Post on 15-Jan-2017
C O R P O R A T E P R E S E N T A T I O N | MARCH 2 0 1 7
Copper and Zinc Production,Disciplined Growth.
TSX & NYSE MKTNSU
A Leading Diversified Mid-tier Base Metals Company
Forward looking statementsThis Presentation contains forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation
concerning anticipated developments on the Company's continuing and future operations in
Eritrea, the adequacy of the Company’s financial resources and financial projections. Forward-
looking statements include, but are not limited to, statements concerning or the assumptions
related to estimates of capital and operating costs, the timing, nature and extent of future
copper, zinc and gold production, expanding exploration licenses, the estimation of mineral
reserves and resources, methodologies and models used to prepare resource and reserve
estimates, the realization of mineral reserve estimates, the conversion of mineral properties to
reserves and resources, the potential to expand resources, reserves and mine life, future
exploration budgets, plans, targets and work programs, capital expenditures and objectives,
anticipated timing of grant of permits, mining and development plans and activities,
construction and production targets and timetables, grades, processing rates, life of mine, net
cash flows, metal prices, exchange rates, reclamation costs, results of drill programs, dividend
plans and policy, litigation matters, integration or expansion of operations, requirements for
additional capital, government regulation of mining operations, environmental risks, political
risks and uncertainties, unanticipated reclamation expenses, and other events or conditions that
may occur in the future. Forward-looking statements are frequently, but not always, identified
by words such as "expects," "anticipates," "believes," "intends," "estimated," "potential," "possible",
"budget" and similar expressions, or statements that events, conditions or results "will," "may,"
"could" or "should" occur or be achieved. Information concerning the interpretation of drill results
and mineral resource and mineral reserve estimates also may be deemed to be forward-
looking statements, as such information constitutes a prediction of what mineralization might be
found to be present if and when a project is actually developed, and in the case of mineral
reserves, such statements reflect the conclusion based on certain assumptions that the mineral
deposit can be economically exploited.
Forward-looking statements are statements about the future and are inherently uncertain, and
actual achievements of the Company or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a variety of risks, uncertainties
and other factors. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or
intended. The Company’s forward-looking statements are based on the beliefs, expectations
and opinions of management on the date the statements are made and the Company assumes
no obligation to update such forward-looking statements in the future, except as required by
law. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. For
the reasons set forth above, investors should not place undue reliance on forward-looking
statements.
Please see the Company’s Management Information Circular dated May 18, 2016, the
Company’s Annual Information Form for the year ended December 31, 2016 dated February 23,
2016 and the latest Management Discussion and Analysis of Nevsun for a more complete
discussion of the risk factors associated with our business which have been filed with Canadian
securities regulators and are available at www.sedar.com, which have also been filed or
submitted to the U.S. Securities and Exchange Commission on Form 40-F or Form 6-K and are
available at www.sec.gov .
Except as otherwise noted herein, Peter Manojlovic, Vice President of Exploration and Frazer
Bourchier Chief Operating Officer are Qualified Persons as defined by National Instrument 43-
101 and have approved the scientific and technical information concerning Nevsun Resources
Ltd. discussed herein.
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Copper & Zinc Production, Disciplined Growth.
Bisha copper-zinc mine cashflow
Positive cash flow from 8+ year open pit mine life
High quality production growth in Timok
Upper Zone high-grade copper-gold project
Historic mining region with excellent infrastructure
Exploration growth in two mining camps
Strong balance sheet to fund growth
~US$200 million cash & no debt
Management track record of success
US$0.04 annualized dividend paid quarterly
Dividend reinvestment option (DRIP)
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A leading diversified mid-tier base metals company
DRIP = dividend reinvestment program (investors can opt for NSU shares instead of cash to increase growth exposure)
Leading production growthTimok will add ~300% growth in copper production in 4-5 years
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135 145117
HudBay Lundin Oz Minerals Nevsun Capstone Taseko Sandfire Imperial Metals
2021 Main Growth Project 2016 Guidance
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SantoDomingoTimok
Carrapateena
Rosemont
57%Black Butte
Florence
(1) As per analyst estimates and / or each respective company’s mid-point guidance and technical reports (as at September 2016).
C O P P E R P R O D U C T I O N ( 1 ) ( M L B S )608
380 375
330
210180
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One of the largest drilling programs in the sector*
Over 20 drills targeting 130,000 meters in 2017
Drilling in two districts (Timok& Bisha)
Exploration and development
* Company data for mid-tier base metals companies.
Capital project and operating delivery
Built and expanded Bisha on-time and under budget over 3 phases
Deployed over $420 million in capital
Operating Bisha for 6 years, delivering strong earnings and cash flow
Generated about $1 billion in cash from operations in 6 years
Financial delivery
Returned over $170 million to shareholders via dividends and share buy-backs
Growth delivery
Continuous resource growth at Bisha
Current resources (effective Dec 31, 2015) detailed in news release dated Feb 17, 2016. Qualified person is Phil Jankowski BMSC.Current reserves (effective Dec 31, 2015) detailed in 2015 AIF. Qualified person is Anoush Ebrahimi, Ph.D. at SRK Consulting
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Feasibility Jan 2011 Jul 2012 Dec 2013 Dec 2014 Dec 2015
Inferred M&I ResourcesMt
B I S H A D I S T R I C T R E S O U R C E S +115%
Nevsun track record of successManaging and delivering results
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2017 Outlook & Guidance
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Bisha
200–230 mm lbs Zinc at C1 cost of $0.70 to $0.90*
10–20 mm lbs Copper at C1 cost of $0.90 to $1.10*
Stockpile sales 10k oz gold equivalent
$16 million in sustaining capital (not including exploration)
Timok UZ
Deliver UZ pre-feasibility study September
Obtain necessary permits to begin UZ decline Q4
Rapidly advance to production by mid-2021
$45 million UZ budget (including UZ drilling)
Exploration
Complete 130,000 meters in exploration drilling
40,000 meters in Eritrea on Bisha regional exploration
90,000 meters in Serbia primarily on UZ and LZ
Indicative Bisha underground mine study in Q2
$27 million budget (not including UZ)
UZ = Timok Upper Zone: high grade Cu-Au resource and PEA LZ = Timok Lower Zone: Au-Au porphyry mineralization; pre-resource
C1 cash costs are on a co-product basis where site costs are allocated. The allocation method is the ratio of payable production volume, multiplied by
budgeted metals prices (revenue). The zinc co-product costs will remain high, due to a greater share of the cost allocation, until more saleable copper
concentrate is consistently produced.
Nevsun trading at a discount to peersTimok PFS, Bisha commissioning & new CEO value drivers in 2017
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KAZMinerals
OZ Minerals Taseko Capstone Sandfire Trevali Lundin Hudbay FirstQuantum
ImperialMetals
Nevsun CopperMountain
Median: 1.0x
P/
NP
V (x
) Opportunity
Source: Company filings, Fact Set, BMO analyst research, February 2017
Timok ProjectHigh grade copper-gold project
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Strong federal government
support Committed to increasing GDP
contribution from mining from 2% to 5% by 2020
No restrictions on foreign ownership 15% corporate tax rate; 5% NSR royalty on Cu and Au metals
New Dec 2015 mining code
Experienced mining jurisdiction
Inexpensive energy costs
Other miners in Serbia include Rio Tinto, Freeport-McMoRan, First Quantum, Dundee Precious Metals and Mundoro
Government system Parliamentary democracy
Population / GDP
7.1 million (est) / USD 43 billion
Capital Belgrade
Major ethnic groups 83% Serbian, 4% Hungarian, 2% Roma
Serbia: great place to build a mineSupportive government, favorable fiscal and regulatory environment
Serbia: great place to build a mineClose proximity to existing infrastructure, skilled labour and suppliers
TimokProject
Power Roads Rail Water Bor/Aurubis
smelters Ports
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Skilled local workforce
5km from Bor mining and smelting complex; 40,000 person mining town
European quality infrastructure
High grade Timok Upper Zone projectRapidly developed with production by mid-2021
Upper Zone Resource and PEA Semi Massive Sulphide (“SMS”) high-sulphidation
epithermal pyrite and copper sulphide
35 MT @ 2.9%Cu & 1.7g/t Au INFERRED RESOURCE
1.7 MT @ 13.5% Cu & 10.4 g/t Au INDICATED RESOURCE
Subject of the April 2016 Reservoir Minerals PEA5
$US1.5B NPV at $3.00 per lb Cu/$1200 per oz Au
12 year mine life with sub-level open stoping and conventional copper flotation processing
Nevsunowns 100% of Upper Zone
1. The cut-off grade used for the estimate is 0.75% Cu.
2. All figures are rounded to reflect the relative accuracy of the estimate.
3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
4. Mineral Resource is given on 100% basis.
5. The Mineral Resources and the associated PEA were reviewed and approved by Martin Pittuck of SRK Consulting (UK) Limited, a Qualified Person under National Instrument 43-101, details of which
can be found on SEDAR and the Nevsun website. The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no
certainty that the PEA will be realized.
For details see Reservoir Minerals press release April 19, 2016 and associated Technical Report on Nevsun’s website.
U P P E R Z O N E B L O C K M O D E L C O P P E R G R A D E D I S T R I B U T I O N
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High grade copper projectIn a jurisdiction supportive of development
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Grade is King!
*Copper Project Mineral Resource GradesSource: Dundee Capital Markets (now Eight Capital) – February 16, 2017
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Timok project: next stepsPre-feasibility study Upper Zone
Nevsun is rapidly advancing a Pre-Feasibility study ("PFS") for the Upper
Zone.
Key next steps for the project are: PFS targeted to be completed in
September 2017 25,000 metres of drilling Decline development to start later in
Q4 2017 Production anticipated in 2021 ~ $45 million spend in 2017
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Timok project: Lower ZoneLower Zone project adds significant growth potential
Lower Zone Porphyry
Upper Zone
LowerZone
Extensive porphyry style copper-gold mineralization below the Upper Zone w/ block cave potential
Long term potential for world scale project
After UZ feasibility, Freeport-McMoRan 54% JV partner
Drilling $20 million by early 2018 to further define mineralization
P L A N V I E W O F U P P E R & L O W E R Z O N E D E P O S I T S
District potential in Serbia
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Rakita JV with Freeport-McMoRan4 exploration permits in the Borregion, including the Timok project
Tilva JV with Rio Tinto4 exploration permits in close proximity to the Timok project
100% owned projects 7 exploration permits
4 permits: copper targets
3 permits: zinc, lead, gold, silver sulphide targets
Bor Region
Bor Region
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Serbia
Bisha MineHigh grade, modern infrastructure, and
exploration potential
Independence 1993
Politics Single party state
Capital Asmara
Population 6 million (est.)
Culture 50% Islamic / 50% Christian
Currency (Nakfa) Pegged to USD
Established in 1998Nevsun has been working in Eritrea for 19 years
Strong government supportCommitted to mining industry, has contributed capital, and honored all commitments
Stable taxation and mining regulation for over 20 years
Productive, bilingual, local workforce
Copper Concentrate trucked to Massawa
(340 km) for bulk export
About Eritrea
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1200 m
475
m
Bisha Main Open Pit
NO
RT
H
High-grade copper and zincCombined Bisha & Harena Open Pit Reserves (Effective December 31, 2015)
Zone Tonnage Copper Zinc Gold Silver
Primary 21,000 kt 1.10% 5.57 % 0.68 g/t 44 g/t
Based on $2.74/lb Copper, $0.95/lb Zinc,
$1100/oz Gold and $18.50/oz Silver
Notes
1. Primary 0.1Mt proven and the rest probable 2. Qualified person for mineral reserves is Anoush
Ebrahimi, Ph.D. at SRK Consulting.3. See 2015 AIF for detailed reserve assumptions
Underground Potential
E n c o u r a g i n g u n d e r g r o u n d i n v e s t i g a t i o n i n 2 0 1 5
Update in Q2 2017 in resource and
reserve / new technical report
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Zinc expansion ramp-up continuesFirst Zn shipment Sep 2016; commercial production Oct 2016
New Zn Con. Thickening
New Zn Flotation
Expanded Zn/Cu Con.
Filtration
3.5billion lbs of Zn contained in resources
37.7Mt @ 4.3% Zn, measured & indicated resources
2.6 billion lbs of Zn in reserves
21.0Mt @ 5.57% Zn probable reserves
Notes
1. Qualified person for mineral reserves is Anoush Ebrahimi, Ph.D. at SRK Consulting. See 2015 AIF for detailed reserve tables and assumptions.2. Qualified person for resources is Phil Jankowski (BMSC), See news release dated Feb 17, 2016 for detailed resource tables and assumptions
New Zn Con. Storage
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Zinc Offtake UncommittedSelling into spot market in 2017 at low treatment charges
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2018 2019 2020 2021 2022 2023 2024 2025
Copper Equivalent Payable Production*
Copper Zinc Gold Silver
*Dec 31, 2013 43-101 Technical Report 2017-2025 payable production - Cu $2.90/lb, Zn $0.92/lb, Au $1175/oz and Ag $20/oz.. Updated annual resource and reserve statement in Q2 2017 with new technical report..
Ownership 60% Nevsun and 40% ENAMCO (Eritrean National Mining Company).
Copper 365 million lbs
Zinc 1.7 billion lbs
Gold 221,000 oz
Silver 7.6 million oz
LOMPayable Metals*mm lbs
Diversified production (Bisha mine only)Life of mine over 900 million pounds of payable copper equivalent*
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2017 Production Guidance: 200-230 mm lbs zinc10-20 mm lbs copper
Northwest
Bisha Mine
Harena Mine
Hambok
Map scale is approximate
Bisha VMS districtCamp
NORTH
Plant
Asheli
Aderat
Current Mining Licenses
Mining Agreement Area
Tabakin Exploration License
New Mogoraib River Exploration License
Mines
Deposits
Target Trend / Horizon
Felsic Volcanic
Objective: To Extend Life of Bisha Mill Focus in 2017 on: expanding Harena &
Asheli resources and advancing underground studies
Defining high priority targets with geophysics (VTEM) and drill testing
DistrictExplorationSuccess Discovered 4 additional satellite deposits Continuous resource growth since 2012 Large deposit being defined at Harena
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Eritrea
As at Dec. 31, 2016 unless otherwise indicated
Shares Outstanding ≈301M
Fully Diluted ≈312M
Market Cap ≈C$1.2B*
Cash ≈US$200M
No Debt US$0M
Share StructureAnalyst Coverage
BMO Capital Markets Canaccord Genuity Macquarie Paradigm Capital RBC Capital Markets Scotia Capital TD Securities
Shareholders
Blackrock ~ 15% Vanguard ~ 12% >70% institutional ownership
Strong holders & broad coverage
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* As at February 15, 2017
Strong Site Management Teams
Experienced leadershipManagementCliff Davis, CEO
Frazer Bourchier, COO
Joe Giuffre, CLO
Scott Trebilcock, CDO
Tom Whelan, CFO
Ken Engquist, VP Project Development
Peter Manojlovic, VP Exploration
Todd Romaine, VP CSR
Peter Tam, VP Finance
DirectorsR. Stuart Angus, Chairman
Ian AshbyGeoff ChaterCliff DavisGary German
Ian PearceStephen ScottDavid Smith
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I N V E S T O R R E L A T I O N S
T E L : +1 604-623-4700 | 1-888-600-2200E M A I L : ir@nevsun.comW E B : www.nevsun.com
TSX: NSU | NYSE MKT: NSU
Contact
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