KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Shareholder Meeting (June 2017)
26 slides from KEFI Gold and Copper's shareholder meeting presentation, Jun 29, 2017
Slide 1: Annual General Meeting Presentation
Annual General Meeting Presentation Disclaimer 29 June 2017 Ethiopia Saudi Arabia Prospective Arabian-Nubian Shield Strong team, partners and contractors 2Moz Gold in Resources, 1Moz in Reserves, Large Growth Pipeline Initial Project is Development Ready for +100,000ozpa
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers g
Slide 3: Corporate Overview
Corporate Overview Focus and Targets Capital Structure1 Start development 2017 AIM code KEFI 3.93p (low) Share price - 12 mth Start Production in 2019 – 115koz pa for first 8 years 11.38p (high) • At US$1,250/oz. DFS-level estimated cash flow of $55Mpa before Share price 5.3p debt-service & tax
Slide 4: KEFI positioned in Arabian-Nubian Shield, acquired and overhauled Tulu Kapi
KEFI positioned itself in Arabian-Nubian Shield, then Disclaimer acquired and overhauled the Tulu Kapi Gold Project Entered Saudi Arabia 2008, pegged large portfolio, made a discovery & applied for Mining Licence Entered Ethiopia in 2014 via Tulu Kapi acquisition, then overhauled the project: •
Slide 5: Strong Platform: Shareholders, Partners, Contractors, Financiers
Strong Platform Shareholders, Partners, Contractors, Financiers Lanstead Odey Ausdrill & Lyco Board Public 26% 16% 5% 3% 50% KEFI Minerals plc 40% c. 75% Al Rashid 60% Saudi JV Ethiopia JV c. 25% Ethiopia Gov’t Jibal Qutman, Hawiah, other Tulu Kapi Gold Project Off-site Infrastructure Project Financ
Slide 6: Ethiopia's Ranking for Investment Attractiveness
Ethiopia’s Ranking for Investment Attractiveness Ethiopia ranked 51 of 109 countries in 2016 Fraser Institute Survey Morocco Burkina Faso Ghana Namibia Botswana Eritrea Ivory Coast Ethiopia Madagascar Democratic Republic of Congo (DRC) South Africa Zambia Tanzania Angola Mali Mozambique Niger Zimbab
Slide 7: Ethiopia - A country on the rise
Ethiopia - A country on the rise 15 years of 7-10% GDP growth, with a HQ for African Union, provides UN pro-development culture, peacekeepers for region Africa’s fastest growing economy (2015 - 10.2% Real GDP growth)1 Ranks ahead of Kenya, Mali, Ethiopia is Second most populous country in Mozambique
Slide 8: Undervalued compared to peer group of pre-development companies
Undervalued compared to peer group of pre-development companies EV/M&I Gold Company EV/NPV EV/Reserve EV/All Resource EV/Prod Resource Subgroup Averages (x) ($/oz) ($/oz) (S$/oz) ($/oz) In Construction 1.19 155 100 61 159 FS completed 0.72 113 80 51 125 PFS completed 0.62 58 56 42 67 PEA completed 0
Slide 9: KEFI Poised for Significant Growth
KEFI Poised for Significant Growth Disclaimer Milestones achieved in H1-2017 for Tulu Kapi Gold Project in Ethiopia • Published 2017 DFS Update for +115Koz p.a. Au open pit (1 Moz LOM). AISC < $800/oz • Signed Shareholders’ Agreement with Gov’t for financing and operating off-site infrastructure • D
Slide 10: Key Short Term Goals Ahead
Key Short Term Goals Ahead Q3-17 Financing offerings to be completed and reviewed by KEFI & Ethiopian Gov’t Tulu Kapi community resettlement surveys & data updates Financier detailed due diligence and regulatory review of legal documentation Build in any savings which emerge from detailed en
Slide 11: Tulu Kapi Open Pit: 2017 DFS Update confirms a financially robust project
Tulu Kapi Open Pit 2017 DFS Update confirms a financially robust project Resources and Reserves Open pit production and AISC Tonnes Grade Cont. Au AISC Production (Mt) (g/t Au) (Koz) 134 128 124 120 1,500 105 105 111 Probable Ore Reserves 15.4 2.12 1,050 93 1,000 $/oz Indicated Resources Koz • Open
Slide 12: Tulu Kapi underground mine potential
Tulu Kapi underground mine potential Potential to extend life and increase grade The underground provides strong upside Potential production profile (Koz Au p.a.)1 Thick, high-grade gold zones below open pit Underground Open cut 150 150 150 150 135 Preliminary studies based on current resource o
Slide 13: Ethiopia: Promising prospects near Tulu Kapi
Ethiopia Promising prospects near Tulu Kapi Guji: Visible gold in drill Core 0 1km 2km Komto: Primary gold mineralisation Source: KEFI Minerals 13
Slide 14: Saudi Arabia (KEFI 40%): Early mover advantage in eastern Arabian-Nubian Shield
Saudi Arabia (KEFI 40%) Saudi Arabia (KEFI 40%) Early mover advantage in eastern Arabian-Nubian Shield Executing to realise exploration upside Jibal Qutman Hawiah Pipeline of Targets Sufficient Resources to start Mining Potential for large Cu-Au-Zn VHMS Over 1,000km2 under application Licence proces
Slide 15: Greatest value created from discovery and triggering development
Greatest value created from Disclaimer discovery and triggering development Location of KEFI’s exploration portfolio in the ANS Ethiopia • Development-ready at +2g/t Au open-pit reserve of 1Moz • Underground potential below open pit +1Moz target at +5g/t Au • Target production from initial 115Koz p.
Slide 16: Contacts
Contacts Harry Anagnostaras-Adams, Executive Chairman John Leach, Finance Director Cyprus - Group corporate team Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Email: info@kefi-minerals.com Website: www.kefi-minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli
Slide 17: Appendices
KEFI MINERALS APPENDICES
Slide 18: Directors of KEFI Minerals plc
Directors of KEFI Minerals plc Harry Anagnostaras-Adams – Executive Chairman – MBA (Australian Graduate School of Business) Harry was founder or co-founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Council, EMED Mining, KEFI Minerals and Cyprus-base
Slide 19: Tulu Kapi Development team
Tulu Kapi Development team Wayne Nicoletto, Managing Director, KEFI Ethiopia & KEFI Chief Operating Officer – BSc Metallurgy, Grad Dip Mining (WASM) Wayne has 30 years' experience in the mining industry as a Metallurgist and a General Manager, specialising in start-up and operation of gold mines in
Slide 20: Tulu Kapi: Highlights of 2017 DFS Update
Tulu Kapi Disclaimer Highlights of 2017 DFS Update • 2017 DFS Update incorporates due diligence and many 2017 DFS Update 2015 DFS refinements since 2015 DFS Average head grade 2.1g/t gold 2.1g/t gold • Similar financial outcomes to 2015 DFS with greater confidence Total gold production 980,000 oz 96
Slide 21: Focus on minimising ore dilution in open pit
Tulu Kapi Disclaimer Focus on minimising ore dilution in open pit • Mining dilution is a key performance parameter to achieve planned ore grade from Tulu Kapi open pit • Inadequate work on dilution by previous owner Nyota • Estimating and planning for dilution has been an important focus since KEFI
Slide 22: Selective mining in open pit
Tulu Kapi Disclaimer Selective mining in open pit • Bulk mine 95% of material and selectively mine: Planned mining cycle • 5% of total tonnes mined • 21% of ore tonnes mined • Mining to progress across the bench from hangingwall to footwall • 70% of ore tonnes in lodes >2.5m thick (vertical) • Bulk
Slide 23: Why only 5% of tonnes selectively mined?
Tulu Kapi Disclaimer Why only 5% of tonnes selectively mined? • The cross section below is through the deepest part of the pit • The two sets of yellow lines are 7.5m apart. These represent benches which intersect 8-10 lodes to mine as a package • An average of 10 lodes to be mined per bench, thickn
Slide 24: Greatest value created from discovery and triggering development
Greatest value created from Disclaimer discovery and triggering development Value Value build M&A 100% 13 Reach steady state 75% 11 Commissioning 12 Begin commercial production Fund “sweet spot” 10 Project construction 9 Raise funding 14 Declining production 50% 7 Reserve definition 8 Feasibility st
Slide 25: Hawiah: Large undrilled VHMS gossan
Hawiah Large undrilled VHMS gossan KEFI has Hawiah 7 ELAs in the Wadi Bidah Belt which cover cumulative +8km of Cu-Au gossans BRGM drilling in 1980’s on similar gossans in the area total 1.2Mt at 6.4g/t Au for 254Koz Au Strong 2km long, 300m from surface SP anomaly (in blue >125mV) • Gossan 6km long
Slide 26: Lanstead Placing and Sharing Agreement
Lanstead Placing and Sharing Agreement £4.62 million Lanstead placing done at same price as the February 2017 placing with other investors In March 2017, KEFI received £0.69 million of the proceeds and Lanstead was issued 82.4 million shares Balance of £3.93 million invested in the Lanstead Sh