SepFluor : right assets right products right time. Alan Smith, Chief Executive Officer Fluorspar 2012 Vancouver October 2012

Transcription

1 SepFluor : right assets right products right time Alan Smith, Chief Executive Officer Fluorspar 2012 Vancouver October 2012

2 Disclaimer The information contained in this presentation or subsequently provided to the recipient of this presentation whether orally or in writing by or on behalf of SepFluor or its directors, officers, employees, agents, advisors or consultantss ("Information") is provided to the recipients on the terms and conditions set out in this notice. The presentation contains reference to certain intentions, expectations and plans of SepFluor. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of SepFluor may be influenced by a number of factors, many of which are outside the control of SepFluor. No representation or warranty, express or implied, is made by SepFluor, its directors, officers, employees, agents, advisers or consultantss that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. This presentation does not purport to contain all the information that any existing or prospective investor may require. It is not intended to be a complete or accurate statement of material information. In all cases, before acting in reliance on any information, recipients should conduct their own investigation and analysis in relation to the business opportunity and should check the accuracy, reliability and completeness of the Information and obtain independent and specific advice from appropriate professional advisers. Recipients should not treat the contents of this presentation as advice relating to legal, taxation or investment matters and should consult their own advisers. SepFluor, its directors, officers, employees, agents, advisers and consultants take no responsibility for the contents of the presentation, and makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. SepFluor, its directors, officers, employees, agents, advisers or consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from the presentation, except liability under statute that cannot be excluded. If you reside in a jurisdiction which disallows you to participate in any capital-raising process or investment in SepFluor, you may not read or rely on this information or participate in any such activity or process. 2

3 Agenda About SepFluor Our projects profiled About fluorspar: local and global trends 3

4 About SepFluor: summary Privately held company shareholder register includes more than 400 shareholders Primary mineral asset is the Nokeng Fluorspar Project in Gauteng, South Africa located ±80km north of Pretoria planned production of between tpa to tpa 97.2% fluorspar by last quarter 2014 Additional fluorspar projects in exploration, development stages Wallmansthal: mining right application submitted Strong management team proven project, production management capability significant previous fluorspar experience World-class fluorochemical beneficiation project and fluorine hub planned 4

5 About SepFluor: corporate structure Sephaku Fluoride Ltd Ingovax (Pty) Ltd [Nokeng Investments] Ixoweb (P Pty) Ltd [SepChem Inv vestments] Other deposits Nokeng Fluorspar Mine (Pty) Ltd Epibol (Pty) Ltd [SepChem Industrial] HF and AlF 3 production Others Other Wallmansthal Welgelegen/ Welgevonden Kruidfontein 5

6 About SepFluor: management team Lelau Mohuba MB ChB (Natal) Non-executive Chairman Retired medical practitioner. Joined Boynton Platinum in 2003 as business development director; assisted with successful listings on TSX, AIM in Co-founder of the Sephaku Group; currently serves as CEO for Sephaku Holdings, and as Chairperson for Incubex Minerals and Taung Gold. Alan Smith BSc Mining Eng (Wits) Chief Executive Officer Ex Anglo American and De Beers; in charge of AngloGold Ashanti SA operations; later exposure to the junior industry: CEO of NDC, LDC and Kivu Resources. Strong managerial and technical experience in broad spectrum of mining types and range of commodities. Neil Crafford-Lazarus CA (SA) Chief Financial Officer Chartered accountant with 25 years mining finance experience. Currently CFO of Sephaku Holdings. Previous board positions include CFO of Platmin, FD of Xstrata SA. Senior managerial positions in finance, corporate finance and tax at Gencor (BHP Billiton), Anglo American. Loek van den Heever Nat Higher Dip: Mechanical Engineering, GCC, B Com (UNISA) Mechanical engineer with 30 years experience in the mining sector predominantly fluorspar. Previous positions with Transvaal Mining and Finance, IMP Buffalo Fluorspar, Witkop Fluorspar and Sasol. Technical Manager 6

7 About SepFluor: management team, cont d Jan Wessels B Juris (North West), LLB (UNISA) Corporate Development David Twist BSc Hons (Geology) PhD (Geology) Non-executive Director Rudolph de Bruin B Com (University of the Free State - cum laude), LLB (Rand Afrikaans University cum laude) Non-executive Director Founding partner, Truter and Wessels attorneys in 1981; senior member, 1987 to On amalgamation in 2000 became head, commercial department, Couzyn, Hertzog, Horak and Wessels Incorporated; remains a consultant. Joined the Sephaku Group in Founder member of Platmin, CEO until 2006; subsequently focused on new mineral exploration opportunities with Sephaku Holdings. Previously with Impala Platinum and involved in Bushveld Complex research at University of Pretoria; member of South African Council of Natural Scientific Professions, Geological Society of London, Society of Economic Geologists (US). Practised as an advocate at the Pretoria Bar from 1977 to Subsequently has focused on finding, acquiring and developing mineral exploration and mining projects in various African countries. Founder member of the Platmin group and cofounded the Sephaku group. Rose Shibe Matjiu MA Medical Social Work (Pretoria), BA Social Work (University of the North), Certificate in Mining and Minerals (Wits) Social Development Manager Felihlee Dumisa BSc Chem Eng (UCT), GDE Mining (Wits), MBL (UNISA) Project Manager, Nokeng Sabatha Mahote B.Sc Chem Eng (UCT), MBA (GIBS) Project Manager, SepChem Professional social worker with extensive knowledge of and experience in community-related work and corporate social investment in both public and private sectors. Previously MD, SM2 Social and Training Consultants; Provincial Director, Deaf Federation of South Africa; Director, Boynton Investments (Pty) Ltd; involved in establishment of Disability Desk, Office of the President. Member of SA Women in Mining, NAFCOC, Business Women s Association. Fourteen years working experience, several in senior project management positions. Began career with AngloGold Ashanti, worked subsequently for De Beers, RSV MISYM t/a Kenyuka, Paradigm Project Management (PPM). At PPM, managed the process to appoint EPCM consultant for Nokeng and SepChem. Professional engineer, registered with the Engineering Council of South Africa. Began career with Anglovaal. Subsequently moved to senior appointments at Sasol, De Beers and Metorex. Most recently an independent consultant. While at Metorex, oversaw the Alfluorco Project (HF, H 2 SO 4, AIF 3 ). Fluorspar 2012, Vancouver October

8 Our projects: Nokeng Mine High-quality adjacent haematite-fluorspar deposits in Gauteng: Plattekop deposit 2.8Mt measured mineral resourcee estimate 42.4% CaF 2 grade Outwash Fan deposit 8.2Mt measured mineral resource estimate 24.6% CaF 2 grade Third deposit identified (Wiltin), being explored Planned production: tpa ROM production high grade, low stripping ratios low cost of production ($100/t initial years) Plattekop deposit Wiltin deposit Outwash Fan deposit 8

9 Our projects: Wallmansthal 5Mt high grade (+47% CaF 2 ) deposit 11 historical holes drilled by General Mining Corporation (now BHP Billiton) Resource estimate 5Mt to ±70m depth Exploration campaign designed to confirm the existing resource to SAMREC/JORC standards Exploration campaign comprising 14 drill holes, including: two twin holes to test historical data one hole drilled to +180m depth confirming that deposit continues to at least this depth Application for mining right submitted 9

10 Our projects: Wallmansthal, cont d Fluoritic apatite Overburden Chlorite (internal waste) Felsite (internal waste) TOPOGRAPHY Topography. GRD ROCK CODES PAT LABEL DESCRIPTION Code OV Overburden FA Fluoritic apatite FEL Felsite CH Chlorite rock SECTION SPECS: REF. PT. E, N m m EXTENTS 136.3m 83.99m SECTION TOP, BOT 1 178m 1 094m TOLERANCE +/ m VERTICAL EXAG

11 Our projects: Wallmansthal cont d Fluoritic apatite Felsite (internal waste) Chlorite (internal waste) TOPOGRAPHY Topography. GRD ROCK CODES PAT LABEL DESCRIPTION Code FA Fluoritic apatite FECAF Felspar, chlorite, apatite and fluorite FEL Felsite CH Chlorite rock FECH Felsitic and chloritic rock FACH Chloritic and fluorapatite FEFA Felsitic and fluorapatite rock SECTION SPECS: REF. PT. E, N m m EXTENTS 94.73m 90.48m SECTION TOP, BOT 1 174m 1 084m TOLERANCE +/ m 11

12 Our projects: Wallmansthal cont d Overburden Chlorite (internal waste) Felsite (internal waste) Fluoritic apatite TOPOGRAPHY Topography. GRD ROCK CODES PAT LABEL DESCRIPTION Code OV Overburden FA Fluoritic apatite FECAF Felspar, chlorite, apatite and fluorite CRP Soft chlorite rock with pyrite FEL Felsite CH Chlorite rock FECH Felsitic and chloritic rock FACH Chloritic and fluorapatite FEFA Felsitic and fluorapatite rock SECTION SPECS: REF. PT. E, N m m EXTENTS 192.4m 204.2m SECTION TOP, BOT 1 185m 981.2m TOLERANCE +/- 9.06m VERTICAL EXAG

13 Our projects: Wallmansthal cont d Wallmansthal is a 100% owned subsidiary of SepFluor Wallmansthal CaF 2 % At least 5Mt in the measured and indicated category to 70m depth Significant increase to the estimated tonnages expected High grade deposit (47.7%CaF 2 in situ), but with P 2 O 5 challenge Deposit open in depth, with grades that should support underground mining after the open pit reserves are exhausted Wallmansthal will be the next greenfield fluorspar mine for SepFluor Production anticipated by 2017 or

14 Our projects: other exploration areas Deposit Ownership (%) Feed grade CaF 2 (%) Deposit potential Mining method Other minerals Welgelegen/ Welgevonden Prospecting Underground incline shaft Tin/copper Kruidfontein Mt 30Mt Open pit Nokeng: Wiltin Prospecting Open pit 14

15 Our projects: the case for beneficiation Multiple downstream levels and value addition Fluorspar Hydrogen fluoride Fluorine Fluorochemical products 45c/kg US$2/kg AHF = US$3/kg US$15/kg +US$30/kg Economic fundamentals support move to downstream beneficiation 15

16 Our projects: the case for beneficiation, cont d South African Government fluorspar beneficiation imperative stated intent to support fluorochemical hub initiative drive towards development of nuclear power stations S12I taxation rebate agreed for the chemical plant Southern Africa consumes ± tpa AlF₃ (currently all imported) South Africa s potential increase in HF demand of tpa Opportunity to grow South Africa and regional economies 16

17 Our projects: Ekandustria beneficiation Existing industrial site with available expansion potential identified (Ekandustria, Bronkhorstspruit) 52km from Nokeng Mine Existing Sasol nitrate plant Fluorochemical beneficiation hub Negotiations to secure this site for HF and AlF 3 production facility are well advanced lease under negotiation with local authorities Existing industrial node Ideal location for expansion into a fluorochemical hub 17

18 Our projects: product flow diagram 18

19 Our projects: timeline Nokeng Mine and concentrator Mining licence Financing debt and equity R920m ($116) Detailed design Construction starting Q Production Granted 6 months 3 months 18 months Q Ekandustria beneficiation Complete DFS MHI licence Detailed design Financing R1 206m ($150m) debt and equity Construction starting Q Production Q months 6 months 15 months Q

20 Our projects: value curve 20

21 About fluorspar: the global market Fluorspar global market value: ±$2.0 billion Global fluorspar demand outlook: > 6Mtpa by 2015 Multiple downstream levels providing significant value uplift Downstream market value: $112 billion Leading global producers: China, followed by Mexico ±80% of total production combined Chinese global market share decreasing since 2007 higher export taxes imposed to protect reserves for domestic consumptionn Largest fluorspar reserves globally: South Africa Largest global consumers: China, Europe (± ±20%), India, North America 21

22 About fluorspar: South Africa SA production t t SepFluor production target from Nokeng: tpa from Plattekop reducing to tpa from Outwash Fan (production year six) Current South African export market primarily Europe for hydrogen fluoride beneficiation and production of aluminium fluoride Downstream products are re-imported at high cost (aluminium fluoride) Current SA industry players Nokeng SepFluor, SA Vergenoeg Minersa, Spain Witkop Fluormin, UK Buffalo Fluormin, UK Doornhoek ENRC, Khazakstan 22

23 About fluorspar: global reserves (Mt) Other Kenya Namibia Spain Mongolia China Mexico South Africa Source: USGS 23

24 SepFluor: next steps Conclude funding arrangements interest from overseas companies negotiations with various parties under way Nedbank appointed as lead banker for debt and equity funding Finalise supplier arrangements sulphuric acid (H 2 SO 4 ) aluminium hydroxide (AI(HO) 3 ) Finalise product off take arrangements hydrogen fluoride (HF) aluminium fluoride (AIF 3 ) with local and offshore smelters Appoint technical partners Appoint EPCM partners Implement mine/concentrator project immediately followed by chemical plant 24

25 Committed Partnership A case for co-existence Dinokeng Place of Rivers In the malaria free bush veld offering a Big 5 experience. First free roaming lion and elephant in over 100 years in Gauteng Province. Eco-tourism reserve in Partnership with the local community

26 Committed Partnership A case for co-existence Attractions World class 5 star lodges to self catering camping Game drives (day and night) Sunset boat cruises (fishing) Guided bush walks and picnics Horse riding, cultural activities, ballooning

27 Committed Partnership A case for co-existence Accommodation 16 Self Catering Lodges and Cottages 8 Catered Lodges (including Bed + Breakfast offerings) 2 Caravan and camping sites Adventure camp

28 Committed Partnership A case for co-existence Location Around 30 minutes north of Pretoria on N1 Highway, 1 hour from OR Tambo International airport. In the Tshwane Metro municipal area Bordering Limpopo and Mpumalanga Provinces Wallmansthal Nokeng

29 Contact details Registered address Riverside Office Park Hennops House First Floor 1303 Heuwel Avenue Centurion 0157 Tel Fax Website 29