KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Shareholder Meeting (June 2016)
22 slides from KEFI Gold and Copper's shareholder meeting presentation, Jun 30, 2016
Slide 1: Developing a +100,000oz p.a. Gold Producer, Then Expanding in the Arabian-Nubian Shield
Developing a +100,000oz p.a. Gold Producer Then Expanding in the Arabian-Nubian Shield ANNUAL GENERAL MEETING 30 JUNE 2016
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers g
Slide 3: Why Start KEFI's Production in Ethiopia?
Why Start KEFI’s Production in Ethiopia? • Government actively boosting mining sector • Thriving economy, over 10 years of 7-10% GDP growth • HQ for African Union and stable • High growth country with pro-development culture • Prospective country with limited modern exploration • Rapidly improving i
Slide 4: Tulu Kapi History
Tulu Kapi History 2013: KEFI acquired 75% for US$10/ounce of Ore Reserves • Previous owners had spent >US$50 million on drilling and studies • Development plan required capex of US$289 million 2014: KEFI acquired the remaining 25% of Tulu Kapi • KEFI transformed flexibility for mine planning by incr
Slide 5: Tulu Kapi Open Pit Financials
Tulu Kapi Open Pit Financials Project Financials @ US$1,250/oz Targeted Sources of US$130M All-in Sustaining Costs US$746/oz Development Funding Required All-in Costs (incl initial capex) US$869/oz Average annual EBITDA US$58M Net Cash after Debt Repayment (LOM) US$326M Net Cash before Debt Service
Slide 6: Tulu Kapi Compares Well with Peers
Tulu Kapi Compares Well with Peers KEFI’s market capitalisation does not Tulu Kapi is a low capital intensity mine reflect the quality of Tulu Kapi development Sourced from company public reports with data to 23 June 2016. Initial capex to develop New Luika is per Shanta Gold’s 2015 plan to further
Slide 7: Tulu Kapi Owner's Development Team
Tulu Kapi Owner’s Development Team Wayne Nicoletto Kebede Belete KEFI Minerals Ethiopia Managing Director, and Country Manager Ethiopia Group Head of Operations Geologist (PhD, Austria; MPhil, UK; BSc, Ethiopia). 30 years as a metallurgist, general manager and Over 25 years of experience as Explorat
Slide 8: Project Timetable
Tulu Kapi Project Timetable Sequence of Financial Commitments US$ Commitment Flow Chart US$ 16 M 140 M 14 M 120 M 12 M Cumulative Commitment 100 M Monthly Commitment 10 M 80 M 8M 60 M 6M 40 M 4M 20 M 2M 0M 0M Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 9: Interdependent Timetables
Tulu Kapi Interdependent Timetables • Construction start Q4-16 requires timetable performance of Finance Syndication and Community Resettlement • Finance Syndication: KEFI doing all required for full document preparation Q3-16 and drawdown Q4-16 • Community Resettlement: KEFI doing all required for
Slide 10: Resettlement of Community Q3-16 Action Plan
Tulu Kapi Resettlement of Community Q3-16 Action Plan • Focus on areas needed for construction o Immediate focus on Phase 1B and Mine Camp • High-level government intervention on any policy matters o Directives to ensure compensation based on National statistics for yield, productivity and price • L
Slide 11: Human Resources Q3-16 Action Plan
Tulu Kapi Human Resources Q3-16 Action Plan • Completed and ready for sign-off in syndication documentation: o Organisation structure, role definitions, recruitment plan o Delegations of authority o Employee contracts o Employee handbooks • To be prepared with contractors Lycopodium and African Mini
Slide 12: Exploration Potential below Open Pit
Tulu Kapi Exploration Potential below Open Pit SW NE Potential underground Open Cut 1.05Moz at 2.12g/t Probable Reserves 1.72Moz at 2.65g/t Total Resource Ultimate open pit outline Resource blocks: >1.5g/t Au (brown) >5g/t Au (purple) Underground potential of c. 1Moz: Resource of 330,000oz at 6.3g/t
Slide 13: Expansion into Underground Mine
Tulu Kapi Expansion into Underground Mine • Thick, high-grade gold zones below open pit • Underground mineable resource = 1.3Mt @ 5.2g/t • Preliminary studies based on current resource only show: • Open Pit + Underground production ≈ 150,000oz p.a. • Additional NPV (8%) ≈ US$44M (at US$1,250/oz) • P
Slide 14: Exploration Potential below Open Pit
Tulu Kapi Exploration Potential below Open Pit • Gold grades increase and ore lenses thicken with depth • Resource remains open along strike, down plunge and at depth • High-grade drill intercepts below the planned open pit include: Hole From To Mineralised Width Grade No. (m) (m) (m) (g/t Au) TKBH-
Slide 15: Ethiopia Regional Exploration
Ethiopia Regional Exploration 15
Slide 16: Ethiopia Limited Modern Exploration
Ethiopia Limited Modern Exploration Arabian Nubian Shield: recognised as one of the most promising mineral districts for large gold and base metal discoveries Ethiopia has one single large-scale gold mine which is closing soon: Lege Dembi (Midroc Gold) 100Koz pa Apart from Tulu Kapi, large deposits
Slide 17: Ethiopia Prospects near Tulu Kapi
Ethiopia Prospects near Tulu Kapi Guji: Visible gold in drill Core 0 1km 2km Komto: Primary gold mineralisation Source: KEFI Minerals 17
Slide 18: Saudi Arabia (KEFI 40% and Operator)
Saudi Arabia (KEFI 40% and Operator) Jibal Qutman Hawiah • 0.7Moz gold resource defined • Potential for very large Cu-Au- at Jibal Qutman Zn orebody • Evaluating low-cost, heap-leach • Gossan horizon extends 6km treatment of oxide ore • Trenching indicates gold • Low capex & quick start-up enriched
Slide 19: Saudi Arabia Jibal Qutman - Possible Development
Saudi Arabia Jibal Qutman - Possible Development • c.99km2 EL was granted in July 2012 • Rapidly delineated initial JORC Resource in 2013 • Resource increased to 0.73Moz in 2015 • Four ELAs around Jibal Qutman EL with satellite open pit targets • Delineating further shallow oxide gold but now suffic
Slide 20: Saudi Arabia Hawiah
Saudi Arabia Hawiah • New c. 95km2 Hawiah EL granted in Dec 2015 • Potential for very large Cu-Au-Zn VHMS orebodies • Hosted in +120km north-south trending Wadi Bidah Mineral district which hosts some large VHMS deposits • Analogs include Jabil Sayid (Barrick) and Bisha SP survey (Nevsun) area to da
Slide 21: Key Milestones
Key Milestones Tulu Kapi, Ethiopia Jibal Qutman and Hawiah, Saudi Arabia H2-2016: H2-2016: • Financial completion of Project Finance • Jibal Qutman – submit Mining Licence Application and • Implement community resettlement commence prospecting adjacent licences • Start construction • Hawiah – start
Slide 22: Contacts
Contacts Harry Anagnostaras-Adams, Executive Chairman Mobile: +357 99457843 Cyprus - Group corporate office Ethiopia - Development and exploration teams Saudi Arabia - Exploration team Email: [email protected] Website: www.kefi-minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli, Cla