Nzuri Copper — Investor Presentation (July 2017)
26 slides from Nzuri Copper's investor presentation, July 2017
Slide 1: An Emerging Copper-Cobalt Company
AN EMERGING COPPER-COBALT ASX Code: NZC COMPANY • Feasibility Study imminent on low-cost copper-cobalt project • World-class exploration upside in one of the world’s richest copper belts – on the doorstep of Ivanhoe Mines’ giant Kamoa-Kakula discovery London Presentation – July 2017 www.nzuricopper.
Slide 2: Forward-Looking Statements, Disclaimer and CP Statement
Forward-Looking Statements, Disclaimer and CP Statement Forward-Looking Statement: This document contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-look
Slide 3: Key Investment Highlights
Key Investment Highlights ASX-listed copper-cobalt developer/explorer with a strong growth outlook HIGH QUALITY COPPER- NEAR-TERM PRODUCTION OUTSTANDING OPPORTUNITY STRONG SHARE REGISTER, COBALT PORTFOLIO OPPORTUNITY FOR A TIER-1 DISCOVERY WELL-FUNDED • Focused on the world-class African • Advanced
Slide 4: Corporate Overview
Corporate Overview Strong balance sheet and share register; experienced management team with extensive African experience Capital Structure* (A$) Board and management are shareholders and motivated to succeed Market Cap ~$42M @ 18.5c/share Dr Peter Ruxton – Non-Executive Chairman Cash $6.1M • Co-fou
Slide 5: Copper and Cobalt – The Metals of Tomorrow
Copper and Cobalt – The Metals of Tomorrow Copper demand continues to be driven by China’s transitioning economy • Chinese copper demand underpinned by several key factors, notably: – Building fit-outs driving demand for copper wiring, electrical equipment etc.; and – The switch to Electric Vehicles
Slide 6: Copper and Cobalt – The Metals of Tomorrow
Copper and Cobalt – The Metals of Tomorrow Cobalt is one of the best-performing commodities of the past 12 months • Cobalt prices have hit six-year highs underpinned by accelerating demand and stagnant supply growth • Strong forecast demand growth driven by use in lithium cobalt batteries • Cobalt a
Slide 7: African Copper Belt – Tier 1 Address
African Copper Belt – Tier 1 Address The world’s leading copper-cobalt province, home to its biggest new copper discovery • Produced more than 50% of the world’s cobalt in 2015 • Produced 10% of the world’s copper in 2015 • World-class copper mines being developed: – Ivanhoe Mines’ Kamoa-Kakula depo
Slide 8: Kalongwe – The Foundation Asset
Kalongwe – The Foundation Asset An opportunity for near-term production and cash-flow • Located in the north-western portion of the African Copper Belt, ~15km from Ivanhoe Mines’ Kamoa- Kakula deposit • 85% interest held by Nzuri Copper, with remaining 15% held by local partner GICC and DRC Governme
Slide 9: Kalongwe – Resources and Development
Kalongwe – Resources and Development An opportunity for near-term production and cash-flow • Significant high-grade oxide Cu-Co resource, outcropping at surface: – JORC Resource of 302,000t of copper and 42,700t of cobalt • Positive Scoping Study completed in 2015 • High-quality Feasibility Study (+
Slide 10: Kalongwe – Project Overview
Kalongwe – Project Overview Low-cost open pit mining operation DMS Modules Dam & Kalongwe Cu-Co Project – Key Parameters diversion channel Waste Target production profile 20ktpa Cu / 1.7ktpa Co Pit Design Throughput 1.0Mtpa Tails Stage 1 Mine Life 5 years (Evaluating 8-year option) Mining Method Ope
Slide 11: Kalongwe – Metallurgical Testwork
Kalongwe – Metallurgical Testwork Simple/Robust processing flowsheet delivering a high-quality product with low impurities • Good gravity recovery 1Mtpa – Ability to produce saleable 10%, 15% & 20% copper concentrates from a - 12mm coarse crush and Dense Media Separation process – Cu recovery varied
Slide 12: Kalongwe – A Significant Cobalt Producer
Kalongwe – A Significant Cobalt Producer High cobalt grade relative to ASX-listed peers with low capital intensity and near-term production pathway Resource Cobalt Grade Contained Cobalt CAPEX Company Project Location Stage (Mt) (%) (kt) (US$M) Nzuri Copper (ASX: NZC) Kalongwe DRC 13.3 0.32* 43 Feas
Slide 13: Kalongwe – Road to Production
Kalongwe – Road to Production Rapid pathway to production and cash-flow • Nzuri Copper can move quickly into production at Kalongwe, generating cash-flow to underpin its broader growth ambitions in the region… 2017 2018 2019 2020 Description Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Feasibilit
Slide 14: Nzuri – Our Position in the Community
Nzuri – Our Position in the Community Strong community and stakeholder relations • Kalongwe project has an approved Environmental and Social Permit in place (EIE) • Clear commitments in the EIE that will benefit the local community • Strong support at all levels within the local community – social l
Slide 15: Long-Term Growth – The Fold Thrust JV
Long-Term Growth – The Fold Thrust JV Hunting for elephants in the world’s Tier-1 copper belt • JV with Ivanhoe Mines – Nzuri can acquire a 98% interest • Substantial relinquishment of ground by Ivanhoe has resulted in ~334km2 licence area with exceptional exploration potential • Proximity to world-
Slide 16: The Fold Thrust JV – Proximity to World-Class Mines
The Fold Thrust JV – Proximity to World-Class Mines Hunting for elephants in the world’s Tier-1 copper belt FTBJV License KOV KANSUKI KAMOA 726 Mt @ 4.48% 217.1 Mt @ Deposit or Mine 937 Mt @ 2.55% Cu and 0.53% Co DEZIWA 0.82% CU and Cu 518 Mt @ 1.31% 0.24% Co TILWEZEMBE Cu and 0.15% Co 23.3 Mt @ 1.8
Slide 17: Monwezi Cluster – Strategic Target Near Kalongwe
Monwezi Cluster – Strategic Target Near Kalongwe Initial round of drilling completed with more to come • Directly along strike from Kalongwe • Located on the Kamilongwe thrust trend: – Associated with other major deposits such as Deziwa, Tilwezwmbe, Mutanda and Kansuki • Initial drilling at Monwezi
Slide 18: Katete – A Major Geochemical and Structural Target
Katete – A Major Geochemical and Structural Target Drilling currently underway • Large multi-element geochemical anomaly • Fieldwork has confirmed at least three distinct fault blocks which are thrust on top of each other along W-E oriented thrusts. Thrusts act as fluid conduits, with potential to p
Slide 19: Kasangasi – On the Doorstep of a Giant
Kasangasi – On the Doorstep of a Giant A major discovery opportunity located just south of world-class Kakula deposit • Located 17km south-west of Ivanhoe Mines’ Kakula and newly discovered Kakula West deposits • Shares strong similarities with the Kamoa-Kakula: – Shared stratigraphic position: both
Slide 20: The Fold Thrust JV – Aggressive Exploration Program
The Fold Thrust JV – Aggressive Exploration Program Exploration, drilling and action on several fronts for the rest of 2017 and beyond Target Area June July August September October November December Phase 1 RC drilling – Phase 1 Assay Phase 2 Assay and Monwezi West Cluster Phase 2 Drilling complete
Slide 21: Summary
Summary Near-term production and cash-flow; longer term company-maker through focused exploration • High quality asset base in world’s premier copper belt • Two-pronged strategy to deliver growth and value • Development strategy advancing rapidly with Feasibility Study on Kalongwe Oxide Copper Proje
Slide 22: Contacts & Appendices
An Emerging Copper and Cobalt Company CONTACTS & APPENDICES www.nzuricopperlimited.com.au Investor Relations Contacts: Mark Arnesen Anthony Begovich Nicholas Read CEO/Executive Director CFO/Company Secretary Investor Relations – Read Corporate T: +61 (0)8 6424 8100 T: +61 (0)8 6424 8100 T: (+61-8) 9
Slide 23: Appendix – Nzuri Corporate Organisation
Appendix – Nzuri Corporate Organisation NZURI COPPER LIMITED (AUS) 100% Others KALONGWE RESOURCES PTY LTD (AUS) 85% KALONGWE MINING SA (DRC) 23
Slide 24: Appendix – Kalongwe Mining Ownership
Appendix – Kalongwe Mining Ownership Large push by Nzuri in 2016 to streamline ownership of the Kalongwe Mining Project to facilitate future development Ownership as at 31 December 2015 Current Ownership Govt (5%) Govt (5%) GICC Traxys GICC (10%) (28.5%) (38%) Nzuri Copper Nzuri Copper (28.5%) (85%)
Slide 25: Appendix – Company History
Appendix – Company History July 2016 November 2013 28 June 2005 - Dec 2014 October 2016 January 2017 ASX : Listed as RER 23 June 2005 Exploration, Acquired 30% interest in the Kalongwe Copper/ Capital raising to Exploration Name Change to:- development & Cobalt project. Completed positive Scoping St
Slide 26: Appendix – Kalongwe Mineral Resource Estimate
Appendix – Kalongwe Mineral Resource Estimate As per ASX Announcement 5 February 2015 Weathering Domain Measured Indicated Inferred Total Tonnage Ave. Cu Ave. Co (%) Tonnes Cu Tonnes Co profile (Mt) (%) 1.24Mt@ 3.35% 2.45Mt @ 2.27% 1.24Mt @ 1.60% Cu Only1 4.94 2.37 - 117,200 - Cu Cu Cu Oxide 2.07Mt