KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Corporate Update (April 2014)
24 slides from KEFI Gold and Copper's corporate update, Apr 1, 2014
Slide 1: The Emerging Gold Miner: Tulu Kapi Turnaround Shareholder Update
GOLD PRODUCTION IN THE ARABIAN-NUBIAN SHIELD THE EMERGING GOLD MINER TULU KAPI TURNEROUND SHAREHOLDER UPDATE APRIL 2014 London, April 1st 2014
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accord
Slide 3: KEFI in the Arabian-Nubian Shield
KEFI IN THE ARABIAN-NUBIAN SHIELD • The Arabian-Nubian Shield (ANS) o Similar to the shields of Australia and Canada, but under-explored o Runs from Israel in north to Ethiopia in south, underlying much of Jordan, Egypt, Saudi Arabia, Sudan, Eritrea, Yemen and Somalia • Focussed on ANS, specifically
Slide 4: KEFI in the Arabian-Nubian Shield (contd.)
KEFI IN THE ARABIAN-NUBIAN SHIELD (contd.) Ethiopia • Transformational acquisition of Tulu Kapi gold project in Dec 2013 for £4.5m following five months of detailed due diligence • Project had already undergone significant technical evaluation to a DFS standard and received over $50m in investment •
Slide 5: KEFI Share Price Since IPO Indexed to Key Market Indices
0 1 2 3 0.5 1.5 2.5 3.5 12/06 03/07 06/07 09/07 12/07 03/08 06/08 KEFI 09/08 12/08 03/09 06/09 09/09 12/09 ASX - Gold Index 03/10 06/10 09/10 12/10 03/11 TSX Gold Index 06/11 09/11 12/11 03/12 06/12 09/12 FTSE - Gold Index 12/12 03/13 06/13 09/13 12/13 03/14 5 KEFI SHARE PRICE SINCE IPO INDEXED TO K
Slide 6: Peer Group Comparisons
PEER GROUP COMPARISONS Project Country Status Mine Life IRR C1 Costs Capex Market @ Kozpa (US$/oz) (US$m) Cap Amara Mining Yaoure Cote d'Ivoire PEA 12 yrs 32% 598 408 £35m @325 Belo Sun Mining Volta Grande Brazil PEA 21 yrs 16% 715 329 C$88m @167 Premier Gold Brookbank Canada PEA 7 yrs 31% 620 C$107
Slide 7: KEFI Turned Around in Ethiopia: Tulu Kapi Gold Project
GOLD PRODUCTION IN THE ARABIAN-NUBIAN SHIELD THE EMERGING GOLD MINER TULU KAPI KEFI TURNED in Ethiopia AROUND Tulu Kapi Gold Project (75%)
Slide 8: Ethiopia: Thriving Economy & Mining Sector
ETHIOPIA: THRIVING ECONOMY & MINING SECTOR • Fastest growing non-energy economy in Africa, 2nd largest population in Africa (+80m) • Dynamic economy: GDP grew by 8.45% and 7.07% in 2013. $2.75bn in exports (2011). Main economic partners: China, Germany, Saudi Arabia, USA, Belgium. Landmass greater t
Slide 9: Tulu Kapi: Acquisition & Project History
TULU KAPI: ACQUISITION & PROJECT HISTORY Deal Highlights • 75% acquisition of Nyota Minerals (Ethiopia) Ltd (since renamed KEFI Minerals (Ethiopia) Ltd), a wholly-owned subsidiary of Nyota Minerals and holder of Tulu Kapi and surrounding Exploration Licences • Cash and share deal totalling £4.5m • F
Slide 10: Tulu Kapi: Revised Development Strategy Reduces Capex & Opex
TULU KAPI: REVISED DEVELOPMENT STRATEGY REDUCES CAPEX & OPEX Revised development strategy includes: • Selective mining of the orebody to: o Reduce pit size and associated waste:ore ratio o Increase head grade from 1.8g/t to > 2g/t Au • Reduce original 2Mtpa plant to ≈1.2Mtpa, targeting halving of ca
Slide 11: Comparison of Original & Proposed Project Parameters
Contact Info COMPARISON OF ORIGINAL & PROPOSED PROJECT PARAMETERS Difference Nyota KEFI’s Prelim Impact DFS estimates Reduces funding requirements and increases Capex $289m ≈$143m ROI (includes sustaining capital) Head grade 1.8g/t Au 2.4g/t Au Increases revenue per tonne mined Mining rate 2Mtpa 1.2
Slide 12: Tulu Kapi: Switch to Selective Mining
TULU KAPI: SWITCH TO SELECTIVE MINING KEFI preliminary pit outline Nyota DFS pit outline High grade Au has underground mining potential • A RC drill programme of 20 holes is in progress, to infill the existing drill database for final confirmation of mineralisation within the revised open-pit reserv
Slide 13: Tulu Kapi: Resource Updated Months After Acquisition
TULU KAPI: RESOURCE UPDATED 3 MONTHS AFTER ACQUISITION • KEFI published a resource totalling 2,051,000oz Au (24.1Mt at 2.64g/t Au) in March 2014 • This estimate increased ounces in the Indicated category by 65% • 91% of the total resource now in the Indicated category Tonnes Au Contained Au (Mt) (g/
Slide 14: Tulu Kapi: Updated Resources Give Higher Confidence
TULU KAPI: UPDATED RESOURCES GIVE HIGHER CONFIDENCE 2012 Green = Indicated Red = Inferred 2014 14
Slide 15: KEFI in Kingdom of Saudi Arabia: Jibal Qutman Gold Project
GOLD PRODUCTION IN THE ARABIAN-NUBIAN SHIELD THE EMERGING GOLD MINER TULU KAPI TURNED KEFI in Kingdom AROUND of Saudi Arabia Jibal Qutman Gold Project
Slide 16: Kingdom of Saudi Arabia
KINGDOM OF SAUDI ARABIA • Country largely unexplored and underdeveloped with few companies exploring for gold • Only western mining company operating in the country is Barrick Gold, which owns the Jabal Sayid Mine. Once in production, annual production expected at 100-130 m lbs of Cu • KSA looking t
Slide 17: KEFI in Saudi Arabia
KH KEFI IN SAUDI ARABIA • G&M JV (KEFI 40%, ARTAR 60%) – Strategic Saudi partner, Abdul Rahman Saad Al Rashid and Sons (ARTAR) - a major local group that provides administrative, logistical, financial support • Database – G&M’s proprietary database for selective targeting in the ANS (historic workin
Slide 18: Jibal Qutman Initial 0.5Moz Resource <18 Months After EL Grant
JIBAL QUTMAN INITIAL 0.5Moz RESOURCE <18 MONTHS AFTER EL GRANT RC drilling at Jibal Qutman • The JQ deposits consist of five separate ore bodies. Main Zone and South Zone, and new discoveries; West Zone, 3K Hill and 4K Hill • Hosted in the +300km north-south trending Nabitah-Tathlith fault zone. Ano
Slide 19: Jibal Qutman: Resources Updated & Growing
KH JIBAL QUTMAN: RESOURCES UPDATED & GROWING KEFI published a Jibal Qutman resource totalling 495,194 oz Au (16.7Mt at 0.92g/t Au) in March 2014: Zone Tonnes Grade Contained Au (g/t Au) (ounces) Main 2,169,070 0.99 69,030 West 6,531,750 0.89 186,188 South 2,924,909 0.79 74,073 Indicated 3KHill 2,649
Slide 20: PFS Completed March 2014 for Regulatory Review
PFS COMPLETED MARCH 2014 FOR REGULATORY REVIEW • Mining – Pit shell designs reviewed by AMC Consultants Perth • Processing – Process flow diagrams and design criteria performed with in-house expertise • Engineering Design – Consultant HDO completed plant layout, major equipment list and bill of quan
Slide 21: Board of Directors – All with KEFI Since Founding in 2006
BOARD OF DIRECTORS – ALL WITH KEFI SINCE FOUNDING IN 2006 Harry Anagnostaras-Adams Jeff Rayner Chairman Managing Director Founder or co-founder Citicorp Capital BSc (Hons) Geology. Over 27 years Investors Australia, Pilatus Capital, experience; BHP Gold, Newcrest Australian Gold Council, EMED Mining
Slide 22: Experienced Development Team
EXPERIENCED DEVELOPMENT TEAM Fabio Granitzio - Exploration Manager Kebede Belete - Country Manager Ethiopia Geologist (PhD. Cagliari, Italy). Track record of gold Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). discoveries in Sardinia and Saudi Arabia. Over 15 Over 25 years of experience working
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS • Potential to be in production by 2016 and producing approx 80Koz Au per year by 2017 • Operating in the Arabian Nubian Shield (ANS), comparable to the shields of Australia and Canada which host most of their gold production, but ANS is under-explored • Attributable resources
Slide 24: Capital Structure & Contact Information
Contact Info CAPITAL STRUCTURE & CONTACT INFORMATION For further information, please contact: Jeff Rayner, Managing Director Mobile Phone: +90 533 928 1913 (Turkey) or +966 535 004 480 (KSA) England - Registered office Cyprus - Group corporate team Ticker: KEFI (AIM) Ethiopia - Development and explo