Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
WELCOME
Annual and Special Meeting of ShareholdersOctober 11, 2011
The following presenta1on may include certain “forward-‐looking statements” within the meaning of the United States Private Li1ga1on Reform Act of 1995 and applicable Canadian Securi1es Laws. All statements, other than statements of historical fact, included in the presenta1on, including, without limita1on, statements regarding poten1al mineraliza1on and reserves, explora1on results, and future plans and objec1ves of Noront, are forward-‐looking statements. Words such as “expect”, “an1cipate”, “es1mate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are forward-‐looking statements. Forward-‐looking statements are not guarantees of future results and condi1ons but rather reflect our current views with respect to future events and are subject to risks, uncertain1es, assump1ons and other factors. Actual results and future events could differ materially from those an1cipated in such statements. There can be no assurance that such forward-‐looking statements will prove to be accurate. We base our forward-‐looking statements on informa1on currently available to us and we do not assume any obliga1on to update them, except as required by law. An addi1onal Cau1onary Note to Investors – In the event that we use certain terms in this presenta1on, such as “resource”, “measured resource”, “indicated resource” and “inferred resource”. U.S investors are cau1oned that, while such terms are recognized and required by Canadian Securi1es Laws, the United States Securi1es and Exchange Commission does not recognize them. Under U.S. standards, mineraliza1on may not be classified as a “reserve” unless the determina1on has been made that the mineraliza1on could be economically and legally produced or extracted at the 1me the reserve determina1on has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addi1on, “inferred resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Accordingly, informa1on concerning descrip1ons of mineraliza1on in this presenta1on may not be comparable to informa1on made public by companies that are subject to the SEC’s Industry Guide 7. All of the scien1fic and technical informa1on contained herein has been reviewed and/or prepared by Wes Hanson, P.Geo., a “qualified person" within the meaning of Na1onal Instrument 43-‐101 -‐ Standards of Disclosure for Mineral Projects. For details of the company’s procedures and policies for data verifica1on, the reader is referred to the company’s press releases available on the company’s website at www.norontresources.com or on SEDAR at www.sedar.com.
FORWARD LOOKING STATEMENTS
JOSEPH HAMILTON
CHAIRMAN
Annual and Special Meeting of ShareholdersOctober 11, 2011
AGENDA
‣ Introduction
‣ Appointment of Secretary and Scrutineer
‣ Notice of Meeting and Quorum
‣ Financial Statements
‣ Fixing of Number of Directors
‣ Election of Directors
‣ Appointment and Remuneration of Auditors
‣ Approval of Stock Option Plan
‣ Approval to Increase the Number of Directors
‣ Termination of Meeting
‣ President and CEO’s Remarks
WES HANSON
PRESIDENT AND CEO
Annual and Special Meeting of ShareholdersOctober 11, 2011
ACHIEVEMENTS 2011
March Announced 2nd consecutive material resource increase at Eagle’s Nest andSubmitted Eagle’s Nest Project Description to Canadian Environmental Assessment Agency (“CEAA”).
June Closed Strategic Investment with Baosteel Resources and Announced large tonnage , low grade nickel sulphide mineralization at AT12.July Announced metallurgical testing confirming recoveries for Eagle’s Nest.Aug. Announced first mineral reserve in Ring of Fire camp for Eagle’s Nest deposit.Sept. CEAA accepts Project Description for Eagle’s Nest and Announced drill results expanding the limits of Blackbird chromite deposit.Oct. Filed NI 43-101 Pre-Feasibility Study on SEDAR.
“THE RIGHT PROJECT,THE RIGHT PLAN,THE RIGHT TEAM,THE RIGHT TIME!”
Annual and Special Meeting of ShareholdersOctober 11, 2011
“THE RIGHT PROJECT”
Annual and Special Meeting of ShareholdersOctober 11, 2011
OPPORTUNITY“The Ring of FIre is the most significant mineral discovery in Ontario this century!”
‣ Footprint four times larger than the Sudbury Basin;
‣ Less than ten percent of the Ring of Fire has been explored;
‣ Noront has identified two development ready projects:Eagle’s Nest Ni-Cu sulphide with platinum and palladiumBlackbird - high quality chromite
‣ Eagle’s Nest is one of the largest, undeveloped, high-grade NiS resources in the world;
‣ Canada is now one of the top five chromite resource countries in the world;
‣ Ontario is an established leader in the mining industry and
‣ All three of Ontario’s major political parties recognize the potential economic benefits development of this region offers all Ontarians.
The Right Project
EAGLE’S NEST SUMMARY
The Right Project
0
150
300
450
600
750
900
1050
1200
1350
1500
SBW
MUM
FXR
CNI
NI
SRU
NOT
LBE
PAN
POS
WSA
MCR
IGO
0
0.6
1.2
1.8
2.4
3
3.6
4.2
4.8
5.4
6
Global Nickel Sulphide Resources
Ni E
qui
vale
nt R
eso
urce
(M lb
s)
Ni E
qui
vale
nt G
rad
e (%
)Explorers ProducersDevelopers
‣ 650 M lbs Ni‣ 450 M lbs Cu‣ 700,000 ounces Pt‣ 2.2 M ounces Pd
+1.0B lbs NiEq@ 2.25% NiEq
‣ Third largest high-grade NiS resource;‣ Resource larger than Australian producers;‣ Grade 5 to 6x other development projects;‣ Pt + Pd+Cu credits pay for Ni production;‣ Ni production cost = -$0.71/lb
The Right Project
PRE-FEASIBILITY SUMMARY
‣ Inferred resource doubles mine life;‣ deposit open at depth;‣ untested targets within 2,000 metre radius.
Metal PFS Price Current Price Long term consensus
Nickel $8.62/lb $8.44/lb $8.20/lb
Copper $3.08/lb $3.30/lb $2.50/lb
PlaGnum $1,432/oz 1,495/oz $1,660/oz
Palladium $446/oz $588/oz $670/oz
Gold $1,130/oz $1,634/oz $1,155/oz
Pre-Feasibility Study Metal Prices
OpportunitiesPre-Feasibility Study HighlightsNPV6% (aRer tax) $560M Start Date 2016
IRR +20% Mine Life 11 years
IniGal Capital $734 M Payback 3 years
Sustaining Capital $143 M Op Costs -‐$0.71 per lb Ni
Annual cash flow $175 M
Pre-Feasibility Reserves and Resources
The Right Project
‣ Quality equals South Africa, Finland, Zimbabwe and Kazahkstan;‣ Potential to rival South Africa in terms of total resource;‣ Recent drilling indicates resource growth directly proportional to drilling; ‣ Updated resource estimate Q1, 2012;‣ Initial Preliminary Assessment - Q2, 2012.
BLACKBIRD CHROMITE
43-101 Resource (2009) ‣ Recent drilling confirms mineralization open in all directions;
‣ Resource growth directly related to drill coverage;
“THE RIGHT PLAN”
Annual and Special Meeting of ShareholdersOctober 11, 2011
STRATEGY‣ Increased identified resource(s) to a level sufficient to warrant development;‣ Establish a responsible development plan with minimized environmental footprint;‣ Communicate development plan to stakeholders;‣ Fund project construction (joint venture, off-take agreement, debt, equity);‣ Identify opportunities to reduce development timeline:
Stakeholder consultation (First Nations, Environmental NGO’s. Government) andIndustry initiatives.
‣ Prepare First Nations as labour force of future;Training programsSocial programs
‣ Establish a modern, state of the art mine and mill complex;‣ Utilize cash flow to fund:
Chromite / ferrochrome development and future regional exploration.
The Right Plan
EAGLE’S NEST TIMELINE
The Right Plan
Project Milestones:June 2011 Baosteel acquires 9.9% interest;June 2011 Bulk tonnage low grade at AT12;Aug. 2011 Prefeasibility after tax NAV(6%) of $560MSept. 2011 positive chromite results at Blackbird; Sept. 2011 Project Description accepted by CEAA;
Short Term Catalysts:Exploration drill results Q3 2011 to Q2 2012;Feasibility Study Q1, 2012;Project financing Q2, 2012Infrastructure announcement 2012;
The Right Plan
FIRST NATIONS STRATEGY
‣ Focus on youth, education (Bursaries, Mining Matters, School Trips);
‣ Communication (Mikawaa, Community Open Houses, Storyboards);
‣ Community consultation critical;
‣ Consistent message;
‣ Land Use Planning support;
‣ Business opportunities / jobs;
‣ Funding for training programs;
‣ Training for future jobs;
‣ Build trust;
“THE RIGHT TEAM”
Annual and Special Meeting of ShareholdersOctober 11, 2011
THE RIGHT TEAM
The Right Team
Management:
Board of Directors:Ted Basse` P.Eng, Project Manager BHP Billiton, Vale, SNC-‐Lavalin
Darren Blasud President and CEO RX ExploraGon
Joe Hamilton Advisor Primary Capital, Former CEO, African Copper
Wes Hanson President and CEO
Lin Li Vice-‐President Baosteel Resources
Keith McKay CFO Dalradian Resources
Paul Pariso`o Director, RX ExploraGon, Former CEO Arizona Star
Wes Hanson President and CEO 30 yrs experience, Western Goldfields, Kinross, SNC-‐Lavalin
Paul Semple Chief OperaGng Officer 30 yrs experience, Western Goldfields, SNC-‐Lavalin, Kilborn
Greg Rieveley Chief Financial Officer 15 yrs experience, Harry Winston, Dundee Precious Metals
Glen Nolan Vice-‐President Aboriginal Affairs
30 years experience, Independent contractor, PDAC
“THE RIGHT TIME”
Annual and Special Meeting of ShareholdersOctober 11, 2011
The Right Time
!"
#!!"
$!!"
%!!"
&!!"
'!!"
(!!"
)!!"
*!!"
+!!"
#!!!"
#++!" $!!'" $!$'"
!"#$%&'()*+$,(%&-./++/(%0&
12$"&
,-./0"
12/-0"
DEMAND FUNDAMENTALS
Source: United Nations Population Database 2007 Revision
URBANISATION OF CHINA & INDIA
Source - Heinz H. Pariser 2011
Actual Forecast
G.R: 4.4%
G.R: 6.4%
G.R: 5.8%
G.R: 6.8%
STAINLESS PRODUCTION / FERROCHROME DEMAND
25%27% 29%
41% 38%
64%
The Right Time
SUPPLY FUNDAMENTALS
Source: Roskill 2010
Laterite75%
Sulphide25%
Future Ni Supply
Source: World Bureau of Metal Statistics (modified)
Nickel Supply and Demand
} Supply - demand gapassuming noimprovement in lateriteproduction
!"!!
!#$$!!
!%&$$$!!
!%&#$$!!
!'&$$$!!
!'&#$$!!
'$%$! '$%%! '$%'! '$%(! '$%)! '$%#! '$%*! '$%+!
!"##$%&'(&)*+++,&
-$./&
The Right Time
RELATIVE PERFORMANCEApr.1 - Sept. 30, 2011
DevelopersPoseidon Nickel (POS.ASX)Talvivaara Mining (TALV.LSE)Western Areas (WSA.ASX)Independence Group (IGO.ASX)Panoramic Resources (PAN.ASX)
Mustang Minerals (MUM)Starfield Resources (SRU)Fox Resources (FXR.ASX)
Royal Nickel (RNX)Polymet (POM)Duluth Metals (DM)
Liberty Mines (LBE)Victory Nickel (NI)First Nickel (FNI)Mincor Resources (MCR.ASX)Mirabela Nikel (MBR)
Producers
July 1 - Sept. 30, 2011
!"#$##%&
!'#$##%&
!(#$##%&
!)#$##%&
!*#$##%&
!+#$##%&
!,#$##%&
!-#$##%&
#$##%&
./0&
10&
234&
567&
67&
678942&
5:;&
<=>&
7?/&
063&
./=&
.>6&
08;&
6/@&
0A0&
@>2B&
=;A&
;6:&
!"#$##%&
!'#$##%&
!(#$##%&
!)#$##%&
!*#$##%&
#$##%&
*#$##%&
)#$##%&
(#$##%&
+,-&
./0&
10&
./2&
345&
67&
678953&
7:/&
6/;&
<2=&
+67&
08-&
.=6&
064&
0>0&
-6,&
2->&
;=3?&
COMPELLING VALUE PROPOSITION
The Right Time
0.2x
0.4x
0.7x
Source: Available Street ResearchNi Developers - Average of Duluth Metals, Continental Nickel, Polymet and Royal NickelNi Producers - Average of Mirabela, Panoramic, Mincor, Independence Group, Western Areas and Talvivaara
‣ undervalued based on comparison..... ‣ ....and recent transactions.
!"#"$%& !'&()*)+",)#-& !'&.#"/01)#-&
Nickel M&A
Chromite M&A
August 2011$275 M for 60% of Murrin Murrin $0.25 per pound NiEQ
Eagle’s Nest = $260 M
Jan. 2010 - $211 M for FWR
July 2010 - $125 M for SPW
Blackbird = $125 M
At less than $100M Market Cap, Investors get Eagle’s Nest and existing cash for free.
INVESTMENT SUMMARY
‣ Strong core asset (Eagle’s Nest);
‣ Second core asset that is development ready (Blackbird);
‣ Board and Management have requisite experience and knowledge to develop;
‣ Strong strategic partner with vested interest in product(s);
‣ Significantly undervalued;
‣ Options to finance development other than equity offerings;
‣ All levels of government support infrastructure development;
‣ Nickel and chromite future demand forecast is strong;
‣ Future nickel supply uncertain (laterite performance issues);
‣ Ring of Fire is the first new sulphide nickel discovery in decades;
105 Adelaide St. W., Suite 1100Toronto, ON, Canada
M5H 1P9
Investor Relations (416)[email protected]
www.norontresources.com
NOT: TSX-V
THANK YOU