OTHER SUMMARY POWERING SUB- SAHARAN AFRICA. Q1 Corporate Presentation 2018

Transcription

1 OVERVIEW MCPP MABESEKWA POWERING SUB- SAHARAN AFRICA Q1 Corporate Presentation 2018

2 OVERVIEW MCPP MABESEKWA 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. 2

3 OVERVIEW MCPP MABESEKWA OVERVIEW Multi asset international energy development company with current assets in Tanzania and Botswana Flagship asset is the Mbeya Coal to Power Project ( MCPP ) - capitalising on the acute power shortage in Tanzania consists of: 120 Mt Mbeya Coal Mine 300MW mine- mouth power station Memorandum of Understanding signed with Tanzanian Government relating to co- operation on the 300MW MCPP. Agreement to acquire 85% interest in the Mabesekwa Coal Independent Power Project (MCIPP) in Botswana Strong established relationships with the government due to the critical importance of the primary project Highly experienced management team with proven track record of bringing projects into production Support from world class international corporates, including GE, and from financial partners Other assets include Haneti Project and a 57% stake in Katoro Gold PLC MARKET OPPORTUNITY DEFINED STRATEGY INTERNATIONAL PARTNERS REVENUE VISIBILITY PROVEN EXPERIENCE 3

4 OVERVIEW MCPP MABESEKWA SNAPSHOT SHARE PRICE 5.7 PENCE KEY DATA Stock Exchanges MARKET CAP MILLION As at 27 February 2018 AIM: KIBO JSE: KBO Shares in Issue 412,901,424 Options and Warrants 24,399,333 Fully Diluted 437,300, month share price range p SHAREPRICE PERFORMANCE DIRECTORS AND OTHER KEY SHAREHOLDERS Shareholder Name # of shares % Sanderson Capital Partners Ltd & Related Parties 26,777, % Louis Coetzee (& related parties) 8,065, % Andrew Lianos 7,588, % Sun Mining 5,923, % Tinus Maree 2,934, % Noel O'Keeffe 3,591, % Christian Schaffalitzky 2,119, % Wenzel Kerremans 376, % Louis Scheepers 3,009, % Total 60,387, % 4

5 OVERVIEW MCPP MABESEKWA STRATEGY FOCUS ON RAPIDLY DEVELOPING VALUE & BUILDING A PORTFOLIO OF NEAR TERM ENERGY ASSETS IN SUB- SAHARAN AFRICA DEVELOPMENT F INALISE PARTNERS DEVELOPMENT FOR FUNDING MCPP & PLAN PRODUCTION A CHIEVE EARLY CONSTRUCTION STATUS WITH A CLEAR VIEW TO PRODUCTION IN THE SHORT TERM FOR MCPP AND MCIPP IDENTIFICATION M AXIMISE EXPANSION ON OPPORTUNITIES IDENTIFYING BY NEW ENERGY ASSETS AS DEMONSTRATED MCIPP BY VALUE CAPITALISE AND BUILD VALUE STAKEHOLDER VALUE 5

6 OVERVIEW MCPP MABESEKWA BOARD & MANAGEMENT A TEAM TO DELIVER VALUE THROUGHKNOWLEGE AND INNOVATION Christian Schaffalitzky Non-Executive Chairman Louis Coetzee Chief Executive Officer Andrew Lianos Chief Financial Officer Tinus Maree Non-Executive Director Wenzel Kerremans Non-Executive Director Noel O Keeffe Technical Director Christian is a geologist with over 35 years experience in mineral exploration and mining finance. Managing Director of AIM-listed Eurasia Mining plc Louis is an entrepreneur with 25 years experience in business development, promotion and financing. He was Vice-President of Business Development with TSX listed Great Basin Gold Limited between and Chairman and CEO of ASX listed East Africa Resources from He is also Executive Chairman at Katoro Gold PLC (AIM: KAT). Andrew is a chartered accountant with over 25 years experience across a range of senior roles. He s a cofounder and director of River Group - an International corporate finance house. Tinus is a lawyer with extensive public company directorship experience. He has a successful record in the development and sale of mineral projects in Tanzania. Tinus is a Director of Katoro Gold PLC (AIM: KAT). Wenzel is a lawyer with over 25 years of legal experience in mining, banking and project finance. He also benefits from extensive experience in advising clients on mining investment in Africa. Noel is a geologist with over 25 years experience in mineral exploration. Before joining Kibo he was a Exploration Manager of AIM-listedOrmonde Mining plc in Tanzania. 6

7 OVERVIEW MCPP MABESEKWA URGENT NEED FOR POWER RAPIDLY GROWING MARKET ECONOMY WITH AN ACUTE POWER DEFICIT 60% of Africa s population are without Electricity 600 million people in sub-saharan Africa live without power Power shortages prevent Africa s annual growth GDP increasing by at least 2% Manufacturers lose an average of 56 days of production a year due to power shortages 620 million Africans rely on firewood, kerosene and charcoal for cooking, heating and lighting 600,000 Africans, mainly women and children, die prematurely every year due to illnesses caused by indoor air pollution caused by firewood, kerosene and charcoal Hydroelectricity capacity can t be depended upon due to recurrent droughts on the continent. 7

8 OVERVIEW MCPP MABESEKWA PORTFOLIO DIVERSE PORTFOLIO OF ADVANCED ENERGY AND MINING PROJECTS IN TANZANIA AND BOTSWANA MCPP 97.5% interest 120Mt Coal Resource 300MW mine- mouth power station MABESEKWA Agreement to acquire 85% interest 300Mt subset of the current insitu 777,33Mt coal Mineral Resource 8

9 OVERVIEW MCPP MABESEKWA TANZANIA DEMOCRATICALLY ELECTED GOVERNMENT FOCUSED ON DEVELOPING THE ECONOMY OVERVIEW Politically stable country with government focussed on growth Strong government support for power capacity development Established tax and regulatory regime for natural resources investors Expedited and simplified handling of investments proposals driven by growing demand for power Technical staff trained in various mining disciplines, abundant labour to support large projects Preferred FDI destination in East-Africa with an inflow of USD 1.36 billion in 2016 Power demand is 1,500-1,800MW and expected to grow 10-15% annually MCPP is seen as a priority project that s closely aligned to national development priorities National installed power generation capacity of 1,500MW with only 780MW operational Dodoma TANZANIA 9

10 OVERVIEW MCPP MABESEKWA MBEYA COAL TO POWER PROJECT A DEVELOPMENT PROJECT OF NATIONAL IMPORTANCE WITH STRONG GOVERNMENT BACKING MBEYA COAL MINE MBEYA POWER PLANT IN ORDER TO MEET THE NATION S 2025 GOAL OF ESTABLISHING A MIDDLE CLASS SOCIETY, THE GOVERNMENT MUST WORK IN CLOSE COOPERATION WITH PROJECTS SUCH AS THE MCPP MINISTER OF ENERGY & MINERALS 10

11 OVERVIEW MCPP MABESEKWA MBEYA COAL MINE DEFINED NI THERMAL COAL RESOURCE IS A STANDALONE PROJECT AS WELL AS A COMPONENT OF MCPP Mt Coal Resource: 20.9Mt of Measured Resource 88.6Mt of Indicated Resource 11.3Mt of Inferred Resource Optimised detailed mine design with years Life of Mine to support the Power Plant life 91% of the resource qualifies for inclusion in ultimate reserve statement Coal exceeds standard technical requirements of the power plant Three new Prospecting Licences in the immediate vicinity secure long term fuel supply Strategic geographic location benefiting from infrastructure and abundant workforce 11

12 OVERVIEW MCPP MABESEKWA MINING FEASIBILITY STUDY IRR of 69.2% Peak funding requirement of USD17M All in cost margin of 39% 2.4 year payback period Power Station coal requirements reduced by 23% enabling significant environmental and cost benefits Modified terrace mining confirmed as the most accurate and cost effective for the coal mine Coal Resource CLASS IN SITU Megatons No Discount % GEOLOGICAL DISCOUNT IN SITU Megatons with Discount RAW QUALITIES (AIR DRIED) RD ASH IM VM CV TS gm/cc % % % % % Measured 22,004-5% 20, Indicated 98,446-10% 88, Inferred % GRAND TOTAL 133, ,

13 OVERVIEW MCPP MABESEKWA MBEYA COAL TO POWER STATION PROJECT THE GENERAL ELECTRIC INNOVATION AWARD WINNING PROJECT IS FIRST OF ITS KIND CRITICAL TO TANZANIA S SOCIO- ECONOMIC DEVELOPMENT 300MW (2x150MW) mine mouth coal fired power station, with a potential to expand the plant to 1000MW Powered by fuel from the Mbeya Coal Mine Strategically located close to Mtwara Development Corridor earmarked for rapid socio economic development by Tanzanian Government Established infrastructure with vast water supply, extensive road and rail, national grid 20km away and 70km from southern regional capital Mbeya Substantial support amongst community and government at local, regional and ministerial level Economic and industrial catalyst for the local area MOU on Power Purchase Agreement (PPA) signed with Tanzanian Government 13

14 OVERVIEW MCPP MABESEKWA STRONG PARTNERS World Class Consultants Critical Commercial Arrangements Power Definitive Feasibility Study FinancialAdvisor Legal Advisers to MCPP General Electric Equipment Technology & Services EPC Contractor Environmental Impact Assessment Power Purchase Agreement Mining Definitive Feasibility Study 14

15 OVERVIEW MCPP MABESEKWA MINIMISED ENVIRONMENTAL IMPACT A DEVELOPMENT PROJECT OF NATIONAL IMPORTANCE WITH STRONG GOVERNMENT BACKING Emissions comparable to gas-fired plant Plant has been designed as carbon capture ready Coal will be extracted through mechanized surface mining and free digging - no drilling or blasting necessary Water for the power plant will come from dewatering the coal mine After some de-stoning, the coal will be fed directly to the station No washing (plant) or crushing necessary Lime residue in ash will neutralise the acid No discard coal as residue ash will be returned to the pit as part of the backfill 15 15

16 OVERVIEW MCPP MABESEKWA POWER FEASIBILITY STUDY Base case layout (Circulating Fluidised Bed boiler technology/ 2X150MW units) confirmed as optimal design DPFS annual power output target of 1,840GWh & average coal consumption of 1,5Mt per year confirmed Total estimated EPC project cost well below cost estimate stated in PPFS Provision for near term expansion of the power station to at least 600MW Parameter Instantaneous performance Units Preferred Option 2x150MW, CFB, wetcooling Net power generated GWh/a 1,839 Coalconsumption t/y 1,497,432 Limestone consumption t/y 110,359 Water consumption t/y 4,273,207 Solid waste incl. ash t/y 679,306 DPFS Definitive Power Feasibility Study PPFS Power Pre Feasibility Study 16

17 OVERVIEW MCPP MABESEKWA KEY OUTCOMES OF THE INTEGRATED BANKABLE FEASIBILITY STUDY Total Capital Requirements reduced by 21.1% from original estimate in the Pre-Feasibility Study Debt pay-back period 11 to 12 years Indicative MCPP total revenues of approximately US$7.5 to US$8.5 billion over assumed 25 year mine life Indicative post tax Equity IRR between 21% and 22%, an increase of 11% on the indicative IPFS Post tax Project IRR ranging between 14.7% & 16% MCPP can be constructed and commissioned within 36 months 17

18 OVERVIEW MCPP MABESEKWA KEY DEVELOPMENTS DELIVERED FROM 2014 SINCE 2014 SIGNIFICANT MILESTONES HAVE BEEN ACHIEVED AND US$25M INVESTED ACHIEVMENTS PROVIDE PLATFORM FOR FINCANCING AND REDUCTION IN RISK PROFILE 18

19 OVERVIEW MCPP MABESEKWA VALUE TRIGGERS Agenda and timeline for negotiation of independent agreements/approvals, enabling MCPP progression, agreed with the Tanzanian Government January 2018 January 2018 Reconfirmed support from the Tanzanian Government to expedite MCPP development following recent policy and structural changes at Ministry of Energy and TANESCO PPA with Tanesco completed End of Q H2 Financial Closure 19

20 OVERVIEW MCPP MABESEKWA BOTSWANA ESTBALISHED GOVERNMENT FOCUSED ON PROMOTING INVESTMENT AND ENCOURAGING DEVLOPMENT OVERVIEW Peaceful and Stable country with a government emphasis on transparency Establishing as a centre for innovation and investment in Africa Low taxes and no foreign exchange controls or restrictions on business Consistent government investment in core infrastructure Well educated and literate workforce with no labour tensions Ranked as the world s second most attractive investment location by New York University s Altman s Baseline Profitability Index BOTSWANA 20

21 OVERVIEW MCPP MABESEKWA MABESEKWA COAL INDEPENDENT POWER PROJECT COAL MINERAL RESOURCE WITH POTENTIAL OF ADJACENT POWER PROJECT MEIPP is developed to supply electricity to South Africa under the South African Coal Baseload IPP Programme for Cross-Border Projects. Environmental Impact Assessment for both mine and the power station are complete Water and land use permits and environmental certification in place at the Project Previous studies include a Pre-Feasibility Study on the coal mine and a Scoping Study on the power plant and Transmission study Sechaba to retain a 15% interest in the Project and gain a seat on Kibo s Board Associated infrastructure include interconnection facilities, transmission line, water supply infrastructure, coal conveyer belt, coal & ash handling systems, crushers, emission abatement systems and distributed control system. 50 years surface rights for the mine and power station 21

22 OVERVIEW MCPP MABESEKWA MABESEKWA COAL MINE MINERAL COAL RESOURCE SITUATED IN THE PRINCIPAL COAL BEARING AREA OF BOTSWANA Coal standards exceed requirements for the power plant 300Mt subset of the current 777,33 Mt coal Mineral Resource Coal is at average depth of between 50m and 60m, starting at a depth of 18m with an average coal seam thickness of 5m Based on the coal delivery rate of 1.6 Mtpa for a 300MW power plant delivers a Life of Mine over 40 years and 30 years with 3.2Mtpa for 600MW power plant Located approximately 40km west of village of Tonata and approximately 50km southwest of Francistown, Botswana s second largest city. SAMREC CATEGORY Mabesekwa Coal Deposit Infrastructure IN SITU Megatons No Discount % Geological Discount IS SITU Megatons with discount Measured % Indicated % Inferred % Grand Total Mabesekwa Resource Statement (SAMREC 4 June, 2015) 22

23 OVERVIEW MCPP MABESEKWA MABESEKWA POWER PLANT SIMILARITIES WITH THE MCPP THAT LL ENABLE AN EXPEDIATED DEVELOPMENT PROGRAMME Project is being designed for a maximum capacity of 600 MW (4x150MW), dependant on grid integration and evacuation constraints Located approximately 6 km from the mine mouth, with coal transported by conveyor belt 40km water pipeline will be constructed from Shashe Dam to provide raw water for process and sanitary use Backup water provided by nearby well fields Plant will have a design life of 40 years, working as a baseload generator Will be constructed as either Pulverized Fuel (PF) Fired Boiler or Circulating Fluidised Bed Boiler Limestone sourced from South Africa and transported by rail and trucks 23

24 OVERVIEW MCPP MABESEKWA OTHER SUMMARY OTHER ASSETS HANETI HIGHLY PROSPECTIVE NICKEL BELT SPANNING OVER 80KILOMETERS 100% ownership of 29 mineral rights covering 4,300 sq. km Key target is 80km belt with grades of up to 13% of Nickel and 2.33 g/t of Platinum and Palladium Newly identified potential for Lithium Pegmate and associated elements of Niobium and Tantalum Recent geophysical interpretation work has identified significant extensions to Nickel Suplhade prospective target rock formations Black Tourmaline and Lithium Mica in Pegmtite Dyke 57% STAKE IN A SPIN-OFF COMPANY OF KIBO S ADVANCED NEAR-TERM GOLD PROJECTS IN LAKE VICTORIA 1.38g/t (515,000oz.) at Imweru Mineral Resource: ᱼ ᱼ ᱼ ᱼ 1.5m raised to advance development Plans to initiate production in months Definitive Mining Feasibility Study Commenced Initial production target of 50,000oz. And Preliminary Economic Assessment established the potential to sustain the gold mine over 7-10 years 1.1g/t (239,870oz.) at Lubando Mineral Resource that s located 70 km east of Imweru and is in early stage of development Visible Gold in Quartz in Laterite at Imweru KATORO 24

25 OVERVIEW MCPP MABESEKWA CORPORATE SOCIAL RESPONSIBILITY Kibo is committed to revitalising the local and regional economy By harnessing the local labour market in every stage of the project Kibo will provide jobs and ongoing training for its employees Every employee of Kibo from a board member to cleaning personnel holds stock in the Company Health and Safety of its employees are a priority to the Company Kibo has taken every step to minimise the environmental impact of the MCPP project Be reducing the reliance on charcoal, with MCPP, Kibo will help against deforestation and desertification Local schoolchildren in the old classrooms Kibo funded new schoolroom under construction Classroom construction finished in March

26 OVERVIEW MCPP MABESEKWA INVESTMENT CASE Exposure to two high impact energy projects nearing production Excellent working relationship with the government and local authorities Continuous demonstrated results Targets being hit Top FDI destinations Attractive economics Growing demand for power in Africa Strong strategy To exploit market opportunities To exploit market to & create team opportunities delivery maximum to create value maximum for shareholders value for and build shareholders mid- tier gold and build producer mi- tier gold producer 26

27 OVERVIEW MCPP MABESEKWA KiboMining Louis Coetzee CEO BROKER SVS SECURITIES LIMITED Ben Tadd / Tom Curran +44 (0) KIBO MINING PLC Gray Office Park Galway Retail Park Headford Road, Galway City Ireland www/kibomining.com info@kibomining.com NOMAD RFC AMBRIAN LIMITED +61 (8) Andreas Lianos Finance Director FINANCIAL PR/IR ST BRIDES PARTNERS Isabel de Salis / Priit Piip +44 (0)