Kefi Gold And Copper Plc · LSE:KEFI
Kefi Gold And Copper — Investor Presentation (January 2021)
40 slides from Kefi Gold And Copper's investor presentation, Jan 25, 2021
Slide 1: KEFI Gold and Copper plc Corporate Update
KEFI GOLD + COPPER KEFI Gold and Copper plc Corporate Update 25 January 2021 1
Slide 2: Disclaimer
KEFI GOLD + COPPER Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Gold and Copper plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agent
Slide 3: Status of Key KEFI Projects
KEFI GOLD + COPPER Status of Key KEFI Projects Tuku Kapi (Gold), development project in Ethiopia: • Consortium is executing action plans agreed in December 2020 for financial closing March 2021. • Major works planned Q2-21, commissioning Q4-22 and open pit production 160Koz in 2023. KEFI • Remain fo
Slide 4: Tulu Kapi Financing Status
KEFI GOLD + COPPER Tulu Kapi Financing Status • Finance Plan lifts KEFI’s beneficial interest in annual gold production from 63Koz pa (45% of 140Kozpa) to 124Koz pa (65% of 190Kozpa). Tulu Kapi NPV (at $1,700/oz} attributable to KEFI of $264M or £201M, representing 9 pence per share. • Consortium du
Slide 5: Corporate Overview
KEFI GOLD + COPPER Corporate Overview Summary Summary • KEFI was until recently grassroots explorer and is now an explorer, AIM code KEFI developer and hands-on operator of mining joint ventures with Share price - 12 mth 0.51p (low)/2.99p (high) influential and strong local partners in the Arabian-N
Slide 6: Pursues Significant Value Generation
KEFI GOLD + COPPER KEFI Pursues Significant Value Generation US$ • KEFI is trading at ~US$412/oz planned production 6,000 EV per oz of planned or actual production versus >US$3,000/oz for producers 5,000 4,000 Producers average ~US$2,800 • KEFI is trading at just US$42/oz on measured and 3,000 Explo
Slide 7: Social Licence Through Integration
Social Licence KEFI GOLD + COPPER Through Integration Social, intoOther Economic and Community Benefits GROWTH GOVERNMENT • Immediate Foreign Direct Investment • Company Tax • Exports of US$-generating product • Tenement Rental • Multiplier 7-10 on local operational spending • Royalties • PAYE Taxes
Slide 8: Some of the Companies Now Active in Arabian Nubian Shield
Some of the Companies Now Active KEFI GOLD + COPPER in Arabian Nubian Shield International Progress Association for Mining in Ethiopia. Chairman is KEFI. Contact is Harry Anagnostaras-Adams. 2
Slide 9: Ethiopian Projects
KEFI GOLD + COPPER Ethiopian Projects View a video summarising KEFI’s projects in Ethiopia here 9
Slide 10: Independent Validation
KEFI GOLD + COPPER Independent Validation Security Due Diligence Financial Model Environmental & Social Bankable Open Pit (JORC 2012) Definitive Feasibility Study • Ore Reserve 1.1Moz (15Mt at 2.1g/t) • 91-94% recovery Resources & • DFS Annual production 140,000 oz pa Reserves • AISC US$800-900/oz •
Slide 11: Ethiopia Population
KEFI Ethiopia Population Ethiopia GOLD + COPPER Demography Ethiopia has a population of around 110 million.. Ethiopia is a Constitutional Federation with 10 Regional National States and two special towns. Ethiopia comprises more than 81 Nations/Ethnicities. The photos here show the joyful responses
Slide 12: Industry & Government Efforts to Improve the Sector
Industry & Government Efforts KEFI GOLD + COPPER to Improve the Sector • Today < 1% of Ethiopia’s GDP is from the mining sector. Targeting 10% within 10 years • TKGM would , if operating today, be the largest single export generator in Ethiopia. • If the top 4 gold projects are producing in 5 years,
Slide 13: Tulu Kapi Site Visit to Prepare Project Implementation
Tulu Kapi Site Visit KEFI GOLD + COPPER to Prepare Project Implementation Left Foreground: Minister for Mines and Petroleum, West Wolega Zone Administrator, and TKGM Stakeholder Engagement Project Manager. Q1-21: Resettlement >> Procurement >> Q2-21: Earthworks >> Q3-21 Process Plant >> Q2-22 Mining
Slide 14: Tulu Kapi Gold Project in Oromia Region
Tulu Kapi Gold Project KEFI GOLD + COPPER in Oromia Region First modern mine in Ethiopia; construction ready since 2016. It has taken the period since for the local political and regulatory situation to settle down enough for international project financiers. This is a Public-Private-Partnership wit
Slide 15: Tulu Kapi Off-Site Infrastructure
KEFI GOLD + COPPER Tulu Kapi Off-Site Infrastructure • Three major roads to be constructed by Ethiopian Roads Authority o Keley to Tulu Kapi o Southern Bypass o North-Western Bypass o Extension of electricity supply by Ethiopian Electric Power Company o Gimbi substation to Site 132 kV o In-built ext
Slide 16: Tulu Kapi Site Layout
KEFI GOLD + COPPER Tulu Kapi Site Layout • Main Pit – 49.3 ha, depth 262 m • Northern Pit – 2.73 ha, depth 15 m • Waste Rock Dumps (WRD) - used in order of North, South then West. Capacity 31.7 Mt, 104 Mt, 8.2 Mt • Processing Plant 1.9 – 2.1 Mtpa 16 • Tailings Systems Facility (TSF) raised in 8 sequ
Slide 17: Tulu Kapi Process Plant
KEFI GOLD + COPPER Tulu Kapi Process Plant 3-D Image of Final Design 17
Slide 18: Tulu Kapi Mineral Resources and Ore Reserves
Tulu Kapi Mineral Resources and KEFI GOLD + COPPER Ore Reserves Resource Tonnes Gold Contained Gold Area Category (millions) (g/t) (million ounces) Indicated 17.7 2.49 1.42 Above Inferred 1.3 2.05 0.08 1,400 metres RL Sub-Total 19.0 2.46 1.50 Indicated 1.1 5.63 0.20 Below Inferred 0.1 6.25 0.02 1,40
Slide 19: Tulu Kapi Open Pit and Deeps
Tulu Kapi Open Pit KEFI GOLD + COPPER Tulu Kapi Deeps Resource grades are 2.46g/t Au for open pit and 5.69g/t Au for the underground The average grade of ore processed will be increased when the two sources are blended A DFS on mining the deeps is planned during construction Mineralisation below the
Slide 20: Tulu Kapi Open at Depth
KEFI GOLD + COPPER Tulu Kapi Open at Depth TKBH_293: 90m @ 2.8g/t Au TKBH_125 intersected mineralisation 140m down- plunge; interpreted to be east of main UG shoot Underground resource potential estimated 1M oz
Slide 21: Tulu Kapi District Exploration Potential
Tulu Kapi District KEFI GOLD + COPPER Exploration Potential • 1,120 km2 highly prospective exploration area reserved for KEFI Ethiopia (100% KEFI) • 24km of mineralised strike identified along two trends parallel to the Tulu Kapi Trend • Within trucking distance of Tulu Kapi plant • High-grade gold
Slide 22: Ownership and Funding Structure
KEFI GOLD + COPPER Ownership and Funding Structure Final Requirements and Allocations being finalised within Consortium KEFI Gold and Copper plc 34% 100% Max. 93% G&M Min.7% Ethiopian Private. KEFI Ethiopia Shares in subsidiary Saudi Arabia Min. $10M ~80% Tulu Kapi Gold ~20% Ethiopian Govt. KEFI Mar
Slide 23: Historical Analysis of Gold Price Ranges
KEFI GOLD + COPPER Historical Analysis of Gold Price Ranges % of Days Below Gold Price of $X / oz Within Last 10 Yrs 35.0% 32.1% 30.0% 25.0% 20.0% 18.2% 15.0% 10.3% 9.5% 10.0% 7.0% 8.3% 7.5% 5.0% 2.4% 2.3% 2.2% 0.0% 0.0% 0.0% 0.2% 0.0% Source: LBMA PM Fix sourced from Bloomberg ▪ In the last 10 year
Slide 24: International Banks' Gold Price Forecasts
KEFI GOLD + COPPER International Banks’ Gold Price Forecasts November 30, 2020 Gold (US$/oz) Date Firm 2020 2021 2022 2023 LT 25-Nov-20 CIBC $1,800 $2,300 $2,200 $2,100 $1,650 ▪ Analyst consensus forecasts as 20-Nov-20 17-Nov-20 BMO UBS $1,783 $1,813 $1,915 $2,100 $1,855 $2,000 $1,800 $1,625 $1,400
Slide 25: Industry Cost Curve and TKGM's Position
KEFI GOLD + COPPER Industry Cost Curve And TKGM’s Position Gold Price Forecasts TKGM sits around 2nd quartile Source: World Gold Council Website - GoldHub ▪ All in sustaining costs (“AISC”)* versus cumulative production for the gold industry is set out in the chart above from the World Gold Council.
Slide 26: Finalised Financing Structure
Finalised Financing Structure KEFI GOLD + COPPER Value Accretive to Shareholders • Tulu Kapi stake attributable to shareholders being increased significantly through financing • Including the acceleration of the underground development, production oz attributable to KEFI shareholders has essentially
Slide 27: Saudi Arabian Projects
KEFI GOLD + COPPER Saudi Arabian Projects View a video summarising KEFI’s projects in Saudi Arabia here 27
Slide 28: Why Saudi Arabia Now?
KEFI GOLD + COPPER Why Saudi Arabia Now? ArabNews 10 June 2020: New mining proclamation. The Saudi Cabinet on Tuesday approved a new mining investment law that aims to revolutionize the Kingdom’s mining and metals industry, and boost local and foreign investments in the sector. The new law will faci
Slide 29: Hawiah Drill Core Logging and SGS Core Shed
KEFI Hawiah Drill Core Logging and SGS Core Shed GOLD + COPPER 29
Slide 30: Hawiah is a World Class VMS Project
KEFI Hawiah is a World Class GOLD + COPPER VMS Project • Hawiah is held through the KEFI-ARTAR JV (G&M): KEFI is the operator and owns 34% • Located in the Wadi Bidah Mineral District, a 120 km VMS belt hosting >20 known deposits • Maiden resource of 19.3Mt @ 0.9% Cu, 0.8% Zn, 0.6g/t Au and 10.3g/t
Slide 31: Key Hawiah PEA Outcomes
KEFI GOLD + COPPER Key Hawiah PEA Outcomes Summary of PEA Economics (Base case, August 2020 metal prices) • High priority VMS project to be advanced via Ore Processing Rate 2.0Mtpa further drilling, met testwork and studies Life of Mine 7 years • Mining – underground long-hole open Average Operating
Slide 32: Hawiah - Further Drilling Likely to Increase Maiden Resource
Hawiah - Further Drilling Likely KEFI GOLD + COPPER to Increase Maiden Resource • Exploration focus has been under a 4.5km long gossan, drilled over 4.5km, to a depth of just 350m so far • Three mineralisation zones: oxide zone near surface with supergene gold enrichment, a transition zone with copp
Slide 33: Hawiah Key Drill Intercepts
KEFI GOLD + COPPER Hawiah Key Drill Intercepts • Good copper grades at depth at Camp Lode, and elevated gold near surface in Central area • Crossroads Extension contributed substantially to the maiden resource; adding resource at depth at Camp Lode expected to enhance the overall resource grade Hole
Slide 34: Hawiah Long Section
Hawiah Long Section KEFI GOLD + COPPER Looking East Long section showing extent of VMS mineralisation as currently identified and defined Current drilling program has intercepted massive sulphides below the Camp Lode, extending known VMS mineralisation by 470 metres 34
Slide 35: Hawiah Cross Sections Looking North
KEFI GOLD + COPPER Hawiah Cross Sections Looking North Showing Good Correlation between Holes Crossroads Lode Camp Lode 35
Slide 36: Jibal Qutman Maiden Mineral Resources
KEFI GOLD + COPPER Jibal Qutman Maiden Mineral Resources Mesothermal or orogenic quartz vein hosted gold deposit located in the Asir Terrane in the central southern region of the Arabia-Nubian Shield, ~110km east northeast of Bisha City Category Tonnes Gold Contained Gold (millions) (g/t) ('000 ounc
Slide 37: Hawiah ridgeline with drill rig in background
KEFI GOLD + COPPER Hawiah ridgeline with drill rig in background Email: [email protected] @kefiminerals KEFI Minerals plc Website: www.kefi-minerals.com 37
Slide 38: Thank You
KEFI GOLD + COPPER Thank You 38
Slide 39: KEFI's Board of Directors
KEFI GOLD + COPPER KEFI’s Board of Directors Harry Anagnostaras-Adams – Executive Chair – B. Comm, MBA, Fellow of Australian Institutes of Management & Company Directors Harry was founder or co-founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Counc
Slide 40: KEFI's Senior Management
KEFI’s Senior Management KEFI Executive Chairman and Finance Director GOLD + COPPER Plus…. David Munro - Operations Eddy Solbrandt – People & Systems Brian Hosking – Planning & Exploration Norman Green – Development David began his career as a mining engineer in Eddy began his career in the mining i
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