Q Presentation Oslo, 28 February 2014

Transcription

1 Q Presentation Oslo, 28 February 2014 Exploration and production of high-end minerals and metals Nordic Mining ASA N-0250 Oslo Norway Tel Fax Org. no

2 Disclaimer This document has been used by Nordic Mining during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or warranty is given, express or implied, as to the accuracy of the information contained in this document. Some of the statements made in this document contain forward-looking statements. To the extent permitted by law, no representation or warranty is given, and nothing in this document or any other information made available during the oral presentation should be relied upon as a promise or representation as to the future condition of Nordic Mining s business.

3 Value potential in strategic minerals Nickel, Copper, Platinum, Palladium Reinfjord Nordic Ocean Resources AS (85%) Lithium Titanium Nordic Rutile AS Quartz Nordic Quartz AS Keliber Oy (38%) Responding to the increasing mineral deficit in Europe 3

4 1. Introduction 2. Financial status 3. Update on projects 4. Questions

5 1. Introduction 2. Financial status 3. Update on projects 4. Questions

6 Consolidated Income Statements Q Q Acc Acc Unaudited Unaudited Amounts in NOK million Unaudited Restated (1) Audited - - Sales Other income Cost of sales - - (5.7) (1.4) (2.7) Payroll and related costs (9.7) (11.8) (16.4) - - Depreciations - - (2.7) - - Impairment - - (4.0) (3.3) (2.2) Other operating expences (9.0) (13.9) (27.0) (4.6) (4.9) Operating loss (18.7) (24.7) (30.0) (0.6) (0.7) Share of result of an associate (3.0) (0.7) (0.7) (6.5) - Impairment of inv. in associate (6.5) (0.1) Financial items (0.8) (11.7) (5.0) Loss before tax (28.1) (25.2) (31.5) - - Income tax (11.7) (5.0) Loss from cont. operations (28.1) (25.2) (31.5) - (6.4) Loss from discont. operations (4.3) (11.3) (5.0) (11.7) (11.3) Total loss for the period (32.4) (36.5) (36.5) (1) Restated for discontinued presentation of Gudvangen Stein and the implementation of IAS 19R

7 Consolidated Statements of Financial Position Amounts in NOK million Unaudited Restated (1) Investment in an associate Other non-current assets Total non-current assets Cash Other current assets Total current assets Total assets Equity Non-current liabilities Current liabilities Total liabilities Total equity and liabilities (1) Restated for discontinued presentation of Gudvangen Stein and the implementation of IAS 19R

8 Shareholder structure and share price development Largest shareholders* Top 20 shareholders Shares Percent 1 NORDNET BANK AB ,1 % 2 SKAGEN VEKST ,2 % 3 MP PENSJON PK ,1 % 4 NORDEA BANK PLC FINLAND ,3 % 5 FINNISH INDUSTRY INVESTMENT LTD ,0 % 6 DYBVAD CONSULTING AS ,8 % 7 VERDIPAPIRFONDET DNB ,4 % 8 VPF NORDEA SMB ,3 % 9 MAGIL AS ,7 % 10 DANSKE BANK A/S ,6 % 11 NORDNET PENSJONSFORSIKRING ,5 % 12 SNATI AS ,4 % 13 VICAMA AS ,4 % 14 CITIBANK NA S/H POHJOLA BANK ,2 % 15 OVE KLUNGLAND HOLDING NIL ,2 % 16 FRANK ROBERT SUNDE ,2 % 17 OLE KRISTIAN GUNDERSEN STOKKEN ,9 % 18 LITHINON AS ,9 % 19 AUDSTEIN DYBVAD ,8 % 20 FEMCON AS ,7 % Total top ,8 % Other ,2 % Total ,0% Share overview and share price development** Share overview Stock symbol NOM Stock exchange Oslo Axess Number of issued shares Owned by Norwegian shareholders 79% Owned by international shareholders 21% Owned by management 2,5% Options of which owned by management Fully diluted number of shares Current share price (NOK) 1,18 Market capitalisation (NOKm) 331 Trading range year-to-date (NOK) 0,99-1,50 NOK Note (*): Shareholder overview as of 27 February 2014 Note (**): Market cap. and share price as of 27 February

9 1. Introduction 2. Financial status 3. Update on projects - Engebø rutile - Keliber - Alumina - Nordic Ocean Resources 4. Questions

10 Engebø, a unique titanium rutile project (100%) Project highlights JORC resource of 154M 3.8% TiO 2 * Historical estimate of 383M 3.96% TiO 2 50 years expected mine life NPV of USD 8% WACC after tax (company estimate) Expected production of up to 100K tonnes 95% TiO 2 per year Key features Large, high grade resource Low on radioactive elements Main infrastructure in place Deposit located next to deep sea port Strategically located near European market Potential to be Europe s largest producer of natural rutile (TiO 2 ) Note (*): Refer to the November 2008 scoping Study by Wheeler and Dowdell for resource statements 10

11 Rutile and garnet, environmentally friendly products with expanding markets 11

12 Comprehensive set-up of measuring stations Stations for currents Depth (m) Measuring stations measure currents over the entire water depth in the area. 10 units for measuring of sea currents and 11 units for hydrographic data 12

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14 Current measurements within the tailings area Stasjon 3 Close to seafloor 14

15 Current measurements within the tailings area Stasjon 3 Lower depth range of meters 15

16 Current measurements within the tailings area Stasjon 4 Close to seafloor 16

17 Current measurements within the tailings area Stasjon 4 Lower depth range of meters 17

18 Current measurements within the tailings area Stasjon 5 Close to seafloor 18

19 Current measurements within the tailings area Stasjon 5 Lower depth range of meters 19

20 Hydrographic measurements on August 8 and Oktober 1 20

21 Hydrographic measurements on August 8 and Oktober 1 21

22 Hydrographic measurements on August 8 and Oktober 1 22

23 Hydrographic measurements on August 8 and Oktober 1 23

24 Temperature and salinity variations ΔT (C )=Temp.aug-Temp.okt ΔS (PSU)=Salinitet.aug-Salinitet.okt Innspill til Nordic Mining Det Norske Veritas AS. All rights reserved. 24

25 Temperature measurements in period 1: August 7 November 11 St1:215m St2:316m St3: 326m Temperature in the depth is stable throughout the measuring period. St4: 290m St5: 282m Innspill 7. til aug Nordic Mining 11.nov Det Norske Veritas AS. All rights reserved. 25

26 Interpretation of Hydrographic measurements, first period In the outer part of the fjord and in the tailings area the measurements indicates: A significant step layer, with horizontal separation of the waterbodies. Layers seem to be influenced by the outer bottom step and supply of fresh water. At surface, there is a superficial layer of fresh water, then a mixed layer. Below these layers there are heavier waterbodies followed by a heavy and stable bottom layer. The temperature measurements taken 4 times per hour through the period at the stations for current measurements indicate that no exchange of the deeper waters has taken place. Comparison of the vertical profiles fom August and October does not indicate big variations in temperature and salinity. In the more shallow part in Redalsvika, there is not a similar separation of layers. This is caused by the shallow step by the entrance and the local inflow of fresh water. Innspill til Nordic Mining Det Norske Veritas AS. All rights reserved. 26

27 Planned patterns for ROV runs 27

28 Second period of measuring data collected in February Stations for currents Depth (m) Measuring stations measure currents over the entire water depth in the area. Measuring data will be published shortly 28

29 1. Introduction 2. Financial status 3. Update on projects - Engebø rutile - Keliber - Alumina 4. Questions

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32 Steadily increased resource base Updated resource and reserve estimates are expected in Q2 2014

33 1. Introduction 2. Financial status 3. Update on projects - Engebø rutile - Keliber - Alumina - Nordic Ocean Resources 4. Questions

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38 1. Introduction 2. Financial status 3. Update on projects - Engebø rutile - Keliber - Alumina - Nordic Ocean Resources 4. Questions

39 Nordic Ocean Resources AS (NORA) Established by Nordic Mining ASA in 2011 (85% NM, 15% Ocean Miners AS) Strategy: - A resource based focus on opportunities within seabed minerals - Establish exploration rights in the Norwegian EEZ and in international waters - Exploit the experience and competence from the oil- and gas industry in order to develop and qualify sustainable technology for exploration and production of seabed minerals Activities: - NORA has applied for exclusive exploration rights in the Norwegian economic zone - NORA has initiated and established an early phase project in cooperation with Statoil and the Norwegian University of Science and Technology(NTNU), focusing on resource estimates for seabed minerals in Norway. - NORA has initiated seabed minerals as a part of Norway s new mineral strategy - NORA participates in a EU project (ABYSS) together with 15 different knowledge institutions, i.a. NTNU, University of Oslo(UiO) and Statoil (EU 7 th Framework Programme for Research and Technological Development)

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41 About the pre-project Research project established at NTNU in 2012 to evaluate the resource potential in the Norwegian EEZ in cooperation with Nordic Ocean Resources AS, supported by Statoil Carried out in cooperation with VNIIO (Institute for Geology and Mineral Resources of the Oceans, Ministry of Natural Resources of the Russian Federation), and the Norwegian Petroleum Directorate (NPD)

42 Base data Multibeam data have been collected by several sources

43 Geodynamical and morphostructural analysis and interpretation

44 For the very first time: Resource potential in the Norwegian zone published on December 17th 2013 The seafloor within Norway s economic zone contains substantial volumes of metallic sulphides The estimate indicate volumes of copper, zink, silver and gold similar to a total value of NOK 430 billion The estimation further indicates a possible value potential of more than NOK 1,000 billion 44

45 1. Introduction Strategy update 2. Financial status 3. Update on projects 4. Questions

46 Safety Environment - Innovation 46