Keras Resources PLC · LSE:KRS
Keras Resources — Ferrex — Investor Presentation (October 2013)
26 slides from Keras Resources's investor presentation, October 2013
Slide 1: Investor Presentation – October 2013 – Iron Ore and Manganese Development in Africa
INVESTOR PRESENTATION – OCTOBER 2013 - IRON ORE AND MANGANESE DEVELOPMENT IN AFRICA
Slide 2: Disclaimer
Iron ore and manganese development in Africa Disclaimer IMPORTANT INFORMATION These presentation slides and the accompanying verbal presentation (“Presentation Materials”) are being provided in connection with a marketing presentation by Ferrex Plc (the “Company”) and have been prepared by the Compa
Slide 3: Corporate Overview
Iron ore and manganese development in Africa Corporate Overview AIM quoted iron ore (‘Fe’) and manganese (‘Mn’) development PROFILE company focussed in Africa Iron Ore: Mebaga, Gabon & Malelane, South Africa PROJECTS Manganese: Nayega, Togo & Leinster, South Africa To advance low capex deposits, nea
Slide 4: Key Data
Iron ore and manganese development in Africa Key Data MARKET AIM 12 MONTH HIGH/LOW 2.50/ 1.125p TICKER FRX SHARES IN ISSUE 805,179,963 SHARE PRICE 1.88p (05.09.13) NOMAD finnCap MARKET CAP £15.1m (05.09.13) BROKER finnCap Shareholder Analysis Share Price 0.00% 20.71% Shareholders >15% 47.02% Shareho
Slide 5: Proven Track Record in Africa
Iron ore and manganese development in Africa Proven Track Record in Africa “The Board has a proven record of building value for shareholders through developing assets into production and successfully completing trade sales” Feasibility Studies Completed and Mines Developed Eureka Gold Mine, Zimbab
Slide 6: Market & Demand
Iron ore and manganese development in Africa Market & Demand Iron ore and manganese are the two main ingredients in steel making BHP Billiton, Rio Tinto and Vale currently control 75% of the seaborne iron ore trade Long term iron ore demand and price is supported by: Demand growth driven fro
Slide 7: Corporate Structure
Iron ore and manganese development in Africa Corporate Structure 7
Slide 8: Nayega Manganese Project – Togo – Near Term Production
Iron ore and manganese development in Africa Nayega Manganese Project – Togo - Near Term Production Measured & Indicated Land Position Resource 92,390 ha 5 exploration licences in 11Mt @ 13.1% northern Togo Mn Low Capex Low Opex US$15m US$2/dmtu FOB Initial estimate for 250,000 Initial estimate for
Slide 9: Nayega Manganese Project - Togo
Iron ore and manganese development in Africa Nayega Manganese Project - Togo Early cashflow targeted through the rapid development of a low-capex, open pit, 250,000tpa manganese operation Focussed on developing an open pit, zero strip mining operation Simple beneficiation route using washing, sc
Slide 10: Key Elements of Operation
Iron ore and manganese development in Africa Key Elements of Operation Tonnes Mn Geology Measured Resource 2,000,000 17.1% Indicated Resource 9,000,000 12.2% Measured and Indicated Resources of 11Mt at Measured + Indicated Resource 11,000,000 13.1% 13.1%Mn calculated Logistics Mining Back haul u
Slide 11: Mebaga DSO Iron Ore Project - Gabon
Iron ore and manganese development in Africa Mebaga DSO Iron Ore Project - Gabon Land Position DSO Material 90 – 150Mt @ 309 sq km 35 – 65% Fe 82 per cent holding ‘Oxide Exploration Target’ over 50% of known strike Best assay 62.7%Fe Initial Mapping and First two holes Drill Programme now intersect
Slide 12: Mebaga Iron Ore – Exploration Programme
Iron ore and manganese development in Africa Mebaga Iron Ore – Exploration Programme Close proximity to infrastructure to enable rapid advancement of DSO resource potential as Ferrex’s 2nd development project Previous deep pitting results by BRGM include: 27m @ 58.4% Fe 18.5m @ 57.5% Fe 10.5
Slide 13: Exploration Upside
Iron ore and manganese development in Africa Exploration Upside Located old Rio data that suggests DSO material exists to the east of the current drill area Mapping now underway in this second target area Total exploration target for 11km of 20km of BIF of 630Mt to 1,050Mt @ 25 – 65% Fe Incl
Slide 14: Scoping Study and Infrastructure
Iron ore and manganese development in Africa Scoping Study and Infrastructure Gabon has excellent infrastructure Sealed highway 30km from site New 90kV power line located 30km from site to be fed by new 52MW hydro scheme currently under construction Trans Gabon rail, built for 10mtpa, curren
Slide 15: Mebaga Iron Ore Peer Comparison
Iron ore and manganese development in Africa Mebaga Iron Ore Peer Comparison Company Exchange Location Comments Resource/ Market Cap EV/t Exploration (GBP)* Contained Fe Target (GBP) BC Iron ASX Australia In Production 81mt @ 54% 320 million 7.32 @ 4 mtpa African iron Republic of Takeover 2012, 44mt
Slide 16: Malelane Iron Ore Project – South Africa
Iron ore and manganese development in Africa Malelane Iron Ore Project – South Africa Exploration Target Inferred Resource 139Mt @ 37% Fe 1,60028-30% – 2,000Mt Fe Modelled on 1.1km of 14km Incl 900 – 1,200 Mt 36-38%Fe NPV (Pre-Tax) CAPEX US$139m US$523m (10%) & IRR (Pre-Tax) OPEX US$53.5/t 72% FOB P
Slide 17: Malelane Iron Ore Project - Geology
Iron ore and manganese development in Africa Malelane Iron Ore Project - Geology Malelane Inferred Resource at various cut-offs Cut- Tonnes Fe CaFe Al2O3 SiO2 P S LOI Off (m) % % % % % % 1000 (%) 50 4.9 52.2 56.7 1.4 10.8 0.08 0.018 8.0 40 50.9 44.3 47.7 2.0 22.3 0.07 0.020 7.3 20 138.9 36.9 40.1 4.
Slide 18: Malelane Scoping Study Results & Development
Iron ore and manganese development in Africa Malelane Scoping Study Results & Development Pre-Feasibility Study Larger, 3rd development project with strong economics – robust NPV, IRR and low capital Project Upside intensity, as well as significant resource upside Starter DSO operation potential w
Slide 19: Malelane Capital Intensity
Iron ore and manganese development in Africa Malelane Capital Intensity Adriana Lac Otelnuk Grange Resources Southdown Gindalbie Karara BHP Billiton Outer harbour expansion Macarthur Minerals Lake Giles Aquila West Pilbara Black Iron Shymanivske ArcelorMittal Mont Wright Oceanic Hopes Advance New Mi
Slide 20: Malelane – The Bigger Picture
Iron ore and manganese development in Africa Malelane – The Bigger Picture Exploration target could support a significantly larger operation than outlined in the Scoping Study with >20mtpa possible Ferrex to investigate magnetic lows (possible higher grade) and old Dumanene mine area for large t
Slide 21: Financing the Future
Iron ore and manganese development in Africa Financing the Future Looking at both project and corporate financing opportunities to fast-track Ferrex’s growth whilst minimising shareholder dilution: Nayega Manganese - Togo In discussions with a development bank to provide 100% debt via a struct
Slide 22: Portfolio - Key Milestones
Iron ore and manganese development in Africa Portfolio - Key Milestones Completed Milestones 2012 Value Drivers Nayega Manganese Project – Togo Nayega Manganese Project – Togo Resource defined 7.3Mt at 14.7% Secure exploitation permit Positive economics calculated – low capex and Complet
Slide 23: Development Summary
Iron ore and manganese development in Africa Development Summary Establishing its position as a leading low-capex iron ore and manganese exploration and development company with near-term production potential in Africa Nayega Early cashflow to fund and develop DSO iron ore portfolio Togo in Africa M
Slide 24: Contacts
Iron ore and manganese development in Africa Contacts Dave Reeves Felicity Edwards/ Elisabeth Cowell Ferrex PLC St Brides Media & Finance Ltd Email: dave@ferrexplc.com Email: felicity@sbmf.co.uk elisabeth@sbmf.co.uk T: +44 (0)207 236 1177 Elizabeth Johnson/ Joanna Weaving FinnCap Limited T: +44 (0)2
Slide 25: Board
Iron ore and manganese development in Africa Board Brian Moritz Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Non-Executive Chairman Thornton’s Capital Markets Team which floated over 100 companies on AIM under his chairmanship. In 1995 he retir
Slide 26: Management Team
Iron ore and manganese development in Africa Management Team Mark Styles Mark is a geologist with a first class honours degree obtained from the University of Western Exploration Manager Australia and 20 years experience in exploration and project management worldwide. His experience covers a range