Nickel Industries Limited · ASX:NIC
Nickel Industries — Q3 2023 Earnings Presentation
14 slides from Nickel Industries's earnings presentation, Nov 1, 2023
Slide 1: Quarterly Activities Presentation for the period ended 30 September 2023
QUARTERLY ACTIVITIES PRESENTATION FOR THE PERIOD ENDED 30 September 2023 Increased production and lower costs contribute to record EBITDA from operations of US$120.7M 0
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Nickel Industries Limited (ABN 44 127 510 589) (‘NIC’). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The in
Slide 3: September quarter review
September quarter review Increased production and lower costs contribute to record EBITDA from operations of US$120.7M ▪ Record RKEF nickel metal production of 33,852 tonnes (100% basis) – 4.0% higher than June quarter (32,558 tonnes) ▪ Record attributable production of 28,132 tonnes – 26,692 tonnes
Slide 4: September quarter 2023 financial results
September quarter 2023 financial results September quarter Movement June quarter Presented on a 100% basis unless otherwise stated Units 2023 results (Sep ‘23 vs. Jun’23) 2023 results RKEF production Nickel metal tonnes Record 33,852 +4.0% 32,558 - NPI production Nickel metal tonnes 28,561 +4.0% 27,
Slide 5: Continued growth in production
Continued growth in production Represents switch of HNI production to nickel matte ▪ Record RKEF quarterly production of 33,852 tonnes of nickel metal (+4% from June quarter), comprising 28,561 tonnes in NPI and 5,291 tonnes in low-grade nickel matte ▪ In addition, attributable 1,410 tonnes of MHP f
Slide 6: Record quarter of production at Hengjaya Mine
Record quarter of production at Hengjaya Mine Production summary June quarter September quarter Saprolite mined wmt 692,937 1,013,949 Limonite mined wmt 2,029,624 2,616,041 Nickel ore mined wmt 2,722,561 3,629,990 Overburden mined BCM(1) 226,798 332,155 Strip ratio BCM/wmt 0.08 0.09 Saprolite EBITDA
Slide 7: Hengjaya Mine to IMIP haul road is now complete
Hengjaya Mine to IMIP haul road is now complete ▪ In August 2023, the Company announced the completion of the Hengjaya Mine to IMIP haul road ▪ The haul road features a 70-metre double lane bridge with public road underpass near the entrance of the IMIP ▪ Haulage tenders now finalised – first ore co
Slide 8: Excelsior Nickel Project (ENC) – positive final investment decision
Excelsior Nickel Project (ENC) – positive final investment decision Positive final investment decision taken in October 2023 Comparison of HPAL capex intensity ▪ Collaboration agreement with Shanghai Decent to build a “next generation” 72kt HPAL plant - Project will be capable of producing MHP, nick
Slide 9: The true value of a "capex" guarantee
The true value of a “capex” guarantee There are many recent examples of material cost inflation for development projects owned by ASX listed companies, both in the nickel complex and more broadly in other commodities Capital intensity benchmarking – NIC vs. ASX-listed nickel development projects Cap
Slide 10: Illustrative overview of funding for Excelsior Nickel Cobalt over the next two years
Illustrative overview of funding for Excelsior Nickel Cobalt over the next two years Funding required US$M ▪ Required cash flow from existing operations of US$552M = US$69M/quarter ENC acquisition (55% of US$2.3Bn) 1,265 ▪ NIC’s existing operations include: April 2024 bonds 245 Debt servicing(1) 302
Slide 11: Corporate: Placement with United Tractors and acquisitions
Corporate Completion of placement with PT United Tractors ▪ Extraordinary General Meeting (EGM) held on 8 September 2023 – approved the placement of 857M new fully paid ordinary shares at A$1.10 per share to PT Danusa Tambang Nusantara (DTN), a subsidiary of United Tractors, representing 19.99% of t
Slide 12: Corporate: US$400m loan facilities with Indonesian bank
Corporate US$400m loan facilities with leading Indonesian bank ▪ US$400M loan facilities with PT Bank Negara Indonesia (Persero) Tbk (BNI), a tier-1 Indonesian Bank, to support the Company’s funding obligations in relation to the ENC Project ▪ Facility comprises a 5-year senior term loan facility of
Slide 13: Corporate: Binding agreement for solar project at IMIP
Corporate Execution of binding agreement for solar project at IMIP ▪ Binding Operational Lease and Service Agreement (OLSA) signed with PT Sumber Energi Surya Nusantara (SESNA) with respect to the development, installation, operation and maintenance of a 200MWp + 20MWh battery solar project within t
Slide 14: Further Information
FURTHER INFORMATION: Justin Werner Cameron Peacock Managing Director Investor Relations and Business Development jwerner@nickelindustries.com cpeacock@nickelindustries.com 13