Introduction to Brandon Hill Capital. July 2017

Transcription

1 Introduction to Brandon Hill Capital July 2017

2 Brandon Hill Capital Brandon Hill Capital Dedicated natural resources investment bank Highly successful capital raising platform over 370m of equity raised for clients in recent 2 years Global investor base across institutions, sophisticated and retail investors Over 1.3 billion raised in past 10 years Full service offering Broking, Corporate Finance and Research Philosophy To work with companies with strong management teams that have high quality assets in the natural resources sector Support clients throughout the mining life cycle To offer our clients access to capital globally To work alongside our clients to achieve their wider corporate and investment objectives Ethos To Focus on doing only the right deals and doing them well to be the best in our field To develop long term relationships with both corporate and institutional clients Objectives To provide a wide range of financing solutions to our corporate clients To introduce the best possible opportunities to investors 2

3 Services Corporate Broking Capital Raising Corporate Finance Research Providing clients with insight into capital markets conditions Advice on messaging the equity story Raise awareness of the equity story Target new investors Marketing roadshows in Europe and globally The team has raised over 1.3bn for clients in the past ten years Over 370m raised following the launch of Brandon Hill in 2014 Access to capital in: UK and Europe North America Middle East Asia Raise capital for companies listed on the ASX and TSX Private equity Structured finance Alternative debt Convertibles Sector specialist advice Equity capital markets advisory services : IPO s M&A UK Takeover Code Dual listings from the ASX and TSX Open offers Strategic corporate finance advice and projects Our highly rated research team provide insightful research to our investor universe and the wider market Educate investors and explain the investment thesis Provide focused commentary on clients news Valuation guidance 3

4 UK Listed Equity distribution Institutional investors Hedge funds Retail investors Examples JP Morgan Artemis Blackrock Fidelity M&G Majadie Asset Management Miton Toscafund Capital GLG Odey Asset Management Lansdowne Partners Polygon CQS Shard Capital Beaufort Securities European Wealth Walker Cripps Sanderson Optiva Securities SVS Current Sector view Appetite is returning following strong returns across commodity prices and equities in 2016 Resource companies are leading performers across equities indices Generally favourable outlook for commodities Renewed interest in meeting new companies and ideas Funds inflow into the buy-side IPO market continues to be difficult Capital raising conditions continues to be highly selective Investor focus Project is de-risked both geologically and more widely (e.g. country risk) Clear pathway to development Capex not disproportionate to company size (i.e. equity dilution) Favourable position on the cost curve Attractive project returns Management expertise and experience Limited commodity price risk Value versus peer group Liquidity in the equity Market cap hurdles Clear equity catalysts Our role Continuous dialogue with institutions Build high quality register to support business plan development Actively manage the shareholder register to increase liquidity Provide high quality research to communicate the equity story Regular non deal roadshows to develop equity story Advice on capital raising structures and conditions to raise capital Provide accurate gauge of market conditions Feedback investor thoughts General IR advice Access global investor community 4

5 Capital Raises ( m) Phoenix Global Mining (IPO) 4.6 June 2017 Phoenix Global Mining (private round) 0.85 March 2017 KEFI Minerals 5.6 February 2017 Eco Atlantic Oil & Gas (TSX to AIM dual listing) 5.1 January 2017 Tlou Energy 1.8 August 2016 San Leon Energy August 2016 KEFI Minerals 3.8 July 2016 Lansdowne Oil & Gas 2.1 June 2016 Fox Marble 2.0 May 2016 Mariana Resources 6.0 April 2016 San Leon Energy 45.0 February 2016 Tlou Energy (ASX to AIM dual listing) 2.0 November 2015 KEFI Minerals 2.9 November 2015 Mariana Resources 1.8 October 2015 Red Emperor 2.7 June 2015 Atalaya Mining (formerly EMED) 65.4 June 2015 KEFI Minerals 2.9 May 2015 San Leon Energy 29.0 May

6 Transactions & Mandates 2017 Transactions Brandon Hill has successfully listed two companies on AIM in 2017 to date In February we completed the dual listing of Eco Atlantic, a company with oil & gas exploration assets in Guyana adjacent to some world class discoveries by Exxon. We raised 5.1m as part of the transaction which was supported by leading institutions In March we completed a private raise of 850,000 for Phoenix Global Mining to fund their maiden JORC resource and transaction costs for the IPO. In June the Company completed their IPO on AIM and raised a further 4.6m to develop their copper project in Idaho, USA. New Clients Brandon Hill has won a number of new mandates in 2017 across the natural resources sector including: 6

7 Investor Universe 7

8 Alternative Capital Private Equity Driven by anomalous valuations in public markets and financing private companies that are not ready to access equity markets Focused on advanced stage projects Substantial due diligence undertaken Typically require >20% of project/company Industrial Partners Large corporates are currently reviewing junior companies to exploit cyclical low valuations Typically enter into JV s or farm-ins Generally opportunistic Trading Houses Focused on pre-financing projects near to production Typically require production within months Entrepreneurial and will accommodate risk Other Asian and Middle Eastern strategic funds Sovereign wealth groups Private wealth groups looking at secured convertible notes Family offices Debt In a market where traditional lenders have scaled back their lending businesses our alternative debt finance team have an extensive network of natural resource debt providers. Our team originates, structures and executes a range of financings for both public and private corporate clients on a global basis. We work on various financing structures such as: Asset Based Lending Corporate Lending Supplier Finance Trade Finance Our debt distribution covers a range of investors: Credit Funds Natural Resources Funds Investment Bank Principal Finance Groups Sovereign Funds Family Offices We have a global reach however our strongest distribution networks are located in the UK, USA, Switzerland, France, Middle East and China 8

9 Research Institutional coverage Important source of information and analysis to institutional and sophisticated investors Provide readily understandable analysis for the investment community that breaks through the technical aspects to deliver an investment story Led by highly specialist analysts that have covered their respective sectors over the course of their careers Regular contact with leading fund managers Specialist team The firm is driven by its deep sector knowledge The research team comprises highly experienced analysts with substantial experience in their respective sectors Highly respected by the investment community Distribution Over 500 institutional accounts receive our research Over 17,000 points of access in total Made available on Bloomberg and Thompson platforms Circulated to UK PCBs Other discrete platforms for alternative capital sources 9

10 Case Study - San Leon Energy Funding corporate acquisitions Background Oil & Gas in Nigeria, Poland, Albania and Morocco Market cap of ~ 200m Total funds raised circa 300m Summary Acted as broker to the IPO in 2010 and raised 6m Raised a further 63.2m in secondary fundraises during 2010 Acted as Financial Adviser to San Leon during its takeover of Aurelian Oil & Gas (for 62m) in January 2013 In October 2013 we raised 31m In May 2015 we raised 29m In August 2016 we completed a raise of 170.2m to fund the acquisition of onshore assets in Nigeria by way of reverse takeover Notable investors introduced by Brandon Hill include Capital Group, Ingalls & Snyder, Toscafund, Standard Life, Vitol, Kingsbrook Partners and North of South amongst others during the various capital raises Capital Raised m Total 10

11 Case Study - Mariana Resources Funding juniors in exploration and development Background Gold/Copper in Turkey, Argentina and Peru Market cap of ~ 100m Total funds raised ~ 13m since 2013 Summary Share Price (in Pence) Brandon Hill was appointed broker to Mariana in April 2013 We have led each fund raise raising over ~ 13m over 5 separate placings during this period 0 05/23/ /16/ /09/ /06/ /04/2017 Mariana had successful exploration results at their Hot Maden project in Turkey in In October 2015, Mariana attracted its first institutional investors to fund additional drilling at Hot Maden. European and North American institutions such as Gold 2000, Resource Capital Funds and Sprott joined the share register. More recently in March 2016, Sandstorm and other select Swiss specialist funds were added to the share register. In June 2017 Mariana was taken over by Sandstorm following a bid of 109p per share Brandon Hill has proven capability of assisting juniors through the development curve by sourcing equity globally 11

12 Case Study - Eco Atlantic AIM dual listing Background Oil & Gas in in Guyana, South America and Namibia, Africa Eco has some notable blocks in the same vicinity as the world class discoveries made by Exxon in Guyana. They are in a JV will Tullow. Market cap of ~ 22m Dual listed on AIM from TSX in January 2017 Summary Brandon Hill originally mandated to raise up to 3m Background to dual listing Portfolio widely understood by London market Unique leverage to Guyana in Londonvia Eco Limited liquidity on TSX pre-marketing work indicated appetite for the company to list in London Completed over subscribed placing of 5m to sophisticated and institutional shareholders London is now the prime driver of liquidity and share price 12

13 Case Study - Atalaya Mining Funding a company into production Background Formerly called EMED mining Copper in Spain Market cap of ~ 180m Total funds raised 125.6m since 2007 Share price (in pence) /01/ /04/ /07/ /10/ /01/2017 Summary Brandon Hill raised over 125m the company since 2008 In June 2015 we closed an equity placing for c. 65m for the company to commence production at the Rio Tinto project in Spain Brandon Hill introduced a number of key institutional investor to the register that supported the company during development through to commissioning. Notable investors introduced include Majadie Asset Management, Odey Asset Management, Audley Capital and Standard Life. Brandon Hill no longer acts as retained broker for the company 13

14 Team Sales Oliver Stansfield Pierre Iseux Alex Walker Arron Smyth Chief Executive Officer & Head of Equity Sales Managing Director Investment Banking Equity Sales Sales & Origination Joined in 2004 Co-established the equity sales team at Fox-Davies Capital Appointed Chief Executive Officer in September 2014 Equity sales director with over 12 years relationships with leading equity funds in the resource sector, hedge funds and strategic investors Raised more than $1 billion for natural resource clients in 12 years Joined in August 2014 Over 20 years investment banking experience Formerly with Credit Suisse First Boston, Donald Lufkin & Jenrette, Bank of America and Commerzbank Extensive experience in equity and bond origination Strong relationships with hedge funds and wealth managers in London and Geneva Strong relationships with Middle East family offices and sovereign wealth funds Joined in September 2014 Commenced career at Patersons Securities in Perth, Australia in 2007 Ran the London branch for Patersons from Focused on resources sector throughout career Recently awarded M.Sc Mineral Economics, Curtin University of Technology Strong relationships with equity funds, specialist funds, private equity, commodity trading houses and structured financing groups Over 15 years financial services experience Former owner, Director and Investment Manager of UK Asset Management business Experienced in physical commodities trading, including trade finance Experienced in debt and equity markets Strong relationships with pension funds, private client funds, family offices, absolute return funds and alternative Investment managers Tel: Tel: Tel: Tel:

15 Team Research Peter Rose William Arnstein Head of Mining Head of Oil and Gas Joined in May 2007 Over 20 years experience in mining equity research Previously a senior mining analyst at Deutsche Bank, Sydney with a focus on precious metals Commenced career with Pru Bache and James Capel in Sydney Trained as metallurgist and has spent 16 years in industry prior to entering banking Industry experience via De Beers and Ranger Uranium Joined in September 2014 CFA Commenced his career as sell-side analyst with Dresdner Kleinwort before joining Jefferies Founding member of the Finncap Oil & Gas team before becoming its Head of Oil & Gas Close relationships with corporates globally Strong relationship with specialist oil & gas funds Awarded No.1 stockpicker for the European energy sector in the FT/Starmine Awards in 2010 Member of the Institute of Mining & Metallurgy and a Chartered Engineer Tel: peter.rose@brandonhillcapital.com Tel: william.arnstein@brandonhillcapital.com 15

16 Team Corporate Finance Jonathan Evans Robert Beenstock Wei Jiao Joined in 2010 Director, Corporate Finance FCA chartered accountant Specialist corporate finance advice to natural resource companies on AIM, ASX and TSX General ECM advisory - IPO s and capital raisings City Code advice Standard listing advisory Previously a Nomad for AIM companies Director, Corporate Finance Joined in 2014 FCA chartered accountant 15 years advising small-mid cap companies General ECM advisory - IPO s and capital raisings City Code advice Private equity advisory Previously a Nomad for AIM Companies Director, Corporate Finance & Chinese Distribution Joined in 2013 CFA MA Finance Mandarin speaker Focus on accessing strategic investors and equity investors across Asia Strong network with corporate groups in China seeking JV s, farm ins etc. Previously worked at City Capital providing advice to a range of companies Tel: jonathan.evans@brandonhillcapital.com Tel: robert.beenstock@brandonhillcapital.com Tel: wei.jiao@brandonhillcapital.com 16

17 Contact Brandon Hill Capital Limited 1 Tudor Street London EC4Y 0AH Telephone: Fax: