Rana Gruber ASA

Earnings Release • Nov 15, 2023

CEO Gunnar Moe & CFO Erlend Høyen Capital markets update

Q2 2023 Results

ⁱ Rana, 29 August ²⁰²³ Oslo, 15 November 2023

Programme

Topic	Presenter
Introduction to Rana Gruber	Gunnar Moe (CEO, Rana Gruber)
Mine plan, increased magnetite production, and increased iron content	Stein Tore Liljenström (COO, Rana Gruber)
Decarbonisation and the mining transition	Nancy Stien Schreiner (Environment and Sustainability Manager, Rana Gruber)
Break
Rana Gruber: Navigating the shift in Iron ore quality for steel's new era	Lee Kirk (Managing Director, Cargill Metals)
	Leon Davies (Sustainability Lead and Atlantic Customer Lead, Cargill Metals)
Financial position and cash flow management	Erlend Høyen (CFO, Rana Gruber)
Q&A and closing remarks	Gunnar Moe (CEO, Rana Gruber)
Lunch

Introduction to Rana Gruber

Gunnar Moe

CEO of Rana Gruber

Well-positioned to lead the transition towards carbon free mining

Aim to be world's first carbon free iron ore producer

Favourable location ensuring energyefficient logistics

Vast resources and reserves, and stable production

Solid financial position and consistent track record on dividend distribution

Value chain

Rana Gruber operates at the beginning of the value chain

Our products play a fundamental role for a variety of end-markets

Water treatment systems Brake linings, magnetic stripes, colourants, etc.

Flexibility to navigate market changes

Cargill committed to buy and market all hematite concentrate

Agreement providing access to European steel mills, and flexibility to supply other markets if desired

Reduced offtake in Europe due to planned maintenance stop for one of the largest steel mills, combined with high production, results in five shipments being directed to Asia this year

Europe remains default destination of shipments

An attractive workplace

A cornerstone for the historical development of the city of Mo i Rana, the local industry, and the local community

An attractive professional environment with exciting work tasks and career options

Insourcing of mining workstreams close to completion

Three strategic development projects

Mine plan, increased magnetite production, and increased iron content

Stein Tore Liljenström COO of Rana Gruber

Underground production at three levels

Elements from mine plan

Current production levels fully financed and in production until 2025

New production (L91) level planned to commence mid-24, with ore reserve of approx. 9 mmt

Continuous development of UG mine – tunnelling insourced

Open-pit production in Stensundtjern to boost revenues from M40

Elements from mine plan

Process of optimising open-pit design and concept – production to commence late 2024 / beginning 2025

Cash cost to be impacted by truck transport to Ørtfjell and higher activity in 2025/2026 due to larger share of waste rock to remove in new OP mine

High magnetite concentration to drive increase in M40 production

Three strategic development projects

Revenues from M40 production provide security

Strategic project: M40 – Increase magnetite production

Ultra high-grade magnetite product, produced without use of chemicals

High demand for water treatment chemicals based on magnetite

Stable prices for M40 to chemical industry – provide security in times with fluctuating prices for hematite

Ramp-up of magnetite volume progressing according to plan

Strategic project: M40 – Increase magnetite production

installations in Nov 2023 and summer 2024

High share of magnetite in Stensundtjern deposit

Potential for further boost of M40 volume in 2025

Three strategic development projects

Price premium for Fe65

Strategic project: Fe65 – increase minimum iron ore content in hematite product to 65%

Price premium Fe65 vs. Fe62 (USD/mt) Growing preference for low-emission steel production drives demand for higher iron content in iron ore products

Hematite product to be linked to premium price index

Fe65 to reduce CO2e emissions by 20-25 kg/tonne produced steel vs. Fe62

Upgrade to Fe65 progressing according to plan

Strategic project: Fe65 – increase minimum iron content in hematite product to 65%

Fe content in hematite concentrate

Higher Fe content enabled by improved sorting prior to loading and upgrade of processing plant

Iron ore concentrate production

Higher production volumes, despite lift in Fe content

Potential upgrade to Fe67

Decarbonisation of European steel industry expected to drive demand for iron ore concentrate with Fe content above 66.5%

Ongoing studies indicate promising potential to produce a hematite concentrate with a Fe content of ∼67%

Fe67 to reduce blast furnace CO2e emissions by 50-60 kg/tonne produced steel vs. Fe62, and is suitable for DRI steel production

Pre-project studies and tests continue until spring 2024 – decision on further action expected during 2024

Responsible mining

Nancy Stien Schreiner

Environment and Sustainability Manager of Rana Gruber

Three strategic development projects

Towards carbon free production

Strategic project: Decarbonisation

Underground mine Open-pit mine Rail transport

• Five electric machines in operation
• Ongoing development of on-site infrastructure with rescue chambers and charging stations

• Timeline depending on timing of machine deliveries from suppliers

• OP production in Ørtfjell to continue with current operations facilities until completion in 2024

• Future OP production in Stensundtjern to be carbon free

• Test of technology in winter 2024

• Governmental decision to electrify part of Nordlandsbanen track, to which Rana Gruber's rail transport is connected

• Awaiting concrete plans from authorities before further action
• Timeline depending on updates from authorities

Electrification and energy efficiency

Strategic project: Decarbonisation

Expected benefits of electrification

• Increased operational efficiency
• Price premium for sustainably produced iron ore
• Improved working environment

Advantages of Rana Gruber include

• Location of deposits
• Reliable access to renewable power

First electrical machinery in operation

Strategic project: Decarbonisation

Frame agreement with Sandvik for 19 Battery Electric Vehicles

Production drilling rigs and tunnelling drilling rigs already in operation

Load and haul machines to be introduced

Towards TSM certification

Leading the mining transition

Globally recognised initiative supporting mining companies' managing environmental and social risks

Originated in Canada and adapted for the Norwegian mining industry – with contributions from Rana Gruber

Certification expected in 2024 – demonstrates commitment to responsible and sustainable production

Towards Responsible Steel membership

Leading the mining transition

Global not-for-profit multistakeholder standard and certification initiative

Membership expected 2024

Demonstrates commitment to sustainability and provides access to forum connecting leading industry players

Coffee break

Navigating the Shift in Iron Ore Quality for Steel's New Era

Lee Kirk Managing Director Cargill Metals

CONFIDENTIAL. This document contains Cargill Confidential information. Disclosure, use or reproduction outside Cargill or inside Cargill, to or by those who do not have a need to know is prohibited. © 2022 Cargill, Incorporated. All rights reserved.

2023 - A year that started optimistically, bottomed out, but may end on a positive note

• The Q1 China recovery story flops
• But by Q3 the global Fe picture feels balanced
• Q4 A more positive tone to end the year?

2024 - A year of industrial demand recovery?

• Can stimulus follow through?
• China could rebuild stocks, while ex-China looks more balanced?

2023 - China economic issues continue to be a drag.

• The Q1 China recovery story flops
• China economic issues continue to weigh on the nearby
• But forward view seems more positive

2024 - Take 2 the fundamentals look supportive

• Positive signs into 2024 for Capes
• Panamax to remain stable

The Power of Partnership Rana Gruber and Cargill. 1+1=5

Iron Ore More than Meets the Eye

Understanding the impact on blast furnace health

The Impact of China From property to consumption

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The Impact of China

Addressing environmental and efficiency concerns

The Increasing Carbon Challenge

The Supply Side Equation

Increasing gangue

The race is on.

Steel Industry Health Issues From Caviar to fast food and back.

Corrective Iron Ores

The Challenges and Benefits of"Healthy" Concentrates

Rana Gruber Concentrates

Ores for a New Steel ERA

Coke based blast furnace

Natural gas based DR

Displace natural gas with green hydrogen

Technological breakthroughs

Cherry on the Cake

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An unstoppable drop in global ore qualities

Expanding operational need for high grade ores

Increasing cost of carbon

Growing demand for lower carbon steels

Increasing demands for ultra-high grade and corrective ores

Rana Gruber is positioned for a very bright future

Green Shipping

How to decarbonize shipping?

Cleaning up the supply chain will require the decarbonization of shipping

Numerous technologies are currently being researched and tested

Some solutions are ready to deploy at relatively small cost (e.g. upgraded paint, small energy saving devices, increased slow steaming) but won't be enough in the long run

Long term solutions that deliver radical improvements will have to come from new technologies, in particular alternative propulsion technologies (e.g. zero carbon fuels assisted by wind)

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The journey lower carbon shipping

Financial position and cash flow management

Erlend Høyen CFO of Rana Gruber

Attractive dividend distributions

Consistent track record of shareholder return

Dividend per share (NOK)

More than NOK 1 billion paid out in dividends since admission for trading in 2021

Policy to pay out 50-70 per cent of adjusted net profit1 each quarter

Up to 30 per cent of the allocated dividend amount can be applied for acquisition of Rana Gruber shares

1According to the dividend policy, the adjusted net profit shall constitute the IFRS based net profit after tax, adjusted for unrealised gains and losses from the portfolio of hedging positions related to iron ore, FX, and electric power. The relevant hedging positions are those related to shipments initiated in the quarter of reporting for which the final price is concluded in the subsequent quarter. The board of directors can also adjust for extraordinary events which do not count as being part of the company's core business.

Capex plan remains firm

*The figures for the decarbonisation project only concern infrastructure investments relating to the electrification of the underground operations, they do not concern electric mining machines and vehicles, nor the open-pit operations nor the rail transport.

Lease obligation to increase going forward

Obligation covering all vehicles and mobile machines

Obligation potentially to increase up to doubling, net Enova funding of MNOK 40 and trade-in of diesel-powered machines, when carbon free

Increase depending on delivery rate, price development for new machines, and trade-in value of diesel-powered machines

Stable development and workflows for operational excellence

Hedging for stable cash flow

Key hedging assessment criteria

Hedging of iron ore, FX, freight and electric power

Max. 50% of annual production volume, for a period of up to 24 months

Changes in portfolio value included in P&L under net financial income/expenses

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Contact: ir@ranagruber.no

Key takeaways

Well-positioned to lead the transition towards carbon free mining

Strong cash generation and solid financial position enabling attractive dividend distributions

Progress on strategic projects and partnership with Cargill provide promising foundation for further progress

Welcome for lunch!

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Next report: Q4 2023 – 15 February 2024