Kgl Resources Limited · ASX:KGL
Kgl Resources — Kentor Gold — Investor Presentation (July 2012)
49 slides from Kgl Resources's investor presentation, Jul 17, 2012
Slide 1: Capital Raising Presentation
For personal use only Kentor Gold Capital Raising Presentation 17 July 2012
Slide 2: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 2
Slide 3: Investment Highlights
Investment Highlights For personal use only Advanced projects with first gold production expected mid-2012 Diversified portfolio with addition of Australian assets Strong exploration upside on all assets Andash project provides further upside: – High grade concentrate highly sought after – N
Slide 4: Capital Raising - Overview
Capital Raising - Overview For personal use only Capital raising to raise up to $26.7m by way of: – an Institutional Placement of 10.0m shares to raise $6.2m; and – a 5 for 17 Non-Renounceable Entitlement Offer to raise up to $20.5m Offer size and Placement shares will be eligible to participate
Slide 5: KMP Investments
KMP Investments For personal use only Overview of KMP Investments KMP is a subsidiary of the Salim Group which is Indonesia's largest conglomerate. The group is a diverse transnational enterprise covering (amongst other) the areas of: – Agriculture, Food, Automobile Manufacturing, Building Materia
Slide 6: KMP Investments - Potential Shareholding
KMP Investments For personal use only KMP’s potential shareholding1 Shares held by KMP KMP’s percentage ownership in Kentor Existing holding (prior to capital raising) 15.5m 14.7% Holding following the Placement (but before Entitlement Offer) 23.1m 19.9% Holding following Entitlement Offer if KMP ta
Slide 7: Financial – Historical Expenditure
Financial – Historical Expenditure For personal use only Cash Balance Dec 2010 $71.4m Andash Development $15.4m Acquisition Jinka Minerals $14.9m Purchase & Move Indee Heap Leach Plant $2.6m Commence Murchison Plant Construction $7.9m Pre-operating costs $7.9m Murchison Exploration $3.0m Jervois Exp
Slide 8: Financial – Source and Use of Funds
Financial – Source and Use of Funds For personal use only Expenditure to June 2013 Source of Funds Finalise Murchison Stage 1 $6.7m Cash on Hand $9.9m Murchison Mine Development & Asset sales* $5.5m $1.7m Exploration Capital Raising (net of costs) ~$25.0m Heap Leach Feasibility & Capital $8.6m Jervo
Slide 9: Indicative Timetable
Indicative Timetable For personal use only Timetable Trading Halt requested Tuesday, 10 July 2012 Capital raising announced to ASX and Kentor shares recommence trading Tuesday, 17 July 2012 Shares commence trading ex entitlement Thursday, 19 July 2012 Settlement and allotment of Placement Monday, 23
Slide 10: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 10
Slide 11: Company Overview
Company Overview For personal use only Kentor Gold Limited (“Kentor”) is an Australian-based gold explorer and developer with projects located in Australia (Murchison and Jervois) and the Kyrgyz Republic (Andash). Kentor expects to commence gold production in CY2012 through its Burnakura project in
Slide 12: Corporate Structure
Corporate Structure For personal use only KENTOR GOLD 80% 100% Andash Mining Company (Kyrgyz Republic) Jinka Minerals (Australia) 100% 100% 100% Andash Jervois Murchison Gold Copper Copper Silver Gold Gold Lead Zinc Kyrgyz Republic X Jervois X Murchison X *Kentor also has a 100% owned subsidiary, Ke
Slide 13: Kentor - Resources
Kentor - Resources For personal use only Grade Grade Grade Gold Copper Silver Tonnes (mt) Au g/t Cu% Ag g/t (oz) (t) (Oz) Andash Inferred 0.38 0.93 0.25 11,350 950 Jervois Inferred 11.9 1.3 25.2 150,500 9,700,000 Burnakura Inferred 10.6 1.5 516,000 Gabanintha Inferred 4.5 1.4 203,000 Andash Indicate
Slide 14: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 14
Slide 15: Experienced Board
Experienced Board For personal use only John Barr AM, MAICD Chairman, Non-Executive (Former director Oxiana, Transurban, Acacia and Iluka Simon Milroy B.Eng (Mining) Managing Director (Formerly GM Project Development for Pan Aust, former Mining Manager Kingsgate) Hugh McKinnon B.Eng. (Mining) Execut
Slide 16: Senior Management
Senior Management For personal use only Gerard Kelly Patrick Baldock Chief Financial Officer General Manager – Murchison Gold Project Kelvin Russell General Manager Rudy Lennartz Corporate Finance Project Manager – Jervois Project Kylie Anderson Company Secretary Keith Mayes Chief Operating Officer
Slide 17: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 17
Slide 18: Murchison Project: Overview
Murchison Project: Overview For personal use only Acquired Jinka Minerals in 2011 Near term cash flow from commencement of production at Burnakura (cash positive in June 2013) Four stage production expansion process Existing plant and mining infrastructure Significant exploration upside 18
Slide 19: Murchison Gold Project
Murchison Gold Project For personal use only Burnakura 16,000m RC completed Gabanintha 2,000m RC completed 20 open pits and one underground mine 19
Slide 20: Federal North Pit
For personal use only Federal North Pit 20
Slide 21: Alliance Pit
For personal use only Alliance Pit 21
Slide 22: Lewis Pit
For personal use only Lewis Pit 22
Slide 23: NOA and Long Section Showing g/t * m Interval
NOA 7 and 8 Long Section Showing g/t * m Interval For personal use only 23
Slide 24: Four Stage Growth Strategy
Four Stage Growth Strategy For personal use only Stage 1 Refurbish and restart existing CIL Plant Stage 2 Add a heap leach circuit to treat low grade ore Stage 3 Expand plant to 500,000 tpa Stage 4 Flotation of copper gold ore 24
Slide 25: Mining in Reward Pit
Mining in Reward Pit For personal use only 25
Slide 26: Stage 1 - Restart CIL Plant
Stage 1 - Restart CIL Plant For personal use only Expand to 260,000 tpa Commence production in June 2012 Initial Production Rate 24,000 oz gold p.a. Capital cost $14.8m Stage 1 cash cost $1,224 / oz High grade production – 3 g/t gold 26
Slide 27: For personal use only
For personal use only 27
Slide 28: Crushing and Heap Leaching Equipment
Crushing and Heap Leaching Equipment For personal use only Note: Photographs of equipment on site at the Indee mine site 28
Slide 29: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 29
Slide 30: Jervois Copper Project
Jervois Copper Project For personal use only 100% Interest Granted Mining License Land Holding 38 km2 12km of prospective strike Outcropping Copper Ore 30
Slide 31: Jervois Project: Overview
Jervois Project: Overview For personal use only Copper and base metal project located in Chalcopyrite in drill core from Hole RJ 205 508m – 509m down hole Northern Territory Significant resource with major exploration upside Aggressive drilling program delivering positive results Initial met
Slide 32: Reward Ore Body Long Section
Reward Ore Body Long Section For personal use only Inferred Copper Resource of 11.9 Mt @ 1.3% Cu and 25.2 g/t Ag 150,500t of contained copper and 9.7 m oz contained silver 32
Slide 33: Exploration Results
Exploration Results For personal use only 2012 Exploration Results 60m @1.3 % Cu, 113.3 g/t Ag JMET 11 33.8m @ 1.79% Cu, 28.5 g/t Ag RJ201 53.5m @ 1.08% Cu, 24.9 g/t Ag RJ202 16.3m @ 1.87% Cu, 55.3 g/t Ag JMET3 10.3m @ 2.1% Cu, 13.3 g/t Ag JMET4 12m @ 3.72% Cu, 40.7 g/t Ag RJ206 4.2m @
Slide 34: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 34
Slide 35: Andash: Project Overview
Andash: Project Overview For personal use only Advanced gold-copper project Development ready status awaiting final approval Significant resource & reserve base Potential for further regional consolidation Developing one of the world’s lowest cost gold mines 35
Slide 36: Andash Project
Andash Project For personal use only Feasibility study complete (Mar 2010)1 9.9m @ 7.9g/t Au Independent Environmental Review to 8m @ 6 g/t Au go ahead – Project to proceed once review completed and agreement reached with local community One of the world’s lowest cost gold mines – Low Strip Op
Slide 37: Tien Shan Gold Belt, Talas Valley
Tien Shan Gold Belt For personal use only Talas Valley 37
Slide 38: Andash Project
Andash Project For personal use only 1.6mtpa to 3.2mtpa throughput Simple and conventional open pit and flotation plant 3 stage crush, grind, float process Average annual production: – 70,000 oz Au and 7,400t Cu – High grade concentrate 24.5% Cu and 72 g/t Au No deleterious elements Init
Slide 39: Andash Open Pit and Ore Body
Andash Open Pit and Ore Body For personal use only Wide ore body, bulk mining Outcrops Low strip ratio 0.72:1 Gold Grade (g/t) 39
Slide 40: Andash Long Section through Block Model
Andash Long Section through Block Model For personal use only Low strip ratio Base of pit follows footwall High grade starter pit Gold g/t 40
Slide 41: Andash Project Economics (KGL 80%)
Andash Project Economics (KGL 80%) For personal use only Cost component Phase 1 Phase 2 Cash cost US$29/oz Au (US$/t) (1.5mtpa) (3mtpa) (after Cu credits and royalty) Mining 3.46 3.46 Capital Cost US$96m1 Processing 8.62 7.09 G&A 3.38 1.69 Base Case NPV US$130m Total 15.46 12.24 – US$1,000/oz
Slide 42: Andash – Steps to production
Andash – Steps to production For personal use only 1. Completion of International Environmental Review 2. Obtain local community approval 3. Complete geotechnical investigation of plant site and tailings facility Concurrently complete approval of basic design and ESIA by government authorities (wa
Slide 43: Agenda
Agenda For personal use only 1. Capital Raising 2. Company Overview 3. Board and Management 4. Murchison Gold Project – Australia 5. Jervois Copper Gold Project – Australia 6. Andash Gold Copper Project – Kyrgyz Republic 7. Risks 43
Slide 44: Risks – General Investment Risks
Risks – General Investment Risks For personal use only General Investment Risks: Economic conditions and business climate in Australia and overseas, specifically the Kyrgyz Republic Stock market fluctuations Commodity price fluctuations Liquidity of shares and lack of an active market Dilu
Slide 45: Risks - Company Specific
Risks - Company Specific For personal use only Company Specific Risks: Kyrgyz Legislation The Kyrgyz Government and Parliament are considering a number of changes to legislation and regulations. Four draft laws, that may effect the areas of company taxation, royalties payable from gold operations,
Slide 46: Risks - Company Specific
Risks - Company Specific For personal use only Environmental Risks The operations and proposed activities of AMC are subject to laws and regulation concerning the environment. In the Kyrgyz Republic, the Company's operations and activities are subject to the environmental laws and regulations of t
Slide 47: Risks - Company Specific
Risks - Company Specific For personal use only Exploration, development, mining and processing risks The business of mineral exploration, project development and mining by its nature contains elements of significant risk. Ultimate and continuous success of these activities is dependent on many fac
Slide 48: Disclaimer
Disclaimer For personal use only Competent Persons Statements The information in this report that relates to mineral resource estimation for Gabanintha and Burnakura is based on work completed by Mr Jonathon Abbott is a member of the Australasian Institute of Mining and Metallurgy. Mr Abbott has s
Slide 49: For more information contact
For more information contact For personal use only Simon Milroy on +61 7 3071 9003 or visit www.kentorgold.com ASX Code: KGL Level 9, 40 Creek Street, Brisbane, QLD, AUSTRALIA 4000 Fax: +61 7 3071 9008 Forward-Looking Statements: This presentation includes certain “Forward-Looking Statements”. All s