Harnessing Growth in Tanzania

Transcription

1 Harnessing Growth in Tanzania August

2 Disclaimer These presentation slides (the Slides ) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of Kibo Mining plc (the Company ) and they should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buy securities in the Company. If any person is in doubt as to the contents of this presentation, or wishes to obtain advice as to the investment merits of the Company s securities, he should seek independent advice from a person who is an authorised financial services provider. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. The information contained in these Slides and the accompanying verbal presentation is in the public domain, however no representation or warranty, express or implied, is given by or on behalf of the Company, its advisors, shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (save that nothing in this disclaimer is intended to limit the liability of any party for its own fraud). The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships, and the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in only with such persons. Any individual who is in any doubt about the investment to which these Slides relate should consult an authorised person specialising in advising on investments of the kind referred to in these Slides. Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides. The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer is unlawful, including the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada. The distribution of the Slides in some jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such restrictions. Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that necessarily involve risks and uncertainties. Forward-looking statements may generally be identified by the use of terminology such as may, will, expect, intend, plan, estimate, anticipate, believe, or similar phrases. Other than statements of historical facts, all statements, including, among others, statements regarding the future financial position of the Company, business strategy, projected levels of growth in its market, projected costs, estimates of capital expenditures and plans and objectives of management for future operation, are forward-looking statements. The actual future performance of the company could differ materially from these forward-looking statements. Important factors that could cause actual results to differ materially from these expectations including known and unknown risks. Undue reliance should not be placed on these forward-looking statements. August

3 Tanzania A rapidly growing market economy Politically stable, peaceful country with Government support for mining and power capacity development Tanzania is a priority territory for China, and attracting FDI from the UK, US and South Africa Globally competitive tax and regulatory regime for natural resources investors Accelerated and simplified handling of investment proposals driven by growing demand for power Technical staff trained in various mining disciplines, abundant labour to support development of large projects Well-established mining services industry, to support development of Kibo portfolio August

4 Company Leadership Highly experienced management team with a strong track record of success in Tanzania Significant depth of knowledge, expertise and regional network, well placed to deliver value for shareholders Christian Schaffalitzky Non-Executive Chairman Louis Coetzee Chief Executive Officer Andrew Lianos Chief Financial Officer Noel O Keeffe Technical Director Tinus Maree Non-Executive Director Wenzel Kerremans Non-Executive Director Geologist with over 35 years experience in mineral exploration and mining finance Managing Director of AIM-listed Eurasia Mining plc Entrepreneur with 25 years experience in business development, promotion and financing Vice-president of business development with TSX listed Great Basin Gold Limited Chairman & CEO with ASX listed East Africa Resources Limited Chartered accountant with over 25 years experience across a range of senior roles Co-founder and director of River Group an International corporate finance house Geologist with over 25 years experience in mineral exploration Former Exploration Manager of AIM-listed Ormonde Mining plc in Tanzania Lawyer with extensive public company directorship experience Successful record in development and sale of mineral projects in Tanzania Lawyer with over 25 years legal experience in mining, banking and project finance Extensive experience in advising clients on mining investment in Africa August

5 Company Interests Mbeya Coal to Power Project Mbeya Kibo s flagship asset Development of coal resource & MW mine-mouth power station Advanced project at development stage delivery of Coal DFS and Power DFS before end 2015 Joint Development Agreement recently signed with large Chinese EPC contractor, SEPCOIII Further opportunities for expansion of coal resource and additional end uses Lake Victoria Goldfields Project Seven gold exploration projects in both Tanzania's premier and newly emerging gold regions 550,000oz JORC compliant gold resource at Imweru and 170,000oz NI compliant gold resource at Lubando Advanced project development with commencement of Definitive Feasibility Study at Imweru Haneti Project Prospective Nickel Sulphide PGM targets drill ready Additional gold and lithium prospectivity Morogoro Project Gold exploration interests with one drill target ready on recommencement of exploration JV signed with Metal Tiger Pinewood Project Large land holding in proven coal & uranium discovery region in southern Tanzania JV signed with Metal Tiger August

6 Corporate Information Kibo Mining PLC Ord Kibo is an Irish-registered company established in 2008 that focuses on mineral exploration and development throughout Tanzania Stock Exchanges AIM: KIBO JSE: KBO Shares in Issue *328,898,757 Options & Warrants 15,574,999 Price (p) Fully Diluted 344,473, /14 11/14 1/15 03/15 05/15 07/15 12 month share price range 1.1p 9.75p Share price (05/08/2015) 4p Market capitalisation (GBP) 13.15M Millions /14 11/14 1/15 03/15 05/15 07/15 *4,090,000 of these are non-trading and held in a forfeited share suspension account Source : August

7 Mbeya Coal to Power Project Working with Tanzania to develop critical power capacity Power focus closely aligned with Tanzania s national development priorities, resulting in ongoing government support National installed power generation capacity of 1,500 MW with only 780 MW operational, with demand standing at ~ MW and expected growth of 10-15% annually A supportive regulatory framework to support IPPs providing Kibo with a robust platform to progress the Mbeya project Experienced management team with significant depth of appropriate technical expertise and extensive high level network in Tanzania, regionally and internationally Tanzanian progress to date demonstrable evidence of the company s ability to do power transaction and development business in-country August

8 Mbeya Coal to Power Project August

9 Mbeya Coal to Power Project In overview Canadian NI compliant resource of 109 Mt already established with significant further potential Real near-term commercialisation potential demonstrated by recent signing of a Joint Development Agreement with large China based EPC contractor SEPCOIII to build 300MW coal fired power station (see RNS ) Focused project management team appointed to oversee feasibility studies (see RNS ) Standard Bank appointed as Financial Advisor for the Rukwa Coal Mine and Rukwa Power Station bringing significant expertise (see RNS ) Mining Definitive Feasibility Study (Pre Feasibility Study) completed end August Power Pre Feasibility Study completed (see RNS ) Artist s Impression of a Mine Mouth Power Generation Plant (Hongs Project, Laos) August

10 Mbeya Coal to Power Project A compelling project with strategic advantages Strategically located in close proximity to Mtwara Development Corridor earmarked for fast track socio-economic development by National Government Inclusion of Kibo s Mbeya Coal to Power Project in Tanzanian National Energy Strategy (see RNS ) Substantial support for project development amongst local community and government at local, regional, national and ministerial levels Mbeya regarded as a priority project with government support reducing potential risks and delays associated with permitting and licenses Existing infrastructure significant with vast fresh water supply, extensive road and rail network, national grid 20 km away and overall proximity to southern region capital Mbeya (circa 70 km) Historical and Definitive Mining Feasibility Work indicates low mining cost (low strip ratio, open cast mine method) over a Life of Mine of at least 28 years Study also confirms coal suitability for thermal power generation in respect of calorific value, ash/volatile content and coal sufficiency (see RNS ) On site processing / beneficiation of product not required due to suitability of RoM product for power station August

11 Feasibility Studies Mining Key Outcomes Mining Project DFS Reflects a Feasible Project with Attractive Returns Financially feasible for all the options investigated. Best-estimated NPV ranges between USD 211 million and USD 244 million.(at a discount rate of 5,5%), with 36% - 54% IRR range. All in cost margin of between 33,6% and 53.9% (All in cost margins of above 25% are considered as healthy) Reasons : Low operating costs as a result of the proposed mining method and shallow orebody; Small sustaining capital expenditure; Fixed coal price as received from power plant. The high all-in cost margin is indicative of the robustness of the Project. Mechanised continuous surface mining technology ensures low mining cost and accurate mining. A capital investment of between USD38 million and USD73 million is required to fund the operation subject to the selected mining option. Project payback period, between 2.6 and 3.65 years. The Project is most sensitive to coal price and operating cost. Mechanised Continuous Surface Miners ensure coal delivered on specification to power station no need for washing or crushing August

12 Feasibility Studies Power Key Outcomes Power Project PFS Reflect a Feasible Project with Attractive Returns Power Pre Feasibility Study completed, indicating no technical fatal flaws which would prevent furthering development of the project via feasibility analysis, of a 300MW power station, and a Construction Period of 36 months (early power after 33 months on first unit) (see RNS ) The findings of the PFS merit further investigation of the project via a full feasibility study. Indicative Power Station Performance.(RNS ) Parameter Units Preferred Option 2x150MW, CFB, wet cooling Instantaneous performance Gross power MW 300 Auxiliary power MW 33 Net power MW 268 Net heat rate (HHV basis) kj/kwh 10,694 Annual performance Net power generated GWh/a 1,878 Coal consumption kt/a 1,467 Limestone consumption 2 kt/a 93 Water consumption ML/a 4,380 Solid waste incl. ash kt/a 586 August

13 Mbeya Coal to Power Project Operational Plans 2014/2015 Key work streams and operational focus for Q to Q1 2016: (Focused on accelerated development of the Rukwa Coal to Power project ) Work Areas Q4 Q1 Q2 Q3 Q4 Q1 Preparation of Definitive Feasibility Study (Mining) Concept Study Pre-feasibility Study Feasibility Study Preparation of Definitive Feasibility Study (Power Station) Pre-feasibility Study Feasibility Study Environmental Impact Study Securing of permits and licenses Development and negotiation of Coal Supply Agreements (CSA and Power Purchase Agreement Modelling of Mine and Power station Evaluation of potential for Coal to liquid operation coal seam gas production and the export of coal August

14 Lake Victoria Goldfields AngloGold Ashanti ~23 M 4g/t African Barrick ~4.1 M 1.3 g/t Kibo Mining ~550, g/t Tanzanian Royalty ~2.7 M 1.2 g/t Kibo Mining ~170,000 2 g/t STAMICO ~1 M 6 g/t (closed March 2013) African Barrick ~16 M 12 g/t April 2015 June

15 Lake Victoria Goldfields AngloGold Ashanti Geita Mines ~23 M 4g/t Kibo Mining Imweru ~550, g/t Tanzanian Royalty Buck Reef ~2.7 M 1.2 g/t African Barrick Nyanzaga (feasibility) ~4.1 M 1.3 g/t Kibo Mining Lubando ~170,000 2 g/t STAMICO Tulawaka ~1 M 6 g/t (closed March 2013) African Barrick Bulyanhulu ~16 M 12 g/t August

16 Lake Victoria Goldfields Mineral licences (90-100% Kibo owned) covering an area of approximately 1,700sq kms, including two exploration projects with defined gold resources located in one of the world s most prospective regions for gold Imweru Drill programme in late 2013 and resource update (2014) established JORC-compliant gold resource estimate of *550,000 ounces independent technical report (Tetratech EBA) has confirmed excellent potential to increase the Imweru resource by follow-on drilling to take it to the stage where a scoping study is warranted Definitive Feasibility Study Underway with Preliminary Economic Assessment Completed in December 2014 (see RNS ) confirming potential for initial mine development of 7-10 years with scope to extend for a further 6 years based on resource expansion Lubando NI compliant resource estimate of approximately *170,000 oz established from drilling by previous operators with potential to expand resource. Tetratech EBA report also identified potential to define further resources in the Imweru area in the near term by drilling on existing targets on adjacent projects at Sheba and Pamba. Other Lake Victoria targets Nine other exploration targets at earlier exploration stage but with promising results from surface sampling surveys from work to date * Kibo s has a 90% attributable interest in these resources August

17 Haneti Project Overview Situated 95 kms North of Tanzania s capital city Dodoma 100% Kibo ownership of 29 minerals rights covering an area of 6,168 sq kms Key target is an 80km long ultramafic belt with grades of up to 13% nickel and 2.33 grams per tonne of platinum and palladium Extensive work to date resulting in Nickel Sulphide and PGM drill targets now scheduled for drilling in 2015/2016 Gold prospectivity confirmed over Londoni- Hombolo-Mosangani trend Newly identified potential for lithium pegmatite and associated elements of niobium and tantalum Recent geophysical interpretation work has identified significant extensions to Nickel Sulphide prospective target rock formation August

18 Morogoro Project Ruvu Nappe Mineral licences and applications (90-100% Kibo owned) covering approximately 1, 400 sq kms) Located in the emerging goldfield of the Morogoro-Dodoma-Handeni region Significant gold bearing structure identified - Ruvu Nappe Initial exploration results produced significant soil and stream gold anomalies One drill target already defined (Ruvu Nappe area) with drilling scheduled as part of next exploration phase Project is now part of a Joint Venture with Metal Tiger Resources Ltd. (RNS ) Exploration recently resumed on project with results of initial soil and pit sampling results confirming gold prospectivity of Ruvu Nappe August

19 Pinewood Project Mantra Resources Nyota (Mkuji River) Uranium discovery sold for $1.16bn in June 2011 to Atomredmetzzoloto. Project in development. Mchukuma Coal Mine Sichaun Hongda invested $3 bn in mine, thermal coal plant and nearby iron ore deposit in September Project in development. Mchukuma Coal Mine Sichaun Hongda invested $3 bn in mine, thermal coal plant and nearby iron ore deposit in September Project in development. August

20 Pinewood Project Overview Mineral rights and applications covering approximately 9,000sq kms (100% Kibo owned subject to vend in agreements on 11 tenements) Pinewood provides exposure to an attractive portfolio of strategic energy (coal & uranium) assets in Tanzania Situated along the Mtwara Development Corridor, where the Tanzanian Government has committed itself to significant infrastructure development, and which has seen recent multi-million dollar investments in coal and uranium exploration The license package covers prospective Karoo sedimentary sequence rock, known to host good tenor uranium deposits, such as the Mkuju River project The Tanzanian Government is supportive of uranium mining recently approved the Mining License of the Mkuju River Mine Recently secured strategic partner in signing 50 /50 JV with Metal Tiger. (see RNS & ). August

21 Investment Proposition Summary Focused development of Tanzanian portfolio utilising in-country knowledge and expertise Securing a strategic partner in the near term and completing Feasibility Studies to drive Mbeya Coal to Power into coal mining, electricity production and significant revenue generation by 2018 Proceed with Definitive Feasibility for Imweru Gold Project, leading to a strategic partnership to develop gold production from Imweru by 2016 Additional growth opportunities from nickel, PGM, gold, lithium and uranium projects providing long term growth pipeline from early through to late stage exploration projects Disparity between extensive and valuable Company interests and current market capitalisation of 13.1m (5 August 2015) to be further closed through partnerships and technical work demonstrating asset values August

22 Information Appendices : Mineral Resource Statements

23 Imweru Gold Imweru Resource Statement- Tetratech EBA February 2014 Area Material Type Classification Cut- off (g/t) Specific Gravity Metric Tonnes (t) Short Tons Gold Grade (g/t) Contained Gold Ounces (troy) Laterite Indicated , , ,000 Central Saprolite Indicated , , ,000 Bedrock Indicated ,895,000 2,089, ,000 Total Indicated ,732,000 3,012, ,000 Laterite Inferred , , ,000 Central Saprolite Inferred ,047,000 1,154, ,000 Bedrock Inferred ,838,000 8,640, ,000 Total Inferred ,569,000 10,548, ,000 East Total Inferred ,653,000 2,925, ,000 Imweru Property Total Indicated ,732,000 3,012, ,000 Inferred ,222,000 13,473, ,000 Combined (inf+ind) ,954,000 16,485, ,000 * Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Central and 25 g/t at Imweru East, the cut-off grade is based on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of cut-off grade. A base case of 0.40 g/t has been selected. ** Classification of Mineral Resources incorporates the terms and definitions from the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) published by the Joint Ore Reserve Committee (JORC) August

24 Lubando Gold Lubando Resource Statement EBA August 2009 TABLE 2 : LUBANDO MINERALRESOURCE SUMMARY BASECASE* Category West Zone East Zone South East Zone Mid East Zone North Total Measured Resource Measured Resource (t) 107,900 4,880 16,900 54, ,150 Grade (g/t) Total Gold (oz) 5, ,340 11,500 Indicated Resource Indicated Resource (t) 280,710 18,330 61, , ,420 Grade (g/t) Total Gold (oz) 14,500 1,300 3,700 13,120 32,600 Inferred Resource Total Resource (t) 1,090,000 65, , ,330 1,900,140 Grade (g/t) Total Gold (oz) 44,550 3,300 22,500 53, ,200 *Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold based on a gold price of US$850/oz and assumed100% metallurgical recovery.cim definitions were followed for Mineral Resources. August

25 Mbeya Coal Mbeya Gemecs April 2012 MBEYA COAL RESOURCE SUMMARY SEAM SEAM THICKNESS NI CLASSIFICATION IN SITU MILLION TONS S Indicated 2.17 S3U 2.04 Indicated 6.92 S3L 2.3 Indicated S Indicated S1U 2.48 Indicated 7.34 S1L 2.92 Indicated 17.4 S Indicated 1.44 Total Indicated Resources S Inferred 1.38 S3U 2.24 Inferred 2.94 S3L 2.27 Inferred 3.86 S Inferred 7.94 S1U 2.05 Inferred 6.5 S1L 3.15 Inferred S Inferred 2.6 Total Inferred Resources TOTAL RESOURCES August

26 Review by qualified persons Imweru and Lubando Information in this announcement that relates to the Imweru mineral resources is taken from the report titled Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons Report dated February 17 th 2014 (the Report ). The Report states a JORC-compliant resource estimate and was prepared for Kibo Mining plc by James Barr P.Geo. and Darryn Hitchcock P.Geo. Senior Geologist and Geologist respectively with TetraTech EBA Ltd. Both Mr. Barr and Mr. Hitchcock are registered as Certified Professional Geologists with Association of Professional Engineers and Geoscientists of British Columbia a recognised professional organisation. Mr Barr as principal author responsible for the Report has experience in the evaluation and reporting of Archaean Gold projects and is a Qualified Person for reporting gold resources to the JORC Standard. He consents to the inclusion in this document of the matters based on his information in the form and context in which they appears. The information in this announcement that relates to the Lubando mineral resources is taken from a report titled, Tanzania Technical Report on the Lubando property, Mwanza, Tanzania dated 31 st August 2009 (the Report ) The Report is NI compliant and was prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining Consultant. Mr. Fier is registered as a Certified Professional Geologist with the American Institute of Professional Geologists, Registration No 10062, and a professional Engineer in British Columbia, Canada Registration No He has extensive experience in the evaluation and reporting of Archaean Gold projects and is a Qualified Person for reporting gold resources to the NI Standard. Mbeya The information in this announcement that relates to the Mbeya coal resource is taken from a report Independent Technical Report for the Rukwa Coal Project, Mbeya Region, United Republic of Tanzania dated 19 th April 2012 by CD van Niekerk Director and Principal Geologist with the firm GEMECS (Pty) Ltd. Mr van Niekerk is a Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP), Registration No /98 and a Fellow Member of the Geological Society of South Africa. He has relevant experience and technical qualifications to be a Qualified Person for reporting coal resources to the NI Standard. Kibo Mining PLC Kibo s Technical Director, Noel O Keeffe has also reviewed the technical reports and the references to them in this presentation. August