Keras Resources Plc · LSE:KRS
Keras Resources — Ferrex — Mining Indaba Conference 2014
25 slides from Keras Resources's conference presentation, February 2014
Slide 1: Investor Presentation – Mining Indaba Conference – February 2014
INVESTOR PRESENTATION – MINING INDABA CONFERENCE - FEBRUARY 2014
Slide 2: Disclaimer
Iron ore and manganese development in Africa Disclaimer IMPORTANT INFORMATION These presentation slides and the accompanying verbal presentation (“Presentation Materials”) are being provided in connection with a marketing presentation by Ferrex Plc (the “Company”) and have been prepared by the Compa
Slide 3: Corporate Overview
Iron ore and manganese development in Africa Corporate Overview AIM quoted iron ore (‘Fe’) and manganese (‘Mn’) development PROFILE company focussed in Africa Iron Ore: Mebaga, Gabon & Malelane, South Africa PROJECTS Manganese: Nayega, Togo & Leinster, South Africa To advance low capex deposits, nea
Slide 4: Key Data
Iron ore and manganese development in Africa Key Data MARKET AIM 12 MONTH HIGH/LOW 1.02p /2.71p TICKER FRX SHARES IN ISSUE 805,18m SHARE PRICE 1.905 p (31.02.14) NOMAD finnCap MARKET CAP £16.04m (31.02.14) BROKER finnCap Shareholder Analysis Share Price 0.00% 12.53% Shareholders >15% 22.09% Sharehol
Slide 5: Proven Track Record in Africa
Iron ore and manganese development in Africa Proven Track Record in Africa The Board has a proven record of building value for shareholders through developing assets into production and successfully completing trade sales Feasibility Studies Completed and Mines Developed Eureka Gold Mine, Zimbabwe
Slide 6: Corporate Structure
Iron ore and manganese development in Africa Corporate Structure 6
Slide 7: Mebaga DSO Iron Ore Project - Gabon
Iron ore and manganese development in Africa 1. Mebaga DSO Iron Ore Project - Gabon Land Position Binding Term Sheet 309 sq km Anglo American 82 per cent holding To fund exploration over 2 years Initial drill programme 6 assays to date complete & mapping Best Assay on-going to evaluate 66.03% Fe the
Slide 8: Project Level Funding from Mining Major
Iron ore and manganese development in Africa Project Level Funding from Mining Major “To have secured the interest of a major mining house such as Anglo American and the operational experience of Kumba Iron, reinforces Ferrex’s confidence in the significant economic potential of Mebaga as a leading
Slide 9: Exploration Upside
Iron ore and manganese development in Africa Exploration Upside Total exploration target, for just 11km of 19km strike of BIF, of 630Mt to 1,050Mt @ 25 – 65% Fe, including 90 to 150Mt @ 35 – 65% of oxide target that will include DSO and bBSO material (easy to beneficiate) 9
Slide 10: Mebaga Iron Ore – On-going Exploration
Iron ore and manganese development in Africa Mebaga Iron Ore – On-going Exploration Close proximity to infrastructure to enable rapid advancement of DSO resource potential Nine hole drill programme completed in Q4 2013 – best results include: Hole From To Interval (m) Fe% NGDH002 0 25.8 25.8 57.8
Slide 11: Start-Up Operation
Iron ore and manganese development in Africa Start-Up Operation Gabon has excellent infrastructure Sealed roads Hydro plants Operating Rail Port Plan to truck 100km south on upgraded main forestry road to Booue 290km rail to port – lease train sets Tranship with Rotainer – similar to
Slide 12: Longer Term Potential – Funded by Others
Iron ore and manganese development in Africa Longer Term Potential – Funded by Others Multi user rail from Belinga planned to pass 50km south of Mebaga Cape vessel port planned for Port Gentil 1km long jetty 12
Slide 13: Mebaga Iron Ore Peer Comparison
Iron ore and manganese development in Africa Mebaga Iron Ore Peer Comparison Company Exchange Location Comments Resource/ Market Cap EV/t Exploration (GBP)* Contained Fe Target (GBP) BC Iron ASX Australia In Production 81mt @ 54% 320 million 7.32 @ 4 mtpa African iron Republic of Takeover 2012, 44mt
Slide 14: Nayega Manganese Project – Togo
Iron ore and manganese development in Africa 2. Nayega Manganese Project – Togo Land Position JORC Resource 92,390 ha 11Mt @ 13.1% Mn 5 exploration licences in Measured and Indicated northern Togo Low Capex Low Opex US$15m US$2/dmtu FOB Initial estimate for 250,000 Initial estimate for 250,000 tpa p
Slide 15: Nayega Manganese Project - Near Term Production
Iron ore and manganese development in Africa Nayega Manganese Project - Near Term Production Early cashflow targeted through the rapid development of a low-capex, open pit, 250,000tpa manganese operation Focussed on developing an open pit, zero strip mining operation Simple beneficiation route u
Slide 16: Key Elements of Operation
Iron ore and manganese development in Africa Key Elements of Operation Tonnes Mn Measured Resource 2,000,000 17.1% Indicated Resource 9,000,000 12.2% Measured + Indicated Resource 11,000,000 13.1% Geology Logistics Measured and Indicated Resources of 11Mt at Back haul using clinker trucks - Heid
Slide 17: Malelane Iron Ore Project – South Africa
Iron ore and manganese development in Africa 3. Malelane Iron Ore Project – South Africa Exploration Target Inferred Resource 139Mt @ 37% Fe 1,60028-30% – 2,000Mt Fe Modelled on 1.1km of 14km Incl 900 – 1,200 Mt 36-38% Fe Pre-Tax NPV: CAPEX US$139m US$523m (10%) OPEX US$53.5/t Pre-Tax IRR:72% FOB Pr
Slide 18: Malelane Iron Ore Project - Geology
Iron ore and manganese development in Africa Malelane Iron Ore Project - Geology Malelane Inferred Resource at various cut-offs Cut- Tonnes Fe CaFe Al2O3 SiO2 P S LOI Off (m) % % % % % % 1000 (%) 50 4.9 52.2 56.7 1.4 10.8 0.08 0.018 8.0 40 50.9 44.3 47.7 2.0 22.3 0.07 0.020 7.3 20 138.9 36.9 40.1 4.
Slide 19: Malelane Scoping Study Results & Development
Iron ore and manganese development in Africa Malelane Scoping Study Results & Development Pre-Feasibility Study Larger, 3rd development project with strong economics – robust NPV, IRR and low capital Project Upside intensity, as well as significant resource upside Starter DSO operation potential w
Slide 20: Malelane Capital Intensity
Iron ore and manganese development in Africa Malelane Capital Intensity Adriana Lac Otelnuk Grange Resources Southdown Gindalbie Karara BHP Billiton Outer harbour expansion Macarthur Minerals Lake Giles Aquila West Pilbara Black Iron Shymanivske ArcelorMittal Mont Wright Oceanic Hopes Advance New Mi
Slide 21: Malelane – The Bigger Picture
Iron ore and manganese development in Africa Malelane – The Bigger Picture Exploration target could support a significantly larger operation than outlined in the Scoping Study with >20mtpa possible Ferrex to investigate magnetic lows (possible higher grade) and old Dumanene mine area for large t
Slide 22: Development Summary
Iron ore and manganese development in Africa Development Summary Establishing its position as a leading low-capex iron ore and manganese exploration and development company with near-term production potential in Africa Mebaga Binding terms with Anglo American to fund and exploit Gabon DSO resource p
Slide 23: Contacts
Iron ore and manganese development in Africa Contacts Dave Reeves Felicity Edwards/ Elisabeth Cowell Ferrex PLC St Brides Media & Finance Ltd Email: [email protected] Email: [email protected] [email protected] T: +44 (0)207 236 1177 Elizabeth Johnson/ Joanna Weaving finnCap Limited T: +44 (0)2
Slide 24: Board
Iron ore and manganese development in Africa Board Brian Moritz Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Non-Executive Chairman Thornton’s Capital Markets Team which floated over 100 companies on AIM under his chairmanship. In 1995 he retir
Slide 25: Management Team
Iron ore and manganese development in Africa Management Team Mark Styles Mark is a geologist with a first class honours degree obtained from the University of Western Exploration Manager Australia and 20 years experience in exploration and project management worldwide. His experience covers a range