JANUARY 2017 - Niobay Metals Inc.niobaymetals.com/wp/.../01/NBY_Web-Presentation_Jan... · Carole...
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CORPORATE PRESENTATIONJANUARY 2017
Developing one of the most critical metal TSX-V: NBY
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Forward Looking Statements
This presentation contains certain forward-looking statements under the provisions of Canadian securities laws,as well as historical information. Forward-looking statements include, but is not limited to, statements relatingto the Company's strategy, goals and objectives for its James Bay Project, targets and timetable for theexploration and development of the James Bay Niobium project, resource estimates, costs estimates, thepotential demand and supply of niobium, and the price of niobium. Forward looking statements express, as ofthe date of this presentation, the Company’s plans, estimates, forecasts, projections, expectations or beliefs asto future events and results. Forward-looking statements involve a number of risks, uncertainties and otherfactors beyond the Company’s ability to control or predict, and there can be no assurance that such statementswill prove to be accurate. Therefore, actual results and future events could differ materially from thoseanticipated in such statements. Risks, uncertainties and other factors that could cause results or future eventsto differ materially from current expectations expressed or implied by the forward-looking statements include,but are not limited to, factors associated with fluctuations in the market price of metals, changes or delays inmining development and exploration plans, the timing of receipt of necessary permits or regulatory approvalsfor the Company’s exploration projects and other operations, uncertainty related to historical estimate ofresources, uncertainty involved in interpreting geological data and future exploration results, environmentalrisks and hazards, uncertainty as to calculation of mineral resources, requirement of additional financing oradditional permits, authorizations or licenses, risks of delays in construction and production and other risksreferred to in the Company’s Annual Information Form. The Company does not assume any obligation, toupdate these forward-looking statements and information, except as required by law.
Claude Dufresne, P. Eng, acted as the qualified person as defined in National Instrument 43-101. He reviewedand approved the technical and scientific content of this presentation. Mr. Dufresne is the President and CEO ofthe Company.
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Company Profile
Listed on the TSX-V: NBY
Developing one of the most critical metal: Niobium
Owns 100% of the James Bay Niobium Project located in Ontario
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DIRECTORS & MANAGEMENT
Serge Savard Chairman of the board
Claude Dufresne President & CEO
Alain Krushnisky CFO
Jean-Sébastien David Director
Raymond Legault Director
Jacques Bonneau Director
Jean Rainville Director
Carole Plante Corporate Secretary
STOCK INFORMATION
Symbol NBY
Exchange TSX-V
Market Cap $29 M
Shares outstanding 32.7 M
52-week high $1.25
52-week low $0.05
Cash (Dec 31, 2016) $2.3 M
Updated January 25, 2017
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Population is on the Rise
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For the first time in history, half of the world’s population is living in citiesPopulation to reach 9 billions by 2050
Bill
ion
s o
f p
eop
le 10
9
8
7
6
5
4
3
2
1
0
Urban
Rural
Source: UN World Urbanization Prospects
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Urbanization is Changing the World
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By 2050, two-thirds of the global population will live in urban areas
Source: UN World Urbanization Prospects
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Steel is at the Core of Urbanization
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Steel is the material of choice for modern development
Strong
Ductile
Durable
100% Recyclable
Cost Effective
Safe
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Stronger
Tougher
Lighter
More flexible
Easier to weld
Reduces GHG emissions
By adding it in steelmaking process Niobium improves steel properties
Niobium an Undeniable Ally for Steel
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Niobium is Everywhere
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Automotive (structure, body)
Bridges (beams, rods)
High-rise buildings
O&G Pipelines Aerospace (jet engine, rivets)
Tools Medical (MR, implants)
Electronics (semiconductors)
JewelryStainless steel (Exhaust)
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Niobium a ‘green’ metal
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$10 of Niobium
5% liters/km economy
0.02% of Niobium
Mid-size vehicule
Øresun bridge
$25M & 15,000 tons
savings
15,000 tons
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Niobium Demand by Region
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North America
South America
Europe & CIS
Africa & Middle East
India
ChinaSouth Korea
Japan
2021 projected world consumtion
100 000 t FeNb
Note: About 3,000 t are not included in the picture (other Asia & Australia)
Source: Camet Metallurgy Inc
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Demand is Growing
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The amount of Niobium used per ton of steel is risingNiobium demand could double if China catches-up
0
20
40
60
80
100
120
140
0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000
g Fe
Nb
/ t
Stee
l
Crude Steel Output (Mt)
China
Europe & CIS
South Korea
Americas
Japan
Crude Steel Production vs Niobium Intensity of Use, 2016
Source: Camet Metallurgy Inc
Note: Size is relative to total Niobium consumption
India
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Global Supply
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Araxa
Niobec
Catalao
8%
Source: Camet Metallurgy Inc
Resources(M tonnes)
75 39 +800
Grade(%Nb2O5)
0.53 0.93 2.50
Recoverable Unit(kg Nb2O5/t milled)
3.2 3.9 15
11%
80%
Only 3 producers sharing global demand for over 40 yearsKey end-users rely 100% on imports
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High Value Niobium Assets
100%
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100%2014 :
2016 :
2011-2012 : 30%
Niobec mine
Catalao + Phosphate mine
Source: Bloomberg
Recent M&A transactions reflect the appetite from Asian entities
Araxa mine
$US 1.7B
$US 500M
$US 3.9B
(10.3 x EBITDA)
(5.6 x EBITDA)
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$10
$15
$20
$25
$30
$35
$40
$45
$50
Niobium Prices are Stable
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Between 2006 and 2008, the price of ferroniobiumincreased to address what appeared to be astructural under-valuing of niobium. Up to thatpoint, the strong growth in demand forferroniobium had not been reflected in its price.
USD
/kg
Nb
US dollar strength towards the Yen,Euro and Renminbi caused thereported price in USD to decline.Real prices in local currenciesremained stable.
Source: Camet Metallurgy Inc
Niobium is one of the only commodity which price remained fairly stable in recent years
World average FeNb price (converted in USD)
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Niobium Prices are Stable
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¥0
¥500
¥1 000
¥1 500
¥2 000
¥2 500
¥3 000
¥3 500
¥4 000
0 €
5 €
10 €
15 €
20 €
25 €
30 €
35 €
40 €
45 €
50 €
EU/CIS Japan
FeNb prices remained stable in local currencies
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James Bay Niobium Project
Moose River, Moose Factory
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Project Location
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James Bay Lowlands, Northeast Ontario, Canada
40 km southeast of the town of Moosonee
110 km northwest of the Detour Gold mine
James Bay Niobium
Detour Gold
Moosonee
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Infrastructures
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Moosonee
Renison station
Wetum road
James BayNiobium
Crown Mining Lease
Rail (ONR)
James Bay
< 40 km
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James Bay Niobium History
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Discovered in 1966
Historical estimate of 62Mt @ 0.52% Nb2O5 established by Bechtel Canada Ltd. in 19671
Open at depth
Major exploration work carried from 1967 to 1969
14,000 meters of drilling at an average depth of 170 meters in 85 holes, in sections of61 meters intervals along a strike of 730 meters1
Exploration shaft (~130' ) & a 250' cross-cut
225Mt extracted for metallurgical testing (pilot plant)
Lakefield Research carried out metallurgical tests
Overall recovery of 78%, very low impurities, and high grade concentrate1
Feasibility study completed by Bechtel Canada Ltd. in 1969
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completedin the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource noras having been verified by a qualified person.
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Surface Plan
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0.3-0.5% Nb2O5
0.5-0.9% Nb2O5
Inside red dash line: 62 M tonnes @ 0.52% Nb2O51
Unit 6 (red): High-grade zone 0.5 - 0.9% Nb2O51
Unit 5 (orange): Medium-grade zone 0.3 - 0.5% Nb2O51
*Historical resources estimate are not 43-101 compliant and are based on data obtained by previous operators in the 60's. MDN is not treating the historical
resources as NI 43-101 compliant nor as having been verified by a qualified person, and they should not be relied upon.
SEC
TIO
N 0
0
SEC
TIO
N 8
N
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completedin the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource noras having been verified by a qualified person.
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Section 00
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0.3-0.5% Nb2O5
0.5-0.9% Nb2O5
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completedin the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource noras having been verified by a qualified person.
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Strategy and Timeline
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Re-log and analyse
2016Acquisition
2017 2018 2019 2021Production
2020
PEA release
$8 million ~C$20 million
PFS release
DFS release
Start construction
Acquisition 43-101 Resource
NioBay’s objective is to penetrate the market with around 5% of themarket share
Drilling
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Summary
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Niobium is an essential strategic and critical metal in modernurbanisation
Reduce emissions of greenhouse gases
Highly sought after assets
Growing demand and stable prices
Well located project near key infrastructures
Aims to become the second producer in North America and the fourthin the world
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1693 St-Patrick Street,Suite 106,
Montreal (Quebec),Canada, H3K 3G9
Tel: (514) 866-6500www.niobaymetals.com
Claude Dufresne President & CEO
Developing one of the most critical metal