Nordic Mining’s interim report per 30 June 2017
Enclosed please find Nordic Mining’s interim report for the second quarter 2017.
The interim report and company updates will be presented today, Friday 18 August 2017 at 10.00 in the company’s office at Vika Atrium, Munkedamsveien 45 (Entrance A, 5th floor), N-0250 Oslo.
Important events in the second quarter 2017 and year-to-date
- Fully financed for planned development activities in 2017
- Value increasing feasibility studies well under way
The ongoing feasibility studies for the Engebø rutile and garnet project (pre-feasibility study - PFS) and the Keliber lithium project (definitive feasibility study - DFS) are important value increasing activities. Both studies will be completed in the second half of 2017.
Engebø rutile and garnet project
- Dual mineral operation with robust and attractive project economics
Based on the positive test results related to the significant garnet resource at Engebø, the project will be developed as a dual mineral operation with rutile and garnet, providing strategic and commercial strength and flexibility. The excellent results from the garnet test work campaign have allowed the company to reconfigure a phased approach to the development of the project. The initial 1.5 million tonnes per year operation (run of mine – ROM) can be expanded to a 2 million tonnes per annum operation. The dual mineral concept provides risk reduction, attractive economics and valuable future expansion opportunities.
- Significantly lower capital investments expected
Reduced run-of-mine volumes due to higher revenue per extracted tonnage combined with a staged capacity development is expected to significantly reduce the upfront capital expenditure to bring the Engebø project into production.
- Positive market perspectives for rutile and garnet
Product prices for titanium feedstock, including rutile, have increased in recent months. Going forward, the supply/demand balance is expected to tighten further, and the price outlook is positive. The demand for garnet in waterjet cutting and sand blasting is developing positively. Updated market perspectives indicate opportunities to target garnet sales of 300,000 tonnes per annum within 10 years from commencing production.
- Comminution circuit defined
A comprehensive and systematic test work program has been completed, and the chosen crushing and grinding circuit configuration demonstrates a good balance in terms of mineral liberation and operational costs.
- Significant progress in rutile process test work
The major part of the prefeasibility test work program is now completed. During the campaign, a rutile product of approximately 95% TiO2 has been achieved at recoveries of approximately 55%. Work to further improve the recovery is progressing positively. The process solution is based on industry standard process technology, combining known processing units such as magnetic, gravimetric and electrostatic separation.
- Successful garnet processing
Garnet production is split into coarse and fine product streams. Both product streams have been successfully produced exceeding market specifications.
- PFS targeted for completion late in Q3 2017
With the major part of the processing test work completed with good results, the target is to complete the PFS before the end of Q3 2017.
- Attractive logistics
The Engebø deposit is situated next to a deep-water port and close to significant markets for rutile and garnet. The location provides significant logistical advantages.
Keliber lithium project
- Strong lithium market and outlook
The lithium market is developing positively, and product prices have increased. The demand for lithium in various applications is growing fast, in particular related to batteries for electric/hybrid vehicles and energy storage. Contract prices for lithium carbonate have generally doubled in 2017 compared to 2016. Going forward, a tight market balance is expected. Current spot prices in China are reported to be above the indicated contract level of USD 13 – 14,000 per tonne.
- Good progress on the DFS
A comprehensive work program is ongoing related to the DFS which is aiming to provide a solid foundation for the subsequent project financing to implement the lithium project.
- Construction start in 2018
Keliber’s current plan targets completion of the ongoing permitting process and start of construction in 2018.
- Financing of project development work
In the first half of 2017, Keliber executed a private placement and a repair issue with total gross proceeds of EUR 10.0 million. In addition, an incentive share issue for board members was completed with proceeds of EUR 0.1 million. Nordic Mining participated pro-rata to its shareholding in the repair issue. Following from the equity issues, Nordic Mining’s shareholding in Keliber is approximately 22%.
For further information please contact CFO Lars K. Grøndahl, telephone +47 901 60 941.
Oslo, 18 August 2017
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com)
Nordic Mining ASA (“Nordic Mining” or “the Company”) is a resource company with focus on high-end industrial minerals and metals in Norway and internationally. The Company’s project portfolio is of a high international standard and holds a significant economic potential. The Company’s assets are in the Nordic region.
Nordic Mining is undertaking a large-scale project development at Engebø in Sogn and Fjordane where the Group has rights to a substantial eclogite deposit with rutile and garnet. Permits for the project have been granted by the Norwegian government. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Hordaland. Nordic Mining’s associated company Keliber Oy in Finland is in the process of completing its definitive feasibility study and preparing for mining of lithium bearing spodumene and production of lithium carbonate. Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and Finnmark where the Company has discovered a prospective area of sulphide mineralisation. Nordic Mining is also exploring opportunities related to seabed mineral resources.
Nordic Mining is listed on Oslo Axess with ticker symbol “NOM”.