A Leading Diversified Mid-Tier Miner

Transcription

1 A Leadig Diversified Mid-Tier Mier Q & TIMOK PEA RESULTS CONFERENCE CALL October 27, 2017 TSX & NYSE MKT NSU 1

2 Forward Lookig Statemets This Presetatio cotais forward-lookig statemets or forward-lookig iformatio withi the meaig of the Uited States Private Securities Litigatio Reform Act of 1995, ad applicable Caadia securities laws. All statemets, other tha statemets of historical facts, are forward lookig statemets icludig statemets with respect to the Compay s cotiuig ad future operatios i Eritrea, Serbia ad elsewhere that the Compay has operatios or busiess iterests. Forward-lookig statemets are frequetly, but ot always, idetified by words such as expects, aticipates, believes, hopes, iteds, estimated, potetial, possible ad similar expressios, or statemets that evets, coditios or results will, may, could or should occur or be achieved. Forward-lookig statemets are statemets cocerig the Compay s curret beliefs, plas ad expectatios about the future, icludig but ot limited to statemets ad iformatio made cocerig: statemets relatig to the busiess, prospects ad future activities of, ad developmet plas related to the Compay, aticipated divideds, goals, strategies, future growth, exploratio activities, the adequacy of fiacial resources ad other evets or coditios that may occur i the future. These forward-lookig statemets are based o a umber of assumptios which, while cosidered reasoable by the Compay, are subject to risks ad ucertaities. I additio to the assumptios cotaied herei, these assumptios iclude the assumptios described i the Compay s Aual Iformatio Form ( AIF ) ad the Compay s maagemet's discussio ad aalysis for the year eded December 31, 2016 ("MD&A"). The Compay cautios readers that forward-lookig statemets ivolve ad are subject to kow ad ukow risks, ucertaities ad other factors which may cause actual results, performace or achievemets to differ materially from those expressed i or implied by such forward-lookig statemets ad forward-lookig statemets are ot guaratees of future results, performace or achievemet. These risks, ucertaities ad factors iclude geeral busiess, ecoomic, competitive, political, regulatory ad social ucertaities; actual results of exploratio activities ad ecoomic evaluatios; fluctuatios i currecy exchage rates; chages i project parameters; chages i costs, icludig labour, ifrastructure, operatig ad productio costs; future prices of copper, gold, zic, silver ad other mierals; resource estimates ad variatios of mieral grade or recovery rates; metallurgical challeges; operatig or techical difficulties i coectio with exploratio; lad acquisitio; miig method, productio profile ad mie pla; other developmet or miig activities, icludig the failure of plat, equipmet or processes to operate as aticipated; delays i exploratio, developmet ad costructio activities; chages i govermet legislatio ad regulatio; the ability to maitai ad reew existig liceses ad permits ad the ability to obtai other required liceces ad permits i a timely maer or at all; the ability to obtai fiacig o acceptable terms ad i a timely maer or at all; cotests over title to properties; employee relatios ad shortages of skilled persoel ad cotractors; the speculative ature of, ad the risks ivolved i, the exploratio, developmet ad miig busiess; ad other factors ad risks discussed i the Compay s AIF ad MD&A. The Compay s forward-lookig statemets are based o the beliefs, expectatios ad opiios of maagemet o the date the statemets are made ad the Compay assumes o obligatio to update such forward-lookig statemets i the future, except as required by law. For the reasos set forth above, ivestors should ot place udue reliace o the Compay s forward-lookig statemets. Further iformatio cocerig risks ad ucertaities associated with these forward-lookig statemets ad our busiess ca be foud i our AIF for the year eded December 31, 2016, which is available o the Compay s website ( filed uder our profile o SEDAR ( ad o EDGAR ( uder cover of Form 40-F. 2

3 Maagemet Speakers Presidet ad Chief Executive Officer Rya MacWilliam Chief Fiacial Officer 3

4 Third Quarter Operatig Results Bisha achieved record zic productio ad zic recoveries Bisha focused o improvig curret metallurgical performace ad icreasig miig rate i comig quarters +34% Q Q Zic productio, Mlbs Recovery, % of zic Copper productio, Mlbs Recovery, % of copper

5 Third Quarter Fiacial Highlights % Chage Q2=>Q3 Q Q Q Rya MacWilliam CFO Payable zic sold, Mlbs +27% C1 cash cost Z -9% $0.84 $0.92 $0.89 Payable copper sold, Mlbs -60% C1 cash cost Cu +7% $1.70 $ Q Q Q Reveue, M $71.0 $66.1 $71.6 Net icome, M $3.1 $(70.2) $2.9 Cash flow from ops, M $10.0 $22.4 $(5.2) Workig capital, M $179 $171 $190 All fiacial amouts i USD 3

6 Timok Upper Zoe Project Oe of the best udeveloped copper projects i the world PEA RESULTS After-tax NPV8% of US$1.5b ad 50% IRR at $3/lb Cu ad $1300/oz Au Expected mie life of 15 years producig 2.1 billio lbs of Cu Frot ed loaded cash flow $630M iitial capex with 1.4 year payback period 6

7 Timok Upper Zoe Resource Over 1 millio toes Cu at 3.7% cotaied i M&I Over 2,2 millio ouces Au at 2.4 g/t cotaied i M&I Toes Grade Cotaied Metal M % Cu g/t Au % As Cu, M toes Au, M ouces Measured % 5.7g/t Idicated % 2.1g/t Total Measured & Idicated % 2.4 g/t Iferred % 0.9g/t Notes: Totals do ot match sum of idividual items due to roudig. Effective date April 24, 2017, Qualified Perso: Marti Pittuck, SRK UK For complete otes ad details see NR dated October 26,

8 Timok UZ mie method PEA based o Sub-Level Cavig SLC miig method TYPICAL SUBLEVEL CAVE Prove low cost, bulk toage miig method Applicable to massive, steeplydippig orebodies ad a wide rage of geotechical coditios. Variable high grades at top of Timok smoothed through cave bledig More cosistet feed to the mill for processig. <$20/t Mied 8

9 Timok UZ Capital Costs Iitial Capital costs $630M icludig cotigecy LoM Sustaiig Capital costs $342M icludig cotigecy Iitial Sustaiig INITIAL CAPITAL BREAKDOWN Mie Developmet $235 $158 Surface Ifrastructure $24 $15 Process Plat $112 $51 TSF / Water $71 $58 Owers Costs $70 - Udergroud Ower 30% Surface Other 37% Capitalized ore developmet $15 - Cotigecy $102 (16% of total) $60 (18% of total) 33% Total Capex $630 $342 9

10 Timok UZ mie pla Mie developmet to proceed i 3 phases Twi 5x5m declies Vetilatio shafts Iitial Capital Phase 1: Declie developmet Phase 2: First 7.5 yrs miig Phase 3: Fial 7.5 yrs miig Sustaiig Capital Crushig Statios Operatig developmet Grey = operatig cost 10

11 Timok UZ Processig Covetioal 3.3Mpta flow sheet: crushig > gridig > flotatio Plat desig flexible for offsite / marketig cost cotrol PEA assumes sigle bulk copper cocetrate Optio two cocetrates: clea: <0.5% ad complex >0.5% arseic 11

12 Timok project permittig Two track permittig process Exploratio declie ad portal Udergroud ad surface developmet IFC aliged lad acquisitio program i place Workig with the Serbia govermet o permittig with the objective to start productio i

13 Nevsu highlights High grade Cu-Au project i Timok UZ PEA $US1.5B NPV ad 50% IRR (after-tax) Follow up PFS i Q1 18 ad FS i H will further defie ad de-risk project Exploratio declie to start Q Exploratio for more UZ deposits uderway Low risk Z-Cu cash flow from Bisha Upside from large resource base Upside from regioal greefield exploratio Strog balace sheet to fud growth ~US$151 millio i cash & o debt Track record of success 3

14 Questios? Presidet ad Chief Executive Officer Rya MacWilliam Chief Fiacial Officer Frazer Bourchier Chief Operatig Officer 3

15 Cotact Heather Taylor INVESTOR RELATIONS TEL: WEB: TSX & NYSE AMERICANNSU 15