Slide 1: Forsys Metals Investor Presentation Q4 2014
Forsys Metals Investor Presentation Q4 2014 Marcel Hilmer, CEO TSX: FSY | FSE: F2T | NSX: FSY
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward looking
Slide 3: Advancing Africa's most compelling uranium project
Advancing Africa’s most compelling uranium project Investor Presentation | Q4 2014 | Page 3
Slide 4: Norasa: A unique project and opportunity
Norasa: A unique project and opportunity • 79Mlbs of U308 Reserves at 202ppm • 103Mlbs of M&I Resources + 22Mlbs of Inferred of Resources Large U308 Project • Long life mine with targeted annual production of 5.2Mlbs • US$40M in exploration and development expenditure to date • US$410M NPV post-tax
Slide 5: Capital Structure
CAPITAL STRUCTURE Forsys Metals Shareholder Base Shares Outstanding* 119.3 M 0.62% Insiders Options** 2.5 M Fully Diluted* 121.8 M 32.03% Institutional Cash** $0.8M 67.35% Share Price* $0. 28 Retail 12 months range $0.23 -$0.61 Avg. daily volume 3 Mth’s 21 K Market Cap (diluted) CAD $34 M * As of Oc
Slide 6: Positive Uranium Fundamentals
POSITIVE URANIUM FUNDAMENTALS • Global power consumption to grow 4% every year to 2020+ 30% growth in • 30 nuclear power countries expanding capacity nuclear power • 45 nuclear-free countries by 2020* looking to add nuclear power • Driven by rising fossil fuel costs *Global Data, 2014 and harmful em
Slide 7: Uranium Recovery Underway
URANIUM RECOVERY UNDERWAY China India Russia U.S.A Saudi Arabia World Total* Under Construction 27 6 10 5 0 71 Planned 60 22 31 5 0 174 Proposed 120 35 18 17 16 301 Total 207 63 59 27 16 546 Operable 21 21 33 100 0 436 Growth led by 546 New emerging reactors to countries without be built or domestic
Slide 8: Uranium Supply Crisis Brewing
URANIUM SUPPLY CRISIS BREWING • Annual U3O8 demand 180M lbs but current production supply 150M lbs • Gap filled by declining secondary sources, e.g. concluded HEU agreement between U.S.A and Russia • Strong fundamentals support $65 - $70/lb long-term analyst price forecasts * Graph Dundee Capital Ma
Slide 9: Namibia: Proven Uranium Jurisdiction
NAMIBIA PROVEN URANIUM 5 th JURISDICTION largest global producer of uranium • Pro-business, stable democracy • Fair and balanced tax code • Metals: uranium, gold, diamonds, zinc, copper and 11.5% GDP derived from lead mining Investor Presentation | Q4 2014 | Page 9
Slide 10: Norasa | Ideal Location
NORASA | IDEAL LOCATION N NORASA URANIUM PROJECT AREVA’S TREKKOPJE MINE ARANDIS RIO TINTO’S ROSSING MINE NAMIBIA Mine Sites PALADIN’S SWAKOPMUND Towns LANGER HEINRICH MINE 35km from Rio Tinto’s Rossing Mine Investor Presentation | Q4 2014 | Page 10
Slide 11: Norasa | World Class Resources and Reserves
NORASA | WORLD CLASS Resources Reserves Total M&I: 103 Mlbs* Total P&P: 79 Mlbs* Grade: 197 ppm Grade: 202 ppm U 3O 8 • Consolidation of 3 zones: Valencia Main / Satellite Pit & Namibplaas • Estimated Inferred Resource: 50Mt grading 198ppm for 22Mlbs of U3O8 • Open pit environment * Total Measured &
Slide 12: Infrastructure: #1 in Africa
INFRASTRUCTURE: #1 IN AFRICA* • Short and medium term supply of water from Areva’s desalination plant Water Supply • NamWater’s own desalination plant to provide long term requirements of up to 20 million cubic metres per annum • Namibia signed electricity import agreement with Mozambique in 2013 fo
Slide 13: Norasa in Perspective: Future Global Producer
NORASA IN PERSPECTIVE Future Global Producer 6 7520 Top 3386 annual 3146 3065 2661 2305 2289 2135 2011 1955 production in tonnes U3O8 Data from the World Nuclear Association and Forsys NI 43-101 Technical Report March 27, 2014 Investor Presentation | Q4 2014 | Page 13
Slide 14: Norasa: Compelling Economics
Norasa: Compelling Economics 20101 20142 $245m $410m Post-tax NPV Post-tax NPV $36.43/lb $34.76/lb Cash Costs3 Cash Costs3 1 Snowden, Valencia Uranium (Pty) Ltd: Addendum to June 2009 Technical Report; Project No 696 dated January 2010 2 Compliant NI 43-101 Technical Report released on March 27, 201
Slide 15: Norasa | 2014 Technical Report
NORASA | 2014 Technical Report* Capital cost USD $392M Plant throughput Mtpa 11.2 Production MLb/pa 5.0 Cash costs - 5 Yrs $/lb $34.76 - LoM $38.20 Average grade ppm 202 Recoveries % 89.1 Revenue (LoM) USD $4.4B EBITDA $1.8B IRR % 36.0 NPV (discount rate 8%) USD $410M * 2014 NI 43-101 Technical Repo
Slide 16: Valencia Zone | Fully Permitted
VALENCIA ZONE | FULLY PERMITTED Permit Summary Permit Issued By Status Mining Licence (ML149) Ministry of Mines and Energy Accessory Works Ministry of Mines and Energy Environmental Clearance —Valencia Village Ministry of Environment and Tourism Environmental Clearance Ministry of Environment
Slide 17: Norasa Project Schedule
NORASA PROJECT SCHEDULE Period Objective % Completed Notes The DFS will utilize the updated reserves, Definitive Feasibility Study for Q1 15 60 Engineering Cost Study and previous TR's to consolidated Norasa Project deliver a definitive report on the project Commence construction of the Norasa Q2/3
Slide 18: Management
MANAGEMENT Marcel Hilmer 30 years of senior management experience with global public and private organizations, specifically with international mergers and CEO & Exec. Director acquisitions in Africa, Europe, Asia and Australia. A long standing fellow of the Institute of Chartered Accountants in Aus
Slide 19: Directors
DIRECTORS Martin R. Rowley Graduated from the University of Western Australia with a Bachelor of Commerce degree in 1975. He worked as executive assistant to Independent Director & the Board of Directors of a large Australian public company from 1980 to 1984. He then established his own resource con
Slide 20: Valuation Against Peers
VALUATION AGAINST PEERS 3.0 $2.47 2.5 EV/lb ($) 2.0 1.5 $1.27 Average 1.0 $0.71 $0.70 0.5 $0.46 $0.77/lb $0.24 $0.19 $0.12 0.0 DML.T KIV.V MGA.T UEX.T LAM.T DYL.AX FSY.T BAN.T Current EV and expected sector recovery provide attractive entry point Investor Presentation | Q4 2014 | Page 20
Slide 21: Forsys Investment Summary
Poised to capitalize on emerging uranium sector recovery Mining friendly jurisdiction Forecast production of >5Mlbs of uranium/YR FORSYS Updated Feasibility Study due Q1/15 INVESTMENT Large Reserves and strong economics in a low cost SUMMARY environment Advancing towards production in 20
Slide 22: Contact Information
Australian Representative Office CONTACT Marcel Hilmer, CEO 18 Richardson Street INFORMATION West Perth WA 6005 +61 (0) 8 9426 6400 info@forsysmetals.com Namibian Operations Dag Kullmann, General Manager 1st Floor, Makarios Centre Cottage Avenue Swakopmund +264 (0) 64 402 772 kullmann@forsysmetals.c
Slide 23: Appendix
APPENDIX
Slide 24: Resources & Reserves
RESOURCES & RESERVES Category Cut-Off Grades Tonnes [M] U3O8 [ppm] U308 [mlb] Measured + Indicated Resources Val 60ppm: Nam 100ppm 447 153 150 Val 100ppm: Nam 160ppm 237 197 103 Val 140ppm: Nam 200ppm 125 248 68 Inferred Resources Val 60ppm: Nam 100ppm 105 156 36 Val 100ppm: Nam 160ppm 50 198 22 Val
Slide 25: Open Pit Designs
OPEN PIT DESIGNS Valencia Main & Satellite Namibplaas Valencia pit design, isometric view with the Namibplaas pit design, isometric view with higher grade resource blocks within the pits. the higher grade resource blocks within the Mining licence boundary shown in red. (view pit. (view N) NNE) Prese
Slide 26: NI 43-101 Technical Report: Planned Annual Uranium Production
NI 43-101 Technical Report* 10.0 Planned Annual Uranium Production 250 Uranium MLbs Head Grade 9.0 8.0 200 7.0 6.0 150 5.0 4.0 100 3.0 2.0 50 1.0 0.0 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Investor Presentation | Q4 2014 | Page 26 * 2014 NI 43-101 Technical Report re