Contango Holdings Plc · LSE:CGO
Contango — Investor Presentation (November 2022)
26 slides from Contango's investor presentation, November 2022
Slide 1: Contango Investor Presentation November 2022
CONTANGO INVESTOR PRESENTATION November 2022 HOLDINGS Plc NOVEMBER 2022 CONTANGO INVESTOR PRESENTATION 1
Slide 2: Disclaimer
CONTANGO HOLDINGS PLC DISCLAIMER This presentation (“Presentation”), and the information contained herein, is not for general release, distribution regarding the Ordinary Shares or an investment therein. The Ordinary Shares have not been and will not be reg- or publication into or in any other juris
Slide 3: Overview: Lubu Coal Project
CONTANGO HOLDINGS PLC OVERVIEW LUBU COAL PROJECT UNLOCKING THE 2.6Bn TONNE RESOURCE INTO CASHFLOW Coking Coking coal strategy well underway Mine construction and wash plant installation near completion Entered into first offtake with AtoZ, commodities group, for delivery of 120Ktpa by end Q4 2022 Ad
Slide 4: Strategy: Delivering Coal into Buoyant Coal Markets
CONTANGO HOLDINGS PLC STRATEGY DELIVERING COAL INTO BUOYANT COAL MARKETS The macro demand and Contango is now on the verge of The company has raised £7.5m supply picture is favourable for first sales of coking coal following through a placing to accelerate all Lubu products with record completion of
Slide 5: Road Map: Becoming a Fully Integrated Producer of Coke
CONTANGO HOLDINGS PLC ROAD MAP BECOMING A FULLY INTEGRATED PRODUCER OF COKE H1 2023 H2 2023 Sale of thermal coal Install coke batteries from additional offtake and produce coke agreements Q4 2022 First sales of coking coal Q3 - Q4 2022 Site preparation Build 30km access road Installation of wash pla
Slide 6: Corporate Overview
CONTANGO HOLDINGS PLC CORPORATE OVERVIEW Existing Capital Structure Contango Holdings Share Price 12 Standard Listing CGO 10 8 Current Shares in Issue 472,724,023* 6 Market Cap (@ 6p) £28.36M 4 2 Warrants 117.3M (@ 9.9p VWAP) 0 Management Options 0 9/27/2121 10/27/2021 11/27/2021 12/27/2021 27/1/202
Slide 7: The Board
CONTANGO HOLDINGS PLC THE BOARD CARL ESPREY Chief Executive Officer Carl qualified as a Chartered Accountant and Chartered Financial Analyst, and has built an expansive career in the natural resource investment and development sector. After beginning his career at Deloitte in Johannesburg in 2001, M
Slide 8: Selected Management
CONTANGO HOLDINGS PLC SELECTED MANAGEMENT Jacques Cormack Siphathisiwe Nkomo Country Manager, Zimbabwe Marketing Manager Mr. Cormack has significant experience in operations management and is the Managing Ms Siphathisiwe Nkomo (Phathi) holds a Bachelors in Business Administration from the Director o
Slide 9: Contango Asset Portfolio
CONTANGO HOLDINGS PLC CONTANGO ASSET PORTFOLIO MALI GARALO-NTIELA GOLD LUBU COKING COAL PROJECT PROJECT 2.6Bn tonne resource Potential gold resource increased to 1.8Moz in 2021 Initial focus on Block 2, which contains c. 700Mt (NI43-101) of coking and thermal Exploration work is ongoing to better un
Slide 10: The Lubu Coal Project
CONTANGO HOLDINGS PLC THE LUBU COAL PROJECT Lubu Coal Project Zimbabwe ZIMBABWE NOVEMBER 2022 CONTANGO INVESTOR PRESENTATION 10
Slide 11: The Lubu Coal Project
CONTANGO HOLDINGS PLC THE LUBU COAL PROJECT At over 2.6Bn tonnes, Lubu is one of the largest coal resources in Southern Africa Contango owns 70% of Lubu and benefits from cost recovery from the balancing 30% held by local African partners Lubu is expected to develop a suite of coals to service a var
Slide 12: Completed work programme at Lubu 2022 YTD
CONTANGO HOLDINGS PLC THE LUBU COAL PROJECT Completed work programme at Lubu 2022 YTD DELIVERY OF MINING EQUIPMENT TO SITE ACQUIRED FLEET OF TRUCKS BUILT STAFF ACCOMMODATION CAMP COMMENCED MINING AT BLOCK 2 BUILT 30KM ACCESS ROAD TO LUBU CLEARED SITE TO INSTALL WASH PLANT AND ASSOCIATED INFRASTRUCTU
Slide 13: Phase 1 - Coking Coal
CONTANGO HOLDINGS PLC PHASE 1 - COKING COAL • Phase 1 economics are extremely healthy and the areas targeted are specifically chosen to compliment the Phase 2 development • When operational, infrastructure at site will have the capacity to mine, wash & sell upto 240Ktpa • Additional capacity of 240K
Slide 14: Phase 1B - Entry into Thermal Coal
CONTANGO HOLDINGS PLC PHASE 1B - ENTRY INTO THERMAL COAL Demand New demand from energy displacement in European markets Coal power stations now being redeployed by European countries Gas price increases has stengthened the demand for coal due to substitution Coal power generation up 31% in Germany i
Slide 15: Phase 1B - Thermal Coal
CONTANGO HOLDINGS PLC PHASE 1B - THERMAL COAL • A new complimentary strategy based on significantly improved market fundamentals for thermal coal • Thermal coal price has risen from - $125/t to $450/t over last 12 months • Circa 60% of the coal at Block 2 is thermal and originally expected to be min
Slide 16: Phase 2 - Coke
CONTANGO HOLDINGS PLC PHASE 2 - COKE • Following production & sale of coking coal, the company intends to manufacture coke at site • Sales will target South African and global ferro-alloy and industrial markets • Numerous discussions held with a mixture of commodity traders and industrial consumers.
Slide 17: Summary
CONTANGO HOLDINGS PLC SUMMARY Asset Lubu is a strategic coal asset in Southern Africa with over 2.6bn resources of coking and thermal coal Site infrastructure and mine near completion Wash plant installation underway Completed coking coal test confirm high quality coking coal/coke product to global
Slide 18: Appendix
CONTANGO HOLDINGS PLC APPENDIX NOVEMBER 2022 CONTANGO INVESTOR PRESENTATION 18
Slide 19: Possible Market Volumes and Pricing
CONTANGO HOLDINGS PLC POSSIBLE MARKET VOLUMES AND PRICING Market Typical Required Volume Indicative Price Product Per Month (Usd/Ex-Mine) Thermal Coal International Market 10,00 -20,000T $75-100 Thermal Coal Hwange Power Station 120,000T 45 Industrial Coal (sold as NPD) Lafarge Zimbabwe 2000T 66 Ind
Slide 20: Resource Table - As at April 2018
CONTANGO HOLDINGS PLC RESOURCE TABLE - AS AT 30 APRIL 2018 Block Seam Ply Thick Area Volume Density GTIS (Mt) Drill Grid Confidence Geological TTIS (Mt) (m) (mm²) (mm²) (ton/m³) (m xm) Level Loss (%) B1 ALL ALL 26.78 0.022 0579 1.675 0.968 147 INFERRED 20 0.774 B2 ALL ALL 36.33 16.452 499.960 1.652
Slide 21: Project Gallery
CONTANGO HOLDINGS PLC THE LUBU COAL PROJECT - GALLERY PROJECT GALLERY NOVEMBER 2022 CONTANGO INVESTOR PRESENTATION 21
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Slide 26: CONTANGO
CONTANGO NOVEMBER 2022 CONTANGO INVESTOR PRESENTATION 26
Contango Holdings — Investor Presentation (November 2022) on 6ix