Nordic Mining ASA · OSL:NOM
Nordic Mining ASA — Q4 2008 Earnings Presentation
34 slides from Nordic Mining ASA's earnings presentation, Feb 27, 2009
Slide 1: Q4 2008
Q4, 2008 February 27th, 2009 Ivar S. Fossum, CEO Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com
Slide 2: Disclaimer
Disclaimer This document has been used by Nordic Mining during an oral presentation. Therfore, 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 war
Slide 3: Agenda
1. Highlights 2. Preliminary report per 31.12.08 3. Projects and plans
Slide 4: Highlights
Highlights Plan for development and operation and EIA for Engebø completed and filed Scoping study completed, confirming combined mining scenario Production of high quality garnet verified Significant downturn in the market for anorthosite products Anorthosite qualified as capping material for conta
Slide 5: 2. Preliminary report per 31.12.08
2. Preliminary report per 31.12.08
Slide 6: Preliminary P&L per December 2008
Preliminary P & L per 31 December 2008 Year Year Q4-08 Q4-07 Amounts in NOK million 2008 2007 Unaudited Unaudited Unaudited Audited 5.7 5.3 Sales 17.8 12.1 0.1 0.2 Other income 0.2 0.5 0 (0.8) Cost of sales (1.4) (3.5) (4.1) (1.9) Payroll and related costs (11.8) (5.4) (2.0) (0.7) Business service/M
Slide 7: Preliminary Balance Sheet per December 2008
Preliminary Balance Sheet per 31 December 2008 Amounts in NOK million 31.12.08 31.12.07 Unaudited Audited Non-current assets 98.1 50.9 Cash 39.8 23.7 Other current assets 7.6 6.1 Total assets 145.6 80.8 Equity 78.5 46.0 Non-current liabilities 47.6 22.1 Current liabilities 19.5 12.7 Total equity and
Slide 8: Financial position
Financial position • Financial flexibility for planned activities into 2010 • Limited financial committments in 2009 • Focus on value driving milestones • Strategic position constitutes a solid base for industrial and future partnerships
Slide 9: Stable shareholder base
Stable shareholder base *) *) As per 23.02.09
Slide 10: 3. Projects and plans: Engebø - Ti
3. Projects and plans Engebø - Ti
Slide 11: Engebøfjellet, Europe's new titanium source
Engebø rutile project Engebøfjellet, Europe’s new titanium source Target: To position Engebø as a long term supplier to the European pigment industry and producers of Ti metal
Slide 12: Industrial area permit and EIA
Industrial area permit and EIA • All important environmental and social aspects covered through: Industrial area permit Waste disposal permit Environmental impact analysis • Filed with municipalities on February 19th • Largest EIA in Norwegian mining industry – 30 sub analysis • Comprehensive analys
Slide 13: Plan for mining and operation
Plan for mining and operation Open pit with subsequent underground operation 40-50 yrs
Slide 14: NRK Sogn og Fjordane 27.02.2009
NRK Sogn og Fjordane 27.02.2009 Har tru pa gruvedrift Gruvedrift i Engebofjellet vil f4 omfattande konsekvensar for miljoet i Vevring og Naustdal. Det syner konsekvensanalysen. ASGEIR REKSNES VEGAR ERSTAD asgeir.reksnes@nrk.no vegar.erstad@nrk.no Publisert 24.02.2009 13:39. Nordic Mining planlegg ei
Slide 15: Visual impact and open pit lay-out
Visual impact and open pit lay-out
Slide 16: Slide 16
Slide 17: Slide 17
Slide 18: Slide 18
Slide 19: Produksjon av rutil og granat
Produksjon av rutil og granat
Slide 20: Geological model – scoping study
Geological model – scoping study Further drilling planned in Q4 Resource Mill. TiO2 % 50 drill holes (15,000 meters) class JORC tons >1000 surface samples 5000 drill hole samples Measured - - Resource estimate of 382 Mill Indicated 31.7 3.77 tons @ 3.96% TiO2 in situ Inferred 122.6 3.75
Slide 21: Engebø rutile project competitive advantages
The Engebø rutile project has significant competetive advantages: • Free of radioactive elements • High grade 94 – 96% TiO2 • Simple export logistics • Close to market Feedstock selection factors: Location Cost of consumables Waste disposal costs Freight costs Rel. Economic value Technology Ore comp
Slide 22: Garnet
Garnet - Capable of making a 95% pure garnet concentrate - 80 mesh waterjet grade (> 150 microns and < 350 microns) - Cutting performance within the range of successful current garnet products on the world market
Slide 23: Silica legislation is driving the garnet market
“Silica legislation” is driving the garnet market Main applications: Supply/demand: Sandblasting World production: 450 – 500 000 tons Waterjet cutting Expected growth: 3-5% per annum Glass polishing Hard rock garnet Pool filtration Main producers: Alluvial garnet Coated abrasives Water filtration Au
Slide 24: 3. Projects and plans: Gudvangen - anorthosite
3. Projects and plans Gudvangen - anorthosite
Slide 25: Gudvangen Stein hit by the halt in the building industry
Gudvangen Stein hit by the halt in the building industry • Sales in January down 50% from December 2008, and 50% down from January 08. • Temporary lay-offs as from February 1st • EU – directives on greenhouse gases will contribute to a regain in the insulation market.
Slide 26: StatoilHydro & Nordic Mining joint cooperation
Gudvangen anorthosite StatoilHydro & Nordic Mining joint cooperation ”Enhancing value from anorthosite and rutile-eclogite by CO2 based mineral reactions” Target reaction: CO2 (110 kg) Anorthosite 1 tonne Alumina Silica (300 kg) CaCO3 (490 kg) (250 kg)
Slide 27: Enhancing mineral value, binding CO2
Gudvangen anorthosite Enhancing mineral value, binding CO2 Natural gas Anorthosite 5 mill. tpa CO2 Benchmark figures: 0,55 mill tpa Carbonisation process $mill 1 800 CAPEX $mill 600 REV/YR Recent alumina plant, Hydro Silica Alumina < 2,45 mill tpa 1,5 mill tpa Calcium carbonate < 0,7 mill tpa Tailin
Slide 28: Overall progress plan
Gudvangen anorthosite Overall progress plan Technical Technical Process design Pilot feasibility feasibility Pilot design & construction lab scale lab pilot engineering & production 2009 2010 • Commercialization strategy • Licensing • IPR strategy • Ensure sufficient rights in contracts
Slide 29: Capping of contaminated sediments
Capping of contaminated sediments
Slide 30: 3. Projects and plans: Keliber - Li
3. Projects and plans Keliber - Li
Slide 31: Substantial activity from Nordic players with international partners
Keliber lithium project Substantial activity from Nordic players – with international partners Lithium Battery Li-batteries Electric / carbonate chemicals hybride vehicles Keliber (Fi) OMG (Fi / US) Miljø Innovasjon (N) / Miljøbil Grenland (N) / Kemira (Fi) Electrovaya (Can) Tata Motors (India) Euro
Slide 32: High-end minerals, an interesting hedge
Company overview High-end minerals, an interesting hedge Metals and minerals price development 600 500 Gold Nickel 400 Index Zink 300 Iron ore 200 TiO2 100 LiCO3 0 00 Q 0 Q 1 02 Q 3 03 04 Q 5 Q 6 06 07 08 0 0 0 0 0 1- 4- 3- 2- 1- 4- 3- 2- 1- 4- 3- 2- Q Q Q Q Q Q Q Years
Slide 33: Value driving milestones ahead
Investment highlights Value driving milestones ahead ENGEBØ: 11 Pilot production 20 ENGEBØ: Partner and offtake agreements 10 20 GUDVANGEN: KELIBER: Pilot plant design Project partner and and engineering downstream integration KELIBER: ENGEBØ: Project financing Permits for Project & Waste disposal E
Slide 34: Thank you!
Thank you ! www.nordicmining.com