Slide 1: EMED Mining - Rio Tinto Copper Project
EMED Mining Rio Tinto Copper Project March 2015
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by EMED Mining Public Limited (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 a
Slide 3: Investment Highlights
Investment Highlights All permits now received to commence mining in Q3 2015 Management team with proven project development track record Supportive shareholders Low capital intensity brownfield project, with significant existing infrastructure, including processing facilities Significant
Slide 4: Introduction to Rio Tinto Copper Project
Introduction to Rio Tinto Copper Project ● EMED Mining owns 100% of the Rio Tinto Copper Project Project Location through its wholly-owned subsidiary EMED Tartessus ● Past-producing open-pit copper mine in the Iberian Pyrite Belt, 65 km northwest of Seville ● Last operated in 2001, and placed on car
Slide 5: Key Management for Project Delivery
Key Management for Project Delivery Alberto ● Over 36 years’ experience operating and developing mining projects Lavandeira Adán ● Graduate of the University of Oviedo, Spain with a degree in Mining Engineering Chief Executive Officer ● As a Director of Samref Overseas S.A from 2007-2014, he represe
Slide 6: Key Developments
Key Developments ● Unified Environmental Authorisation (AAU) permit granted H1 2014 ● Administrative standing permit granted ● Government of Andalucía awards €8.8 million grant for development of Rio Tinto ● £13.1 million equity financing completed with two existing shareholders (XGC and Orion) ● Pl
Slide 7: Funding Requirements
Funding Requirements ● Earlier studies had estimated that initial funding Initial Funding Requirements US$m of US$203m would be required to bring Rio Tinto Plant Refurbishment $129 into production at an initial 5mtpa ROM rate Water Dams and Tailings $35 (Phase 1) Commissioning and Start Up $23 ● Thi
Slide 8: Capital Efficiency and Cash Costs
Capital Efficiency and Cash Costs Capital Intensity (US$/tonne annual Cu production) – Global development stage copper projects 35000 30000 Capital Intensity (US$/tpa) 25000 20000 15000 10000 5000 0 C1 Cash Costs After By-Products (US$/lb) – Global development stage copper projects 2.5 2 Cash Costs
Slide 9: Market Positioning
Market Positioning P/NAV (x) Reserves development/ Producers Pre-production/Feasibility Exploration 1.00 0.90 0.88 0.81 0.79 0.80 0.74 0.73 0.73 0.70 0.65 0.59 0.60 Average: 0.55x 0.54 0.54 0.50 0.50 0.46 0.44 0.43 0.40 0.40 0.33 0.34 0.35 0.34 0.32 Average: 0.30x 0.31 0.27 0.27 0.30 0.23 Average: 0
Slide 10: Copper Market Outlook
Copper Market Outlook Key Themes Spot Copper vs. Long-Term Analyst Consensus1 ● Supply expected to exceed demand in the short-term 5.0 4.5 2018 Long Term Consensus − 2015 surplus expected to be lower than previously Copper Price (US$/lb) Price: US$3.00/lb 4.0 anticipated following recent producer gu
Slide 11: Refurbishment Progress (1/4)
Refurbishment Progress (1/4) Primary Crusher: MCC MV panels arrived on site and Primary Crusher: ApronFeeder plates installation Primary Crusher: Re-installation off crusher refurbished installed into building progressing hydraulic system Secondary / Tertiary Crusher Area: Replacement of side Coarse
Slide 12: Refurbishment Progress (2/4)
Refurbishment Progress (2/4) Concentrate thickener & filter press area rebar fixing and shuttering in progress Flotation cleaner cells refurbishment in progress Rod mill feed end plate steel liner removal in progress Rod mill discharge sump structural support steelwork Lab setup in progress replacem
Slide 13: Refurbishment Progress (3/4)
Refurbishment Progress (3/4) Operators refurbishing the inside of a ball mill, Milling Area Primary Screening Dust Extraction Bag Filter First and Second Cleaner Flotation Cells refurbished Trip Switch mounted on Coarse Ore Stockpile Feed Conveyor Flotation Cells - Agitators refurbished and painted
Slide 14: Refurbishment Progress (4/4)
Refurbishment Progress (4/4) Wet Area Compressor House new Cladding being installed Filter Press Foundation Wall shuttering Switchyard Transformer Cooling Fans installed Fines Feed Conveyor to Fine Ore Stockpile Primary Crusher Apron Feeder new Flights being installed Reagents Lime Plant Section Dos
Slide 15: Phase 1 Timeline to Completion
Phase 1 Timeline to Completion 2014 2015 2016 J F M A M J J A S O N D J F M A M J J A S O N D J F M Milestones Administrative Standing Mining contractor appointed Equipment pre-ordered Mining application Mining permit Finance in place Mining contractor mobilization Commercial production (5Mtpa) Key
Slide 16: Phase 1 Progress
Phase 1 Progress Planned Progress 85% Actual Progress 72% % REPAIRED PIPE OLD PIPE 16
Slide 17: District Potential
District Potential • The Rio Tinto Copper Project is located at the eastern end of the highly prospective Iberian pyrite belt, which extends about 230km between Seville in the east and the Atlantic coast near Lisbon in the west • Within the pyrite belt, there are 8 major mining areas • In total, som
Slide 18: Rio Tinto Copper Project Upside Potential (1/2)
Rio Tinto Copper Project Upside Potential (1/2) • There is significant potential to expand the mineable resource at Rio Tinto Copper Project, which could support a throughput expansion or extend the operation’s mine life • The region is highly-prospective, being part of the world’s largest VMS syste
Slide 19: Rio Tinto Copper Project Upside Potential (2/2)
Rio Tinto Copper Project Upside Potential (2/2) Cu Pb Zn Ag Au San Dionisio Section Copper Grades Historical Estimates Ore mmt % % % g/t g/t San Dionisio: 17.2 1.45 - - - - • Alfredo Stockwork San Dionisio: 45.0 0.88 - 2.20 26.0 0.4 • Massive Sulphide San Antonio 9.1 1.67 1.07 2.13 64.3 0.6 • Massiv
Slide 20: Gravimetric Anomalies at Rio Tinto
Gravimetric Anomalies at Rio Tinto NEW TARGET RIOTINTO MINE • Gravimetric anomaly north of Rio Tinto, in an area with low density rocks, suggests the presence of deeper sulphide deposit, with similar size to the original RioTinto deposit • Position of anomaly coincident with faults that limit the ea
Slide 21: Conclusion
Conclusion Management team with proven project development track record All permits now received to commence mining in Q3 2015 Low capital intensity re-start relative to greenfield projects Supportive shareholders Significant upside potential via expansions and regional exploration 21
Slide 22: Appendix
Appendix 22
Slide 23: Experienced Board and Management
Experienced Board and Management Executive Directors • Over 36 years’ experience operating and developing mining projects Alberto Lavandeira • Former President, CEO and COO of Rio Narcea Gold Mines, which built three mines including Aguablanca CEO (1995-2007) Non-Executive Directors Roger Davey • Ov
Slide 24: Corporate Structure
Corporate Structure Key terms Current shareholder structure Company Agreement Terms Trafigura • Security package over EMED Holdings UK Convertible • Pre-emptive rights 100% XGC note with • Board seat (EMED Mining Public Ltd) interest • Offtake granted over 30.44% of life of mine Astor Orion Mine Uri
Slide 25: C1 Cash Cost Breakdown
C1 Cash Cost Breakdown US$mm US$/lb Cu Site Operating Costs Mining $613 $0.56 Milling $684 $0.63 Silver By-Product Credits ($103) ($0.09) Administration $129 $0.12 Costs Improvements (2015 and beyond) ($100) ($0.09) Subtotal $1,223 $1.13 Freight, Selling, Refining and Smelting Freight & Selling $190
Slide 26: Mining Industry in Spain
Mining Industry in Spain 1 Rio Tinto Copper Project Significant Mining Infrastructure Copper 6 2 • Substation located Power Aguas Teñidas 1km from mine site Copper, zinc 3 • To be supplied Las Cruces 5 from Campofrio Copper reservoir 3km 7 SPAIN Water away and Aguas 4 Limpias water dam Aguablanca 2