Fpx Nickel Corp · TSXV:FPX
Fpx Nickel — Investor Presentation (April 2019)
36 slides from Fpx Nickel's investor presentation, April 2019
Slide 1: Developing Canada's Next Nickel District
Developing Canada’s Next Nickel District April 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward looking statements” within the meaning of “forward looking information” under applicable Canadian securities laws, concerning the business, operations and financial performance and condition of FPX Nickel Corp. (“FPX Nickel”, “th
Slide 3: FPX's Decar Nickel District is one of the world's best development-stage nickel projects
FPX’s Decar Nickel District is one of the world’s best development-stage nickel projects ● Large Resource, Long Life ● Low Projected Costs ➢ Projected to be among world’s 10 ➢ Potential for lowest quartile largest nickel mines by annual output operating costs (US$3.13/lb) ➢ 24-year mine life with si
Slide 4: The Case for Nickel
The Case for Nickel Global Refined Nickel Supply/Demand and Price 250 $20.00 Forecast 200 $18.00 $16.00 150 $14.00 100 000s Tonnes $12.00 US$ /lb 50 $10.00 - $8.00 (50) $6.00 (100) $4.00 (150) $2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Implied Sur
Slide 5: FPX – Leverage to the Nickel Price
FPX – Leverage to the Nickel Price March 2016 to March 2019 – FPX vs. nickel performance BCOMNITR = Bloomberg Nickel Sub-index Total Return, a single commodity sub-index composed of futures contracts on nickel 5
Slide 6: FPX – Deep Value Nickel Opportunity
FPX – Deep Value Nickel Opportunity FPX has extremely low market value compared to other exploration- and development-stage nickel companies, suggesting greater potential upside Relative Market Valuation Enterprise Value per lb Nickel equivalent (USD) $0.141 $0.095 $0.044 $0.029 $0.008 $0.009 $0.009
Slide 7: Decar Nickel District – Ownership History
Decar Nickel District – Ownership History August 2014 November 2009 Cliffs announces Execution of option intention to divest agreement with all non-core assets, Cliffs Natural including 60% Resources Inc. Decar interest 2010 to 2013 November 2015 Cliffs expenditures FPX Nickel re- of US $22 million
Slide 8: Decar Nickel District – Excellent Location, British Columbia
Decar Nickel District Excellent Location – British Columbia ● Road accessible ● 5 km to rail line ● 100 km to provincial power grid 8
Slide 9: Decar Nickel District (245 km2)
Decar Nickel District (245 km2) Van Target • Drill-ready target • Surface samples up to 0.16% DTR Ni 1 B Target • Exploration target ~3 km2 • 1 hole drilled, 1.7 km from Sid • 263m of 0.132% DTR Ni 1 • Open along strike and at depth Sid Target Baptiste Deposit (2013 PEA) • 2 holes drilled, 320m apar
Slide 10: Decar Nickel District – Exploration Upside
Decar Nickel District Exploration Upside Van Target B Target Sid Target Baptiste Deposit 10
Slide 11: Decar Nickel District – Baptiste Deposit
Decar Nickel District – Baptiste Deposit ● Southeast Zone: Higher grade near-surface zone measuring 1,000 metres east-west by up to 600 metres wide ● Deposit remains open to southeast, northwest & northeast and at depth 11
Slide 12: Baptiste Deposit – 2017 Stepout Drilling
Baptiste Deposit – 2017 Stepout Drilling Intersections DTR Nickel Comments Hole From To Length (%) 2010-1 3 321 318 0.145 2010-7 3 71 68 0.13 2011-5 45 303 258 0.145 2011-7 51 304 253 0.163 2012-36 31.1 600.1 563 0.156 Excludes 5.7 m dike 2012-37 64 600 494.9 0.147 Excludes 8.2 m and 33m dike sequen
Slide 13: Baptiste Deposit – 2018 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2018 Mineral Resource Estimate Davis Tube Recoverable (“DTR”) * Davis Tube Recoverable Nickel”; 0.06% cut-off Nickel Content * Category Tonnes 2018 estimate dated February 26, 2018 by (% Ni) (Tonnes Ni) (Pounds Ni) GeoSim Services Inc. Mineral resources repor
Slide 14: Baptiste Deposit – 2018 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2018 Mineral Resource Estimate - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the southeast
Slide 15: Baptiste Deposit – Long Section View
Decar Nickel District – Baptiste Deposit Long Section View (image location below) - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the
Slide 16: Decar Nickel District – Van Target
Decar Nickel District – Van Target • Van Target is drill ready and measures ~3 km2 based on 54 bedrock surface samples • ~35% of surface samples in Van Target area grading over 0.12% DTR Ni • Van Target located 6 km north of Baptiste and remains open to the east • Baptiste Target was ~2 km2 prior to
Slide 17: Decar Nickel District – Mineralization
Decar Nickel District – Mineralization Awaruite – Naturally-Occurring Nickel-Iron Alloy ● Targets are large-scale and near-surface ● Disseminated nickel mineralization ● Consistent grade and grain size distribution ● Highly magnetic ● Very dense (8.2 gm/cc) ● No sulphur in mineral or host rock Formu
Slide 18: Decar Nickel District – Conventional Metallurgy
Decar Nickel District – Conventional Metallurgy Simple, two-stage process ➢ Rougher magnetic separation ➢ Conventional flotation High recoveries, high grade products ➢ 80-90% recovery of DTR Ni grade ➢ Ni concentrate grading 55-72% Ni and 25% ➢ By-product iron ore concentrate grading 58- 64% Fe Clea
Slide 19: Decar Concentrate – Premium Nickel Product
Decar Concentrate Premium Nickel Product ● Nickel – iron – chromium concentrate ● Can bypass nickel sulphide smelters for direct sale to manufacturers of ferronickel and stainless steel alloys ● Standalone smelting tests indicate potential to produce ferronickel Ferronickel buttons produced from 201
Slide 20: Decar Ni Concentrate – Marketing Advances
Decar Ni Concentrate – Marketing Advances ● 2013 PEA concentrate specs Metallurgical Testing Post-PEA ➢ Ni grade: 13.5% ➢ 2013 smelting tests confirmed amenability ➢ Fe grade: 45% - 50% to conventional ferronickel processing ➢ Cr grade: ~ 2.0% ▪ Stand-alone: FeNi @ ~50% Ni ▪ Blending feed to Rotary
Slide 21: Decar Nickel Concentrate – Premium Product
Decar Nickel Concentrate – Premium Product FPX concentrate to yield high payability given similarity to NPI & Ferronickel Global Nickel Products -- Ni Content & Payability (% LME Nickel Price) Sulphide Concentrate (~15% Ni) Mixed Hydroxide Intermediate (~40% Ni, ~2% Co) Decar Concentrate (~13% Ni, ~
Slide 22: Baptiste Deposit – PEA Results
Baptiste Deposit – PEA Results March 2013 PEA: Economic Results * ● Positive result : First pass Highlights of Economic Results proof of concept ➢ Indicates potential Project (100%): economic viability • Pre-Tax NPV (8%) C$ 1,125 million ● Significant potential for • Pre-Tax IRR 15.7% economic upsid
Slide 23: Baptiste Deposit – PEA Parameters
Baptiste Deposit – PEA Parameters ✓ Indicates key target for optimization in PEA revision 1. Assumes 8% mining dilution, with zero grade material 2. Concentrate includes by-product iron (45% - 50%) and chromium (~2.0%) 3. 75% x 3-year trailing average Ni price of US$ 9.39/lb Ni; no credits for by-pr
Slide 24: Baptiste Deposit – Cost Metrics
Baptiste Deposit – Cost Metrics March 2013 PEA: Key Cost Metrics ● Low on-site operating costs Operating Costs ➢ Accuracy of estimates: + 27.5% Mining C$ 2.86/t ➢ Potential position in lower half of Milling C$ 3.25/t cost curve based on G&A C$ 0.80/t ▪ Low strip ratio, simple processing Total C$ 6.9
Slide 25: Baptiste Deposit – Low Initial Capital Intensity
Decar Nickel District – Baptiste Deposit Low initial capital intensity compared to other recent large nickel mines $92,000 US$ capital cost per tonne annual Ni production $83,000 $79,000 $73,000 $60,000 $56,000 $53,000 $36,000 Decar (Canada) Barro Alto Ramu Onca Puma Goro Ravensthorpe Koniambo Ambat
Slide 26: Baptiste Deposit – Low Capital and Operating Cost
Decar Nickel District – Baptiste Deposit Low capital and operating cost compared to other nickel mines Selected Ni Project Costs, Adjusted to $2017 Basis 16,000 Yabulu (Queensland - Australia) Ramu (MCC - Papua New Guinea) 14,000 US$/tonne Operating Cost 12,000 VNC (Vale - New Caledonia) Tocantins (
Slide 27: Baptiste Deposit – PEA Revision
Baptiste Deposit – PEA Revision FPX Nickel will undertake Baptiste PEA revision targeting the following upside parameters: Parameter Description Higher Grade Mill Feed Potential for ~20-25% higher grade resources in early years of mining based on 2017 drilling Optimized Recoveries Potential for high
Slide 28: Baptiste Deposit – Conceptual Site Layout
Decar Nickel District – Baptiste Deposit Conceptual Site Layout (based on 2013 PEA) ● Pit Outlines for Mining Phases 1 and 4 ➢ 2017 drilling in South East Extension area to increase Phase 1 ore tonnage ● Tailings impoundment ➢ Design includes water reclaim and recycle ➢ Potential for CO2 capture and
Slide 29: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Near-Surface Consistent Grade Conventional Open Pit Mining • Consistent grade with low • Bulk mining operation variability • Truck and shovel • Higher-grade near-surface zone • Low strip ratio 0.17:1 for starter pit Large Resource with C
Slide 30: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Low Capital Intensity Premium Fe-Ni Product • Low capital intensity compared • Potential to bypass smelters for to recent Ni projects direct sale to ferronickel and stainless steel producers • ~US$36K/t annual Ni output (2013 PEA) • 2014
Slide 31: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Excellent Jurisdiction Excellent Local Relationships • Signed MOU and strong • British Columbia rated 2nd most relationship with Tl’azt’en First attractive mining jurisdiction in Nation world by Mining Journal (2017) • Local community in
Slide 32: Mich Property (Yukon)
Mich Property (Yukon) ● 50 km SE of Whitehorse ➢ 16 km from Alaska Hwy ➢ 200 km from Skagway, AK ● 2014: Two-hole, 873 m drill program completed ➢ Both holes carry long intervals of 0.087% DTR Ni Skagway ● Proposed Drill Holes ➢ 2-stage drill programs ➢ Track >0.08% Ni surface samples to the southea
Slide 33: Share Structure & Financial Position
Share Structure & Financial Position Recent Price: C$ 0.16/share FPX (TSX-V): 3-Year Price Chart ➢ 52-week Range: C$ 0.075 – C$ 0.18 (C$/share) ➢ Market Capitalization: ~ C$ 24 million ➢ Average daily volume: ~ 50,000 shares Shares Outstanding ➢ Basic: 146.0 million ➢ Fully Diluted: 160.1 million ➢
Slide 34: Management
Management ● Martin Turenne – President, CEO & Director ➢ Executive with over 17 years’ experience in the commodities industry, including over 7 years in the mining industry ➢ Formerly CFO of FPX Nickel from 2012 to 2015 ➢ Formerly with KPMG LLP and Methanex Corporation ➢ Chartered Professional Acco
Slide 35: Board of Directors
Board of Directors ● Peter Bradshaw – Chairman ➢ Exploration geologist with 45 years experience with Barringer Research, Placer Dome and Orvana Minerals ➢ Key Discoveries/projects: Porgera, Kidston, Misima, Omai, Decar ➢ Member, Canadian Mining Hall of Fame ● Peter Marshall ➢ Mining engineer with 30
Slide 36: FPX Nickel Corp. contact details
FPX Nickel Corp. Suite 725 – 1155 West Pender Street Vancouver, BC Canada V6E 2P4 Phone: +1 604-681-8600 www.fpxnickel.com info@fpxnickel.com Twitter: @FPX_Nickel 36