Nordic Iron Ore Ab · OMXSTO:NIO
Nordic Iron Ore Ab — Investor Presentation (July 2018)
34 slides from Nordic Iron Ore Ab's investor presentation, July 2018
Slide 1: Nordic Iron Ore
NORDIC IRON ORE Nordic lron Ore
Slide 2: Disclaimer
DISCLAIMER This document has been produced by Nordic Iron Ore AB (publ) (the “Company”). This document does not constitute or form part of, and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company nor sh
Slide 3: A Swedish Mining Development Company
NORDIC IRON ORE A SWEDISH MINING DEVELOPMENT COMPANY 3
Slide 4: Introduction
INTRODUCTION • Company backed by approx 9,000 investors • Preferential rights issue of SEK 36.5 million Completed June 2018 • Listing on Nasdaq First North First day of trading during September 2018 • Shareholders have invested SEK 245 million (c.$28m) to date 4
Slide 5: Introduction
INTRODUCTION • Resume production at fully owned brown field projects Blötberget and Håksberg, making up Ludvika Mines • Develop the intermediate Väsman iron field • Initial focus on Blötberget • All necessary permits in place to restart mining operations • Products comparable with the world’s highes
Slide 6: The Management Team
THE MANAGEMENT TEAM PAUL MARSDEN LENNART ELIASSON HANS THORSHAG MARKUS KARLSSON Managing Director CFO & Deputy Technical Director Senior Mining Engineer Managing Director & Project Manager • British Steel & Corus • LKAB Consulting • KPMG • Boliden • LKAB • Northland Resources • Swedbank Corporate •
Slide 7: Initial Focus on Blötberget
INITIAL FOC U S ON BLÖTBERGET ALL NECESSARY PERMITS IN PLACE TO RESTART MINING OPERATIONS 7
Slide 8: Exciting Potential in Väsman – Future Expansions
EXCITING POTENTIAL IN VÄSMAN – FUTURE EXPANSIONS 75000 65000 Targeting mineral 55000 resources in excess of 300mt* N S MAGNETIC FIELD MAP OF VÄSMAN
Slide 9: Project Overview – Mine Sites – Permitted Areas
PROJECT OVERVIEW – MINE SITES – PERMITTED AREAS 9
Slide 10: Ludvika Mines Principal Section
LUDVIKA MINES, DEVELOPMENT LUDVIKA MINES PRINCIPAL SECTION 10
Slide 11: Investment Case
INVESTMENT CASE • High Grade Iron Product with Increasing Demand • High Premiums Paid for NIO’s Product (Av. 69% Fe) • All Permits Granted for Operations • Low Capital Requirements for Starting Operations • Existing Mining Infrastructure • Logistics Solutions Already in Place • Low Execution Risk &
Slide 12: Market Opportunity
MARKET OPPORTUNITY \ ja Nordi Iron Ore °
Slide 13: Two Tier Market for Iron Ore
TWO TIER MARKET FOR IRON ORE • Two (2) separate markets with different pricings • Standard quality 62% Fe in oversupply • Premium quality >65% in deficit 13
Slide 14: Market Opportunity for High Quality Iron Ores
MARKET OPPORTUNITY FOR HIGH QUALITY IRON ORES • Market Opportunity • High quality iron ore premiums has grown significantly • Premium corresponding to approx. 80% vs. spot price of standard iron ore • Premiums have increased by approx. 500% during the last 18–24 months 14
Slide 15: Iron Ore Prices & Premiums
IRON ORE PRICES & PREMIUMS US dollars IRON ORE FINES PRICING /metric ton VOLATILE PRICES, 65% FE PREMIA GROWS OVER Q1-Q3 2017 AND THEN CONTRACTS IN Q4 NIO´s Product (69% Fe): 104 USD Premium +150% 15
Slide 16: Increased & Sustainable Demand
INCREASED & SUSTAINABLE DEMAND • Market drivers • Environmental concerns • Production efficiency • Increased demand from China and Asia • Premiums as high as USD 50/t for NIO’s average product • Shortage of supply of premium iron ore products for the foreseeable future 16
Slide 17: Low Execution Risk & Reduced Development Time
LOW EXECUTION RISK & REDUCED DEVELOPMENT TIME 17
Slide 18: Existing Mining Infrastructure
LOW CAPITAL REQUIREMENTS FOR STARTING OPERATIONS EXISTIN G MIN IN G INFR ASTR U CTU RE • Blötberget is a brownfield site in Bergslagen • Existing services: water, power, roads, rail • Existing assets – reduced start-up costs – Low capital intensity • Reduced development time 18
Slide 19: Logistics Solutions Already in Place
LOW CAPITAL REQUIREMENTS FOR STARTING OPERATIONS LOGISTIC S SOLU TION S ALR EAD Y IN PLAC E • Direct access to National Swedish rail network • Existing Letter of Intent with Rail Cargo of Austria • Existing Letter of Intent with Oxelösund Port 19
Slide 20: Process Plant and Train Loading Terminal
PROCESS PLANT AND TRAIN LOADING TERMINAL Future terminal rail loop Existing national rail network 20
Slide 21: Low Execution Risk & Reduced Development Time
LOW EXECUTION RISK & REDUCED DEVELOPMENT TIME • Previous operations demonstrate that the mine can produce • Many risks removed as logistics are in place • All permits in place • Feasibility Study used new data to de-risk the development with safer and cost effective mining methods • Use of the sunke
Slide 22: Financial Summary and Timeline
FINANCIAL SUMMARY AND TIMELINE 22
Slide 23: Economic Viability of Blötberget
FINANCIAL SUMMARY EC ON OMIC VIABILITY OF BLÖTBER GET • Estimated annual production = 1.4 Mt • Est. total production 12 years (LOM) = 16.8 Mt • Est. cash cost = USD 50/t product FOB** • Assuming net price received* = USD 80/t • Contribution = USD 30/t product TOTAL CONTRIBUTION OVER LIFE OF MINE > U
Slide 24: Going Forward 2018–2019
GOING FORWARD 2018 –2019 2018 2019 First Day of Trading Subscription Period TO1 (Warrant) Preferential Rights Issue 36.5 MSEK May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Golder Hired to finish Feasibility Study Feasibility Study Finalized Commencing Mine Construction & Secure Fu
Slide 25: Construction and Financing
CONSTRUCTION AND FINANCING • Feasibility Study will determine total CAPEX. • Present estimate USD 200 M • Mix of leasing, debt and equity • Use of contractors may reduce investment need 25
Slide 26: Why Invest in Nordic Iron Ore AB
WHY INVEST IN NORDIC IRON ORE AB 26
Slide 27: Huge Demand
HUGE DEMAND 27
Slide 28: It Is There – Among the Best in the World, Up to 71% Fe
IT IS THERE AMONG THE BEST IN THE WORLD UP TO 71%Fe! 28
Slide 29: It Is There – Underground Infrastructure
INTRODUCTION UNDERGROUD INFRASTRUCTURE IT IS THERE 29
Slide 30: It Is There – Rail Logistics
RAIL LOGISTICS IT IS TH ER E 30
Slide 31: As Is This – Port Ready Today
PORT READY TODAY AS IS TH IS 31
Slide 32: And This – All Required Permits Granted
ALL REQUIRED PERMITS GRANTED AN D TH IS X E X P L O R AT I O N UNDERSÖKNINGSTILLSTÅND (SV.) X MINING BEARBETNINGSKONCESSION (SV.) X E N V I R O N M E N TA L PERMIT MILJÖTILLSTÅND (SV.) X BUILDING PERMIT DETALJPLAN (SV.) 32
Slide 33: Thank You
Nordic Iron Ore
Slide 34: Shareholders per June 29, 2018
SHAREHOLDERS PER JUNE 29, 2018 Shareholder* Number of shares Votes & capital % Bengtssons Tidnings AB 32 730 995 25,98% Copperstone Resources AB** 16 370 000 12,99% Ludvika Holding AB 16 259 564 12,97% Nord Fondkommission AB 5 574 702 4,42% Garden Growth Industries AB 4 350 000 3,45% Emil Nilsson 4