Keras Resources PLC · LSE:KRS
Keras Resources — Ferrex — Investor Presentation (June 2013)
27 slides from Keras Resources's investor presentation, June 2013
Slide 1: Investor Presentation – June 2013 - Iron Ore and Manganese Development in Africa
Investor Presentation – June 2013 - Iron Ore and Manganese Development in Africa
Slide 2: Disclaimer
Iron ore and manganese development in Africa Disclaimer IMPORTANT INFORMATION These presentation slides and the accompanying verbal presentation (“Presentation Materials”) are being provided in connection with a marketing presentation by Ferrex Plc (the “Company”) and have been prepared by the Compa
Slide 3: Corporate Overview
Iron ore and manganese development in Africa Corporate Overview AIM quoted iron ore (‘Fe’) and manganese (‘Mn’’) development PROFILE company focussed in Africa Iron Ore: Mebaga, Gabon & Malelane, South Africa PROJECTS Manganese: Nayega, Togo & Leinster, South Africa To advance low capex deposits, cl
Slide 4: Proven Track Record in Africa
Iron ore and manganese development in Africa Proven Track Record in Africa “The Board has a proven record of building value for shareholders through developing assets into production and successfully completing trade sales” Feasibility Studies Completed and Mines Developed Eureka Gold Mine, Zimbab
Slide 5: Market & Demand
Iron ore and manganese development in Africa Market & Demand Iron ore and manganese are the two main ingredients in steel making BHP Billiton, Rio Tinto and Vale currently control 75% of the seaborne iron ore trade Long term iron ore demand and price is supported by: Demand growth driven fro
Slide 6: Corporate Structure
Iron ore and manganese development in Africa Corporate Structure * 6
Slide 7: Nayega Manganese Project - Togo
Iron ore and manganese development in Africa Nayega Manganese Project - Togo Land Position Indicated Resource 92,390 ha 7.3Mt @ 14.7% 5 exploration licences in northern Togo Mn Low Capex Low Opex US$15m US$2/dmtu FOB Initial estimate for 250,000 Initial estimate for 250,000 tpa production tpa produc
Slide 8: Nayega Manganese Project - Togo: Fast-tracking to Development
Iron ore and manganese development in Africa Nayega Manganese Project - Togo Fast-tracking to Development Focussed on developing an open pit, zero strip mining operation Metallurgical test work has illustrated that a simple beneficiation route using washing, screening and gravity can be used to
Slide 9: Iron Ore Provinces of West and Central Africa
Iron ore and manganese development in Africa Iron Ore Provinces of West and Central Africa There are two main iron provinces in Sub-Saharan Africa West Africa: including Guinea, Liberia and Sierra Leone Central Africa: including Gabon, Cameroon and Republic of Congo Both provinces are in pro
Slide 10: Iron Ore Provinces of West and Central Africa
Iron ore and manganese development in Africa Iron Ore Provinces of West and Central Africa Central Africa 2013 producers Republic of Congo: Mayoko Exxaro Near term producers Mebaga – Ferrex Plc Mayoko – Equatorial Resources Deposits requiring capital intensive infrastructure to unlock pr
Slide 11: Infrastructure Key to Unlocking Production
Iron ore and manganese development in Africa Infrastructure Key to Unlocking Production All of the projects currently in production, or about to move into production had existing infrastructure in place to some degree Tonkolili utilised existing rail and port facilities Marampa is exploiting a
Slide 12: Mebaga DSO Iron Ore Project - Gabon
Iron ore and manganese development in Africa Mebaga DSO Iron Ore Project - Gabon Land Position High Grade Zone 309 sq km 1.8km strike 82 per cent. Holding Identified by historical work by BRGM DSO Grade Initial mapping results 20Mt @ 60% Fe return up to 68% Fe ‘Exploration Target’ Proximity to Infra
Slide 13: Mebaga Iron Ore – Exploration Programme
Iron ore and manganese development in Africa Mebaga Iron Ore – Exploration Programme Previous deep pitting results by BRGM include: 27m @ 58.4% Fe* 18.5m @ 57.5% Fe* 10.5m @ 61.4% Fe* *Mineralisation was still open at the base of all these pits Reconnaissance and detailed geological mapp
Slide 14: Exploration Upside
Iron ore and manganese development in Africa Exploration Upside New Exploration Target based on aeromag interpretation underway Located old Rio data that suggests DSO material exists to the East of the current drill area Mapping now underway in this area 14
Slide 15: Scoping Study and Infrastructure
Iron ore and manganese development in Africa Scoping Study and Infrastructure Gabon has excellent infrastructure Sealed Highway 30km from site New 90kV power line located 30km from site to be fed by new 52MW hydro scheme currently under construction Trans Gabon rail, built for 10mtpa, curren
Slide 16: Mebaga Iron Ore Peer Comparison
Iron ore and manganese development in Africa Mebaga Iron Ore Peer Comparison Company Exchange Location Comments Resource/ Market Cap EV/t Exploration Target (GBP)* Contained Fe (GBP) BC Iron ASX Australia In Production 81mt @ 54% 320 million 7.32 @ 4 mtpa African iron Republic of Congo Takeover 2012
Slide 17: Malelane Iron Ore Project – South Africa
Iron ore and manganese development in Africa Malelane Iron Ore Project – South Africa Inferred Resource Exploration Target 139Mt @ 37% Fe 775 - 930Mt Modelled on 1.1km of 14km 34 – 36% Fe NPV US$523m (10%) CAPEX US$139m & IRR of 72% OPEX US$53.5/t FOB (pre tax) Proximity to Infrastructure 6km and 17
Slide 18: Malelane Iron Ore Project - Geology
Iron ore and manganese development in Africa Malelane Iron Ore Project - Geology Malelane Inferred Resource at various cut-offs Cut- Tonnes Fe CaFe Al2O3 SiO2 P S LOI Off (m) % % % % % % 1000 (%) 50 4.9 52.2 56.7 1.4 10.8 0.08 0.018 8.0 40 50.9 44.3 47.7 2.0 22.3 0.07 0.020 7.3 20 138.9 36.9 40.1 4.
Slide 19: Malelane Scoping Study Results & Development
Iron ore and manganese development in Africa Malelane Scoping Study Results & Development Pre-Feasibility Study Drill programme and preliminary metallurgical Project Upside testwork confirmed potential for low capex iron-ore Starter DSO operation development at Malelane Further detailed geolog
Slide 20: Malelane Capital Intensity
Iron ore and manganese development in Africa Malelane Capital Intensity Adriana Lac Otelnuk Grange Resources Southdown Gindalbie Karara BHP Billiton Outer harbour expansion Macarthur Minerals Lake Giles Aquila West Pilbara Black Iron Shymanivske ArcelorMittal Mont Wright Oceanic Hopes Advance New Mi
Slide 21: Leinster Manganese – South Africa
Iron ore and manganese development in Africa Leinster Manganese – South Africa Land position of 47,004 ha over 10 farms 20km from Aquila's Avontuur Project (147.8Mt @ 38.2% Mn) Anglo American drilled 51 holes (1977-1988) Exploration target 5.5 -8.7Mt @28.6 – 31.3% Mn (Coffey Mining) Known deposit op
Slide 22: Portfolio - Key Milestones
Iron ore and manganese development in Africa Portfolio - Key Milestones Completed Milestones 2013 Value Drivers Nayega Manganese Project – Togo Nayega Manganese Project – Togo Resource defined 7.3Mt at 14.7% Secure exploitation permit Positive economics calculated – low capex and Complet
Slide 23: Development Summary
Iron ore and manganese development in Africa Development Summary Establishing its position as a leading low-capex iron ore and manganese exploration and development company with near-term production potential in Africa Nayega Early cashflow to fund and develop iron ore portfolio in Togo Africa Mebag
Slide 24: Key Data
Iron ore and manganese development in Africa Key Data MARKET AIM 12 MONTH HIGH/LOW 2.50/ 1.125p TICKER FRX SHARES IN ISSUE 805,179,963 SHARE PRICE 1.28p (29.05.13) NOMAD finnCap MARKET CAP £10.31m (29.03513) BROKER finnCap Shareholder Analysis Share Price 20.71% Shareholders 10%<>15% 47.02% 10.78% S
Slide 25: Contacts
Iron ore and manganese development in Africa Contacts Dave Reeves Felicity Edwards/ Elisabeth Cowell Ferrex PLC St Brides Email: dave@ferrexplc.com Email: felicity@sbmf.co.uk elisabeth@sbmf.co.uk T: +44 (0)207 236 1177 Elizabeth Johnson/ Joanna Weaving FinnCap Limited T: +44 (0)20 7220 0500 25
Slide 26: Appendix - Board
Iron ore and manganese development in Africa Appendix - Board Brian Moritz Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Non-Executive Chairman Thornton’s Capital Markets Team which floated over 100 companies on AIM under his chairmanship. In 19
Slide 27: Appendix - Management Team
Iron ore and manganese development in Africa Appendix - Management Team Mark Styles Mark is a geologist with a first class honours degree obtained from the University of Western Exploration Manager Australia and 20 years experience in exploration and project management worldwide. His experience cove