RED ROCK RESOURCES Plc Investor Presentation

Transcription

1 RED ROCK RESOURCES Plc Investor Presentation London Stock Exchange AIM Listed: RRR Investor Presentation Q2:2018

2 RESOURCE DRIVEN GROWTH MOVING FORWARD Investor Presentation Q2:2018 2

3 Natural Resource Developer Strong Foundations Manganese Production Ferrosilicon Production Colombian Gold Royalty Significant Cash Reserves 1.05p 5.3m Investment Upside Gold JORC Resource - Kenya Gold Exploration - Ivory Coast Oil Exploration - Benin Future Opportunities Investment Upside PRIMED FOR PERFORMANCE Investor Presentation Q2:2018 3

4 Steelmin Ltd. Bosnia Four Points Colombia Ivory Coast / Benin Migori Gold Pgt Kenya Jupiter Mines South Africa DIVERSE ASSET PORTFOLIO Investor Presentation Q2:2018 4

5 Q2 Operations Update Jupiter Mines IPO April 2018 (ASX:JMS) Buybacks Feb 17 and Dec 17, Feb 18 JMS Stake Value to RRR ~A$7m RRR Sold 20% = A$1.8m Steelmin Ltd Initial Production - May 18 RRR Holds 22% equity stake Targeting annualized 7m EBITDA European Ferrosilicon Prices at Multiyear Highs Colombia Disposal Royalty - $3M total Value Payable to RRR Quarterly Q1 Est ~$30k+ rising to $80k/qtr Loan Note - $750k due Q2 Kenya Gold Project Restoration of Gold Licenses JV with Significant Partner Planning for Production DRC Copper/Cobalt Completion of DD Process Confirm Cu/Co Grade/tonnage Deal Execution Agreements to Partner on Production MULTIPLE HIGH IMPACT EVENTS Investor Presentation Q2:2018 5

6 Jupiter RRR: 0.95% Mines Manganese Producer South Africa Iron Ore Assets- Western Australia Investor Presentation Q2:2018 6

7 Jupiter Mines Leading Global Manganese Producer 3rd Largest Relisted on ASX April 2018 as A$800m Company One of Largest and Shallowest Resources Worldwide 37.1% Mm + Top Cut of 31.58% Experienced Management Team Simple Drill/Blast + Load/Haul Mining 8km Private Rail Siding Loop (5mtpa) Exports from 4 Ports JMS Stake in Tshipi Mine 49.9% Ntsimibintle Mining 37.1% OM Holdings 13% Producing: over 3Mtpa Capacity of 3.6Mtpa Production 60 Years Life of Mine 418Mt Resource Reliable On Site Power Generation Located in Kalahari Basin South Africa Well Established Offtake Channels JMS Alone Supports RRR Market Cap Investor Presentation Q2:2018 7

8 RRR Jupiter Investment 18.5M Shares 4.2M Valuation 0.95% Stake $655k to RRR Feb 17 $300k to RRR Dec 17 $501k to RRR Mar 18 $1,800k to IPO Apr 18 Beyond IPO Examine Australian Iron Projects Other M&A Opportunities Q3 18 Buyback Investor Presentation Q2:2018

9 FY2018 Results - Tshipi 3.34MT ZAR 7,333m (US$612m) ZAR 3,103m (US$259m) ZAR 1,400m (US$116m) Production Revenues EBITDA Cash BLUE CHIP MINING ASSET Investor Presentation Q2:2018 9

10 Steelmin RRR: 22% Ferrosilicon Production Bosnia Investor Presentation Q2:

11 Steelmin Ltd. Refurbishing Ferrosilicon Smelter Complex Built in Yugoslavia in Early 1970s Two Electric Arc Furnaces on Site Initial Furnace Expected to be Online May 2018 Total Capacity of 48,700t of Ferrosilicon + 9,700t of Microsilica 22% RRR Equity Stake in Steelmin Access to Cheap Hydro Power Targeting 36m Revenue + 7m EBITDA Low Cost Brownfield Investment Located in Jajce, Bosnia Herzegovina Strategic Position Close to Euro Customers Investor Presentation Q2:

12 Steelmin Background Plant Built in 1897 by Wacker Chemie - DE Owned by Electrobosna Closed after War Steelmin Ltd to Refurbish - 12m Spent to Date Mgmt + Engineers + Admin in Place FeSi ~$1,500+ Used to Improve Steel Products Contains 75% Silicon + 25% Iron Adds Electrical Conductivity Improves Corrosion Resistance Demand Growing 4.7% CAGR Microsilica 200/t Silicon Metal $2600+/t Primary by-product of FeSi Production Used to Make High Performance Concrete Utilized in Refractories and Ceramics Alternate Main Product to FeSi 98-99% Si Higher Purity Used in Aluminum/Silicones/Solar Investor Presentation Q2:

13 Furnace V Furnace IV 48MW Elkem (Norwegian) Furnace o Built 1973 o Initial Focus for Refurb o Largest Furnace o Est. 28,560t FeSi/pa 30MW Tagliferri (Italian) Furnace o Built 1971 o Has produced both silicon and FeSi o Est. 20,160t FeSi/pa Investor Presentation Q2:

14 Four Points Mining RRR: Ongoing Disposal Gold Producer Antioquia Colombia Investor Presentation Q2:

15 Four Points Mining High Grade Gold mine and Mill at El Limon, Colombia Operated by Para Resources (CVE:PBR) Ore Sourced from Mine + Regional Suppliers Completed Upgrade Program Mill to 225tpd+ ~7,400 oz expected in 2018 RRR with $3m Royalty $1m Secured Promissory Note Balance of $750k due May 18 Avg Grade: 8 g/t Break Even: $450/oz Royalty Estimates to RRR 2018: $200, : $500, : $500,000 INVESTMENT PAYING OUT Investor Presentation Q2:

16 Copper-Cobalt Tailings RRR: DD Phase Due Diligence in DRC Investor Presentation Q2:

17 Tailings Opportunity Agmt to Develop Cobalt and Copper Tailings Located by Glencore near Kolwezi, DRC Tailings Dams From Historic Copper Mines Drilling Began Q Expected DD Completion Q Option to go to 52.5% 26.25% Stake ELEPHANT HUNTING Investor Presentation Q2:

18 Investor Presentation Q2:

19 Attractive Cu/Co Targets EVs + Home/Grid storage - increased cobalt demand Battery grade cobalt sulfate required Cobalt fundamental in battery strength and lifespan Constrained by-product supply single traditional source (54%-DRC) Output from pure-play deposits <2% Inability of VW to secure supply highlights limited availability Agmt to Investor Presentation Q2:

20 Investment Overview RRR:75% RRR:100% RRR:20% RRR:0.35% RRR:5.11% Mining Migori Gold Project Mining Ivory Coast Oil & Gas Shoats Creek Mining + Oil & Gas Battery Metals Regency Mines (AIM: RGM) Oil & Gas Elephant Oil Gold 1.2m Oz Gold JORC Resource Kenyan Greenstone Belt License Dispute in Progress Resolution Expected Soon Gold Early Stage Gold Exploration Underexplored with Huge Potential Birmian Greenstone Belt Oil Onshore US Exploration Interest in LM20+ Operator Seeking to Stabilize Production Levels Various Natural Resource Developer Battery Metals/Technology Metallurgical Coal Base Metals Oil Onshore Exploration Benin Underexplored West African Transform Margin License Extension SIGNIFICANT UPSIDE POTENTIAL Investor Presentation Q2:

21 Key Figures 2.5m Cash in the Bank 3 4 Sources of Cashflow Multi-Commodity Exposure Investor Presentation Q2:

22 Positioned for Outperformance Contact Details Investor Presentation Q2:

23 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 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 authorized 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 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 (including in the case of negligence, but excluding any liability for fraud). 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. 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. Investor Presentation Q2:2018