Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (August 2023)
41 slides from Northern Minerals's investor presentation, Aug 30, 2023
Slide 1: Becoming an Important Supplier of Dysprosium & Terbium for a Globally Sustainable Future
Becoming an Important Supplier of Dysprosium & Terbium for a Globally Sustainable Future Equity Raising Presentation August 2023
Slide 2: Disclaimer
Disclaimer This investor presentation (“Presentation”) is dated 30 August 2023 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, accessing or reviewing this Presentation
Slide 3: Disclaimer
Disclaimer Past performance Past performance, including past share price performance of Northern Minerals and historical financial information if provided in this Presentation, is provided for illustrative purposes only and should not be relied upon as (and is not) an indication of Northern Minerals
Slide 4: Investment Highlights
Investment Highlights High-grade orebody, experienced management and a clear path to production places Browns Range as one of Australia’s premier rare earths projects • Browns Range Project has the known highest-grade dysprosium (“Dy”) and terbium (“Tb”) orebody within Australia, essential for high-
Slide 5: Company Snapshot
Company Snapshot Project Overview • Northern Minerals (ASX:NTU) has owned the Browns Range Rare Earths Project (“Project”) for c.16 years, with c.$73m committed to exploration and >134,000m of drilling to date within the Project area. • High-grade Wolverine deposit underpins the initial life of mine
Slide 6: Equity Raising
Equity Raising Image: Browns Range Pilot Plant
Slide 7: Equity Raising Overview
Equity Raising Overview A$25 million institutional placement to fund development of the Browns Range Project towards FID • Northern Minerals is seeking to raise A$25 million via a non-underwritten, single tranche placement (“Placement”), comprising the issue of approximately Placement Size 833.3 mil
Slide 8: Sources and Uses
Sources and Uses Placement proceeds will be used to fund development of the Browns Range Project towards FID Critical Minerals Grant Development Programs Sources A$m • Northern Minerals work programs to be undertaken pursuant to the Critical Minerals Grant, including: Existing cash (as at 30 June 20
Slide 9: Indicative Placement Timetable
Indicative Placement Timetable Event Date (2023)1 Trading halt and launch of Placement Tuesday, 29 August Results of Placement announced, trading halt lifted and recommencement of trading Wednesday, 30 August Settlement of New Shares Tuesday, 5 September Allotment and normal trading of New Shares We
Slide 10: Rare Earths Global Market Opportunity
Rare Earths Global Market Opportunity Image: Browns Range Pilot Plant
Slide 11: Supplying a Sustainable Future
Supplying a Sustainable Future Dysprosium & Terbium are critical inputs across multiple applications Electric Vehicles Heavy Rare Earths Wind Turbines Light Rare Earths Smartphones Defence Energy Saving Light Bulbs LCD Screens and Displays Speakers & Headphones 11
Slide 12: Governments Globally Support REE's
Governments Globally Support REE’s Countries globally continue to implement strategies to secure rare earth elements United States – Inflation Reduction Act US $400b committed to reducing climate change including securing supply chains for rare earths1 EU – Critical Raw Minerals Act Critical raw mat
Slide 13: Rare Earth Basket & Market Opportunity
Rare Earth Basket & Market Opportunity Mineralisation at Wolverine has a uniquely high share of heavy rare earths, including dysprosium and terbium, which are critical inputs to enable electrification Rare earths assemblage Rare earths assemblage • Permanent magnets are at the heart of electrificati
Slide 14: Browns Range Rare Earths Project Dysprosium & Terbium
Browns Range Rare Earths Project Dysprosium & Terbium Image: Browns Range Pilot Plant
Slide 15: Browns Range Project Overview
Browns Range Project Overview Northern Mineral’s strategic objective is to develop Browns Range and focus on being a producer of Dysprosium & Terbium, which are critical to high performance magnet production Key Details c.160km south-east of Halls Creek on the northern edge of the Location Tanami De
Slide 16: Moving Wolverine Towards Production
Moving Wolverine Towards Production Strategic objective to bring the Wolverine deposit into production and focus on being a producer of Dysprosium & Terbium Highly experienced team delivering the DFS, leveraging the work undertaken in the 2015 DFS, with a focus on: • Assessing mining design and cost
Slide 17: Iluka Supply Agreement
Iluka Supply Agreement Binding supply agreement with Iluka for 100% of planned production over the initial life of mine to feed the Eneabba Rare Earths Refinery Supply Agreement Price per kg of TREO received by NTU for kg TREO contained in NTU Upside price sharing • NTU to produce Xenotime concentra
Slide 18: Geology
Geology Northern Minerals assets sit within a uniquely Dy and Tb rich mineral setting in the Kimberley with its structural geology and minerology well understood Overview • Browns Range holds a Mineral Resource Estimate of 10.81 Mt @ 0.76% Total Rare Earth Oxides (“TREO”), with the Wolverine deposit
Slide 19: Mining
Mining Commencing with open pit, transition to Sub Level Retreat (SLR) Mining Overview • Wolverine will be mined via both open pit and underground methods, for 8+ years1 • A box-cut and decline will commence concurrently with the open pit, to ensure underground ore is ready for extraction upon compl
Slide 20: Processing
Processing Beneficiation of ore from the Wolverine deposit producing a xenotime concentrate for supply to Iluka’s rare earth refinery at Eneabba Processing Overview • Processing flowsheet is a well-understood beneficiation process that will produce a c.25% TREO xenotime concentrate rich in Dy and Tb
Slide 21: Mine Operations & Proposed Layout
Mine Operations & Proposed Layout Pilot Plant operations enabled establishment of key base operational requirements that will be expanded • Airstrip, offices and a worker’s village • Gravel access roads to the mine and around the mine site • Power supply come from diesel generators, solar panels and
Slide 22: Wolverine Deposit
Wolverine Deposit The high-grade Wolverine deposit underpins the initial life of mine, with considerable opportunity to develop adjacent deposits that are also abundant in heavy rare earths Current Resource Estimate Wolverine Deposit Expansion kt JORC-compliant Mineral Resource1 80 1.2% Ore TREO Dy
Slide 23: Proposed Wolverine Resource Definition Drilling
Proposed Wolverine Resource Definition Drilling Aiming to upgrade Resource Definition from Inferred to Indicated Proposed Program • Seeking to convert deeper Inferred Mineral Resource to Indicated • Seeking to convert ~1.99Mt @ 1.25% TREO for 24,900 t contained TREO • If confirmed, allows Indicated
Slide 24: Wolverine Extension Drilling Program
Wolverine Extension Drilling Program The high-grade Wolverine deposit underpins the initial life of mine, with considerable opportunity to develop adjacent deposits that are also abundant in heavy rare earths Objective • Test direction of plunge and grade at depth • Drilling completed in May 2023 Ou
Slide 25: Clear Pathway to Production
Clear Pathway to Production Northern Minerals has conducted a strategic review of the business led by Executive Chair, Nick Curtis, and has mapped a clear path forward to production Company Timeline • Maiden JORC Ore • Pilot Plant installed Nick Curtis appointed Executive Chair Moving forward toward
Slide 26: Debt Financing
Debt Financing Northern Minerals has commenced procurement of project funding with strategic partners Capital Expenditure Estimate Potential Finance Partners • Early estimate capex to be in the Order of Magnitude (“OOM”) of approximately $500m (excluding financing costs), to be refined as part of th
Slide 27: Regulatory Approvals Summary
Regulatory Approvals Summary Northern Minerals has achieved all primary approvals required to progress through FID 5 May 2017 DMIRS Approval of Browns Range Rare Earths Project - Pilot Plant Trial mining Proposal- M80/627 - L80/76 Feasibility Study 2014 2017 2018 2022 2023 20 October 2014 11 July 20
Slide 28: Environment & Community
Environment & Community Northern Minerals maintains a high standard of environmental management and community engagement Environment • Committed to producing ethical rare earths and integrating risk-based environmental management throughout its operations. • To support the updated DFS, the Company h
Slide 29: Management Executing Refocused Strategy
Management Executing Refocused Strategy Northern Minerals is led by Executive Chairman, Nick Curtis, with extensive experience in Rare Earths Nick Curtis - Executive Chairman • 35+ years experience in mining and finance, with 25+ years of RE experience. • Previous Executive Chairman of Lynas Corpora
Slide 30: Board of Directors
Board of Directors Nick Curtis - Executive Chairman • 35+ years experience in mining and finance, with 25+ years of RE experience. • Previous Executive Chairman of Lynas Corporation (ASX:LYC), after taking control of the company in 2001, he refocused it as a rare earths company developing the Mt Wel
Slide 31: 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 significant resource growth prospectivity • De-risks and accelerates the • Pilot plant operations Strategic partnership project development via a Exi
Slide 32: Appendices
Appendices Image: Browns Range Pilot Plant
Slide 33: Appendix A: Mineral Resource
Appendix A: Mineral Resource Global Mineral Resource Estimate (October 2022)1,2 Browns Range Project Overview TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Deposit Classification Mt • The Project is located in the East Kimberley region of Western Australia, % kg/t kg/t kg/t % kg Measured 0.14 0.7 0.61 3.99 0.09 8
Slide 34: Appendix B: Key Risks
Appendix B: Key Risks Northern Minerals is subject to a variety of risk factors. Some of these are specific to its business activities, while others are of a more general nature. Individually, or in combination, these risk factors may adversely affect the operating and financial performance or posit
Slide 35: Appendix B: Key Risks
Appendix B: Key Risks Reliance on key personnel and advisors The ability of the Group to achieve its objectives depends on the engagement of key employees, directors and external contractors and advisers that provide management and technical expertise. If the Group cannot secure technical expertise
Slide 36: Appendix B: Key Risks
Appendix B: Key Risks Reserves and resource estimates No assurance can be given that the anticipated tonnages and grades of ore will be achieved during production or that the anticipated level of recovery will be realised. Mineral resource and ore reserve estimates are based upon estimates made by N
Slide 37: Appendix B: Key Risks
Appendix B: Key Risks Access There is a substantial level of regulation and restriction on the ability of exploration and mining companies to have access to land in Australia. Negotiations with both native title holders and landowners / occupiers are generally required before gaining access to land
Slide 38: Appendix B: Key Risks
Appendix B: Key Risks Market conditions There are general risks associated with investments in equity capital markets. Australian and international share market conditions may affect the value of the Company’s quoted securities regardless of the Group’s operating performance. Share market conditions
Slide 39: Appendix C: International Offer Restrictions
Appendix C: International Offer Restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the
Slide 40: Appendix C: International Offer Restrictions
Appendix C: International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing m
Slide 41: Contact
Contact Northern Minerals Northern Minerals Nicholas Curtis AM Shane Hartwig Executive Chairman Finance Director +61 8 9481 2344 +61 8 9481 2344 Jane Morgan Management Jane Morgan Investor Relations Manager +61 405 555 618
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