KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Corporate Update (September 2018)
41 slides from KEFI Gold and Copper's corporate update, Sep 18, 2018
Slide 1: Shareholder Update from Addis Ababa
Shareholder Update from Addis Ababa 18 September 2018 RECENT MILESTONES FOR TULU KAPI GOLD PROJECT Ethiopia has accelerated, including Tulu Kapi regulatory approvals Tulu Kapi development financing lining up at project level Board and Management expanded for project development 1
Slide 2: 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 give, have g
Slide 3: Tulu Kapi's Location
Tulu Kapi’s Location -in Ethiopia’s most gold rich area Artisanal mines, prospects and major Au and Cu deposits in Ethiopia 3
Slide 4: Recent Developments
RECENT DEVELOPMENTS This presentation summarises some important developments for KEFI over the past few months: • ETHIOPIA IS ACCELERATING o TRANSFORMATIONAL POLITICAL CHANGE o REGULATORY PERMITTING OF TULU KAPI PROJECT • DEVELOPMENT FINANCING AT THE PROJECT LEVEL o PROJECT EQUITY o PROJECT NON-EQUI
Slide 5: Ethiopia is Accelerating
• ETHIOPIA IS ACCELERATING o TRANSFORMATIONAL POLITICAL CHANGE o REGULATORY PERMITTING OF TULU KAPI PROJECT 5
Slide 6: The pace of change in Ethiopia since Abiy Ahmed became Prime Minister
The pace of change in Ethiopia has been so fast since Abiy Ahmed became Prime Minister in April that it is almost like observing a different country – BBC 14 Sep 18 BBC: The reforms he has introduced were unthinkable not so long ago. The government seemed impervious to criticism from human rights gr
Slide 7: Hundreds of thousands in Ethiopia welcome once-banned group
Hundreds of thousands in Ethiopia welcome once-banned group 15-17 Sep 18 Associated Press: ADDIS ABABA, Ethiopia — Hundreds of thousands of Ethiopians gathered on Saturday to welcome returning leaders of the once-banned Oromo Liberation Front amid sweeping reforms to bring opposition groups back int
Slide 8: Ethiopia is Accelerating: 2018 Developments Relevant for KEFI
Ethiopia is Accelerating. -the 2018 Developments Relevant for KEFI • April 18: appointment of new Prime Minister Dr Abiy Ahmed – a smooth leadership change. Lifted the State of Emergency that had prevailed for 2 years and introduced a series of initiatives that have been welcomed. • April-Aug 18: ne
Slide 9: Regulatory Approvals and Community Support
REGULATORY APPROVALS AND COMMUNITY SUPPORT Clippings, copies Drilling with community collaboration whilst they still remain land occupants, awaiting the triggering of financial compensation, resettlement to already- 9 selected new host lands and participation in livelihood restoration programs
Slide 10: Development Financing at the Project Level
• DEVELOPMENT FINANCING AT THE PROJECT LEVEL o PROJECT EQUITY o PROJECT NON-EQUITY CAPITAL 10
Slide 11: KEFI Shareholders' Overview
KEFI Shareholders’ Overview KEFI’s vision is to be a dividend-paying high-growth mining leader in the ANS. ● Tulu Kapi is KEFI’s first planned production site, within a district that has potential additional production sites. Its development is being financed at the project level. ● KEFI also has an
Slide 12: Equity Investors into Project Company TKGM
Equity Investors into Project Company TKGM - Ministry of Finance and ANS Resources • KEFI to remain majority shareholder of TKGM, having provided most equity capital and ongoing management • Ethiopian equity investment at project level reinforces the commitment to local benefits and social licence •
Slide 13: KEFI Group Equity Finance Structure
KEFI Group Equity Finance Structure Institutions Board/Management/Contract Public 20% ors 65% 15% Artar 60% G&M 40% KEFI Minerals Saudi Arabia Saudi Arabia plc 100% KEFI Ethiopia Past $60M equity ANS Resources 23% 54% New $30M equity Tula Kapi Gold Mines (TKGM) Govt. of Ethiopia New $20M equity 23%
Slide 14: Local Media Reports of Financing
Local Media Reports of Financing http://www.africanbusinessreview.co.za/ KEFI Minerals: Striking gold with Ethiopian expertise - Aug 23, 2017 AUGUST 28, 2018 Hidden in the remote hills of Western Ethiopia lies the Tulu KEFI Minerals plc Heads of Kapi Gold Project - a lucrative mining operation owned
Slide 15: Non-Equity Project Finance Structure
Non-Equity Project Finance Structure (bond proposal mandated May 18) Institutions Board/Management/Contract Public Bond Holders 20% ors 65% $160M bonds 15% Principal and Interest Payments 60% 40% 100% Finance SPV Artar G&M KEFI Minerals On-Site Saudi Arabia Saudi Arabia plc Cost Overrun Guarantee In
Slide 16: Board and Management Prepared for Development
• BOARD AND MANAGEMENT PREPARED FOR DEVELOPMENT o DIRECTORS o MANAGEMENT o CONTRACTORS 16
Slide 17: 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 18: KEFI Senior Management
KEFI Senior Management Managing Director and Finance Director Plus…. 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 began his career as a geologist Norman i
Slide 19: Other projects constructed under KEFI's Project Implementation Team
Some other projects constructed under the oversight of KEFI’s recently appointed Project Implementation Team 19
Slide 20: Mining fleet 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 21: 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. 21
Slide 22: Milestones
MILESTONES o 2014-2015 o 2016-2017 o 2018 22
Slide 23: KEFI at Tulu Kapi 2014-2017
KEFI at Tulu Kapi 2014+2015: o Resource revised to 1.7Moz from 1.1Moz; o Reserve revised to 1Moz of 2.1g/t ore from 1Moz of 1.8g/t ore o Overhauled Definitive Feasibility Study, approximately halving capex of near $300M o Permitted development, production, environment, social 2016-2017: o Appointed
Slide 24: KEFI at Tulu Kapi 2018
KEFI at Tulu Kapi 2018: o New Government has triggered transformational progressive change o Board and Management has been strengthened for project implementation o Financing policy permitted (capital ratios, hedging, banking). Now administrative permits only left o Increased Project-level equity to
Slide 25: Contacts
Contacts Local community consultation before development starts at Tulu Kapi Email: info@kefiminerals.com Website: www.kefi-minerals.com @kefiminerals KEFI Minerals plc 25
Slide 26: Appendices
KEI | Appendices MINERALS
Slide 27: The Arabian-Nubian Shield
The Arabian-Nubian Shield ● The Arabian-Nubian Shield (ANS) is an exposure of Precambrian crystalline rocks on the flanks of the Red Sea. ● ANS includes Israel, Jordan, Egypt, Saudi Arabia, Sudan, Eritrea, Ethiopia, Yemen, and Somalia. ● Believed to be the next major exploration frontier in Africa ●
Slide 28: Platform established in Ethiopia
Platform established in Ethiopia ● Tulu Kapi Gold Mines Share Company Limited (“TKGM”) established by KEFI Minerals with local partner the Government of Ethiopia. ● Now signed Heads of Agreement with Ethiopian institutional investors via ANS Resources Limited. KEFI remains majority shareholder. ● Fi
Slide 29: KEFI has a focused pipeline
KEFI has a focused pipeline Positioned from step 1 to Step 9……10 Mine Development Lifecycle New discoveries KEFI’s project pipeline: Value Potential sale of business Value build Potential IPO timing M&A Step 9 for Tulu Kapi open pit 100% Step 4&6 for Jibal Qutman 13 Reach steady state 75% 11 Commiss
Slide 30: Comparison of Current Market Capitalisation
Comparison of Current Market Capitalisation ( This ignores the exploration assets ) Implied KEFI EV Implied KEFI EV GBP mill per KEFI share KEFI current market capitalisation, at 2.5p GBP mill 14 KEFI’s interest in Project NPV at start construction GBP mill 48 KEFI interest in Project NPV at start p
Slide 31: Tulu Kapi Gold Project Overview of Post-DFS Refinements
Tulu Kapi Gold Project Overview of Post-DFS Refinements 2018 Plan Agreed with Contractors & Financier KEFI has agreed the 2018 Plan with the proposed bond financier 2018 Plan compared with most recent DFS and with contractors. Key mining and financial parameters from these studies are Whilst resourc
Slide 32: KEFI/TKGM and the Community
KEFI/TKGM and the Community • KME/TKGM has already provided a local school and water wells • Majority local employment of current site teams • Extensive consultation, as co-ordinated by Woreda, for resettlement compensation and actual move • Facilitated selection of new host lands from 17 alternativ
Slide 33: Tulu Kapi Gold Project History
Tulu Kapi Gold Project History 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. Tulu Kapi has a probable ore reserve of 1.05Moz and mineral resources totalling
Slide 34: Case Study: Benefits of Tulu Kapi Mining Project to Ethiopia
CASE STUDY: BENEFITS OF TULU KAPI MINING PROJECT TO ETHIOPIA Mining is a long-term activity and has high social impact Mining represents c.20% of Africa’s economic activity and minerals are the continent’s second-largest export category TULU KAPI – THE BENEFITS First major foreign investment Ethiopi
Slide 35: Tulu Kapi - Resources & Reserves (JORC 2012)
Tulu 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 36: Tulu Kapi – Underground Potential
Tulu Kapi – Underground Potential Gold mineralisation may extend both beneath the current drilling, and 600m to 800m further to the north – potential for 1 Moz below current open pit. • Base Case Internal PEA on the August 2014 resource of 1.45Mt at 6.3g/t (333koz contained gold) extends beyond curr
Slide 37: Opportunities for Satellite Deposits
Opportunities for Satellite Deposits District Exploration Opportunities KEFI can quickly add to Tulu Kapi open-pit gold production by developing: • Potential for oxide ore in a series of shallow open-pits (40m depth) along the more than 9km of Komto-Guji Belt, all within trucking distance of planned
Slide 38: Saudi Arabian Projects
Saudi Arabian Projects A 40/60 joint venture with Saudi conglomerate ARTAR 38
Slide 39: KEFI in Saudi Arabia
KEFI in Saudi Arabia ARTAR Partnership – Gold and Minerals Ltd (G&M) Joint Venture • Saudi Arabia has just promulgated new regulations to encourage minerals exploration and development, targeting a resurgence of its minerals sector • KEFI has been active in Saudi Arabia since 2008 and is partnered w
Slide 40: Tenement Locations in the Arabian Shield
Tenement Locations in the Arabian Shield 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 40
Slide 41: Thank You
Thank You Email: info@kefiminerals.com Website: www.kefi-minerals.com @kefiminerals KEFI Minerals plc 41