪ Provides potential for near-term open pit production
Slide 21: Permitting Milestone: Successful Completion of First Phase of Federal Permitting
Permitting Milestone: Successful Completion of First Phase of Federal Permitting “Taykwa Tagamou Nation is proud of the partnership we have with Canada Nickel. This innovative model of applying Traditional Knowledge through a land use study enables our community to both understand the project’s Succ
Slide 22: Unlocking the Timmins Nickel District
Unlocking the Timmins Nickel District Potential Zero-Carbon Nickel District A substantial new nickel district has been consolidated through 18 transactions to acquire or earn into 13 additional nickel targets ▪ 42km2 of ultramafic/mag highs – 50X the scale of 0.85 km2 mag anomaly footprint of Crawfo
Slide 23: Regional Exploration Success – Reid with Larger Footprint than Crawford
Regional Exploration Success – Reid with Larger Footprint than Crawford ▪ Current drilling confirms large scale discovery at Reid – delineated mineralized footprint already 90% of Crawford footprint of 1.6 km2 ▪ Additional assays confirm large higher-grade interval at Reid – REI22-07: 325 metres of
Slide 24: Really?? A New Nickel District?
Really?? A New Nickel District? ▪ Nickel resources are very concentrated in just 6 regions – East half Sulawesi (Indonesia), Sudbury (Canada), Taimyr Peninsula (Russia), Eastern Goldfields (Australia), Bushveld (southern Africa), Surigao/Palawan (Philippines), Jinchuan (China) – The transactions dem
Slide 25: Corporate Activity in Nickel Accelerating
Corporate Activity in Nickel Accelerating In June 2020, BHP acquired the Honeymoon Well project from Norilsk Nickel. The tenements are located 50km ` from BHP’s Mt. Keith operation lying in the prolific Agnew-Wiluna greenstone belt; contains estimated 173Mt of M&I resource grading 0.68% nickel. In O
Slide 26: New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations
New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations Voisey’s Multiple Nova Asset Cosmos Crawford Bay Mines Bollinger Target: Acquirer: Acquisition C$4.5 A$3.1 C$6.8 A$1.8 ??? Value: billion billion billion billion Acquisition Year: 1996 2007 2007 2015 ??? (1) EV / Nickel C$2
Slide 27: Summary: Investment Highlights and 2023 Catalysts
Summary Investment Highlights 2023 Catalysts ▪ Nickel market entering “supercycle” by mid-decade driven by EV demand ✓ Strategic Investor ▪ Recent nickel supply growth largely “dirty nickel” - ✓ Appointment of Debt Advisors little visibility on supply growth outside Indonesia ▪ Crawford largest nick
Slide 28: Appendix
zg) CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 29: Measured and Indicated Resource More Than Doubled
Measured and Indicated Resource More Than Doubled ▪ Updated mineral resource estimate more than doubles Measured & Indicated resources to 1.4 billion tonnes at 0.24% nickel plus a further 670 million tonnes of Inferred resources at 0.23% nickel. ▪ In less than three years from initial discovery, we
Slide 30: Crawford PEA Operating Costs & Capex
Crawford PEA Operating Costs & Capex Three phase production plan peaks at nickel production of 42ktpa with a life-of-mine AISC of US$1.94/lb ($4,300 per tonne) Unit Phase I Phase II Phase III Life-of-Mine (Years 1 – 3.5) (Years 3.5 – 7) (Years 8 – 18) (Years 1 – 25) Mill Capacity ktpd 42.5 85 120 10
Slide 31: Current Downstream Path to Stainless Steel; Future Path Likely to Include Path to EV
Current Downstream Path to Stainless Steel Future Path Likely to Include Path to EV ▪ Nickel, iron and chromium are three key alloying US Stainless Conversion Margins metals in the production of stainless steel, which (US$/lb Nickel) vs makes Crawford products suitable feeds Nickel Sulphate Premiums
Slide 32: Crawford PEA Detailed Summary
Crawford PEA Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 7) (8 - 18) (Years 1 - 25) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,188 $543 $194 $1,925 Sustaining & Closure US$ millions / year $68 $73 $51 $44 Min
Slide 33: Crawford PEA Operating Cost Summary
Crawford PEA Operating Cost Summary Phase I Phase II Phase III Life-Of-Mine Operating Costs (Years 1 - 3.5) (Years 3.5 - 7) (Years 8 - 18) (Years 1 - 25) ($ / tonne milled) US$ C$ US$ C$ US$ C$ US$ C$ Labour $2.39 $3.19 $1.49 $1.98 $1.20 $1.60 $1.26 $1.68 Consumables $2.49 $3.31 $2.35 $3.14 $2.30 $3
Slide 34: Crawford PEA Sensitivities
Crawford PEA Sensitivities Delta NPV8% Delta IRR Delta Net C1 Cash Cost (US$ millions) (%) (US$ / lb) Sensitivity ‒ + ‒ + ‒ + Nickel Price ±$1/lb ($445) $435 (2.8%) 2.6% n.a. n.a. ($6.75/lb - $8.75/lb) Nickel Price ±10% ($342) $341 (2.1%) 2.0% n.a. n.a. ($6.98/lb - $8.53/lb) Iron Price ±10% ($101) $
Slide 35: A New Nickel District – Hiding in Plain Sight… Other Properties
A New Nickel District – Hiding in Plain Sight… Other Properties Canada Nickel’s recent district consolidation positions it to become the leader of the third generation of nickel supply – large, scalable, zero carbon potential – located in one of the best mining jurisdictions in the world in proximit
Slide 36: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com www.canadanickel.com Twitter: @CanadaNickel
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