Kgl Resources Limited · ASX:KGL
Kgl Resources — Investor Presentation (April 2022)
42 slides from Kgl Resources's investor presentation, Apr 13, 2022
Slide 1: Equity Raising – Investor Presentation
For personal use only Equity Raising – Investor Presentation Pro-rata traditional non-renounceable entitlement offer 13 April 2022 KGL Resources Limited NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising 2022
Slide 2: Important Notices & Disclaimer
Important Notices & Disclaimer For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES No offer to acquire New Shares: The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in KGL in any jurisdiction in which it This present
Slide 3: Important Notices & Disclaimer
Important Notices & Disclaimer For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES To the maximum extent permitted by law, KGL and the Relevant Parties disclaim any responsibility for any errors or omissions in such information, including the financial Financial information (c
Slide 4: Jervois Project Development
Jervois Project Development For personal use only Feasibility Study expected mid year Mining method and mineral processing Mining method and mineral processing - settled Two open pit mines and three underground mines, using conventional earthmoving equipment and long hole stoping mining methods,
Slide 5: Jervois Project Development (cont.)
Jervois Project Development (cont.) For personal use only Significant progress on a number of fronts Project fully permitted Updated Resource of 22.87MT at 2.04% Cu, containing 465.6kt of Cu metal Binding offtake agreement with Glencore supports development funding: Evergreen with minimum 5
Slide 6: Jervois Project Development (cont.)
Jervois Project Development (cont.) For personal use only Growing certainty on key economic inputs Mine plan based on updated Jervois Resource now complete Capital Estimate nearing completion: Modifications to load out area to suit Glencore Agreement underway Contingency allocation also now
Slide 7: Feasibility Study released in short term (cont.)
Feasibility Study released in short term (cont.) For personal use only Key developments since Pre-Feasibility Study - completed Dec 2020 Capital Cost increases due to industry wide inflation and some scope changes at Jervois Operations simplified and transportation costs reduced in line with Gle
Slide 8: Development timeline
Development timeline 2020 2021 2022 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q For personal use only Drilling and exploration Resource Definition Resource Enhancement Exploration Development activities PFS ILUA Permitting Updated Resource Capital Raise Reserve Feasibility Study
Slide 9: Favourable Macro Tailwinds
Favourable Macro Tailwinds For personal use only KGL Resources Limited Equity Raising 2022 9
Slide 10: Jervois Copper Project
Jervois Copper Project KGL Resources is creating the next Australian copper hub in the Northern Territory For personal use only Consolidating the proximate & prospective Reward, Rockface and Bellbird deposits Robust PFS led to Feasibility Study – planned delivery of mid 2022 Direct access to
Slide 11: Binding Offtake Agreement with Glencore
Binding Offtake Agreement with Glencore For personal use only Terms Key benefits • Evergreen with minimum 5–year term from Certainty of concentrate sales for the project – commercial production supporting the funding strategy • Covers 100% of copper concentrate from Strong project support from a
Slide 12: Corporate Structure and Shareholders
Corporate Structure and Shareholders Capital Structure For personal use only Australian Stock Exchange (ASX) code KGL No debt ASX Share price (close 12 April 2022) $0.415 • Cash $7.47m (31 March 2022) Shares outstanding 392 M • No debt Options on Issue 1M Supportive shareholder base Market capitalis
Slide 13: Equity Raising
For personal use only Equity Raising
Slide 14: Equity Raising Summary
Equity Raising Summary Non-renounceable entitlement offer For personal use only Equity raising to raise up to AUD $24.2 million, comprising: a 1 for 6 pro-rata traditional non-renounceable entitlement offer (Entitlement Offer) Not underwritten Offer Structure & Size Minimum raising of AUD $9
Slide 15: Equity Raising Summary
Equity Raising Summary Non-renounceable entitlement offer For personal use only No underwriting The Equity Raising is not underwritten (and is subject to a minimum raise of AUD 9.9 million) 1 KGL’s two largest shareholders, KMP Investments (24.53%) and Denis Wood (9.07%), are supportive and have
Slide 16: Funding & Pro-Forma Capital Structure
Funding & Pro-Forma Capital Structure For personal use only Sources & Uses Pro-Forma Capital Structure Sources of Funds $ (Min) $ (Max) Post Equity Raising Current Key Information 12-Apr-22 (min) (max) Existing Cash Position 1 A$7.5m A$7.5m Share Price 3 A$0.415 A$0.412 A$0.409 Entitlement Offer 2 A
Slide 17: Driving the Jervois Copper Project
Driving the Jervois Copper Project Many years’ experience in project evaluation, For personal use only feasibility and development Executive management team Simon Finnis Amy Treble Allan Reid John Levings Managing Director / CEO Chief Financial Officer Project Director Chief Geologist Over 30 years
Slide 18: Equity Raising Timetable
Equity Raising Timetable Pro-rata traditional non-renounceable entitlement offer For personal use only Event Date Announcement of Offer Wednesday, 13 April 2022 “Ex” date Tuesday, 19 April 2022 Record date for Offer Wednesday, 20 April 2022 (at 7.00pm (Sydney time)) Offer information booklet release
Slide 19: Appendix A: Key Risk Factors
For personal use only Appendix A Key Risk Factors
Slide 20: Key Risk Factors
Key Risk Factors Activities in KGL and its controlled entities, as in any business, are subject to risks which may impact on KGL’s future performance. There are a number of factors, both specific to KGL and of a general nature, which may affect the future operating and financial performance and posi
Slide 21: Key Risk Factors
Key Risk Factors MATERIAL BUSINESS RISKS For personal use only Exploration Risk The success of KGL depends on the delineation of economically mineable reserves and resources, access to required development capital, movement in the price of commodities, securing and maintaining title to KGL’s explora
Slide 22: Key Risk Factors
Key Risk Factors MATERIAL BUSINESS RISKS For personal use only Regulatory Risk (cont…) Mining and exploration tenements are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. Renewal conditions may include increased
Slide 23: Key Risk Factors
Key Risk Factors MATERIAL BUSINESS RISKS For personal use only Resource and Reserve Estimate Risk Resource and reserve estimates are expressions of judgement based on knowledge, experience and industry practice. These estimates were appropriate when made but may change significantly when new informa
Slide 24: Key Risk Factors
Key Risk Factors MATERIAL BUSINESS RISKS For personal use only Fluctuations in Copper Price and Australian Dollar Exchange Rate The copper mining industry is competitive. There can be no assurance that copper, silver and gold prices will be such that KGL can mine its deposits at a profit. Copper and
Slide 25: Key Risk Factors
Key Risk Factors GENERAL RISK FACTORS For personal use only Mineral exploration and mining may be hampered by circumstances beyond the control of KGL and are speculative operations which by their nature are subject to a number of inherent risks. These include general risk factors such as the followi
Slide 26: Key Risk Factors
Key Risk Factors GENERAL RISK FACTORS For personal use only Securities Investment Risk Applicants should be aware that there are risks associated with any securities investment. Securities listed on the stock market, and in particular securities of mining and exploration companies, have experienced
Slide 27: Appendix B: Additional KGL Information
For personal use only Appendix B Additional KGL Information
Slide 28: Investment highlights
Investment highlights Australia’s next copper producer For personal use only High >2.0% copper Feasibility advanced - Near-term growth Funding plan being grade Resource1 – project fully permitted opportunities finalised unique vs. global Cu Updated FS expected for Resource and projects mid 2022 Mine
Slide 29: Resource update
Resource update Exceptional growth in Resource For personal use only 2.15% 800 2.04% 2.1% 700 1.8% 1.59% 600 1.52% Copper Metal (kt) Cu Grade (%) 1.5% 500 1.30% 1.30% 1.25% 466 1.10% 1.07% 410 1.2% 400 369 375 146 327 127 279 125 0.9% 300 220 191 0.6% 200 150 170 179 113 284 319 69 250 100 0.3% 113
Slide 30: Project Resources
Project Resources For personal use only Mineralised Resource Grade Metal Mass Copper Silver Gold Copper Silver Gold Area Category (Mt) (%) (g/t) (g/t) (kt) (Moz) (koz) Indicated 3.84 1.80 39.4 0.31 69.06 4.86 38.2 Reward Inferred 0.65 0.92 9.2 0.07 5.91 0.19 1.5 Open Cut Potential > 0.5 % Cu Indicat
Slide 31: Rockface Depth Potential
Rockface Depth Potential Copper assays up to 61.4% Cu For personal use only Rockface Deposit 3.53Mt @3.07% Cu (indicated & inferred) Recent drilling into the north lens produced record copper assay of 61.4% over true width 0.74m True width intersections include: • KJCD481 – 6.28m @ 2.39%Cu •
Slide 32: Upside at Reward
Upside at Reward For personal use only UPSIDE AT REWARD Reward (Long Section – Looking West) Reward Reward South Reward South North High-grade Gap Exploration Exploration Silver Strike Drill-out Boxcut Reward Open Pit Reward Resource Reward Reward North Domains UG IP Reward South IP IP Limit of IP L
Slide 33: Upside at Reward
Upside at Reward For personal use only High-grade Silver Strike UPSIDE AT REWARD KJCD416 (Long Section – Looking West) Reward Reward 40m @ 731 g/t Ag incl. Reward North South 5m @2,683 g/t Ag Gap Exploration Exploration (Current) Drill-out (Current) Boxcut Reward Open Pit Reward Resource Reward Rewa
Slide 34: Exploration Strategy
Exploration Strategy Unlocking the potential of the Jervois copper hub For personal use only Significant Resource increase reported Drilling Ongoing around Reward – late 2021 assay results imminent Rockface depth potential • Accessible extension with strong potential • Drill core from KJCD481D
Slide 35: Environment, Social and Governance
Environment, Social and Governance KGL is focussed on implementing industry For personal use only leading ESG practices Environment Social Governance Authorisation granted and Mining Employees sourced locally where KGL has developed a set of guiding Management Plan approved by the possible, re
Slide 36: Summary and Outlook
For personal use only Summary and Outlook Globally significant high-grade greenfield copper project Key workstreams for 2022 poised for development Approvals complete • Finalise funding strategy • Complete Reserve Clear pathway to production with offtake signed • Finalise Feasibility Study S
Slide 37: Disclosures
Disclosures For personal use only Competent Person Statement The Jervois resources information were first released to the ASX on 23/03/2022 and complies with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the or
Slide 38: Appendix C: Foreign Selling Restrictions
For personal use only Appendix C Foreign Selling Restrictions
Slide 39: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may For personal use only not be distributed to any person, and the New Shares may not be offered or sold, in any country outs
Slide 40: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may For personal use only not be distributed to any person, and the New Shares may not be offered or sold, in any country outs
Slide 41: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this presentation may For personal use only not be distributed to any person, and the New Shares may not be offered or sold, in any country outs
Slide 42: Contact us
For personal use only Contact us: Level 5, 167 Eagle Street, Brisbane QLD 4000, Australia T: +61 7 3071 9003 info@kglresources.com.au kglresources.com.au KGL Resources Limited Equity Raising 2022