Nickel Industries Limited · ASX:NIC
Nickel Industries — Ord Minnett East Coast Mining Conference 2023
26 slides from Nickel Industries's conference presentation, Mar 22, 2023
Slide 1: East Coast Mining Conference March 2023
For personal use only Ord Minnett East Coast Mining Conference March 2023 Top 10 nickel producer positioned to capture the growing battery grade nickel demand 0
Slide 2: Today's presenter
Today’s presenter For personal use only Justin Werner Managing Director jwerner@nickelindustries.com 1
Slide 3: Introduction to Nickel Industries Limited
Introduction to Nickel Industries Limited For personal use only Nickel Industries Limited (“NIC”) is a leading nickel processing business, currently An industrial processing business leveraging its strategic producing some of the lowest capital intensive and most profitable nickel units in the ore r
Slide 4: Why invest in Indonesian nickel?
Why invest in Indonesian nickel? Indonesia is now the epicentre of global nickel supply for the EV revolution Class 1 nickel demand from The rise of NPI Global nickel mine production 2021(1) Total nickel demand by sector and scenario, 2020 – 2040(2) For personal use only EVs and storage nickel Nicke
Slide 5: Indonesia Morowali and Weda Bay Industrial Parks
Indonesia Morowali Industrial Park (IMIP) Indonesia Weda Bay Industrial Park (IWIP) For personal use only Steel production capacity 3Mt stainless steel per annum Steel production capacity Currently no stainless-steel capacity RKEF lines Over 50 lines planned RKEF lines Over 50 lines planned Employee
Slide 6: Overview of Nickel Industries operations
Overview of Nickel Industries operations Hengjaya Nickel Ranger Nickel Angel Nickel Oracle Nickel Huayue Ni-Co Excelsior Ni-Co (HNI) (RNI) (ANI) (ONI) (HNC) (ENC) For personal use only Location IMIP IMIP IWIP IMIP IMIP Morowali (near IMIP) Ownership 80% 80% 80% 70% (moving to 80%) 10% ~60%-70% Plant
Slide 7: Illustrative RKEF business model
Illustrative RKEF business model Hengjaya Mine Mining Operations ~80 other nickel ore suppliers from across Indonesia For personal use only ~3.5Mtpa(1) FY 2022 US$54M EBITDA Morowali and Weda Bay Industrial Parks Centralised nickel ore stockpile RKEF Nickel matte RKEF Operations operations conversio
Slide 8: Electric Vehicle Battery Supply Chain Strategic Framework Agreement
For personal use only Electric Vehicle Battery Supply Chain Strategic Framework Agreement 7
Slide 9: Electric Vehicle Battery Supply Chain Strategic Framework Agreement
Electric Vehicle Battery Supply Chain Strategic Framework Agreement Transformational transaction to increase Nickel Industries exposure to fast growing battery grade nickel For personal use only 1 Overview: What this transaction does for NIC: HNC (acquiring a 10% interest) ▪ Multi-faceted Electric V
Slide 10: Acquisition of HNC – a best in class operational HPAL
Acquisition of HNC – a “best in class” operational HPAL HNC is the first successfully operating HPAL project in the IMIP – industry leaders as partners Asset overview For personal use only Asset ▪ PT Huayue Nickel Cobalt Project (“HNC”), located in IMIP ▪ Huayou Cobalt, 57% Current ▪ China Molybdenu
Slide 11: Excelsior Nickel Project (ENC) – the next generation of HPAL
Excelsior Nickel Project (ENC) – the next generation of HPAL ▪ Collaboration agreement with Shanghai Decent to build a For personal use only “next generation” 67kt HPAL plant - Project will be capable of producing MHP, nickel sulphate and nickel cathode, differentiating from the current wave of Indo
Slide 12: A capex guarantee – what's it really worth?
A capex guarantee – what’s it really worth? Consistent track record of delivery with low historical commissioning risk for Nickel Industries’ projects NIC RKEF projects have been delivered on … compared to peers who have had to restate capex once construction commences For personal use only time and
Slide 13: Excelsior Nickel Cobalt Project
Excelsior Nickel Cobalt Project Strategic partnership utilising NIC’s resource base and Shanghai … and establish Nickel Industries as a leading battery nickel producer Decent’s project development expertise to produce Class 1 nickel… For personal use only 2021 Processed nickel production (kt)(1) 1 •
Slide 14: Successful switch to nickel matte production
Successful switch to nickel matte production Successful delivery of nickel matte production at HNI, with 2 of ANI’s RKEF lines to undergo transition to produce matte (1) For personal use only Successful conversion of HNI to nickel matte… Tsingshan and Shanghai Decent have successfully pioneered th
Slide 15: Nickel matte – added production flexibility delivers enhanced economics
Nickel matte – added production flexibility delivers enhanced economics Matte status For personal use only Sulphur Decision to switch to matte Add sulphur HNI Currently producing matte injection ANI 2 lines announced to be converted in Q1 2024 Option to convert 4 lines upon investment in Capital mod
Slide 16: Overview of Nickel Industries operations: current and future products
Overview of Nickel Industries operations Current products Future products For personal use only NPI Nickel Matte MHP Nickel Sulphate Nickel Cathode Nickel Class Class 2 Class 1 Class 1 Class 1 Class 1 Plant RKEF RKEF HPAL HPAL HPAL Process Pyro-metallurgical Pyro-metallurgical Hydro-metallurgical Hy
Slide 17: Continuing to diversify into Class 1 battery grade nickel at scale
Continuing to diversify our existing business into Class 1 battery grade nickel….at scale Delivering continued growth, increasing leverage to the LME price, and customer diversification For personal use only Attributable NiEq production (tpa) 225,000 $299m ? ? Existing operations demonstrate consist
Slide 18: A record year of production at Hengjaya Mine
A record year of production at Hengjaya Mine Production summary Mar’22 Jun’22 Sep’22 Dec’22 FY 2022 For personal use only Saprolite mined wmt 810,324 792,630 599,790 687,831 2,890,575 Limonite mined wmt 263,201 520,862 1,098,186 2,020,027 3,902,276 Nickel ore mined wmt 1,073,525 1,313,492 1,697,976
Slide 19: Hengjaya Mine – a global top nickel resource
Hengjaya Mine – a global top 10 nickel resource Global contained nickel resources and grade For personal use only 20.0 3.50% 18.5 3.18% 18.0 3.00% 16.0 2.60% 2.47% 13.9 2.39% Contained Ni Resources (Mt) 2.50% Ni Grade (%) 14.0 1.94% 1.99% 12.0 1.85% 1.81% 1.76% 2.00% 1.70% 1.70% 1.65% 10.0 9.5 1.53%
Slide 20: Significant commitment to ESG
4 Significant commitment to ESG … Commitment to sustainability reflected in Nickel Industries’ strategy. Environmental sustainability is a core part of our existence and our products are essential for the global energy transition For personal use only ESG reporting frameworks are aligned with intern
Slide 21: …with strong, recognized environmental track record
…with strong, recognized environmental track record Asia Sustainability Reporting (ASRRAT) Nickel Industries’ safe operations and environmental stewardship have been recognised 2022 through a number of innovation and environmental awards For personal use only ISO Certification ENSIA Awards 2022 Gree
Slide 22: Strong full year result supports commitment to strong credit metrics
Strong full year result supports commitment to maintaining strong credit metrics US$M, except for ratios FY 2021 FY 2022 Q4’22 For personal use only ▪ Record FY 2022 financial performance underpinned by: RKEF sales revenue $645.9 $1,217.0 +88.4% $371.2 – consistent production from existing HNI and R
Slide 23: Ramping up production across our RKEF portfolio
Ramping up production across our RKEF portfolio Consistent, industrial style production expected to materially increase over the next 12 months as ONI commissions For personal use only RKEF production Mar’22 Jun’22 Sep’22 Dec’22 FY 2022 NPI production tonnes 81,599 114,106 145,180 132,230 473,115 Ni
Slide 24: ANI overview
ANI overview Material For personal use only tax concessions – by Decree of the Indonesian Government Existing production Future production HNI RNI ANI ONI HNC 100% corporate income tax reduction (from the year of 7 years 7 years 10 years 10 years 15 years commercial production) (3 years remaining) (
Slide 25: Nickel Industries – investment highlights
Nickel Industries – investment highlights 1 Top 5 global mining resource with multiple options to secure additional strategic ore resources For personal use only 2 Pre-eminent partner in Tsingshan with unrivalled global project execution and innovation capabilities 3 Significant cash flows from exis
Slide 26: Thank you
For personal use only THANK YOU Justin Werner Cameron Peacock Managing Director Investor Relations & Business Development jwerner@nickelindustries.com jwerner@nickelindustries.com +62 813 8191 2391 +62 813 8191 2391 25
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