First Growth Funds Ltd. · CSE:FGFL
First Growth Funds — Nevada Iron Holdings — Investor Presentation (June 2020)
19 slides from First Growth Funds's investor presentation, June 2020
Slide 1: Nevada Iron Holdings – Buena Vista Iron Ore Project
Nevada Iron Holdings Buena Vista Iron Ore Project High quality product from a stable jurisdiction June 2020
Slide 2: Project Summary
Project Summary • Located in mining friendly Nevada, USA Location • Proximal to rail line and company owned rail siding • Project located on private land • Very low waste:ore ratio of 0.5:1 Favorable Geology • Soft ore with minimal silica • Upgrades easily to clean 68% Fe conc - highly sought June 2
Slide 3: Company Overview
Company Overview Company Summary • Over $A34m has been invested in the development of the project from 2009 to date • Shareholders now actively looking at funding development • Nevada Iron Holdings controls the bulk of the Buena Vista iron district in Nevada and has an advanced, shovel ready project
Slide 4: Company Overview – Ownership
Company Overview Company Ownership • Nevada Iron Holdings is a private company owned by 3 shareholders • New Nevada Resources is the largest private landowner in Nevada • Rhodes Investments is controlled by Mick McMullen June 2020
Slide 5: Phase Development
Company Overview Phase 1 Development • Robust returns at long term Fe Discount Rate Pre Tax NPV ($m) ($US85/t 62% Fe) • Capex of $US300m – shovel ready, 0% $US824 15 month construction phase 5% $US452 • NPV DOUBLES at $US100/t 7.5% $US333 benchmark prices to over $US700m 10% $US242 June 2020 – very
Slide 6: Forecast Cumulative Pre Tax Cash Flow – Phase 1
Company Overview Forecast Cumulative Pre Tax Cash Flow – Phase 1 Cumulative Cash Flow - US$85/t 62% Fines $1,000.00 $800.00 $600.00 US$ M (Pre tax) June 2020 $400.00 $200.00 $- Year -1.5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Ye
Slide 7: Phase Development
Company Overview Phase 2 Development • Initial capital cost of $US300m (Phase 1) and another $300m in Year 3 (Phase 2) • Phase 2 doubles production from Year 4 onwards and takes advantage of the large iron ore inventory (non JORC) available in the NVH claims • In addition, as the only processing pla
Slide 8: Mining and Processing
Company Overview Mining and Processing • Two adjacent pits • Process plant adjacent to pits for short hauls • Dry stack tailings and owned June 2020 water bores located south of West Pit
Slide 9: Infrastructure
Company Overview Infrastructure • 74 km to Transcontinental rail line, 375 km to ports • Rail contract to several west coast ports in place. • Up to 5Mtpa of capacity available on the line (for Phase 2) June 2020 • Sealed highway to within 10km of site, graded dirt road remainder • Power available n
Slide 10: Permitting
Company Overview Permitting • Project is located on private land – all permitting by Nevada State • Permits in place • Water Pollution Control Permit (WPCP) • Reclamation Permit June 2020 • Air Pollution Control Permit • Rail Load Out WPCP – will be added as an engineering amendment to mine WPCP as
Slide 11: Iron ore – It's all about location
Iron ore It's all about location June 2020
Slide 12: Rail Infrastructure
Rail Infrastructure June 2020 • Company owned siding allows multi user access and doesn’t require trains to be split for loading • NVH is in the dominant position in the area for rail access • Agreement signed with Union Pacific for rail haulage to West Coast ports • Agreement needs updating to refl
Slide 13: Ports and Shipping
Ports and Shipping June 2020 • LOI signed with West Sacramento Port at competitive rates • Discussions ongoing with Oakland, San Francisco, Long Beach and Stockton to provide alternative ports • All West Coast ports looking to lock up non-coal tonnage • NVH in a strong position with ports - rates fa
Slide 14: Access, Power and Water
Access, Power and Water June 2020 • Sealed road (highway) to within 10km of mine gate • Water supply secured on mine property • Power secured and available 40km away at US6.5c/kwh rate, permitting underway by NV Energy • Potential for solar power at less than half the NV Energy Rate – not in economi
Slide 15: NI 43-101 Resources
NI43-101Resources a small portion of the larger story • Indicated mineral resource of 148.7 Mt grading 18.8% total Fe • Inferred mineral resource of 28.9Mt grading 19.6% total Fe • Resources are all shallow and open at depth and along strike • Potential to expand mineral resources through additional
Slide 16: NI 43-101 Mineral Reserves
NI 43 -101 Mineral Reserves • Probable mineral reserves of 111.2 Mt grading 18.6% total Fe for 20.7Mt contained Fe • Probable mineral reserve contained in West Deposit and Section 5 Deposit • Mineral reserves estimated using a long term Fe price of US$70/dmt for 62% Fe Platts CFR China material June
Slide 17: Dominant Land Position
Dominant Land Position Buena Vista Iron Province v The Company is the dominant player in the Buena Vista Iron Province with: • The largest land holding • The largest mineral resource and mineral reserve position June 2020 • The most advanced development project • The best access to infrastructure, w
Slide 18: Exploration Potential
Exploration Potential • Significant potential to expand the scale of the project through additional exploration • Initial exploration at Section 27 has discovered major new mineralized zones not in resource/reserve • Controlled tenements host potential for 20+ year mine life at double current plan p
Slide 19: Summary
Company Overview Summary • A fully permitted project in a mining friendly jurisdiction • Easily scalable project • High grade clean product with premium pricing June 2020 • Main competitor product is sourced from Vale – recent issues have left the market short of high grade feed which has exacerbate
Nevada Iron Holdings — Investor Presentation (June 2020) on 6ix