KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Ethiopia International Mining Conference 2015
12 slides from KEFI Gold and Copper's conference presentation, Sep 25, 2015
Slide 1: Funding Acquisition, Exploration and Development in a New Mining Jurisdiction During a Cyclical Low
FUNDING ACQUISITION, EXPLORATION AND DEVELOPMENT IN A NEW MINING JURISDICTION DURING A CYCLICAL LOW ETHIOPIA INTERNATIONAL MINING CONFERENCE ADDIS ABABA 25 SEPTEMBER 2015 JEFF RAYNER, EXPLORATION DIRECTOR HARRY ANAGNOSTARAS‐ADAMS, EXECUTIVE CHAIRMAN
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by KEFI Minerals Plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised per
Slide 3: KEFI Commitment
KEFI COMMITMENT WE ARE COMMITTED TO DEVELOPMENT THAT PROVIDES ENORMOUS BENEFIT TO THE COMMUNITIES WHERE OUR PROJECTS ARE LOCATED AND TO KEFI’S SHAREHOLDERS, WITHOUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS SOCIALLY, ECONOMICALLY AND ENVIRONMENTALLY 3
Slide 4: Focus on Stable Jurisdictions in a Prospective Region – Arabian Nubian Shield
FOCUS ON STABLE JURISDICATIONS IN A PROSPECTIVE REGION – ARABIAN NUBIAN SHIELD Ethiopia: 100% of KEFI Minerals Ethiopia with Gov’t right to 5% free carry • Acquired Tulu Kapi Gold Project Dec 2013 for $5/oz resource • Overhauled the plan to achieve AISC of $760/oz , best quartile globally • Minimise
Slide 5: Managing Risk vs Return
MANAGING RISK VS RETURN • Most explorers fail: KEFI is a proven discoverer and big successes that will pay for the small failures • KEFI focuses on discovery and not exploration, within targeted areas of the highly‐prospective Arabian Nubian Shield • Invest capital in stages, demanding results again
Slide 6: +1 Million Ounce Gold Deposits
+ 1 Million ounce gold deposits Africa dominates those with high grade Tulu Kapi; 20.2Mt at 2.65g/t Au, 1.72Moz Resources 6
Slide 7: Challenges and Opportunities
CHALLENGES AND OPPORTUNITIES Weak capital markets The first Ethiopian mine Infrastructure is needed weak for mining to be financed by for community and for projects, especially for international capital the project juniors KEFI assembling a KEFI reducing capex syndicate of proven from $289M to $120M
Slide 8: Rising Cost of Gold Production
Rising cost of gold production GFMS’s 2014 All‐In‐Costs curve for existing gold mining operations: 50% of gold mining sector is loss making due to All‐in costs at $1,200 gold price of existing mines. KEFI is exploring and developing mines in low cost juristictions: Estimated AISC at Tulu Kapi c. $76
Slide 9: Greatest Value Growth Is from Discovery and Starting Up Production
GREATEST VALUE GROWTH IS FROM DISCOVERY AND STARTING UP PRODUCTION Mine Development Lifecycle New discoveries Value Potential sale of business Entry point on Value build Potential IPO timing M&A the “value curve” 100% of the mine development life‐ 13 Reach steady state cycle will be 75% 11 Commissio
Slide 10: Match Capital Sources with the Applications: Tulu Kapi
MATCH CAPITAL SOURCES WITH THE APPLICATIONS: Tulu Kapi SURPLUS CASH PAST EXPENDITURE OF FLOWS TO FUND $65M FOR EXPLORATION LOAN REPAYMENTS AND PLANNING AND RETURN TO SOURCED FROM SHAREHOLDERS SHAREHOLDERS NEXT $120M FOR EXPLORATION TO BE DEVELOPMENT TO BE SOURCED FROM AT PROJECT LEVEL EQUITY OR SURP
Slide 11: Tulu Kapi Operation – Benefits for Ethiopia
TULU KAPI OPERATION – BENEFITS FOR ETHIOPIA GROWTH GOVERNMENT • GDP and Exports • Company Tax • Tenement Rental • Foreign Direct Investment • Royalties • Foreign Exchange Reserves • PAYE Taxes • VAT MACRO DIRECT BENEFITS BENEFITS EMPLOYMENT & TRAINING • 60% local, 30% other Ethiopian employees • App
Slide 12: Contacts
CONTACTS Harry Anagnostaras‐Adams, Executive Chairman Mobile: +357 99457843 Jeff Rayner, Exploration Director Wayne Nicoletto, Head of Operations England ‐ Registered office Cyprus ‐ Group corporate team Ethiopia ‐ Development and exploration teams Saudi Arabia ‐ Exploration team Turkey ‐ Support Em
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