ABN 44 127 510 589

Level 2, 66 Hunter Street

Sydney NSW 2000 Australia

T: +61 2 9300 3311

F: +61 2 9221 6333
E: info@nickelmines.com.au

9 October 2018

The Manager Companies

ASX Limited
20 Bridge Street
Sydney NSW 2000 (40 pages by email)

LME WEEK INVESTOR PRESENTATION

Nickel Mines is pleased to advise that, Managing Director Justin Werner and Chairman Rob Neale will
be in London for LME Week where they will conduct a series of meetings with both existing and
prospective investors. The Company’s LME Week presentation is attached.

For further information please contact

Justin Werner Cameron Peacock

Managing Director Investor Relations and Business Development
jwerner@nickelmines.com.au cpeacock@nickelmines.com.au
+62 813 8191 2391 +61 439 908 732

www.nickelmines.com.au
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54.0%

13.7%

11.6%

9.9% 10.8%

$0.40

$0.35

$0.30
▪
$0.25
▪
$0.20

$0.15
▪
$0.10
▪
$0.05
▪
$0.00 ▪
20/08/2018 29/08/2018 7/09/2018 16/09/2018 25/09/2018 4/10/2018 3
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~12km
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Underpinned by an
improving outlook for
stainless steel and an
exponentially increasing
battery market for Electric
Vehicles, nickel demand
is expected to grow by 2-
3% pa over the medium
to longer term.
With supply not forecast
to keep pace with
demand, the nickel
market returned to deficit
in 2016 and is 10
06

Underpinned by an
improving outlook for
stainless steel and an
exponentially increasing
battery market for Electric
Vehicles, nickel demand
is expected to grow by 2-
3% pa over the medium
to longer term.
With supply not forecast
to keep pace with
demand, the nickel
market returned to deficit
in 2016 and is 11
06

12
07

▪
.
13
07

14
 08

▪ ▪

15
08

16
08
▪

17
09
Global monthly nickel supply and
200
demand to June 2018 60
Usage and production: 3MMS '000t ni

50
180
40

160 30

Balance: '000t Ni
20
140
10

120 0

-10
100
-20

80 -30
2010 2011 2012 2013 2014 2015 2016 2017 2018

Balance Production Consumption (use)

18
09
World primary nickel production by NPI share in total world nickel production
quarter, kt Ni 35%
450
30%
400

350 25%

300
20%
250

200 15%

150
10%
100
5%
50

0 0%
Q106
Q406
Q307
Q208
Q109
Q409
Q310
Q211
Q112
Q412
Q313
Q214
Q115
Q415
Q316
Q217
Q118

Q106
Q406
Q307
Q208
Q109
Q409
Q310
Q211
Q112
Q412
Q313
Q214
Q115
Q415
Q316
Q217
Q118
Ex-NPI NPI % of total

19
09
Tsingshan nickel production Stainless steel output
350 16% melt basis
12 25%
300 14%

12% 10
250 20%

% of world prodcution

% of world production
10% 8

million tonnes
200
'000t Ni

15%
8%
6
150
6% 10%
4
100
4%
5%
50 2
2%

0 0% 0 0%

2019F
2020F
2018F
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2004

2012
2005
2006
2007
2008
2009
2010
2011

2013
2014
2015
2016
2017

2020F
2018F
2019F

China Indonesia % of world nickel production China Indonesia % of world production

20
09
Indonesian nickel production by
Nickel pig iron production
application
185kt contained Ni
900 45%
2%
800 40% 2%
6%
700 35%

% of wrold production
8%
600 30%
3%
'000t Ni

500 25%
400 20%
300 15%
200 10%
100 5%
79%

0 0%
2011

2016
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

2012
2013
2014
2015

2017
2018

Tsingshan PT Virtue Dragon/Delong

Ore exports Ni matte PT Harita/Xingxing Pipe PT Fajar Bhakti
FeNi NPI PT Indoferro Others
% of world production

21
09
Indonesian nickel exports in value
Indonesian nickel exports in volume terms
terms 8000 40000
800 7000 35000
700

LME price: $/tonne

6000 30000
600

$US million
5000 25000
'000t nickel

500
400 4000 20000
300 3000 15000
200 2000 10000
100 1000 5000
0 0 0
2011

2017
2007

2008

2009

2010

2012

2013

2014

2015

2016

2018F

2009

2013
2007
2008

2010
2011
2012

2014
2015
2016
2017
2018F
Ni in stainless exported
Processed Ni (FeNi/NPI/Matte)
Ni content - ores Ni ores
Ni content processed (matte, FeNi, NPI) Total stainless exports
LME nickel price average
22
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23
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24
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25
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26
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27
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28
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29
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30
14
 80%** 60%*

▪ ▪ ▪
▪ ▪
▪
▪
▪

33
 ▪

120.00

110.00
▪
100.00

90.00
▪
80.00

70.00 ▪

60.00
Jun 18 Jun 18 Jul 18 Jul 18 Aug 18 Aug 18 Aug 18 Sep 18 Sep 18

34
35
▪
▪

▪
▪
▪
▪

▪
▪

36
Underpinned by an
improving outlook for
stainless steel and an
exponentially increasing
battery market for Electric
Vehicles, nickel demand
is expected to grow by 2-
3% pa over the medium
to longer term.
With supply not forecast
to keep pace with
demand, the nickel
market returned to deficit
in 2016 and is 37
38
39