KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Investor Presentation (July 2016)
25 slides from KEFI Gold and Copper's investor presentation, Jul 13, 2016
Slide 1: Developing a +100,000 oz. p.a Gold Producer
Developing a +100,000 oz. p.a Gold Producer Then Expanding in the Arabian-Nubian Shield 13 JULY 2016
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers g
Slide 3: Corporate Overview
Corporate Overview At 9 July 2016 AIM code KEFI Share price - 12 mth 0.26p (low)/0.84p (high) Share price 0.53p Shares in issue 3.12 billion Market cap £17M (c. US$21M) Nomad SP Angel Brokers Brandon Hill Capital In Place Beaufort Securities Board of Directors In Place Key Shareholders (fully-dilute
Slide 4: Directors of KEFI Minerals plc
Directors of KEFI Minerals plc Harry Anagnostaras-Adams, Ian Plimer, Non-Executive. Executive Chairman Chairman, Exploration Review Founder or co-founder Citicorp Capital Investors Numerous geology Professorships. Past and Australia, Pilatus Capital, Australian Gold Council, present Directorships in
Slide 5: Tulu Kapi Development Team
Tulu Kapi Development Team Wayne Nicoletto Kebede Belete Chief Operating Officer Country Manager Ethiopia Managing Director, KEFI Minerals Ethiopia Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). 30 years as a metallurgist, general manager and Over 25 years of experience as Exploration Manager c
Slide 6: Emerging Gold Miner in Arabian-Nubian Shield
Emerging Gold Miner in Arabian-Nubian Shield KEFI in Ethiopia KEFI in Saudi Arabia 1st project on track to Joint venture with start commissioning respected Saudi production of c. 115,000 partner - KEFI has a oz pa Au by Q4 17 at 40% share in large Tulu Kapi open pit. exploration portfolio. Target to
Slide 7: Why Ethiopia?
Why Ethiopia? • Thriving economy, over 10 years of 7-10% GDP growth • HQ for African Union and stable • High growth country with pro-development culture • Government actively boosting mining sector • Prospective country with limited modern exploration • Rapidly improving infrastructure and cheap ele
Slide 8: On Track to Build the Tulu Kapi Gold Mine
On Track to Build the Tulu Kapi Gold Mine • 100% ownership with Ethiopian government entitled to 5% free carried interest Government confirmed equity investment of US$20m to increase total to c. 29% • 20 year full mining licence, renewable • Ore Reserve of 1.0 million ounces and Mineral Resources 1.
Slide 9: Tulu Kapi Compares Well with Peers
Tulu Kapi Compares Well with Peers KEFI’s market capitalisation does not Tulu Kapi is a low capital intensity mine reflect the quality of Tulu Kapi development 9
Slide 10: Tulu Kapi History
Tulu Kapi History 2013: KEFI acquired 75% for $10/ounce of Ore Reserves • Previous owners had spent >$50 million on drilling and studies • Development plan required capex of US$289 million 2014: KEFI acquired the remaining 25% of Tulu Kapi • KEFI transformed flexibility for mine planning by increasi
Slide 11: Tulu Kapi Independently Verified Open Pit Metrics
Tulu Kapi Independently Verified Open Pit Metrics Project Physicals Waste/ore ratio 7.5:1.0 Processing rate 1.5Mtpa Total ore processed 15.4Mt Average head grade 2.1g/t gold Gold recoveries 93% Annual steady-state gold production 115,000 ounces Total Life of Mine gold production 980,000 ounces Simpl
Slide 12: Tulu Kapi Independently Verified Open Pit Financials
Tulu Kapi Independently Verified Open Pit Financials Project Financials @ US$1,350/oz Targeted Sources of US$130M All-in Sustaining Costs US$751/oz Development Funding Required All-in Costs (incl initial capex) US$869/oz 8-year average annual EBITDA US$72M Net Cash after Debt Repayment (LOM) US$391M
Slide 13: Finance Plan
Finance Plan • US$50M Expenditure on Tulu Kapi to 31 Dec 15 • US$176M Capital required as from 1 Jan 16 on an owner operated basis, per 2015 DFS • US$140M Capital required after contracting with Ausdrill and Lycopodium • US$130M Capital required at financial completion Q4-16, after spending during 2
Slide 14: High-Grade Gold Below Tulu Kapi Open Pit
High-Grade Gold Below Tulu Kapi Open Pit For Future Underground Development SW NE Open pit contains Ore Reserve 15.4Mt @2.12g/t, containing 1.05Moz Mineable resource outside open pit 1.3Mt @ 5.2g/t Au containing 220Koz Gold mineralisation open at depth, along Resource blocks strike and down below op
Slide 15: Tulu Kapi Preliminary Economics of Underground Mine
Tulu Kapi Preliminary Economics of Underground Mine • Thick, high-grade gold zones below open pit • Underground mineable resource = 1.3Mt @ 5.2g/t • Preliminary studies based on current resource only show: • Open Pit + Underground production ≈ 150,000 oz p.a. • Additional NPV (8%) ≈ US$44M (at $1,35
Slide 16: Saudi Arabia (KEFI 40%) Large Exploration Portfolio
Saudi Arabia (KEFI 40%) Large Exploration Portfolio Jibal Qutman Hawiah • 0.7 Moz gold resource defined • Potential for very large Cu- at Jibal Qutman Au-Zn orebody • Evaluating low-cost, heap-leach • Gossan horizon extends 6 km treatment of oxide ore • Trenching indicates gold • Low capex & quick s
Slide 17: Key Short-Term Milestones
Key Short-Term Milestones Tulu Kapi, Ethiopia Jibal Qutman and Hawiah, Saudi Arabia H2-2016: H2-2016: • Financial Completion of Project Finance • Jibal Qutman – submit Mining Licence Application and • Implement community resettlement commence prospecting adjacent licences • Start construction • Hawi
Slide 18: Contacts
Contacts Harry Anagnostaras-Adams, Executive Chairman John Leach, Finance Director Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Email: info@kefi-minerals.com Website: www.kefi-minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli
Slide 19: Strong Independent Sign-Offs for DFS
STRONG INDEPENDENT SIGN-OFFS FOR DFS PLUS MICON AND ENVIRON AS BANKS’ ITE SENET SNOWDEN Ore Processing and Assembly of 2015 DFS Mineral Resources and Ore Reserves EPOCH CUBE CONSULTING Tailings Management Grade control and Optimisation GOLDER ENDEAVOUR FINANCIAL Environmental and Social Impact Proje
Slide 20: Improved Project Metrics Flowing from KEFI's Work
Improved Project Metrics Flowing from KEFI’s Work with Technical Experts and Project Contractors Previous 2015 Current Owner DFS Plan Projected capex and working capex US$289M US$130M US$110M Projected funding requirement after adding N.A N.A US$130M finance costs & cost-overrun facility Net project
Slide 21: Tulu Kapi Exploration Potential below Open Pit
Tulu Kapi Exploration Potential below Open Pit • Gold grades increase and ore lenses thicken with depth • Resource remains open along strike, down plunge and at depth • High-grade drill intercepts below the planned open pit include: Hole From To Mineralised Width Grade No. (m) (m) (m) (g/t Au) TKBH-
Slide 22: Ethiopia Prospects near Tulu Kapi
Ethiopia Prospects near Tulu Kapi Guji: Visible gold in drill Core 0 1km 2km Komto: Primary gold mineralisation Source: KEFI Minerals 22
Slide 23: Ethiopia Limited Modern Exploration
Ethiopia Limited Modern Exploration Arabian Nubian Shield: recognised as one of the most promising mineral districts for large gold and base metal discoveries Ethiopia has one single large-scale gold mine which is closing soon: Lege Dembi (Midroc Gold) 100Koz pa Apart from Tulu Kapi, large deposits
Slide 24: Saudi Arabia Jibal Qutman - Possible Development
Saudi Arabia Jibal Qutman - Possible Development • c.99km2 EL was granted in July 2012 • Rapidly delineated initial JORC Resource in 2013 • Resource increased to 0.73Moz in 2015 • Four ELAs around Jibal Qutman EL with satellite open pit targets • Delineating further shallow oxide gold but now suffic
Slide 25: Saudi Arabia Hawiah
Saudi Arabia Hawiah • New c. 95km2 Hawiah EL granted in Dec 2015 • Potential for very large Cu-Au-Zn VHMS orebodies • Hosted in +120km north-south trending Wadi Bidah Mineral district which hosts some large VHMS deposits • Analogs include Jabil Sayid (Barrick) and Bisha SP survey (Nevsun) area to da