Investor Presentation May 2013 - Northland Resources

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Main terms of supplier credit facility • The Reorganisation plan that has been developed by the Administrator proposes that the liabilities of each trade creditor of Northland be repaid by December 31, 2013 up to a maximum, in respect of each creditor, of SEK 2.6 million. • In addition, and subject to the release of certain funds to the Issuer, a further USD 30 million will be available to repay trade creditors with claims exceeding SEK 2.6 million, who will each be repaid out of such funds on a pro rata basis by 31 December 2013. • The remaining Trade Claims (and accrued interest on such Trade Claims) will be subdivided into two categories: • Remaining Trade Claims that are owed to Metso and Peab, which together represent approximately 93% of the remaining Trade Claims (the “M/P Outstanding Trade Payables”); and • Remaining Trade Claims that are owed to other trade creditors (the “Other Outstanding Trade Payables” and, together with the M/P Outstanding Trade Payables, the “Outstanding Trade Payables”). • The Outstanding Trade Payables will be subject to the following terms: • Final Repayment Date: • Repayment: • M/P Outstanding Trade Payables: July 15, 2020, being three months before the maturity date of the Second Lien Bonds. • Other Outstanding Trade Payables: January 15, 2017. • M/P Outstanding Trade Payables: 10 installments on each of the Payment Dates beginning on the 15 January 2016 Payment Date, subject to payment of interest on first lien bonds, sufficient free cash flow and in accordance with the Waterfall; final payment to be made on the 15 July 2020 Payment Date. • Other Outstanding Trade Payables: four installments on each of the Payment Dates beginning on the 15 July 2015 Payment Date, subject to payment of interest on first lien bonds, sufficient free cash flow and in accordance with the Waterfall; final payment to be made on the 15 January 2017 Payment Date • Interest: 4% per annum (calculated on a 30/360 basis) with effect from (and including) 8 February 2013. Interest will accrue from 8 February 2013 but will only become payable on the Payment Dates in accordance with and subject to the Waterfall. • Creditors not willing to accept payment over a period exceeding one year as set forth above will instead receive payment of 35 per cent of the total principal amount outstanding, but minimum the lower of i) the amount owed and ii) SEK 2.6 million. • Metso and Peab, being Northland’s two largest trade suppliers, together may vote to propose one candidate as member of the board of directors of Northland, the appointment of whom will be subject to shareholder approval. 64
Profit & Loss Statement 2012 Year ended December 31, 2012 2011 USD '000 Revenue - - Cost of sales (24 029) - Gross profit/(loss) (24 029) - M arketing expenses (985) (752) General and administrative expenses (22 141) (16 892) Other operating expenses (994) (10 540) Other income 56 92 Operating profit/(loss) (48 093) (28 092) Finance income 30 201 2 305 Finance expense (5 692) (11 880) Finance income/(expense) - net 24 509 (9 575) Profit/(loss) before tax (23 584) (37 667) Income tax (1 222) (402) Profit/(loss) for the year (24 806) (38 069) Other comprehensive income Change in fair value of available for sale assets - 13 Foreign currency translation 5 859 (8 498) Total comprehensive income/(loss) for the year, net of tax (18 947) (46 554) Profit/(loss) per share: Basic and diluted loss for the year attributable to the equity (USD) (0,05) (0,17) 65
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STRICTLY PRIVATE & CONFIDENTIAL THI
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Disclaimer (cont’d) This Presenta
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Key Risk Factors Relating to the Gr
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Transaction Background • Budget p
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Indicative Commercial Terms of the
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Funding Sources and Capital Structu
Page 13 and 14: Governance Changes to Give Creditor
Page 15 and 16: Northland in Transition from Projec
Page 17 and 18: Agenda Investment thesis Northland
Page 19 and 20: Northland is listed in Oslo Share o
Page 21 and 22: First concentrate from Kaunisvaara
Page 23 and 24: Kaunisvaara Project Overview Kaunis
Page 25 and 26: Production to Reach 4 dmtpa in Q3 2
Page 27 and 28: Strong Logistics Partners Ramping U
Page 29 and 30: Kaunisvaara Premium Concentrate Exp
Page 31 and 32: Potential production upside Upgrade
Page 33 and 34: Further Growth Potential - Hannukai
Page 35 and 36: Update on Operating Cost Expectatio
Page 37 and 38: Projected Capital Expenditure Until
Page 39 and 40: Sources and Uses starting 1 Jan 201
Page 41 and 42: Budget Assumptions in a Historical
Page 43 and 44: Forecast Iron Ore Supply Being Revi
Page 45 and 46: Kaunisvaara Concentrate - Quality L
Page 47 and 48: Risk Factors Risks related to the p
Page 49 and 50: Risk Factors (cont’d) Risks relat
Page 51 and 52: Risk Factors (cont’d) Litigation
Page 53 and 54: Risk Factors (cont’d) Other risks
Page 55 and 56: Risk Factors (cont’d) Other risks
Page 61 and 62: Northland expected to emerge from R
Page 63: Main terms of the restructuring of
Page 67 and 68: Kaunisvaara Mineral Reserve Stateme
Page 69 and 70: Management Team Executive Team Karl
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Investor Presentation May 2013 - Northland Resources

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