KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Investor Presentation (April 2015)
28 slides from KEFI Gold and Copper's investor presentation, April 2015
Slide 1: Emerging Gold Producer in the Arabian-Nubian Shield
EMERGING GOLD PRODUCER IN THE ARABIAN‐NUBIAN SHIELD INVESTOR UPDATE April 2015
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: Overview
OVERVIEW Focused on gold and copper in the highly prospective Arabian‐Nubian Shield Ethiopia: 100% of KEFI Minerals Ethiopia (KME), which has 100% ownership of Tulu Kapi, with Gov’t right to 5% free carry o Acquired Tulu Kapi project in December 2013 and have improved economics o Planned initial gol
Slide 4: Assets in the Arabian-Nubian Shield
ASSETS IN THE ARABIAN‐NUBIAN SHIELD • IPO on AIM in Dec 2006. Equity financings of c. $25M to test opportunities in Africa and Middle East • Nearly 2,000km2 Exploration Licences (EL) granted or under application in the Arabian‐Nubian Shield • 1st prod’n to be from Tulu Kapi, target ramp‐up productio
Slide 5: Directors of KEFI Group Companies
DIRECTORS OF KEFI GROUP COMPANIES FOUR WITH KEFI SINCE FOUNDING IN 2006 Ian Plimer Harry Anagnostaras-Adams Non-Executive Deputy Chairman Executive Chairman Numerous geology Professorships including Founder or co‐founder Citicorp Capital Investors Newcastle, Melbourne, Munich and Adelaide Australia,
Slide 6: Experienced Development Team
EXPERIENCED DEVELOPMENT TEAM Kebede Belete Country Manager Ethiopia Fabio Granitzio Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). Exploration Manager Over 25 years of experience working in exploration Geologist (PhD. Cagliari, Italy). Track record of gold projects as Exploration Manager and Co
Slide 7: Experienced Specialist Consultants
EXPERIENCED SPECIALIST CONSULTANTS SENET SNOWDEN Ore Processing and Assembly of DFS 2015 Mineral Resources and Ore Reserves EPOCH CUBE CONSULTING Tailings Management Grade control and Optimisation GOLDER ENDEAVOUR FINANCIAL Environmental and Social Impact Project Finance Adviser and Arranger 7
Slide 8: Ethiopia Tulu Kapi Gold Project
ETHIOPIA TULU KAPI GOLD PROJECT
Slide 9: Ethiopia: Thriving Economy, Prioritised Mining Sector
ETHIOPIA: THRIVING ECONOMY PRIORITISED MINING SECTOR • 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 footprint is greater than Spain and France combined, population over 90M • Divers
Slide 10: Progressing Our Most Advanced Project Tulu Kapi, Ethiopia
PROGRESSING OUR MOST ADVANCED PROJECT TULU KAPI, ETHIOPIA On track for development to commence in 2015, leading to commissioning by end of 2016 and production in 2017 • Capex has been successfully reduced (all numbers now include working capital): • $289M: previous owner’s independent DFS (2012), ba
Slide 11: Mining Agreement, Mining Licence and Major Permits
MINING AGREEMENT MINING LICENCE AND MAJOR PERMITS • Mining Agreement includes: • Fiscal arrangements: income tax rate for mining 25%, royalty of 7%, entitlement to deduct historical and future capital expenditure, and 5% Government free‐carried interest. Stabilisation of fiscal arrangement to protec
Slide 12: Comparison of Project Parameters Tulu Kapi, Ethiopia
COMPARISON OF PROJECT PARAMETERS TULU KAPI, ETHIOPIA KEFI APR 15 KEFI APR 15 KEFI SEP 14 KEFI DEC 13 VENDOR Economic Outputs (5) REVIEWED OWNER‐MINER OWNER‐MINER OWNER‐MINER OWNER‐MINER & ADJ. FOR REVIEWED REVIEWED PRELIM EST DFS 2012 CONTRACT MINER Total Investment (1) $120M $143M $150M $163M $289M
Slide 13: Tulu Kapi Open Pit
TULU KAPI OPEN PIT MOST MINERALISATION IN INDICATED CATEGORY 13
Slide 14: Tulu Kapi: Mining Licence Area and Site Layout
TULU KAPI: MINING LICENCE AREA AND SITE LAYOUT Granted Mining Licence area, after KEFI reduced and Previously planned licence area and site layout, prior sculpted the area to minimise haulage distances, to KEFI acquisition of Tulu Kapi environmental impact and community disruption 14
Slide 15: High-Grade Below Tulu Kapi Open Pit
HIGH‐GRADE BELOW TULU KAPI OPEN PIT FOR FUTURE UNDERGROUND DEVELOPMENT 15
Slide 16: Tulu Kapi: Planned Milestones
TULU KAPI: PLANNED MILESTONES Q2‐15: • Complete updated DFS • Complete assessment of value‐enhancing initiatives (contract‐mining and pre‐existing plants) • Project financiers to conduct Technical Audit of plans and trigger credit approvals Q3‐15 • Optimise project funding • Arrange full development
Slide 17: KEFI Saudi Arabia Minerals
KEFI SAUDI ARABIA MINERALS
Slide 18: The Kingdom of Saudi Arabia
THE KINGDOM OF SAUDI ARABIA • Saudi Arabia is largely unexplored with few companies exploring for gold • G&M (KEFI 40%, ARTAR 60%) – Saudi partner, Abdul Rahman Saad Al Rashid & Sons (ARTAR) – a major local group providing administrative, logistical, financial support. Also 4% owner of KEFI • G&M ha
Slide 19: Jibal Qutman - Gold Discovery
JIBAL QUTMAN ‐ GOLD DISCOVERY A SET OF SHALLOW OPEN PITS • c. 99km2 EL was granted in July 2012 • Rapidly delineated initial JORC Resource in 2013 • Resource increased to 0.63Moz in 2014 • Mineralisation in 6 areas: Main, South, West, 3K Hill, 4K Hill, Red Hill • Ongoing exploration to delineate fur
Slide 20: Low-Cost Heap Leach for Jibal Qutman
LOW‐COST HEAP LEACH FOR JIBAL QUTMAN ADDED 4 NEARBY EL APPLICATIONS Development Studies on Jibal Qutman: PFS completed in March 2014 based on CIL processing plant Now focusing on heap leaching shallow oxide gold ore to lower capex, speed up the timetable, and allow more open‐pit oxide discoveries to
Slide 21: Hawiah Exploration Licence Recently Granted, With Rapid Progress
HAWIAH EXPLORATION LICENCE RECENTLY GRANTED, WITH RAPID PROGRESS • New c. 95km2 Hawiah EL granted in Dec 2014 • Hosted in +120km north‐south trending Wadi Bidah VHMS Mineral district • Gold‐bearing gossans at surface and potential for underlying Cu‐ Au‐Zn indicates VHMS massive sulphide orebodies •
Slide 22: Hawiah: SP Geophysical Survey
HAWIAH: SP GEOPHYSICAL SURVEY RESULTS SUPPORT INTERPRETED POTENTIAL METAL‐BEARING BODY BELOW GOSSAN Gossanous VHMS outcrops open to the north SP survey area to date 22
Slide 23: Hawiah: SP Geophysical Survey Outline of Large Potential Metal-Bearing Body
HAWIAH: SP GEOPHYSICAL SURVEY OUTLINE OF LARGE POTENTIAL METAL‐BEARING BODY 3D Long Section of Hawiah Self‐Potential Anomaly 23
Slide 24: Summary
SUMMARY Focused on gold and copper in the highly prospective Arabian‐Nubian Shield Ethiopia: 100% of KEFI Minerals Ethiopia (KME) with Gov’t right to 5% free carry o At $1,250/oz: o EBITDA c. $36M to $38M p.a. ungeared for 13 years o IRR c. 27% to 63% (after tax) ungeared to geared cases o At $1,100
Slide 25: Contacts
CONTACTS Harry Anagnostaras‐Adams, Executive Chairman Mobile: +357 99457843 Jeff Rayner, Exploration Director Wayne Nicoletto, Group Head of Operations England ‐ Registered office Cyprus ‐ Group corporate team Ethiopia ‐ Development and exploration teams Saudi Arabia ‐ Exploration team Turkey ‐ Supp
Slide 26: Appendix - Tulu Kapi Resources and Reserves
APPENDIX – TULU KAPI RESOURCES AND RESERVES Probable Ore Reserve for Tulu Kapi (Estimated in April 2015) Probable Cut‐off Tonnes Gold Contained Gold Reserve (g/t gold) (millions) (g/t) (million ounces) High Grade 0.9 12.0 2.52 0.98 Low Grade 0.5 3.3 0.73 0.08 Total 15.4 2.12 1.05 Note: Mineral Resou
Slide 27: Appendix - Jibal Qutman Mineral Resources
APPENDIX – JIBAL QUTMAN MINERAL RESOURCES Mineral Resources for Jibal Qutman Estimate Category Tonnes Gold Contained Gold (millions) (g/t) ('000 ounces) March Indicated 14.4 0.94 435 2014 Inferred 2.3 0.81 60 (JORC) Sub‐Total 16.7 0.92 495 November 2014 Inferred 5.3 0.81 138 (non JORC) Grand Total 2
Slide 28: Appendix - Competent Persons Statement
APPENDIX – COMPETENT PERSONS STATEMENT The information in this presentation that relates to exploration results, Mineral Resources and Ore Reserves is based on information compiled by Mr Jeffrey Rayner. He is the Exploration Director of KEFI Minerals and a Member of the Australasian Institute of Min