Kgl Resources Limited · ASX:KGL
Kgl Resources — Investor Presentation (July 2024)
44 slides from Kgl Resources's investor presentation, Jul 8, 2024
Slide 1: Equity Raising Investor Presentation July 2024
For personal use only Equity Raising Investor Presentation July 2024 KGL Resources Limited Investor Presentation
Slide 2: Important Notices and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notices and Disclaimer No reliance: To the maximum extent permitted by law, the information in this presentation is given without any liability whatsoever being accepted by KGL or any of its related bodies corporate or their respective d
Slide 3: Agenda
1. Jervois Project Overview • Project and Market Highlights • Company Strategy For personal use only • Corporate Snapshot 2. Equity Raising 3. Summary of Material Risks 4. Appendices A. Key Risk Factors B. Copper Market Overview C. Competent Person Disclosure D. Foreign Selling Disclosure KGL Resour
Slide 4: Jervois Project Overview: Map and location
Jervois Project Overview Map and location ▪ The Project is located in the Northern Territory (NT) of Australia For personal use only approximately 380km by road north- east of Alice Springs, within existing Mineral Leases. ▪ KGL has completed all major development approvals; – Native Title Agreement
Slide 5: KGL Highlights
KGL Highlights High Grade Project Primed to Take Advantage of Rising Copper Market For personal use only High Grade Copper Advanced project Low capital intensity Reduced Risk project with gold and with major Planned development, silver byproducts approvals in place operations and offtake via Tier 1
Slide 6: High Grade Resource
High Grade Resource Contained Copper Mineral Resources in Australian Projects For personal use only Logarithmic Project Size As the average grade of brownfield and greenfield projects decline and their associated capital and operating costs increase, Jervois stands out as one of the highest-grade un
Slide 7: Use of Funds
Use of Funds Min Raise Max Raise $6.0 mill $15.1 mill Opening Balance as at 30th June 2024 $6.5 mill $6.5 mill For personal use only Produce into Long Term Chronic Copper Shortfall $1.0 mill $3.0 mill • Finalise Feasibility Study Update • Undertake Technical Review • Progress to FID • Project Readin
Slide 8: KGL's Three-Fold Strategy
KGL’s Three-Fold Strategy 1. Produce into Long Term Chronic Copper Shortfall ▪ Market uncertainties abating: External headwinds including macroeconomic and funding risks, supply chain constraints, labour market shortages and balanced copper market demand has provided KGL opportunity to continue to r
Slide 9: Produce into Long Term Chronic Copper Shortfall: The Perfect Storm
1. Produce into Long Term Chronic Copper Shortfall The Perfect Storm Market Outlook ▪ S&P Global “demand for refined copper will double … by 2035” ▪ Demand forecasts reflect global commitments to achieve Net Zero by 2050 with electric vehicles and the grid key For personal use only demand drivers +
Slide 10: FY2022 Feasibility Study
1. FY2022 Feasibility Study ▪ The Feasibility Study (Nov 2022) confirmed the Jervois Copper Project is technically robust and financially viable at a copper price of US$4.23/lb ▪ The spot market prices for copper, gold and silver have already exceeded the FS long term commodity price For personal us
Slide 11: Feasibility Study Update
1. Feasibility Study Update Process Plant Open Cut Mining Mine Scheduling Civil Works Inc TSF Ancillary Infrastructure and Underground Mining For personal use only Flowsheet and Re-evaluate Update OC and U/G Selected civil works to Refine power ramp up to technology selection sequencing of O/C and s
Slide 12: Pathway to Production
1. Pathway to Production Funding and FID PROJECT MANAGEMENT FID and Funding Operations For personal use only Site Prep Construction Construction Completion Prep 6 Months ---------------- 6 months-------- 12 ---------------- 12 months------ 24 ----------------6 months---------- 30 ---------Ongoing---
Slide 13: Drill Plan to Extend the Project Life
2. Drill Plan to Extend the Project Life • The EL and Mining leases cover 111 km2 - Jervois (38 km2), Unca Creek (73 km2) • 12 km (78%) of undrilled or only shallow For personal use only drilled sections of J structure • There are 2 main mining areas in the Jervois Project area separated by about 5k
Slide 14: Exploration around existing orebody
2. Exploration around existing orebody For personal use only KGL Resources Limited Investor Presentation 14
Slide 15: Rockface: expansion optionality both near surface and at depth
2. Rockface: expansion optionality both near surface and at depth ▪ Deepest holes at Rockface intersect high grade copper with gold and silver credits. ▪ Hole KJCD575W1 (130 metres below mine plan) For personal use only – 5.0 m @ 2.43% Cu, 18.1 g/t Ag, 0.55 g/t Au, from 1,132.5 m. ▪ Hole KJCD556 (wi
Slide 16: Exploration at depth
3. Exploration at depth ▪ KGL is targeting a large mineralized system beneath the copper-silver-gold system at the southern end of the Jervois mineralized field. ▪ Drill results at Rockface indicate that the copper For personal use only grades are improving at depth. ▪ One deep hole drilled in 2023/
Slide 17: Exploration at Depth
3. Exploration at Depth • The Jervois mineral field is a highly prospective area due to its proximity to the large crustal-scale Jervois Fault, which acted as a plumbing system for mineralising ore-forming fluids . • The high grade Rockface copper-silver deposit is located in For personal use only t
Slide 18: Sustainability and Environmental
Sustainability and Environmental ▪ Environment, Social and Governance (ESG) and Indigenous relations remains a top priority for KGL. ▪ EPA has recommended the mine proceed with operating conditions. For personal use only ▪ Environmental risk assessment completed - No environmental, social, economic
Slide 19: Key Takeaways
Key Takeaways ▪ Clear focus on deliverables – new CEO appointed, board restructure ▪ Feasibility Update Q3 / Q4 2024 For personal use only ▪ Ongoing optimisation continues to reduce project capital intensity and mitigate construction risks . ▪ Currently levelling project delivery timetable and reten
Slide 20: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price Performance ASX Code ASX.KGL For personal use only Share Price (close 5/07/24) 11.5 cents 52 week low / high 9.7 / 19.0 cents Shares outstanding 567.3 M Options on issue 234k Market capitalisation $65.2M Cash (30 June 2024) A$6.5M Debt Capital Nil Ent
Slide 21: Agenda
1. Jervois Project Overview • Project and Market Highlights • Company Strategy For personal use only • Corporate Snapshot 2. Equity Raising 3. Summary of Material Risks 4. Appendices A. Key Risk Factors B. Copper Market Overview C. Competent Person Disclosure D. Foreign Selling Disclosure KGL Resour
Slide 22: Equity Raising Summary
Equity Raising Summary ◼ Equity raising to raise up to A$15.1 million, comprising: a 4 for 15 pro-rata traditional non-renounceable entitlement offer (Offer) • In respect of KMP Investments Pte. Ltd., subject to compliance with Chapter 6 Offer Structure & Size Commitments for A$4.8 million For p
Slide 23: Equity Raising Summary
Equity Raising Summary For personal use only ◼ KGL’s largest shareholder, KMP Investments (31.69%), is supportive and has committed to take up their full entitlements under the Offer (totalling A$4.8 million) ◼ The table below details changes to shareholdings under varying shareholder participation
Slide 24: Funding and Pro-forma Capital Structure
Funding and Pro-forma Capital Structure Sources of Funds $ (Min) $(Max) Post Equity Key Information 5 July 2024 Raising Existing Cash Position (30 June 2024) 1 A$6.48m A$6.48m Min Raise Max Raise (A$6.0m) (A$15.1m) Entitlement Offer 2 A$6.0m A$15.1m For personal use only Share Price 1 A$0.115 A$0.11
Slide 25: Timetable
Timetable Event Date Announcement of the Offer 8 July 2024 "Ex" date 10 July 2024 For personal use only Record date for Offer (7.00pm (Sydney time)) (Record Date) 11 July 2024 Offer Booklet and personalised Entitlement and Acceptance Forms despatched, and announcement of despatch 16 July 2024 Offer
Slide 26: Agenda
1. Jervois Project Overview • Project and Market Highlights • Company Strategy For personal use only • Corporate Snapshot 2. Equity Raising 3. Summary of Material Risks 4. Appendices A. Key Risk Factors B. Copper Market Overview C. Competent Person Disclosure D. Foreign Selling Disclosure KGL Resour
Slide 27: Summary of Key Risks
Summary of Key Risks Material Business Risks General Risk Factors Future Capital Raisings Market For personal use only Exploration Taxation Feasibility and Development Liquidity Regulatory Securities Investment Occ Health and Safety Economic Factors Limited Operating History Accounting Standards Key
Slide 28: Agenda
1. Jervois Project Overview • Project and Market Highlights • Company Strategy For personal use only • Corporate Snapshot 2. Equity Raising 3. Summary of Material Risks 4. Appendices A. Key Risk Factors B. Copper Market Overview C. Competent Person Disclosure D. Foreign Selling Disclosure KGL Resour
Slide 29: Appendix A: Key Risk Factors
For personal use only Appendix A Key Risk Factors KGL Resources Limited Investor Presentation
Slide 30: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors Activities in KGL and its controlled entities, as in any business, are subject to risks which may impact on KGL’s future performance. There are a number of factors, both specific to KGL and of a general nature, which may affect th
Slide 31: Key Risk Factors: Exploration Risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Exploration Risk For personal use only The success of KGL depends on the delineation of economically mineable reserves and resources, access to required development capital, movement in the price o
Slide 32: Key Risk Factors: Regulatory Risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Regulatory Risk (cont…) Mining and exploration tenements are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the For personal use onl
Slide 33: Key Risk Factors: Resource and Reserve Estimate Risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Resource and Reserve Estimate Risk For personal use only Resource and reserve estimates are expressions of judgement based on knowledge, experience and industry practice. These estimates were appro
Slide 34: Key Risk Factors: Copper Price and Exchange Rate
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Fluctuations in Copper Price and Australian Dollar Exchange Rate For personal use only The copper mining industry is competitive. There can be no assurance that copper, silver and gold prices will
Slide 35: Key Risk Factors: General Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors GENERAL RISK FACTORS 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 r
Slide 36: Key Risk Factors: General Risk Factors (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors GENERAL RISK FACTORS (cont..) 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 For persona
Slide 37: Appendix C: Competent Person Disclosures
For personal use only Appendix C Competent Person Disclosures KGL Resources Limited Investor Presentation
Slide 38: Competent Persons' Statement and Disclaimer
Competent Persons’ Statement and Disclaimer Competent Person Statement The Jervois resources information were first released to the ASX on 23 May 2024 and complies with JORC 2012. The company For personal use only confirms that it is not aware of any new information or data that materially affects t
Slide 39: Jervois Mineral Resource
Jervois Mineral Resource For personal use only KGL Resources Limited Investor Presentation 39
Slide 40: Appendix D: Foreign Selling Disclosures
For personal use only Appendix D Foreign Selling Disclosures KGL Resources Limited Investor Presentation
Slide 41: Foreign Selling Restrictions: Australia
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offer
Slide 42: Foreign Selling Restrictions: Singapore
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offer
Slide 43: Foreign Selling Restrictions: United States
Foreign Selling Restrictions United States This Offer Booklet, the accompanying Entitlement and Acceptance Form, and the accompanying ASX Announcements (including the Company's Investor Presentation included as part of this Offer Booklet) do not constitute an invitation or offer to sell, or the soli
Slide 44: Foreign Selling Restrictions: Germany and Ireland
Foreign Selling Restrictions Germany This document has not been, and will not be, registered with or approved by any securities regulator in the Germany. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in Germany except in circumstances that do not r