KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Investor Presentation (September 2016)
24 slides from KEFI Gold and Copper's investor presentation, September 2016
Slide 1: KEFI Minerals
KEFI MINERALS Developing a 100,000+ oz pa gold operation within the Arabian-Nubian Shield September 2016
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 Summary Summary1 KEFI Minerals is an exploration and development AIM code KEFI company focussed on gold and copper assets, within Share price - 12 mth 0.28p (low)/0.73p (high) the highly prospective Arabian-Nubian Shield Share price (25/08/2016) 0.515p Progressing development
Slide 4: Compelling investment proposition
Compelling investment proposition Exciting revitalised gold development story: Since assuming control of the Tulu Kapi project in Ethiopia (2014), the team has overhauled the geological database and its interpretation, optimised the mine plan, consequently improving economics Overhauled DFS and
Slide 5: Tulu Kapi Overview
Tulu Kapi Overview Location and infrastructure Resources and reserves Tulu Kapi is in the world Tonnes Grade Cont. Au (Mt) (g/t Au) (Koz) renowned Arabian-Nubian Shield within Ethiopia Probable Ore Reserves 15.4 2.12 1,050 ~360km west of the capital Indicated Resources 18.8 2.67 1,620 city of Ad
Slide 6: Tulu Kapi: Improved through pragmatic re-evaluation
Tulu Kapi Improved through pragmatic re-evaluation DFS 2012 DFS 2015 Rev DFS Projected capex and working capex1 $289M $130M $110M Life of Mine gold production 924Koz 961Koz 980Koz Annual gold production (steady state) 105Koz 95Koz 115Koz Strip ratio 8.5 7.4 7.5 Average gold grade 1.8g/t 2.1g/t 2.1g/
Slide 7: Tulu Kapi: A financially robust project
Tulu Kapi A financially robust project The operation is strong financially Production and AISC At the 6 year gold price low of $1,050/oz, project AISC Production still generates an IRR of 22.8% 134 128 124 120 1,500 105 105 111 LOM AISC1 of $751/oz and total unit cost of 93 $869/oz, including in
Slide 8: Tulu Kapi: A low cost project
Tulu Kapi A low cost project Initial capex / LOM production ($/oz) Cost competitive in terms of 104 both capital intensity and All-In 108 110 Sustaining Costs, when 151 169 compared to African peers 196 217 0 50 100 150 200 250 $/oz African AISC / resource curve ex South Africa ($/oz) 1,800 1,600 PP
Slide 9: Tulu Kapi Start-up schedule
Tulu Kapi Start-up schedule 2016 2017 2018 Activity Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Construction Period Secure/Draw Finance Resettle Community Initial Works Order Long Lead Items Major Construction Mining Commissioning Steady State Producti
Slide 10: Tulu Kapi Funding plan
Tulu Kapi Funding plan Cost Overrun Overall financing Mezzanine or facility between between 130m and Equity between 10m and 15m 140m 15m and 45m 140 Credit between 13 120 65m and 85m 28 100 80 135 60 Government 75 investment to 40 increase ownership up to 30% 20 20 0 Project Level Equity Senior Secu
Slide 11: Capital structure (fully-diluted)
Capital structure (fully-diluted) Odey AM Ausdrill/Lyco Board Public 25% 14% 5% 56% Al Rashid KEFI Minerals plc Ethiopia Govt. 60% 40% 70-80% 20-30% KSA JV Ethiopia JV 11
Slide 12: Proven management team with the experience to deliver
Proven managment team with the experience to deliver Harry Anagnostaras-Adams John Leach Kebede Belete Wayne Nicoletto Geoff Davidson Executive Chairman Finance Director Manager Ethiopia Chief Operating Officer Engineering & Contracting Harry was founder or co- John has over 25 years’ Dr. Kebede Bel
Slide 13: Valuation: Undervalued compared to African peers
Valuation Undervalued compared to African peers EV / Reserves Average excl. min and max. = $183/oz Average excl. min and max. = $162/oz 610 445 642 315 258 237 113 323 289 269 232 186 184 182 182 167 133 123 117 64 46 46 181 36 26 70 30 19 EV / Measured & Indicated Resources 436 Average excl. min an
Slide 14: Valuation: Production to drive substantial re-rating
Valuation Production to drive substantial re-rating 20x P / 2017E FCF P / 2018E FCF 12.7x 2017E Peer Average Price / Estimated 15x 2018E Peer Average FCF 12.4x African Gold 10x Producer Peer Group 5x nmf nmf nmf nmf - Endeavour Perseus Roxgold Teranga Acacia Randgold Asanko KEFI Location Mali, Ghana
Slide 15: Ethiopia: A country on the rise
Ethiopia A country on the rise 15 years of 7-10% GDP growth, HQ for African Union, with a pro-development culture, deemed to be safer than all Africa’s fastest growing economy neighbours (2015 - 10.2% Real GDP growth)1 Strong interest in Ethiopia is Second most populous investment from open for coun
Slide 16: Ethiopia: Fostering mining investment
Ethiopia Fostering mining investment Strong investment community for mining 8th best jurisdiction in Africa for mining investment by the Fraser Institute in 2015, ahead of Zambia and South Africa Highly prospecive - limited modern exploration: Only existing commercial mine is Lege Dembi (~130K
Slide 17: 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 18: Appendices
KEFI MINERALS APPENDICES
Slide 19: Tulu Kapi Underground: Potential to extend life and increase grade
Tulu Kapi Underground Potential to extend life and increase grade The underground provides strong upside Potential production profile (Koz Au)1 Thick, high-grade gold zones below open pit Underground Open cut 150 150 150 150 135 Underground mineable resource = 1.3Mt @ 5.2g/t 105 124 120 30 16 22
Slide 20: 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 20
Slide 21: Saudi Arabia (KEFI 40%): Executing to realise exploration upside
Saudi Arabia (KEFI 40%) Executing to realise exploration upside Jibal Qutman Hawiah Short term milestones 99km2 EL was granted in July 95km2 Hawiah EL granted in Sep to Dec 2016 2012 Dec 2015 Jibal Qutman – submit Mining Rapidly delineated initial JORC Potential for large Cu-Au-Zn Licence
Slide 22: Optimised mine plan: Rapid delivery of cash flow
Optimised mine plan Rapid delivery of cash flow maximising value Mine design and scheduling at Stage 1 Tulu Kapi has been developed Stage 3 over three stages in order to maximise cash flows over the initial three years (Stage 1) This will facilitate rapid repayment of debt, allowing the company
Slide 23: 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 24: Tulu Kapi Development team
Tulu Kapi Development team Wayne Nicoletto, Chief Operating Officer and Managing Director, KEFI Ethiopia – 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 Afr
KEFI Minerals — Investor Presentation (September 2016) on 6ix