KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Q3 2014 Earnings Presentation
23 slides from KEFI Gold and Copper's earnings presentation, Oct 15, 2014
Slide 1: Emerging Gold Producer in the Arabian-Nubian Shield
EMERGING GOLD PRODUCER IN THE ARABIAN-NUBIAN SHIELD KEFI MINERALS Q3 2014 QUARTERLY REPORT ISSUED 15 OCTOBER 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: Overview
OVERVIEW • Focused on deposits in the highly prospective Arabian-Nubian Shield. Projects in Ethiopia and Saudi Arabia with huge potential • In Ethiopia: 95% of KEFI Minerals Ethiopia (KME) with Govt 5%. In Saudi Arabia: 40% of Gold & Minerals (G&M) with Saudi partner ARTAR • In Saudi, G&M is one of
Slide 4: Board of Directors
BOARD OF DIRECTORS Harry Anagnostaras-Adams Jeff Rayner Executive Chairman Exploration Director Founder or co-founder Citicorp Capital Investors BSc (Hons) Geology. Over 27 years experience; Australia, Pilatus Capital, Australian Gold Council, BHP Gold, Newcrest Mining in Australia and EMED Mining a
Slide 5: Share Capital
SHARE CAPITAL KEFI share price (p) Existing Issued Share Capital 1,045,336,880 Market cap at close on 14 Oct 2014 c. £13M Outstanding management incentive 76,642,301 Exisiting KEFI shareholders: options and broker warrants* Odey 12% Standard Life 8% TD Direct Investing Nominees EMED Mining 8% 7% As
Slide 6: Peer Comparisons for Listed Developers
PEER COMPARISONS FOR LISTED DEVELOPERS Mine Life C1 Costs Capex Market Project Country Status IRR @ Kozpa (US$/oz) (US$M) Cap* 12 yrs Amara Mining Yaoure Cote d'Ivoire PEA 32% 598 408 £64M @325 21 yrs Belo Sun Mining Volta Grande Brazil PEA 16% 715 329 C$43M @167 7 yrs Premier Gold Mines Brookbank C
Slide 7: Assets in the Arabian-Nubian Shield
ASSETS IN THE ARABIAN-NUBIAN SHIELD • IPO on AIM in Dec 06. Equity financings of c. $25M to test opportunities in Africa and Middle East • Nearly 2,000km2 exploration licences in Arabian-Nubian Shield as from 2008 • First production to be in Ethiopia, Tulu Kapi, target to ramp up production in 2017
Slide 8: Ethiopia
KEFI MINERALS ETHIOPIA
Slide 9: Ethiopia: Thriving Economy & Mining Sector
ETHIOPIA: THRIVING ECONOMY & MINING SECTOR • Fastest growing non-hydrocarbon economy in Africa, 2nd largest population in Africa (+80m) • Dynamic economy: GDP grew by 8.5% over the past 5 years, and over 7.1% in 2013. Main economic partners: China, Germany, Saudi Arabia, USA, Belgium. Ethiopia’s lan
Slide 10: Tulu Kapi's Rapid Overhaul Since Acquisition
TULU KAPI’S RAPID OVERHAUL SINCE ACQUISITION Approved indicative terms for project finance Reactivated Mining Licence Application, Upgraded JORC having verified the Resource targeted plan 1.9Moz Au Affirmed processing Completed Acquired 75% of Tulu target to 1.2Moz of Provided update of acquisition
Slide 11: Tulu Kapi: Development Strategy Now Overhauled
TULU KAPI: DEVELOPMENT STRATEGY NOW OVERHAULED KEFI’s revised development strategy • Selective mining of the orebody to: o Reduce pit size and associated waste mining o Increase Head Grade from 1.8 g/t to c. 2.4 g/t Au • Reduce original 2Mtpa plant to ≈1.2Mtpa, almost halved capex from ≈ $235M to ≈$
Slide 12: Tulu Kapi: Upgraded Resources Give Higher Confidence
TULU KAPI: UPGRADED RESOURCES GIVE HIGHER CONFIDENCE 2012 Green = Indicated Red = Inferred 2014 12
Slide 13: Tulu Kapi: Lease Area and Site Layout
TULU KAPI: LEASE AREA AND SITE LAYOUT • KEFI reduced the area and sculpted the layout to • Pre-KEFI lease area and site layout minimise haulage distances, environmental impact and community disruption 13
Slide 14: Tulu Kapi: Open Pit Mine Plan and Estimated Costs
TULU KAPI: OPEN PIT MINE PLAN AND ESTIMATED COSTS KEFI SEP 14 KEFI SEP 14 INDEPENDENTLY INDEPENDENTLY REVIEWED REVIEWED (+ contract-mining est) (1) (owner-operated mine) Initial Capex $107M $130M Working Capital $20M $20M Total Investment $127M $150M Gold Production (2) 925Koz 925Koz All-in-Costs $8
Slide 15: Tulu Kapi: Finance Plan
TULU KAPI: FINANCE PLAN Q4-14: $5M (£3M) to finance activities, from metal stream, JV partner or private placing Q1-15: Early-Stage Finance $10M, after update of DFS and grant of Mining Licence Q3-15: Equity+Mezzanine c. $27M (c. 20% of total investment, ignoring sunk costs), at parent company level
Slide 16: Tulu Kapi: Operational Plan
TULU KAPI: OPERATIONAL PLAN • Q4-14: • DFS to be updated to bankable standards • Community resettlement consultations continue • Examine opportunities for second-hand plant and contract mining • Q1-15: • Project Finance Technical Audit and DFS sign-off • Trigger Phase I of community resettlement, 12
Slide 17: Experienced Development Team
EXPERIENCED DEVELOPMENT TEAM Fabio Granitzio Kebede Belete Exploration Manager Geologist (PhD. Cagliari, Italy). Country Manager Ethiopia Geologist (PhD, Austria; Track record of gold discoveries in Sardinia and Saudi MPhil, UK; BSc, Ethiopia). Over 25 years of experience Arabia. Over 16 years exper
Slide 18: Saudi Arabia
KEFI MINERALS SAUDI ARABIA
Slide 19: Kingdom of Saudi Arabia
KINGDOM OF SAUDI ARABIA • Saudi Arabia is developing its mineral sector, diversifying the country’s revenues away from oil • Saudi Arabia is largely unexplored with few companies exploring for gold • G&M (KEFI 40%, ARTAR 60%) – Strategic Saudi partner, Abdul Rahman Saad Al Rashid & Sons (ARTAR) – a
Slide 20: Jibal Qutman Discovery
JIBAL QUTMAN DISCOVERY • The EL was granted in July 2012 and is approx 99km2 in area • Mineralisation identified in five areas: Main Zone, South Zone, West Zone, 3K Hill and 4K Hill • Hosted in the +300km north-south trending Nabitah-Tathlith fault zone. Drilling and trenching in progress: two more
Slide 21: PFS Completed March 2014 on Jibal Qutman
PFS COMPLETED MARCH 2014 ON JIBAL QUTMAN EXPLORATION NOW ALSO JIBAL QUTMAN SET OF TENEMENTS PFS on Jibal Qutman: • Mining – Pit shell designs reviewed by AMC Consultants • Processing – Process flow diagrams and design criteria performed with in-house expertise • Engineering Design – Consultant HDO c
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS • Emerging leader in the under-explored Arabian-Nubian Shield, comparable to the shields of Australia and Canada which host most of their gold production • For Tulu Kapi - independently reviewed ave. 86Koz Au pa from 2017, EBITDA $40-45M • Recently announced Tulu Kapi milestone
Slide 23: Contact Information
CONTACT INFORMATION Harry Anagnostaras-Adams, Executive Chairman Mobile: +357 99457843 Jeff Rayner, Exploration Director Mobile: +90 533 928 1913 England - Registered office Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Turkey - Support an