Contango Holdings Plc · LSE:CGO
Contango — Investor Presentation (May 2020)
15 slides from Contango's investor presentation, May 2020
Slide 1: Readmission of Contango Holdings Plc to the LSE and Acquisition of the Lubu Coalfield
READMISSION OF CONTANGO HOLDINGS PLC TO THE LSE AND ACQUISITION OF THE LUBU COALFIELD PRESENTATION | May 2020
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by Contango Holdings Plc (the “Company”) in connection with a proposed cash placing of ordinary shares on the Main Market (the “Placing”). This Presentation is being provided to a limited number of
Slide 3: Timetable
TIMETABLE READMISSION TO THE LSE 22 May 2020 Publication of the Prospectus 17 June 2020 General Meeting 18 June 2020 Commence trading on the LSE 17 December 2019 CONTANGO HOLDINGS PLC 2
Slide 4: Highlights
HIGHLIGHTS Raised £1.4m with new and existing investors to enable site preparation and box cut Contango will produce a for mining; first The Board is aligned with mix of semi-soft coking revenues to commence shareholders given its coals to be exported to within 12 months from material equity holding
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT Capital Structure Use Of Proceeds Shares in issue 46,283,317 Project development costs (including £485,000 site preparation and clearance) CGH Consideration Shares (5p) 128,849,961 Transaction cost £341,000 Placing Shares (£1.40m at 5p) 28,000,000 PLC administration costs £170,000
Slide 6: The Board
THE BOARD Roy Pitchford Oliver Stansfield Non-Executive Chairman Non-Executive Director Roy has had an illustrious career in the mining industry, and has previously held Oliver is the Chief Executive Officer of Brandon Hill Capital (“BHC”). He joined Fox- the roles of Chairman of Anglo-African Miner
Slide 7: In Country Management
Richard Rice Technical Manager Richard is a geology graduate of the University of the Witwatersrand and has over 39 years of professional experience leading multi-disciplinary teams in finding orebodies and establishing mines in developing countries around the world, particularly in Zimbabwe and Afr
Slide 8: The Lubu Coal Project
THE LUBU COAL PROJECT The Transaction Contango has acquired 70% of the Lubu coal project in Zimbabwe for an implied value of £6.4M, through the issue of shares in Contango at 5p. In addition Contango has acquired receivables of US$6.7M, previously held by the vendor, which is expected to enable grea
Slide 9: The Lubu Coal Project
THE LUBU COAL PROJECT Background In situ NI43-101 Resource of 702Mt (Indicated) and 510Mt The project covers 19,236 hectares of the highly prospective (Inferred) Karroo Mid Zambezi coal basin in established Hwange mining district in north-western Zimbabwe. Historically c.US$20M has been spent on the
Slide 10: The Lubu Coal Project
THE LUBU COAL PROJECT Production and Sales Strategy The deposit starts at surface and dips to a Production Strategy maximum depth of 47m • The company intends to start mining a small section of the north-eastern part of the deposit in Block 2. • The deposit starts at surface and dips to a maximum de
Slide 11: The Lubu Coal Project
THE LUBU COAL PROJECT Steps to Production – H2 2020 Open Pit Preparation and Production • Following readmission the Company will refurbish current facilities including campsite, water and fuel storage and maintenance workshop • Additional operational activity will include: • Ground clearance of over
Slide 12: The Lubu Coal Project
THE LUBU COAL PROJECT 2019 Work Program (Completed) 2019 Objectives • To confirm structure and continuity of coal package • Coking coal content and characteristics • Investigate caking properties • Determine which seams are best suited to produce high grade 28CV coal 2019 Results Near Surface • 2 fa
Slide 13: Summary
SUMMARY Following a raise of £1.4M, Contango will be funded through to first production, expected H2 2020 The Company is focused on securing initial sales via an offtake for its coking coal products. Production is expected to be exported to Southern African industrial groups and commodities traders
Slide 14: Thank You.
THANK YOU. Financial Adviser and Broker Jonathan Evans ([email protected]) 1 Tudor Street London EC4Y 0AH +44(0)20 3463 5000 CONTANGO HOLDINGS PLC 13
Slide 15: Appendix 1 - Lubu Coal Resources
APPENDIX 1 - LUBU COAL RESOURCES COAL RESOURCE - LUBU COALFIELD - AS AT 30 APRIL 2018 Thick Area Volume Density Drill Grid Confidence Geological Block Seam Ply GTIS(mt) TTIS (Mt) (m) (Mm²) (Mm²) (ton/m³) (m xm) level Loss (%) B1 ALL ALL 26.78 0.022 0579 1.675 0.968 147 INFERRED 20 0.774 B2 ALL ALL 3