KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Shareholder Meeting (June 2014)
33 slides from KEFI Gold and Copper's shareholder meeting presentation, Jun 23, 2014
Slide 1: Emerging Gold Producer in the Arabian-Nubian Shield
EMERGING GOLD PRODUCER IN THE ARABIAN-NUBIAN SHIELD AGM 2014 23 June 2014
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accord
Slide 3: KEFI in the Arabian-Nubian Shield
KEFI IN THE ARABIAN-NUBIAN SHIELD • Arabian-Nubian Shield (ANS) is similar to Precambrian shields of Australia and Canada, but under-explored • ANS runs from Israel in north to Ethiopia in south, undelying much of Jordan, Egypt, Saudi Arabia, Sudan, Eritrea, Yemen and Somalia • KEFI is focussed on A
Slide 4: Asset Overview
ASSET OVERVIEW Ethiopia Highlights • KEFI acquired 75% of Tulu Kapi for £4.5m (Dec 2013) • June 2014: conditional agreement with Nyota Minerals Limited to acquire remaining 25% of the issued share capital of KEFI Minerals (Ethiopia) Limited • Ministry of Mines has renewed the exploration licence at
Slide 5: Rapid Progress in 2014
RAPID PROGRESS IN 2014 Since acquiring 75% of Tulu Kapi in December, KEFI has: • Formalised three-year payment agreement with government on inherited VAT liability • Increased Indicated Resource by +60% to 1.9Moz • Refined selective mining strategy to increase gold production and grade • Triggered t
Slide 6: KEFI Share Price Comparisons
llKEFI SHARE PRICE COMPARISONS KEFI share price since IPO indexed to key gold indices and KEFI (JORC) gold resources growth in KSA & Ethiopia 3 3000000 2.5 2500000 2 2000000 1.5 1500000 1 1000000 0.5 500000 0 0 12/06 03/07 06/07 09/07 12/07 03/08 06/08 09/08 12/08 03/09 06/09 09/09 12/09 03/10 06/10
Slide 7: Peer Group Comparisons
PEER GROUP COMPARISONS Mine Life C1 Costs Capex Market Project Country Status IRR @ Kozpa (US$/oz) (US$M) Cap* 12 yrs Amara Mining Yaoure Cote d'Ivoire PEA 32% 598 408 £37M @325 21 yrs Belo Sun Mining Volta Grande Brazil PEA 16% 715 329 C$54M @167 7 yrs Premier Gold Mines Brookbank Canada PEA 31% 62
Slide 8: Ethiopia
KEFI MINERALS ETHIOPIA
Slide 9: Ethiopia: Thriving Economy & Mining Sector
ETHIOPIA: THRIVING ECONOMY & MINING SECTOR • Fastest growing non-energy economy in Africa, 2nd largest population in Africa (+80m) • Dynamic economy: GDP grew by 8.5% over the past 5 years, and over 7.1% in 2013. Main economic partners: China, Germany, Saudi Arabia, USA, Belgium. Ethiopia’s land foo
Slide 10: Tulu Kapi: Revised Development Strategy Reduces Capex & Opex
TULU KAPI: REVISED DEVELOPMENT STRATEGY REDUCES CAPEX & OPEX Revised development strategy includes: • Selective mining of the orebody to: o Reduce pit size and associated waste:ore ratio o Increase Head Grade from 1.8g/t to c. 2.3 g/t Au • Reduce original 2Mtpa plant to ≈1.2Mtpa, targeting halving o
Slide 11: Comparison of Original & Proposed Project Parameters
COMPARISON OF ORIGINAL & PROPOSED PROJECT PARAMETERS Difference Nyota KEFI’s Dec 2013 Impact DFS Prelim estimates* Reduces funding requirements and increases Capex $289m ≈$143m ROI (includes sustaining capital) Head grade 1.8g/t Au 2.4g/t Au Increases revenue per tonne mined Mining rate 2Mtpa 1.2Mtp
Slide 12: Tulu Kapi: Switch to Selective Mining
TULU KAPI: SWITCH TO SELECTIVE MINING RED: KEFI preliminary pit outline (Dec 13) PURPLE: Nyota DFS pit outline (Dec 12) BROWN: KEFI preliminary pit outline (May 14) High-grade Au has underground mining potential Further potential lies beneath the planned open pit with high-grade intercepts that are
Slide 13: Tulu Kapi: Resource & Mine Plan Updated Since Acquisition
TULU KAPI: RESOURCE & MINE PLAN UPDATED SINCE ACQUISITION • Mar 2014: resource totaling 2,051,000oz Au (24.1Mt at 2.64g/t Au) • This estimate increased ounces in the Indicated category by 65% • 91% of the total resource now in the Indicated category Tonnes Au May 2014 Contained Au (Moz) (Mt) (g/t) I
Slide 14: Tulu Kapi: Updated Resources Give Higher Confidence
TULU KAPI: UPDATED RESOURCES GIVE HIGHER CONFIDENCE 2012 Green = Indicated Red = Inferred 2014 14
Slide 15: Tulu Kapi: Exploration Figures
TULU KAPI: EXPLORATION FIGURES • Infill drilling and trenching, performed in the last 4 months, with the aim to confirm the mineralisation model and increase density in “Kefi pit” area • Reverse circulation: 30 drillholes for a total of 4,285 m drilled • 56 trenches for a total of 1, 102 m • Results
Slide 16: Tulu Kapi: Gold
TULU KAPI: GOLD Gold in core from Gumi Prospect Visible gold grain in core 16
Slide 17: Tulu Kapi: Resources & Pit Review
TULU KAPI: RESOURCES & PIT REVIEW Nyota pit Kefi December pit KEFI is now refining project parameters ahead of the revised DFS due at year end Kefi May pit 17
Slide 18: Tulu Kapi: Resources & Pit Review
TULU KAPI: RESOURCES & PIT REVIEW KEFI preliminary pit outline (Dec 13) Nyota DFS pit outline (Dec 12) KEFI preliminary pit outline (May 14) Potential underground mine 18
Slide 19: Tulu Kapi: Resources & Pit Review
TULU KAPI: RESOURCES & PIT REVIEW Underground target close-up 19
Slide 20: Saudi Arabia
KEFI MINERALS SAUDI ARABIA
Slide 21: Kingdom of Saudi Arabia
KINGDOM OF SAUDI ARABIA • Saudi Arabia is looking to expand and develop its mineral sector, diversifying the country’s revenues away from oil by implementing new mining code • Saudi Arabia is largely unexplored with few companies exploring for gold • Few western mining companies operating in the cou
Slide 22: KEFI in Saudi Arabia
KEFI IN SAUDI ARABIA • G&M (KEFI 40%, ARTAR 60%) – Strategic Saudi partner, Abdul Rahman Saad Al Rashid and Sons (ARTAR) - a major local group that provides administrative, logistical, financial support • G&M has a sizeable proprietary database for selective targeting in the ANS (containing historic
Slide 23: Licence Application Status in Saudi Arabia
LICENCE APPLICATION STATUS IN SAUDI ARABIA Exploration Initial DMMR Modify ELA as Technical Report DMMR Imara Arrange Date of Imara Committe Emir Approval/ Province DMMR Riyadh Approval Licence Review Required Submitted Committee Imara Meeting Meeting Disapproval Approval/ Finalisation Application M
Slide 24: Jibal Qutman: Rapidly Identified 0.5Moz Resource
JIBAL QUTMAN: RAPIDLY IDENTIFIED 0.5Moz RESOURCE • Mineralisation identified in five areas: Main Zone, South Zone, West Zone, 3K Hill and 4K Hill • Hosted in the +300km north-south trending Nabitah- Tathlith fault zone. Another area under evaluation is 5K Hill • The EL was granted in July 2012 and i
Slide 25: Jibal Qutman: Exploration Progress
JIBAL QUTMAN: EXPLORATION PROGRESS • Second phase reverse circulation programme in progress: 360 drillholes for a total of 34,500 m drilled • New trenching campaign in May 2014: 248 trenches, spaced 50m apart, 15,240 m • New area of mineralisation discovered: South Zone SSE extension and still open
Slide 26: Jibal Qutman: Resources Updated & Growing
JIBAL QUTMAN: RESOURCES UPDATED & GROWING Zone Tonnes Grade March 2014 Contained Au (ounces) (g/t Au) Main 2,169,070 0.99 69,030 West 6,531,750 0.89 186,188 South 2,924,909 0.79 74,073 Indicated 3KHill 2,649,290 1.19 101,262 4K Hill 140,828 1.06 4,785 Total 14,415,847 0.94 435,338 Main 557,159 0.78
Slide 27: PFS Completed March 2014 for Regulatory Review
PFS COMPLETED MARCH 2014 FOR REGULATORY REVIEW • Mining – Pit shell designs reviewed by AMC Consultants • Processing – Process flow diagrams and design criteria performed with in-house expertise • Engineering Design – Consultant HDO completed plant layout, major equipment list and bill of quantities
Slide 28: Jibal Qutman: AMC Pit Optimisation
JIBAL QUTMAN: AMC PIT OPTIMISATION 3K hill Pit Section Trace plan view and cross section 28
Slide 29: Jibal Qutman: AMC Pit Optimisation
JIBAL QUTMAN: AMC PIT OPTIMISATION 3K hill Pit 4K hill Pit Main/West Pits South Pit Main/West Pits 29
Slide 30: Summary
SUMMARY • Potential to be in production by 2016 and producing approx. 80Koz Au pa by 2017 • Emerging leader in the Arabian-Nubian Shield, comparable to the shields of Australia and Canada which host most of their gold production, but under-explored • Preserve All-in Costs at Tulu Kapi at $700/oz +/-
Slide 31: Board of Directors: Four with KEFI Since Founding in 2006
BOARD OF DIRECTORS: FOUR WITH KEFI SINCE FOUNDING IN 2006 Harry Anagnostaras-Adams Jeff Rayner Chairman Managing Director Founder or co-founder Citicorp Capital BSc (Hons) Geology. Over 27 years Investors Australia, Pilatus Capital, Australian experience; BHP Gold, Newcrest Mining in Gold Council, E
Slide 32: Experienced Development Team
EXPERIENCED DEVELOPMENT TEAM Fabio Granitzio Kebede Belete Exploration Manager Country Manager Ethiopia Geologist (PhD. Cagliari, Italy). Track record of gold Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). Over discoveries in Sardinia and Saudi Arabia. Over 16 years 25 years of experience worki
Slide 33: Contact Information
CONTACT INFORMATION Jeff Rayner Managing Director Mobile: +90 533 928 1913 or +966 535 004 480 Harry Anagnostaras-Adams Chairman Mobile: +357 99457843 England - Registered office Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Turkey - Suppo