Kgl Resources Limited · ASX:KGL
Kgl Resources — Investor Presentation (April 2023)
47 slides from Kgl Resources's investor presentation, Apr 26, 2023
Slide 1: Equity Raising – Investor Presentation
Equity Raising – Investor Presentation Pro-rata traditional non-renounceable entitlement offer 26 April 2023 KGL Resources Limited NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising 2023
Slide 2: Contents
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Contents 1. Important Notices and Disclaimer 2. Project Overview 3. Equity Raising 4. Appendices A. Key Risk Factors B. Copper Market Overview C. Competent Person and Disclosures D. Foreign Selling Disclosures KGL Resources Limited Equity Raising
Slide 3: Important Notices and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notices and Disclaimer This presentation has been prepared by KGL Resources Limited (ACN 082 658 080) No offer to acquire New Shares: The information in this presentation is not an offer or (KGL) in relation to an equity raising consisti
Slide 4: Important Notices and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notices and Disclaimer Financial information (cont…): Therefore, the non-IFRS financial information / non- While KGL’s reserve and resource estimates comply with the JORC Code, they may not GAAP financial measures are not a measure of fi
Slide 5: Important Notices and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notices and Disclaimer Forward-looking statements (cont..):. No representation or warranty is made by or on behalf of KGL or the Relevant Parties that any projection, forecast, calculation, forward-looking statement, assumption or estima
Slide 6: Project Overview
Project Overview KGL RIES OURGES
Slide 7: Summary and Outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Summary and Outlook High-grade greenfield copper project poised for development Key workstreams for 2023 1 • Targeted exploration program with Key approvals complete goal of expanding reserves and Pathway to production with offtake signed ex
Slide 8: Investment Highlights
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Investment Highlights Becoming an Australian Copper Producer Feasibility delivered High >2.0% copper Near-term growth Targeting contracts with 11.75 year mine life grade Resource2 – opportunities experienced service A$241 NPV1 unique vs. global Cu
Slide 9: Corporate Structure and Shareholders
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Corporate Structure and Shareholders Capital Structure Australian Stock Exchange (ASX) code KGL No debt ASX Share price (close 24 April 2023) A$0.132 Cash A$13.2 million (31 Mar 2023) Shares outstanding 455 M Shareholder base Options on Issue 1M
Slide 10: Resource Update
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Resource Update The total resource estimate now stands at: • 23.8 million tonnes at 2.02% copper, 25.3 g/t silver and 0.25 g/t gold • containing 481,200 tonnes copper, 19.3 million ounces silver and 189,600 ounces of gold. Note: Resource estimate
Slide 11: Dual Track Pathways for Value Creation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Dual Track Pathways for Value Creation Project Development Focus Resource Expansion Focus • Robust and financially viable FS delivered • The opportunity to focus on growing the Nov 2022. high-grade resource at Jervois given outlook for chronic sho
Slide 12: Feasibility Study: Summary Highlights
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Feasibility Study: Summary Highlights Production Forecast: Average annual Ore Reserves: Contained copper 11.75 year mine life copper production of Average Cu grade 278 kt Cu, ~25kt 2.1% 9.39 Moz Ag, 67.6 koz Au Plant commissioning IRR / Payback Pr
Slide 13: Feasibility Study: Highlights
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Feasibility Study: Highlights The Feasibility Study has confirmed the Jervois Copper Project is technically robust and financially viable with a copper price of US$4.23/lb and supports a high-grade copper mine. A full sensitivity analysis is provi
Slide 14: Project Location and Infrastructure
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Project Location and Infrastructure • The Jervois Copper Project is located around 270km (direct line) east north-east of Alice Springs in the Northern Territory. • Ore to be mined by open pit and underground methods and processed to a concentrate
Slide 15: Project Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Project Overview • Two open pit mines and four underground mines, using conventional earthmoving equipment and long hole stope mining methods, respectively. • A staged implementation to mining, working with experienced and capable contractors to r
Slide 16: Current Resource and Mine Plan
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Current Resource and Mine Plan • Mineral Resource (Sept 2022) is 23.8Mt @ 2.02%Cu, 0.25g/t Au and 25.3g/t Ag. Rockface & Bellbird • Approximately half of the resource has been Simple Cross Section of converted in Ore Reserve (11.7Mt@2.10% Cu). Rew
Slide 17: Binding Offtake Agreement with Glencore
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Binding Offtake Agreement with Glencore Terms Key benefits • Evergreen with minimum 5–year term from Certainty of concentrate sales for the project – commercial production supporting the funding strategy • Covers 100% of copper concentrate from
Slide 18: Development Pathway
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Development Pathway Implementation plan to manage development risks and uncertainties • Key development risks: uncertainties around input pricing, supply chain disruptions and labour shortages. • Key project approvals in place. • Mine plan optimis
Slide 19: Growing the current resource
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Growing the current resource Unlocking the potential of the Jervois copper hub • Definition drilling continues to support upgrading resources to Measured and Indicated status. • Focus in 2023 will be on an accelerated drilling program to expand th
Slide 20: Resource Growth Potential: Rockface
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Resource Growth Potential: Rockface Thick and high grades, open at depth KGL Resources Limited Equity Raising 2023 20
Slide 21: Resource Growth Potential: Reward
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Resource Growth Potential: Reward U/G Mine Portal KGL Resources Limited Equity Raising 2023 21
Slide 22: Resource Growth Potential: Bellbird
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Resource Growth Potential: Bellbird KGL Resources Limited Equity Raising 2023 22
Slide 23: Environment, Social and Governance
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Environment, Social and Governance KGL is focused on implementing industry ESG practices Environment Social Governance Authorisation granted and Mining KGL’s goal is to avoid adverse impacts KGL’s Values of Integrity, Management Plan approve
Slide 24: Equity Raising
Equity Raising
Slide 25: Equity Raising Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Summary Non-renounceable entitlement offer Equity raising to raise up to A$20.2 million, comprising: a 10 for 27 pro-rata traditional non-renounceable entitlement offer (Offer) Commitments for A$8.6 million 1 Offer Structure &
Slide 26: Equity Raising Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Summary Non-renounceable entitlement offer KGL’s three largest shareholders, KMP Investments (26.1%), entities associated with Denis Wood (9.2%) and Marshall Plenty Investments (7.3%), are supportive and have committed to take up
Slide 27: Funding and Pro-Forma Capital Structure
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Funding and Pro-Forma Capital Structure Sources & Uses Pro-Forma Capital Structure Sources of Funds $ (Min) $(Max) Current Post Equity Key Information 24 April 23 Raising Existing Cash Position 1 A$13.2m A$13.2m Min Raise Max Raise (A$9m) (A$20.2m
Slide 28: Equity Raising Timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising Timetable Non-renounceable entitlement offer Event Date Announcement of the Offer Wednesday, 26 April 2023 "Ex" date Friday, 28 April 2023 Record date for Offer (7.00pm (Sydney time)) (Record Date) Monday, 1 May 2023 Offer Booklet a
Slide 29: Appendix A: Key Risk Factors
Appendix A Key Risk Factors
Slide 30: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors Activities in KGL and its controlled entities, as in any business, are subject to risks which may impact on KGL’s future performance. There are a number of factors, both specific to KGL and of a general nature, which may affect th
Slide 31: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Exploration Risk The success of KGL depends on the delineation of economically mineable reserves and resources, access to required development capital, movement in the price of commodities, securin
Slide 32: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Regulatory Risk (cont…) Mining and exploration tenements are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. R
Slide 33: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Resource and Reserve Estimate Risk Resource and reserve estimates are expressions of judgement based on knowledge, experience and industry practice. These estimates were appropriate when made but m
Slide 34: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors MATERIAL BUSINESS RISKS (cont..) Fluctuations in Copper Price and Australian Dollar Exchange Rate The copper mining industry is competitive. There can be no assurance that copper, silver and gold prices will be such that KGL can m
Slide 35: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors GENERAL RISK FACTORS Mineral exploration and mining may be hampered by circumstances beyond the control of KGL and are speculative operations which by their nature are subject to a number of inherent risks. These include general r
Slide 36: Key Risk Factors
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risk Factors GENERAL RISK FACTORS (cont..) Securities Investment Risk Applicants should be aware that there are risks associated with any securities investment. Securities listed on the stock market, and in particular securities of mining and
Slide 37: Appendix B: Copper Market
Appendix B Copper Market
Slide 38: Copper Intensity Increasing
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Copper Intensity Increasing • EVs: Aggressive projections suggest that sales could hit 13-18 million in 2025 and 26-43 million in 2030 (Avevedo et al., 2018: International Energy agency, 2019) representing some 30% of the global passenger vehicle
Slide 39: Robust Long-Term Outlook for Copper
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Robust Long-Term Outlook for Copper Long-term supply gap remains unsolved, with widening mid-term deficits3 • S&P Global1 forecasts refined copper demand doubling by 2035 from 25 Mt to almost 50 Mt driven by growing demand for renewable energy and
Slide 40: Appendix C: Competent Persons and Disclosures
Appendix C Competent Persons and Disclosures and Additional Information
Slide 41: Disclosures
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Disclosures Competent Person Statement The Jervois Resources information were first released to the market on 14/09/2022 and complies with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects
Slide 42: Disclosures
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Disclosures The Jervois Reserves information were first released to the market on 10/11/2022 and complies with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in
Slide 43: Appendix D: Foreign Selling Restrictions
Appendix D Foreign Selling Restrictions
Slide 44: Foreign Selling Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offer
Slide 45: Foreign Selling Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offer
Slide 46: Foreign Selling Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offer
Slide 47: Contact us:
Contact us: Level 5, 167 Eagle Street, Brisbane QLD 4000, Australia T: +61 7 3071 9003 info@kglresources.com.au kglresources.com.au KGL Resources Limited Equity Raising 2023