Nico Resources Limited · ASX:NC1
Nico Resources — Investor Presentation (July 2023)
29 slides from Nico Resources's investor presentation, Jul 7, 2023
Slide 1: Investor Presentation: Wingellina Nickel-Cobalt Project
INVESTOR PRESENTATION For personal use only DEVELOPING A WORLD CL ASS NICKEL COBALT PROJECT WINGELLINA NICKEL-COBALT PROJECT J U LY 2 0 2 3 | A S X : N C 1
Slide 2: Disclaimer
DISCLAIMER General Disclaimer: This presentation has been prepared by Nico Resources Limited (“Nico” or the “Company”) for the purpose of providing an overview of the Company. The presentation is based upon information available to the Company at the date of this presentation. The Company makes no r
Slide 3: Introduction
INTRODUCTION • Nico Resources Limited (Nico or the Company) is an ASX listed company which owns 100% of the Wingellina Nickel-Cobalt Project located in Western Australia. • The Project is the largest undeveloped oxide-type nickel-cobalt project in Australia and part of Nico’s Central Musgrave Projec
Slide 4: Company Summary
COMPANY SUMMARY Board and Management Share Price Performance Peter Cook (Non-Executive Chairman) 2 20,000 1.8 18,000 Jonathan Shellabear (Managing Director/CEO) 1.6 16,000 Rod Corps (Non-Executive Director) 1.4 14,000 Share price (A$) Volume (000s) Stewart Findlay (Non-Executive Director) 1.2 12,000
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 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 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 Smectite C
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS • The Wingellina Project is a world class, globally significant project with forecast production of around 40,000 tpa of nickel and 3,000 tpa of cobalt in concentrate following the completion of a PFS in late 2022 which showed a robust economic project and preparatory work has
Slide 8: Project Location
PROJECT LOCATION • The Project is located in Western Australia on an Exploration Lease (EL 69/535) within Aboriginal Reserve 17614. • The Project area is adjacent to the Gunbarrel Highway, southwest of Surveyor Generals Corner, the junction between WA, NT and SA. • Access to site is by road through
Slide 9: Largest Undeveloped Global Nickel Reserves
LARGEST UNDEVELOPED GLOBAL NICKEL RESERVES Contained NiEq Tonnes Contained NiEq Grade 3,500 2 3,000 Contained NiEq Tonnes ‘000’s 1.5 2,500 For personal use only NiEq Grade (%) 2,000 1 1,500 1,000 0.5 500 0 0 Note: data sourced from S&P Global Data base March 2022 ▪ Central Musgraves Project 1) Ni Eq
Slide 10: Wingellina Key Attributes
WINGELLINA KEY ATTRIBUTES Wingellina – a World Class Nickel / Cobalt Project • 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 Aust
Slide 11: 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 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 optimisa
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: 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. • A water treatment plant (likely to be nano filtration) may be incorporated to treat the water to reduce the calcium content (and sig
Slide 16: 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 17: 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 18: 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 19: Appendix: Summary of Key Wingellina PFS Outcomes
APPENDIX 1 SUMMARY OF KEY WINGELLINA PFS OUTCOMES For personal use only 19
Slide 20: Key Consultants and Contributors
KEY CONSULTANTS AND CONTRIBUTORS For personal use only 20
Slide 21: 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 22: 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 23: Appendix: Project Resources and Reserves
APPENDIX 2 PROJECT RESOURCES AND RESERVES For personal use only 23
Slide 24: Central Musgraves Project Resources
CENTRAL MUSGRAVES PROJECT RESOURCES 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 Indicated 130,900
Slide 25: Appendix: Summary Resumes of Board and Key Executives
APPENDIX 3 SUMMARY RESUMES OF BOARD AND KEY EXECUTIVES For personal use only 25
Slide 26: 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 27: Senior Company Management
SENIOR COMPANY MANAGEMENT Amanda Burgess Fergus Kiley Francois Schmid Dr. Lara Jefferson Harish Tantry BEcon, CPA BSc, Geology (Hons) BChE (Hons) BSc (Hons), MBA, PhD, GAICD BTech, MEng, MBA ,GradDip Company Secretary General Manager - Operations Study Manager: Processing Head of ESG Study Manager:
Slide 28: Senior Company Management
SENIOR COMPANY MANAGEMENT Matt Jones Max Maczurad Len Glumac Kim Pervan BSc, Geology (Hons) BSc (Geology) B.Chem Eng BA, FPRIA Head of Geology Senior Project Geologist Senior Process Engineer Stakeholder Manager Mr Jones is a geologist with 20 years’ Mr Maczurad has been involved in the Mr Glumac ha
Slide 29: Notes
For personal use only NOTES 29