Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — London Mines & Money 2017
34 slides from Pt Merdeka Copper Gold Tbk's conference presentation, Nov 27, 2017
Slide 1: Indonesia’s Next World Class Mining Company
Indonesia’s Next World Class Mining Company Colin Moorhead, CEO London Mines & Money November 27, 2017 PT Merdeka Copper Gold Tbk. 1
Slide 2: Disclaimer
Disclaimer PT Merdeka Copper Gold Tbk (“PT MCG”) make no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. All statements in this document, other than statements of historical facts that address future timings, activities, events and
Slide 3: Merdeka Update - November 2017
Merdeka Update - November 2017 1. Company Overview 2. Q3 2017 Update 3. Tujuh Bukit Mine 4. Development Projects 5. FND Takeover Bid PT Merdeka Copper Gold Tbk. 3
Slide 4: 1. Company Overview
1. Company Overview Listed Indonesian Stock Exchange - MDKA 1. Gold Heap Leach Project 2. Porphyry Copper Project 3. Growth Options Low Capex, Low Opex & Low Risk Mass Underground Copper / Gold / Identified and executable options to Funded, Permitted and Constructed Molybdenum fast track overall gro
Slide 5: Corporate Overview: Capital, Ownership & Management Structure
Corporate Overview Capital, Ownership & Management Structure Corporate Structure Current Board of Directors Primary Listing • Indonesia Stock Exchange (MDKA.IJ) Adi Sjoekri President Director • Listed in June 2015, first IDX non- Colin Moorhead Vice President Director & CEO production mining company
Slide 6: Strategic Indonesian Shareholders
Company Overview Strategic Indonesian Shareholders Merdeka is over 50% owned by three strategic Indonesian shareholders • Saratoga Group (Edwin Soeryadjaya), Garibaldi “Boy” Thohir and Provident Group ‒ Permitting, Government & Community Relations, Project Funding ‒ Resolved and settled all historic
Slide 7: Experienced and Proven Management Team
Company Overview Experienced and Proven Management Team • Mr. Colin Moorhead, Chief Executive Officer – 30 years mining industry experience, formerly EGM Resources Newcrest Mining Limited – Heap Leach, Open Pit, Underground, Gold and Gold / Copper experience (Telfer, Gosowong, Cadia / Ridgeway) – Cu
Slide 8: Tenure
Tenure Merdeka’s ownership structure is transparent Merdeka have unequivocal and clear title over the Tujuh Bukit Project • Very different ownership structure compared to Intrepid which was a nominee agreement with two individuals • Global banks have completed Due Diligence and lent US$150 million t
Slide 9: Location
Location Project Location, Banyuwangi Regency, East Java, Indonesia PT Merdeka Copper Gold Tbk. 9
Slide 10: A good post code for big deposits! Mineral district - orientation
A good post code for big deposits! Mineral district - orientation Kuta (Porphyry/HS + IS -LS) Sunda-Banda Volcanic Arc – arc normal structures and age defined mineral belt PT Merdeka Copper Gold Tbk. 10 Figure 1
Slide 11: Tujuh Bukit IUP + Magnetics
Tujuh Bukit IUP + Magnetics - 4998 Ha, Initial currency through to 2030. TMI RTP Salakan Katak Prospect Pulau Merah Tujuh Bukit IUP Produksi PT Merdeka Copper Gold Tbk. 11
Slide 12: Oxide Project Reserves and Porphyry Inferred Resource
Oxide Project – P+P Reserves “UHGZ” - Subset of Porphyry Inferred Resource 36 Mt @ 1.03 g/t Au & 21 g/t Ag 200-300 Mt @ 0.7-0.9 % Cu + 0.7-0.9 g/t Au 0 200m Long Section Looking East PIT A PIT E PIT B PIT C Tujuh Bukit Porphyry – All Inferred Resources 1.9 Bt @ 0.5 %Cu + 0.5 g/t Au + 93 ppm Mo PT Me
Slide 13: September Quarter Update - Highlights
September Quarter Update - Highlights 1. Record production of 53,260 ounces of gold at an all in sustaining cost of US$416 per ounce. 2. Nameplate production rate of 4 million dry tonnes crushed and staked achieved in August 2017. 3. All operating and cost parameters in line with or better than plan
Slide 14: September 2017 Quarter – 53,230 Ounces Produced
September 2017 Quarter – 53,230 Ounces Produced Unit June Qtr 2017 September Qtr 2017 Variance Open Pit Mining Ore Mined Tonnes 924,263 1,172,340 2,429,488 Waste Mined Tonnes 921,249 1,546,867 2,954,436 Mined Grade Au g/t 1.78 2.64 2.12 Au g/t 6.70 8.45 7.51 Contained Metal Au oz 52,975 99,337 165,3
Slide 15: September 2017 Quarter - US$416/oz AISC
September 2017 Quarter - US$416/oz AISC Unit Sep Qtr 2017 YTD 2017 Unit Sep Qtr 2017 YTD 2017 Mining costs US$m 7.612 11.724 $/oz 143 158 Processing costs US$m 3.939 6.271 $/oz 74 84 General & admin costs US$m 2.578 4.208 $/oz 48 57 Inventory movements US$m (1.646) (3.022) $/oz (31) (49) Silver cred
Slide 16: 3. Tujuh Bukit Oxide Mine - Update
3. Tujuh Bukit Oxide Mine - Update Excellent Q3 Results confirm operational and cost parameters PT Merdeka Copper Gold Tbk. 16
Slide 17: Oxide Heap Leach Mine
Oxide Heap Leach Mine World class financial and operating parameters Capital Cost Summary USD m Operating Statistics Value Pre-production capital (incl. contingency) 137 Mining rate (ore Mt per annum) 4 Sustaining (future) capital (incl. contingency) 61 Gold Total 198 Met recovery oxide % 82 Operati
Slide 18: Oxide Heap Leach Mine: Indicative Production Profile and Cash Costs
Oxide Heap Leach Mine Indicative Production Profile and Cash Op. Costs incl. royalties • The following table reflects a constrained 4Mtpa operation. Potential to grow the ore reserve and increase the production rate after year 3. Production (koz) Cash Operating Costs1 (US$/oz) 600 800 700 500 600 40
Slide 19: Open Pit Mining - Pit B West
Open Pit Mining - Pit B West PT Merdeka Copper Gold Tbk. 19
Slide 20: Aerial view of the Ore Preparation Plant
Aerial view of the Ore Preparation Plant PT Merdeka Copper Gold Tbk. 20
Slide 21: Aerial view of the Heap Leach Pad
Aerial view of the Heap Leach Pad PT Merdeka Copper Gold Tbk. 21
Slide 22: Aerial view of the ADR Plant
Aerial view of the ADR Plant PT Merdeka Copper Gold Tbk. 22
Slide 23: New employee recreational and messing facilities
New employee recreational and messing facilities PT Merdeka Copper Gold Tbk. 23
Slide 24: Rehabilitation works well advanced across the site
Rehabilitation works well advanced across the site PT Merdeka Copper Gold Tbk. 24
Slide 25: 4. Tujuh Bukit Development Projects Pipeline
4. Tujuh Bukit Development Projects Pipeline Desktop Concept Pre Feasibility Feasibility Construction High Grade Boxcut & Silver Decline Regional Porphyry Oxide Expl. Project Expansion Katak HLP Expansion Candrian Exploration Inferred Resource Indicated Resource Measured & Ind. Measured & Ind. Pre-C
Slide 26: Oxide Expansion Study
Oxide Expansion Study PT Merdeka Copper Gold Tbk. 26
Slide 27: Current reserves only exploit 50% of the oxide resource
Current reserves only exploit 50% of the oxide resource • Ore Reserves are constrained by the designed 36Mt heap leach pad capacity a 9 year mine life. • Expanding the heap leach pad capacity to 50Mt is estimated to cost ~$17M LOM and enable the ore stacking rate to be increased from 4 to 6Mtpa. • T
Slide 28: 4. Porphyry Underground Project
4. Porphyry Underground Project Kencana Portal, Gosowong circa 2005 28 PT Merdeka Copper Gold Tbk.
Slide 29: Porphyry Project
Porphyry Project Initial focus on Upper High Grade Zone within Global Resource Upper High Grade Zone ~200-300Mt @ 0.7-0.9% Cu & 0.7-0.9 g/t Au Inferred Mineral Resource 1,900Mt @ 0.5% Cu & 0.5 g/t Au Ref www.merdekacoppergold.com/resources_reserves PT Merdeka Copper Gold Tbk. 29
Slide 30: World Class Mineral Resource
World Class Mineral Resource Comparison with other regional projects 1.2% Golpu 1.0% Grasberg Copper grade 0.8% (%) Northparkes Tujuh Bukit Global Tujuh Bukit Upper High 0.6% Resource Grade Zone Oyu Tolgol Tampakan 0.4% Batu Hijau Frieda River Ok Tedi Cadia Valley Didipio Namosi Kingking 0.2% 0.0% 0
Slide 31: Staged Development Concept
Staged Development Concept 1. Subdivide UHGZ into 4 x “digestible chunks” of ~80Mt each • 4 Blocks (East, North, West, South) • Complete staged studies in to the Mining blocks 2. Prioritize highest value block (East) 3. Exploration decline designed to provide underground access for; 1. Resource defi
Slide 32: Next Steps
Next Steps 1. Complete updated concept study (Q4,2017) 2. Pre-engineering, permitting and underground mining contract award (Q4,2017) 3. Boxcut establishment and contractor mobilization (Q4, 2017) 4. Decline development 2018 5. Drilling program and PFS 2018/2019 6. Maiden Ore Reserve supported by PF
Slide 33: 5. FND Takeover Bid
5. FND Takeover Bid • Special Purpose Vehicle, Eastern Field Developments, jointly owned by Merdeka, Provident and Saratoga have launched a cash takeover bid for Finders Resources Limited (ASX:FND) • Eastern Field believes it can utilise the experience and capabilities gained from the successful dev
Slide 34: Terima kasih!
Terima kasih! 1. Record production of 53,260 ounces of gold at an all in sustaining cost of US$416 per ounce. 2. Nameplate production rate of 4 million dry tonnes crushed and staked achieved in August 2017. 3. All operating and cost parameters in line with or better than plan year to date. 4. Achiev