Fpx Nickel Corp · TSXV:FPX
Fpx Nickel — Investor Presentation (April 2020)
36 slides from Fpx Nickel's investor presentation, April 2020
Slide 1: Nickel for the 21st Century
Nickel for the 21st Century April 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward looking statements” within the meaning of “forward looking information” under applicable Canadian securities laws, concerning the business, operations and financial performance and condition of FPX Nickel Corp. (“FPX Nickel”, “th
Slide 3: Decar Nickel District is one of the world's best development-stage nickel projects
FPX’s Decar Nickel District is one of the world’s best development-stage nickel projects ● Large Resource, Long Life ● Low Projected Costs ● High-Value, Strategic Nickel Product ➢ Projected to be among world’s 10 ➢ Potential for lowest quartile ➢ High-grade nickel product (63-65% largest nickel mine
Slide 4: The Case for Nickel
The Case for Nickel Global Refined Nickel Supply/Demand and Price 250 $20.00 Forecast 200 $18.00 $16.00 150 $14.00 100 000s Tonnes $12.00 US$ /lb 50 $10.00 - $8.00 (50) $6.00 (100) $4.00 (150) $2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Implie
Slide 5: FPX – Leverage to the Nickel Price
FPX – Leverage to the Nickel Price January 2016 to April 2020 – FPX vs. nickel performance JJNTF = Bloomberg Nickel Sub-index Total Return, a single commodity sub-index composed of futures contracts on nickel 5
Slide 6: Decar Nickel District – Ownership History
Decar Nickel District – Ownership History 2010 to 2013 Cliffs November expenditures 2015 2008 to 2009 of US $22 FPX Nickel re- Surface million toward establishes sampling and completion of 100% project initial PEA in 2013, ownership via discovery by establishing payment of US FPX Nickel 60% project
Slide 7: Decar Nickel District – Excellent Location, Central British Columbia
Decar Nickel District Excellent Location – Central British Columbia ● Road accessible ● 5 km to rail line ● 100 km to hydro- power grid Blackwater Au Project: Receipt of federal & provincial environment assessment certificates in 2019 7
Slide 8: Decar Nickel District (245 km2)
Decar Nickel District (245 km2) Van Target • Drill-ready target • Surface samples up to 0.16% DTR Ni 1 B Target • Exploration target ~3 km2 • 1 hole drilled, 1.7 km from Sid • 263m of 0.132% DTR Ni 1 • Open along strike and at depth Sid Target Baptiste Deposit (2013 PEA) • 2 holes drilled, 320m apar
Slide 9: Decar Nickel District – Exploration Upside
Decar Nickel District Exploration Upside Van Target B Target Sid Target Baptiste Deposit 9
Slide 10: Baptiste Deposit
Decar Nickel District – Baptiste Deposit ● Southeast Zone: Higher grade near-surface zone measuring 1,000 metres east-west by up to 600 metres wide ● Deposit remains open to southeast, northwest & northeast and at depth 10
Slide 11: Baptiste Deposit – 2017 Stepout Drilling
Baptiste Deposit – 2017 Stepout Drilling Intersections DTR Nickel Comments Hole From To Length (%) 2010-1 3 321 318 0.145 2010-7 3 71 68 0.13 2011-5 45 303 258 0.145 2011-7 51 304 253 0.163 2012-36 31.1 600.1 563 0.156 Excludes 5.7 m dike 2012-37 64 600 494.9 0.147 Excludes 8.2 m and 33m dike sequen
Slide 12: Baptiste Deposit – 2018 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2018 Mineral Resource Estimate - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the southeast
Slide 13: Baptiste Deposit – Long Section View
Decar Nickel District – Baptiste Deposit Long Section View (image location below) - 2018 mineral resource model incorporates the results of stepout drilling completed in 2017 in the Southeast Zone - Potential to improve Baptiste mine plan by incorporating near-surface tonnage in a starter pit to the
Slide 14: Baptiste Deposit – 2018 Mineral Resource Estimate
Decar Nickel District – Baptiste Deposit 2018 Mineral Resource Estimate Davis Tube Recoverable (“DTR”) * Davis Tube Recoverable Nickel”; 0.06% cut-off Nickel Content * Category Tonnes 2018 estimate dated February 26, 2018 by (% Ni) (Tonnes Ni) (Pounds Ni) GeoSim Services Inc. Mineral resources repor
Slide 15: Decar Nickel District – Van Target
Decar Nickel District – Van Target • Van Target is drill ready and measures ~3 km2 based on 54 bedrock surface samples • ~35% of surface samples in Van Target area grading over 0.12% DTR Ni • Van Target located 6 km north of Baptiste and remains open to the east • Baptiste Target was ~2 km2 prior to
Slide 16: Mineralization – Awaruite
Decar Nickel District – Mineralization Awaruite – Naturally-Occurring Nickel-Iron Alloy ● Targets are large-scale and near-surface ● Disseminated nickel mineralization ● Consistent grade and grain size distribution ● Highly magnetic ● Very dense (8.2 gm/cc) ● No sulphur in mineral or host rock Formu
Slide 17: Conventional Metallurgy
Decar Nickel District – Conventional Metallurgy Simple, two-stage process ➢ Rougher magnetic separation ➢ Conventional flotation High recoveries, high grade products ➢ 83-94% recovery of DTR Ni grade ➢ Ni concentrate grading 63-65% Ni and 25% Fe ➢ By-product iron ore concentrate grading 60- 65% Fe C
Slide 18: An Integrated Nickel Operation for the 21st Century
An Integrated Nickel Operation for the 21st Century Premium Nickel Product Suitable for Stainless Steel or Electric Vehicle Battery Markets Concentrate (65% Ni, 30% Fe, 1% Co) Conventional pelletizing Leaching under moderate conditions Stainless Steel Market – EV Battery Market – Ferronickel Pellet
Slide 19: FeNi Product – Marketing Test
Decar FeNi Product – Marketing Test ● 2013 PEA concentrate specs Metallurgical Testing Post-PEA ➢ Ni grade: 13.5% ➢ 2013 smelting tests confirmed amenability ➢ Fe grade: 45% - 50% to conventional ferronickel processing ➢ Cr grade: ~ 2.0% ▪ Stand-alone: FeNi @ ~50% Ni ▪ Blending feed to Rotary Kiln –
Slide 20: Concentrate – Premium Product
Decar Nickel Concentrate – Premium Product FPX concentrate to yield high payability given similarity to NPI & Ferronickel Global Nickel Products -- Ni Content & Payability (% LME Nickel Price) Sulphide Concentrate (~15% Ni) Mixed Hydroxide Intermediate (~40% Ni, ~2% Co) Decar Concentrate (~65% Ni, ~
Slide 21: Ni Concentrate Feed for EV Battery Market
Decar Ni Concentrate Feed for EV Battery Market ➢ Leach testing confirms the potential for the production of nickel sulphate and cobalt sulphate from Decar awaruite ore ➢ Simple 3-stage process, with potential to be more efficient than the typical 5-stage processes required to convert sulphide and l
Slide 22: Baptiste Deposit – PEA Results
Baptiste Deposit – PEA Results March 2013 PEA: Economic Results * ● Positive result : First pass Highlights of Economic Results proof of concept ➢ Indicates potential Project (100%): economic viability • Pre-Tax NPV (8%) C$ 1,125 million ● Significant potential for • Pre-Tax IRR 15.7% economic upsid
Slide 23: Baptiste Deposit – PEA Parameters
Baptiste Deposit – PEA Parameters ✓ Indicates key target for optimization in PEA revision 1. Assumes 8% mining dilution, with zero grade material 2. Concentrate includes by-product iron (45% - 50%) and chromium (~2.0%) 3. 75% x 3-year trailing average Ni price of US$ 9.39/lb Ni; no credits for by-pr
Slide 24: Baptiste Deposit – Cost Metrics
Baptiste Deposit – Cost Metrics March 2013 PEA: Key Cost Metrics ● Low on-site operating costs Operating Costs ➢ Accuracy of estimates: + 27.5% Mining C$ 2.86/t ➢ Potential position in lower half of Milling C$ 3.25/t cost curve based on G&A C$ 0.80/t ▪ Low strip ratio, simple processing Total C$ 6.9
Slide 25: Low initial capital intensity compared to other recent large nickel mines
Decar Nickel District – Baptiste Deposit Low initial capital intensity compared to other recent large nickel mines $92,000 US$ capital cost per tonne annual Ni production $83,000 $79,000 $73,000 $60,000 $56,000 $53,000 $36,000 Decar (Canada) Barro Alto Ramu Onca Puma Goro Ravensthorpe Koniambo Ambat
Slide 26: Low capital and operating cost compared to other nickel mines
Decar Nickel District – Baptiste Deposit Low capital and operating cost compared to other nickel mines Selected Ni Project Costs, Adjusted to $2017 Basis 16,000 Yabulu (Queensland - Australia) Ramu (MCC - Papua New Guinea) 14,000 US$/tonne Operating Cost 12,000 VNC (Vale - New Caledonia) Tocantins (
Slide 27: Baptiste Deposit – PEA Revision
Baptiste Deposit – PEA Revision FPX Nickel will undertake Baptiste PEA revision targeting the following upside parameters: Parameter 2013 PEA 2020 Upside Higher Grade Mill Feed Mine plan shows potential for 20-25% higher grade resources in early years of mining based on 2017 drilling Optimized Recov
Slide 28: Conceptual Site Layout (based on 2013 PEA)
Decar Nickel District – Baptiste Deposit Conceptual Site Layout (based on 2013 PEA) ● Pit Outlines for Mining Phases 1 and 4 ➢ 2017 drilling in South East Extension area to increase Phase 1 ore tonnage ● Tailings impoundment ➢ Design includes water reclaim and recycle ➢ Potential for CO2 capture and
Slide 29: Decar – A Potential Carbon Neutral Mine
Decar – A Potential Carbon Neutral Mine According to Dr. Ian Power (Professor, Trent University), “Decar offers a tremendous opportunity for developing a carbon-neutral mine” - Decar mine waste (brucite) naturally sequesters CO2 - Generates a possible carbon benefit under the B.C. carbon tax - Bindi
Slide 30: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Near-Surface Consistent Grade Conventional Open Pit • Consistent grade with low Mining variability • Bulk mining operation • Higher-grade near-surface zone • Truck and shovel for starter pit • Low strip ratio 0.17:1 Large Resource with C
Slide 31: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Low Capital Intensity High-Value Nickel Product • Low capital intensity compared • High-grade Ni product (63-65% to recent Ni projects Ni) with low impurities • ~US$36K/t annual Ni output • Suited for direct feed to (2013 PEA) stainless
Slide 32: Baptiste Deposit – Ticking all the boxes
Decar Nickel District – Baptiste Deposit Ticking all the boxes Excellent Jurisdiction Excellent Local Relationships • Signed MOU and strong • British Columbia rated 2nd most relationship with Tl’azt’en First attractive mining jurisdiction in Nation world by Mining Journal (2017) • Local community in
Slide 33: Share Structure & Financial Position
Share Structure & Financial Position Recent Price: C$ 0.16/share FPX (TSX-V): 2016-2020 Price Chart ➢ 52-week Range: C$ 0.11 – C$ 0.24 (C$/share) ➢ Market Capitalization: ~ C$ 26 million ➢ Average daily volume: ~ 40,000 shares Shares Outstanding ➢ Basic: 163.3 million ➢ Fully Diluted: 178.9 million
Slide 34: Management
Management ● Martin Turenne – President, CEO & Director ➢ Executive with over 17 years’ experience in the commodities industry, including over 7 years in the mining industry ➢ Formerly CFO of FPX Nickel from 2012 to 2015 ➢ Formerly with KPMG LLP and Methanex Corporation ➢ Chartered Professional Acco
Slide 35: Board of Directors
Board of Directors ● Peter Bradshaw – Chairman ➢ Exploration geologist with 45 years experience with Barringer Research, Placer Dome and Orvana Minerals ➢ Key Discoveries/projects: Porgera, Kidston, Misima, Omai, Decar ➢ Member, Canadian Mining Hall of Fame ● Peter Marshall ➢ Mining engineer with 30
Slide 36: FPX Nickel Corp. contact details
FPX Nickel Corp. Suite 620 – 1155 West Pender Street Vancouver, BC Canada V6E 2P4 Phone: +1 604-681-8600 www.fpxnickel.com info@fpxnickel.com Twitter: @FPX_Nickel 36