KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — Corporate Update (April 2021)
43 slides from KEFI Gold and Copper's corporate update, Apr 27, 2021
Slide 1: KEFI Gold and Copper plc Corporate Update
KEFI GOLD + COPPER KEFI Gold and Copper plc Corporate Update 27 April 2020 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: 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 influential Share price - 12 mth 0.51p (low)/2.99p (high) and strong local partners in the Arabian-N
Slide 4: Steps for Triggering Full Development of Tulu Kapi Gold Mines
Steps for Triggering Full Development KEFI GOLD + COPPER of Tulu Kapi Gold Mines S.C (TKGM) following 2021 AGM The key steps to progress the development of the Tulu Kapi gold mine during the first half of 2021 include the following, as set out in recent Quarterly Operational Updates: • Finance: o ap
Slide 5: Achievements & Opportunities Over the Past Year
KEFI GOLD + COPPER Achievements & Opportunities Over the Past Year Positive achievements and opportunities which have emerged since 2020 AGM: • Metal prices are up. Spot (22 April) is $1,784/oz Au, $4.2/lb Cu, $1.28/lb Zn, $26/oz Ag. Cu up 50% since June 20; • Well-capitalised local investors have e
Slide 6: Corporate Development Plan
KEFI GOLD + COPPER Corporate Development Plan • May 2021: Anticipated approvals by syndicate of the c. $300M project financing of TKGM: » Mining contractor c. $70M finalise contract (submission received); » Senior Lenders c. $140M formally approve loan details (terms sheet already signed); » Equity-
Slide 7: The Value of KEFI Main Projects
KEFI GOLD + COPPER The Value of KEFI Main Projects Assumed Long-Term Metal Price exchange rate US$1.38:GB£1.00 $1,400/oz Au, $3/lb Cu, $1/lb Zn, $15/oz Ag $1,700/oz Au, $3.50/lb Cu, $1.20/lb Zn, $22/oz Ag $2,000/oz Au, $4.50/lb Cu, $1.40/lb Zn, $28/oz Ag NPV’s for 100% of Tulu Kapi USD Millions 184
Slide 8: Corporate Introduction
KEFI GOLD + COPPER Corporate Introduction 8
Slide 9: KEFI operates joint ventures with strong local partners
KEFI operates joint ventures with strong local partners KEFI GOLD + COPPER Arabian Nubian Shield Ethiopia and Saudi Arabia • KEFI was until recently grassroots explorer and is now an explorer, developer and hands-on operator of mining joint ventures with influential KEFI • In GOLD and strong local p
Slide 10: Status of Tulu Kapi Gold Project
KEFI GOLD + COPPER Status of Tulu Kapi Gold Project Ethiopia • Highest growth country in Africa • KEFI project company has Federal and Regional Governments as partners • Fully planned and permitted. Finance syndicate formed. Project contractors selected KEFI • Positive independent experts' reports f
Slide 11: Status of Hawiah Copper & Gold Project
KEFI GOLD + COPPER Status of Hawiah Copper & Gold Project Saudi Arabia • Saudi Government now pushing minerals as its next priority sector • KEFI’s project company has a leading local industrial conglomerate, ARTAR, as partner • August 2020: completed Maiden Resource Estimate (MRE) after 7 months dr
Slide 12: KEFI's Board of Directors
KEFI GOLD + COPPER KEFI’s Board of Directors Harry Anagnostaras-Adams – Executive Chair – B. Comm, MBA, Fellow of Australian Institutes of Management & Company Directors Harry was founder or co-founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Counc
Slide 13: KEFI's Senior Management
KEFI’s Senior Management KEFI GOLD + COPPER Executive Chairman and Finance Director Plus…. David Munro - Operations Eddy Solbrandt – People & Systems Brian Hosking – Planning & Exploration Norman Green – Development David began his career as a mining engineer in Eddy began his career in the mining i
Slide 14: Pursues Significant Value Generation
KEFI GOLD + COPPER KEFI Pursues Significant Value Generation US$ EV per oz of planned or actual production • KEFI is trading at ~US$412/oz planned 6,000 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 3,000 Explorers
Slide 15: Ethiopian Projects
KEFI GOLD + COPPER Ethiopian Projects View a video summarising KEFI’s projects in Ethiopia here 15
Slide 16: Ethiopia
KEFI GOLD + COPPER Ethiopia In Top 10 growth countries globally for past 15 years • 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
Slide 17: Industry & Government Efforts to Improve the Sector
KEFI GOLD + COPPER Industry & Government Efforts 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, t
Slide 18: Some of the Companies Now Active in Arabian Nubian Shield
KEFI GOLD + COPPER Some of the Companies Now Active in Arabian Nubian Shield International Progress Association for Mining in Ethiopia. Chairman is KEFI. Contact is Harry Anagnostaras-Adams.
Slide 19: Tulu Kapi Site Visit December 2020
KEFI GOLD + COPPER Tulu Kapi Site Visit December 2020 to Prepare Project Implementation Left Foreground: Minister for Mines and Petroleum, West Wolega Zone Administrator, and TKGM Stakeholder Engagement Project Manager Right: Minister for Mines and Petroleum, Oromia Head of Mining, Guji Woreda Admin
Slide 20: Social Licence
Social Licence KEFI GOLD + COPPER Integration intoand Social, Economic Community Other Benefits GOVERNMENT GROWTH • Company Tax • Foreign Direct Investment > $300M • Tenement Rental • Largest Ethiopian Exporter of $-product • Royalties • Multiplier 7-10 on operational spending c. $100Mpa • PAYE Taxe
Slide 21: COVID and Security in Ethiopia
KEFI GOLD + COPPER COVID and Security in Ethiopia POP'N CASES/ DEATHS/ • Table summarises COVID statistics in Ethiopia and CASES DEATHS MILL 1 MILL 1 MILL KEFI’s other countries of activity ETHIOPIA 114,266 1,766 116 983 15 • COVID impact lower in Ethiopia than in most SAUDI ARABIA 359,115 5,989 35
Slide 22: Independent Validation of Ethiopia's 1st mover Project - Tulu Kapi
KEFI GOLD + COPPER Independent Validation of Ethiopia’s 1st mover Project - Tulu Kapi 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 1
Slide 23: Tulu Kapi Gold Project in Oromia Region
KEFI GOLD + COPPER Tulu Kapi Gold Project 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
Slide 24: Tulu Kapi Off-Site Infrastructure
Tulu Kapi KEFI GOLD + COPPER 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 25: Tulu Kapi Site Layout
Tulu Kapi KEFI GOLD + COPPER 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 • Tailings Systems Facility (TSF) raised in 8 sequenc
Slide 26: Tulu Kapi Mineral Resources and Ore Reserves
KEFI GOLD + COPPER Tulu Kapi Mineral Resources and 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 27: Tulu Kapi Process Plant
Tulu Kapi Process Plant KEFI GOLD + COPPER 3-D Image of Final Design Target commissioning Q4-2022 and full production 2023 2727
Slide 28: 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 • Target to lift t
Slide 29: Tulu Kapi Open at Depth
KEFI GOLD + COPPER Tulu Kapi Open at Depth • Resource grades are 2.46g/t Au for TKBH_293: open pit and 5.69g/t Au90m @ 2.8g/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 • Ta
Slide 30: 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 31: Industry Cost Curve and TKGM's Position
KEFI GOLD + COPPER Industry Cost Curve and TKGM’s Position Source: World Gold Council Website - GoldHub TKGM sits around 2nd quartile ▪ All in sustaining costs (“AISC”)* versus cumulative production for the gold industry is set out in the chart above from the World Gold Council. The global median in
Slide 32: Saudi Arabian Projects
KEFI GOLD + COPPER Saudi Arabian Projects View a video summarising KEFI’s projects in Saudi Arabia here 32
Slide 33: 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 34: Hawiah Drilling activities
KEFI GOLD + COPPER Hawiah Drilling activities 34
Slide 35: Hawiah is a World Class VMS Project
Hawiah is a World Class VMS Project KEFI GOLD + COPPER Continued Expansion of the Hawiah Deposit • 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
Slide 36: Key Hawiah 2020 PEA Outcomes
KEFI GOLD + COPPER Key Hawiah 2020 PEA Outcomes Summary of PEA Economics • High priority VMS project to be advanced via (Base case, August 2020 metal prices) further drilling, met testwork and studies Ore Processing Rate 2.0Mtpa • Mining – underground long-hole open Life of Mine Average Operating Co
Slide 37: Hawiah – Project moving to PFS stage
KEFI GOLD + COPPER Hawiah – Project moving to PFS stage • Drilling has targeted a 4.5Km long gossanous ridgeline now defined into the main areas; Camp Lode, Central Zone and Crossroads Lode • Three mineralisation zones identified: oxide zone near surface with supergene gold enrichment, a transition
Slide 38: Hawiah Key Drill Intercepts
KEFI GOLD + COPPER Hawiah Key Drill Intercepts • Good copper grades throughout the Camp Lode and appears to be increasing down plunge • Latest drilling confirms the Crossroads Lode remains open at depth Downhole Estimated true Mineralisation Hole ID Total Depth From (m) To (m) Cu % Zn % Au g/t Ag g/
Slide 39: Hawiah Long Section
KEFI GOLD + COPPER Hawiah Long Section Looking East 6km 39
Slide 40: Hawiah Cross Sections Looking North
KEFI GOLD + COPPER Hawiah Cross Sections Looking North Good Correlation between Holes Crossroads Lode Camp Lode 40
Slide 41: 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 42: Drilling at the Hawiah Camp Lode
KEFI GOLD + COPPER Drilling at the Hawiah Camp Lode Email: [email protected] @kefiminerals KEFI Minerals plc Website: www.kefi-minerals.com 42
Slide 43: Thank You
KEFI GOLD + COPPER Thank You 43