Red Rock Resources plc · LSE:RRR
Red Rock Resources — Investor Presentation (April 2018)
23 slides from Red Rock Resources's investor presentation, April 2018
Slide 1: Red Rock Resources Plc Investor Presentation
RED ROCK RESOURCES Plc Investor Presentation London Stock Exchange AIM Listed: RRR www.rrrplc.com Investor Presentation Q2:2018
Slide 2: Resource Driven Growth Moving Forward
RESOURCE DRIVEN GROWTH MOVING FORWARD www.rrrplc.com Investor Presentation Q2:2018 2
Slide 3: Natural Resource Developer
Natural Resource Developer Strong Foundations Investment Upside • Manganese Production • Ferrosilicon Production • Colombian Gold Royalty 1.05p • Gold JORC Resource - Kenya • Gold Exploration - Ivory Coast • Significant Cash Reserves £5.3m • Oil Exploration - Benin • Future Opportunities Investment
Slide 4: Diverse Asset Portfolio
Steelmin Ltd. Bosnia Ivory Coast Four Points / Benin Colombia Migori Gold Pgt Kenya Jupiter Mines South Africa DIVERSE ASSET PORTFOLIO www.rrrplc.com Investor Presentation Q2:2018 4
Slide 5: Q2 Operations Update
Q2 Operations Update Jupiter Mines Steelmin Ltd IPO April 2018 (ASX:JMS) Initial Production - May ‘18 Buybacks Feb ’17 and Dec ’17, Feb ‘18 RRR Holds 22% equity stake JMS Stake Value to RRR ~A$7m Targeting annualized €7m EBITDA RRR Sold 20% = A$1.8m European Ferrosilicon Prices at Multiyear Highs Co
Slide 6: Jupiter Mines
Jupiter RRR: 0.95% Mines Manganese Producer – South Africa Iron Ore Assets- Western Australia www.rrrplc.com Investor Presentation Q2:2018 6
Slide 7: Jupiter Mines
Jupiter Mines • Leading Global Manganese Producer – 3rd Largest JMS Stake in Tshipi Mine • Relisted on ASX April 2018 as A$800m Company 49.9% Ntsimibintle Mining 37.1% OM Holdings 13% • One of Largest and Shallowest Resources Worldwide • 163MT @ 37.1% Mm + Top Cut of 145MT @ 31.58% • Experienced Man
Slide 8: RRR Jupiter Investment
RRR Jupiter Investment 18.5M £4.2M 0.95% Shares Valuation Stake $655k to RRR Feb ’17 Beyond IPO $300k to RRR Dec ’17 Examine Australian Iron Projects $501k to RRR Mar ‘18 Other M&A Opportunities $1,800k to RRR @ IPO Apr ‘18 Q3 ‘18 Buyback www.rrrplc.com Investor Presentation Q2:2018
Slide 9: FY2018 Results - Tshipi
FY2018 Results - Tshipi ZAR 7,333m ZAR 3,103m ZAR 1,400m 3.34MT (US$116m) (US$612m) (US$259m) Production Revenues EBITDA Cash BLUE CHIP MINING ASSET www.rrrplc.com Investor Presentation Q2:2018 9
Slide 10: Steelmin
RRR: 22% Steelmin Ferrosilicon Production – Bosnia www.rrrplc.com Investor Presentation Q2:2018 10
Slide 11: Steelmin Ltd.
Steelmin Ltd. RRR Equity Stake in Steelmin • Refurbishing Ferrosilicon Smelter Complex 22% • Built in Yugoslavia in Early 1970s • Two Electric Arc Furnaces on Site • Initial Furnace Expected to be Online – May 2018 • Total Capacity of 48,700t of Ferrosilicon + 9,700t of Microsilica Targeting €36m Re
Slide 12: Steelmin – Background
Steelmin – Background • Plant Built in 1897 by Wacker Chemie - DE • Owned by Electrobosna – Closed after War • Steelmin Ltd to Refurbish - €12m Spent to Date • Mgmt + Engineers + Admin in Place Primary by-product of FeSi Production Used to Improve Steel Products Microsilica Used to Make High Perform
Slide 13: Furnace V and Furnace IV
Furnace V Furnace IV 48MW Elkem (Norwegian) Furnace o Built 1973 o Initial Focus for Refurb 30MW Tagliferri (Italian) Furnace o Largest Furnace o Built 1971 o Est. 28,560t FeSi/pa o Has produced both silicon and FeSi o Est. 20,160t FeSi/pa www.rrrplc.com Investor Presentation Q2:2018 13
Slide 14: Four Points Mining
Four Points RRR: Ongoing Mining Disposal Gold Producer – Antioquia – Colombia www.rrrplc.com Investor Presentation Q2:2018 14
Slide 15: Four Points Mining
Four Points Mining • High Grade Gold mine and Mill at El Limon, Colombia • Operated by Para Resources (CVE:PBR) Avg Grade: • Ore Sourced from Mine + Regional Suppliers 8 g/t • Completed Upgrade Program – Mill to 225tpd+ Break Even: • ~7,400 oz expected in 2018 $450/oz • RRR with $3m Royalty • $1m Se
Slide 16: Copper-Cobalt Tailings
Copper-Cobalt Tailings RRR: DD Phase Due Diligence in DRC www.rrrplc.com Investor Presentation Q2:2018 16
Slide 17: Tailings Opportunity
Tailings Opportunity 26.25% • Agmt to Develop Cobalt and Copper Tailings Stake • Located by Glencore near Kolwezi, DRC • Tailings Dams From Historic Copper Mines • Drilling Began Q4 2017 • Expected DD Completion Q2 2018 • Option to go to 52.5% ELEPHANT HUNTING www.rrrplc.com Investor Presentation Q2
Slide 18: www.rrrplc.com Investor Presentation Q2:2018
www.rrrplc.com Investor Presentation Q2:2018 18
Slide 19: Attractive Cu/Co Targets
Attractive Cu/Co Targets • EVs + Home/Grid storage - increased cobalt demand • Battery grade cobalt sulfate required • Cobalt – fundamental in battery strength and lifespan • Constrained by-product supply – single traditional source (54%-DRC) • Output from pure-play deposits <2% • • Agmt to Inabilit
Slide 20: Investment Overview
Investment Overview RRR:75% RRR:100% RRR:20% RRR:0.35% RRR:5.11% Mining Mining Oil & Gas Mining + Oil & Gas Oil & Gas Migori Gold Project Ivory Coast Shoats Creek Battery Metals Elephant Oil Regency Mines (AIM: RGM) Gold Gold Oil Various Early Stage Gold Exploration Oil 1.2m Oz Gold JORC Resource On
Slide 21: Key Figures
Key Figures £2.5m Cash in the Bank 3 Sources of Cashflow 4 Multi-Commodity Exposure www.rrrplc.com Investor Presentation Q2:2018 21
Slide 22: Contact Details
Positioned for Outperformance Contact Details Exploration@rrrplc.com www.rrrplc.com www.rrrplc.com Investor Presentation Q2:2018 22
Slide 23: Disclaimer
DISCLAIMER These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities
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