Giga Metals Corporation · TSXV:GIGA
Giga Metals — Investor Presentation (October 2018)
22 slides from Giga Metals's investor presentation, October 2018
Slide 1: Battery Metals for a Clean Energy Future
Battery Metals for a Clean Energy Future October 2018 TSX-V: GIGA Frankfurt: BRR2 Among the largest undeveloped nickel-cobalt sulphide deposits in the world www.GIGAMETALS.com Frankfurt: BRR2 TSX.V GIGA
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: Transformative Sale of Net Smelter Return (NSR)
Transformative Sale of Net Smelter Return (NSR) • Giga Metals recently sold a 2% NSR on future cobalt and nickel production at the Turnagain Project to Cobalt 27 Capital Corp. (TSX.V – KBLT) for US$1 million in cash and 1,125,000 shares of KBLT1. • The US$10 million in consideration1 was higher than
Slide 4: Core Project: Turnagain
Core Project: Turnagain ▪ NI 43-101 resource containing: Measured & Indicated 4.1 billion pounds of nickel and 253 million pounds of cobalt Inferred 4.3 billion pounds of nickel and 280 million pounds of cobalt ▪ Less than 25% of the nickel prospective geology has been drilled to date. ▪ Engineering
Slide 5: Not All Nickel is Created Equal
Not All Nickel is Created Equal ▪ Only Class I nickel (purity > 99.98%) is suitable for batteries. World Nickel Market ~2 million tonnes per annum ▪ Class II nickel (ferronickel and nickel pig iron) is only suitable for stainless steel due to iron content and impurities. Supply ▪ Sources of Class I
Slide 6: Dominant EV Battery Chemistries Require Ni & Co
Dominant EV Battery Chemistries Require Ni & Co Dominant EV Battery Types ▪ Nickel and Cobalt are used in cathodes of 2 of the EV Battery Type Comparison 3 dominant battery chemistries for EVs – NMC (i.e. LFP NCA NMC Chevy Bolt) and NCA (Tesla). Also, nickel metal hydride batteries are the dominant
Slide 7: Nickel is in a structural deficit
Nickel is in a structural deficit 6
Slide 8: New Electric Vehicles to Lead to Large Nickel Deficits
New Electric Vehicles to Lead to Large Nickel Deficits Class 1 Nickel Supply-Demand Balance 800 All Ni Class 1 Ni 600 Class 1 Ni deficit forecast to 400 be 340kt by 2025 200 0 Nickel (kt) (200) (400) (600) (800) (1,000) (1,200) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Vale, Woo
Slide 9: Large Projects Will Require Higher Ni Prices To Get Built
Large Projects Will Require Higher Ni Prices To Get Built 8
Slide 10: Not Enough Projects in Pipeline to Satisfy Demand in 2020s
Not Enough Projects in Pipeline to Satisfy Demand in 2020s 9
Slide 11: Potentially One of the Largest Ni Sulphide Operations
Potentially One of the Largest Ni Sulphide Operations Nickel Mine Production from Sulphide Operations kt Ni 250 2016 Production Estimated Turnagain Production (at full capacity)* 207 200 150 100 72 66 51 50 44 38 33 30 0 Norilsk Jinchuan Vale Sudbury Voisey's Bay Turnagain* Raglan Terrafame Mount Ke
Slide 12: Mineral Resource
Mineral Resource Turnagain Mineral Resource1,2,3,4 Tonnes Ni Co Contained Contained Contained Contained Resource Category (000’s) (%) (%) Ni (tonnes) Co (tonnes) Ni (Mlbs) Co (Mlbs) Measured 227,379 0.22 0.014 500,233 31,833 1,102.82 70.18 Indicated 638,103 0.21 0.013 1,340,016 82,953 2,954.23 182.8
Slide 13: PEA Summary (December 2011)
PEA Summary (December 2011) ▪ The PEA1 evaluated the development of the Turnagain deposit by conventional open-pit methods with trucks and shovels. Material was assumed to be processed using a conventional concentrator to produce an 18% Ni, 1% Co Concentrate. Key Metrics US$ Production Metric Yr 1 –
Slide 14: Capital Intensity (US$/t Ni)
Our competition to Produce Class 1 Nickel is HPAL Projects Nickel Price Required to Generate 15% IRR for HPAL Project – US$60,000/t Capital Intensity 30,000 28,000 27,271 25,671 26,000 Capital Intensity (US$/t Ni) 24,071 24,000 22,471 22,000 20,000 18,000 16,000 Spot Nickel: ~US$14,00/t 14,000 12,00
Slide 15: Safe, Mining Friendly Jurisdiction
Safe, Mining Friendly Jurisdiction 14
Slide 16: Good Terrain for Open Pit Mining
Good Terrain for Open Pit Mining 15
Slide 17: 2018 Drilling and Exploration Program
2018 Drilling and Exploration Program ▪ Delineation drilling at the Horsetrail Deposit designed to upgrade 43-101 Inferred Resources to Measured or Indicated Resources, enabling engineering studies to be advanced to pre-feasibility and then to the feasibility stage. ▪ Infill drilling within the star
Slide 18: Room to Expand an Already Enormous Resource
Room to Expand an Already Enormous Resource 17
Slide 19: Investment Thesis
Investment Thesis ✓ Optionality ▪ Giant resource offers strong leverage to nickel and cobalt prices. ▪ Small market capitalization – lots of room to be rerated in rising commodity cycle. ✓ Exploration Upside ▪ Copper, Platinum, Palladium targets in the Attic zone. ▪ Less than 25% of the nickel prosp
Slide 20: Board of Directors
Board of Directors Mark Jarvis, CEO Mr. Jarvis has more than 30 years of experience in exploration and development of oil and gas and metals. After a career in financing exploration projects as a stockbroker, he moved to the corporate side of the business in 1996. He joined the board of Ultra Petrol
Slide 21: Share Structure
Share Structure Share Structure as of July 31, 2018 Stock Exchanges TSX Venture GIGA Frankfurt BRR2 Share Capital Shares Outstanding 42,324,015 Turnagain camp Warrants 25,271,399 Options 3,350,000 Fully-diluted 70,945,414 Market Capitalization Share Price (July 31, 2018) C$0.23 Market Capitalization
Slide 22: Contact Information
Contact Information Suite 203, 700 West Pender Street Vancouver, British Columbia Canada V6C 1G8 Phone: (604) 681-2300 Email: info@gigametals.com www.gigametals.com 21