KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Investor Presentation (2016)
28 slides from KEFI Gold and Copper's investor presentation, 2016
Slide 1: Paving the Way for Mining in Ethiopia
PAVING THE WAY FOR MINING IN ETHIOPIA A TOP 10 GROWTH COUNTRY Gold and Copper Arabian-Nubian Shield Pre-eminent Local JV Partners Ethiopia is positioned to make mining one of its growth sectors KEFI is positioned to become the largest Ethiopian metal producer and explorer An East-African mining lead
Slide 2: Disclaimer
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
Slide 3: Capital Structure
CAPITAL STRUCTURE Capital structure (fully-diluted) (diluted for Contractor Agreements and Options) Odey Ausdrill and Lyco Board Public 25% 14% 5% 56% ARTAR KEFI Minerals plc Ethiopia Al Rashid Government 60% 40% 70-80% 20-30% KSA JV Co. Ethiopia JV Co. Dev Bank Ethiopia 1 of several Potential Minin
Slide 4: The Arabian Nubian Shield
KEFI MINERALS IN THE ARABIAN NUBIAN SHIELD (ANS) The Arabian Nubian Shield There are over 5000 documented ancient workings for gold and base metals in the ANS. Saudi Arabia currently has 6 operating gold mines and 2 base-metal mines Major deposits in the ANS include: Sukari (13Moz Au) KEFI is the on
Slide 5: Known Gold Occurrences in Under-Explored Ethiopia
KNOWN GOLD OCCURENCES IN UNDER-EXPLORED ETHIOPIA Disclaimer Artisanal mines and prospects (yellow dots) and the major gold and copper deposits in Ethiopia. 3Moz Lege Dembi operation going underground. Tulu Kapi 2Moz is fully permitted, development ready and has Government as partner with KEFI. Jilay
Slide 6: Ethiopia - A Top 10 Growth Country
ETHIOPIA - A TOP 10 GROWTH COUNTRY Ethiopia A country on the rise HQ for African Union, 15 years of 7-10% GDP growth, deemed to be safer with a pro-development culture, than all neighbours Africa’s fastest growing economy despite recent unrest (2015 - 10.2% Real GDP growth)1 Strong interest in Ethio
Slide 7: Ethiopian Growth and Transformation Plan
ETHIOPIAN GROWTH AND TRANSFORMATION PLAN TULU KAPI - FEBRUARY 2015 MINERAL RESOURCE Recent Actions by Government: May 2015: National Elections triggered 5-year Growth and Transformation Plan October 2016: Third occurrence in 3 years of social unrest led to declaration of 6-month State of Emergen
Slide 8: Tulu Kapi Open Pit: Financially Robust
TULU KAPI OPEN PIT FINANCIALLY ROBUST Tulu Kapi A financially robust project The operation is strong financially Production and AISC At the 6 year gold price low of $1,050/oz, open pit AISC Production 134 128 project still generates an IRR of 15% 124 120 111 1,500 105 105 93 A LOM AISC2 of $773/
Slide 9: Tulu Kapi Open Pit + Underground Mine Base Case
TULU KAPI TULU KAPI - FEBRUARY 2015 MINERAL RESOURCE OPEN PIT + UNDERGROUND MINE BASE CASE The underground provides strong upside Potential production profile (Koz Au)1 Underground Open cut 16 22 Thick, high-grade gold zones below open pit 30 57 39 124 120 134 128 105 105 93 111 Underground mine
Slide 10: Tulu Kapi Near Mine Exploration: Guji-Komto Belt
TULU KAPI NEAR MINE EXPLORATION: GUJI-KOMTO BELT NEAR-TERM GOLD PRODUCTION OPPORTUNITIES KEFI can quickly add to Tulu Kapi open- pit gold production by developing: • Shallow, low cost gold resources within trucking distance of TK processing plant or as a stand-alone heap leach operations • Potential
Slide 11: Tulu Kapi - A Low Cost and Robust Project
TULU KAPI - A Initial Operation LOW COST - Tulu PROJECT AND ROBUST Kapi in Ethiopia A low cost project Initial capex / LOM production ($/oz) Cost competitive in terms of 104 both capital intensity and All- 108 132 In Sustaining Costs, when 151 169 compared to African peers 196 217 0 50 100 150 200 2
Slide 12: Valuation of Initial Operation
VALUATION of INITIAL OPERATION Valuation of Initial Operation UNDERVALUED COMPARED to AFRICAN PEERS Undervalued compared to African peers EV / Reserves Average excl. min and max. = $183/oz Average excl. min and max. = $162/oz 610 445 642 315 258 237 186 184 182 182 113 46 46 323 289 269 232 181 167
Slide 13: Contacts
Contacts Harry Anagnostaras-Adams, Executive Chairman John Leach, Finance Director Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Email: info@kefi-minerals.com Website: www.kefi-minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli
Slide 14: Directors of KEFI Minerals plc
Directors of KEFI Minerals plc 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-base
Slide 15: Tulu Kapi Development Team
Tulu Kapi Development Team 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 Afr
Slide 16: Tulu Kapi Resources and Reserves
TULU KAPI RESOURCES AND RESERVES TULU KAPI - FEBRUARY 2015 MINERAL RESOURCE 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 ele
Slide 17: Tulu Kapi Underground Mine Potential
TULU KAPI UNDERGROUND MINE POTENTIAL SUBSTANTIAL FURTHER RESOURCE POTENTIAL Gold mineralisation may extend deeper and 600 to 800m further to the north - potential for 1Moz below open pit BASE CASE - EXISTING RESOURCE Ore mined 320,000 tpa at 5.2g/t Life of Mine 4 years Gold production 47,600 oz p.a.
Slide 18: Open Cut Mining Methods
OPEN CUT MINING METHODS • KEFI has improved the head grade of the mined ore from 1.8g/t to 2.1g/t by applying more effective mining techniques • These techniques take advantage of the strong visual control as the ore is “white” in colour (albite alteration) and waste is “green” • The mean vertical t
Slide 19: Tulu Kapi Near Mine Exploration: VMS District
TULU KAPI NEAR MINE EXPLORATION: VMS DISTRICT NOT EXPLORED SINCE 1970’s The Tulu Kapi gold deposit and regional prospects represents a multi-million ounce gold and high grade Cu-Au Volcanogenic Massive Sulfide (“VMS”) district High grade Cu identified in new VMS prospect within 50km of Tulu Kapi Min
Slide 20: Saudi Arabia: 40% JV with Al Rashid Family Artar
SAUDI ARABIA: 40% JV WITH AL RASHID FAMILY “ARTAR” 20
Slide 21: Saudi Mineral Occurrence Data (MODS) Base
SAUDI MINERAL OCCURRENCE DATA (MODS) BASE 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 main “MODS” in the Arabian-Nubian Shield. This has allowed KEFI to rapidly
Slide 22: Exploration Licences and Applications in KSA
EXPLORATION LICENCES AND APLICATIONS IN KSA 22
Slide 23: Saudi Arabia (KEFI 40%): Executing to Realise Exploration Upside
SAUDI ARABIA (KEFISaudi 40%) Arabia (KEFI 40%) ExecutingExecuting to realise exploration upside to realise exploration upside Jibal Qutman Hawiah Pipeline of Targets 99km2 EL was granted in July 95km2 Hawiah EL granted in Dec Over 2,000km2 under application 2012. Delineated initial JORC 2015
Slide 24: Jibal Qutman Heap Leach Project
JIBAL QUTMAN HEAP LEACH PROJECT INDICATED INFERRED Tonnes Au (g/t) ounces Tonnes Au (g/t) ounces May 2015 OXIDE 8,336,176 0.86 229,165 OXIDE 2,806,468 0.64 58,164 JORC (2012) SULPHIDE 9,706,111 0.86 269,323 SULPHIDE 7,606,335 0.72 176,392 TOTAL 18,042,287 0.86 498,488 TOTAL 10,412,803 0.7 234,556 Ou
Slide 25: Jibal Qutman District: Licence Applications
JIBAL QUTMAN DISTRICT: LICENCE APPLICATIONS JQ District ELA 1 JQ District ELA 4 Quartz Vein style mineralisation in granites poor Quartz Vein style outcrop, sand mineralisation in cover granites 25 rock chips collected (surface samples into the dotted area) Gold grade range from 1.0g/t to 66.5g/t Av
Slide 26: Hawiah: Large Undrilled VMS Gossan
HAWIAH : LARGE UNDRILLED VMS GOSSAN KEFI has an additional 7 ELAs in the Wadi Bidah Belt which cover cumulative +8km of Au (+Cu) gossans. BRGM drilling in 1980’s on these gossans total 1.24Mt at 6.37 g/t Au for 254,000 oz Au. 2km long, 300m from surface SP anomaly “blue” >125mV Hawiah Gossan is 6km
Slide 27: Wadi Bidah VHMS Belt: 120Km Long
WADI BIDAH VHMS BELT: 120Km LONG and +30 Cu-Au WORKINGS AND OCCURENCES Hawiah EL (red) and 7 ELAs in the Wadi Bidah VHMS Belt Same name and similar geology to the Wadi Bidah J.Sayid belt in Eritrea. Evaluated by BRGM in the Hassai ‘80s, mainly for gold in gossans to 40m depth. Wadi Bidah Very few ho
Slide 28: High Grade Gold
HIGH GRADE GOLD An example of the +10 ELAs where high grade gold is present in ancient workings at surface. Trenching and drilling will lead to a rapid resource estimation and development 28