Jse Limited · JSE:JSE
Jse — Simmer & Jack Mines — JSE-Finweek Showcase Presentation April 2010
70 slides from Jse's conference presentation, April 2010
Slide 1: JSE-Finweek Presentation April 2010
JSE-FINWEEK PRESENTATION APRIL 2010 PRESENTED BY: Nico Schoeman CEO - Simmers
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. This presentation does not constitute an offering memorandum or an offer to sell or a solicitation to buy securities of Sim
Slide 3: Contents: Simmers (SIM)
Contents: Simmers (SIM) Simmers Overview Corporate Structure and Shareholders Resources/Reserves Production Profiles Valuation Conclusion Appendix: Other Slides 3
Slide 4: Simmers Overview
Simmers Overview —_ : & JACK
Slide 5: Simmers Overview
Simmers Overview Company Overview Resource Summary (1,2) Mid-tier South African gold and uranium miner focused on development Project Type of Resource 100% and expansion of surface and underground assets Name LOM Operation Category(1) Mineralization(3) Gold Uranium Wholly-owned gold operations:
Slide 6: Corporate Structure & Shareholders
Corporate Structure & Shareholders 6
Slide 7: Simmers Group: Current Corporate Structure March 2010
SIMMERS GROUP: CURRENT CORPORATE STRUCTURE: March 2010 XELEXWA (Formally Jaganda) 24.5% Institutional Local BEE SHAREHOLDER 23.8% Institutional Overseas 21.7% 28.1% Minorities FIRST URANIUM CORP SIMMER & JACK 1.9% SIM Employee Listed TSX & JSE 37.24% MINES LTD 78.3% Share Trust Issued = 167m shs Iss
Slide 8: Simmers Group: Resident/Non-Resident Shareholders March 2010
SIMMERS GROUP: RESIDENT/NON-RESIDENT SHAREHOLDERS: March 2010 8
Slide 9: Resources/Reserves
Resources/Reserves —_ : & JACK
Slide 10: SIM Ltd Attributable: Gold Reserve/Resource Mozs
SIM LTD Attributable: Gold: Reserve/Resource Mozs. (March 2009) @14.9g/t 10
Slide 11: SIM Ltd Attributable: Uranium Reserve/Resource Mlbs
SIM LTD Attributable: Uranium: Reserve/Resource Mlbs. (March 2009) 11
Slide 12: SIM FIU Combined (100%): Gold Reserve/Resource Mozs
SIM FIU Combined (100%): Gold: Reserve/Resource Mozs. (March 2009) 3.0 @ 0.3 g/t 12
Slide 13: SIM FIU Combined (100%): Uranium Reserve/Resource Mlbs
SIM FIU Combined (100%): Uranium: Reserve/Resource Mlbs. (March 2009) 13
Slide 14: SIM FIU: International Comparisons: Resources
SIM FIU: INTERNATIONAL COMPARISONS: Resources (000)ozs. 14
Slide 15: SIM FIU: South African Comparisons: Market Cap per Resource oz
SIM FIU: SOUTH AFRICAN COMPARISONS: Market Cap per Resource oz: $/oz 15
Slide 16: Production Profiles
Production Profiles —_ : & JACK
Slide 17: Simmers Group: Capex and Gold Production Profile
Simmers Group: Capex and Gold Production Profile FUTURE PAST 17
Slide 18: Simmers Ltd Gold Production Profile (Yr End March)
Simmers Ltd Gold Production Profile (Yr End March) + 52% + 135% 18
Slide 19: SIM and FIU (100%): Gold Production Profile
SIM and FIU (100%): Gold Production Profile (Yr End March) + 44% 19
Slide 20: SIM and FIU (100%): Uranium Production Profile
SIM and FIU (100%): Uranium Production Profile (Yr End March) 20
Slide 21: BGM – Historical Mined Grades and Planned Mining Grades
BGM – Historical Mined Grades and Planned Mining Grades R ising de Gra 21
Slide 22: BGM: Effect of Rationalisation Process
BGM: Effect of Rationalisation Process. Reduction in monthly cash costs: Sept 2009 to March 2010 22
Slide 23: Buffels: Potential monthly cost impact of Eskom's 25% pa increase
BUFFELS: Potential monthly cost (Rm) impact of Eskom’s 25% pa increase. R10m (+25%pa) R2m (+10%pa) R5m (+10%pa) 23% R10m (+10%pa) 23
Slide 24: Costs R/oz: Gold Industry
Costs R/oz: Gold Industry 1. Industry includes Anglogold, Harmony, Gold Fields and DRDGold 24
Slide 25: BGM Revised Life of Mine (u/g + surface)
BGM Revised Life of Mine (u/g + surface). Project Overview Project Operating Parameters Long-life underground mine and surface operation with Buf u/g: Inferred Resources (Moz) 10.8 @ 14.9g/t significant resource base acquired in 2005. LOM to 2029 Measured & Indicated Resources (Moz) 12.1 @ 11.3g/t
Slide 26: Tau Lekoa – cornerstone of regional consolidation
Tau Lekoa – cornerstone of regional consolidation Project Location and Mining Areas Background of Operations Previously known as Vaal Reefs No.10 Shaft BGM Pamodzi Shaft sinking commenced in 1985 First gold poured in 1991 Exploits the Ventersdorp Contact Reef (VCR) SA industry-leader in terms of pro
Slide 27: Potential Annual Cost Savings at Tau Lekoa
Potential Annual Cost Savings at Tau Lekoa 27
Slide 28: Tau Lekoa Revised Life of Mine
Tau Lekoa Revised Life of Mine Project Overview Project Operating Parameters West extremity of Orkney assets: 2 surface shafts Inferred Resources (Moz) @5.62g/t 0.554 Mines to a depth of 1,650m. Reduced seismic events M & I Resources (Moz) @5.6g/t 2.380 18 yr old v 50 yr old infrastructure at
Slide 29: Valuation
SIMMER & JACK MINES LIMITED Valuation 29
Slide 30: Simmers: Undervalued relative to FIU
Simmers: Undervalued relative to FIU. SIM current market cap of R1.47bn FIU current market cap of R1.6bn Simmers interest in FIU is 37.2% = R0.6bn representing 40% of Simmers market cap. Including Simmers cash (R740m), this increases to 91% of the SIM Market Cap. Thus, the SIM gold operati
Slide 31: Simmers Attributable Relative NPV Valuation
Simmers Attributable Relative NPV Valuation @ Gold = $1100/oz, R7.50/$, Uranium = $50/lb. Trading at a P/NPV of 0.14x 31
Slide 32: Gold Shares – Valuation Table
Gold Shares – Valuation Table Valuations done at $1100/oz and R7.50/$, Ur at $50/lb. GROUP ANG GFI HAR GBG DRD GDO FUM SIM DCF VALUE (cps) 39500 15500 12200 2500 600 590 2920 880 PRICE (cps) 28800 9340 7220 1250 375 193 930 120 PRICE/DCF 0.73 0.60 0.59 0.50 0.63 0.33 0.32 0.14 DISCOUNT RATE 5% 6% 8%
Slide 33: SIM Ltd: Cash Earnings Contributions from different divisions
SIM Ltd (Excludes FIU): Cash Earnings Contributions (cps) from different divisions. @$1100/oz, R7.50/$. 33
Slide 34: SIM + 37.24% of FIU: Attributable Cash Earnings
SIM + 37.24% of FIU: Attributable Cash Earnings (cps) from different divisions. @ $1100/oz and R7.50/$. 34
Slide 35: Conclusions
SIMMER & JACK MINES LIMITED Conclusions 35
Slide 36: Conclusion: Simmers (SIM) and First Uranium (FIU)
Conclusion: Simmers (SIM) and First Uranium (FIU) Long road to refurbishment nearing the end. Production ramp-up starting to happen. Strong positive cash flow within the next 12 - 18 months. Companies significantly undervalued. FIU recapitalised – SIM rights issue pending. Organic growth at current
Slide 37: Simmer & Jack Mines Limited
Simmer & Jack Mines Limited Address Corporate Websites 5 Press Avenue, Selby www.simmers.co.za Johannesburg, 2025 www.firsturanium.com Contact Information Simmers First Uranium Nico Schoeman (CEO) Deon Van Der Mescht (CEO) Office: +27 82 330 4149 Office: +27 82 807 0160 Email: [email protected] Ema
Slide 38: Appendix: Other Slides
Appendix: Other Slides —_ : & JACK
Slide 39: SIM: BGM and Tau Lekoa layout plan
SIM: BGM and TAU LEKOA layout plan Klerksdorp BGM r or a Au a Goedgenoeg Anglogold Ashanti ek o Weltevreden uL Orkney Ta Town 39
Slide 40: FIU: Ezulwini: Schematic West–East cross section
FIU: Ezulwini: Schematic West – East cross section 40
Slide 41: BGM (SIM) and MWS (FIU) layout plan
BGM (SIM) and MWS (FIU) layout plan Chemwes Harties Anglogold Buffels 41
Slide 42: BGM's High Grade 5 Shaft Rehabilitation: 2007-2009
BGM’s High Grade 5 Shaft Rehabilitation: 2007 - 2009 Severely damaged by an earthquake: 23 March 2005 Rehab now complete – production build up commences 42
Slide 43: BGM 5 Shaft: Cross Section
BGM 5 Shaft: Cross Section 5 MAIN SHAFT ROCK / MAN WINDERS SURFACE TRANSFER LEVEL DYKE 25 LEVEL ABANDONED ORE PASSES 26 LEVEL DAMAGED SHAFT AREA 27 LEVEL ROCK / MAN WINDERS 28 LEVEL 5A SHAFT CONVEYOR BELT SYSTEM 29 LEVEL DAMAGED MAIN ACCESS WAYS DAMAGED ORE PASSES NEW ORE PASS SHAFT BOTTOM 71 LEVEL
Slide 44: 5 Shaft: Severe Earthquake Damage
5 Shaft: Severe Earthquake Damage 44
Slide 45: 5 Shaft: Clearing the wreckage
5 Shaft: Clearing the wreckage 45
Slide 46: 5 Shaft: Restored haulage
5 Shaft: Restored haulage SIMMER & JACK MINES LIMITED
Slide 47: 5A Shaft: New Fridge Plant
5A Shaft: New Fridge Plant SIMMER & JACK MINES LIMITED
Slide 48: New Major Target Areas: BUF u/g showing gold ore blocks
New Major Target Areas: BUF u/g showing gold ore blocks (in-situ). *Recovered gold value at $1200/oz. (Dilution factor: Recovered/In-Situ = 0.675) 5# N W Block, 9.2Ha, 7.4g/t 5# Haulage Pillar, 14Ha, 9.5g/t Au = 2.3t = 72 500 ozs = *$59m. Au = 4.4t = 143 000 ozs = *$116m. Strathmore Tertiary # 6# N
Slide 49: BGM – Historical Mined Grades and Planned Mining Grades
BGM – Historical Mined Grades and Planned Mining Grades R ising de Gra 49
Slide 50: BUF U/G: Shaft Contributions Towards Recovered Ounces
BUF U/G: Shaft Contributions Towards Recovered (ozs) 11% 8% 14% 22% 27% 29% 50
Slide 51: Potential Upside: Goedgenoeg and Weltevreden
Potential Upside: Goedgenoeg and Weltevreden Composite CompositeKrig KrigGrid Grid2008 2008 51
Slide 52: Goedgenoeg and Weltevreden: Cross-section
Goedgenoeg and Weltevreden: Cross-section Project Overview Located on the down-dip extension of Tau Lekoa Capital estimate of R2.5 billion for sub-shaft Ore body extends from 1,900m to 2,500m system shallower than depths currently accessed at Conceptual resources of 3 million ounces at BGM 7
Slide 53: Weltevreden
Weltevreden Project Overview Project Operating Parameters Shallow extension of Tau Lekoa Inferred Resources (Moz) @5.79g/t 0.043 Started by Gengold in 1990 -1992: R229m capex spent M& I Resources (Moz) @4.2g/t 2.329 Multi-stage approach by Simmers Drilling programme, currently dewatering twi
Slide 54: TGME: Significant Exploration Upside
TGME: Significant Exploration Upside TGME land package consists of: TGME Project Areas +40,000 hectares of New Order prospecting rights 40,000 ha New Order Prospecting Rights +10,000 hectares of mining rights secured 10,000 ha Mining Rights Under Application Two distinct exploration areas ha
Slide 55: BGM – Blue Sky: Strathmore Deeps. 100% Simmers
BGM – Blue Sky: Strathmore Deeps. 100% Simmers Potential: “Seperate Listing”. Strathmore Deeps Project Area – Schematic (1) Concept study completed April 2008. Gold (Au) and Uranium (Ur) co-product mining. Existing world class infrastructure to 3 000 metres, needs to be extended to 5 000m. Gold
Slide 56: First Uranium Overview
First Uranium Overview —_ : & JACK
Slide 57: Ezulwini Mine Map
Ezulwini Mine Map The Ezuwlini Mine (dark green): 3,718 hectare lease area Historic production 1961 to 2001 8.4 million ounces of gold 12.7 million pounds of uranium The Cooke Section (light green): to the north of Ezulwini has produced over 51 million ounces of gold 23 million pounds of uranium Pro
Slide 58: Ezulwini: Schematic West–East cross section
Ezulwini: Schematic West – East cross section 58
Slide 59: First Uranium: Capex and Gold Production Profile
First Uranium: Capex Rm/a and Gold Production Profile (000) ozs/a. 59
Slide 60: FIU Ltd: First Uranium 1. Low-Cost Operator
FIU Ltd: First Uranium 1. Low-Cost Operator Dual commodity mix by mining uranium and gold together at both projects, the Company expects to become a very low-cost uranium mine operator Brownfield underground mine the Ezulwini Mine began in the 1960’s and left a legacy of existing infrastructure
Slide 61: FIU Ltd: Gold Reserve/Resource Mozs
FIU LTD: Gold: Reserve/Resource Mozs. 61
Slide 62: FIU Ltd: Uranium Reserve/Resource Mlbs
FIU LTD: Uranium: Reserve/Resource Mlbs. 62
Slide 63: FIU: Uranium Production Profile
FIU: Uranium Production Profile (Yr End March) 63
Slide 64: First Uranium: Gold Production Profile
First Uranium (FIU) (Yr End:March): Gold Production Profile (000) ozs + 23% 64
Slide 65: FIU Ltd: Cash Earnings Contributions from different divisions
FIU Ltd: Cash Earnings Contributions (SAcps) from different divisions (E). @$1100/oz ,R7.50/$, Ur = $50/lb 65
Slide 66: First Uranium Ltd (FIU) comprises Ezulwini + MWS
FIRST URANIUM LTD (FIU) comprises Ezulwini + MWS. Overview Project Operating Parameters Low cost operator. Dual commodity mix: mining gold and Inferred Resources: 193Mlb of Uranium, 26Mozs of gold. uranium together at both projects. M & I Resources : 62Mlbs of Uranium, 6Mozs 0f gold. Ezulwini: B
Slide 67: Ezulwini
EZULWINI Project Overview Project Operating Parameters Produced gold from 1960 to 2001. Ur from 1982 to 1997. Inferred Resources: 189Mlbs @1.19lb/t Ur, 25.5Mozs @5.0g/t Au. FIU IPO in December 2001. Mine restarted Feb 2007. Shaft rehab complete, mining of shaft pillar commenced. M & I Resource
Slide 68: Mine Waste Solutions
Mine Waste Solutions High-volume hydraulic mining of low-grade surface ore yields high margins. 68
Slide 69: Mine Waste Solutions
Mine Waste Solutions Reclamation station pumps 633,000 tpm 10.5 kilometres to MWS gold plant. 69
Slide 70: MWS: Mine Waste Solutions
MWS: Mine Waste Solutions Project Overview Project Operating Parameters 350 mt of above ground mineral resources, gold and Ur. Inferred Resources: 6.1Mlbs @ 0.21lb/t Ur, 0.2Mozs @0.3g/t Au. Low-cost, high-volume hydraulic tailings mining operation. M & I Resources : 54.3Mlbs @ 0.17lb/t Ur, 2.8Mo
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