Kgl Resources Limited · ASX:KGL
Kgl Resources — Investor Presentation (February 2021)
31 slides from Kgl Resources's investor presentation, Feb 22, 2021
Slide 1: KGL Resources Company Overview
For personal use only KGL Resources Company Overview High Quality Australian Copper Project Poised for Development February 2021 KGL Resources: Company Overview February 2021 (ASX:KGL)
Slide 2: KGL Primed to Take Advantage of Rising Cu Market
KGL Primed to Take Advantage of Rising Cu Market For personal use only Significant copper Exposure to high Significant development project: quality copper opportunity through 426.2 kt contained development project infill drilling and copper Resource. with additional continued exploration Grade is 2.
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Share price performance Australian Stock Exchange (ASX) code KGL 3500 0.6 ASX Share price (close 17 Feb 2021) 46 cents 3000 0.5 52 week low / high 9.3cents /50cents 2500 0.4 Shares outstanding 335.7M 2000 0.3 1500 Options on Issue Nil 0.2 10
Slide 4: Jervois Copper Project
Jervois Copper Project For personal use only ✔ Approvals – all major approvals including ILUA, EIS and Mining Management Plan. Jobs – up to 300 during construction and up to 300 operational during peak operations. Processing to a concentrate –process plant onsite. Trucked via the Plenty and Stuart H
Slide 5: Capital Raising Overview
Capital Raising Overview For personal use only Strategic placement raising approximately $12 million and a proposed 1 for 13 non- renounceable entitlement offer of fully paid ordinary shares to raise up to $11.77 million • Placement offer to raise $12 million via the issue of approximately 28.6 mill
Slide 6: Capital Raising Timetable
Capital Raising Timetable For personal use only Event Date Trading halt and opening of Institutional Placement Thursday, 18 February 2021 Institutional Placement closes (before market opens) Monday, 22 February 2021 Announcement of Entitlement Offer and results of the Institutional Placement Monday,
Slide 7: Plans for the Funds
Plans for the Funds For personal use only Funds raised under the current capital raising will enable KGL : to optimise the mine planning, complete the Jervois Full Feasibility Study, undertaking financing, and potentially provide a pool of funds to test some of what the company believes are
Slide 8: Source and Use of Funds
Source and Use of Funds Source of Funds Use of Funds For personal use only A$ million Activity A$ million Current Balance $5.00 Feasibility Study Placement Funds $12.00 Resource Infill & Geotech drilling $4.80 Placee, Major S/holder and Director $4.88 Program of work $3.70 Funds 1 Owners’ team costs
Slide 9: Jervois Copper Project Progress
Jervois Copper Project Progress For personal use only Pre-Feasibility Study result delivered a robust mining project. Initial production 30,000tpa contained copper in cons plus silver and gold. Full Feasibility Study now under way. Drilling has recommenced February 2021 (planned to extend mi
Slide 10: Jervois Copper
Jervois Copper For personal use only Focus for 2021 is to increase LOM which KGL is confident 500 can be achieved through drilling Total targeted to upgrade Inferred 450 Resources Resources to Indicated 426.2 kt Resources. 400 In addition extensional drilling to 350 the existing Reward, Rockface
Slide 11: Mine Design
Mine Design For personal use only Design and costing completed for PFS. Optimising and mine life extension underway for Feasibility Study. Reward Bellbird Rockface Looking West KGL Resources: Company Overview February 2021 (ASX:KGL) 11
Slide 12: Process Plant
Process Plant For personal use only Cost effective modular design Modular offsite pre-assembled design. Standard flowsheet and equipment technology. Reduced construction manhours and site risks. Lower cost construction for same process design. KGL Resources: Company Overview February 2021 (A
Slide 13: Prefeasibility Study - Dec 2020
Prefeasibility Study - Dec 2020 For personal use only PFS Key Metrics (1) PFS Assumptions Financial Metrics Assumptions Pre-Production Capex (2) A$200 m Cu Price US 6,788/t US$3.08/lb Total Revenue (3) A$ 2,462 m AUD/USD 0.71 Project Cashflow (pre-tax) A$385 m Initial LOM 7.5 years NPV (8%, real, pr
Slide 14: Sustainability and Environmental
Sustainability and Environmental For personal use only EPA recommended the mine proceed with operating conditions. Environmental risk assessment completed. • No environmental, social, economic or human health and safety risks with an extreme initial or residual risk rating identified. Positive
Slide 15: Jervois: Primed for Discovery
Jervois: Primed for Discovery For personal use only Large Area, Large Structures, Large Potential: • Jervois (38 km²), Unca Creek (73 km²) Total 111 km². 12 km (78%) of undrilled or only shallow drilled sections of J structure. Multi Disciplinary Approach to Exploration: • Geology, structure,
Slide 16: Highly Prospective Targets
Highly Prospective Targets For personal use only Extensions to high grade copper shoots – drill ready. Favourable host rocks and structures along the J-Structure. KGL Resources: Company Overview February 2021 (ASX:KGL) 16
Slide 17: Jervois J-Structure
Jervois J-Structure For personal use only Jervois Copper Project: Large scale structures in Unca Creek a highly prospective geological setting. 73 Km2 Broken-Hill-style SEDEX with an IOCG-Tennant Creek-style overprint. J-Structure (in pink): • Hosts known mineral resources. • Extends 2km North
Slide 18: Copper Entering Supercycle
Copper Entering Supercycle LME Copper 2020/21 For personal use only US$ “Prospect of entering 10 year supercycle” – JP Morgan (Feb 2021) Copper price target $10,000/t – Goldman Sachs (Dec 2020). Growing supply/demand deficit. Price positive factors: International govt stimulus programs – his
Slide 19: Favourable Copper Market Factors
Favourable Copper Market Factors For personal use only Robust, high grade Jervois operation will come into production at a time of expected strong demand and high prices. Growing demand Constrained supply Global post COVID-19 economic stimulus Growing production deficit forecast from 2021. focus
Slide 20: Copper Supply Gap
Copper Supply Gap For personal use only Without new projects, supply gap will exceed 15Mt by 2035. Copper Mine Production 2017: 20.4Mt Committed Mine Supply Forecast* * Committed: Existing Operations and Firm Expansions. Source: CRU, company reports. KGL Resources: Company Overview February 2021 (AS
Slide 21: Risk Factors
Risk Factors For personal use only Activities in KGL and its controlled entities, as in any business, are subject to risks which may impact on KGL future performance. There are a number of factors, both specific to KGL and of a general nature, which may affect the future operating and financial pe
Slide 22: Material Business Risks
Material Business Risks Future Capital Raisings For personal use only KGL’s ongoing activities may require substantial further financing in the future, in addition to amounts raised pursuant to the Entitlement Offer. KGL will require additional funding to bring the Jervois Copper Project into commer
Slide 23: Material Business Risks
Material Business Risks Feasibility and Development Risks For personal use only It may not always be possible for KGL to exploit successful discoveries which may be made in areas in which KGL has an interest. Such exploitation would involve obtaining the necessary licences or clearances from relevan
Slide 24: Material Business Risks (cont.)
Material Business Risks (cont.) Occupational Health and Safety For personal use only Given KGL’s exploration activities (and especially if it achieves exploration success leading to mining activities), it will face the risk of workplace injuries which may result in workers’ compensation claims, rela
Slide 25: Material Business Risks (cont.)
Material Business Environmental Risk Risks (cont.) The operations and activities of KGL are subject to the environmental laws and regulations of Australia. As with most For personal use only exploration projects and mining operations, KGL’s operations and activities are expected to have an impact on
Slide 26: Material Business Risks (cont.)
Material Business Risks (cont.) For personal use only Climate Change Risk The operations and activities of KGL are subject to changes to local or international compliance regulations related to climate change mitigation efforts, specific taxation or penalties for carbon emissions or environmental da
Slide 27: General Risk Factors
General Risk Factors For personal use only Mineral exploration and mining may be hampered by circumstances beyond the control of KGL and are speculative operations which by their nature are subject to a number of inherent risks. These include general risk factors such as: Market Risk: As with all st
Slide 28: General Risk Factors
General Risk Factors For personal use only Securities investment risk: Applicants should be aware that there are risks associated with any securities investment. Securities listed on the stock market, and in particular securities of mining and exploration companies have experienced extreme price and
Slide 29: Summary and Outlook
For personal use only Summary and Outlook Significant Australian copper project poised Key milestones for 2021 for development. Advanced project planning and approvals. Feasibility Study Supportive long-term shareholder base. Financing, FID Strong copper market fundamentals. Start Cons
Slide 30: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement For personal use only The information contained in this presentation is for informational purposes only and have not materially changed. The company confirms that the form and context and does not constitute an offer to issue, or arrange to issue, securiti
Slide 31: More Information
More Information For personal use only For more information about the Jervois Project, please visit our website: www.kglresources.com.au KGL Resources: Company Overview February 2021 (ASX:KGL) 31
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