KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Swiss Mining Institute 2018
31 slides from KEFI Gold and Copper's conference presentation, November 2018
Slide 1: Swiss Mining Institute: Arabian Nubian Shield, Ethiopia and Saudi Arabia
Swiss Mining Institute November 2018 Arabian Nubian Shield Ethiopia and Saudi Arabia Ethiopia, Africa’s highest growth country, • Strong platform of partners, contractors & company management base for African Union, world’s largest provider of peace-keeping forces. • Development ready project – star
Slide 2: The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc
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 give, have g
Slide 3: KEFI Overview
KEFI Overview • Focused on the two largest Arabian Nubian Shield countries: Ethiopia & KSA • Proprietary data base and locally-based experienced teams • KEFI Market Cap £9M at 1.7p on AIM (“KEFI”). 12-month high 5p. • Management & contractors own 15%. Special situation funds ~ 30% • $300M developmen
Slide 4: Directors
Directors Mark Wellesley-Wood, Non-Executive Chair, Chair Technical Review Committee – BEng (Mining) Mark is a mining engineer, with over 40 years’ experience in both the mining industry and investment banking. He has been closely involved in mining activities in Africa, having started his career on
Slide 5: KEFI Senior Management
KEFI Senior Management Managing Director and Finance Director Plus Newly-Appointed Operations Specialists David Munro - Operations Eddy Solbrandt - Systems Brian Hosking - Planning Norman Green – Development David began his career as a mining engineer in Eddy began his career in the mining Brian beg
Slide 6: Ethiopia and Saudi Arabia
Ethiopia and Saudi Arabia • The two largest countries in the Arabian-Nubian Shield, by land mass • Both have a long ancient history of mining • Both opened to modern mining during the past decade • Both recently installed younger national leaders and are demonstrably pro-development • In both countr
Slide 7: Ethiopia Development Funding at Project Level
Ethiopia Development Funding at Project Level • To minimise ownership dilution from imminent development funding, have arranged development funding at project-level. • Have also arranged a working capital facility for parent comprising £450K per month available for drawdown from Jan 2019. Repayments
Slide 8: Market Capitalisation Statistics of Peers
Market Capitalisation Statistics of Peers This compares EV (Mkt Cap+Debt) with NPV “Pre-Construction”, “In Construction” and “New Producers” EV/NPV 3.0x 2.5x Feasibility Completed 2.0x but Pre-Construction New Producers In Construction Average (ex KEFI) Average 1.14x Average 1.15x 0.55x 1.5x 1.0x KE
Slide 9: Saudi Arabia: Operator of Largest Non-Govt Explorer
Saudi Arabia Operator of Largest Non-Govt Explorer • KEFI has been operator of the Gold & Minerals Joint Venture (G&M) since 2008 • G&M has taken the opportunity of the past 2-3 years of regulatory overhaul by the Government • KEFI has assembled a cherry-picked exploration portfolio. The largest oth
Slide 10: Tenement Locations in Saudi Arabia via the G&M Joint Venture with ARTAR
Tenement Locations in Saudi Arabia via the G&M Joint Venture with ARTAR 0.6Moz +1Moz +40Mt at 2.4% Cu +6Moz G&M JV +3Moz 1 MLA +0.5Moz 1 EL +3Moz 17 ELAs +3Moz 4 ELAs pending Total ≈1,275km2 10
Slide 11: Key Exploration Area for 2019: Wadi Bidah Mineral District
Saudi Arabia Key Exploration Area for 2019 Wadi Bidah Mineral District Comparison of 120km long Wadi Bidah VMS Belt (left) vs. the Bisha VMS Belt in Eritrea (right) (same scale). G&M JV (via ARTAR) has registered applications for most of Wadi Bidah VMS Belt. Contain 24 VMS systems and many historic
Slide 12: Hawiah Licence
Hawiah Licence At top of Wadi Bidah Mineralised District Geophysics identified an intense north-south trending self-potential (SP) anomaly located from surface to +300m depth with +2km strike length (consistent with the presence of a massive sulphide source) • Gossan 6km long, 5-40m wide • 53 Trench
Slide 13: Ethiopia: Developing the First Modern Mine
Ethiopia Developing the First Modern Mine • 2014: KEFI acquired Tulu Kapi Gold Project • 2015-2017: formalised permits, construction & operating contracts and community plans • The past 2-3 years of public calls for change in Ethiopia have resulted in recent very positive change • KEFI and now press
Slide 14: Phases of a Project for Risk Mitigation
Phases of a Project for Risk Mitigation Tulu Kapi Ready to Start Construction 2019 Sequential management of risk elements through project development Resources and Technology Operation Commissioning Technical Risks Construction Geological Risks Contracting Optimising Systems, People and Planning Fea
Slide 15: Tulu Kapi Project-Independent Validation
Tulu Kapi Project-Independent Validation For Project Financiers, at Nov 2018 Due Diligence Financial Model Environmental & Social Definitive Feasibility Study TULU KAPI Resources & Reserves
Slide 16: KEFI has a Project Pipeline Positioned From Step to Step
KEFI has a Project Pipeline Positioned From Step 1 to Step 9 Triggering Step 10 in Early 2019 Mine Development Lifecycle New discoveries KEFI’s project pipeline: Value Value build M&A Step 9 for Tulu Kapi open pit 100% Step 4 for Tulu Kapi satellites 13 Reach steady state 75% 11 Commissioning Step 2
Slide 17: Tulu Kapi's Timetable
TULU KAPI’S TIMETABLE Exploration drilling and Selected Plant and Mine Appointed senior Start mining and Significant net cash engineering which cost c. contractors after 2 management team, commission plant. generated for debt $60M. KEFI takeover consecutive tenders with arranged community reduction.
Slide 18: Ethiopia 2018 Political Developments
Ethiopia 2018 Political Developments • April 18: new Prime Minister Dr Abiy Ahmed – a smooth leadership change. Lifted the State of Emergency that of > 2 years and introduced a series of initiatives that have been welcomed inside and outside Ethiopia. • April-Aug 18: new Mines Ministry, new central
Slide 19: ANS Mining S.C: KEFI's Local Institutional Partners
ANS Mining S.C (“ANS”) KEFI’s Local Institutional Partners • Govt committed in 2017 as KEFI’s initial partner: Ministry of Finance & Economic Cooperation to invest $20M • ANS formed in 2018 to be KEFI’s second local partner in Tulu Kapi Gold Mine • ANS founders have committed 10% of the ANS investme
Slide 20: KEFI's Cornerstone Asset Tulu Kapi is in Ethiopia's largest gold region
KEFI’s Cornerstone Asset Tulu Kapi is in Ethiopia’s largest gold region Artisanal mines, prospects and major Au and Cu deposits in Ethiopia 20
Slide 21: KEFI Equity Finance Structure
KEFI Equity Finance Structure Institutions Board/Management/Contractors Public 30% 15% 55% Artar 60% G&M 40% KEFI Minerals Saudi Arabia Saudi Arabia plc 100% KEFI Ethiopia Past $60M equity ANS Mining 23% 54% New $30M equity Tula Kapi Gold Mines (TKGM) Govt. of Ethiopia New $20M equity 23% Ausdrill L
Slide 22: Contacts
Contacts Local community consultation before development starts at Tulu Kapi Email: info@kefiminerals.com Website: www.kefi-minerals.com @kefiminerals KEFI Minerals plc 22
Slide 23: Appendices
KEFI MINERALS APPENDICES
Slide 24: Tula Kapi Gold Project
Tula Kapi Gold Project The Tulu Kapi project lies 360 km due west of Ethiopian capital, Addis Ababa. Access is via a sealed road and the site benefits from main electricity grid access within 50km of the project. Tula Kapi has a probable ore reserve of 1.05Moz and mineral resources totalling 1.72Moz
Slide 25: Tula Kapi - Resources & Reserves
Tula Kapi - Resources & Reserves (JORC 2012) Geological Overview Reserves Cut-off Tonnage Gold Grade Cont. Gold • The Tulu Kapi region comprises typical greenstone characterised by (g/t) (millions) (g/t) (Moz) prominent hills of intrusive rocks and deeply incised valleys hosting both High grade 0.90
Slide 26: Tulu Kapi Gold Project Overview of Post-DFS Refinements
Tulu Kapi Gold Project Overview of Post-DFS Refinements 2018 Plan Agreed with Contractors & Financier As part of the due diligence for financing, KEFI has agreed the 2018 Plan 2018 Plan compared with most recent DFS with the preferred financier and contractors. Key mining and financial parameters fr
Slide 27: Tulu Kapi - Project Development Progress
Tulu Kapi - Project Development Progress Government and Community • Mining Licence issued, bilateral agreement signed, permitted for development, operating, environmental and social • Project Company (TKGM) shareholders agreement signed – Mining Licence transferred to TKGM • Roads and power authorit
Slide 28: Mining fleet and operators provided by Ausdrill/African Mining Services
The mining fleet and operators will be provided by Ausdrill/African Mining Services Planning and Control by KEFI/TKGM Ausdrill / African Mining Services has developed a mainly African based business over a 27 year period where 97% of employees are nationals. It currently conducts mining operations f
Slide 29: Another African Mining Services Open Pit Mine
Another African Mining Services Open Pit Mine
Slide 30: Lycopodium process plant construction contractor
LYCOPODIUM process plant construction contractor Lycopodium is mainly African-based, having built 57 gold plants and worked in over 20 African countries over a period of over 20 years. It has also worked in Australia, Asia and Europe. Lycopodium will be co-ordinated and controlled by KEFI/TKGM. 30
Slide 31: Thank You
KEFI MINERALS THANK YOU