Developing the PedraBranca PGM/Polymetallic Project in Brazil. Corporate Presentation Q1 2018

Transcription

1 Developing the PedraBranca PGM/Polymetallic Project in Brazil Corporate Presentation Q Jangada Mines PLC 1

2 DISCLAIMER & FORWARD-LOOKING STATEMENTS The information contained in this document (the Presentation ) has been prepared by Jangada Mines plc (the Company ) solely for informational purposes. It is subject to material updating, completion, revision, verification and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as amended ( FSMA ). This Presentation does not constitute, and the Company is not making, an offer of transferable securities to the public within the meaning of sections 85B and 102B of FSMA. The Presentation is simply a summary of the assets of the Company but existing and prospective investors should rely only on the Admission Document (whic hcan be found on the investor page of the website) and must rely on their own examination of the legal, taxation, financial and other consequences of an investment in the Company, including the merits of investing and the risks involved. Prospective investors should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning any acquisition of shares in the Company. Certain of the information contained in this Presentation has been obtained from published sources prepared by other parties. Certain other information has been extracted from unpublished sources prepared by other parties which have been made available to the Company. The Company has not carried out an independent investigation to verify the accuracy and completeness of such third party information. No responsibility is accepted by the Company or any of its directors, officers, employees or agents for the accuracy or completeness of such information. The securities mentioned herein have not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the Securities Act ), or under any U.S. State securities laws, and may not be offered or sold in the United States of America or its territories or possessions (the United States ) unless they are registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States, or distributed, directly or indirectly, in the United States, or to any "US person" as defined in Regulation S under the Securities Act of 1933, including US resident corporations or other entities organised under the laws of the United States or any state thereof or non-u.s. branches or agencies of such corporations or entities. This Presentation is not being made available to persons in Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or any other jurisdiction in which it may be unlawful to do so and it should not be delivered or distributed, directly or indirectly, into or within any such jurisdictions. All statements of opinion and/or belief contained in this Presentation and all views expressed represent the directors own current assessment and interpretation of information available to them as at the date of this Presentation. In addition, this Presentation contains certain "forward-looking statements", including but not limited to, the statements regarding the Company s overall objectives and strategic plans, timetables and capital expenditures. Forward-looking statements express, as at the date of this Presentation, the Company s plans, estimates, forecasts, projections, opinions, expectations or beliefs as to future events, results or performance. Forward-looking statements involve a number of risks and uncertainties, many of which are beyond the Company s control, and there can be no assurance that such statements will prove to be accurate. No representation is made or assurance given that such statements or views are correct or that the objectives of the Company will be achieved. The reader is cautioned not to place reliance on these statements or views and no responsibility is accepted by the Company or any of its directors, officers, employees or agents in respect thereof. The Company does not undertake to update any forward-looking statement or other information that is contained in this Presentation. Neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the information contained in this Presentation or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of contract, commitment or recommendation on the part of the Company or the directors of the Company to proceed with any discussions or negotiations with any prospective investors. The Company reserves the right without any notice or liability to the recipient of this Presentation or its advisers to: (i) change any of the procedures, timetable or requirements or terminate negotiations at any time prior to the signing of any binding agreement with investors; (ii) provide different information or access to information to different persons; (iii) agree variations to the property, rights and liabilities comprised in the Company; and (iv) negotiate at the same time with more than one person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. This Presentation should not be considered a recommendation by the Company or any of its affiliates in relation to any prospective acquisition of shares in the Company. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any of its affiliates, any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted for any such information or opinions or for any errors or omissions. Jangada Mines PLC 2

3 DON T LOOK ELSEWHERE AIM Listed Company Developing the Pedra Branca PGM/Polymetallic Project in Brazil PGM PROJECT Defined resource of ~1 million ounces of PGM + Au with high palladium content EXTENSIVE ASSET 3 mining licences (trial application) & 43 exploration licences covering an area of 50,000 hectares with low development risk due to previous exploration work totalling +US$35 million SCOPING STUDY Confirmed potential for open pit, low capex and low opex operation with a potential IRR of 80%+ and 1.3 year payback POLYMETALLIC OPPORTUNITIES Wider work/evaluation has highlighted significant wider polymetallic opportunities particularly in chrome, copper, cobalt and nickel UNLOCKING NEW POTENTIAL Exploration focus on unlocking newly identified mineral inventory including vanadium and titanium STRONG MARKET FUNDAMENTALS For all commodities particularly technology metals EXPERIENCED MANAGEMENT Extensive, proven track record and project experience Jangada Mines PLC 3

4 WE VE DONE IT BEFORE AND WE RE DOING IT AGAIN Extensive Experience & Proven Track Record in Funding & Developing Projects in South America Brian McMaster Executive chairman Brian is a member of the Institute of Chartered Accountants with 20 years experience in corporate reconstruction and turnaround and performance improvement. This includes numerous large mining reorganisations and turnarounds, and he has been instrumental in the recapitalisation and listing of more than 15 companies on the ASX, TSX and AIM. His experience includes working in the United States, South America, Asia, and Australia. Luis Azevedo Non-Executive Director Luís is a geologist and lawyer with more than 25 years of business and mining experience in Brazil. He is an independent director of Brazil Minerals, Avanco Resources, Talon Metals and Harvest Minerals. He is the Managing Partner at FFA Legal, a legal firm he founded in Rio de Janeiro, Brazil, which is focused solely on natural resources companies. His practice is highly active in M&As for companies owning mineral assets and or operating mining enterprises in Brazil. His experience spans base metals, industrial minerals, diamonds, & precious metals. Heinrich Muller Chief Operating Officer Heinrich was the MD of the Pedra Branca PGM project for three years from 2012 on behalf of Anglo American Platinum, where he had been an employee for 10 years. Most recently, he was involved in the exploration, commissioning and profitable operation of open pit, oxide PGM mines on the Bushveld Complex in South Africa. He has extensive knowledge in the geology, mining, and processing of platinum-nickel-copper-chrome deposits. Heinrich has permanent residency status in Brazil, is fluent in Portuguese and understands the Brazilian operating environment. Luis Castro Non-Executive Director Louis is a Chartered Accountant and fellow of The Institute of Chartered Accountants in England and Wales. He has over 30 years experience in corporate finance in the City, in particular with companies in the mining and oil and gas sectors. He has advised companies on all aspects of IPO s, fund raisings, restructurings, M&A, contested bids and day to day corporate issues. Most recently he was CFO at AIM quoted Eland Oil & Gas and before then he was Managing Director at Northland Capital Partners. Nick von Schirnding Non-Executive Director Nick has over 25 years' experience in the mining sector across a number of geographies. He was CEO of Asia Resource Minerals plc, a FTSE listed mining company. Prior to this Nick was a senior executive with Anglo American plc and De Beers. Nick is a director of Arc Resources, a UK listed mining company and chairman of Fodere Group, a private company that has developed technology to extract high value minerals from ore. Jangada Mines PLC 4

5 PGMs THE MARKET IS STRONG South African Supply Pressure & Changing Demand Refined production supply 2017 End uses 2017 Russia 13% North America 7% Medical and Biomedical 3% Glass 2% Other 5% Investment 3% Zimbabwe 6% South Africa 74% Electrical 2% Petroleum 1% Chemical 7% Industrial 21% Total Mining Supply 1,485koz Automotive 43% Jewellery 33% 2018 Forecast: Falling Supply YoY Total Mining Supply Other Russia North America Zimbabwe South Africa 0 1,000 2,000 3,000 4,000 5,000 6,000 7, f 5, f 5,935 Source: World Platinum Investment Council Jangada Mines PLC 5

6 THIS IS NOT FAKE NEWS PGM supply/demand Differential is Driving the Market Mothballed existing and future platinum capacity koz 600 Mine closures Partial closures Shaft delays Pt 1 moz 465 koz 550 koz Largest annual adjustment since moz 1.5 Mine closures 400 Partial closures Shaft delays Cum. Pt (rhs) Source: World Platinum Investment Council 0.0 Jangada Mines PLC 6

7 Copper Nickel Cobalt MORE GOOD STUFF Positive Market Dynamics for Polymetallic Portfolio 688% Copper 50% 200% Estimated Increase in Demand over Next Decade Mining Technology, 2017 Generation and grid infrastructure Kt Cu Grid storage Kt Cu Ni Co Charging infrastructure Kt Cu Non-ICE vehicles Kt Cu Ni Co As early as 2020, when EVs would still make up only 2% of new vehicle sales, related metal demand already becomes significant, requiring an additional 390,000 tonnes of copper, 85,000 tonnes of nickel and 24,000 tonnes of cobalt per year Glencore, 2017 Jangada Mines PLC 7 Total Kt Cu Ni Co CRU Energy Furtures, 2017

8 JUST THE FACTS Unique PGM Project with Polymetallic Upside in Supportive Jurisdiction Country Brazil - established, transparent, & reliable mining code favourable to mining operations & investment Location 280km SW from the port city of Fortaleza on a paved highway Project Area 50,000 hectares, including 3 mining licences covering 52% of the current resource & 43 exploration licences with environmental permitting Target Areas 11 targets with confirmed PGM, chrome, nickel, cobalt & copper mineralisation focus on Curiu, Esbarro, Cedro & Trapia Mineralisation Multi commodity basket with mineralisation at surface with grades including 803kt & 2.84g/t PGM Infrastructure Excellent infrastructure & accessible power & water Support Viewed as a regional economic driver for State Government Jangada Mines PLC 8

9 IF YOU VE GOT IT, FLAUNT IT Primed For Rapid Development Extensive Understanding +US$35 million spent by previous owners >30,000 metres drilled to date at a drill spacing of metres Metallurgical & geophysical studies completed Simple Operation Estimated low cost, open pit production given surface deposits Circa 52% of current JORC resource contained within current mining licenses Uncomplicated metallurgy Stable Location Mining friendly jurisdiction Politically stable country with reliable and secure licencing and labour laws Ready access to infrastructure and port facilities Strong Demand Fundamentals Global platinum production decreasing while demand increasing Trending palladium rich deposit Continual growth forecast for technology metals Jangada Mines PLC 9

10 CHECK OUT THIS SCOPING STUDY Robust, Shallow, Open Pit Operation with a Low Capex/Low Opex, Yielding Attractive Returns & Short Payback Period Potential IRR of 80% & payback period of 1.3 years Low capex of US$38.4m for mine construction, processing plant and associated infrastructure Potential 13-year life-of-mine at 1.1Mt per year with low 1.07 strip ratio producing 35,000 ounces PGM+Au p.a Multi-commodity ore suite, mined at an average grade of 1.22 g/t PGM+Au + by-products yields NPV of US$158.4m at 10% discount rate 14.3Mt of run-of-mine ore to sustain shallow, open-pit mine with conventional sulphide flotation plant producing a saleable multi-element concentrate Jangada Mines PLC 10

11 IT S A KIND OF MAGIC One of the best undeveloped PGM projects in the Western Hemisphere. Platinum-nickel-chromium deposits: geology, exploration and reserve base. * PRECIOUS TECHNOLOGY OTHER PGM+Au: ~1 million ounces of including 2.5g/t palladium equivalent Rhodium: Potentially consistent mineralisation Nickel: 109Mlbs grading 0.214% Copper: 23Mlbs grading 0.045% Chrome: 600kt grading 5% Cobalt: 6.4Mlbs grading 0.013% Vanadium: Grades in outcrop samples from five locations average 0.33% Titanium: 5.0% Iron: 53% *Published by Elsevier in new (2017) scientific book by Emeritus Scientist S.K. Haldar Jangada Mines PLC 11

12 PFS UNDERWAY Conversion of Resources to Reserves Upgrading of Mine Design and Production Schedule Flotation Optimisation PGM, Chrome and Gold Magnetic Separation Chrome Spiral Separation Flowsheet Design Updated Economic Assessment Completed Underway Jangada Mines PLC 12

13 Jul 2017 Sept 2017 Nov 2017 Jan 2018 WE VE BEEN BUSY A Value Disconnect? June 17 Listed on AIM July 17 Confirmed JORC compliant nickel & copper resource August 17 Confirmed JORC compliant cobalt and chrome resources October 17 Moved 77% of resources into measured & indicated categories October 17 Finalised scoping study - potential for low capex/opex operation with IRR of 80%+ October 17 Identified highgrade vanadiumtitanium-iron mineralisation December 17 Received local government approval for pilot production Mkt. Cap 9.9m Mkt. Cap Jangada Mines PLC 13

14 NOW THIS IS A PROJECT HIGHLY PROSPECTIVE EXTENSIVE LICENCES TRENDING METALS ROBUST ECONOMICS INFRASTRUCTURE BLUE-SKY STRONG TEAM VALUE TRIGGERS ~1 million ounces PGM+Au resource covers 52% of the licence areas Highly prospective & opportunity to expand JORC resource significantly Technology metal credits greatly improve economic potential Scoping Study NPV $158m IRR 80%+, payback 1.3 yrs, low capex/opex Established providing easy access High-grade vanadium-titanium-iron mineralisation identified Mining, in-country & capital markets experience PFS completion Q Jangada Mines PLC 14

15 APPENDIX - CURRENT RESOURCE INVENTORY 30,000 Metres of Diamond Core Drilling, Geophysical Surveys & Metallurgical Tests Jangada Mines PLC 15

16 CONTACTS JANGADA MINES PLC Registered Address 5 Fleet Place London EC4M 7RD Postal Address Level 2, 34 Dover Street London W1S 4NG info@jangadamines.co.uk ST BRIDES PARTNERS LTD 3 St Michael s Alley London EC3V 9DS +44 (0) Jangada Mines PLC 15