Nzuri Copper — Investor Presentation (April 2018)
34 slides from Nzuri Copper's investor presentation, April 2018
Slide 1: Ready to go, Ready to grow: the Kalongwe Copper-Cobalt Project
Ready to go, Ready to grow: the Kalongwe Copper-Cobalt Project • Updated Stage 1 DFS delivers exceptional financial returns • Detailed engineering & design underway • Highly attractive SXEW expansion pathway identified to unlock full project value Investor Presentation, April 2018 Mark Arnesen, CEO
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-lo
Slide 3: Cautionary Statement: Preliminary Economic Analysis
Cautionary Statement: Preliminary Economic Analysis ● Cautionary Statement: The information in the presentation that relates to the Preliminary Economic Analysis for Stage 2 of the Kalongwe Project is extracted from the Company’s ASX announcement entitled ‘Updated stage 1 feasibility study delivers
Slide 4: Nzuri Copper – A High-Grade Copper and Cobalt Company
Nzuri Copper – A High-Grade Copper and Cobalt Company ● Near-term production pathway at Kalongwe oxide copper-cobalt project Significant leverage and upside to rising copper and cobalt prices ● Low-cost DMS Stage 1 project – fully permitted and ready to execute ● US $186M pre-tax NPV10% and 99% IRR
Slide 5: Corporate Overview
Corporate Overview Capital Structure (A$) Highly experienced board and senior management with extensive African Market Cap ~$95M @ 35c/share mining experience Cash $6M (at 31st March 2018) • Tom Borman, Non-Executive Chairman Issued Shares 270.2M (280.8M fully-diluted) Global mining executive with w
Slide 6: Share Price Performance – Past 12 Months
Share Price Performance – Past 12 Months Highly leveraged to strongly performing copper and cobalt prices New DRC Mining Code Proposal US$10M Investment – Huayou Cobalt 6
Slide 7: Company History
Company History Listed as Regal Resources (ASX: RER) 23 June 2005 2005 - 2014 Apr 2015 Jul 2016 Oct 2016 Jan 2017 Dec 2017 Apr 2018 Primary focus on MOA signed to Capital raising to Exploration Company name Nzuri secures Updated Kalongwe gold project earn up to 90% fund debt, FTBJV recommences at ch
Slide 8: A Tier-1 Address – the World's Premier Copper-Cobalt Belt
A Tier-1 Address – the World’s Premier Copper-Cobalt Belt ● World’s largest and most prolific sediment-hosted copper Central African Copper Belt province (estimated endowment >160Mt Cu) ● Produced ~63% of the world’s cobalt and ~10% of its copper in 2016 ● Generally high-grade copper deposits 2.5-5.
Slide 9: Kalongwe Copper-Cobalt Project – Our Foundation Asset
Kalongwe Copper-Cobalt Project – Our Foundation Asset ● 85%-owned by Nzuri with 10% held by local Congolese Central African Copper Belt partner GICC and 5% by the DRC Government ● Excellent relationships with Government and local communities ● Fully permitted with 12-month timeline to production ● U
Slide 10: Kalongwe Stage 1 DMS – Improved Financial Returns
Kalongwe Stage 1 DMS – Improved Financial Returns ● April 2018 Feasibility Study update has Metric 2018 Updated FS 2017 Initial FS results confirmed Kalongwe’s extremely strong financial and technical merits NPV10% US$ US$186M / US$130M US$116M / US$82M (pre/post-tax)* ● Ore Reserve now 7.98 Mt at 2
Slide 11: Kalongwe Stage 2 – Preliminary Economic Analysis
Kalongwe Stage 2 – Preliminary Economic Analysis Preliminary Economic Analysis completed for a range of leaching/SX-EW processing options for Kalongwe Stage 2 Throughput (ktpa) Mine Payable Metal (t) Total Life External Funding NPV10% Option Description CAPEX IRR (years) (Above DMS $M) ($M) Stage 1
Slide 12: Kalongwe Stage 1 – Investment Check-List
Kalongwe Stage 1 – Investment Check-List Factor Nzuri’s ASX-listed Cobalt Peers Kalongwe Project Permitting in place Yes No – majority of peer companies not past Scoping Study level +15% Accuracy Feasibility Study Completed Yes No – no ASX-listed peer company with a completed +15% FS Reserve (JORC C
Slide 13: Kalongwe – Responsible and Ethical Mineral Production
Kalongwe – Responsible and Ethical Mineral Production ● Opportunity for Nzuri to contribute to the development of a more transparent and accountable cobalt mining industry in the DRC ● Nzuri has a comprehensive corporate governance framework to deliver responsible and ethical copper-cobalt productio
Slide 14: Kalongwe – A Staged Pathway to Production and Growth
Kalongwe – A Staged Pathway to Production and Growth Stage 1 All permitting in place • Simple, robust, proven 12-month build DMS process Rapid pathway to production and cash-flow Stage 2 ● Processing of cobalt-only ore and mineralised rejects: ~US$1B+ of contained cobalt metal value produced b
Slide 15: Our Future: Exploration Upside in the Fold Thrust Belt Joint Venture
Our Future: Exploration Upside in the Fold Thrust Belt Joint Venture ● High-impact exploration programs underway 15
Slide 16: Multi-Pronged Exploration Campaign in a World-Class Copper Belt
Multi-Pronged Exploration Campaign in a World-Class Copper Belt ● Significant progress achieved in 2017 with: ● 82km of access roads established to provide logistical access to key targets ● 6,600m of RC and diamond exploration drilling completed +7,600m of trenching ● $4M budget for copper-cobalt e
Slide 17: 2018 Exploration Targets – Priorities and Opportunities
2018 Exploration Targets – Priorities and Opportunities Priority Target / Objective Kalongwe SW 1 Positive trenching results in Mines Series stratigraphy to be followed up. Sterilising for camp and Kalongwe infrastructure. Monwezi 2 2 Opportunity to add new resources as a satellite deposit near Kalo
Slide 18: Kalongwe South West
Kalongwe South West ● Mines Series Fragment, same host rock as Kalongwe ● Located 600m SW of Kalongwe ● Copper and cobalt enrichment at surface: KAL_17_TR001 results include 10m @ 1.28% Co and 6m @ 0.72% (weighted average for entire intercept of 19m @ 0.9% Co includes 3m dilution from below 1000 p
Slide 19: Monwezi 2 – Opportunity for Satellite Resources
Monwezi 2 – Opportunity for Satellite Resources ● Located 2-5km from Kalongwe – opportunity for satellite resources ● Mine Series Fragment hosting Kalongwe-style mineralisation identified over 300m strike ● Recent drilling has returned significant intercepts including: ● 19.6m @ 1.2% Cu, including 8
Slide 20: Monwezi 2 – Cross-Section Showing Recent Intercepts
Monwezi 2 – Cross-Section Showing Recent Intercepts DKALDD_123 - 51 m, malachite and wad DKALDD_123 - 144.8m, Chalcocite and malachite DKALDD_123 - 144.8 m, Chalcocite and malachite 20
Slide 21: Monwezi 7 – Exploration Programme
Monwezi 7 – Exploration Programme SEVERAL UNMAPPED AND ● Located 5km from Kalongwe – TWO NEW TRENCHES UNTESTED FRAGMENTS opportunity for satellite resources Up to 3.7% Co in DMZO_17_TR001 Diamond Drill ● Small Mine Series Fragment hosting Testing Planned COBALT INTERCEPTS DMON7_RC02 19m @ 0.48% Co f
Slide 22: Kasangasi – Opportunity for a World-Class Discovery
Kasangasi – Opportunity for a World-Class Discovery ● Priority target because of proximity to Kamoa-Kakula copper deposit ● Recent drilling has confirmed a similar stratigraphic position and mineralisation textures to Kamoa ● Revised exploration model developed for target area post-2017 drilling ● T
Slide 23: Kambundji East – Best Copper Hits Outside of Kalongwe
Kambundji East – Best Copper Hits Outside of Kalongwe ● Drilled by Nzuri in November 2016 returned high-grade intercepts of 9m @ 1.84 % Cu including 2.5m @ 3.25% Cu ● Potential for high-grade Cu Known High Grade mineralisation in typical Copper Mineralisation Congolese Mines Series écaile 2018 Work
Slide 24: Mamba – Large-Scale Target with Minimal Historical Drilling
Mamba – Large-Scale Target with Minimal Historical Drilling ● Typical Congolese copperbelt Cu-Co mineralized, écaille bearing target ● The diapir hosts km-scale megafragments of MAMBA Target Targeting shallow Roan sediments within RAT, analogous to projection of mineralisation Mukondo and Kakanda de
Slide 25: Other Targets – Mutwa and Mulonda Funda
Other Targets – Mutwa and Mulonda Funda ● Prominent lead and zinc anomalies defined by soil MUTWA and pit geochemistry MULONDA FUNDA ● Coincident with geological structures identified in Magnetic imagery ● Targeting high-grade Pb-Zn-Cu mineralisation characteristic of Kipushi type mineralisation ● L
Slide 26: The Fold Thrust JV – Exploration Program
The Fold Thrust JV – Exploration Program Target Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Kalongwe SW Monwezi 2 Monwezi 7 Kasangasi Mamba RC Drill Access and Preparation Kambundji East Kambundji Regional Mulonda Funda Mutwa 26
Slide 27: Right metals ….. Right place .…. Right time
Key Investment Takeaways – ASX-listed copper-cobalt developer/explorer with a strong growth outlook Right metals ….. Right place .…. Right time STRONG DISCOVERY NEAR-TERM PRODUCTION POTENTIAL IN A TIER-1 BELT STRONG SHARE REGISTER, OPPORTUNITY WELL-FUNDED Certain key targets located in Kalongwe
Slide 28: Contacts & Appendices
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 (0)8 9388 1474 E: info@nzuricopper.com.au E
Slide 29: Appendix – Nzuri Corporate Organisation
Appendix – Nzuri Corporate Organisation NZURI COPPER LIMITED (AUS) 100% REGAL EXPLORATION OTHERS SASU (DRC) KALONGWE RESOURCES PTY LTD (AUS) FTBJV (earn in) 85% KALONGWE MINING SA (DRC) Kalongwe Project 29
Slide 30: Appendix – Kalongwe Mineral Resource Estimate
Appendix – Kalongwe Mineral Resource Estimate Total Weathering Ave. Cu Ave. Co Tonnes Tonnes Domain Measured Indicated Inferred Tonnage profile (%) (%) Cu Co (Mt) Cu Only1 1.24Mt @ 3.35% Cu 2.45Mt @ 2.27% Cu 1.24Mt @ 1.60% Cu 4.94 2.37 - 117,200 - Oxide Mixed3 2.07Mt @ 3.76% Cu 1.67Mt @ 2.72% Cu 0.3
Slide 31: Appendix – Kalongwe Mineral Reserve Estimate
Appendix – Kalongwe Mineral Reserve Estimate The Updated Ore Reserve for Kalongwe is set out below : Ore Reserve Total Category Mt Cu % Co % Proved 3.58 3.42% 0.43% Probable 4.41 2.56% 0.27% Proved and Probable 7.99M 2.94% 0.34% Waste (Mt) 16.645 Total (Mt) 24.631 31
Slide 32: New Strategic 14.8% Investor – Huayou Cobalt
New Strategic 14.8% Investor – Huayou Cobalt ● Market capitalisation of US$8 billion ● Independent integrated industrial business incorporating copper/cobalt mining, processing and refining – essential to the downstream production of Li-ion batteries ● Extensive experience operating in the DRC for o
Slide 33: Appendix – Simple and Robust Processing Flowsheet
Appendix – Simple and Robust Processing Flowsheet ● Good gravity recovery from DMS/ Spiral Circuit 1Mtpa ● Ability to produce saleable 10%, 15% & 20% DMS Cu concentrates and 4-8% Spiral Cu Concentrate Primary Crush to 80mm ● Average Overall Cu recovery of 64% for FS base case ● Contained Co grades i
Slide 34: Appendix – Simple Project Execution
Appendix – Simple Project Execution Modular Plant Approach ● Two Principal Suppliers ● Due to packaged modular plant equipment Crushing selection, two suppliers will be responsible for entire crushing and processing plant ● Short Lead-time Intermediate Stockpile PowerStation Solar Arrays/s ● Quoted