KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Edison Function New York (November 2017)
32 slides from KEFI Gold and Copper's conference presentation, Nov 8, 2017
Slide 1: Investor Update
INVESTOR UPDATE Edison Function New York 8 November Disclaimer 2017 Ethiopia Saudi Arabia Clear plan. Strong partners, contractors 2Moz Gold in Resources, 1Moz in Reserves Development Ready for 140,000oz…200,000oz pa Above: the Ethiopian development site Assembling finance and construction contracts
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (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 advisers g
Slide 3: Corporate Overview
Corporate Overview Focus Capital Structure Soon trigger development, First Production c.140,000 oz pa AIM code KEFI • At $1,250/oz, estimated cash flow of US$74M pa before 3.93p (low) Share price - 12 mth debt-service & tax. Payback of 3 years. 11.38p (high) Share price (11/2/2017) 4.5p Target t
Slide 4: Board of Directors
Board of Directors Harry Anagnostaras-Adams – Executive Chairman – MBA (Australian Graduate School of Business) Harry was founder or co-founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Council, EMED Mining, KEFI Minerals and Cyprus-based Semarang E
Slide 5: Corporate Structure
Corporate Structure Institutions Board Public Ausdrill Lycopodium 41% 3% 51% 5% KEFI Minerals plc contract 40% c. 75% c. 25% Al Rashid 60% Saudi JV Tulu Kapi Gold Govt of Ethiopia G&M Mines Possible Additional Investor** Finance SPV On-site Infrastructure Bond Holders • The shareholdings in KEFI Min
Slide 6: Management
Management Wayne Nicoletto, Chief Operating Officer and Managing Director, KEFI Ethiopia – BSc Metallurgy, Grad Dip Mining (WASM) Wayne has 30 years' experience in the mining industry as a Metallurgist and a General Manager, specialising in start-up and operation of gold mines in Africa, Central Asi
Slide 7: Position
KEFI MINERALS POSITION
Slide 8: Africa for Grade
Africa for Grade Tulu Kapi: 20Mt at 2.65g/t Au, 1.72Moz Resource 8
Slide 9: Greatest value inflection created from discovery and triggering of development
Greatest value inflection created from discovery and triggering of development Disclaimer in prospective ground with pro-development Governments Location of KEFI’s portfolio in the ANS Ethiopia • Soon to trigger development at +2g/t Au open-pit reserve of 1Moz • Target production to grow from initia
Slide 10: Tulu Kapi project in Ethiopia is in the heart of a prospective region
Tulu Kapi project in Ethiopia is in the heart of a prospective region 400 km 10
Slide 11: Tulu Kapi Project - robust cost position
Tulu Kapi Project - robust cost position KEFI Operating Cash Costs $685/oz including Sustaining Capex is $773/oz and incuding Capex/Depreciation is $948/oz GFMS’s 2014 All-In-Costs curve for the main global gold mining operations: 50% of gold mining sector is loss making on its own All-in costs basi
Slide 12: Ethiopia's Ranking for Investment Attractiveness
Ethiopia’s Ranking for Investment Attractiveness Ethiopia ranked 51 of 109 countries globally in 2016 Fraser Institute Survey The table below shows Ethiopia’s ranking is better than most African countries Morocco Burkina Faso Ghana Namibia Botswana Eritrea Ivory Coast Ethiopia Madagascar Democratic
Slide 13: Ethiopia - A country on the rise
Ethiopia - A country on the rise 15 years of 7-10% GDP growth, with a HQ for African Union, provides UN pro-development culture. peacekeepers for region World’s fastest growing economy. Ranks ahead of Kenya, Mali, Ethiopia is Second most populous country in Mozambique and South Africa for open for s
Slide 14: Timing
KEFI MINERALS TIMING
Slide 15: KEFI is Preparing to Trigger Funding and Construction
KEFI is Preparing to Trigger Funding and Construction Mine Development Lifecycle New discoveries Value Potential sale of business Entry point on Value build Potential IPO timing M&A the “value curve” 100% of the mine development life- 13 Reach steady state cycle will typically 75% 11 Commissioning 1
Slide 16: Edison Investment Research
Edison Investment Research: Quote: Valuation: Immediate 101% upside to the share price • Now that the higher throughput rate has been confirmed, we estimate that Tulu Kapi should be capable of generating average cash flows from operations of c £45.7m pa, which we value at £70.7m (15.9p per existing
Slide 17: Undervalued compared to peer group of pre-development companies
Undervalued compared to peer group of pre-development companies KEFI is today “FS completed” and plans to be “In Construction” in 2017 EV/M&I Gold Company EV/NPV EV/Reserve EV/All Resource EV/Prod Resource Subgroup Averages (x) ($/oz) ($/oz) ($/oz) ($/oz) In Construction 1.19 155 100 61 159 FS compl
Slide 18: Comparison of Current Market Capitalisation
Comparison of Current Market Capitalisation With GOE Entry Price, NPV’s and Cantor Peer Stats 200 • Lowest graphed basis for valuation is current market cap 150 • Highest graphed basis for valuation equates to c. 45p price per current issued share • Closing the residual funding requirement of US$M 1
Slide 19: Financials
KEFI MINERALS FINANCIALS
Slide 20: Key Points of the Tulu Kapi Expansion Plan
Key Points of the Tulu Kapi Expansion Plan (100% of Tulu Kapi Gold Project – Open Pit only) 2017 2017 DFS Update 2015 DFS 1.9-2.1Mtpa 1.5-1.7Mtpa 1.2Mtpa Average head grade 2.1g/t gold 2.1g/t gold 2.1g/t gold Total gold production 980K oz 980K oz 961K oz Ore processing rate 1.9-2.1Mtpa 1.5-1.7Mtpa 1
Slide 21: Optimised mine plan
Optimised mine plan Rapid delivery of cash flow maximising value Mine design and scheduling at Stage 1 Tulu Kapi has been developed over Stage 3 three stages in order to maximise cash flows over the initial three years (Stage 1) This will facilitate rapid repayment of debt, allowing the company
Slide 22: Proposed Development Funding
Proposed Development Funding (excluding investment already made of c. $60M) $M Total funding needs before project financing structure, including corporate and exploration 169 Extra funds required for project funding structure, mainly for interest during grace period 33 Total Applications 202 Oryx fi
Slide 23: Contacts
Contacts Local community consultation before development starts at Tulu Kapi Email: info@kefiminerals.com Website: www.kefi-minerals.com @kefiminerals KEFI Minerals plc 23
Slide 24: Growth Pipeline
KEFI MINERALS GROWTH PIPELINE
Slide 25: Drilling at Tulu Kapi in Ethiopia
Drilling at Tulu Kapi in Ethiopia 25
Slide 26: Tulu Kapi - Mineral Resources and Ore Reserves
Tulu Kapi - Mineral Resources and Ore Reserves Tulu Kapi Mineral Resource totals 20.2 million tonnes at 2.65g/t Au, containing 1.72 Moz Au Open Cut Reserve totals 15.5Mt at 2.12 g/t Au for 1.05 Moz Au Cut-off Tonnes Gold Ounces JORC (2012) Resource category Reporting elevation (g/t gold) (million) (
Slide 27: Trenching at Tulu Kapi
Trenching at Tulu Kapi To sample one of the first lodes to be mined 27
Slide 28: Tulu Kapi – Underground Mine Potential
Tulu Kapi – Underground Mine Potential excluded from project economics at this stage Gold mineralisation may extend deeper and 600 to 800m further to the north - potential for 1Moz below open pit EXISTING UNDERGROUND RESOURCE Ore mined 320,000 tpa at 5.2g/t Life of Mine 4 years Gold production 47,60
Slide 29: Saudi Arabia: 40% JV with Al Rashid Family “Artar”
Saudi Arabia: 40% JV with Al Rashid Family “Artar” Red Hill at Jibal Qutman, In Saudi Arabia 29
Slide 30: Exploration projects in Saudi Arabia
Exploration projects in Saudi Arabia 30
Slide 31: Saudi Arabia: proprietary database
Saudi Arabia: proprietary database KEFI database includes the mineral occurrence data set (“MODS”) which contains the coordinates, exploration history and resource potential compiled by the BRGM and USGS, of the 5,002 MODS in the Arabian-Nubian Shield. This has allowed KEFI to rapidly field-assess a
Slide 32: Thank You
KEFI MINERALS THANK YOU
KEFI Minerals — Edison Function New York (November 2017) on 6ix