Nico Resources Limited · ASX:NC1
Nico Resources — Shareholder Meeting (November 2023)
28 slides from Nico Resources's shareholder meeting presentation, Nov 22, 2023
Slide 1: AGM Presentation – Wingellina Nickel-Cobalt Project
AGM PRESENTATION For personal use only DEVELOPING A WORLD CL ASS NICKEL COBALT PROJECT WINGELLINA NICKEL-COBALT PROJECT NOVEMBER 22 2023 | ASX:NC1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation (Presentation) is dated 22nd of November 2023 and has been prepared by Nico Resources Limited (ABN 80 649 817 425) (Nico or the Company). This presentation has been prepared in relation for the Company’s Annual General Meeting to be held on 22nd Nove
Slide 3: Company Summary
COMPANY SUMMARY Board and Management Share Price Performance Relative Price Performance Peter Cook (Non-Executive Chairman) 1 2,000 Ardea Resources Centaurus Metals Sunrise Energy Metals Chalice Mining Jonathan Shellabear (Managing Director/CEO) 0.9 1,800 Alliance Nickel Nico Resources Nickel Price
Slide 4: Executive Summary
EXECUTIVE SUMMARY • The world needs significant need new supplies of nickel and cobalt for the energy transition currently underway. According to Benchmark, US$75 billion of additional upstream development is required to satisfy expected growth 2030. • The Wingellina Ni-Co deposit (“Wingellina” or t
Slide 5: Nickel Supply Chain - Sulphides and Laterites
NICKEL SUPPLY CHAIN - SULPHIDES AND LATERITES Sulphide Pyrometallurgical Flow Sheet Sulphide Hydromet Laterite Flow Sheet Legend Sulphide ores typically Flow Sheet occur as economically Sulphide Ore | Ni-Cu-Co-PGE Limonite Ore | Ni-Co-Mn Saprolite Ore | Ni-Co-Mn Ore sources viable in-situ grades POX
Slide 6: Nickel Market Developments
NICKEL MARKET DEVELOPMENTS • The nickel price (in USD terms) has fallen by approximately 46% from the beginning of 2023. Nothwithstanding the encouraging long term growth outlook, the nickel market is expected to be in surplus until 2027 principally as a result of the significant recent and expected
Slide 7: Wingellina Project History
WINGELLINA PROJECT HISTORY • The first deposits of nickel oxides in the Musgrave Block were discovered in the Mt. Davies area by South Australian Government geologists in 1954. International Nickel Company (“Inco”) identified that the regional geology was similar to the Sudbury deposit in Canada and
Slide 8: Wingellina Project Summary
WINGELLINA PROJECT SUMMARY • The Project, part of Nico’s CMP, is located in Western Australia and is owned 100% by the Company’s wholly owned subsidiary Hinckley Range Pty Ltd. • The Project is on an Exploration Lease (EL 69/535) within Aboriginal Reserve 17614 and ownership of the Project is govern
Slide 9: Nickel Laterite Deposit Styles
NICKEL LATERITE DEPOSIT STYLES WA Goldfields Coral Triangle Wingellina Laterite Laterite Laterite Ferricrete 2 to 10 metres Limonite Ni (%) Mg (%) Fe2O3 (%) Ni (%) Mg (%) Fe2O3 (%) Ni (%) Mg (%) Fe2O3 (%) 0.6-1.4 1.0-2.0 35 - 45 1.0-1.7 1.0-4.0 45 0.8-1.5 1.0-2.0 45 High grade Ni-Co Mn nodules Smect
Slide 10: Wingellina Nickel-Cobalt Mineralisation
WINGELLINA NICKEL- COBALT MINERALISATION • The Wingellina nickel-cobalt oxide resource comprises two main zones which contain several semi-linear north-westerly striking zones of limonitic and lesser saprolitic (elevated Mg) styles of mineralisation. • The nickel mineralisation was produced by deep
Slide 11: Investment Highlights
INVESTMENT HIGHLIGHTS • The Project is located in Western Australia, which is a premier global destination for mining investment. • Executed Mining and Infrastructure Agreement (Wingellina Project Agreement); • Granted EPA approval – signed Ministerial Statement No. 1034 (s46 extension pending); • A
Slide 12: Mining Summary
MINING SUMMARY • Out cropping orebody – no pre-strip required. • 0.5:1 strip ratio for first 20 years or 1.1:1 strip ratio over the LOM. • Orebody is free digging for LOM with minimal blasting required (ore has an SG of 1.1). • Mine plan resulting in >1% NiEq for the first 20 years and further optim
Slide 13: Mining Summary
MINING SUMMARY For personal use only An infill drilling programme in 2022 confirmed the continuity within the identified high-grade nickel and cobalt domains and provides confidence of additional resources at depth – a revised resource for Wingellina is currently underway 13
Slide 14: Processing Summary
PROCESSING SUMMARY • Project to utilise simplified and proven HPAL technology (now 5th Generation) to reduce execution risk. • Project supported by onsite acid plant for the creation of sulphuric acid with an energy by-product. • PFS was focussed of the production of MHP – the preferred midstream of
Slide 15: Global Cost Curve Position
GLOBAL COST CURVE POSITION • Wingellina is anticipated to be situated in the upper 1st quartile to lower 2nd quartile on the global cost curve (C1 costs). C1 cash cost of US$1.87/lb (including cobalt credits) or US$4.23/lb (excluding cobalt credits) and AISC of US$2.74/lb (including cobalt credits)
Slide 16: Supporting Infrastructure
SUPPORTING INFRASTRUCTURE • Water supply of 12.4GL/yr (1,200 cubic metres/hour) required sourced from the Cobb Embayment (Canning Basin). The Officer Basin is also another option (albeit further away and of lower quality) as the extension of the Mann Fault into South Australia to provide a source of
Slide 17: Government & Stakeholder Engagement
GOVERNMENT & STAKEHOLDER ENGAGEMENT Traditional Owners • In July 2010, Hinckley Range, a subsidiary of Nico, signed a landmark mining agreement with the Traditional Owners and the granted Native Title holders of the Project. • The agreement was the first to be successfully negotiated on the Ngaanyat
Slide 18: Endowment Potential
ENDOWMENT POTENTIAL • The Musgrave Block covers an area of approximately 120 000 km2, straddling the border between South Australia, the Northern Territory and Western Australia. • The Giles Complex within the Musgrave Block formed by voluminous magmatism which was triggered during the 1090–1040 Ma
Slide 19: Project Delivery Timeline
PROJECT DELIVERY TIMELINE Next Steps • Preparatory work has commenced for commencement of the DFS. • Continue advancing ancillary permits outstanding for the Project development: • Anthropological studies (Cobb Embayment and Mann Fault water) ; • Archaeological studies (Cobb Embayment, Mann Fault, L
Slide 20: Appendix
For personal use only APPENDIX 20
Slide 21: PFS Key Consultants and Contributors
PFS KEY CONSULTANTS AND CONTRIBUTORS For personal use only 21
Slide 22: PFS Economic Highlights
PFS ECONOMIC HIGHLIGHTS Robust financial and investment metrics for both Base Case and Spot Case Base Case Spot (at the time of PFS release) Assumptions WoodMac / S&P MI (Blend) Nickel price1 US$30,000/t US$21,472/t For personal use only WoodMac / S&P MI (Blend) Cobalt price1 US$50,995/t US$49,686/t
Slide 23: Wingellina Opex & Capex Summary
WINGELLINA OPEX & CAPEX SUMMARY Low operating costs producing strong cash operating margin and payback of capital within 4 to 5 years Area Description1 AUD/t USD/t USD/lb Area Description AUD M’s USD1 M’s Mining 632.4 423.7 0.19 Processing Plant $812.98 $544.70 Process Plant 8,369.7 5,607.7 2.54 Tai
Slide 24: Central Musgrave Project Resources and Reserves
CENTRAL MUSGRAVE PROJECT RESOURCES AND RESERVES 0.5% Ni cut-off grade Classification Tonnes Grade Metal (t) Wingellina Measured 37,600,000 0.98 368,000 Indicated 130,900,000 0.91 1,193,000 Nickel Inferred 14,100,000 0.87 122,000 Total 182,600,000 0.92 1,684,000 Measured 37,600,000 0.075 28,000 Indic
Slide 25: Company Directors
COMPANY DIRECTORS Peter Cook Jonathan Shellabear Roderick Corps Stewart Findlay Brett Smith BSc (Geology), MSc (Mineral Economics) BSc (Hons) (Geology), MBA, FAusIMM B.Comm B.Chem Eng, MBA, M Res Methodology Non-Executive Chairman Managing Director and Chief Executive Non-Executive Director Non-Exec
Slide 26: Senior Company Management
SENIOR COMPANY MANAGEMENT Amanda Burgess Fergus Kiley Francois Schmid Dr. Lara Jefferson Len Glumac BEcon, CPA BSc, Geology (Hons) BEng (Hons) (Chemical) BSc (Hons), MBA, PhD, GAICD B. Eng (Chemical) Company Secretary General Manager - Operations Head of Process Engineering Head of ESG Principal Pro
Slide 27: Senior Company Management
SENIOR COMPANY MANAGEMENT Matt Jones Max Maczurad Hermann Scriba Frank Raschella Kim Pervan BSc, Geology (Hons) BSc (Geology) B. Eng (Chemical), M.Eng (Extractive Metall.) B.Eng (Mechanical) BA, FPRIA Head of Geology Senior Project Geologist Principal Process Engineer Principal Mechanical Engineer S
Slide 28: For personal use only
For personal use only 28