Cadence Minerals Plc · LSE:KDNC
Cadence Minerals — Investor Presentation (June 2020)
19 slides from Cadence Minerals's investor presentation, June 2020
Slide 1: Investor Presentation June 2020
INVESTOR PRESENTATION June 2020
Slide 2: Disclaimer
DISCLAIMER The content of information contained in this presentation (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity m
Slide 3: Executive Summary Key Investments
CADENCE — EXECUTIVE SUMMARY KEY INVESTMENTS EUROPEAN METALS HOLDINGS - 16% + Planned Production of 25,267 tpa Lithium PUBLIC LISTED INVESTMENTS — XX % Hydroxide Production DIRECT PROJECT INVESTMENTS — XX % - USS 1.108 B NPV KEY (Holdings March 2020) : = AMAPA IRON ORE 20% for USS 2.5 million (in esc
Slide 4: Executive Summary Key Investments
CADENCE — EXECUTIVE SUMMARY KEY INVESTMENTS Total JORC Resource - 6.99Mt LCE (lithium carbonate equivalent) * Construction Capital Costs — US$ 483 million * Operating Costs (with credits) US$3,435/t LiOH.H20 * After Tax Economics US$1.108 billion (NPV8) + 51% JV Partner (CEZ) - £29 million feasibili
Slide 5: Amapá
AMAPÁ IRON ORE MINE • Mine discovered 1990’s, Amapá State, Brazil - first ore exported 2007 by 2013 the mine was producing 6 mtpa. • Beneficiation plant, rail line and private port facilities enable this fully integrated project to produce Fe 65% & 62%. • Total Historic Mineral Resources of 348Mt @
Slide 6: Amapá Location and Infrastructure
AMAPA IRON ORE MINE Location and Infrastructure | ay Atartic Oceon Mocapé Amapa Minesite - Openpit, 14 year mine life, beneficiation plant rated at 6Mt per annum. Pod Saniana ‘export terminal Private Port at Santana on re-commission capable of Handymax vessel 6 _ INVESTOR PRESENTATION January 2020 O
Slide 7: Amapá Overview
AMAPA IRON ORE MINE Overview 6 Simple open-pit mining and processing * 14 Year Life of Mine * Life of Mine strip ratio 0.9 * 348 Mt resources * Established processing route + At full capacity 5.3 mtpa planned production C2) Existing Mine, Processing & Infrastructure * Mine established, plant built *
Slide 8: Amapá Installed Beneficiation Plant
AMAPA IRON ORE MINE Installed Beneficiation Plant * Two principle products *° 62% Spiral Concentrate — 0.9Mt * 65% Pellet Feed — 4.4Mt pn > —_— > INVESTOR PRESENTATION JANUARY 2020 Ocavence
Slide 9: Amapá Mine and Resources
AMAPÁ IRON ORE MINE Mine and Resources • Commenced Operation in 2007, In 2012 mine produced, exported and sold 6.1 Mt of iron ore • Products are well known and regarded in China • Total Historic Mineral Resources of 348Mt @ 38.9% Fe • Mineral Rights and Licenses extend over 5,556 hectares • Minerali
Slide 10: Proposed Timeline – Mine Plan 2020
PROPOSED TIMELINE – (Mine Plan) - 2020 10 INVESTOR PRESENTATION JANUARY 2020
Slide 11: Proposed Timeline – Mine Plan 2035
PROPOSED TIMELINE – (Mine Plan) – (2035) 11 INVESTOR PRESENTATION JANUARY 2020
Slide 12: Amapá - Key Targets
AMAPA IRON ORE MINE - KEY TARGETS US$ 2.5 m Investment (Key Preconditions) Y Approval of the Judicial Recovery Plan — inclusive liability cap. VY Railway license for a minimum of 16 years. SA, court Grants Permission to Ship Iron Ore Stockpile * Commencement of Shipment of Iron Ore Stockpile * Settl
Slide 13: Amapá Short-Term Estimated Timeline
AMAPA IRON ORE MINE ( Short-Term Estimated Timeline) 2019 H1-2020 H2 -2019 Recovery C1) Prep of Judicial Review Plan\# C2] Submission of JR\Z May 2013 (4) Judicial Approval JR \/ August 2019 1st Preconditions for for investment met — investment 199.9% ownership met I | Qnd I -o@ Preconditions I I I
Slide 14: Recommissioning Timeline (Estimated)
RECOMMISSIONG TIMELINE (Estimated) Business Development 2019 2020 2021 2022 Ratification of JV recovery plan Recovery Satisfaction of pre-conditions Financing US$ 6 mm (2 tranches Cadence Equity 27% Operations Commissioning Study Iron ore shipment from stockpiles US$ 30 -40 m IndoSino Fe Stockpiles
Slide 15: Corporate Structure
CORPORATE STRUCTURE Capital Structure (01 June 2020) SHARES ON ISSUE 120,206,966 WARRANTS 1.5 million @ £0.10 22.8 million @ £0.12 OPTIONS 2.6 million @ £0.46 MARKET CAP £ 9.49 million Directors Non-Executive Chairman Andrew Suckling Chief Executive Officer Kiran Morzaria Finance Director Donald Str
Slide 16: Appendix - Acquisition Structure
APPENDIX - ACQUISTION STRUCTURE (1) Mine under “Judicial Review” — Cadence and IndoSino Trade Pte Ltd (“IndoSino”) have agreed to form a JV Company (JVCo) to acquire the Amapa Project. IndoSino holds a pledge over iron ore stock pile of the operating company (“Dev Co”). (2) Approved Plan held in Aug
Slide 17: Appendix - Amapá Tailings Dam
APPENDIX - AMAPÁ TAILINGS DAM In the wake of the Marinana and Brumandinho tailings dam disasters mining legislation is changing in Brazil to ban “Upstream” tailings design. Amapá has “Downstream” tailings design which is a safe form of tailings design. “Upstream” are more suitable to dry environment
Slide 18: Appendix - History of the Amapá Asset
APPENDIX - HISTORY OF THE AMAPÁ ASSET • Amapá was first developed by former Brazilian billionaire Eike Batista with the first ore shipped in December 2007; • Anglo American acquired Amapá in 2008 as part of a larger package of mining assets. It never intended to hold Amapá long term but invested $1.
Slide 19: www.voxmarkets.co.uk/company/KDNC —_http://www.cadenceminerals.com/
www.voxmarkets.co.uk/company/KDNC —_http://www.cadenceminerals.com/ Twitter.com/@CadenceMinerals (+44) 020 7440 0647 [email protected]