Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Investor Presentation (July 2004)
26 slides from Kenmare Resources's investor presentation, July 2004
Slide 1: Moma Project Overview
Moma Project Overview July 2004
Slide 2: Disclaimer
Disclaimer This document, which is personal to the recipient, is issued in connection with the proposed placing and open offer of ordinary shares (“the Placing and the Open Offer”) in Kenmare Resources plc (“Kenmare” or the “Company”). This document is confidential and for distribution in the United
Slide 3: Kenmare Resources plc
Kenmare Resources plc. Ø Full List on Main Boards of London and Irish Stock Exchanges Ø Market Capitalisation approx. US$100m Ø Principal Activity Development and Operation of Mines Ø Major Asset : Moma Titanium Minerals Project in Mozambique Ø 288m Shares in Issue
Slide 4: Introduction to the Moma Project
Introduction to the Moma Project Ø Major TiO2 Feedstock Development in Northern Mozambique Ø Low Capital Costs Due to Location, Limited Infrastructure Requirements and Previous Acquisition of Major Items of Plant Ø Low Unit Operating Costs, Due to Location, Surface Mineralisation, Dredge Mining, Che
Slide 5: Moma Resources
Moma Resources Ø 14 Million Tonnes over 20 years Ø 63 Million Tonnes in Total
Slide 6: Bought Beenup Plants from BHP
Bought Beenup Plants from BHP Separation Plant Concentrator Plant
Slide 7: Mining & Processing Operations
Mining & Processing Operations . ss cm Concentrator Plant Stocker and Soll Storage Mining Dredge Dune Rehabilitation , 4 Pipeline Heavy Mineral + Concentrate Stockpile Mineral Separation Hmenite Rutile and Zircon Conveyor => Jetty =z) Barge =) Bulk Carrier
Slide 8: Competitive Advantages
Competitive Advantages Ø Location on Coast (No Overland Transport) Ø Surface Mineralisation (No Overburden) Ø Low Cost Dredge Mining Ø Infrastructure Requirements Fully Funded Ø Low Cost Hydro Power (US$0.018/kWh) Ø Significant Co-product Revenue Ø Ilmenite Products Suitable for Sulphate & Chloride
Slide 9: Environment
Environment From This To This… Virtually Zero Effect
Slide 10: Contractor: Multiplex Joint Venture
Contractor Joint Venture Between MULTIPLEX Fixed Price Development Contract Signed April 2004
Slide 11: Multiplex
Multiplex Stadium Australia – A$605m Ø Net worth A$1.6 billion Ø Turnover 2002 A$2.2billion
Slide 12: South African Process Engineering Group
Ø South African Based Process Engineering Group Ø Extensive Operating Experience in Africa Ø Specialist Expertise in Mineral Sands Ø General Engineer on Most Recent Mineral Sands Mine in South Africa
Slide 13: Fixed Price Contract
Fixed Price Contract Ø Base Price $220m; based on Currency Mix Ø Provision for Cost Overrun of up to US$20m, after which Totally Fixed Ø Contractor Shares Increasing Portion of Cost Overrun Ø Delay and Performance Damages
Slide 14: Kenmare Plc Board
Kenmare Plc Board Ø Charles Carvill, Chairman 40 Years Mining Experience. Founder Director of Tara Mines Ø Michael Carvill, Managing Director Chartered Mechanical Engineer, Wharton MBA Ø Tony McCluskey Financial Director B.Com, FCA, 13 Years With Kenmare Resources plc Ø Peter McAleer Non-executive D
Slide 15: Board
Board Managing Director Marketing Geological Finance Director Director Director Country Project Implementation Manager Manager Marketing Site Finance Manager Manager Controller Office Implementation Manager Team
Slide 16: Implementation Structure
Implementation Structure Kenmare Kenmare Project Manager Staff •Finance Aker Kvaerner •Marketing Client Rep. •Operations Project Manager •Government Liaison Camp Contracts Site Erection QA/QC Site Cost Manager Manager Superintendents Safety Manager Controller •QS Civil Camp •QS Mech. Mech. Contracto
Slide 17: Project Implementation Director
Project Implementation Director Ron Williams Ø Extensive Mining Experience in Remote Locations Ø Managed All Aspects of Mine Construction & Development Ø Has Worked in Africa Ø Proven Track Record Ø Known and Respected in the Industry
Slide 18: The "Product"
The “Product” Ø Ilmenite Ø Zircon Ø Rutile
Slide 19: Moma Annual Production
Moma Annual Production 615k Tonnes - Ilmenite gz 60k Tonnes - Zircon “W 17k Tonnes - Rutile
Slide 20: 2006 Ilmenite Shortage
Lenders’ Independent Industry Expert IBMA Report Ø Moma Lowest Cost Producer of Any Potential New Entrant to Industry Ø Moma Lowest Cost but One of All Existing Participants in Industry 0 06 n2 o c ti du P r o ma Mo Ø 2006 Ilmenite Shortage
Slide 21: Marketing
Marketing Ø Advance Sales already over 50% of first 5 years production Ø Ilmenite Sales to Pigment Industry Market Leaders Ø Premium Grade Zircon Sold to Largest Consumers in Industry Ø Rutile Sold into High Value Niche Market Ø Strong Market Interest in Remaining Product Ø Price Increases : Good Po
Slide 22: Financing Plan
Financing Plan Applications To Financial Completion US$m US$m Investment to Date 90 Capital Cost 221 Owners Costs 20 Operating & Financing Costs 77 318 408 Contingency Reserve 30 438
Slide 23: Capital Structure
Capital Structure Sources Equity US$m Previously Contributed 90 To Be Contributed 49 Third Party Subordinated Debt 66 Senior Debt 203 Overrun Contingency 30 438
Slide 24: Lender Group
Lender Group Senior-Debt Sub-Debt Total US$m Euro m US$m AfDB 40 - 40 ABSA : ECIC 80 - 80 EIB Euro 15 Euro 40 Euro 55 KfW : Hermes 30 - 30 KfW : MIGA 20 - 20 FMO 15 Euro 15 15 + Euro 15 Total 185 + Euro 15 Euro 55 185 + Euro 70 Project Agreements Signed : 18th June 2004
Slide 25: Kenmare – Moma Project Major Investor Opportunity
Kenmare – Moma Project Ø 70% Operating Margin Ø Product Market Deficit Projected Ø Forward Sales in Place Ø Low Technical Risk Ø Key Processing Plant Already Purchased Ø Long Track Record in Mozambique Ø Licences and Gov’t Agreements in Place Ø Project Loans Signed Major Investor Opportunity
Slide 26: Moma Project
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