KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Investor Presentation (November 2017)
33 slides from KEFI Gold and Copper's investor presentation, Nov 27, 2017
Slide 1: Update November 2017
Update Evised27 heading November 2017 Disclaimer Ethiopia Saudi Arabia Clear plan. Strong partners, contractors 2Moz Gold in Resources, 1Moz in Reserves Development Ready for 140,000oz…200,000oz pa Above: the Ethiopian development site Assembling finance and construction contracts Right: one of the
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers g
Slide 3: Corporate Overview
Corporate Overview Focus Capital Structure Soon trigger development, First Production c.140,000 oz pa AIM code KEFI • At $1,250/oz, estimated cash flow of US$74M pa before 3.80p (low) Share price ‐ 12 mth debt‐service & tax. Payback of 3 years. 7.48p (high) Share price 4.25p Target to lift produ
Slide 4: Board of Directors
Board of Directors Harry Anagnostaras‐Adams – Executive Chairman – MBA (Australian Graduate School of Business) Harry was founder or co‐founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Council, EMED Mining, KEFI Minerals and Cyprus‐based Semarang E
Slide 5: Corporate Structure
Corporate Structure Institutions Board Public Ausdrill Lycopodium 44% 3% 48% 5% KEFI Minerals plc contract 40% c. 75% c. 25% Al Rashid 60% Saudi JV Tulu Kapi Gold Govt of Ethiopia G&M Mines Possible Additional Investor** Finance SPV*** On‐site Infrastructure Bond Holders • The shareholdings in KEFI
Slide 6: Development Management
Development Management Wayne Nicoletto, Chief Operating Officer and Managing Director, KEFI Ethiopia – BSc Metallurgy, Grad Dip Mining (WASM) Wayne has 30 years' experience in the mining industry as a Metallurgist and a General Manager, specialising in start‐up and operation of gold mines in Africa,
Slide 7: Position
KEFI MINERALS POSITION
Slide 8: Greatest value inflection created from discovery and triggering of development
Greatest value inflection created from discovery and triggering of development Disclaimer in prospective ground with pro‐development Governments Location of KEFI’s portfolio in the ANS Ethiopia • Soon to trigger development at +2g/t Au open‐pit reserve of 1Moz • Target production to grow from initia
Slide 9: Tulu Kapi Project - robust cost position
Tulu Kapi Project ‐ robust cost position KEFI Operating Cash Costs $685/oz including Sustaining Capex is $773/oz and incuding Capex/Depreciation is $948/oz GFMS’s 2014 (Published in April 2015) All‐In‐Costs curve for the main global gold mining operations: 50% of gold mining sector is loss making on
Slide 10: Ethiopia's Ranking for Investment Attractiveness
Ethiopia’s Ranking for Investment Attractiveness Ethiopia ranked 51 of 109 countries globally in 2015 Fraser Institute Survey The table below shows Ethiopia’s ranking is better than most African countries Morocco Burkina Faso Ghana Namibia Botswana Eritrea Ivory Coast Ethiopia Madagascar Democratic
Slide 11: Ethiopia - A country on the rise
Ethiopia ‐ A country on the rise 15 years of 7‐10% GDP growth, with a HQ for African Union, provides UN pro‐development culture. peacekeepers for region World’s fastest growing economy. Ranks ahead of Kenya, Mali, Ethiopia is Second most populous country in Mozambique and South Africa for open for s
Slide 12: Timing
KEFI MINERALS TIMING
Slide 13: Gold Production of Currently Operating Mines
Gold Production of Currently Operating Mines Source: Metals Focus Database of Mines, World Gold Council 13
Slide 14: Project Capital Expenditure - at multi-year lows
Project Capital Expenditure – at multi‐year lows Source: Metals Focus Database of Mines, World Gold Council 14
Slide 15: At a Point of Value Inflection
At a Point of Value Inflection Edison Investment Research: Quote: Edison Report dated 2 November 2017 Valuation: Immediate 101% upside to the share price • Now that the higher throughput rate has been confirmed, we estimate that Tulu Kapi should be capable of generating average cash flows from opera
Slide 16: Undervalued compared to peer group of pre-development companies
Undervalued compared to peer group of pre‐development companies KEFI is today “FS completed” and is Financing to be “In Construction” EV/M&I Gold Company EV/NPV EV/Reserve EV/All Resource EV/Prod Resource Subgroup Averages (x) ($/oz) ($/oz) ($/oz) ($/oz) In Construction 1.19 155 100 61 159 FS comple
Slide 17: Comparison of Current Market Capitalisation
Comparison of Current Market Capitalisation With GOE Entry Price, NPV’s and Cantor Peer Stats 200 • Lowest graphed basis for valuation is current market cap 150 • Highest graphed basis for valuation equates to c. 37p price per current issued share • Closing the residual funding requirement of US$M 1
Slide 18: Financials
KEFI MINERALS FINANCIALS
Slide 19: Key Points of the Tulu Kapi Expansion Plan
Key Points of the Tulu Kapi Expansion Plan (100% of Tulu Kapi Gold Project – Open Pit only) 2017 2017 DFS Update 2015 DFS 1.9‐2.1Mtpa 1.5‐1.7Mtpa 1.2Mtpa Average head grade 2.1g/t gold 2.1g/t gold 2.1g/t gold Total gold production 980K oz 980K oz 961K oz Ore processing rate 1.9‐2.1Mtpa 1.5‐1.7Mtpa 1
Slide 20: Optimised mine plan
Optimised mine plan Rapid delivery of cash flow maximising value Mine design and scheduling at Stage 1 Tulu Kapi has been developed over Stage 3 three stages in order to maximise cash flows over the initial three years (Stage 1) This will facilitate rapid build up of cash reserves, repayment of
Slide 21: Development Funding
Development Funding (including investment already made of c. $60M) $M Total funding needs before project financing structure, including corporate and exploration 229 Extra funds required for project funding structure, mainly for interest during grace period 33 Total Applications 262 Finance SPV bond
Slide 22: Synchronising Project Scheduling
Synchronising Project Scheduling Community, Construction, Finance, Start‐up & Repayment • Community: o The Government needs to trigger the first physical activity, being the installation of infrastructure into the new host lands as part of the planned community resettlement program (Q4‐17 and Q1‐18)
Slide 23: Key Risk Management Features of the Mandated Project Finance
Some of the Key Risk Management Features of the Mandated Project Finance • All consortium principals: o are listed companies or Government, providing transparency, regulated corporate governance and accountability at all levels and for all roles o have both a project responsibility and a project inv
Slide 24: Organic Growth Pipeline
KEFI MINERALS ORGANIC GROWTH PIPELINE
Slide 25: Drilling at Tulu Kapi in Ethiopia
Drilling at Tulu Kapi in Ethiopia 25
Slide 26: Tulu Kapi - Mineral Resources and Ore Reserves
Tulu Kapi ‐ Mineral Resources and Ore Reserves Tulu Kapi Mineral Resource totals 20.2 million tonnes at 2.65g/t Au, containing 1.72 Moz Au Open Cut Reserve totals 15.5Mt at 2.12 g/t Au for 1.05 Moz Au. (Data from Snowden resource report February 2015) Cut‐off Tonnes Gold Ounces JORC (2012) Resource
Slide 27: Trenching at Tulu Kapi
Trenching at Tulu Kapi To sample one of the first lodes to be mined 27
Slide 28: Tulu Kapi - Underground Mine Potential
Tulu Kapi – Underground Mine Potential excluded from project economics at this stage Gold mineralisation may extend deeper and 600 to 800m further to the north ‐ potential for 1Moz below open pit EXISTING UNDERGROUND RESOURCE Ore mined 320,000 tpa at 5.2g/t Life of Mine 4 years Gold production 47,60
Slide 29: Saudi Arabia: 40% JV with Al Rashid Family
Saudi Arabia: 40% JV with Al Rashid Family “Artar” Red Hill at Jibal Qutman, In Saudi Arabia 29
Slide 30: Exploration projects in Saudi Arabia
Exploration projects in Saudi Arabia ELA and MLA 30
Slide 31: Saudi Arabia: proprietary database
Saudi Arabia: proprietary database KEFI database includes the mineral occurrence data set (“MODS”) which contains the coordinates, exploration history and resource potential compiled by the BRGM and USGS, of the 5,002 MODS in the Arabian‐Nubian Shield. This has allowed KEFI to rapidly field‐assess a
Slide 32: Contacts
Contacts Local community consultation before development starts at Tulu Kapi Email: info@kefiminerals.com Website: www.kefi‐minerals.com @kefiminerals KEFI Minerals plc 32
Slide 33: Thank You
KEFI MINERALS THANK YOU
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