1. business and industrial
2. energy
3. coal

Copper Production.
Disciplined Growth.
Corporate Presentation  January 2015
NSU
NSU
TSX &
TSX
& MKT
NYSE
NYSE MKT
1
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 forwardlooking 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
.
2
Our strategy
Copper and zinc production, disciplined growth
Maximize
value of
Bisha
resources
Grow
through
district
exploration
Diversify
through merger or
acquisition
Sustain
Dividend
Responsible and Safe Operator
3
Results driven producer
Highly profitable and poised for growth


160 to 175 million lbs copper in concentrate
$0.25
C1 cash costs $1.20 to $1.40 per pound1
$0.20
EPS
≈$100 million returned to shareholders since 2011
$500
$0.15
$0.16 annualized dividend

$550
$0.10
$450
Working Capital
Delivered 2014 Results
Low cash cost copper production in 2015
$0.05
Growth through exploration & acquisition

Bisha District exploration to expand resources

Copper and/or gold acquisition for diversification
$-
$400
Q1

≈ $442M
in cash with no debt
1 As defined by Brook Hunt - see MD&A.
2 Three quarters through Q3 2014
All currency in USD unless noted otherwise
Q3
2014
Guidance
2014
Actual
Cu Produced
million lbs
180 – 200
196
C1 Cost / lb1
Lowest
quartile
$1.042
Management track record of success
Robust balance sheet to support growth
Q2
4
Track record of success
Managing and delivering results
Capital and operating delivery



Built and expanded Bisha on-time and under budget
Over $350 million in capital deployed
Operated Bisha 4 years delivering strong earnings and cash flow
Exploration success
8 years discovery to production at Bisha
Bisha Reserve Life +50%
Bisha District Resources +55%
50
Million tonnes
15
Mine Life, years

10
5
40
30
20
10
0
Feasibility Jan 2011
Depletion, yrs
Jul 2012 Dec 2013
Reserve Life, yrs
0
Feasibility Jan 2011
Inferred
Jul 2012 Dec 2013
M&I Resources
Resources and reserves (effective date Dec 31, 2013) are detailed in new release dated Feb 18 2014 and the supporting 43-101 report.
5
Operations
High grade, modern infrastructure,
and exploration potential
6
Low Cost Cu & Zn Production
Delivering operational and cost performance
2014 YTD Operating Results

196 million lbs to Dec 31 2014
Costs under control in 2014


$2.00
180-200 million lbs Cu guidance
Lowest quartile C1 cash costs1
$1.04 per lb sold to Sept 30 2014
2015 another strong year

160-175 million lbs Cu guidance at

C1 cash costs1 $1.20 to $1.40 per lb
C1 Cash Cost per Lb, US$1

200
$1.80
$1.60
150
$1.40
$1.20
$1.00
100
$0.80
$0.60
50
$0.40
Cu Production, million lbs
Delivered 2014 guidance
$0.20
$-
Q1
Q2
Q3
Q4
Cu Produced
39.7
47.4
56.4
53.0
Cu Price / lb
$3.01
$3.21
$2.98
TBD
C1 Cost / lb1
$0.98
$1.05
$1.07
TBD
All currency in USD
1.
C1 Cash Cost as defined by Brook Hunt,- see MD&A. Per pound of copper sold in the quarter
0
7
NORTH
High-grade copper and zinc
Combined Bisha & Harena Reserves (Effective December 31, 2013)
Zone
Tonnage
Copper
Supergene
7,400 kt
3.57 %
Primary
19,550 kt
1.00 %
Zinc
5.54 %
Gold
Silver
0.61 g/t
27 g/t
0.67 g/t
45 g/t
UPDATE COMING
IN Q1 2015
27.5Mt Reserves
Based on $2.90/lb Copper, $0.92/lb Zinc,
$1175/oz Gold and $20/oz Silver
Notes
M&I Resource –
Underground
Potential
Open at
Depth




All reserves are probable category
Qualified person for mineral reserves is Jay Melnyk P.Eng.
of AGP Mining Consultants Inc.
Please refer to February 18, 2014 News Release for detailed
assumptions pertaining to the above reserve estimate
Total includes small oxide reserve to be processed at end of
mine life.
1200 m
475 m
Bisha Main
Open Pit
8
Diversified production for 10+ years
Life of mine over 1.3 billion pounds of payable copper equivalent*
Copper Equivalent Payable Production*
Copper
Zinc
Gold
Silver
NSR
Revenue
mm lbs
LOM Payable Metals*
39%
200
48%
180
160
Copper
640 million lbs
Zinc
1.7 billion lbs
Gold
260,000 oz
Silver
9.3 million oz
5% 8%
140
120
100
80
60
40
20
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
* 43-101 Technical Report 2015-2025 - Cu $2.90/lb, Zn $0.92/lb, Au $1175/oz and Ag $20/oz Ownership 60% Nevsun and 40% ENAMCO (Eritrean National Mining Corp)
9
Bisha copper mine
ERITREA
To Europe

Established in 1998
Nevsun has been working in
Eritrea for 17 years
ERITREA
Bisha Mine

Port of Massawa
Committed to mining industry,
has contributed capital, and
honored all commitments
Asmara
To Asia

Copper Concentrate
trucked to Massawa
(340 km) for bulk export
Strong government support
Stable taxation and mining
regulation for over 20 years
Independence
1993
Politics
Single party state
Capital
Asmara
Population
6 million (2013 est.)
Culture
50% Islamic / 50% Christian
Currency (Nakfa)
Pegged to USD

Productive, bilingual, local
workforce
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
Generating sustainable
prosperity in Eritrea
Corporate Social Responsibility is
central to Nevsun’s business




Prioritization of hiring locals – 91% of the
workforce ≈ 1,100 strong
Training, training, training
Excellent safety record – zero lost time
injuries for over three years
Independent human rights assessment in
2014
 See 2013 CSR Report for more details
1212
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
1313
Zinc expansion project on-track
Over 1.7 billion pounds of payable zinc starting in 2016
New Zn
Con.
Storage
$89 million budget to add
zinc flotation, storage and
shipping capacity

New Zn Con.
Thickening

Spent ≈$12 and committed
≈ $31 million to Sept 30
On-time and budget
Over 3 billion pounds of
contained zinc in resource

On-site scope of zinc expansion project
UG mining study underway to
scope potential for mine-life
extension and further resource
to reserve conversion
14
Zinc supply gap going forward
Expected to drive zinc price in 2014 onwards




84% consumption to produce higher quality steels and alloys
Chinese imports driving demand since mid-1990s
Closure of several large zinc mines (Lisheen, Brunswick, etc.) and lack of new
projects and exploration investment
Wood Mackenzie forecasts 300kt production shortfall in 2016 and growing in
future years
Future zinc mine production vs supply (Mt contained Zn)
Zinc Supply
Gap
Existing production and
projects under construction
(includes Bisha)
Source: Metalgesellschaft, Wood Mackenzie and Glencore estimates – Sept 2014
Mine life
extensions
Probable
projects
15
Bisha District Exploration
TSX: NSU | NYSE MKT: NSU
16
Deposit & district growth potential
Strategic license position in Bisha District
Potential to increase VMS district tonnage through


Extending current deposits at depth and on strike
Adding new district deposits; only 4 to-date
VMS District Deposit Distribution
VMS District Size
District
Deposit Size – million tonnes *
160
5 km
Scale
Mine
140
120
100
80
Noranda District
Flin Flon District
>200Mt
>180Mt
Only 4 Bisha
deposits
60
40
20
Bisha Only
52Mt to date
Flin Flon District
Noranda District
18 deposits
25 deposits
0
1
2
3
4
5
6
7
8
* Total MI&I resources for district deposits Source: Company data.
9
10
11
12
13
14
15
Number of Deposits in District
16
17
18
19
20
21
22
23
24
25
17
Bisha VMS district exploration
2014 exploration success



Camp
27,000m drilling
New discovery at Aderat
High grade depth extension at Harena
RESOURCE
UPDATE COMING
FEBRUARY 2015
Ashelli
NORTH
NW Zone
Plant
Bisha Main
Favourable Horizon
Felsic Volcanic
Exploration Targets
Aderat
Harena
Bisha Licenses
Current Resource
Map scale is
approximate
Hambok
10 km to plant
Mogoraib River License
2015 exploration plans

Takewuda



25,000m drilling budgeted
Infill and step-outs at Harena
Bisha Main extension and on-strike
targets
Greenfield targets on Mogoraib River
License – Ashelli and Takewuda
20 km to plant
18
Harena extension drilling
Demonstrating exploration potential of Bisha District



RESOURCE
UPDATE COMING
FEBRUARY 2015
Highly altered rhyolite footwall indicative of much larger VMS system
Multiple down-dip high grade intersections in 2014 drilling
Downhole geophysics indicates further extensions are probable
A
1. For summary of 2014 Harena drilling, section location, additional sections and other details see December 17, 2014 news release
A
19
Corporate Overview
TSX: NSU | NYSE MKT: NSU
20
Directors & Management
Directors






R. Stuart Angus, Chairman
Ian Ashby
Cliff Davis
Robert Gayton
Gary German
Gerard Munera
Management








Cliff Davis, CEO
Tom Whelan, CFO
Frazer Bourchier, COO
Joe Giuffre, CLO
Scott Trebilcock, CDO
Peter Hardie, VP Finance
Peter Manojlovic, VP Exploration
Todd Romaine, VP CSR
Strong Bisha
Management Team
42% of our on-site senior
management are Eritrean
21
Strong holders & broad coverage
Analyst Coverage
Consensus Target:
C$5.40
1
Share Structure

BA-Merrill Lynch

Canaccord Capital

CIBC

Cormark
Average Daily Volume

Dundee
Price

Haywood Securities Inc. Market Cap

Paradigm Capital

RBC Capital Markets

Scotia Capital

TD Securities
 Blackrock ≈ 19%

UBS
 Vanguard 19%
As at December 31, 2014
Shares Outstanding
199.7M
Fully Diluted
211.8M
at Dec 31, 2014
at Dec 31, 2014
>1M
C$4.48
≈C$900M
Significant Share Holders
 Franklin Templeton
 Geologic
1.
Per Company data as at December 31, 2014
22
Investor Relations
Tel:
Toll free:
Email:
Web:
+1 604-684-6730
1-866-684-6730
[email protected]
www.nevsun.com
Copper Production
Disciplined Growth
TSX: NSU | NYSE MKT: NSU