Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Q4 2020 Earnings Presentation
26 slides from Nordic Mining Asa's earnings presentation, Feb 16, 2021
Slide 1: Q4 2020 Presentation
Well funded Large deposit with unique location Minerals for a sustainable future All major permits in place EN Expand Oslo: NOM Valuable investment in lithium Q4 2020 Presentation February 16, 2021
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. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 3
Slide 4: Sustainable production of high-end industrial minerals
Sustainable production of high-end industrial minerals 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 and blastin
Slide 5: Valuable assets nearing construction
Valuable assets nearing construction Engebø – Rutile and Garnet (100%) • Post-tax NPV@ 8% of USD 344m and IRR 20% • Payback <5 years from start of production • Life of Mine of 42 years, with substantial resources for future extension • All major permits granted Engebø Rutile • Heads of Agreement for
Slide 6: Responding to the need of critical minerals
Responding to the need of critical minerals • EU Commission has taken actions to make Europe’s raw material supply more secure and sustainable • EU’s list of Critical Raw Materials reflects economic importance and supply challenges • Titanium and Lithium are both on the list of critical raw material
Slide 7: ESG at the core of our corporate strategy
ESG at the core of our corporate strategy Take climate responsibility • NM’s ESG goals are based on the United Nation’s sustainable development goals Reduce environmental • Our goals are integrated in project footprint development in accordance with high international standards • ESG management plan
Slide 8: Highlights
Highlights • Reduction of initial Engebø capex in the range of USD 100 million • Reduced environmental footprint from lower chemical consumption and CO2 emission • Operational license for Engebø reconfirmed by the Directorate of Mining • The DFS update progressing according to plan despite Covid-19
Slide 9: ESG milestones and improved sentiment towards green transition have increased interest for NOM
ESG milestones and improved sentiment towards green transition have increased interest for NOM KEY SHARE DATA SHARE PRICE DEVELOPMENT TOP 10 SHAREHOLDERS 12 February 2021 July 2020 – February 2021 12 February 2021 Stock Exchange / ticker: NORDNET BANK AB 9.4 % Nominee Euronext Expand Oslo NOK 4,0 16
Slide 10: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 10
Slide 11: Engebø Rutile and Garnet – a large dual-mineral resource
Engebø Rutile and Garnet – a large dual-mineral resource • 2.5 km long hard rock eclogite orebody outcropping at surface • Location by the North Sea with ice free, deep sea quay provides advantageous logistics • 40 minutes drive from Førde regional centre and two local airports • Renewable hydro pow
Slide 12: DFS update unlocks significant CAPEX reduction
DFS update unlocks significant CAPEX reduction • Preliminary numbers indicate reduction in initial CAPEX in the range of USD 100 million compared to 2020 DFS • Process plant layout finalized; physical footprint reduced by around 40%, with ROM1 unchanged at 1.5Mt • Proposals for all mechanical and ma
Slide 13: ESG focus integrated in the Engebø project development
ESG focus integrated in the Engebø project development Take climate • Use of electrical dryers instead of natural gas fueled dryers results in responsibility more than 80% reduction of total CO2 emissions Reduce environmental • New process chemicals have been footprint approved by the Environment Ag
Slide 14: Environmental and Social Performance - key to success
Environmental and Social Performance - key to success Integrated ESG Management Plans for Engebø are being developed in line with International Finance Corporation’s (IFC) standards: • Stakeholder Engagement Plan finalized • Energy Management Plan in progress and planned completed Q1 2021 • Extracti
Slide 15: DFS update important milestone towards construction
DFS update important milestone towards construction Definitive Feasibility Value Engineering indicates Financing for project Study confirms Engebø potential for considerable construction as a world class rutile reduction in initial capital (timeline for financing can and garnet project expenditure v
Slide 16: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 16
Slide 17: Developing towards finalization of DFS in H2 2021
Developing towards finalization of DFS in H2 2021 • Lithium hydroxide capacity increased to 15,000 tpa and concentrator moved to the main mining area • Basic engineering for concentrator, tailings solutions and chemical plant is ongoing • Environmental permit application submitted for the chemical p
Slide 18: Lithium prices have rallied, boosting interest for lithium projects
Lithium prices have rallied, boosting interest for lithium projects Lithium Hydroxide 56.5% China (USD/mt) USD 10 000 • Prices for battery-grade lithium USD 9 500 have rallied over the last months driven by increased demand from USD 9 000 global battery producers and improved sentiment towards the U
Slide 19: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 19
Slide 20: Seabed minerals: Norwegian regulation opens for new strategy
Seabed minerals: Norwegian regulation opens for new strategy • NORA initiated discussions on seabed exploration with Norwegian authorities in 2008 • NORA, Norwegian University of Science and Technology (NTNU) and Equinor established the first scoping project in 2012 • NORA has participated in the 4-
Slide 21: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 21
Slide 22: Fully financed for finalization of DFS update and into H2 2021
Fully financed for finalization of DFS update and into H2 2021 Financial status as of Q4 The Group’s balance sheet remains solid: o NOK 42.2 million in cash o Net cash outflow of NOK 7.1 million, reflecting development activities to finalize DFS update o In line to finalize DFS update on budget of N
Slide 23: Agenda
Agenda 1. Introduction 2. Engebø Rutile and Garnet 3. Keliber - Lithium 4. Nordic Ocean Resources (NORA) 5. Financial update 6. Q & A 23
Slide 24: Q & A
Q&A Reduction of initial Engebø capex in the range of USD 100 million Reduced environmental footprint from lower chemical consumption and CO2 emission Operational license for Engebø reconfirmed by the Directorate of Mining The DFS update progressing according to plan despite Covid-19 implications 24
Slide 25: Appendices: Consolidated income statement
Appendices Consolidated income statement Q4-2020 Q4-2019 Acc.2020 2019 Unaudited Unaudited Amounts in NOK million Unaudited Audited - - Sales - - (4.2) (4.0) Payroll and related costs (14.4) (15.5) (0.1) (0.1) Depreciation and amortization (0.2) (0.2) (7.5) (11.5) Other operating expenses (27.9) (57
Slide 26: Appendices: Consolidated statement of financial position
Appendices Consolidated statement of financial position 31.12.2020 31.12.2019 Amounts in NOK million Unaudited Audited ASSETS Evaluation and exploration assets 28.3 26.1 Property, plant and equipment 0.4 0.5 Right-of-use assets 0.4 0.1 Financial assets 100.1 90.8 Total non-current assets 129.2 117.5