Slide 1: EMED Mining Investor Presentation
PRIVATE & CONFIDENTIAL EMED Mining Investor Presentation JUNE 2015
Slide 2: Disclaimer
Disclaimer Please note that the information in this confidential document (“Presentation”) has yet to be announced or otherwise made public and as such constitutes relevant information for the purposes of section 118 of FSMA and non-public price sensitive information for the purposes of the Criminal
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) This Presentation contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserve
Slide 4: Investment Highlights
Investment Highlights FULLY FUNDED TO 7.5MTPA PRODUCTION AT RIO TINTO COPPER PROJECT1 – WELL IN EXCESS OF ORIGINAL 5MTPA PLANS AT LOWER COST ALL KEY PERMITS NOW RECEIVED TO COMMENCE PRODUCTION IN Q3 2015 MANAGEMENT TEAM WITH PROVEN PROJECT DEVELOPMENT AND OPERATING TRACK RECORD SUPPORTIVE ST
Slide 5: Key Management for Project Delivery
Key Management for Project Delivery ALBERTO ● Over 36 years’ experience operating and developing mining projects ● Graduate of the University of Oviedo, Spain with a degree in Mining Engineering LAVANDEIRA ADÁN ● As a Director of Samref Overseas S.A from 2007-2014, he represented the interests of on
Slide 6: Transaction Overview
Transaction Overview 6
Slide 7: Subscription, Placing and Open Offer
Subscription, Placing and Open Offer ● Investors: Trafigura Pte Ltd ("Trafigura"), Orion Mine Finance (Master) Fund I LP ("Orion") Yanggu Xiangguang Copper Co. Limited ("XGC") and Liberty Metals & Mining Holdings, LLC ("Liberty") (together, with their designated affiliates, the “Investors”) ● Equity
Slide 8: Sources & Uses
Sources & Uses COMMENTARY SOURCES & USES ● Behre Dolbear International completed an NI 43-101 compliant report on the Sources US$m EURm Rio Tinto project in February 2013 (the “Technical Report”) − Estimated planning and construction costs of US$199m to reach Subscription by Investors1 80 73 1,5 5.0
Slide 9: Pre and Post Transaction Shareholding
EMED Post Transaction HIGHLIGHTS PRE TRANSACTION Trafigura F 19.35% ULLY FUNDED TO 7.5MTPA PRODUCTION1 Other Orion S 51.91% 14.44% IGNIFICANT SUPPORT FROM MAJOR SHAREHOLDERS XGC 14.30% INCREASED BALANCE SHEET FLEXIBILITY WITH NO Shares outstanding: 1,439,865,948 Market cap. at Placing Price: £68
Slide 10: Rio Tinto Copper Project
Rio Tinto Copper Project 10
Slide 11: Introduction to Rio Tinto Copper Project
Introduction to Rio Tinto Copper Project OVERVIEW PROJECT LOCATION ● EMED Mining owns 100% of the Rio Tinto Copper Project through its wholly-owned subsidiary EMED Tartessus ● Past-producing open-pit copper mine in the Iberian Pyrite Belt, 65 km northwest of Seville ● Last operated in 2001, and plac
Slide 12: Infrastructure and Site Layout
Infrastructure and Site Layout ● 77km by truck on paved road to port at Huelva ● Power ― 24MW HV power connected in June 2015 ― Expected to be expanded in September to 31MW ― Company has requested up to 40MW from mid-2016 ● Water ― Approximately 5 million cubic metres of clean water is available ― A
Slide 13: Pit Design
Pit Design Open Pit Outline Cerro Colorado Resources W E W E Cerro Colorado San Antonio & Planes San Dionisio & Alfredo 13
Slide 14: Capital Costs
Capital Costs RECONCILIATION OF CURRENT CAPITAL COST ESTIMATE TO BEHRE DOLBEAR NI 43-101 REPORT 200 (24) Revised estimate from 150 US$50m targeted (62) capital expenditure reductions announced in Sept 2014 US$m 100 199 (31) 58 (44) 50 95 82 38 0 Phase 1: Original Phase 1: FX savings Phase 1: Cost Ph
Slide 15: Key Recent Developments
Key Recent Developments ● Unified Environmental Authorisation (AAU) permit granted ● Administrative standing permit granted (transmission of mineral rights) H1 2014 ● Government of Andalucía awards €8.8 million grant for development of Rio Tinto ● Plant refurbishment commences ● £13.1 million equity
Slide 16: Phase Progress
Phase 1 Progress 2 0 14 2 0 15 2 0 16 J F M A M J J A S O N D J F M A M J J A S O N D J F M Mile stone s Administrative Standing Mining contractor appointed Equipment pre- ordered Mining application TIMELINE TO Mining permit Finance in place COMPLETION Mining contractor mobilization Ramp up to comme
Slide 17: Refurbishment Progress
Refurbishment Progress Primary Crusher Control Room Primary Crusher: Apron Feeder fully refurbished Primary Crusher: Top Cover Plates installed Secondary / Tertiary Crusher Area: Replacement of side Screening Area: Refurbishment in progress, roof sheeting Fine Ore Stock refurbishment in progress she
Slide 18: Refurbishment Progress (cont'd)
Refurbishment Progress (cont’d) Milling Area: New cyclone clusters installed Rod Mill Feed Chute installed Rod Mill, sump, pump & piping installled First Cleaner Flotation Cells Rougher flotation Cells refurbished Flotation Area: piping in progress 18
Slide 19: Refurbishment Progress (cont'd)
Refurbishment Progress (cont’d) Concentrate thickener & filter press area Temporary 6.3kV Generators for Commissioning of Dry Section Electrical 132kv Switchyard Refurbished, Main Substation New Reagents Plant Construction Progress Laboratory Setup in progress 19
Slide 20: Optimisation and Expansion Opportunities
Optimisation and Expansion Opportunities ● Potential to expand reserve base – current 2P reserves (123Mt @ 0.49% Cu) are based on a US$2.00/lb pit shell, while M&I resources (200Mt @ 0.46% Cu) are based on a US$3.00/lb pit shell RESERVES/ ● Drilling programme to increase open pit reserves to support
Slide 21: Phase 1 Expansion and Phase 2
Phase 1 Expansion and Phase 2 PHASE 1 EXPANSION – 7.5MTPA PHASE 2 – 9.0-10.0MTPA 21
Slide 22: Concluding Thoughts
Concluding Thoughts 22
Slide 23: Conclusion
Conclusion FULLY FUNDED TO 7.5MTPA PRODUCTION AT RIO TINTO COPPER PROJECT1 – WELL IN EXCESS OF ORIGINAL 5MTPA PLANS AT LOWER COST ALL KEY PERMITS NOW RECEIVED TO COMMENCE PRODUCTION IN Q3 2015 MANAGEMENT TEAM WITH PROVEN PROJECT DEVELOPMENT AND OPERATING TRACK RECORD SUPPORTIVE STRATEGIC SHA
Slide 24: Appendix A Market Outlook & Positioning
Appendix A Market Outlook & Positioning 24
Slide 25: Copper Market Outlook
Copper Market Outlook KEY THEMES SPOT COPPER VS. LONG-TERM ANALYST CONSENSUS1 ● Supply expected to exceed demand in the short-term 5.0 4.5 2018 Long Term Consensus − 2015 surplus expected to be lower than previously Copper Price (US$/lb) 4.0 Price: US$3.17/lb anticipated following recent producer gu
Slide 26: Capital Efficiency and Cash Costs
Capital Efficiency and Cash Costs CAPITAL INTENSITY (US$/TONNE ANNUAL CU PRODUCTION) – GLOBAL DEVELOPMENT STAGE COPPER PROJECTS 35000 30000 Capital Intensity (US$/tpa) 25000 20000 15000 10000 5000 0 C1 CASH COSTS AFTER BY-PRODUCTS (US$/LB) – GLOBAL DEVELOPMENT STAGE COPPER PROJECTS 2.5 2 Cash Costs
Slide 27: Market Positioning
Market Positioning P/CONSENSUS TARGET PRICE (X) Reserves development/ Producers Pre-production/Feasibility Exploration 1.20 0.99 1.00 0.96 0.95 0.94 0.91 0.91 0.90 0.88 0.80 0.80 Average: 0.78x 0.80 0.77 0.76 0.66 0.64 0.63 0.58 0.60 0.60 0.58 0.55 0.52 0.50 Average: 0.52x 0.51 0.51 0.47 0.49 Averag
Slide 28: Appendix B Corporate Information
Appendix B Corporate Information 28
Slide 29: Corporate Snapshot
Corporate Snapshot OVERVIEW1 TOP 10 SHAREHOLDERS2 EMED Mining Public Limited Holder # shares % ISC Exchanges AIM (AIM:EMED) / TSX (TSE:EMD) Urion Mining International 278,594,997 19.35 Orion Mine Finance 207,954,787 14.44 Share price (27 May 2015) (GBp) 4.625p Hong Kong Xiangguang International Hold
Slide 30: Experienced Board & Management
Experienced Board & Management Executive Directors • Over 36 years’ experience operating and developing mining projects Alberto Lavandeira • Former President, CEO and COO of Rio Narcea Gold Mines, which built three mines including Aguablanca CEO (1995-2007) Non-Executive Directors Roger Davey • Over
Slide 31: Appendix C Transaction Impact – Further Detail
Appendix C Transaction Impact – Further Detail 31
Slide 32: Transaction Impact
Transaction Impact SHAREHOLDER STRUCTURE (POST TRANSACTION) Trafigura 100% Open Offer Liberty Orion Mine Urion Other XGC and Placing Minerals Finance Holdings 21.35% 6.16% 13.98% 21.93% 14.56% 22.01% EMED Mining KEFI Minerals Investor Description % ISC Public Ltd 5.40% Plc One of the world's largest
Slide 33: Transaction Impact (cont'd)
Transaction Impact (cont’d) KEY INVESTOR RIGHTS (POST TRANSACTION) Company Agreement Terms • Subscription • Pre-emptive right over further issues of equity shares 1 XGC Agreement • One board seat2 • Offtake Agreement • Offtake granted over 49.12% of life of mine reserves in the Technical Report Orio
Slide 34: Transaction Impact (cont'd)
Transaction Impact (cont’d) KEY INVESTOR RIGHTS (POST TRANSACTION) Company Agreement Terms • Exclusive agreement to provide agency services to Company on all concentrate sold Agency Agreement • For the first 932,000 dmt concentrate sales a base marketing fee of EUR11.25/dmt of concentrate sold is pa
Slide 35: Appendix D Rio Tinto Upside Potential
Appendix D Rio Tinto Upside Potential 35
Slide 36: District Potential
District Potential ● The Rio Tinto Copper Project is located at the eastern end of the highly prospective Iberian pyrite belt, which extends about 230km between Seville in the east and the Atlantic coast near Lisbon in the west ● Within the pyrite belt, there are 8 major mining areas ● In total, som
Slide 37: Rio Tinto Upside Potential
Rio Tinto Upside Potential COMMENTARY ● There is significant potential to expand the mineable resource at Rio Tinto Copper Project, which could support a throughput expansion or extend the operation’s mine life − The region is highly-prospective, being part of the world’s largest VMS system ● Curren
Slide 38: Rio Tinto Upside Potential (cont'd)
Rio Tinto Upside Potential (cont’d) Cu Pb Zn Ag Au SAN DIONISIO SECTION COPPER Historical Estimates Ore mmt % % % g/t g/t GRADES San Dionisio: 17.2 1.45 - - - - • Alfredo Stockwork San Dionisio: 45.0 0.88 - 2.20 26.0 0.4 • Massive Sulphide San Antonio 9.1 1.67 1.07 2.13 64.3 0.6 • Massive Sulphide 7