Copper and Zinc Production. Disciplined Growth.

Copper and Zinc Production.
Disciplined Growth.
CORPORATE PRESENTATION  February 2016
TSX &
NYSE MKT
NSU
Forward Looking Statements
This 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 Annual Information Form and 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, Qualified Persons as defined by National
Instrument 43-101, have approved the scientific and technical information concerning Nevsun Resources Ltd discussed herein.
2
Results driven producer
Profitable with strong balance sheet and poised for growth
Low cash cost copper production in H1 2016
40 – 50 million lbs copper @ C1 cost $1.20 to $1.40 /lb1
Polymetallic production commencing in H2 2016
40 – 60 million lbs copper plus 70 – 100 million lbs zinc
Additional stockpile sales throughout 2016
80 – 100 thousand ounces gold equivalent
$0.16 annualized dividend
5 years of increasing dividends
>$130 million returned to shareholders since 2011
- 2015 RESULTS Copper Produced
Cash from operations
136 Mlbs
$120 M
Earnings for shareholders $23 M
Cash in bank (no debt)
$434 M
Growth through exploration & acquisition
Management track record of success
Dividends paid
1 C1 cash cost as defined by Brook Hunt - see MD&A All currency in USD unless noted otherwise
$32 M
3
Our Strategy
Copper and Zinc Production, Disciplined Growth
A RESPONSIBLE AND SAFE OPERATOR
Maximize
value of
Bisha
resources
Grow
Diversify
through
district
exploration
through
merger or
acquisition
Sustain
Dividend
US$0.16
annualized
M&A
Copper
or Gold
Production or
feasibility
stage
Large enough to
diversify Bisha
cashflows
Africa,
Europe, or
Americas
4
Track record of success
Managing and delivering results
Capital and operating delivery



Financial delivery
Built and expanded Bisha on-time and
under budget over 3 phases
Deployed over $420 million in capital
Operated Bisha 5 years, delivering strong
earnings and cash flow
BISHA RESERVE LIFE
+50%


Growth delivery

Continuous resource growth at Bisha
BISHA DISTRICT RESOURCES
60
15
5 years of dividend growth
Returned $130 million to shareholders
Mt
Inferred
+115%
M&I Resources
50
Mine Life,
years
10
Reserve
40
30
5
20
Reserve
Depletion
0
Startup
Dec 2014
10
0
Feasibility Jan 2011
Jul 2012
Dec 2013 Dec 2014
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, 2014) detailed in 2014 AIF. Qualified person is Anoush Ebrahimi, Ph.D. at SRK Consulting
Dec-15
5
Operations
High grade, modern infrastructure,
and exploration potential
6
Bisha Mine in Eritrea

Established in 1998
Nevsun has been working in
Eritrea for 18 years

Committed to mining industry,
has contributed capital, and
honored all commitments
Copper Concentrate trucked to Massawa
(340 km) for bulk export

Independence
Politics
Single party state
Asmara
Population
6 million (2013 est.)
Culture
50% Islamic / 50% Christian
Currency (Nakfa)
Pegged to USD
Stable taxation and mining
regulation for over 20 years
1993
Capital
Strong government support

Productive, bilingual, local
workforce
7
Diversified production
Life of mine over 1.1 billion pounds of payable copper equivalent*
Copper Equivalent Payable Production*
Copper
Zinc
Gold
Silver
LOM Payable Metals*
Copper
470 million lbs
Zinc
1.7 billion lbs
180
Gold
240,000 oz
160
Silver
8.2 million oz
NSR
Revenue
43%
39%
mm lbs
120
100
80
60
40
20
See 2016 Guidance
140
0
2016
2017
2018
2019
2020
2021
2022
2023
2024
* Dec 31, 2013 43-101 Technical Report 2016-2025 - Cu $2.90/lb, Zn $0.92/lb, Au $1175/oz and Ag $20/oz. Ownership 60% Nevsun and 40% ENAMCO
2025
8
NORTH
High-grade copper and zinc
Combined Bisha & Harena Open Pit Reserves (Effective December 31, 2014)
Zone
Tonnage
Copper
Supergene
3,500 kt
3.68 %
Primary
21,600 kt
1.08 %
Zinc
5.66 %
Gold
Silver
0.60 g/t
23 g/t
0.70 g/t
45 g/t
Notes
1. Supergene 1.4Mt proven and the rest probable
2. Primary reserves 100% probable
3. Qualified person for mineral reserves is Anoush
Ebrahimi, Ph.D. at SRK Consulting.
4. See 2014 AIF for detailed reserve assumptions
25.3Mt Proven and Probable Open Pit Reserves
Based on $2.90/lb Copper, $1.00/lb Zinc,
$1160/oz Gold and $18.50/oz Silver
475 m
Bisha Main
Open Pit
Underground
Potential
Open at
Depth
Encouraging underground
investigation in 2015
Continued drilling and
investigations in 2016
1200 m
9
Tailings
Facility
Bisha Process Plant
Crusher
Filtration & Concentrate
Loadout
Crushed Ore
Stockpile
Copper
Flotation
Mills
HME Shops
Future Zinc
Flotation
Power
Plant
Fuel
Depot
Gold
Plant
Water Ponds
Workshops
South Bisha Pit
Offices
North Bisha Pit
10
Modern
infrastructure


Power – remotely generated diesel power
Water – bountiful permitted groundwater
supply
Rotainer system installed at
Massawa Port meets both the
needs for copper concentrate
export while setting high
environmental standards for
mining operations in Eritrea

Roads – simple logistics with high-quality
roads and trucking contractor

Port – nearby, modern, state-of-the-art
loading

Shipping – via major world trade route
11
Zinc expansion project on-track
Zinc production starting in 2016
1.7 billion lbs of Zn payable in reserves
3.5 billion lbs of Zn contained in resources
21.6Mt @ 5.66% zinc probable reserves
38.3Mt @ 4.1% zinc indicated resources
$80 million to add zinc flotation and storage

On-time and under budget – over 90% complete
SCOPE OF EXPANSION PROJECT
New Zn Con.
Storage
Expanded
Zn/Cu Con.
Filtration
New Zn Con.
Thickening
New Zn
Flotation
Notes
1. Qualified person for mineral reserves is Anoush Ebrahimi, Ph.D. at SRK Consulting. See 2014 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
12
Steel Work Near Completion
View of Zinc Flotation Area
Electrical Installation Progressing
Zinc Build
Pipe Installation Progressing
January 2016
13
Generating sustainable prosperity
Corporate Social
Responsibility is
central to Nevsun’s
business
 See 2014 CSR Report for more details




Prioritization of hiring locals – 89% of the workforce ≈ 1,230 strong
Training, training, training
Independent human rights assessment; external audit in Aug 2015
Safety performance exceeding North American industrial metrics
2015 CSR Report planned for April 2016
14
Bisha District Exploration
TSX: NSU | NYSE MKT: NSU
15
District scale license position
Aggressive district exploration program in 2016
Potential to increase Bisha District VMS tonnage through


Extending current deposit tonnage at depth and on-strike
Adding new district deposits
VMS DISTRICT DEPOSIT SIZE & DISTRIBUTION
District
Open
Mine
5 km
Noranda District
Flin Flon District
Bisha District
25 deposits
18 deposits
4 deposits
*
>200Mt
*
>180Mt
40Mt
measured & indicated resource
See news release dated Feb 17, 2016 for detailed resource tables and assumptions. Qualified person for
resources is Phil Jankowski (BMSC),
Scale
* Noranda and Flin Flon
districts include many
deposits that were
discovered and mined prior
to NI43-101 disclosure
requirements and tonnages
are estimates
Source: Sangster,
Quantitative characteristics
of VMSs and Company data
16
Bisha VMS district exploration
Camp
2016 exploration plan




NW Zone
Continue Harena drilling down dip
and on-strike
Drill Bisha Main at depth
Greenfield exploration on Mogaraib
Budget $11 million including ~34
km of drilling
Plant
Bisha Main
Favourable Horizon
Felsic Volcanic
Exploration Targets
Aderat
Harena
Asheli
NORTH
Bisha Licenses
Current Resource
Map scale is
approximate
Hambok
Mogoraib River License
2015 success
Takewuda



New discovery at Asheli
Extended Harena to 600m depth
increasing resources
Encouraging underground mining
investigations at Bisha and Harena
17
Harena extension drilling
Deposit drilled to 600 m
depth in 2015




Deposit still open at depth
Zinc grades and widths
improving with depth
2015 internal underground
scoping study justifies
continued work
12 km drilling budgeted in
2016
For summary of recent Harena results see December
1, 2015 news release. Harena resource statement (red
in figure) is described in the 2014 Annual Information
Form (AIF).
Coloured Rectangles
are the Geophysical
Plate Models
Derived From the
Boreholes BHEM
Planned 12km
2016 Drilling
HX-069:0.8% Cu, 5.0% Zn, 0.5g/t Au, 14g/t Ag over 115m, including
0.6% Cu, 10.2% Zn, 0.6g/t Au, 19g/t Ag over 40m
HX-071: 0.7% Cu, 7.9% Zn, 0.3g/t Au, 17g/t Ag over 50m, including
0.3% Cu, 10.2% Zn, 0.2g/t Au, 13g/t Ag over 36m
Additional high grade holes HX-050 and -051 (April 28, 2015 news release)
18
Corporate
Overview
TSX: NSU | NYSE MKT: NSU
19
Strong Bisha
Management Team
Management
Directors
Cliff Davis, CEO
Tom Whelan, CFO
Frazer Bourchier, COO
Joe Giuffre, CLO
Scott Trebilcock, CDO
Peter Manojlovic, VP Exploration
Todd Romaine, VP CSR
Peter Tam, VP Finance
R. Stuart Angus, Chairman
Ian Ashby
Cliff Davis
Robert Gayton
Gary German
Gerard Munera
37% of our on-site senior
management are Eritrean
20
Strong holders & broad coverage
Analyst Coverage
Consensus Target:
1
C$4.95
1.

BA-Merrill Lynch

Canaccord Capital

CIBC

Share Structure
As at Feb 15, 2016 unless noted
Shares Outstanding
199.8M
Fully Diluted
210.7M
Cormark
Price
C$4.21

Dundee
Market Cap

Haywood Securities Inc. Cash1 @ 1.35 CDN/USD

Paradigm Capital

Raymond James

RBC Capital Markets
 Blackrock ≈ 19%

Scotia Capital
 Vanguard ≈ 19%

TD Securities
 Franklin Templeton
Per Company data as at Dec 31, 2015
≈C$840M
≈$600M
Significant Share Holders
21
Contact
INVESTOR RELATIONS
+1 604-684-6730
T O L L F R E E : 1-866-684-6730
EMAIL:
[email protected]
WEB:
www.nevsun.com
TEL:
Thank You.
TSX: NSU | NYSE MKT: NSU