Nico Resources Limited · ASX:NC1
Nico Resources — Investor Presentation (September 2023)
39 slides from Nico Resources's investor presentation, Sep 19, 2023
Slide 1: Equity Raising Presentation
EQUITY RAISING PRESENTATION For personal use only DEVELOPING A WORLD CL ASS NICKEL COBALT PROJECT WINGELLINA NICKEL-COBALT PROJECT SEPTEMBER 19 2023 | ASX:NC1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Not for release to US wire services or distribution in the United States of America or to US persons This investor presentation (Presentation) is dated 18th of September 2023 and has been prepared by Nico Resources Limited (ABN 80 649 817 425) (Nico or the Company). T
Slide 3: Executive Summary
EXECUTIVE SUMMARY • The world needs significant need new supplies of nickel and cobalt (US$75 billion of additional upstream development required to satisfy expected growth 2030 (according to Benchmark). The nickel market is expected to be in deficit from 2027 onwards notwithstanding the significant
Slide 4: Company Summary
COMPANY SUMMARY Board and Management Share Price Performance Peter Cook (Non-Executive Chairman) 2 20,000 Jonathan Shellabear (Managing Director/CEO) 1.8 18,000 1.6 16,000 Rod Corps (Non-Executive Director) 1.4 14,000 Stewart Findlay (Non-Executive Director) Share Price (A$) 1.2 12,000 Volume (000s)
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • The Wingellina Project (“Wingellina” or the “Project”) is a world class, globally significant project with forecast production of around 40,000 tpa of contained nickel and 3,000 tpa contained of cobalt as outlined in the PFS (refer to ASX announcement released 22 December 202
Slide 6: Equity Raising Overview
EQUITY RAISING OVERVIEW Offer Size and Structure • Fully underwritten pro-rata non-renounceable entitlement offer to Eligible Shareholders of 1 New Share for every 5 Shares held at 5PM (Perth) on Thursday 22nd of September 2023 to raise approximately $7.3 million (before costs) (Entitlement Offer) •
Slide 7: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE Event Date / Time (WST) Announcement of Entitlement Offer Tuesday, 19 September 2023 Lodge Appendix 3B and s708AA cleansing notice with ASX Tuesday, 19 September 2023 Ex entitlement date Thursday, 21 September 2023 Record Date for the Entitlement Offer Friday, 22
Slide 8: Wingellina Project Summary
WINGELLINA PROJECT SUMMARY • The Project, part of Nico’s Central Musgrave Project (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 ownersh
Slide 9: 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 10: Wingellina Key Attributes
WINGELLINA KEY ATTRIBUTES • Wingellina is one of the largest undeveloped nickel projects in the world hosting a probable reserve containing 1.56Mt of contained nickel and 123kt of contained cobalt. • Located in a Tier 1 jurisdiction (in Western Australia near the triple junction between WA, SA & NT)
Slide 11: 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 12: 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 13: 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 14: 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 14
Slide 15: 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 16: 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 17: Supporting Infrastructure
SUPPORTING INFRASTRUCTURE • Water supply of 12.4GL/yr (1,200 cubic metres/hour) required sourced from either Cobb Embayment (Canning Basin) and/or the Officer Basin. Water quality from the Cobb Embayment is very good at around 2,000 tds. • A water treatment plant (likely to be nano filtration) may b
Slide 18: 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 19: 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 20: 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 21: Appendix: Key Risks
APPENDIX 1 KEY RISKS For personal use only 21
Slide 22: Key Risks
KEY RISKS The following summary, which is not exhaustive, represents some of the key and principal risk factors which potential investors need to be aware of in evaluating the Company's business and risks of investing in the Company. Potential investors should carefully consider the following factor
Slide 23: Key Risks
KEY RISKS Native Title Risks (continued) The grant of any future tenure to the Company over areas that are covered by registered claims or determinations will likely require engagement with the relevant claimants or native title holders (as relevant) in accordance with the Native Title Act. In addit
Slide 24: Key Risks
KEY RISKS Resource estimation risks The Company has made estimates of its resources and reserves based on relevant reporting codes, were required, and judgements based on knowledge, skills and industry experience. However, resource and reserve estimates are inherently prone to variability and there
Slide 25: Key Risks
KEY RISKS Tenure and access risk The Company's rights in the Tenements may be obtained by grant by regulatory authorities or be subject to contracts with third parties. Any third party may terminate or rescind the relevant agreement whether lawfully or not and, accordingly, the Company may lose its
Slide 26: Key Risks
KEY RISKS Litigation risks The Company is exposed to possible litigation risks including native title claims, tenure disputes, environmental claims, occupational health and safety claims and employee claims. Further, the Company may be involved in disputes with other parties in the future which may
Slide 27: Appendix: Nickel Supply Chain
APPENDIX 2 NICKEL SUPPLY CHAIN For personal use only 27
Slide 28: 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 29: Appendix: Summary of Key Wingellina PFS Outcomes
APPENDIX 3 SUMMARY OF KEY WINGELLINA PFS OUTCOMES For personal use only 29
Slide 30: Key Consultants and Contributors
KEY CONSULTANTS AND CONTRIBUTORS For personal use only 30
Slide 31: 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 32: 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 33: Appendix: Project Resources and Reserves
APPENDIX 4 PROJECT RESOURCES AND RESERVES For personal use only 33
Slide 34: 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 35: Appendix: Summary Resumes of Board and Key Executives
APPENDIX 5 SUMMARY RESUMES OF BOARD AND KEY EXECUTIVES For personal use only 35
Slide 36: 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 37: 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 38: Senior Company Management
SENIOR COMPANY MANAGEMENT Matt Jones Max Maczurad Hermann Scriba Frank Raschella Kim Pervan BSc, Geology (Hons) BSc (Geology) B. Eng (Chemical) B.Eng (Mechanical) BA, FPRIA Head of Geology Senior Project Geologist Principal Process Engineer Principal Mechanical Engineer Stakeholder Manager Mr Jones
Slide 39: Notes
For personal use only NOTES 39
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