Rana Gruber ASA

Investor Presentation • Nov 10, 2022

Capital Markets Update

Oslo, 10 November 2022

Programme

Topic	Presenter
Introduction and strategy update	Gunnar Moe, CEO
Carbon free production	Nancy Stien Schreiner, Environment and Sustainability Manager
State of the art equipment	Jan Ove Stene, MD and Territory Manager of Sandvik Group
Resources and reserves	Stein Tore Liljenström, COO
Break
Key market drivers	Leon Davies, Sustainability Lead and Atlantic Customer Lead of Cargill Metals
Financials	Erlend Høyen, CFO
Q&A session and closing remarks	Gunnar Moe, CEO
Lunch

Introduction and strategy update

Rana Gruber is well-positioned to lead the mining transition

One of the industry's lowest carbon emissions and aim to be carbon free by end of 2025

Advantageous location ensuring energy-efficient logistics

Vast resources and reserves, and stable production

Value chain

Rana Gruber operates at the beginning of the value chain

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

Cost-reduction from insourcing of workstreams

Insourcing of exploration drilling and mine tunnel infrastructure

More underground mining requires staff to be part of day-to-day operations

Insourcing expected to reduce cost, improve cash flow predictability, and secure operational stability

Three strategic development projects

The upgrade to Fe65 is progressing according to plan

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

Increased focus on low-emission steel production causes increased demand for higher iron content in hematite products

Product to be linked to premium price index

Project completion expected by end of 2024

Cargill prepares customers to pay for and receive the improved product - expected during 2025

Price development Fe62 vs. Fe65 (USD/mt)

A clear upward trend in iron ore content since the summer

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

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Ramp-up of magnetite volume continues according to plan

Strategic project: M40 – Increase magnetite production

Planned increase in magnetite production by 50 per cent (thousand mt) 100 150 2021 2024e High demand for water treatment chemicals based on magnetite Revenues from magnetite provide security in times with fluctuating prices for hematite Design of processing plant completed, and organising of upgrade is planned Project completion expected by end of 2024

Zero carbon emissions

Nancy Stien Schreiner

Environment and Sustainability Manager of Rana Gruber

10 November

Our pathway to carbon free production

Strategic project: Carbon free production

Project motivated by

• Social responsibility
• Reduction in operating costs
• Price premium
• Increased investment attractivity

Advantages of Rana Gruber include

• Location of deposits
• Reliable access to renewable power

Project completion expected by end 2025

Strategic project: Carbon free production

Underground mine Open-pit mine Rail transport

• Process of replacing equipment started
• Planning of on-site infrastructure started

• Open-pit production in Ørtfjell to continue with today's operations facilities until completion in 2024
• Future open-pit production in Stensundtjern to be carbon free

• On-going project with Sintef and other players to investigate electric vs. hydrogen solution
• External recommendation expected to be finalised during first half of 2023

Leading the mining transition

Sustainable mining is part of Rana Gruber's DNA

State of the art equipment

Jan Ove Stene

MD and Territory Manager of Sandvik Group

10 November

WORLD-LEADING POSITIONS

TECHNOLOGY LEADERSHIP

METAL CUTTING AND MACHINING SOLUTIONS

MINING AND ROCK SOLUTIONS

ROCK PROCESSING SOLUTIONS

AMONG THE LEADING BEV MANUFACTURING COMPANIES GLOBALLY

• Currently there is a very high global demand from the Mining Industry for BEV/E UG units.
• Sandvik now ramping up production to cope with the high demand seen.
• Sandvik BEV/E units are produced at our production units in USA, Canada and Finland.
• Sandvik has our own battery technology through our acquisition of Artisan (USA) in 2019, strong focus on UG mine safety.

3 DRIVERS FOR ELECTRIFICATION IN MINING

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COOPERATION AGREEMENT (LOI)

Signed November 2022 with purpose to:

• Build a long-term development plan with clear targets for a successful relationship
• Develop the work process for the next phases
• Establish a clear fleet
• Commit jointly to determine the need for training and education for Rana Gruber's personnel
• Bring up Product and Application development needs together

• During 2022 a Trans4Mine* study is being carried out together with Rana Gruber for the existing mine and the planed new mine level. This study will result in a proposed proposed UG fleet of needed Battery Electric Vehicles

*Trans4Mine's purpose is to assist strategic customers realize best practice and sustainable safety, cost and productivity benefits and performances within their operations.

Resources and Reserves

Stein Tore Liljenström COO of Rana Gruber

10 November

Vast resources and reserves enabling decades of production

Total estimated resources and reserves of iron ore

(Million metric tons)

Existing infrastructure sufficient for long-term mine plan

Map of deposits

Dunderland Valley, Norway

Coffee break

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Key market drivers

Leon Davies

Sustainability and Atlantic Customer Lead of Cargill Metals

10 November

Rana Gruber Investor Presentation

Leon Davies

Atlantic Customer Lead and Global Sustainability Lead

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.

Disclaimer

This information has been prepared on a strictly confidential basis by Cargill International Trading Pte Ltd ("Cargill") and may neither be reproduced in whole nor in part, nor may any of its contents be divulged to any third party without the prior written consent of Cargill.

This information is not intended to, and does not, create legal relations and is not binding on Cargill under any circumstances whatsoever and may not be relied upon in any circumstances whatsoever without the prior written consent of Cargill.

This information has been prepared in good faith and is based on information obtained from sources believed to be reliable. However Cargill does not make any representation or warranty that it is accurate, complete or up to date.

This information may be based on certain assumptions or market conditions. If those assumptions or market conditions change, the information may change.

Nothing in this information should be construed as legal, financial, accounting, tax or other advice.

• END

Working in 70 countries

More than 155 years of experience in global commodities markets 155K Over 40

years insight in ferrous industry

A trusted partner for food, agriculture, financial and industrial customers in more than 125 countries.

Agriculture Food

Animal nutrition and protein

Financial and industrial

Iron Ore Market Today

Themes Driving Price Actions

• China Market sentiment
  • China Covid Policy, Real Estate, energy crisis
• Steel production (Ore Demand)
  • Capacity utilization, margin, energy cost impact
• Iron ore supply
  • Inventories in China
  • Supply side disruptions

China

• Zero covid policy of Chinese central government has been pursued through 2022
• Government tones: no immediate change regarding stimulus and importance to stabilize economy
• Property sector remains weak and October data

Steel Production (Ore Demand)

• The steel industry has been in a negative stage of the cycle through 2022;
• Profits for steel mills in China are small or breakeven. Capacity utilization (CU) is low;
• Non-China steel market is also weak, with steel sales in automobile, construction, and other industries under pressure;
• European gas prices have fallen, releasing some pressure from ferrous supply chain but remain a significant cost component.

Iron Production and Shipments (Ore Supply)

Longer Term Market Themes

The Journey

Pre-2000 Industrial Era

2010~2020 The Commodity Era

2000~2010 Super Cycle Era

The future is uncertain…

Geopolitical uncertainty

COVID Climate change

Resources security

3 Emerging Themes

Cargill believes will shape the world in next 5-10 years

Need for green & transparent supply chains

Value chains converging around carbon Shortage of "green steel"

Financial update

Erlend Høyen CFO of Rana Gruber 10 November

Financial targets for value-creation remain firm

1	Continued focus on efficient operations
2	Low financial leverage
3	Strong cash generation
4	Fully fund capex through operations
5	Attractive dividend policy

Continued focus on cost efficiency in an inflationary environment

¹2020 and 2021 figures are based on NGAAP, 2022 figures are based on IFRS.

Solid financial position

Development in long term debt

(Bank debt and credit facility NOKm)

Solid balance sheet (Equity ratio at 30 September 2022)

100 45.5%

Financial position enables investing in the business and growth

Capex plan for Fe65 and M40 projects (NOK million)

Attractive dividends remain paramount

Consistent track-record of shareholder return

(Dividend per share NOK)

16.47 More than NOK 600 million paid out in dividends since admission for trading in 2021

Aim to pay out 50-70 per cent of adjusted net profit* each quarter

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

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* According 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 and currency, which does not impact the shipments concluded in the quarter. The board of directors can also adjust for extraordinary events which do not count as being part of the company's core business.

A closer look at price mechanism and booking of revenues I

Final price settled three months after shipment has left Mo i Rana

Final price based on average spot price for the month in which the price will be settled, adjusted for cost of freight

Revenue booked at final date of reporting period, based on avg. fwd. price for settlement month, adjusted for expected cost of freight

A closer look at price mechanism and booking of revenues II

Illustrative example

(For educational purpose)

Q3			Q4			Booked revenue for Q3
July	August	September	October	November	December
Shipment 1							Revenue booked at 30/9, based on average forward price for October
						Revenue booked at 30/9, based on average forward price for October
Shipment 2
						Revenue booked at 30/9, based on average forward price for November
	Shipment 3
						Revenue booked at 30/9, based on average forward price for November
	Shipment 4
						Revenue booked at 30/9, based on average forward price for December
		Shipment 5
						Revenue booked at 30/9, based on average forward price for December
		Shipment 6

A closer look at hedging positions

Key hedging assessment criteria

Hedging iron ore and FX to secure sustainable and stable cash flow

Hedging policy: maximum 50 per cent of the annual production volume, for a period of up to 24 months

According to IFRS, changes in the portfolio value is included in the P&L under net financial income/expenses

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Contact: ir@ranagruber.no

On track with strategic projects

Vast resources and reserves

Solid financial position