Kgl Resources Limited · ASX:KGL
Kgl Resources — Investor Presentation (October 2015)
30 slides from Kgl Resources's investor presentation, Oct 21, 2015
Slide 1: Jervois Pre-Feasibility Study
For personal use only JERVOIS PRE-FEASIBILITY STUDY October 2015
Slide 2: Contents
Contents For personal use only Corporate Overview P3 Mineral Resource P17 Introduction P5 Ore Reserve P19 Location Plan P6 Comparative Analysis P20 PFS Key Metrics P7 Site Layout P24 Capital Costs P8 Exploration P27 Operating Costs P9 3D Fly Through P28 Processing Plant Layout P10 Production Schedul
Slide 3: Corporate Overview
Corporate Overview For personal use only ASX CODE KGL BOARD OF DIRECTORS Issued shares 141.5 million Simon Milroy – Managing Director Options 2.8 million Chris Bain – Acting Chairman Share Price 14 cents Market Capitalisation $20 million Brad Ellis – Non-executive Director (20 Oct 15) Cash John Tayl
Slide 4: Corporate Overview
Corporate Overview For personal use only $0.50 15.0 $0.45 13.5 TOP 4 SHAREHOLDERS $0.40 12.0 $0.35 10.5 KMP Investments 27.03% Trading Volume (million) Volume Price $0.30 9.0 Share Price $0.25 7.5 HSBC Custody Nominees $0.20 6.0 (Australia) Limited 11.49% $0.15 4.5 $0.10 3.0 J P Morgan Nominees Aust
Slide 5: Introduction - Jervois Copper Project
Introduction - Jervois Copper Project For personal use only KGL Resources has completed a Pre Feasibility Study on the Jervois Copper Project A series of open pit and underground mines will feed a 2.2 Mtpa flotation concentrator to produce a copper concentrate. 5
Slide 6: Location
Location For personal use only Located on existing mining licenses. Copper concentrate to be transported by road to Alice Springs then by rail to Darwin for export. 6
Slide 7: PFS Key Metrics
PFS Key Metrics For personal use only LIFE OF MINE Copper Resource 26.7 Mt @ 1.12% Cu and 17 g/t Ag Lead/Zinc Resource 3.8 Mt @ 0.72% Cu, 3.7% Pb, 1.2% Zn, 68 g/t Ag Mine Life 8.25 years Average Annual Production 21,000t Cu + by-products LOM C1 – Cash Costs US$0.88/lb A$1.26/lb LOM C3 – Total Costs
Slide 8: Capital Costs
Capital Costs For personal use only CAPITAL COST A$ Treatment plant $89.6m Infrastructure $23.0m Mining $1.4m Construction $22.2m EPCM $19.8m Owner’s costs $10.2m Sub-total $166.2m Contingency (14.0%) $23.2m Project Total $189.5m 8
Slide 9: Operating Costs
Operating Costs For personal use only COSTS US$ * A$ Mining $0.60 $0.85 Processing $0.58 $0.82 General & Admin $0.11 $0.16 Marketing & Transport $0.68 $0.97 By-products credits ($1.09) ($1.55) C1 – Cash Costs $0.88 $1.26 Depreciation & Amortisation $1.00 $1.43 NT State Royalties 0.25 0.34 C3 – Total
Slide 10: Processing Plant – Copper Only
Processing Plant – Copper Only For personal use only 10
Slide 11: Processing Plant – incl. Lead Zinc
Processing Plant – incl. Lead Zinc For personal use only 11
Slide 12: Production Schedule
Production Schedule For personal use only 1.0 0.9 0.8 0.7 0.6 Ore Mined (Mt) 0.5 0.4 0.3 0.2 0.1 0.0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26 Q27 Q28 Q29 Q30 Q31 Q32 Q33 Reward OP Reward UG Bellbird OP Bellbird UG Green Parrot OP 12
Slide 13: Concentrate Production
Concentrate Production For personal use only 160 140 120 100 TONNES ('000) 80 60 40 20 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Copper Lead - Zinc 13
Slide 14: Project Cash Flow
Project Cash Flow For personal use only $600 $500 $400 $300 $200 A$ million $100 $- Yr -2 Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 $(100) $(200) Sales revenue Operating activities Capital investment Rehabiliation Cumulative Cashflow $(300) 14
Slide 15: Project Schedule
Project Schedule For personal use only ACTIVITY 2016 2017 2018 Commence DFS 1Q* Commence FEED 1Q Project Award – Start Detailed Design 2Q Award Long Lead Items 2Q Engineering & Procurement Completed 2Q Commence Site Earthworks 3Q Mechanical Completion 3Q First Production 4Q * Subject to financing 15
Slide 16: Sensitivity Analysis
Sensitivity Analysis For personal use only A$/US$ EXCH. RATE US$ COPPER PRICE 2020 ASSUMPTIONS UNIT 2018 2019 & $2.50 $3.00 $3.25 $3.50 $4.00 LOM A$/ US$ 0.70 0.70 0.70 IRR (%) Copper US$/lb 3.25 3.25 3.25 0.75 11% 23% 29% 35% 45% US$/t 7,165 7,165 7,165 0.70 17% 29% 35% 41% 52% Lead US$/t 2,225 2,2
Slide 17: Mineral Resource
Mineral Resource For personal use only 30.5 Mt @ 1.1% Cu for 327,000 t Cu 30.5 Mt @ 23 g/t Ag for 23 Moz Ag 450,000 30 400,000 Copper Metal (tonnes) 25 350,000 300,000 20 Million Ounces 250,000 15 200,000 150,000 10 100,000 5 50,000 0 0 May July Jan Nov Sep Jul May July Jan Nov Sep Jul 2011 2011 201
Slide 18: Mineral Resource
Mineral Resource For personal use only Cut-off Copper Resources Category Mt Cu % Ag g/t Pb % Zn % Copper kt Silver Moz Lead kt Zinc kt Cu% Indicated 1.4 1.45 35.6 - - 20.1 1.6 - - 0.5 Marshall Copper Inferred 0.3 0.90 20.2 - - 2.5 0.2 - - 0.5 Indicated 5.0 1.14 25.3 - - 57.1 4.1 - - 0.5 Reward Coppe
Slide 19: Ore Reserve
Ore Reserve For personal use only COPPER RESERVES CATEGORY MT Cu % Au g/t Ag g/t Pb % Zn % Bellbird Probable 3.4 1.20 0.12 7.4 0.02 0.05 Marshall-Reward Probable 5.0 1.07 0.26 25.0 0.22 0.21 TOTAL Probable 8.4 1.12 0.20 17.9 0.14 0.14 LEAD/ZINC RESERVES CATEGORY kT Cu % Au g/t Ag g/t Pb % Zn % Bellb
Slide 20: Australian Copper Mines and Projects
Australian Copper Mines and Projects For personal use only 2.0 Nifty Underground OP+UG Open Pit 1.8 Sulphur Springs 1.6 Mutooroo Tritton Eloise 1.4 Mount Oxide Jervois Osborne Mt Lyell Mt Gordon 1.2 Copper Grade (%) Prominent Hill Mt Gunson 1.0 Horseshoe Lights Maroochydore White Range 0.8 Einasleig
Slide 21: Low Capital Intensity
Low Capital Intensity For personal use only $30,000 Capital Intensity of Selected Projects $25,000 $20,000 Capital Intensity (US$/t) $15,000 JERVOIS $10,000 $5,000 $0 Producer In Construction Feasibility / Financing Source: Terra Studio, Wood Mackenzie 21
Slide 22: Long Term C1 Cost Curve
Long Term C1 Cost Curve For personal use only Jervois C1 Cost US88¢/lb US¢/lb Negative C1 costs here are due to high by product credits Source: Terra Studio, Wood Mackenzie. Highly probable and probable mines only 22
Slide 23: Global Grade Ranking
Global Grade Ranking For personal use only 3.0 Size and grade of undeveloped copper projects 2.5 2.0 First Quartile Second Quartile Third Quartile Fourth Quartile Copper Grade (%Cu) 1.5 JERVOIS 1.12% 1.0 Weighted Average: 0.53% Cu 0.5 0.0 0 100 200 300 400 500 600 700 Copper Contained in Resources (
Slide 24: Reward Prospect Looking South
Reward Prospect Looking South For personal use only REWARD MARSHALL COX’S FIND GREEN PARROT ROCKFACE BELLBIRD Outcropping Copper Mineralisation 24
Slide 25: Green Parrot & Marshall Reward
Green Parrot & Marshall Reward For personal use only 25
Slide 26: Bellbird & Bellbird North
Bellbird & Bellbird North For personal use only 26
Slide 27: Exploration
Exploration For personal use only • Soils and RAB results highlight new prospects • DHEM commenced at Rockface and Green Parrot • Extension of 3D IP – All holes targeting chargeability anomalies intersected copper mineralisation • Gravity Survey – high density targets due to: – Mineralisation (coppe
Slide 28: 3D Project Fly Through
3D Project Fly Through For personal use only Play Movie Movie is available at www.kglresources.com.au 28
Slide 29: For more information contact
For more information contact For personal use only SIMON MILROY • +61 7 3071 9003 • info@kglresources.com • www.kglresources.com Level 7, 167 Eagle Street Brisbane, QLD 4000 AUSTRALIA Forward-Looking Statements: This presentation includes certain “Forward-Looking Statements”. All statements, other t
Slide 30: Competent Person Statement
Competent Person Statement For personal use only The Jervois Resources information and Exploration Potential were first released to the market on 29 July 2015 and complies with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information