Sephaku Holdings Limited · JSE:SEP
Sephaku — Investor Presentation (September 2010)
11 slides from Sephaku's investor presentation, September 2010
Slide 1: Investor presentation
Investor presentation September 2010 Disclaimer The information contained in this presentation or subsequently provided to the recipient of this presentation whether orally or in writing by or on behalf of Sephaku or its respective employees, agents or consultants ("Information") is provided to the
Slide 2: Who we are
Group structure 2 Who we are • Mineral development company • Focus on cement and fluorspar • JSE main board listing since 21 August 2009 • Share code: SEP • Market cap – R565 million Our strategic vision is to realise shareholder value by developing our mineral exploration assets up the value curve
Slide 3: Project evaluation
Project evaluation Cement Fluorspar CPR EVALUATION R8 R8.60 60 CPR EVALUATION R1 R1.80 80 Project fully funded DFS on mine completed October 2009 Fixed price turnkey contract signed EIA ongoing All regulatory approvals in place Mining right imminent Production end of 2012 Basic engineering completed
Slide 4: Exceptional returns… The opportunity
Exceptional returns… A strategic investment in the South African infrastructure space giving you…. • A project life IRR in excess of 27% • A five year exit IRR in excess of 50% • A great alternative to existing peers in the cement space • Exceptional ongoing cash generation • Highly efficient lowest
Slide 5: Achievements
Achievements March: raised R350m equity from Dangote November: Our project milestones awarded new order mining right by DME January: February: received approval completed BFS for Aganang EIA Key: (RoD issuedby DACE) Regulatory June: August: September: secured final COMMENCE Technical commissioned as
Slide 6: Fluorspar project overview
Fluorspar • Nokeng fluorspar project • Plattekop deposit • Outwash Fan deposit Limpopo Nokeng fluorspar project area Mpumalanga Gauteng North West Johannesburg Free State KwaZulu- Natal Lesotho Durban Northern Cape Eastern Cape Western Cape Port Elizabeth Cape Town 10 Fluorspar project overview • No
Slide 7: Strategic intent / Development
Strategic intent • Build a world scale HF/ATF plant • Strong domestic demand for aluminium tri-fluoride tri fluoride provides the base load • Proximity to raw material and market provides competitive advantage • Excess HF supplies a range of fluor-chemical production plants across the fence 12 Devel
Slide 8: The market today
The market today • Constant increase in world consumption of fluorspar • Lack of availability of commercially viable acid grade fluorspar around the world • Decline in China’s supply of fluorspar to the world market • Southern Africa imports 100% of ALF₃ consumption • Only 4 000 tons HF per annum ar
Slide 9: Concentrator and chemical plant project status
Concentrator plant project status • Completed a 10% <DFS < -5 % • Basic engineering completed • Project execution plan • initially July 2010 on site • October 2010 • Identified long lead items and risks • ball mills and vertical mills • transformers • filter press • reagent plant • Surface rights ne
Slide 10: Valuation of upside in Sephaku Fluoride
Valuation of upside in Sephaku Fluoride Implied value of Sephaku Fluoride Project Valuation Confidence level Investment value DCF value of fluorspar project R446 million (95% confidence) R245 million (only CaF2) DCF of chemical plant R859 million (70% confidence) R344 million Investment value at Apr
Slide 11: For further information please contact
For further information please contact: Nokuthula Nxumalo Investor Relations Manager Tel : +27 (0) 12 686 4800 Fax : +27 (0) 12 665 4391 Email : nokuthula.nxumalo@sephakucement.co.za 11
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