2012-03-16 - Novadx Presentation (NEW)

8/2/2019 2012-03-16 - Novadx Presentation (NEW)

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C O R P O R A T E P R E S E N T A T I O NMarch 2012

V E N T U R E S CO R P.

TSX.V: NDX

US SYMBOL: NDXFF


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TS X - V : N D XFORWARD LOOKING STATEMENTS

This presentations contains "forward-looking information" that includes information relating to future events and future financial and operating performance,

including management's assessment of Novadxs and MCoals future outlook, potential financings, potential acquisitions and production. Specifically, this release

contains forward-looking information related MCoal's operations, permits, properties and future development of assets, reserves or production. Statements

included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and

are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as

amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes",

"intends", "estimates", "expects" and similar expressions. Forward-looking information should not be read as a guarantee of future performance or results and will

not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on

information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to

risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking

information. Important factors that could cause these differences include but are not limited to: pricing and assumptions and projections concerning reserves and/or resources in our mining operations; changes in contracted sales, changes in production or operations the business of the Company may suffer as a result of

uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide

demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the

ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines

on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; the Company's ability to secure additional financing;

the Company's ability to complete planned acquisitions; and general economic conditions. You should not put undue reliance on any forward-looking information.

We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward

looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be

drawn that we will make additional updates with respect to those or other forward-looking information.

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The Company cautions readers that forward-looking statements, including without limitation those relating to the

Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause

actual results to differ materially from those indicated in the forward-looking statements.


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TS X - V : N D XOVERVIEW

3

High quality, high margin metallurgical coal producer in the US.

Rosa Mine (AL)Producing ~10,000 tons per month fully contracted at $170-180 per ton (50% margin).

Rex Mine (TN)Initial 20,000 tons per month slated ~4 months from receiving wash plant permits.

Projected combined production of 400k tons in 2013 from the existing 2 mines. (~$20M EBITDA). Financed by 25% coal stream sold to Sandstorm Metals & Energy (TSXV: SND) for a US $30 million

upfront production payment.


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TS X - V : N D XMANAGEMENT

Neil MacDonald (BASc.)CEO & Director

18 years of experience in investment banking and involvement

in numerous financings. Prior to forming Novadx he held senior

positions with Raymond James Canada and Blackmont Capital

Corp and has served on several public company boards and is

a member of the TSX Venture Exchange local advisory

committee.

Robert Payne (BSc.)Chief Operating Officer

Senior coal mining professional with over 25 years of coal

mining, management and engineering experience in both

underground and surface coal mine development, operations,

production, safety and compliance.

Valerie Helsing (CPA, CMA, BA)

Chief Financial Officer

20 years of public practice experience and broad experience in

both Canadian and US accounting, audit, finance and regulatory

matters. She has served in senior financial positions with

several public companies in the mining and mineral exploration

industries.

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Gregory Saragas

Vice President, Finance

Previously held senior management positions with companies such as

Massey Energy, Debra Lynn Coals, and Nystar. While at Debra Lynn

Coals, Mr. Saragas managed day to day operations as Production

Manager, later advancing to CFO, where he was instrumental in

improving productivity and profitability. After leaving Debra Lynn Coals,

Mr. Saragas accepted a position of Regional CFO with Massey Energy.

Mark MillsMine Manager, Rex No. 1 Mine

30 years of mining experience in the central Appalachian coal fields.

With a background in underground, highwall and surface mining his

responsibilities have evolved from surveying, permitting, planning, mine

management, general manager, to senior management giving him a

wide range of experience in mine production, safety and compliance.

Randy YoungbloodMine Manager, Rosa Mine

35 years of experience in coal mining in Alabama. Randy has held

mine supervisory, coal sales and transportation management positions

with several coal companies including King Coal, Cullman Coal and

Reid Mining.

100+ Years Experience in Coal Operations


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TS X - V : N D XCORPORATE OVERVIEW

SHARE STRUCTURE

As at December 31, 2011

Issued & Outstanding 79,124,913

Warrants (average $0.24) 4,344,710

Options (average $0.34) 5,166,250

Convertible Debenture1 8,900,000

Fully Diluted 97,535,873

Management Ownership !13%

TSX-V Listing NDX

Market Cap. (March 16, 2012) $17M

1 Convertible at $0.30. 10% per annum. Expires 2014

1 YEAR CHART

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TS X - V : N D XOUR LOCATIONS

The Appalachian Basin is one of Americas leading Metallurgical Coal Regions

Source: US Geological Survey

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Rex Mine

Rosa Mine


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TS X - V : N D XROSA MINE:ALABAMA

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Currently producing and selling ~120,000 tons per year

Total resources support an estimated 10 year mine life

Coal in demand by coking coal & activated carbon markets

Rosa receives premium pricing at ~$175 per ton (50% margin)

Coal is auger mined and processed by wash plant located at mine.

Proven and probable 652,000 ton NI 43-101 compliant reserve being mined in Phase 1 of mineplan.1

Mine plan developed to increase production to 300,000 tons per year

1 Source: Sections 3.7 and 3.9 of the Technical Report on Phase 1 of Rosa Mine Coal Property byMcGehee Engineering Corporation, March 18, 2010


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TS X - V : N D XREX MINE: TENNESSEE

Fully permitted metallurgical coal mine stockpiling and selling raw coal Ramping to ~20,000 tons/month within 4 months of pending wash plant permits Total resources support an estimated 20+ year mine life Pending wash plant permits in final stages with the government Coal quality in demand by silicon metal markets and commands up to $190/ton NI43-101 proven and probable recoverable coal reserves of 11.3 million tons2 with an in-situ

measured and indicated coal resource of 38.1 million tons.

Ability to increase production to 720,000 tons per year

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2 Source: Independent data verification and evaluation of Rex Coal seam at Rex Mine No. 1conducted under the supervision of Mr. John Feddock, P.E. , Senior Vice President of Marshal

Miller & Associates Inc. January 31, 2012


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TS X - V : N D XCOAL MARKET

Novadx focuses its operations on high-grade hard coking coal forthe metallurgical and specialty markets.

Strong domestic growth forecasted in activated carbon andsilicon metals market through 2020.

Market includes silicon metal, aluminum, solar energy, special steelsand semi-conductors.

Metallurgical and specialty markets command much higherprices and produce better margins than thermal coal.

70% of all global steel production is reliant on metallurgical coalas a key component of the manufacturing process.

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TS X - V : N D XPRODUCTION & EBITDA PROFILE

Production(Thousand Tons) EBITDA

*

(Millions $)

* Net of Sandstorm Payments

10

0

200

400

600

800

1000

1200

2012 2013 2014 2015 2016

Rosa Mine Rex Upside Case

$0

$10

$20

$30

$40

$50

$60


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TS X - V : N D XMARKET COMPARABLES

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0

0.5

1

1.5

2

2.5

Cline Mining

Corp.

Xinergy Ltd. Corsa Coal

Corp.

Novadx

Ventures Inc.

EV/2013e EBITDA

2.0x

1.6x

1.9x

1.0x

$0.96

$0.84

$0.99

$0.34

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Cline Mining

Corp.

Xinergy Ltd. Corsa Coal Ltd. Novadx

Ventures Inc.

MC/Total Resources ($/ton)

Source: Jennings Coal Notes, March 5, 2012 Source: Jennings Coal Notes, March 5, 2012

Industry Average

1.8xIndustry Average

$0.93


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TS X - V : N D XSUMMARY

High quality, high margin domestic metallurgical coal producer

Management team with 100+ years of coal operational experience

Trading at 1.0x EV/2013e EBITDA, half of industry average

Potential to increase production to 1Mtpa from both assets

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TS X - V : N D X

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HEAD OFFICE

450 650 W. Georgia Street

PO Box 11599

Vancouver, BC V6B 4N8

Tel: 604.633.2776

Fax: 604.683.6564

[email protected]

www.novadx.com

INVESTOR RELATIONS

Kin Communications inc.

210 736 Granville Street

Vancouver, BC V6Z 1G3

Tel: 604.684.6730

Fax: 1.866.684.6730

[email protected]

www. kincommunications.com



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TS X - V : N D X

APPENDIX


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TS X - V : N D XOUR PRODUCT

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Novadx focuses its operations on on high-grade hard coal for the metallurgical andspecialty markets

Low Rank Coals

47%

Lignite

17%

Sub-Bituminous

47%

Hard Coal

53%

Bituminous

52%

Thermal Steam Coal

Anthracite

!1%

Moisture Content of Coal

Carbon Energy Content of Coal

Source: World Coal Institute

%ofWorldReserves

Largely powergeneration

Power generation, cement manufacture,& industrial uses

Manufacture ofiron & steel

Silicon MetalActivated

Carbon

Domestic / industrialincluding smokeless fuels


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TS X - V : N D XOUR MARKETS:METALLURGICAL COAL & STEEL

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Metallurgical Coal is vital for steel manufacturing

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70% of all global steel production is reliant on metallurgical coal as a key

component of the manufacturing process.

World crude steel production was 1.4 billion tonnes in 2010, which required

721 million tonnes of coking coal.

Coal demand is expected to increase through 2020.

Source: World Coal Institute

Did You Know?


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TS X - V : N D XOUR MARKETS: METALLURGICAL COAL & STEEL

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Global Production Of Steel And Coking Coal

Metallurgical coal vital for

steel manufacturing

2010 saw global production records forsteel and demand for coking coal

Largest coal users are China and Japan

Australia and USA are the largest cokingcoal exporting nations followed by Canada

0

200

400

600

800

10001200

1400

1600

1995 1997 1999 2001 2003 2005 2007 2009

Steel Coal

Source: World Coal Institute, Aperam


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TS X - V : N D XOUR MARKETS:ACTIVATED CARBON/COAL MARKET

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USES ACTIVATED CARBON MARKET

US is largest consumer of activatedcarbon products.

Market growth lead by USforecasted 13% per annum due to

more restrictive environmental

legislations.

Activated carbon (activated charcoal) has the strongest physical adsorptionforces or the highest volume of adsorbing porosity of any material known tomankind.

Water Treatment

Medical &

Pharmaceuticals

Food & Beverages

Air Purification

2012-03-16 - Novadx Presentation (NEW)

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