Swedbank Mining Seminar 28 November 2013 - Exploration and production of high-end minerals and metals
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Swedbank Mining Seminar
28 November 2013
Exploration and production of high-end minerals and metals
Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com
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.
2
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
Solid shareholder structure
Largest shareholders * Share overview and share price development **
Top 20 shareholders Shares Percent Share overview
1 NORDNET BANK AB 21 982 672 7,8 % Stock symbol NOM
2 SKAGEN VEKST 21 764 408 7,8 % Stock exchange Oslo Axess
3 MP PENSJON PK 14 319 952 5,1 % Number of issued shares 280 504 805
4 NORDEA BANK PLC FINLAND 9 341 322 3,3 % Owned by Norwegian shareholders 79%
5 FINNISH INDUSTRY INVESTMENT LTD. 8 358 949 3,0 % Owned by international shareholders 21%
Owned by management 2,5%
6 DYBVAD CONSULTING AS 7 906 148 2,8 %
Options 4 850 000
7 VPF NORDEA SMB 6 384 929 2,3 %
- of which owned by management 2 400 000
8 DANSKE BANK A/S 5 606 057 2,0 %
Fully diluted number of shares 285 354 805
9 MAGIL AS 4 700 000 1,7 %
Current share price (NOK) 1,10
10 VERDIPAPIRFONDET DNB 4 263 307 1,5 %
Market capitalisation (NOKm) 309
11 VICAMA AS 4 200 000 1,5 % 12 month trading range (NOK) 0,30 - 1,32
12 SNATI AS 4 001 219 1,4 %
13 NORDNET PENSJONSFORSIKRING 3 719 387 1,3 %
14 OVE KLUNGLAND HOLDING AS NIL 3 414 281 1,2 % Share price development last 12 months
15 CITIBANK NA S/H POHJOLA BANK 3 221 786 1,1 % NOK
16 OLE KRISTIAN GUNDERSEN STOKKEN 2 620 000 0,9 %
17 AUDSTEIN DYBVAD 2 424 412 0,9 %
18 FEMCON AS 2 089 280 0,7 %
19 DIMA AS 2 000 000 0,7 %
20 LITHINON AS 2 000 000 0,7 %
Total top 20 134 318 109 47,9 %
Other 146 186 696 52,1 %
Total 280 504 805 100,0%
Increasing institutional shareholding
Note *: Shareholder overview as of 26 November 2013 Note **: Share price as of 26 November 2013
4
Engebø
Engebø rutile deposit:
One of the world’s largest titanium deposits
JORC resource of 154M tonnes
@ 3.77% TiO 2
Historical estimate of 383M tonnes
@ 3.96% TiO2
Engebø is among the largest rutile deposits in the world
Rutile projects grade and target production
4,50%
Engebø
4,00%
3,50%
Murray Basin
3,00%
Rutile (%)
Cerro Blanco
2,50%
2,00%
Sierra Rutile
1,50%
Coburn Donald
1,00%
Ranobe Planning
Kwale
0,50%
Moma Construction
0,00%
Production
-0,50% Grande Cote
-1,00%
0 50 100 150 200 250
Production (Ktpa)
Size of bubble indicates resource size
6
Source: Company websites
Engebø has the highest rutile grade
Rutile grade for current TiO2 producers and planned projects
Engebø 3.77%
Murray Basin - Iluka 2.32%
Cerro Blanco 2.10%
Akonolinga (Years 1-6) 1.66% Project
Sierra Rutile 1.42% Producer
Akonolinga 1.15%
Kwale 0.65%
Snapper 0.59%
Donald 0.37%
Gingko 0.35%
Cyclone 0.29%
Perth Basin - Iluka 0.27%
Fairbreeze 0.22%
Jacinth - Ambrosia 0.20%
Namakwa 0.20%
Mindarie Zircon 0.16%
Stradbroke 0.13%
High grade ore with low impurities brings processing benefits and premium pricing
Source: Company websites 7
Engebø has low impurities and implies reduction of climate gases
S Africa
Norway
Source: “Production of titanium dioxide” (2007) by Fahli and Martin-Matarranza
8
The rutile process from mine to consumer
Mining Processing End use
Rutile is mined from ore or Rutile is processed through Majority of TiO2 feedstocks are
mineral sands producing a rutile chlorination in reactors which used in production of pigment in
concentrate produces TiO2 pigment paints, plastics and paper
Key rutile producing countries Optional metallurgical process Approximately 5% is used for
are Sierra Leone, South Africa to produce titanium metal and titanium metal
and Australia high performance alloys
Rutile is also used in welding rods
Hard rock Mineral sand
Rutile is more efficient than other feedstocks:
Rutile
Less waste 94-96% TiO2
TiO2 value chain Ilmenite/slag Rutile Leucoxene
~80%
Ilmenite
Less consumption35-65%
processTiO
of~15% chemicals
2
~5%
Less consumption of Processing
Leucoxene > coke
65% TiO2
Paint,
plastics
Less use of ore Aircraft & Welding
and paper Medical
~90% ~5% ~6%
TiO2; small part of total cost for end-use manufacturers with few viable substitutes
9
Rutile and garnet,
environmentally friendly products
with growing markets
10Strong correlation between global GDP growth and TiO2 demand TZMI’s recent global forecast is 3.8% CAGR (compound annual growth rate) Source: IHS Global Insights, TZMI 11
TiO2 demand follows an S-shaped industrialisation/wealth curve China, India and other fast-growing economies are still in an emerging phase Source: Rio Tinto, TZMI 12
Favourable long-term market outlook for titanium feedstock Tight short-term market balance; demand surplus forecasted from 2016 and onwards Source: TZMI (November 2013) 13
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