Shearwater Group Plc · LSE:SWG
Shearwater — Aurum Mining — FY2007 Earnings Presentation
10 slides from Shearwater's earnings presentation, September 2007
Slide 1: Going for Gold
Going for Gold September 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 – Increased political stability – Key operational management employed – Key equipment identified and on order – Exploration commen
Slide 3: The Strategy – January 2007
The Strategy – January 2007 • Bring Andash Zone 1 into production at 2m tpa, enabling the Company to be re-rated as a producer • Obtain JORC resource classification on Zones 2 and 3 • Implement exploration drilling programme on new exploration opportunities with key focus on Tokhtonysay and Nakhodka
Slide 4: 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 • Revised financials: – Capital cost $48.5 million – Current NPV of ‘$152m’ at a discount rate of 15%, IRR of ‘103%’
Slide 5: Country update
Country update • Current PM set to continue in the medium term • Negative sentiment earlier in the year towards mining in the Talas valley replaced by neutrality – puts us in the driving seat – the onus is on us to keep the local population on side – poll of local community demonstrated majority sup
Slide 6: Project update
Project update • Local project team assembled under the management of experienced operations and project personnel employed in March – Capital cost reduction of $7m • Short self imposed delay in getting on site – Geotechnical drilling commenced July – Geophysical exploration started in August – Core
Slide 7: Financial summary
Financial summary • Results to 31st March 2007 do not demonstrate the progress and transformation of Aurum since the fundraising in February 2007 • Strong balance sheet - year-end cash balance of £28.4m and no debt • Group is fully funded to take Andash Zone 1 mine into production in second half of
Slide 8: Project financials
Project financials • Based on 25 September 2007 metal prices (gold $725 per oz, copper $8000 per tonne) and revised CAPEX forecasts, Andash NPV is US$152m and the project IRR is 103% - post tax and royalties (in the feasibility study, NPV was $36.4m and IRR was 36.9%) • NPV calculated using a 15% di
Slide 9: 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 10: 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