Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — PDAC, Toronto (March 2019)
23 slides from Nordic Mining Asa's conference presentation, March 2019
Slide 1: Minerals for a sustainable future
Minerals for a sustainable future OAX: NOM Investor presentation Toronto March 2019 Ivar S. Fossum, CEO
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: High-value assets in the Nordic Region
High-value assets in the Nordic Region Pd Pt Platinum, Palladium Ti Engebø Rutile and Garnet (100%) Si Li High Purity Quartz Keliber Oy Lithium (18,5%) • Incorporated in Norway • Listed on Oslo Axess (OAX:NOM) • Market capitalization of USD 37m 3
Slide 4: Engebø Rutile and Garnet
Engebø Rutile and Garnet Large eclogite deposit located at tidal waters ✓ Outcropping deposit with unknown extension to depth ✓ Geotechnically stable orebody allows for effective mining ✓ Low impurities, negligible content of heavy metals and radioactive elements ✓ Easy transition from open pit to u
Slide 5: High grade mineralisation of rutile and garnet
High grade mineralisation of rutile and garnet Mineral resource and reserve classifications* Among the highest rutile grades 3% cut-off grade Tonnage Mt TiO2 % Garnet % Measured 15 3.97% 44.6% Indicated 78 3.87% 43.6% Measured & indicated 93 3.89% 43.7% Inferred 138 3.86% 43.5% Ore reserves Tonnage
Slide 6: Engebø progress highlights – towards construction
Engebø progress highlights – towards construction ➢ Engagement of financial debt advisor on 30 January ➢ HOA with Japanese trading house for rutile offtake and financing signed on 31 January ➢ Application for operational license filed on 1 February ➢ Framework for environmental monitoring filed to t
Slide 7: Rutile and Garnet - unique mineral properties, increasing demand
Rutile and Garnet - unique mineral properties, increasing demand Garnet Rutile Current world production: ~ 1.4 million tonnes Current world production: ~ 0.8 million tonnes WATERJET CUTTING SAND BLASTING ABRASIVES PIGMENT WELDING RODS TITANIUM Tests have demonstrated that Engebø can produce coarse a
Slide 8: Rutile prices forecasted to increase with growing demand
Rutile prices forecasted to increase with growing demand Global rutile demand has outpaced supply… …driving rutile prices up Likely new projects Other Kenya South Africa U$/tonne FOB Nordic Mining CIS Sierra Leone Australia 2,000 ‘000 TiO2 units Underlying demand 1,000 High 800 Long-term price estim
Slide 9: Ideally situated for sales to Europe and overseas
Ideally situated for sales to Europe and overseas Heads of Agreement on rutile offtake and financing • Nordic Mining has signed a Heads of Agreement with a reputable Japanese trading house related to long term offtake for rutile and participation in the construction financing for the Engebø project.
Slide 10: The first European producer of industrial garnet
The first European producer of industrial garnet Garnet market and price assumptions Current world production • Emerging mineral with strong growth in the waterjet cutting markets Estimated garnet price, Engebø PFS • Currently no European production Product / Case Low price High price Australi China
Slide 11: Cooperation with The Barton Group for Garnet
Cooperation with The Barton Group for Garnet The Barton Group Heads of Agreement • Barton, a family owned company founded in 1878, is a leading US • Nordic Mining has entered into a Heads of Agreement with Barton garnet producer and distributor with a strong foothold, particularly in Group, a MoU pa
Slide 12: Open pit with limited visual exposure
Open pit with limited visual exposure 12
Slide 13: Minimum ore haulage from pit to process
Minimum ore haulage from pit to process 13
Slide 14: Well suited for modular, off-site construction
Well suited for modular, off-site construction
Slide 15: Favourable internal logistics
Favourable internal logistics ✓ >16 years open pit mining ✓ Rich ore in the early years ✓ Low stripping ratio ✓ Glory hole concept with underground crushing facility ✓ Underground silos enables ore storage and operational flexibility ✓ Minimum haulage distance ✓ Limited visual impact ✓ Open pit give
Slide 16: A solid business case
A solid business case Assumptions Value Unit Output Value Unit Garnet price 250 USD/tonne Pre-tax NPV @ 8% 332 USDm Rutile price 1 070 USD/tonne Pre-tax IRR 23.8% % Garnet sales (from ~2027) 261 000 Tonnes per annum Life of mine 29 years Rutile sales (average) 32 500 Tonnes per annum Payback period
Slide 17: Attractive, long term cash flow
Attractive, long term cash flow <5 year payback period, IRR >20% (Post tax) USDm 200 150 100 50 0 -50 -100 Garnet revenue Rutile revenue Capex Maintenance capex (SIB) Opex, incl. change WC and royalty Tax -150 Post-tax cash flow Acc. post-tax cash flow <5 year payback -200 17
Slide 18: Upside opportunity and flexibility
Upside opportunity and flexibility NPV upside potential to the PFS base case USDm USD 51m upside potential A +54% • Garnet sales in line with production during the initial ten 512 years 47 13 USD 69m upside potential B 69 • Extension of mine life to 40 years by including Inferred Resources 332 51 C
Slide 19: Engebø, tentative timeline towards production
Engebø, tentative timeline towards production 2017 2018 2019 2020 2021 2022 Timeline to production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Regulation plan fresh water supply Detail regulation plan mine/process site Operational License Definitive feasibility study Offt
Slide 20: Keliber Oy: Equity issue successfully completed
Keliber Oy : Equity issue successfully completed • On 15 February 2019, Keliber completed a share issue with total gross proceeds of EUR 10m • The proceeds will be used for pre-construction development work and financing preparations, i.a. IPO • Following the share issue, the state-owned company Fin
Slide 21: Project Economics Key Figures
Project Economics Key Figures Significantly improved project economics despite higher CAPEX Pre-Tax Post-Tax CAPEX MEUR PAYBACK 3.7 yrs 4.1 yrs Direct 236 PERIOD *49 % shorter Indirect 77 IRR 28% 24% Total 313 “17 % increase *23 % increase NPV 510 MEUR 384 MEUR @8% *76% increase Total Revenue** 3 06
Slide 22: The most advanced lithium project in Europe
The most advanced lithium ——. project in Europe First mining company in Finland accepted to the pre-consultation procedure for permitting 5 - Mining permit for Syvajarvi received y - Environmental permit for Syvajarvi received (not yet legally valid) dy = So ec c= a @KELIBER Key Milestones [a Eo 202
Slide 23: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 2 3