Accelerating Growth - TSX-V: NKL - Nickel 28
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TSX-V: NKL Investor Presentation | June 2022
Accelerating Growth
Forward-Looking
Statements +
Intro
Qualified Person
Ramu
Upside
This presentation contains certain information which constitutes materialize, or should assumptions underlying the forward-looking anticipated, estimated or intended. There can be no assurance that
‘forward-looking statements’ and ‘forward-looking information’ within statements prove incorrect, actual results, performance or forward-looking statements will materialize or prove to be accurate, as
the meaning of applicable Canadian securities laws. Any statements achievements could vary materially from those expressed or implied actual results and future events could differ materially from those
that are contained in this presentation that are not statements of by the forward-looking statements. anticipated in such statements. The forward-looking statements
Ni Market
historical fact may be deemed to be forward-looking statements. contained in this presentation are expressly qualified by this
Forward looking statements are often identified by terms such as With respect to the forward-looking statements contained in this cautionary statement. Readers should not place undue reliance on
“may”, “should”, “anticipate”, “expect”, “potential”, “believe”, presentation, assumptions have been made regarding, among other forward-looking statements. These statements speak only as of the
“intend” or the negative of these terms and similar expressions. things: future cobalt and nickel market prices; future global economic date of this presentation. Except as may be required by law, the
Forward-looking statements in this news release include, but are not and financial conditions; future commodity prices, demand for cobalt Company expressly disclaims any intention or obligation to revise or
limited to statements with respect to: the business and assets and nickel and the product mix of such demand and levels of activity in update any forward-looking statements or information whether as a
(including their implied value) of Nickel28 and its strategy going the battery metals industry and in such other areas in which the result of new information, future events or otherwise.
forward; statements pertaining to the adoption of electric vehicles and Company may supply cobalt and nickel and the product mix of such
battery storage globally; the timing for trading commencement of supply; the accuracy and veracity of information and projections Disclosures of a scientific or technical nature in this presentation have
Nickel28 common shares on the TSX-V; developments at the Ramu sourced from third parties respecting, among other things, future been reviewed and approved in accordance with National Instrument
mine and the expected impact thereof on future operations, product industry conditions and demand for cobalt and nickel; and, where 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) by
and sales; and statements pertaining to future events or future applicable, each of those assumptions set forth in the footnotes Dr. Qingping Deng, a “qualified person” as defined in NI 43-101. For
performance. Readers are cautioned not to place undue reliance on provided herein in respect of particular forward-looking statements. additional scientific and technical information regarding Nickel28’s
forward-looking statements. Forward-looking statements involve Although the Company has attempted to identify important factors portfolio, readers are encouraged to review additional materials
known and unknown risks and uncertainties, most of which are beyond that could cause actual actions, events or results to differ materially available on the Company’s website and profile on SEDAR at
the Company’s control. Should one or more of the risks or from those described in its forward-looking statements, there may be www.sedar.com
uncertainties underlying these forward-looking statements other factors that cause actions, events or results not to be as
01 TSX-V: NKL
Investment NKL’s Annual Ramu
Cash Flow(1)
Highlights
Intro
~$64M
Ramu
Cash-Flow Generating Low-Cost Nickel
Mine + Only Pure Ni-Play on TSX-V
Upside
Low cost open-pit nickel-cobalt mine located in Papua New Guinea
Mine generating substantial free cash flow
~$41M ~$23M
Ni Market
Operational debt repaid in early 2021, NKL now receiving cash flow distributions
Significant cash flow leverage to Ni and Co prices
Debt Repayment & Cash Distributions
Upside in portfolio of royalties in some of the most prospective Ni-Co projects in the world Interest (1) to NKL(1)
13 Royalties in tier-
one jurisdictions $6M Cash
02 Source: Company Estimates TSX-V: NKL
(1) Assumes US$12.50/lb Nickel price, US$35.00/lb Cobalt price, 33,000 Mt Ni production, 92% Ni Payability, 2,950 Mt Co production, 92% Co Payability, US$300 million of annual operating costs and capex.
NORTH CANOL
PROPERTIES
2% Co NSR
Nickel28’s
Portfolio
Intro
SUNSET DUMONT Ni-Co
2% Co NSR WATERTON
1.75% NSR
Ramu
TRIANGLE RUSTY LAKE &
TURNAGAIN Ni-Co
GIGA METALS
2.0% NSR
PROFESSOR & WALDMAN
2% Co NSR Full Pipeline
of Projects
Upside
RAMU Ni-Co
METALLURGICAL
CORPORATION OF CHINA
8.56%-OWNERSHIP
Ni Market
NYNGAN Co-Sc-Ni
SCANDIUM INT’L
1.75% GRR
FLEMINGTON Ni-Co
AUSTRALIAN MINES
1.5% GRR
(1) Highlands transaction value adjusted for the PanAust buyback and Highlands’ adjusted cash balance
(2) Other royalties acquired for ~C$0.9M in aggregate in 2017
(3) Two separate mineral properties to which a Co NSR applies
03 Royalties Direct Interest Exploration Construction-Ready Producing GRR Gross Revenue Royalty TSX-V: NKL
Ni Market Ramu
04
Upside Intro
Jun. 17, 2020
Jul. 07, 2020
Jul. 24, 2020
Aug. 13, 2020
Total Debt
Sep. 01, 2020
Share Price
NKL.V: $1.38
Basic Shares
Sep. 21, 2020
Oct. 08, 2020
As at June 1, 2022
Enterprise Value
Cash + Equivalent
Basic Market Cap
Oct. 28, 2020
Equity Investments
Nov. 16, 2020
Dec. 03, 2020
Dec. 22, 2020
Jan. 13, 2021
Feb. 01, 2021
Feb. 19, 2021
Mar. 10, 2021
Mar. 29, 2021
Apr. 16, 2021
May 05, 2021
May 25, 2021
Jun 09, 2021
Jun 28, 2021
Jul 16, 2021
Aug 05, 2021
Aug 24, 2021
Sep 13, 2021
Sep 30, 2021
Oct 20, 2021
Nov 08, 2021
Nov 25, 2021
Dec 14, 2021
Jan 05, 2022
Jan 24, 2022
USD$0.1M
USD$6.2M
USD$73.4M
91.1M
CAD$1.38
USD$166.7M
USD$99.6M
Feb 10, 2022
Mar 02, 2022
Mar 21, 2022
Apr 07, 2022
Apr 27, 2022
May 16, 2022
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
$1.38
Board & Management is
Heavily Invested Alongside
NKL.V
Shareholders with 22% of
Structure
Corporate
TSX-V: NKL
Ramu Cash
Flow
Intro
Ramu
Nickel Price: $12.50/lb Cobalt Price: $35.00/lb (1)
Cash Flow (US$ Millions)
Nickel Price: $15.00/lb Cobalt Price: $40.00/lb (1)
Cash Flow (US$ Millions) Low-Cost Ramu
$120.0
$110.0
$120.0
$110.0
US$107m
Mine Leveraged
to Commodity
Upside
$100.0 $100.0
$90.0 $90.0
US$84m
$80.0
$70.0
$80.0
$70.0 Rise in Ni-Co prices will speed up loan
Price
$60.0 $60.0 repayment & significantly increases AT
Ni Market
$50.0 Currently receiving 35% of $50.0 cash flow to NKL
$40.0 attributable cash flow $40.0
$30.0 $30.0
$20.0 $20.0
$10.0 $10.0
$- $-
2022 2023 2024 2025 2022 2023 2024 2025
Debt Repayment Interest AT Cash Flow to Ni28 Debt Repayment Interest AT Cash Flow to Ni28
Source: Company Estimates
05 (1) Assumes 33,000 Mt Ni production, 92% Ni Payability, 2,950 Mt Co production, 92% Co Payability, US$300 million of annual operating costs and capex. TSX-V: NKL
Construction debt can be repaid at any time without penalty.
Debt
Repayment
Intro
Operating + Construction Debt (in US$ Millions) (1)
Plan
Ramu
$140.00
$120.00
Positioned to Organically
Upside
$100.00
$80.00
Repay Construction Debt
$60.00
By End of 2023
Ni Market
$40.00
$20.00
$0.00
Dec-18 Dec-19 Dec-20 Dec-21E Dec-22E Dec-23E
Operating Debt Construction Debt
06 Source: Company Estimates TSX-V: NKL
(1) Assumes US$12.50/lb Nickel price, US$35.00/lb Cobalt price, 33,000 Mt Ni production, 92% Ni Payability, 2,950 Mt Co production, 92% Co Payability, US$300 million of annual operating costs and capex.
Leadership
Team
Intro
Anthony Milewski Chairman of the Board
Distinguished leader in the metals & mining industry, having
Overview
been a director, advisor, founder, or investor in multiple
Ramu
mining companies
Former Chairman & CEO of Cobalt 27 Capital Corp.
Upside
Justin Cochrane President Conor Kearns Chief Financial Officer
20 years of royalty and stream financing, M&A, and corporate CFO of Carbon Streaming Corporation, Former VP of
Ni Market
finance experience Finance of Cobalt 27 Capital Corp.
CEO of Carbon Streaming Corporation, Previously President and Previously served as CFO of EFT Canada, an electronic
COO of Cobalt 27 Capital Corp. and Executive VP and Head of payments business
Corporate Development for Sandstorm Gold Ltd.
Craig Lennon Head of Asia Pacific
Martin Vydra Head of Strategy
20 years of mining exploration and development
Widely recognized as an expert in nickel and cobalt
experience, former Managing Director and CEO of
extraction, processing and refining
Highlands Pacific Limited
Over 31 years of technical and marketing experience with
Previously worked with KPMG in Australia, qualified as a
Sherritt International Corporation, a leader in nickel and
Chartered Accountant
cobalt mining
07 TSX-V: NKL
Board of
Directors
Intro
Ramu
Anthony Milewski Justin Cochrane
Chairman of the Board President & Director
Upside
Philip Maurie
Williams Swan
Ni Market
+15 years of mining and finance Practiced corporate law at Stikeman
experience, including roles in Elliott LLP for +24 years with wide
corporate development, research, ranging experience, including debt
fund management and investment capital markets, securitization,
banking corporate finance, and M&A
Chairman & CEO of Consolidated Specializes in transactions in the
Uranium global mining and metals sector
08 TSX-V: NKL
TSX-V: NKL Nickel28 Capital Corp.
RAMU
World-Class Low-Cost Nickel Mine
Generating Substantial CashflowRamu
Highlights
Intro
Ramu
Ramu High-Margin Ni Operation
Consistently ranks at or near first-quartile of the global nickel cost curve1 $14.00
Expanding margins w/ annual Cash Cost ~$2/lb – one of the best performing Ni
mines in the world today $12.00
Upside
Producing at or above nameplate capacity since 2017 $10.00
Resource covers less than 15% of Ramu’s exploration license
$8.00
NI 43-101 report highlights significant additional resource and reserve potential:
145Mt of 0.84% Ni & 0.09% Co
Ni Market
$6.00
JV interest increases from 8.56% to 11.3% when JV loan is repaid
$4.00
Significant cash flow distributions from Ramu
Operating since 2012 and partnered with MCC for 18+ years $2.00
$0.00
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022
Ramu Cash Costs LME Nickel Price (US$/Lb.)
(2)
(1) As reported by Wood Mackenzie
010 (2) Cash costs are net of by-product credits and unaudited TSX-V: NKLPapua New
Guinea
Intro
SIMBERI
3.9Moz
LIHIR
RAMU NICKEL / COBALT 56.6Moz
Ramu
PROJECT
FRIEDA RIVER
19.5Moz Au
Incredible
13 Mt Cu
OK TEDI
PORGERA
5.4Moz
Resource
13.5Moz
Potential
Upside
MT. KARE
2.1Moz
P’NYANG JUHA
KAINANTU PANGUN
ANGORE 2.8Moz 19.3Moz Au
5.3 Mt Cu
Ni Market
WAFI-GOLPU
KURU 18.6Moz Au
8.6 Mt Cu
GOBE ELK/ANTELOPE HIDDEN VALLEY
3.3Moz
PAPUA LNG
WOODLARK
PNG LNG 1.6Moz
MISIMA
011 Gold Mine Copper-Gold Mine LNG Fields LNG Export Plant
2.8Moz TSX-V: NKLNi-Co
MADANG PROVINCE
Integrated
Intro
Madang
Operation
Basamuk
Ramu
Usino
Plant
Ramu
Nickel-Cobalt
Operation
Upside
Kurumbukari
Mine Site
Ni Market
Exploration Licence
Ramu
All Weather Roads Nickel-Cobalt
Operation
Highway Madang
Basamuk Plant
Pipeline (134 km) Lae
City
Port Morseby
0 100
012 TSX-V: NKL
Kilometres LaeOre Reserves Ramu
Reserves +
As at December 31, 2019
Intro
Nickel Cobalt
(Mt) (%) (%)
Resources
Proven 21 0.91 0.10
Ramu
Probable 33 0.85 0.09
Total Reserves 54 0.88 0.09
Significant Potential
Upside
Mineral Resources
As at December 31, 2019
Nickel Cobalt to Deliver Decades of
(Mt) (%) (%)
Production in Excess
Ni Market
Measured 77 0.86 0.09
Indicated 67 0.83 0.09 of Current Mine Life
Measured & Indicated 145 0.84 0.09
Inferred 21 0.90 0.10
Notes:
1. Prepared in accordance with JORC Code by Sinomine Resource Group Co. Ltd. for MCC
2. The Ni cut off grade is at 0.5% Ni, and the minimum mineable thickness is at 0.5m
3. Any computational inconsistences are due to rounding
4. Ore Resources (dry) represent the -2mm economic portion of resource mineralization in the rocky saprolite
5. The resource estimation is updated up to December 31, 2019
6. Mineral resources are reported inclusive of ore reserves
013 7. Mineral resources that are not mineral reserves do not have demonstrated economic viability TSX-V: NKLRamu
Performance
Intro
Production in Mixed Hydroxide
Ramu
Production Has Exceeded
000s of Tonnes
34.7 35.4
33.7
32.7 32.8 32.5
Design Capacity for the
Last 5 Years
Upside
25.6
22.3
21.0
Ni Market
11.4
5.3
3.3 3.3 2.9 2.9 3.0 3.0
2.1 2.5 2.2
0.5 1.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F
Nickel Cobalt
014 TSX-V: NKLSensitivity
to Ni Price
Intro
Ramu
NPV Sensitivity to Ni Price (US$)
Ni Price $7.50 $10.00 $12.50 $15.00 $17.50 $20.00
Upside
Ramu JV NPV – US$(1) $251M $385M $520M $659M $790M $922M
Ramu NPV / Share – C$(2) $3.50 $5.37 $7.30 $9.27 $11.12 $12.98
Ni Market
CURRENT EV
(excluding JV Debt) = $93M Current Share
Price = $1.38
(1) Company estimates based on full repayment of debt. Also assumes a 30yr mine life, $35.00 cobalt price, 33,000 tonnes of nickel production, 2,950 tonnes of cobalt
015 production, 92% Ni payability, 92% cobalt payability, and $300m of annual operating and capex costs, and uses a 10% discount rate. TSX-V: NKL
(2) Per share figures in C$ using 91.1 million shares outstanding and an CAD/USD exchange rate of 0.7726Metallurgical
Corporation
Intro
65th on the Fortune Global 500 list
US$110B in revenue and US$154B in assets
of China
Ramu
MCC currently developing >2,000 projects worldwide
Specializes in metallurgical engineering, construction & development
MCC has engineered and constructed some of the largest mining projects in Asia-Pacific
Jinchuan Nickel Mine – Largest in Asia
Tremendous
Upside
Dexing Copper Mine – Largest in Asia
Benxi Iron & Steel Mine – One of largest in China
Partner at Ramu
Weinan Molybdenum Project – Largest in China
Mine for 18+ years
Ni Market
Ramu – Only Nickel-Cobalt Operation in PNG
METALLURGICAL ENGINEERING INFRASTRUCTURE MINE CONSTRUCTION & DEVELOPMENT
016 TSX-V: NKLJV Structure +
Optionality
Intro
Pro Forma Ramu Ownership
Effective JV Interest %
Ramu
JV interest increases
Metallurgical Corporation of China Ni28 PNG Interests(1)
to 11.3% once debt is
repaid
Upside
6.4% 8.7% 14.5%
8.6% 11.3%
20.6%
Ni Market
64.9%
85.0% 80.0%
PRE-LOAN REPAYMENT POST-LOAN REPAYMENT OPTION
JV interest increases Acquire additional
to 11.3% at no 9.25% JV interest at
additional cost fair market value
Source: Ramu Ni-Co website, Highlands Pacific 2017 Annual Report
017 (1) PNG post-loan interest assumes repayment of partner loans by MRML and MRRL TSX-V: NKLTSX-V: NKL Nickel28 Capital Corp.
UPSIDE
Royalty Portfolio on Some of the Most
Prospective Ni –Co Reserves & ResourcesPortfolio of Primary
Streams +
Intro
Royalty Name Operator Location Stage Metal(s) Royalty Type
Construction-
Dumont Waterton Global Res. Mgmt Québec Ni-Co 1.75% NSR
ready
Royalties
Ramu
Turnagain Giga Metals British Columbia Exploration Ni-Co 2% NSR
Construction-
Nyngan Scandium Int’l Mining Australia Ni-Co-Sc 1.7% GRR1
ready
Upside
Flemington Australian Mines Australia Exploration Ni-Co-Sc 1.5% GRR1
Optionality on Star Mountains Freeport Resources PNG Exploration Cu-Au 1% NSR
Royalty Portfolio
Sewa Bay Pure Minerals PNG Exploration Ni-Co 5% FOB GRR
Ni Market
Triangle New Found Gold Ontario Exploration Co-Ag 2% Co NSR
Rusty Lake iCobalt Ltd. Ontario Exploration Co-Ag 2% Co NSR
Professor & Waldman 70% Golden Deeps
Ontario Exploration Co-Ag 2% Co NSR
Properties2 30% New Found Gold
North Canol Golden Ridge
Yukon Exploration Ag-Pb-Zn-Co 2% Co NSR
Properties2 Resources
Sunset Private Individuals British Columbia Exploration Cu-Zn-Co 2% Co NSR
(1) Gross Revenue Royalty
019 (2) Two separate mineral properties to which a Co NSR applies TSX-V: NKLDumont
Project +
Intro
Royalty
Ramu
One of the largest undeveloped nickel and cobalt reserves in the world
Fully permitted, construction-ready
Upside
Impacts and Benefits Agreement successfully negotiated with local First Nickel Reserves Benchmarking (MT NI)
Nation 7
Initial mine life of 30 years with upside 6
Ni Market
Reserves1 of ~6.1 Billion lbs Ni and ~243 Million lbs Co 5
LOM annual production of 39kt Ni and 1.2kt Co, ramping up to 50kt Ni 4
and 1.5kt Co in Phase II
3
LOM C1 cash cost in the low 2nd quartile cost curve at $3.22/lb of payable
nickel 2
Royalty Highlights 1
Life-of-Mine 1.75% Net Smelter Returns (NSR) Royalty 0
Taimyr Dumont Halmahera Onca Jinchuan Soroako. BHP Sunrise Voisey Bay Western
Estimated to generate royalty revenue greater than US$10 million, Peninsula
(Norisk)
Nickel (Weda Bay)
Project
Puma (PT Inco) (Clean
TeQ)
Areas
(Total)
once operational
020 Source: Waterton Global Res. Mgmt Sulphide Laterite TSX-V: NKL
Nickel-cobalt deposit, 100% owned by Giga Metals
Among the world's largest undeveloped nickel-cobalt sulphide deposits
Turnagain
Project
Intro
Low technical risk & significant exploration upside
Ideally suited to be refined into Class 1 nickel and cobalt
+Royalty
Targeting to be world’s first carbon neutral nickel mine
Ramu
Engineering studies are underway: Targeting Bankable Feasibility Study by end
of 2023 to produce mixed hydroxide precipitate (MHP)
Upside
Nickel28 Investment
2% Net Smelter Return ("NSR") royalty on all future nickel and cobalt production Nickel Sulphide Operations (kt Ni)
250
Giga retains buyback option to repurchase 0.5% of the NSR for US$20 million
200
Ni Market
150
Mineralization
NI 43-101 Mineral Resource containing: 100
Measured & Indicated: 1,073 million tonnes @ 0.22% Ni & 0.013% Co (5.2
billion lb of Ni & 312 million lb of Co) 50
Inferred: 1,142 million tonnes @ 0.22% Ni & 0.013% Co (5.5 billion pounds of
0
Ni & 327 million pounds of Co) Norisk Jinchuan Vale Voisey's Turnagain* Raglan Terrafame Mount Keith
Less than 25% of the nickel prospective geology has been drilled to date Sudbury Bay
2016 Production Est. Turnagain Production
021 (at full capacity)* TSX-V: NKLTSX-V: NKL Nickel28 Capital Corp.
Ni MARKET
Rising Prices Supported
by Strong Demand for Nickel in EVEV Market
Growth
Intro
Global Plug-in Vehicle Markets 8.3%
Ramu
8,000,000
BEV & PHEV – Light Vehicles
EV Sales Grew by
7,000,000
108% in 2021 Despite
Upside
6,000,000 2.5%
4.2% 6.75M
COVID Disruptions
2.2%
5,000,000
Ni Market
4,000,000
1.3%
3,000,000
0.9%
2,000,000 0.6%
0.4%
0.2%
1,000,000 PEV share
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F
023 Source: EV-volumes.com Data Center TSX-V: NKLNickel’s
Importance
Intro
EV Nickel Demand:
+1.3 Mtpa
by 20301
in the Electric
Ramu
Contained Nickel in EVs (Mt)
Vehicle 59%
EV Nickel Demand as a % of Supply
Upside
% of 2018 Ni Supply
Industry
Ni Market
18%
5%
3%
2018 2020E 2025E 2030E
Source: Glencore estimates, Wood Mackenzie, CRU, BNEF
024 (1) Does not include the nickel required for other parts of the EV supply chain including energy storage systems TSX-V: NKLHigher Ni Price
Needed to
Intro
Incentivize
Ramu
Nickel Laterite Capital Intensity
US$/t Ni | Capex (US$B)
Supply
Upside
160,000 $6.3B
+$6B
140,000
Capital Intensity (US$/t Ni)
$2.8B
120,000
+$6B
Investment of $50 -
Ni Market
100,000
80,000
$1.7B $3.0B $2.5B $1.3B $1.9B
$100 Billion Required to
60,000
40,000
Supply 1 – 1.5 Mtpa By
20,000 2035
--
Goro Ambatovy Taganito Ramu RavensthorpeMurrin Murrin Koniambo Onça Puma Barro Alto
HPAL FeNi
025 Source: Company Reports TSX-V: NKLTSX-V: NKL Nickel28 Capital Corp.
WHY INVEST?Milestones +
Catalysts
Why Invest?
RAMU FREE
GENERATING OPTIONALITY Q2E POSITIVE NEWS INSTITUTE A
SUBSTANTIAL ON FULLY PAID FULL REPAYMENT FLOW FROM DIVIDEND WITH
FREE CASH FOR ROYALTY OF JV OPERATING ROYALTY RAMU CASH
FLOW PORTFOLIO DEBT INVESTMENTS DISTRIBUTIONS
SIGNIFICANT SIGNIFICANT INSTITUTE A RECEIVE FIRST JV INTEREST
EXPLORATION LEVERAGE TO SHARE BUYBACK FULL YEAR OF INCREASES FROM
UPSIDE NICKEL AND WITH RAMU CASH CASH FLOW 8.56% TO 11.3%
COBALT PRICES DISTRIBUTIONS FROM RAMU WHEN JV LOAN IS
REPAID TO MCC
027 TSX-V: NKLTSX-V: NKL 4 King Street West, Suite 401 Toronto, Ontario CA M5H 1B6 info@nickel28.com nickel28.com
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