Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q2 2022 Earnings Presentation
30 slides from Nordic Mining Asa's earnings presentation, Aug 16, 2022
Slide 1: Q2 2022 Interim Presentation
Early construction works progressing Fully permitted project Minerals for a sustainable future Large deposit with unique location EN Expand Oslo: NOM Significant funds from Keliber exit Q2 2022 Interim Presentation August 16, 2022
Slide 2: Disclaimer
Disclaimer This document has been used by Nordic Mining during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or wa
Slide 3: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 3
Slide 4: Q2 2022 Highlights – over USD 80 million equity secured for Engebø YTD
Q2 2022 Highlights – over USD 80 million equity secured for Engebø YTD ➢ Good progress on early construction works at Engebø, production start-up in H2 2024 maintained ➢ Engebø rutile documented as most climate friendly titanium feedstock ➢ Rutile offtake agreement and investment of USD 20 million s
Slide 5: Sustainable production of high-end industrial minerals and metals
Sustainable production of high-end industrial minerals and metals Rutile (Titanium dioxide) • Environmentally friendly pigment • Air cleaning surface materials • Aircrafts and aerospace • Health applications Garnet Engebø Rutile (TiO2) and Garnet • Health and environmentally (100%) friendly cutting
Slide 6: Sustainability at the core of our business
Sustainability at the core of our business Environmentally responsible Positive impact on communities Safe and healthy work environment ✓ Work towards zero-emission operations and ✓ Establish relations based on transparency, ✓ Build operations with safety embedded in contribute to reduce value-chain
Slide 7: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 7
Slide 8: Health & Safety
Health & Safety HSE status Key Performance Year to Q2 Target indicator date ▪ Mandatory HSE training completed for workforce Lost time injuries ▪ No injuries in Q2 (1/1 million working 0 0 <2,5* hours) Total recordable injuries (1/1 million 0 0 <8,8* Incidents working hours) ▪ Handling of asbestos c
Slide 9: Good progress on engineering and early construction works
Good progress on engineering and early construction works 9
Slide 10: Levelling of lower part of process area next to quay
Levelling of lower part of process area next to quay Source: 10
Slide 11: Construction of access road
Construction of access road Source: 11
Slide 12: Construction of access road
Construction of access road 12
Slide 13: Environmental monitoring
Environmental monitoring Source: 13
Slide 14: Environmental monitoring
Environmental monitoring A comprehensive monitoring program has been implemented: • Developed in collaboration with DNV • Air born dust measurements • Soil and water quality measurements • Monitoring of particles concentrations in marine surface water • Noise measurements on land • Noise and vibrati
Slide 15: Engebø rutile the most climate friendly titanium feedstock
Engebø rutile the most climate friendly titanium feedstock Life Cycle Analysis proves superior rutile product Global Warming Potential Synthetic rutile Australia • Life Cycle Analysis (LCA) carried out by Minviro, UK Titanium slag Norway including comprehensive assessment of GHG emissions1 Titanium
Slide 16: Final agreements signed with strategic long-term partner Iwatani
Final agreements signed with strategic long-term partner Iwatani In June, Nordic Mining signed final rutile offtake agreement and investment agreements with Iwatani Corporation. The agreements comprises: • Long-term offtake of 20,000 tonnes per annum of natural rutile from Engebø over 5 years • NOK
Slide 17: Long-term offtake agreements provide revenue visibility
Long-term offtake agreements provide revenue visibility Rutile Garnet EU Partner Binding offtake agreement signed in June 2022 Final negotiations on binding offtake agreement Ongoing negotiations on offtake agreement 5-year agreement 5-year agreement 5-year agreement From commencement of production
Slide 18: Q2 remained firm for TiO2 pigment production and titanium metal
Q2 remained firm for TiO2 pigment production and titanium metal Rutile prices reported to be in excess of USD 1,500/mt FOB in H1 2022, with main producers expecting continued price increases in H2 2022 TiO2 pigment • Strong market conditions for titanium dioxide pigment and overall industry utilizat
Slide 19: Drivers for garnet remain strong
Drivers for garnet remain strong Garnet • Ongoing growth in demand for high quality garnet in both waterjet cutting and abrasive blasting • Drivers are the investments in infrastructure, oil and gas industry as well as shipbuilding and manufacturing. The aerospace industry is an important driver as
Slide 20: Financing significantly derisked with over USD 80 million in equity secured
Financing significantly derisked with over USD 80 million in equity secured • NM has YTD secured over USD 80 million in equity for Engebø1: • NOK 132.5 million investment structured as convertible loan from EPC investor group • NOK 191.7 million equity investment from strategic partner Iwatani Corpo
Slide 21: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 21
Slide 22: Sale of stake in Keliber Oy secures funding of EUR 46.9 million
Sale of stake in Keliber Oy secures funding of EUR 46.9 million • NM has agreed to sell its shares in Keliber to Sibanye Stillwater for a cash consideration of EUR 157.28 per share, in total EUR 46.9 million ~15% above of the Group’s fair value per Q1 of EUR 137 per share • Return of over 540% on hi
Slide 23: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 23
Slide 24: Fully funded up to close of remaining project financing
Fully funded up to close of remaining project financing The Group’s balance sheet remains solid: o NOK 39.6 million in cash - NOK 22.5 million on Escrow account to continue construction works o Engebø development costs of NOK 116.8 million capitalized under «Mine under construction» - Early construc
Slide 25: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber – Lithium 4. Financial update 5. Q & A 25
Slide 26: Q&A
Q&A ➢ Financing of Engebø significantly derisked with over USD 80 million equity secured ➢ Rutile offtake agreement and investment of USD 20 million signed with Iwatani ➢ Keliber agreed sold for EUR 46.9 million with return over 540% on investment ➢ Good progress on early construction works at Engeb
Slide 27: Appendix #1 Consolidated income statement
Appendix #1 Consolidated income statement Q2-2022 Q2-2021 Acc.2022 Acc.2021 2021 Unaudited Unaudited Amounts in NOK million Unaudited Unaudited Audited - - Other income - 0.2 0.2 (1.5) (4.5) Payroll and related costs (5.9) (8.7) (16.2) (0.0) (0.0) Depreciation and amortization (0.1) (0.1) (0.1) (9.7
Slide 28: Appendix #2 Consolidated statement of financial position
Appendix #2 Consolidated statement of financial position 30.06.2022 31.12.2021 Amounts in NOK million Unaudited Audited ASSETS 2 1 Early construction works costs in Q2 of Evaluation and exploration assets - 28.8 around NOK 88 million, including Mine under construction 1 116.8 - acquisition of proper
Slide 29: Appendix #3 Engebø has superior climate footprint
Appendix #3 Engebø has superior climate footprint Titanium producers analysis Total Scope 1 and 2 Emissions vs Emission Intensity Climate goals 4 500 000 3,5 • To produce top-rated products on Global Warming Potential 4 000 000 Total scope 1 and 2 emissions (tCO2e) 2020 3,0 GHG emission intensity (t
Slide 30: Appendix #4 Goal of net gain for biodiversity
Appendix #4 Goal of net gain for biodiversity New methods for continuous tracking of biodiversity • As a response to The UN Convention on biodiversity ’The Post-2020 Global Biodiversity Framework’, the Engebø project has a goal of net gain for biodiversity over the Life of Mine • A Biodiversity Acti