Shearwater Group Plc · LSE:SWG
Shearwater — Aurum Mining — Earnings Presentation (December 2007)
11 slides from Shearwater's earnings presentation, December 2007
Slide 1: Going for Gold
AVRVM MINING PLC Going for Gold December 2007
Slide 2: Highlights
Highlights We continue to deliver against the corporate strategy we communicated in January 2007 – Andash zone 1 remains on track to be in production second half of 2008 • Key equipment delivered, in transit or on order • Road construction initiated – Working well despite political changes • Granted
Slide 3: The Andash asset
The Andash asset • Proven and probable reserve of 16 million tonnes, containing over 1.1 million ounces of gold and gold equivalent • Cash operating costs projected at $223 per ounce (2006) • Financials: – Capital cost $48.5 million – Current NPV of $137m at a discount rate of 15%, IRR of 93% and pa
Slide 4: Country update
Country update • Following the referendum, parliamentary elections to be held on Dec 16 – President Bakiev’s party (Ak Jol) expected to obtain a majority • Negative sentiment earlier in the year towards mining in the Talas valley reducing – Formation of local elders group has enhanced communication
Slide 5: Project update
Project update • Local project team assembled under the management of experienced operations and project personnel • Contract to build access road initiated • Final elements of technical design due to be completed December 20 • Still on target to bring mine into production second half of 2008 – Plan
Slide 6: Financial summary
Financial summary • Strong balance sheet - period-end cash balance of £25.5m and no debt • Cash funds appropriately invested • Project remains on track to be delivered within CAPEX forecast • Group is fully funded to take Andash Zone 1 mine into production in second half of 2008 • Financial controls
Slide 7: Project financials
Project financials • Based on 6 December 2007 metal prices (gold $800 per oz, copper $6,600 per tonne) and revised CAPEX forecasts, Andash NPV is US $137m and the project IRR is 93% - post tax and royalties (in the feasibility study, NPV was $36.4m and IRR was 36.9%) • NPV calculated using a 15% dis
Slide 8: Next steps
Next steps • Full expectation to meet our 2008 commitments – Bring Zone 1 into production – Enhance JORC resource base – Aggressive exploration to continue • Board will allocate time to looking at complementary opportunities to expand footprint and enhance shareholder value – Utilise knowledge and e
Slide 9: Appendix 1: Andash Zone 1 Resource Summary
Appendix 1: Andash Zone 1 Resource Summary
Slide 10: Appendix 2: Andash Zone 1 Mineable Reserves
Appendix 2: Andash Zone 1 Mineable Reserves
Slide 11: Important Notice
Important Notice The information contained in these slides has been prepared by Aurum Mining Plc ("the Company") and is subject to updating, completion, revision, further verification and amendment without notice. These slides have not been approved by the United Kingdom Listing Authority as a prosp