Nordic Iron Ore Ab · OMXSTO:NIO
Nordic Iron Ore Ab — 8th Annual Exploration & Mining Investment Conference 2011
17 slides from Nordic Iron Ore Ab's conference presentation, Nov 15, 2011
Slide 1: A Nordic Iron Ore opportunity
A Nordic Iron Ore opportunity 8th Annual Exploration & Mining Investment Conference Jernkontoret, Stockholm November 15th 2011 Agenda I. Introduction II. Market conditions III. Project potential IV. Management V. Summary 1
Slide 2: Nordic Iron Ore – Ludvika mines
Nordic Iron Ore An iron ore mining company based in Ludvika, Sweden Established in 2008 through contribution in kind of 12 exploration assets from Kopparberg Mineral AB, Archelon Mineral AB and IGE Nordic AB Two out of three main projects are brownfield – dormant since 1980 Ludvika Bergslagen – Head
Slide 3: Why now?
Why now? Excellent market conditions, with long term stable outlook √ Great project potential at low risk √ Strong management with proven track record √ 5 Agenda I. Introduction II. Market conditions III. Project potential IV. Management V. Summary 3
Slide 4: Demand for crude steel remains strong thanks to developing countries
Demand for crude steel… Crude Steel Production 1900 – 2010 Industrialisation of US and parts of Europe Post war rebuild Saturation of demand Industrialisation in developed world of China & Million metric tonnes developing 1,600 world 1,400 3.0% CAGR 5.8% CAGR 0.4% CAGR 1,200 (1900-1945) (1950-1973)
Slide 5: Supply shortage will support high prices
Supply shortage will support high prices Seaborne iron ore Share of iron ore High end cash cost curve supply and demand prospects realised supportive for high prices Million metric tonnes Million metric tonnes USD/t CFR (fines) 2010 Cost Curve 1,500 600 200 CFR China 180 1,400 500 160 1,300 140 2009
Slide 6: Ludvika mines
Agenda I. Introduction II. Market conditions III. Project potential IV. Management V. Summary Ludvika mines Brownfield projects Sizable mineral resources Blötberget Million metric tonnes 40 Mining concession granted 35 Production start Q1 2015 30 25 25 25 Håksberg 20 14 14 12 Mining concession appli
Slide 7: Key targets of Ludvika Mines
Key targets of Ludvika Mines Production targets Project overview – Blötberget and Håksberg Planned ROM1: 5.5 mtpy2 Iron ore products: 2.5 mtpy2 (conc. 67% Fe) Pre-production: 2012 Start production: Q1 2015 Life of mine: ~12 years Exploration target – Väsman Exploration target: 600-650 Mt (19- 47% Fe
Slide 8: Blötberget project
Ludvika Mines 15 Blötberget project Concession area Ore bodies Resources are generally open at Mineral resources depth and sideways Indicated Inferred Mining concession granted by the Mining Inspectorate of Sweden Tonnage (Mt) 14 10 The cut off grade for resource calculations was historically around
Slide 9: Håksberg project and Väsman expansion opportunity
Håksberg project Concession area Ore bodies Resources are generally open at Mineral resources depth Application for mining concession – Indicated Inferred submitted in March 2011 Tonnage (Mt) 25 12 Local and regional authorities has approved the application Grade 36% 36% MINING CONCESSION IS IMMINEN
Slide 10: Future developments and proximity of mines
Ludvika Mines – Future developements Håksberg Väsman Fremundsberg Finnäset Blötberget K1 POSSIBILITIES FOR LONG TERM MINING OPERATIONS 19 Proximity of mines provides economies of scale Nordic Iron Ore asset portfolio Sole control of the entire ore field Economies of scale in mining, ore processing a
Slide 11: Ideally situated in the centre of Sweden
Ideally situated in the centre of Sweden No production or distribution bottlenecks Multiple rail and port connections Located in the mining region of Bergslagen – Stability and political support Gävle – Access to skilled employees and subcontractors Ludvika Railway links the mining sites to deep sea
Slide 12: An efficient business set-up
An efficient business set-up Illustrative overview of critical operational processes 1 2 3 4 Mining of iron ore Iron ore are Transportation Shipping to processed into of concentrate to customer concentrate deep sea ports Nordic Iron Ore One processing Existing railway Customers will leverage on plan
Slide 13: Management
Agenda I. Introduction II. Market conditions III. Project potential IV. Management V. Summary Management Christer Lindqvist Lennart Eliasson Hans Thorshag Louise Sjögren Chief Executive Officer Chief Financial Officer Project manager Chief geologist MSc in Metallurgy, Royal MSc in Business & MSc in
Slide 14: Board of Directors
Board of Directors Ulf Adelsohn, Chairman of the Board Jonas Bengtsson, Director Master of Laws, Stockholm University MSc in Business and Economics, Stockholm University Director of the Swedish Trade Council Partner of BETAB Invest Former Minister of Transport & Communication CEO and Director of Ste
Slide 15: Nordic Iron Ore's development plan
Nordic Iron Ore’s development plan 2015 • Commercial 2014 operation ramp up • Construction & 2013 installation & commissioning • Production start! • Financing Q1 ≈ 2012 SEK 2.5 bn • Väsman • Trial production feasibility study • Väsman PEA permit completed • Väsman mining • Väsman concession environm
Slide 16: Summary
Agenda I. Introduction II. Market conditions III. Project potential IV. Management V. Summary Summary Strong growth in global demand for steel, particularly in developing countries Excellent market conditions, Sustainable demand and supply shortage supports high long-term prices with stable outlook
Slide 17: Thank you
Thank you 17
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