Rana Gruber ASA

Investor Presentation • Nov 13, 2024

Gunnar Moe (CEO, Rana Gruber)	Rana Gruber's unique, strategic positioning for the coming years and Q3 update	09:00 – 09:30
Sijin Cheng (Head of Analytics, Cargill Metals and Minerals) Andrew Kirby (Manager Europe and Africa, Cargill Metals and Minerals)	Global and Chinese market balance, and the green steel transition	09:30 – 10:00
	10-minute break
Stein Tore Liljenström (COO, Rana Gruber)	Operational update, mine plan and strategic priorities	10:10 – 10:35
Nancy Stien Schreiner (Environment and Sustainability Manager, Rana Gruber)	Sustainability leadership and global impact	10:35 – 10:45
Erlend Høyen (CFO, Rana Gruber)	Financial strategy and capital allocation priorities	10:45 – 11:05
	Summary and Q&A

AGENDA FOR THE DAY

Rana Gruber's unique, strategic positioning for the coming years and Q3 update

Global and Chinese market balance, and the green steel transition

4

5

Operational update, mine plan and strategic priorities

Sustainability leadership and global impact

Financial strategy and capital allocation priorities

Gunnar Moe

Chief Executive Officer, Rana Gruber

THE WORLD NEEDS STEEL

Steel is key in building cities, cars, infrastructure and the modern society as we know today

THE FLIP SIDE OF THE COIN

The steel industry is one of the biggest emitters globally, comprising 8-10 percent of global emissions

OUR VALUE PROPOSITION

Providing iron ore to the steel mills with a lower carbon footprint and with higher iron content – reducing carbon emission throughout the value chain

THE RESULT

Rana Gruber aims to be the preferred partner for the steel industry and lead the way for a more sustainable societal development

Rana Gruber – Norway's only iron ore producer

Located in Mo i Rana in the middle of Norway, totalling 370 employees

Operating at the beginning of the value chain with mining, transportation and processing of raw materials

Producing two iron ore concentrates: Hematite (~91%) and magnetite (~9%)

Current production capacity of ~1.85 million tons annually

Mining activities at four iron ore deposits, both open-pit and underground

Listed at Oslo Stock Exchange since 2021

The transition to high-grade is happening now…

…with Rana Gruber in pole position to capitalise on increasing demand

«Race for grade»

The demand for high-grade is expected to increase rapidly as high-grade iron ore is a must-have in green steel production

• To reach net zero emissions by 2050, steelmakers must switch from coal-consuming blast furnaces to more sustainable direct reduced iron (DRI) production method
• However, DRI technology requires a higher grade of iron ore than blast furnaces

Rana Gruber aims to be a part of the elite offering high-grade iron ore

Estimated seaborne iron ore supply by iron content (Fe grade)

Source: Vale SA

Rana Gruber has already started the journey to higher grade

Increasing demand for high-grade iron ore is driving a growing premium

Demand outlook expected to cause diverging prices in the years to come, accelerating from 2029

Source: Wood Mackenzie (historical data)

Our ambition is to produce high grade iron ore Enabled by solid operations and proven track record

Among the world's most sustainable producers of iron ore

Vast resources of iron ore available – estimated capacity of 40+ years

Strong track record from more than 200 years of mining experience

Health and safety the top priority with a proven track record

Rana Gruber is strategically positioned with short sailing distance to Central Europe

Off-take agreement with Cargill enables Rana Gruber to focus on optimising production

Proximity to European steel industry with higher need for quality iron ore concentrates

Strengthened customer relationships over time due to high quality and reliable supply

Serving a large customer base with growing demand for high-quality magnetite

Serving global markets with increasing need for premium products

Rana Gruber's value proposition has delivered solid operational and financial results over time

13,1 13,2

Strong production volumes

Million metric tons

15,9

Attractive shareholder returns1

Dividends (period paid) and dividend yield2 (NOK per share / %)

1) Figures for YTD 2024 includes dividend of NOK 1.45 per share declared for Q3 2024 to be paid on or around 27th Nov 2024 2) Dividend yield calculated as dividends per share paid during the period divided by the share price at the beginning of the period

Strong foundation for sustainable long-term value creation

High and sustainable long-term production capacity enabled by continuous exploration and development ¹

History of operational excellence and efficient operations with enhanced cost focus going forward ²

Attractive strategic initiatives to unlock earnings growth potential backed by increasing demand for high-grade iron ore

3

Robust financial position supported by low leverage and strong cash conversion

Prioritising shareholder returns with strong track record of consistent quarterly dividends

Q3 2024 Results

Strong production, dividend distributed of NOK 1.45 per share

Strong production with record magnetite sales volumes

Stable and efficient production brought cash cost down from high levels seen in the second quarter

Lower realised prices for hematite due to macroeconomic outlook and strong production volumes from Australia and Brazil

Continued emphasis on shareholder returns with dividend of NOK 1.45 per share bringing total dividends to more than NOK 1.3bn distributed since listing in 2021

Record magnetite volumes produced and sold, delivering on strategic priorities

Efficient operations with cost levels down from high levels in the preceding quarter

2,41

*Mainly onward billing of freight costs related to magnetite shipments, as well as minor sales of equipment and services.

Agenda

Rana Gruber's unique, strategic positioning for the coming years and Q3 update

Global and Chinese market balance, and the green steel transition

Operational update, mine plan and strategic priorities

Sustainability leadership and global impact

Financial strategy and capital allocation priorities

Sijin Cheng Head of Analytics, Cargill Metals and Minerals

Andrew Kirby Manager Europe and Africa of Cargill Metals and Minerals

Agenda

1

2

3

4

5

Rana Gruber's unique, strategic positioning for the coming years and Q3 update

Global and Chinese market balance, and the green steel transition

Operational update, mine plan and strategic priorities

Sustainability leadership and global impact

Financial strategy and capital allocation priorities

Stein Tore Liljenström

Chief Operation Officer, Rana Gruber

Vast resource base and efficient production makes Rana Gruber a frontrunner in the iron ore industry

Significant resource base ensures production for decades

• Rana Gruber controls four iron ore deposits located in Storforshei and Ørtfjell in the Dunderland Valley in Norway.
• In total, the company possesses a resource base exceeding 400 million mt
• The vast resource base expected to ensure production for the company for several decades.

Rana Gruber is planning for the coming decades

Production mining plan: Long-term planning is part of our DNA

Metric tonnes

Preparing for mining beyond the 10-year mine plan

Old production levels above level 123 Current production level, Level 123 and 91 Next production at level 59. Mine development expect to start late 2025 Production level below level 59. Need for more exploration drilling for long term planning Exploration enables long-term efficiency Level 91, level 59 and Stensundtjern are expected to be the sources for iron ore for the next 10 years Exploration is key for long-term planning for underground mining beyond 10+ years

Significant progress on strategic projects

Fe65 – Increase minimum iron ore content in hematite product

Approaching 65% iron ore content

• Slightly behind 2024 schedule due to delays in equipment production.
• Expected to be completed first half of 2025

M40 – Increase magnetite production Decarbonisation

M40 – On track with production

• Expect to produce above 150 000 mt in 2024 (~50% increase from 2023 volumes)
• Minor installations and process improvement going forward

Test-phase for electric machinery in progress

• Rana Gruber remains committed to leading the iron ore industry's decarbonisation efforts.
• A more gradual phase-in of new equipment and technology is needed to ensure profitable progress.

90% 100% TBU

Strategic projects supported by evident market trends

Historic price premium Fe 65 vs. Fe62

• Significant price premium on 65% iron content vs. 62%
• Rana Gruber has already increased price realisation by steadily increasing iron content. Next step is to be linked to the Fe65 index

Increased Magnetite production to meet demand

• Magnetite is the highest paying market compared to hematite, due to 1) higher purity and 2) more specialised use cases
• High customer loyalty and long-term rolling contracts due to the specialised characteristics

Strategic upgrades boosting quality and long-term production value

Increased iron content (Fe %)

…whilst simultaneously increasing production (mt)

Step by step increasing quality over time to secure volume and quality

Increased quality have yielded higher running earnings - already seeing return on investment

Installation of magnetic separator in November and sizing equipment ('screens') in the first half of 2025 will further increase quality, both in terms of Fe content and reduction of minor elements

Confirming the high-quality properties of Rana iron ore

Laboratory tests as well as pilot test in processing plant show that the Rana ore has the properties to be processed into a high-grade concentrate

• → Rana Gruber will continuously work to improve product quality step by step, focusing on increasing Fe content beyond Fe65 and reducing minor elements going forward.
• → Product improvement is aligned with the direction our customers are pursuing to meet future demands in steel production, focusing on quality and sustainability.

Key steps to increase iron ore content in production

Collaboration with NTNU on utilisation potential of iron ore

Rana Gruber will establish a closer collaboration with NTNU

The collaboration aims to enhance quality and maximise the natural advantages of Rana ore.

It will provide a solid foundation for decision-making in further quality development

The collaboration will also facilitate production at the highest possible volume within operational constraints

Increasing magnetite production unlocking premium prices

Ultra high-grade

Rana Gruber magnetite is rich in iron, with Fe >70%. Sold to chemical industry for use in water treatment systems

Increased production rate

Strong magnetite production in recent quarters supports an annual production rate of more than 160 000 metric tons.

New open-pit to boost output

Increasing share of magnetite as production in Stensundtjern starts, supports annual production above 200 000 metric tons per year

Accelerating magnetite output to achieve 200 000+ tons annually

Estimated magnetite production (thousand mt)

Approaching production start at Stensundtjern open-pit mine

Assessing Storforshei infrastructure upgrades to support Stensundtjern production and future deposits, reducing OPEX and enhancing future earnings capacity. Investment decision expected Q1 2025.

Development schedule: Stensundtjern open pit

Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026

In summary: Pushing the green transition through increased quality

Increased iron ore quality – step by step

Step-by-step increasing quality of hematite product towards high-grade iron ore, which will enhance competitive position and earnings capacity

Ramping up magnetite production

Increasing in Magnetite production, a premium product already above 70% of iron content

Ensure effective production

Exploration activities to map out resources for longer term production plans

Agenda

1

2

3

4

5

Rana Gruber's unique, strategic positioning for the coming years and Q3 update

Global and Chinese market balance, and the green steel transition

Operational update, mine plan and strategic priorities

Sustainability leadership and global impact

Financial strategy and capital allocation priorities

Nancy Stien Schreiner

Environment and Sustainability Manager

Increased iron content is a key enabler for reducing carbon emissions in the steel industry

Steel industry to reduce environmental impact and emissions High-grade iron ore as a catalyst to cut emissions through entire value chain 1 2

Shift from coal to hydrogen in industries supplied by Rana Gruber

Significant CO2 impact for steel makers

(CO2/ton steel produced)

Direct reduced iron (DRI) is made using gas rather than coal, but it can also run on green hydrogen to produce green iron and steel.

3

Positioned as a global leader in decarbonisation of the industry and a preferred partner for reducing emissions

Global leader

Among the lowest carbon emissions in the industry, at 7.17 kg per ton of iron ore produced.

Source: Cargill

Access to renewable energy

Reliable access to renewable energy, with all electricity consumed produced from hydropower

Efficient logistics Short distance from mine to market strengthens competitive positioning

Optimal location

Proximity to Europe, reducing transport time, costs and fuel consumption

CO2 emissions by iron ore producers globally – scope 1+2, per asset

(kg CO2e/t iron ore)

Vast accessibility to resources and land, providing opportunity for more renewable energy in production

Rana Gruber has substantial land areas with development potential for new energy sources (Rana Gruber operates more than 23 000 000 m2 / 5 700 acres)

Significant opportunities within solar- and hydropower

Low risk, partnering with third-parties responsible for the investment

Towards Responsible Steel (TSM) membership: Grades to be published end-of-year

Globally recognised initiative supporting mining companies managing environmental and social risks, linked to UN's sustainable development goals

TSM will also contribute to ensuring good dialogue with stakeholders, local communities, and Indigenous populations, as well as HSE aspects, biodiversity, etc.

By the end of the year, Rana Gruber will have completed responses to all available protocols

Ratings to be published end of year for both Rana Gruber and peers

TSM operates with five grade levels, from AAA to C

AA and AAA are only awarded for exceptional efforts

management systems.

C

Procedures may exist but are not integrated into policies and

Agenda

1

2

3

4

5

Rana Gruber's unique, strategic positioning for the coming years and Q3 update

Global and Chinese market balance, and the green steel transition

Operational update, mine plan and strategic priorities

Sustainability leadership and global impact

Financial strategy and capital allocation priorities

Erlend Høyen Chief Financial Officer, Rana Gruber

Robust platform for continued value creation

Primary CAPEX areas supporting sustainable production and earnings growth

Estimated breakdown of 2025 CAPEX areas

Meeting the future of the iron ore industry

Focused on efficient operations and cost management

Cash cost YTD 2024

USD/mt

• Emphasis on maintaining high and stable production
• Positive revenue contribution over time from high-grade iron ore pricing and increased magnetite production
• Strict focus on cost excellence
• Cash cost year to date impacted by maintenance, repairs and increased labour costs

Cost optimisation in focus: Controlled and proactive approach

Targeting cash cost of USD 50-55/mt1 over time, aiming for the low-end of the range

Prioritising value-creating production initiatives aligned with strategic direction

• Reduce external support
• Reduce and/or postpone non-production activities

Extracting synergies from previously insourced operations such as tunnelling and mine maintenance

• Increase utilisation of machine fleet
• Reduce overtime

Supporting cash flows, further value creation, and shareholder distributions

Maintaining a robust financial position with ample liquidity

Robust balance sheet over time

NOK million / %

• Strong financial position and additional untapped liquidity

• Able to fund existing Capex program over free cash flow
• Room to increase leverage to fund Capex programs if needed

NOK 254m Net debt

NOK 100m undrawn RCF

18% leverage ratio1

56.3% equity ratio

Shareholder returns remain a cornerstone of our capital allocation strategy

Consistent historical shareholder returns

Dividends per share, period paid (NOK)

Attractive dividend policy DPS as share of Adj. Net Profit3

1) Total return based on total dividends paid and declared of NOK 36.9/share, NOK 14m share buybacks in Q1 2022, closing share price on 10 November 2024 of NOK 81.20, and share price at listing of NOK 49.50 2) Dividend of NOK 1.45/share declared for Q3 2023

3) Net profit after tax, adjusted for unrealised gains and losses from the company's portfolio of hedging positions related to iron ore, USD and freight, which does not impact the shipments concluded in the quarter.

Robust financials and committed to shareholder distributions

Capex program to support sustainable long-term production capacity and extract additional value from existing production

% Enhanced focus on cost efficiency, ensuring continued operational efficiency and robust free cash flows

Solid financial foundation with flexibility to increase leverage depending on investment opportunities

Strongly committed to shareholder distribution policy

Investment Highlights

Vast resources of highquality iron ore

Extensive base of high-quality iron ore from several sites around Mo i Rana ensuring production for decades.

A strong heritage of operational excellence

Operational capabilities and efficiency developed over the past 60 years, with a strong track record of stable production.

Pole position for high-grade production

Rana Gruber one of the most sustainable iron ore suppliers, with low carbon-emitting production and clear strategy towards high-grade production of iron ore of 67%

Strong commercial traction

Long-term relationships with blue chip customers among European steelmakers, supported by attractive offtake agreement and strategic partnership with Cargill

Solid financials and

balance

Robust balance sheet and financial flexibility, based on strong earnings creation and a sound capital structure.

Robust returns

Attractive dividend policy targeting to distribute 50-70% of adjusted net profit as quarterly dividends. Total return since listing of 140%