Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (October 2022)
32 slides from Northern Minerals's investor presentation, Oct 26, 2022
Slide 1: A refocused Northern Minerals announces strategic partnership with Iluka Resources and capital raising
DRAFT Northern Minerals A refocused Northern Minerals announces strategic partnership with Iluka Resources and capital raising For personal use only 26 October 2022
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is dated 26 October 2022 and has been prepared by Northern Minerals Limited (ACN 119 966 353) (“NTU”, “Northern Minerals” or the “Company”). By attending an investor presentation or briefing, or accepting, For personal use only accessing or reviewing thi
Slide 3: Disclaimer
Disclaimer Financial information For personal use only All financial information in this Presentation is in Australian dollars ($ or AUD) unless otherwise stated. Where this Presentation includes certain pro forma financial information. Any such pro forma historical financial information provided in
Slide 4: Disclaimer
Disclaimer To the maximum extent permitted by law, Northern Minerals and its respective related bodies corporate, shareholders and affiliates, and each of their respective officers, directors, partners, employees, representatives, affiliates, agents, consultants For personal use only and advisers: (
Slide 5: Contents
1. A refocused Northern Minerals For personal use only 2. Iluka Strategic Partnership 3. Equity raising 4. Summary Appendix A: Additional information Appendix B: Mineral Resource Estimate Contents 5
Slide 6: Executive summary
Executive summary For personal use only Aiming to be a leading ex-China supplier of Dysprosium and Terbium, which have strong tailwinds from 1 decarbonisation 2 Strategic partnership with Iluka de-risks and accelerates the project development via a supply agreement and significantly reduced capex 3
Slide 7: 1. A refocused Northern Minerals
1. A refocused Northern Minerals For personal use only ASX:NTU 7
Slide 8: Introducing the management team executing on a refocused strategy
Introducing the management team executing on a refocused strategy Northern Minerals is led by Executive Chairman, Nick Curtis, who has extensive experience in Rare Earths. The For personal use only Leadership Team will soon be supplemented by Shane Hartwig as Finance Director Leadership team Nick Cu
Slide 9: A refocused Northern Minerals following a strategic review is on the path to production
A refocused Northern Minerals following a strategic review is on the path to production Northern Minerals has conducted a strategic review of the business led by Executive Chair, Nick Curtis, and has For personal use only mapped a clear path forward to production via a strategic partnership with Ilu
Slide 10: What is the market opportunity?
What is the market opportunity? The inflection towards electrification and decarbonisation is undoubted – permanent magnets play a critical role in the For personal use only realisation of these processes which creates strong long-term demand for key magnet minerals Dysprosium and Terbium are critic
Slide 11: The Northern Minerals proposition
The Northern Minerals proposition Northern Minerals’ assets sit within a uniquely Dy and Tb rich mineral setting in the Kimberley (Browns Range), with For personal use only significant resource growth prospectivity High quality mineralisation field, hosting Dy and Tb Structural geology and minerol
Slide 12: Processing IP from pilot plant
Processing IP from pilot plant 1,140t of concentrate has already been produced at the target grade through the pilot plant – it is the same material For personal use only from the same orebody The ore is enriched in xenotime within a predominantly quartz and mica host rock Grade is increased ~40
Slide 13: Moving Wolverine deposit towards production
Moving Wolverine deposit towards production The company’s strategic objective is to bring the Browns Range Project (Wolverine deposit) into production and focus on For personal use only being a producer of REOs, critical in high performance magnet production Pathway towards production Ore Sorter at
Slide 14: 2. Iluka Strategic Partnership
2. Iluka Strategic Partnership For personal use only ASX:NTU 14
Slide 15: Strategic arrangements with Iluka
Strategic arrangements with Iluka Northern Minerals enters Strategic Partnership with Tier 1 partner Iluka Resources For personal use only TREO Supply Agreement signed with Iluka Resources covering current known Mineral Resource over initial 8+ year mine life (30.5k tonnes of contained TREO in con
Slide 16: The Strategic Partnership benefits both parties
The Strategic Partnership benefits both parties For personal use only For Northern Minerals: Map • Iluka’s funding contribution assists NTU in updating the DFS and, subject to its findings, proceeding to FID on Browns Range next year • Its concentrate will be processed in Australia – the first time
Slide 17: The Strategic Partnership benefits both parties
The Strategic Partnership benefits both parties For personal use only Iluka CEO Tom O’Leary’s comments on the relationship: “The company’s agreement with Northern is a further step towards delivering on the significant, industry building opportunities presented by the development of Australia’s firs
Slide 18: Iluka Supply Agreement
Iluka Supply Agreement For personal use only Xenotime Concentrate Sale And Purchase Pricing mechanism illustration Agreement1 Northern Minerals to produce Xenotime concentrate from its Browns Range Project and sell to Iluka for use in its Eneabba Refinery Proposed annual production to be deliver
Slide 19: Iluka Subscription and Option Agreement
Iluka Subscription and Option Agreement Tranche 1 NTU will issue Iluka 125.0 million NTU new ordinary shares at an issue price of $0.04 per share to raise $5.0 million to be completed on or about 28 October 2022 (Iluka Tranche 1 Placement Placement) For personal use only and Iluka has agreed to
Slide 20: 3. Equity raising
3. Equity raising For personal use only ASX:NTU 20
Slide 21: SPP overview
SPP overview For personal use only Northern Minerals will offer eligible Australian and New Zealand shareholders the opportunity to acquire up to A$5 million in New Shares via a SPP, with a maximum application of A$30,000 per eligible shareholder The issue price for New Shares issued under the S
Slide 22: Sources and uses
Sources and uses For personal use only Uses Iluka Tranche 2A Placement and Iluka Tranche 2B Sources Call Option / Put Option are not included in the initial sources given these proceeds of up to $53m Browns Range DFS (Incl. are conditional on: Iluka Tranche 1 Placement $5.0m potential Wolverine re
Slide 23: Iluka Subscription and SPP timetable
Iluka Subscription and SPP timetable For personal use only Event Date Record date for SPP 4:00pm (Perth time), 25 October 2022 Announcement of Iluka agreements and SPP 26 October 2022 Settlement and issue of New Shares under Iluka Tranche 1 Placement, and settlement and issue of Iluka Convertible No
Slide 24: Extraordinary General Meeting
Extraordinary General Meeting For personal use only Issued NTU has issued or agreed to issue the following securities pursuant to its existing placement capacity under ASX Listing Rule 7.1: pursuant to ‒ Iluka Tranche 1 Placement existing placement ‒ Iluka Convertible Note capacity ‒ Iluka Tranche
Slide 25: 4. Summary
For personal use only 4. Summary ASX:NTU 25
Slide 26: Summary
Summary For personal use only A refocused Northern Minerals following a strategic review with a clear pathway towards production, now focused on updating 1 the DFS and being a rare earths concentrate producer Strategic partnership with Iluka de-risks and accelerates the development of the Browns Ran
Slide 27: Appendix A: Additional information
Appendix A: Additional information For personal use only ASX:NTU 27
Slide 28: Pricing forecasts to 2035
Pricing forecasts to 2035 For personal use only Terbium Oxide 99.9%min China US$/kg Dysprosium Oxide 99%min China US$/kg $3,500 $800 $3,045 $716 $3,000 $700 $600 $2,500 $500 $2,000 $2,017 $458 $400 $1,500 $300 $1,000 $200 $500 $100 $0 $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 20
Slide 29: Iluka Supply Agreement – Headline Terms
Iluka Supply Agreement – Headline Terms For personal use only Conditions The Supply Agreement is subject to the satisfaction of certain key conditions precedent Force majeure The Iluka Supply Agreement contains a provision which grants including NTU granting security to Iluka over its assets includi
Slide 30: Appendix B: Mineral Resource Estimate
Appendix B: Mineral Resource Estimate For personal use only ASX:NTU 30
Slide 31: Mineral Resource Estimate
Mineral Resource Estimate Global Mineral Resource Estimate (October 2022)1,2 Browns Range Project Overview For personal use only Deposit Classification Mt TREO Dy2O3 Y 2 O3 Tb4O7 HREO TREO % kg/t kg/t kg/t % kg The Project is located in the East Kimberley region of Western Australia, Wolverine Mea
Slide 32: For personal use only
For personal use only ASX:NTU 32
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