Slide 1: Kenmare Moma Titanium Mining Project
Kenmare Moma Titanium Mining Project
Slide 2: Moma Titanium Minerals Project
Moma Titanium Minerals Project Ø Feasible Ø High Return Ø Low Risk
Slide 3: Stakeholders
Stakeholders Ø Government of Mozambique Ø Customers Ø Project Contractors Ø Funding Institutions
Slide 4: Titanium Feedstock Market
Titanium Feedstock Market TiO2 Feedstock Supply and Demand 400 Surplus 200 0 -200 -400 -600 Deficit -800 -1000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: TZMI Chloride Feedstocks '000 tonnes TiO2 Units Sulphate Feedstocks '000 tonnes TiO2 Units
Slide 5: Industry Structure and Price Determining Mechanisms
Industry Structure and Price Determining Mechanisms The Model - Risk and Return in commodity markets
Slide 6: Moma: Resource
Moma : Resource Ø Resource used in mine plan is 407 million tonnes ore @ 4.33% Heavy Mineral containing 14 million tonnes ilmenite Ø Total Resources 2,133 million tonnes ore containing 63 million tonnes ilmenite
Slide 7: Moma: Mining Operations
Moma: Mining Operations Ø Designed Annual Output Ø 625,000 tonnes of Ilmenite Ø 23,800 tonnes of Zircon Ø 12,500 tonnes of Rutile Ø Dredge mining at average 3,000t/hr
Slide 8: Moma: Project Implementation
Moma : Project Implementation
Slide 9: Moma: Mine Operation
Moma : Mine Operation Dredge & Concentrator Plant Separator Plant] |Product Offload Jetty
Slide 10: It's Happening Now!
Reality – Not Virtual Reality It’s Happening Now!
Slide 11: Mining and Processing Flowsheet
Mining and Processing Flowsheet
Slide 12: Purchase of Beenup Plants from BHP
Purchase of Beenup Plants from BHP Ø Beenup developed by BHP in Western Australia Ø Orebody problems caused closure after 14 months Ø Concentrator & Separation Plants performed well Ø Usability at Moma confirmed by testwork
Slide 13: Beenup Concentrator Plant
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Slide 14: Beenup Separation Plant
Beenup Separation Plant KENMARE | ¢
Slide 15: Dismantling Concentrator Plant at Beenup
Dismantling Concentrator Plant at Beenup
Slide 16: Dismantling Concentrator Plant at Beenup
Dismantling Concentrator Plant at Beenup
Slide 17: Definitive Feasibility Study: Returns
Definitive Feasibility Study: Returns Ø Definitive Feasibility conducted by GRD Minproc Limited Ø GRD Minproc designed & built the successful TiWest Mineral Sands Project Ø Low Risk Project Ø IRR on full equity basis : 23.3% Ø NPV at 10% discount rate : US$205 million
Slide 18: Feedstock Industry Comparison
Feedstock Industry Comparison Revenue / Cash Cost 3.5 3.1 3 2.43 2.5 1.97 1.9 1.85 2 1.62 1.5 1.3 1 0.5 0 Kenmare RBM Namakwa Con.Rutile Corridor TiWest Iluka Source GRD Minproc Source WMC
Slide 19: Environment
Environment From This To This… Virtually Zero Effect
Slide 20: Location
Location Maputo Namakwa
Slide 21: Location
Location
Slide 22: Mozambique
Mozambique Ø One of the world’s fastest growing economies in the 1990s Ø 2000 inflation 11.4% (EIU est.) Ø Government elected in 1999 to new 5 year term Ø Mozal aluminum smelter (US$2.0 billion including expansion) first of several major inward investments
Slide 23: Agreements with Government
Agreements with Government Mineral Licensing Contract Implementation Agreement Ø 25 years (renewable) Ø Grant of IFZ status Ø Right to obtain mining licence Ø Stabilisation of fiscal terms Ø Stabilisation of fiscal terms Ø Export, sale and foreign Ø Export, sale and foreign exchange rights exchange
Slide 24: Funding Progress
Funding Progress Ø N. M. Rothschild appointed as financial advisor June 2001 Ø Briefing memo sent to potential funders July Ø Written expressions of “interest in principle” Ø Information Memorandum December 2001 Ø Meeting ‘short-list’ of institutions January 2002
Slide 25: Timing
Timing Ø Definitive Feasibility Study Completed Feb. 2001 Ø With Funding 2002 Ø Production 2004
Slide 26: Kenmare Corporate
Kenmare Corporate Ø 191 million shares Ø Approx. 32% held by institutions Ø Approx. 10% held by directors & family Ø Shareholders Funds 45 million Ø Unrivalled experience working in Mozambique
Slide 27: Offers a High Return
Offers a High Return Stable, Progressive Country Long History in Mozambique Has the Equipment Has the Expertise Has the Ability
Slide 28: Kenmare Moma Titanium Mining Project
Kenmare Moma Titanium Mining Project