Kropz Plc · LSE:KRPZ
Kropz — Investor Presentation (May 2020)
21 slides from Kropz's investor presentation, May 2020
Slide 1: Kropz – An Emerging African Phosphate Developer
KROPZ – AN EMERGING AFRICAN PHOSPHATE DEVELOPER Transformational fundraising: Elandsfontein fully funded to production May 2020
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLIC RELEASE OR FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. These prese
Slide 3: Corporate overview
Corporate overview Strong board and management team with African mining experience Lord Robin Renwick of Clifton, Chairman CAPITAL STRUCTURE (pre-fundraising) § Former UK ambassador to USA and South Africa Share price (31 March 2020) 9.5 pence § Former Deputy Chairman of JP Morgan Europe Shares in i
Slide 4: Investment proposition
Investment proposition Building a sub-Saharan phosphate champion § Value underpinned by tangible assets – c.$170 million spent to date − $120 million on high-quality processing plant1, mine infrastructure at Elandsfontein project − c.$50 million on Hinda project development § Funding secured2 to tak
Slide 5: Phosphate market: ready for rebound
Phosphate market: ready for rebound PHOSPHATE MARKET AND DRIVERS TOP PHOSPHATE ROCK COUNTRIES AND ACCESS TO MARKETS § The main driver of phosphate rock demand is production of fertilizers − Rock producers are either integrated (with downstream fertilizer capabilities) or non-integrated § Fertilizers
Slide 6: Projects
Projects A sub-Saharan African phosphate portfolio HINDA, REPUBLIC OF CONGO Medium-term growth, 100% owned by Kropz1 - Believed to be one of world’s largest undeveloped phosphate reserves - Rock concentrate suitable for production of phosphoric acid, MAP, DAP - Excellent logistics and close to port
Slide 7: Elandsfontein – investment and history
Elandsfontein – investment and history 2013 2015 2016 2017 2018 2019 2020 2021 Prospecting right DFS completed Construction and Water use license IPO and initial fund Test work Further fund raise Planned awarded Mining right mining development awarded raise Circuit design EPCM contract construction
Slide 8: Elandsfontein – internal updated mine plan
Elandsfontein – internal updated mine plan Advanced construction and near-term production METRIC PROJECT Current LOM (potential to extend) 9 years Steady-state annual production >1.0 Mt Phosphate rock concentrate 31% P2O5 LOM phosphate rock production 8.8Mt LOM selling price $134/t1 LOM cash costs (
Slide 9: Elandsfontein – resource and mining
Elandsfontein – resource and mining Well-defined resource, box cut developed, ore exposed and ready for processing § Second-largest phosphate deposit in South Africa − Low-cost free digging, sandy deposit with ore thickness ranging between 15m and 30m − Average strip ratio of 3.3:1 over LOM § Mining
Slide 10: Elandsfontein – processing
Elandsfontein – processing Execution of modifications underway § Plant designed to upgrade to >31% P2O5 (68% BPL) with a capacity of >1.0Mtpa § Plant originally designed as two stages of reverse flotation § Plant has now been modified to cater for a direct float, followed by reverse flotation − Robu
Slide 11: Elandsfontein – processing
Elandsfontein – processing Detailed 3D model to facilitate construction 11
Slide 12: Hinda – investment and history
Hinda – investment and history 2013 2014 2015 2016 2018 2020 2021 2022 JORC / NI43-101 Extensive laboratory DFS completed for ESIA approved Contract finalised by New feasibility study Further fund raise Forecast resource declared and pilot test work 4Mtpa project Mining Exploitation completed Potent
Slide 13: Hinda - resource and mining
Hinda - resource and mining Believed to be one of the world’s largest undeveloped phosphate reserves § Large, shallow (>650Mt) resource1 at 10% P2O5 § Opencast mining, commencing with 1:1 strip ratio § Phosphate mineralisation is hosted by a 300m to 800m wide corridor, within a fault-bounded graben
Slide 14: Hinda – optimised production plan
Hinda – optimised production plan Opportunity to reduce capital costs and accelerate positive cash flow § New work programme will target optimised production capacity of 1.2Mtpa to 1.8Mtpa § Optimised production rate will reduce capital costs and simplify operations1: - Potential early mining of wea
Slide 15: Fundraising overview and timetable
Fundraising overview and timetable SUMMARY § Kropz has entered into a conditional convertible equity facility of up to Equity Facility § Up to $40m with ARC Fund $40m (conversion rate is subject to a maximum fixed rate of $1 = 17 § Conversion into ordinary shares in Kropz and issued to ARC Fund, at
Slide 16: Feed the World
KR PZ FEED THE WORLD
Slide 17: Funding and use of proceeds
Funding and use of proceeds Proceeds from new investors primarily used to progress Hinda FS and for general working capital SOURCES OF FUNDING $m ELANDSFONTEIN DEVELOPMENT CAPITAL $m Current cash balance (31 March 2020) 12 Mechanical equipment 9 Equity Facility from ARC Fund 40 Infrastructure, civil
Slide 18: Committed to responsible and sustainable mining
Committed to responsible and sustainable mining § We’re committed to operating with integrity and with an innovative, transparent approach centred on our core values People Kropz is dedicated to creating sustainable employment opportunities and nurturing talent from our local communities We are focu
Slide 19: Elandsfontein – management
Elandsfontein – management Kropz senior management, with project development and operational experience Jan Steenkamp, Managing Director Elandsfontein § Over 45 years in mining industry § Former CEO Avmin and African Rainbow Minerals § Extensive corporate mining experience Michelle Lawrence, Chief O
Slide 20: Corporate structure
Corporate structure Platform for delivery, growth and positive stakeholder returns Parent Company Kropz Plc (100%) Kropz Elandsfontein (Pty) Ltd Cominco Resources Ltd Subsidiary (74%) (90%) Project Elandsfontein Mine Hinda Project ARC Fund ROC Government Partner (26%) (10%)1 20 1 Subject to future 1
Slide 21: Elandsfontein and Hinda phosphate rock concentrate
Elandsfontein and Hinda phosphate rock concentrate Both rock concentrates well suited to phosphoric acid and phosphate fertilizer production § Rock samples tested at Prayon Technologies in Belgium in 2015 § The Elandsfontein phosphate rock concentrate acidulation results showed: - Sulphuric acid req