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CORPORATE PRESENTATION
Noront Resources
Q4 2014
Noront Resources Q4 2014 1 CAUTIONARY NOTE REGARDING - - PowerPoint PPT Presentation
CORPORATE PRESENTATION Noront Resources Q4 2014 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This presentation includes certain forward - looking information within the meaning of applicable Canadian securities legislation.
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Q4 2014
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This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation. Examples of such forward-looking information includes information regarding the timing, extent and success of exploration, development and mining activities, conclusions of economic evaluations (including those contained in the Technical Report, as defined herein), project financing requirements, project permitting, planned infrastructure for the Ring of Fire region and the estimated and anticipated economic impact of Noronts mineral projects. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; risks related to government and environmental regulation, actual results of current exploration and development activities, changes in project parameters as plans continue to be refined; problems inherent to the marketability of base and precious metals; industry conditions, including fluctuations in the price of base and precious metals, fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects the Company; stock market volatility; competition; risk factors disclosed in the Company’s most recent Management’s Discussion and Analysis and Annual Information Form, available electronically on SEDAR; and such other factors described or referred to elsewhere herein, including unanticipated and/or unusual events. Many such factors are beyond Noront’s ability to control or predict. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate as actual results and future events could differ materially from those reliant on forward-looking information. All of the forward-looking information given in this presentation is qualified by these cautionary statements and readers are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Noront disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law. This forward-looking information should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. Paul Semple, P.Eng., Chief Operating Officer of Noront , Qualified Person as defined by National Instrument 43-101 –Standards of Disclosure for Mineral Projects (“NI-43-101”), has reviewed and approved for the technical information contained in this presentation.
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‒ $200M+ invested in exploration, community engagement, permitting and engineering
– Resource Capital Funds – global mining private equity firm with investments in over 100 mining companies – Baosteel - Fortune 300 company, largest stainless steel producer in China
‒ Purchased Cliff’s camp in 2014
‒ Ranked first in MacCormick’s Index (2012, 2013) ‒ Winner of the 2015 PDAC Environmental and Social Responsibility Award
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‒ Covers 5,000 square km ‒ Emerging new mining district with vast exploration potential ‒ 500km NE of Thunder Bay “Noront is now leading the charge…”
Federal Minister of Natural Resources
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‒ 257 claims covering approximately 57,840 hectares
covering 4,100 hectares in the Eagle’s Nest area
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25+ years of experience in all aspects of exploration, feasibility, construction and production
30 years building and operating mines worldwide
15 years experience in all aspects of project financing and operations
Former Chief, Missanabie Cree First Nation, President PDAC (2012-14)
30 years experience in all aspects of project planning
20 years experience in project operations and sustainability
Former Webequie First Nation Chief
Represents Noront in First Nation community youth programs
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Overview Listing: TSX Symbol: NOT December 31st, 2014: $0.275 52 Week High: $0.70 52 Week Low: $0.24 Market Cap ~ $66.1 M Shares O/S: ~ 240.5 M Shares F/D: ~ 296.1 M Working Capital: ~ $4.2 M Debt: $15.0 USD M Major Shareholders Resource Capital Fund: 21.24% Baosteel: 9.5%
Aerial view of Eagle’s Nest Mine
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0% 50% 100% 150% 200% NOT TSX-V LME Ni Nickel Developers
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September 2012 Metal Prices Dec 2014 Metal Prices
Initial Capital (CDN) $ 609 M Sustaining Capital (CDN) $ 160 M C1 Cash Cost (USD /lb Nickel, net of by-products) $ 1.53 $ 1.22 C1 plus Sustaining (USD /lb Nickel, net of by-products) $ 2.04 $ 1.67 Average annual after-tax cash flow (CDN) $ 180 M $ 158 M NPV (after tax) @ 8% (CDN) $ 543 M $ 381 M IRR 28% 23% Payback 2 years 2.5 years Average Annual Nickel Production 15 kt
Revenue Contribution September 2012 Prices Revenue Contribution December 2014 Metal Prices
Ni 67% Cu 14% Pt 7% Pd 11% Au 1% Ni 61% Cu 13% Pt 7% Pd 18% Au 1%
Price Assumptions
Nickel (USD/lb) 9.43 6.95 Copper (USD/lb) 3.6 2.79 Platinum (USD/oz) 1,600 1,214 Palladium (USD/oz) 599 799 Forex (USD/CAD) 1.01 1.16
Note: The feasibility results shown above are based on September 2012 metal prices are contained in the report titled “NI 43-101 Technical Report Feasibility Study McFaulds Property Eagle’s Nest Project James Bay Lowlands Ontario, Canada dated October 19, 2012 (with an effective date of September 4th, 2012, a copy of which is available under Noront’s company profile on SEDAR at www.sedar.com.
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significant debt capacity
commercial banks and export credit agencies
backstop equity requirement
Pre-Production Capital Mining $ 195 Processing 113 Site-Infrastructure 100 In-directs 158 Contingency 44 Initial Working Capital 30 Interest and Fees 40 Total $ 680
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Noront Eagle’s Nest Sirius Nova Nickel Project
Market Cap $57 M (USD) $859 M (USD) Cash and Cash Equivalents $3.6 M (USD) $200 M (USD) Debt $15 M (USD) $0 EV $68.4 M (USD) $659 M (USD) Location Ontario, Canada Western Australia Mine Type Underground Underground Current Development Stage Completed Feasibility Study Permitting and Financing Underway Completed Feasibility Study Permitting and Financing Underway Mineral Reserves ( under JORC or NI 43-101)
2.37 % 693 M $ 0.17 2.30 % 732 M $ 1.32
Average Annual Nickel Production
(~tonnes per year)
15,500 (21,500 to start) 26,000 Nickel Cash Costs Net of Credits
(USD /lb nickel)
$1.53 $1.50
Source: Raymond James Ltd. Market Information as of Dec 31st 2014. Shares outstanding, debt and cash balances as of Dec 31, 2014, adjusted for subsequent events Ni Eq based on US$7.50/lb Ni, US$3.00/lb Cu, US$1,600/oz Pt, US$800/oz Pd, and US$12.00/lb Co Noront mineral reserves are only on the Main Eagle’s Nest Zone Nickel production and cash costs from both companies’ respective feasibility study press releases.
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Eagle’s Nest Eagle’s Nest Expansion Chromite Expansion 1st Stage Chromite Thunderbird (Fe, V, Ti) New Nickel Discoveries
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Mineral Reserve & Resource 1 Category Tonnes (000) Nickel (%) Copper (%) Platinum (gpt) Palladium (gpt) Proven and Probable 11,131 1.68 0.87 0.89 3.09 Inferred 8,966 1.10 1.14 1.16 3.49
1. Please see the report titled “NI 43-101 Technical Report Feasibility Study McFaulds Lake Property Eagles’s Nest Project James Bay Lowlands Ontario, Canada,” dated October 19th, 2012 (with an effective date of September 4, 2012) (the “Technical Report”) for details regarding the mineral reserve estimate above (section 15.1) and the mineral resource estimate above (14.2). Sections 14.2 and 15.1 of the Technical Report include a description of the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves respectively. A copy of the Technical Report may be accessed under Noront’s company profile on SEDAR at www.sedar.com 2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues.
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‒ Underground, blast-hole open stope mine ‒ First of its kind to have all tailings underground ‒ Will recycle 100% of its process water ‒ Aggregate source to be located underground
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‒ 15.5 kt Ni in concentrate per annum
Grade Recovery Ni 10.2% 83.1% Cu 5.7% 89.7% Pt 5 gpt 74.0% Pd 19 gpt 82.3% Au 1 gpt 76.7%
Note: See section 17 of the Technical Report for further details regarding recovery methods.
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‒ 12 formal open houses in 8 communities
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Community Consultation IBA Negotiations Eagle’s Nest Feasibility Detailed Engineering EIS/EA Permitting Finance Construction Commissioning Production
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Mineral Resource Estimate1 Category Tonnes Cr203 (%) Cr:Fe Measured and Indicated 20.46 M 35.76 1.97 Inferred 23.48 M 33.14 1.97 Total 43.94 M 34.36 1.97
assumptions, parameters and methods used to estimate the mineral resources.
environmental, permitting, legal, title, socio-political, marketing or other relevant issues.
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35% 28% 26% 9% 2% High Carbon Ferrochrome Imports China Asia ex. China Europe North America ROW
84% 8% 5% 1% 2% Chrome Ore and Concentrates Imports
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favourable horizon, 4 km well-tested
Deposits are usually in clusters
already significant discoveries in multiple commodities
second round of exploration rush
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