Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (June 2021)
40 slides from Canada Nickel's investor presentation, Jun 23, 2021
Slide 1: Introduction to Canada Nickel Company
Introduction to Canada Nickel Company Delivering the Next Generation of Nickel TSX-V: CNC June 23, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC”). Forward looking information includes, but is not limited to, the results of the Crawf
Slide 3: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel (CNC) owns 100% of the Crawford Nickel Sulphide project: A new nickel discovery with large scale potential in an established mining camp adjacent to existing infrastructure north of Timmins, Ontario, Canada - One of the top 10 nickel sulphide resources glob
Slide 4: Board and Management Team
Board and Management Team David Smith • Senior VP, Finance and CFO of Agnico Eagle Mines Mark Selby • Previous CEO of Royal Nickel Corporation Director Limited; Chairman, CEO • Corporate development, strategy, business P.Eng., C.Dir. • Chartered Director, Director of Sprott Resource B.Comm. planning
Slide 5: Nickel Demand: A Leader Among Metals
Nickel Demand: A Leader Among Metals Nickel demand a leader among metals over the last decade (5%) driven by continued strong growth in stainless steel (5.4%) with little contribution from electric vehicles to date Base Metals & Other Metals Demand CAGR% (2007 - 2017) 5.4% 5.2% 5.0% 4.2% 3.8% 2.4% 2
Slide 6: Electric Vehicles to Drive Significant Demand Growth – 9.2 Mtpa by 2050
Electric Vehicles to Drive Significant Demand Growth – 9.2 Mtpa by 2050 Glencore presentations highlight massive growth expected in nickel demand. Tesla 3TW of annual batteries needs 1+ Mtpa alone! 6
Slide 7: Nickel Demand: EVs Going to Multiply Demand Requirements
Nickel Demand: EVs Going to Multiply Demand Requirements By 2025, EV + trend demand 4% growth (slower than 5% trend) requires nearly 1 Mtpa of new supply. By 2030, 2.5 million tonnes (or double today’s) is required. Outside of Indonesia, very little visibility on new supply. Incremental Nickel Deman
Slide 8: Tesla: “Please mine more nickel…”
Tesla: “Please mine more nickel…” “…please mine more nickel... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call July 22, 2020 Estimated Carbon Footprint (tonnes
Slide 9: Nickel Supply – Significant Political Risk
Nickel Supply – Significant Political Risk Is there an ONEC in our future ?? Nickel supply facing increasing political risk as Indonesia now dominates nickel supply growth. Just 3 countries are expected to control as much of the nickel supply as OPEC did of global oil supply at its peak in 1973 Nick
Slide 10: Crawford Nickel Sulphide Project
Crawford Nickel Sulphide Project One of largest nickel sulphide Bradburn/Dargavel resources located in a well established mining camp with infrastructure Kingsmill Nesbitt North Crawford- ✓ Major support infrastructure in place Nesbitt-Aubin – Roads, rail, power, water Mahafty-Aubin Crawford Annex C
Slide 11: Crawford PEA Highlights
Crawford PEA Highlights The Crawford PEA demonstrates strong financial returns based on a large resource with significant upside potential ✓ US$1.2 billion after-tax NPV8% Robust Economics ✓ 16% after-tax IRR ✓ 42ktpa nickel at peak production (Phase III), 34ktpa nickel LOM Large Scale, ✓ 1.9 Billio
Slide 12: Crawford Is a Structurally Low Cost Project
Crawford Is a Structurally Low Cost Project Crawford is a structurally low cost operation - Large scale mine / mill operation expanded in 2 stages from 42.5 ktpd to 120 ktpd - Low strip ratio – life of mine 2.1:1 and initial phase 1.3:1 - Use of trolley trucks and electric shovels reduce diesel cons
Slide 13: Crawford A Top 5 Nickel Sulphide Operation Globally
Crawford A Top 5 Nickel Sulphide Operation Globally Based on PEA results, Crawford is expected to be among the top 5 nickel sulphide operations globally and would be largest single nickel sulphide mine outside Russia Largest Nickel Sulfide Operations by 2020 Annual Production 208 (kt of Nickel/Year)
Slide 14: Crawford The Largest Base Metals Mine in Canada
Crawford The Largest Base Metals Mine in Canada Based on PEA results, Crawford is expected to be one of the largest base metal mines in Canada Largest Canadian Base Metals Mines by 2020 Annual NiEq Production(1) (kt of Nickel Equivalent/Year) Nickel Copper Zinc Molybdenum Cobalt Precious Metals PGEs
Slide 15: A 1st Quartile Net Cash Cost Producer
Crawford A 1st Quartile Net Cash Cost Producer Based on PEA results, Crawford is expected to be a low cost producer with 1st quartile Net C1 Cash Cost and All-in Sustaining Costs Crawford's Net C1 Cash Cost vs 2020 Net C1 Cash Cost of Global Nickel Operations $10.00 Spot Nickel Price: $7.75/lb Net C
Slide 16: Crawford A Low Carbon Footprint
Crawford A Low Carbon Footprint Crawford estimate of 2.05 tonnes of CO2 per tonne of Ni-eq production, 93% lower than the industry average of 29 tonnes CO2 and lower than 99.7% of global nickel production Nickel GHG Intensity Curve - CO2e Intensity (tCO2e/t Ni eq.)
Slide 17: Crawford PEA Summary – Operating Costs
Crawford PEA Summary – Operating Costs Three phase production plan peaks at nickel production of 42ktpa with a life-of- mine AISC of US$1.94/lb Unit Phase I Phase II Phase III Life-of-Mine (Years 1 – 3.5) (Years 3.5 – 7) (Years 8 – 18) (Years 1 – 25) Mill Capacity ktpd 42.5 85 120 100 Nickel Product
Slide 18: Current Downstream Path to Stainless Steel
Current Downstream Path to Stainless Steel Future Path Likely to Include Path to EV • Nickel, iron and chromium are three key alloying US Stainless Conversion Margins metals in the production of stainless steel, which (US$/lb Nickel) vs makes Crawford products suitable feeds Nickel Sulphate Premiums
Slide 19: Crawford Producing Two Nickel Concentrates + Iron Concentrate
Crawford Producing Two Nickel Concentrates + Iron Concentrate Crawford will produce two nickel concentrates, including a high grade concentrate expected to be the highest grade nickel concentrate at 35% nickel, and an iron concentrate containing chrome 2020 Concentrate Grade (% Ni and % Co) for Glob
Slide 20: Additional Opportunities
Additional Opportunities 1 Exploration Upside 2 Recovery Optimization 3 NetZero Carbon Footprint Determine the carbon capture Significant additional exploration Optimization of nickel, iron, chrome potential from the carbon potential within the Crawford recovery and concentrate grades sequestration
Slide 21: Crawford Mineral Resource
Crawford Mineral Resource Crawford’s resource ranks as one of the 10 largest nickel sulphide resources globally and now includes chrome values • Higher grade core of M&I Resource of 280 Mt at 0.31% Ni, 0.59% Cr and 6.31% Fe within an overall M&I resource of 653 Mt at 0.26% Ni, 0.60% Cr and 6.58% Fe
Slide 22: Main Zone Mineralization Doubled by 1.8 km
Main Zone Mineralization Doubled by 1.8 km Lower Grade West Zone Identified Delineation of significantly larger Main Zone resource well underway Main Zone Western Extension & West Zone Results (Total Magnetic Intensity) Main Zone drilling extended mineralization to the north and northwest by 1.8 kil
Slide 23: PGM Potential: ~10km Structure Continues to be Intersected
PGM Potential: ~10km Structure Continues to be Intersected Multiple Times PGM structure continues to be intersected in multiple locations. First higher grade PGMs in Main Zone Mineralization PGM Intervals – Main and East Zones (Vertical Gravity Gradient) • PGM zone successfully intersected by an add
Slide 24: North Zone Successfully Delineated
North Zone Successfully Delineated Initial North Zone assay results defined nickel mineralization along strike length of 400 metres up to 200 metres wide and 400 metres deep - open in all directions. New PGM zone discovered at North Zone Main, East and North Zones – Nickel North Zone – Nickel and PG
Slide 25: NetZero Metals: NetZero Carbon Production Potential
NetZero Metals NetZero Carbon Production Potential A number of key technologies are being explored to develop a Zero-Carbon footprint operation Mining • Utilization of electric rope shovels and trolley trucks which utilize electricity, rather than diesel fuel, as a power source wherever possible • D
Slide 26: Ground-breaking MOU Signed with Local First Nations
Ground-breaking MOU Signed with Local First Nations Canada Nickel has entered into Memorandum of Understandings with Taykwa Tagamou Nation and the Matachewan and Mattagami First Nations. “Our community favours a “…happy to be forging a strong and “Mark is genuinely committed to development project l
Slide 27: MOU Signed for Potential Use of Glencore Kidd Concentrator & Met Site
MOU Signed for Potential Use of Glencore Kidd Concentrator & Met Site The opportunity to utilize the excess capacity and existing infrastructure at the Kidd Met Site provides the potential to allow a faster, simpler, smaller scale start-up of Crawford at a vastly lower capital cost while the Company
Slide 28: Crawford is Largest Nickel Sulphide Discovery Since Early 1970s
Crawford is Largest Nickel Sulphide Discovery Since Early 1970s ? Crawford Source: Vale presentation at the Metal Bulletin 3rd International Nickel Conference , London, April 29, 2015 28
Slide 29: Significant Exploration Potential
Significant Exploration Potential >50% Crawford + Multiple New Targets Fully consolidated properties contain multiple nickel-bearing target structures 30km of total strike length and 150 - 600m wide • For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide Historic dril
Slide 30: MacDiarmid – 15% Larger Anomaly Than Crawford Main Zone
MacDiarmid – 15% Larger Anomaly Than Crawford Main Zone The first three holes drilled at MacDiarmid returned significant intersections of mineralized dunite similar to the average mineralization initially discovered at Crawford Plan view of Crawford and MacDiarmid Properties Outline of Gravity Low a
Slide 31: Canada Nickel Well-Positioned Versus its Peers
Canada Nickel Well-Positioned Versus its Peers $2,847 $403 Market Cap (C$ M) $297 $264 $238 $138 $77 $45 $52 $56 $32 GIGA St George Estrella Garibaldi Azure FPX Nickel Centaurus Legend Talon Chalice Metals Mining Resources Resources Minerals Metals Mining Metals Gold Ni Project Turnagain Hawaii Carr
Slide 32: New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations
New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations Multiple Nova Voisey’s Bay Cosmos Mines Bollinger Acquisition C$4.5 B A$3.1 B C$6.8 B A$1.8B Value & (1996) (2007) (2007) (2015) Year Share Price 37x 58x 6.5x 15x Accumulation Reserve (Mt) 0.9 0.09 1.4 0.27 Resource (Mt) 2.
Slide 33: Ownership Structure
Ownership Structure The Company’s cash balance at April 30, 2021 was $7.2 million Pro Forma Capital Structure As at June 16, 2021 Common Shares (M) 85.0 Shares to be issued for property acquisition from Noble (M) 3.5 Warrants (M) 0.2 Options / RSUs (M) 8.2 Fully Diluted Shares (M) 96.9 Management an
Slide 34: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel (CNC) owns 100% of the Crawford Nickel Sulphide project: A new nickel discovery with large scale potential in an established mining camp adjacent to existing infrastructure north of Timmins, Ontario, Canada - One of the top 10 nickel sulphide resources glob
Slide 35: Appendix
CANADA NICKEL COMPANY Appendix www.canadanickel.com
Slide 36: Crawford PEA Operating Cost Summary
Crawford PEA Operating Cost Summary Phase I Phase II Phase III Life-Of-Mine (Years 1 - 3.5) (Years 3.5 - 7) (Years 8 - 18) (Years 1 - 25) Operating Costs US$ C$ US$ C$ US$ C$ US$ C$ ($ / tonne milled) Labour $2.39 $3.19 $1.49 $1.98 $1.20 $1.60 $1.26 $1.68 Consumables $2.49 $3.31 $2.35 $3.14 $2.30 $3
Slide 37: Crawford PEA Sensitivities
Crawford PEA Sensitivities Delta NPV8% Delta IRR Delta Net C1 Cash Cost (US$ millions) (%) (US$ / lb) Sensitivity - + - + - + Nickel Price ±$1/lb ($445) $435 (2.8%) 2.6% n.a. n.a. ($6.75/lb - $8.75/lb) Nickel Price ±10% ($342) $341 (2.1%) 2.0% n.a. n.a. ($6.98/lb - $8.53/lb) Iron Price ±10% ($101) $
Slide 38: Crawford PEA Assumptions
Crawford PEA Assumptions Unit Model Assumptions Parameter Nickel Price S/lb ($/tonne) $7.75 ($17,000 ) Chromium Price $/lb ($/tonne) $1.04 ($2,300 ) Iron Ore Price $ / tonne $290 US$/C$ Exchange Rate USD:CAD 0.75 Oil $/barrel $60 38
Slide 39: Crawford PEA Detailed Summary
Crawford PEA Detailed Summary Phase I Phase II Phase III LOM Ownership: 100% Unit (Years 1 - 3.5) (Years 3.5 - 7) (8 - 18) (Years 1 - 25) Mine Type Type Open Pit Capital Expenditures Initial & Expansion US$ millions $1,188 $543 $194 $1,925 Sustaining & Closure US$ millions / year $238 $254 $512 $1,0
Slide 40: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com Twitter: @CanadaNickel 40
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