KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — PDAC 2019
22 slides from KEFI Gold and Copper's conference presentation, March 2019
Slide 1: PDAC 2019 African Mining - KEFI Minerals
PDAC 2019 African Mining KEFI Minerals Tulu Kapi Gold Mines 1
Slide 2: A New Entrant's Perception and Approach
A New Entrant’s Perception and Approach - Harry Anagnostaras-Adams Managing Director KEFI Minerals African Mining - So Much Untackled Potential. Yet Most Mining Investors Do Not Perceive Africa as Attractive for Investment Africa Should Have More Exploration, More Development, More Mining It is a Wo
Slide 3: Africa is Huge but the Potential is Largely Untackled
Africa is Huge but the Potential is Largely Untackled “Africa produces fewer minerals overall compared to the global average (in both per capita and per square mile terms), and that production is super- concentrated in a very few countries.” - IMANI, think tank Ghana. 3
Slide 4: The Crowd's Perception of Mining Investors
The Crowd’s Perception or, What Mining Investors Generally Think - Fraser Instute Survey 4
Slide 5: Africa Only Attracts the Same Exploration Spending as Canada or Australia
Africa Only Attracts the Same Exploration Spending As Much Smaller Canada or Australia The Tulu-Kapi Gold Project is ready for development 5
Slide 6: The Industry Already Believes in Africa's Potential
The Industry Already Believes in Africa’s Potential - The Challenge is Not the Technical Stuff In new jurisdictions, the teams of both the Governments and the Attitude to Industry What Does it Take to of Government and Align the Stakeholders Companies take on unfamiliar risks. Community Like no othe
Slide 7: All Governments Want to Improve Their Countries
All Governments Want to Improve Their Countries But Few Treat the Mining Industry as a Partner. Trust must be built and it takes time and commitment. • Exploration spending p.a. : both Africa & Australia ~$2 billion. • Export revenues p.a. : both Africa & Australia ~ $150 billion. • But Africa is 4
Slide 8: Australian Companies Now Operating in Africa
A Lot of People Are Ignoring the Naysaying Crowd 170 Australian Companies Now Operating in Africa They See the Opportunity, as do Others There are currently 170 Australian listed mining and other resource companies operating in over * 400 projects in some 35 African countries. Nowhere else in the wo
Slide 9: Surely It All Starts with the Requisite Mission
Surely It All Starts with the Requisite Mission And to Do It Right To Commit to Safe and Secure Development that Provides Enormous Benefit to Today’s Generation of Projects’ Communities and Company Shareholders, Without Compromising the Ability of Future Generations to Meet Their Own Needs Socially,
Slide 10: Why Did KEFI Focus on the Arabian Nubian Shield?
Why Did KEFI Focus on the Arabian Nubian Shield? It is early days but world-class discoveries have already been made in the Arabian Nubian Shield Arabian Nubian Shield can be as productive as the comparable Australian shield which grew from <10tpa gold in 1970’s to >300 tpa now. Plus other minerals.
Slide 11: Tulu Kapi Gold Mines
TULU KAPI GOLD MINES A JV With Ethiopian Government And Ethiopian Financial Institutions Community consultation. We have lived and worked in Tulu Kapi for more than a decade without any disruption. 11
Slide 12: TKGM Has Just Been Given the Green Light
TKGM Has Just Been Given the Green Light On Thursday 28 February 2019, Ethiopian Prime Minister Dr Abiy Ahmed issued all the relevant instructions to get this project started this month. TKGM is the first major mining project in decades and is intended to mark the start of a modern Ethiopian mining
Slide 13: Why Ethiopia - Political
Why Ethiopia - Political • Base for the African Union and well-serviced for all needs. • In the world’s top 10 growth countries for over 15 years. Now Africa’s highest growth country. • The new Government led by Prime Minister Dr Abiy Ahmed is Ethiopia’s peaceful and effective response to political
Slide 14: The pace of change in Ethiopia has been so fast
The pace of change in Ethiopia has been so fast since Dr Abiy Ahmed became Prime Minister it is almost like observing a different country – BBC BBC: The reforms he has introduced were unthinkable not so long ago. The (previous) government seemed impervious to criticism from human rights groups that
Slide 15: Why Ethiopia - Economic
Why Ethiopia - Economic • The Government’s focus is now on the economy. When Ethiopia commits...it happens: • Ethiopian Airlines, Renaissance Dam, Industrial Parks. • Now for pushing the extractive industries as well as the deregulating other sectors. • Ethiopia is the single largest part of Canada’
Slide 16: Introduction to Project
Introduction to Project Ethiopia’s only ‘ready to start’ industrial-scale mining project. The first development for decades. Located in largest gold district. Gold mining since Queen of Sheba. Next to Sudan, where gold exports have grown from 10tpa to >100tpa in past 10 years, from artisanal. Tulu K
Slide 17: A Strong Platform
A Strong Platform Institutional Bond Investors $160M bonds KEFI Minerals plc 100% AIM-listed ‘KEFI’ Guarantee Finance SPV On-Site Infrastructure 100% KEFI Ethiopia Past $60M equity ANS Mining 50.1%. New $38M equity ~27% Finance Lease Payments Tula Kapi Gold Mines 23% (TKGM) Govt. of Ethiopia ~23% Ne
Slide 18: Independent Validation
Independent Validation Due Diligence Financial Model Environmental & Social Bankable Open Pit (JORC 2012) Definitive Feasibility Study • Ore Reserve 1.0M oz (15M t at 2.1g/t) • 91-94% recovery Resources & • DFS Annual production 140,000 oz pa Reserves • AISC ~$800/oz • EBITDA ~ $70M @ $1300/oz
Slide 19: Economic and Other Benefits
Economic and Other Benefits GROWTH GOVERNMENT • Immediate ~$270 mill Foreign Direct Investment • Company Tax • Exports of ~$200 mill pa from Initial Project • Tenement Rental • Multiplier 7-10 on local spending ~$130 mill pa • Royalties • PAYE Taxes • VAT GOVERNMENT AS INVESTOR MACRO DIRECT • Divide
Slide 20: The Economic Pie - An illustrative dissection
The Economic Pie - An illustrative dissection Total Historic & Future Investment Share of TKGM Cash Flows -Gold Price $1,350/oz Total US$333m (Govt $20 million) Cashflow US$511m after debt repayment (Govt $223 million) 17% 20% 44% 44% 12% 63% KEFI - Foreign Capital Non-Government Shareholders of TKG
Slide 21: KEFI Shareholders Intrinsic Value and Targeted Growth
KEFI Shareholders Intrinsic Value and Targeted Growth • SAUDI ARABIA JOINT VENTURE HAS PEGGED 24 VMS SYSTEMS AND STARTS DRILLING 2019 • RECENTLY GRANTED 1ST LICENCE UNDER NEW REGULATIONS • EXPLORATION RIGHTS TO 1,900 SQ KMS OF TULU KAPI DISTRICT WITH MANY SHALLOW DRILL-HITS • THE TULU KAPI UNDERGROU
Slide 22: Thank You
Thank You Email: info@kefiminerals.com Website: www.kefi-minerals.com @kefiminerals KEFI Minerals plc 22