Nordic Mining Asa · OSL:NOM
Nordic Mining Asa — Investor Presentation (January 2016)
39 slides from Nordic Mining Asa's investor presentation, January 2016
Slide 1: Company presentation January 2016
Company presentation January 2016 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. 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: Minerals for a sustainable future
Minerals for a sustainable future Platinum, Palladium Titanium - natural rutile High Purity Quartz Lithium Seabed minerals exploration Developing high-value assets in the Nordic Region 3
Slide 4: Pt Ti Si
Pt Lighter aircrafts Ti Clean air Pd Renewable energy Si Electric cars Li4
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Slide 6: Shareholder structure and share price development
Shareholder structure and share price development Largest shareholders* Share overview and share price development* Name of shareholder No. of shares % Share overview 1 NORDNET BANK AB (NOMINEE) 29 795 240 7,7 % Stock symbol NOM 2 SKAGEN VEKST 18 416 432 4,8 % Stock exchange Oslo Axess 3 NORDEA BANK
Slide 7: Board of Directors and Management
Board of Directors and Management Board of Directors Management Tarmo Tuominen, Chairman Ivar S. Fossum, CEO Chief Supply Chain Officer in Nordkalk, 20 years experience from management positions Finland. Geologist with broad mining in Hydro (oil/gas and fertilizers) and FMC experience Technologies m
Slide 8: Nordic Mining Group
Nordic Mining Group NORDIC MINING ASA NORDIC QUARTZ NORDIC OCEAN NORDIC RUTILE AS KELIBER OY AS RESOURCES AS 100% 25% 100% 80% 8
Slide 9: Engebø: One of the world's largest rutile deposits
Engebø One of the world’s largest rutile deposits 9
Slide 10: Engebø: One of the world's largest rutile deposits
Engebø One of the world’s largest rutile deposits JORC resource @ 3.77% TiO of 154M tonnes 2 Historical estimate of 383M tonnes @ 3.96% TiO2 10
Slide 11: Approved industrial area plan and discharge permit by the Norwegian government
17 April 2015 Approved industrial area plan and discharge permit by the Norwegian government 11
Slide 12: Well-defined deposit
Well-defined deposit Total of 50 exploration drill holes JORC Resource* Resource class Mill tonnes TiO2% @ JORC 3% cut-off Indicated 31.7 3.77 Inferred 122.6 3.75 Total 154.3 3.77 50 drill holes (15,000 meters) Planned drilling program of approx. 6,500 meters 1,129 surface samples Open pit m
Slide 13: Engebø is among the largest rutile deposits in the world
Engebø is among the largest rutile deposits in the world Rutile projects’ grade and target production 4,50% Engebø 4,00% 3,50% Murray Basin 3,00% Rutile (%) Cerro Blanco 2,50% 2,00% Sierra Rutile 1,50% Coburn Donald 1,00% Ranobe Planning 0,50% Kwale Moma Construction 0,00% Production -0,50% Grande C
Slide 14: The highest rutile grade and lowest impurity content
The highest rutile grade and lowest impurity content Rutile grade for current feedstock producers and planned projects Engebø 3.77% Murray Basin ‐ Iluka 2.32% Cerro Blanco 2.10% Akonolinga (Years 1‐6) 1.66% Project Sierra Rutile 1.42% Producer Akonolinga 1.15% Kwale 0.65% Snapper 0.59% Donald 0.37%
Slide 15: Why is rutile an attractive mineral?
Why is rutile an attractive mineral? • Has unique opacity and reflection characteristics • Is an environmentally friendly pigment component • Gives no reactions from the human body • Effective reflection of UV radiation • Can be prosessed to a strong, light and non-corrosive metal 15
Slide 16: Garnet, by-product with benefits for the environment
Garnet, by-product with benefits for the environment • Preferred sand-blasting medium, replacing sand with contents of free silica • Garnet is used as the primary cutting medium in water-jet cutting machines • Annual global production of garnet is approximately 2 million tonnes • Broad prices range
Slide 17: The TiO2 value chain from mine to consumer
The TiO2 value chain from mine to consumer Mining Processing End use Rutile is mined from ore or Rutile is processed through Majority of TiO2 feedstock is mineral sands producing a rutile chlorination in reactors which used in production of pigment concentrate produces TiO2 pigment for paints,
Slide 18: Long sea freights underpin attractiveness of new European supply
Long sea freights underpin attractiveness of new European supply 22% 8% 5% 8% Norway 5% Canada Ukraine US 5% China 5% 3% India 19% 20% Vietnam Sierra Leone Australia South Africa Rutile producer Ilmenite producer Cylinder indicates % of world TiO2 feedstock production Zimbabwe Ilmenite & rutile prod
Slide 19: European pigment majors will be future customers
European pigment majors will be future customers Regional, stable supply brings customer benefits Substantial freight reduction compared to existing supply Plant-to-plant shipment Simple logistics improve working capital, storage and planning Several European customers can each take Engebø’s
Slide 20: Efficient and area-tight concept, low transportation costs
Efficient and area-tight concept, low transportation costs 20
Slide 21: Preliminary key figures
Preliminary key figures Engebø key figures Life of mine 50 years Open pit production 10 - 15 years Underground 35 - 40 years CAPEX USD 300 million NPV after tax @ 8% WACC USD 466 million IRR after tax 20.7 % Payback time (CAPEX/EBITDA) 4.5 years Break-even price for rutile (IRR = 0) USD 370 per tonn
Slide 22: Preliminary capital cost and OPEX estimates
Preliminary capital cost and OPEX estimates* Capex estimate USDm OPEX estimates (open pit) USD/t rutile Royalties and land acquisition 13 Ex. by-product credit 550 Infrastructure and civil 83 Incl. by-product credit 185 Mine 17 Crushing facility 22 Wet process package 107 Peer comparison Sierra USD/
Slide 23: Positive market outlook - robust project financials
Positive market outlook - robust project financials* Rutile price Low NM RBC scenarios Base case LT-est.** USD 800 USD 1,000 USD 1,250 Key figures NPV @ 8% (USD million) 281 466 670 IRR 16.2% 20.7% 25.2% Market trends and long project lifetime are favourable for project financials Note (*): Assumpti
Slide 24: Project development – tentative timeline
Project development – tentative timeline 2015 2016 2017 2018 Permits Resource classification Process tests & optimalisation Water & power supply Eng. & cost review Pre-feasibility Study Pilot production Basic engineering Market/offtake Def. feasibility study(DFS) Project financing Investment decisio
Slide 25: Development activities towards PFS
Development activities towards PFS Activity Further description Cost estimate Resource classification • Core drilling approx. 6,500 meters in the open pit zone, drill USD 1.4 million core analysis, geotechnical assessments • Resource modeling and estimations in accordance with the JORC Code 2012 Pro
Slide 26: Drilling program will start in February
Drilling program will start in February • Around 40 drill holes; approximately 6,500 meters, primarily in the open pit area – Finnish company Kati assigned • Geotechnical assessments – Wardell Armstrong assigned • Resource modeling and estimations – Competent person Adam Wheeler Resource estimations
Slide 27: Nordic Mining Group
Nordic Mining Group NORDIC MINING ASA NORDIC QUARTZ NORDIC OCEAN NORDIC RUTILE AS KELIBER OY AS RESOURCES AS 100% 25% 100% 80% 27
Slide 28: Nordic Quartz (100%) - Development in High Purity Quartz
Nordic Quartz (100%) - Development in High Purity Quartz Project highlights Key features Estimate of 3.45 million tonnes of quartz, under Outcropping hydrothermal quartz deposit exploration* Mine life up to 60 years (30 years in base case) Low in critical elements as Ti, Al, Fe, P, Na, K, Li
Slide 29: Completed core drilling will give qualified resource estimate
Completed core drilling will give qualified resource estimate 6 holes drilled of a total of 600 meters BH1 BH2 BH4 BH3 a, b, c Quality Total impurities SiO2 % (ppm) Nordic Quartz 13 99.9987 IOTA Std 19 99.9981 IOTA 4 12 99.9988 IOTA 6 11 99.9989 Process tests document ultra-high quality 29
Slide 30: Visual inspection of cores confirms significant quartz zones in all drill holes
Visual inspection of cores confirms significant quartz zones in all drill holes BH ID Elevation Elevation Length of Total Massive start of hole end hole hole (m) quartz quartz zone (m.a.s.l.) (m.a.s.l.) zone* (m) (m) BH 1 283 234 62 41.7 7.8 BH 2 281 209 105 82.8 29.6 BH 3a 231 204 66 37.2 20.4 BH 3
Slide 31: Scoping study reveals robust project financials
Scoping study* reveals robust project financials Project highlights • Small-scale mining operation; 20,000 – 30,000 tonnes per year • 30 - 40 employees • Limited environmental impact • High purity and high value products require advanced processing facilities Key assumptions and figures Units Scopin
Slide 32: Nordic Mining Group
Nordic Mining Group NORDIC MINING ASA NORDIC QUARTZ NORDIC OCEAN NORDIC RUTILE AS KELIBER OY AS RESOURCES AS 100% 25% 100% 80% 32
Slide 33: Moving forward in high-grade lithium
(25%) Moving forward in high-grade lithium Project highlights Key features Estimated 6.2 million tonnes mineral resource at an Mining permit in place for the Länttä deposit average grade of 1.26 Li2O (JORC Code 2004/2012)* Ideally located; excellent infrastructure and port Region with promis
Slide 34: Keliber Oy – Steadily increasing resource base
Keliber Oy – Steadily increasing resource base Tonnage (1,000 • Successful drilling in Rapasaari Category Deposit LiO2 % tonnes) winter season 2014/2015 Measured Länttä 433 1.12 • Re-analysis confirmed higher lithium Indicated Länttä 868 1.06 grade from Syväjärvi Syväjärvi 1,668 1.34 • Keliber’s res
Slide 35: Nordic Mining Group
Nordic Mining Group NORDIC MINING ASA NORDIC QUARTZ NORDIC OCEAN NORDIC RUTILE AS KELIBER OY AS RESOURCES AS 100% 25% 100% 80% 35
Slide 36: Pioneer in seabed mineral exploration in Norway
(80%) Pioneer in seabed mineral exploration in Norway Company highlights Company highlights Nordic Ocean Resources (NORA) has taken a pioneering NORA has applied for exploration licenses in the initiative for exploration of Norway’s seabed mineral Norwegian Economic Zone, and has ambition to be
Slide 37: Patent granted for new alumina technology
Patent granted for new alumina technology An alternative process for production of alumina • Nordic Mining and Institute of Energy Technology (IFE) has jointly developed a new, patented technology for production of alumina from anorthosite • The technology utilizes mineral acid and CO2 to produce al
Slide 38: Investment highlights
Investment highlights Significant value potential • Sum of the project NPVs @ USD 550 million* Titanium – natural rutile vs. market cap. below USD 30 million Titanium - Natural Rutile • World class rutile deposit; High Purity Quartz 50 years mine life and highest global TiO2 grade • Close to market
Slide 39: Safety – Environment - Innovation
Safety – Environment - Innovation www.nordicmining.com 39