Nico Resources Limited · ASX:NC1
Nico Resources — Technical Presentation (January 2023)
34 slides from Nico Resources's technical presentation, Jan 17, 2023
Slide 1: Pre-Feasibility Study (PFS) Presentation: Wingellina Nickel-Cobalt Project
For personal use only PRE-FEASIBILITY STUDY (PFS) PRESENTATION DEVELOPING A TIER 1 NICKEL -COBALT PROJECT WINGELLINA NICKEL-COBALT PROJECT JANUARY 2023 | ASX:NC1
Slide 2: Disclaimer
DISCLAIMER For personal use only 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.
Slide 3: Acknowledgement to Country
ACKNOWLEDGEMENT For personal use only TO COUNTRY Nico acknowledges the Traditional Custodians of the lands upon which we operate, the Pitjantjatjara and Ngaanyatjarra peoples. We recognise their unique cultural heritage, beliefs and connection to these lands, waters and communities. We pay our respe
Slide 4: Contents
CONTENTS For personal use only 1. Summary of Key Wingellina PFS Outcomes 05 2. Nickel & Cobalt Market, ESG and NiCo’s LIB Strategy 13 3. Wingellina PFS Overview 19 4. Project Development & Next Steps 28 5. Appendix – Timeline, Directors and Management 30 4
Slide 5: Summary of Key Wingellina PFS Outcomes
For personal use only 1. SUMMARY OF KEY WINGELLINA PFS OUTCOMES
Slide 6: PFS Project Highlights
PFS PROJECT HIGHLIGHTS For personal use only PFS confirms Wingellina to be a globally significant Tier 1 asset, characterised by its long life (initial 42 years based on current reserves), low cost (1st - 2nd quartile on global cost curve) and high operating margins (~50% to 60% EBITDA margin). Form
Slide 7: PFS Economic Highlights
PFS ECONOMIC HIGHLIGHTS For personal use only Robust financial and investment metrics for both Base Case and Spot Case Base Case Spot Assumptions WoodMac / S&P MI (Blend) Nickel price1 US$30,000/t US$21,472/t WoodMac / S&P MI (Blend) Cobalt price1 US$50,995/t US$49,686/t Forward Curve (Bloomberg) Fo
Slide 8: Key Consultants and Contributors
KEY CONSULTANTS AND CONTRIBUTORS For personal use only 8
Slide 9: Cash Flow Profile
CASH FLOW PROFILE For personal use only • Strong post-tax Free Cash Flows generated for 42 years (minimum). • Base Case cumulative Free Cash Flow of A$21.37bn, Spot Case A$33.50bn. • Payback period between 3-4 years post construction period (inclusive of 3-year ramp up). • Strong cash flow supports
Slide 10: Revenue and EBITDA
REVENUE AND EBITDA For personal use only • LOM Revenue of A$61.70bn and A$81.93bn in the Base Case and Spot Case respectively. • Base Case EBITDA of A$29.28bn (over LOM), A$697m (yearly average) with EBITDA margin of 47.45%. • Spot Case EBITDA increases to A$46.60bn (LOM), A$1.11bn (yearly average)
Slide 11: Global Cost Curve Position
GLOBAL COST CURVE POSITION For personal use only • Wingellina is situated in the 1st – 2nd quartile on the global cost curve (C1 costs). • Wingellina is expected to be globally competitive due to its large-scale free dig open pit mining, low strip ratio, high nickel and cobalt concentration ore, low
Slide 12: Largest Undeveloped Global Nickel Reserves
LARGEST UNDEVELOPED GLOBAL NICKEL RESERVES For personal use only Contained NiEq Tonnes Contained NiEq Grade 3,500 2 ▪ Central Musgraves Project ▪ Brazil/China/Cuba/Coral Triangle/Russia (8) ▪ Australian/ Nth American Projects (7) 3,000 Cotained NiEq Tonnes ‘000’s 1.5 2,500 NiEq Grade (%) 2,000 1 1,5
Slide 13: Nickel & Cobalt Market, ESG and Nico's LIB Strategy
For personal use only 2. NICKEL & COBALT MARKET, ESG AND NICO’S LIB STRATEGY
Slide 14: Nickel Market Snapshot
NICKEL MARKET SNAPSHOT For personal use only LME 3M nickel price to average Global PEV sales forecast to grow at Cobalt prices to rise from 2024, $22,5000/t in 2023 28.1% CAGR over 2021-2026 buoyed by expected deficit from 2025 NCA NMC Nickel-cobalt-aluminium, developed by Panasonic Nickel-manganese
Slide 15: Nico's Li-Ion Battery Strategy
NICO’S LI-ION BATTERY STRATEGY For personal use only Independent supply – 100% owned Stable jurisdiction + Supply Chain Production of all NMC metals – reduced risk for diversified supply chain MHP Product: pCAM – potential Leading ASX nickel Low carbon intensity per ton company Long life asset 15
Slide 16: Renewable Power
RENEWABLE POWER For personal use only • Power : 50MW • 95.3% Renewable power from day 1 of steady state operation • Hybrid - Steam | Renewable | Diesel system • World first design integrating Laterite operation and renewable power supply • Solar & wind generation supported by Battery Energy Storage
Slide 17: GHG Emissions Peer Comparison
GHG EMISSIONS PEER COMPARISON For personal use only Climate Change Contribution Analysis Carbon intensity of nickel production Kg CO2/kg nickel metal 0 20 40 60 80 100 120 Total: 17.8 NiCo Renewable PV Case -6.6kg Sulfide Nickel Conventional PAL Total: 24.4 Base Case Ferronickel Nickel Pig Iron (RKE
Slide 18: Australian Laterites: The Perfect Orebody for the Li-Ion Battery
AUSTRALIAN LATERITES For personal use only THE PERFECT OREBODY FOR THE LI -ION BAT TERY DOWNSTREAM DISTRIBUTION MARKET HYDROMETALLURGICAL PROCESSING Low sovereign risk: Stable supply chain, western rule of law and a strong pre-existing regulatory framework; GEOLOGY & PRODUCTION Hydrometallurgical pr
Slide 19: Wingellina PFS Overview
For personal use only 3. WINGELLINA PFS OVERVIEW
Slide 20: Pre-Feasibility Study
PRE-FEASIBILITY STUDY For personal use only • Large scale and long life Production Metrics Unit LOM First 10 years operations Life of Mine / period years 42 years (minimum) 10 years • Production of 40,000t of million tonnes 168.4Mt at 0.93% Ni, 38.6Mt at 1.15% Ni, nickel or equivalent over 40 Ore Re
Slide 21: Wingellina Opex & Capex Summary
WINGELLINA OPEX & CAPEX SUMMARY For personal use only Low operating costs producing strong cash operating margin. Capital cost payback within 3-4 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
Slide 22: Wingellina Opex & Capex Summary
WINGELLINA OPEX & CAPEX SUMMARY For personal use only 4.5% 12.3% 17.8% 0.4% 0.5% 0.2% 28.0% 2.2% 0.1% 8.0% 0.2% US$4.23 10.9% A$2.90bn Operating Costs Total Capital Costs Per Ni Pound 2.5% 11.4% 2.6% 60.1% 5.6% 3.0% 14.3% 4.8% 5.3% 5.2% Mining Process Plant Maintenance Processing Plant Tailings Proc
Slide 23: Mining Summary
MINING SUMMARY For personal use only • Out Cropping orebody • 0.5:1 strip ratio -> 20 years or • 1.1:1 strip ratio -> LOM • Orebody is free digging for LOM • Optimised mine plan resulting in +1% NiEq for the first 20 years • Ore has an S.G of 1.1 Tonnes Pit %Ni %Co NiEq NiT (Kt) CoT (Kt) (MT) • Opti
Slide 24: Processing Summary
PROCESSING SUMMARY For personal use only • Project to utilise simplified and proven HPAL technology to reduce execution risk • Project supported by onsite acid plant for the creation of sulphuric acid with an energy by-product • Project to create MHP – the preferred midstream offtake product for the
Slide 25: Supporting Infrastructure
SUPPORTING INFRASTRUCTURE For personal use only • Water supply – 12.4GL/yr required • Sources: Cobb & Officer Basin + Mann Fault • Logistics – east route via Great Central Road to Impadna rail siding, followed by rail to Darwin or Adelaide • Fly-in-Fly-out operation supported by Wingellina airstrip
Slide 26: Community & Stakeholder Engagement
COMMUNITY & STAKEHOLDER ENGAGEMENT For personal use only Community: • Wingellina is located within the Ngaanyatjarra Lands of Central West Australia • Community & Traditional Owner support and endorsement of the project has been present since 2011 when the “Wingellina Development Agreement” was sign
Slide 27: Upside
UPSIDE For personal use only • Only 25% of the contact zone has been explored to date • 33Mt inferred resource at Claude hills open in all directions • Beadell intercept 21m @ 1.34% NiEqu • Pipeline of early stage exploration targets including • Leverage existing and future Wingellina infrastructure
Slide 28: Project Development & Next Steps
For personal use only 4. PROJECT DEVELOPMENT & NEXT STEPS
Slide 29: Project Delivery Timeline
PROJECT DELIVERY TIMELINE For personal use only Next Steps • Definition and scope of the DFS documents; • Tender DFS; • Selection of EPC contractor for execution of the Project; • Finalise piloting campaign to confirm the robust project flowsheet design; • Design and deliver demonstration plant; • C
Slide 30: Appendix – Timeline, Directors and Management
For personal use only 5. APPENDIX – TIMELINE, DIRECTORS AND MANAGEMENT
Slide 31: Timeline
For personal use only TIMELINE 31
Slide 32: Appendix – Directors and Management
APPENDIX – DIRECTORS AND MANAGEMENT For personal use only Warren Hallam Brett Smith Roderick Corps Fergus Kiley Teck Lim B. App Sci (Metallurgy), MSc Min. Econ B.Chem Eng, MBA, M Res Methodology BSc, Geology (Hons) BCom, CA, MBA Non-Executive Chairman Non-Executive Director Managing Director General
Slide 33: Appendix – Directors and Management
APPENDIX – DIRECTORS AND MANAGEMENT For personal use only Max Maczurad Amanda Burgess Francois Schmid Kim Pervan Matt Jones BSc, Geology Bec, CPA BchE (Hons) BA, FPRIA BSc, Geology (Hons) Senior Project Geologist Company Secretary Study Manager: Processing Stakeholder Manager Head of Geology Max has
Slide 34: Thank you
For personal use only Thank you CONTACT INFORMATION: W: nicoresources.com.au E: [email protected] Rod Corps Fergus Kiley Teck Lim Managing Director General Manager, Operations Chief Financial Officer
Nico Resources — Technical Presentation (January 2023) on 6ix