Ecora Royalties Plc · LSE:ECOR
Ecora Royalties — Anglo Pacific Group — Merger or Acquisition (August 2019)
14 slides from Ecora Royalties's merger presentation, August 2019
Slide 1: Mantos Blancos Royalty Acquisition
Anglo Pacific Group PLC MANTOS BLANCOS ROYALTY ACQUISITION August 2019
Slide 2: Important Disclaimer
2 IMPORTANT DISCLAIMER Certain statements in this presentation, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Company’s expectations and views of future events. Forward- looking statements (which include the phrase ‘forward-look
Slide 3: Transaction Summary
3 TRANSACTION SUMMARY THE MANTOS BLANCOS ROYALTY ACQUISITION • Anglo Pacific Group PLC (“Anglo Pacific” or the “Company”) has entered into an agreement with a subsidiary of Mantos Copper (“Mantos”) to acquire a 1.525% net smelter return royalty (“NSR”) over all copper produced at the Mantos Blancos
Slide 4: Investment Highlights
4 INVESTMENT HIGHLIGHTS ENHANCED COMMODITY MIX WITH EXPOSURE TO HIGHLY ATTRACTIVE COPPER MARKET OUTLOOK • Portfolio further diversified to include producing copper royalty • Global copper supply currently in a deficit position which is forecast to further widen IMMEDIATELY ACCRETIVE AND MAINTAINS LO
Slide 5: Mantos Blancos Overview
5 MANTOS BLANCOS OVERVIEW LOCATED IN AN ESTABLISHED MINING JURISDICTION, MANTOS BLANCOS HAS A WELL ESTABLISHED OPERATING TRACK RECORD AND PRODUCES HIGH QUALITY COPPER PRODUCTS. OVERVIEW (1) LOCATION (1) • Mantos Copper is majority owned by Orion Mine Finance LLP and La BOLIVIA Audley Mining Advisors
Slide 6: Long Mine Life with Production and Extension Upside Potential
6 LONG MINE LIFE WITH PRODUCTION AND EXTENSION UPSIDE POTENTIAL RESERVES AND RESOURCES (1) (2) HISTORICAL AND FORECAST PRODUCTION (1) (In thousand tonnes) 10-year average Illustrative RESERVES Copper in Concentrate post completion of production assuming Quantity Cu Grade Cu Grade Ag Grade debottlene
Slide 7: Mantos Blancos Mine Overview
7 MANTOS BLANCOS MINE OVERVIEW GEOLOGY AND MINING (1) • Copper and silver mineralisation associated with intrusives and hydrothermal breccias controlled by regional north-west trending structures through which mineralisation moved up along permeable structures and spread out to form “mantos” or blan
Slide 8: Community Support, Health and Safety, and Environmental Responsibility
8 COMMUNITY SUPPORT, HEALTH AND SAFETY, AND ENVIRONMENTAL RESPONSIBILITY ANGLO PACIFIC HAS CARRIED OUT THOROUGH DUE DILIGENCE IN ACCORDANCE WITH THE COMPANY’S ESG POLICIES AND IS SUPPORTIVE OF MANTOS' APPROACH TOWARDS ACHIEVING BEST ESG PRACTICES. COMMUNITY SUPPORT (1) ENVIRONMENTAL RESPONSIBILITY (
Slide 9: Mantos Blancos Produces High Quality Copper Products
9 MANTOS BLANCOS PRODUCES HIGH QUALITY COPPER PRODUCTS GLOBAL ENVIRONMENTAL POLICIES, PARTICULARLY IN CHINA, ARE DRIVING DEMAND FOR CLEAN, HIGH QUALITY COPPER PRODUCTS. COMMENTS (1) COPPER SMELTER PRODUCTION BY COUNTRY (2) (In million tonnes) • Copper concentrates can be divided into either clean or
Slide 10: Attractive Copper Market Outlook
10 ATTRACTIVE COPPER MARKET OUTLOOK THE MANTOS BLANCOS ROYALTY PROVIDES EXPOSURE TO A HIGHLY ATTRACTIVE COPPER MARKET OUTLOOK AND IS AN OPPORTUNE ENTRY POINT FOR ANGLO PACIFIC'S FIRST SIGNIFICANT PRODUCING COPPER ROYALTY. MARKET UPDATE (1) WORLD REFINED COPPER BALANCE (2) (In million tonnes) • A cop
Slide 11: Further Diversifies Anglo Pacific's Royalty Revenue Profile
11 FURTHER DIVERSIFIES ANGLO PACIFIC’S ROYALTY REVENUE PROFILE ROYALTY RELATED REVENUE (In GBP millions) Anglo Pacific royalty related portfolio pre-2014 (1) Illustrative Mantos Blancos Royalty (5) Acquisitions 2014 to present (2) (3) £70 Illustrative Mantos £60 Blancos Royalty (5) £50 £40 MANTOS BL
Slide 12: Royalty Portfolio Exposure
12 ROYALTY PORTFOLIO EXPOSURE THE MANTOS BLANCOS ROYALTY FURTHER DIVERSIFIES ANGLO PACIFIC'S ROYALTY PORTFOLIO AND MAINTAINS ITS EXPOSURE TO RELATIVELY LOW RISK MINING JURISDICTIONS. COMMODITY EXPOSURE GEOGRAPHIC EXPOSURE As of 30 June 2019 (1) As of 30 June 2019 (1) COKING COAL (2) 44% AUSTRALIA 62
Slide 13: Geographic and Commodity Exposure
13 GEOGRAPHIC AND COMMODITY EXPOSURE 15 PRINCIPAL ROYALTY AND STREAMING RELATED ASSETS OVER FIVE CONTINENTS. PRODUCING ROYALTY COMMODITY OPERATOR LOCATION ROYALTY RATE / IRON ORE STREAM VOLUME 1 COMPANY OF CANADA KESTREL2 COKING & EMR CAPITAL / AUSTRALIA 7 – 15% GRR MCCLEAN LAKE THERMAL COAL PT ADAR
Slide 14: Conclusion
14 CONCLUSION • MILESTONE COPPER ROYALTY ACQUISITION AT AN ATTRACTIVE ENTRY POINT • ROYALTY OVER A PRODUCING ASSET WITH A DEMONSTRATED OPERATING TRACK RECORD • IMMEDIATELY ACCRETIVE TO ADJUSTED EARNINGS AND CASHFLOW PER SHARE • MANTOS BLANCOS ROYALTY ACQUISITION / AUG 2019 HIGH-QUALITY COPPER PRODUC
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